MUSCAT -- Oman Dry-dock Company (ODC), which is developing a world-class ship repair yard within the Duqm Port and Dry-Dock complex on the Wusta coast, will provide direct employment to around 1,500 people when it commences operations in 2010. The workforce is projected to rise to 3,000 employees by the year 2018 if a proposed shipbuilding yard is added to the complex.
And taken together with the thousands of indirect jobs created by a plethora of support services and auxiliary businesses, the dry-dock project promises to be a huge employment generator, according to a senior executive of ODC. "Oman Dry-dock Com-pany is developing what will emerge as the second-largest ship repair yard in the world, second only to Dubai Dry-dock in terms of capacity," said Kwang Soo-Lee, Manager Planning and Contracts, ODC. "With the support of its strategic partner South Korea's Daewoo Shipbuilding and Marine Engineering Co Ltd (DSME), ODC will make a major contribution to the Oman Government's goal of diversifying the economy, creating jobs for Omani nationals, and opening up development opportunities in the Wusta region," he added in remarks to the Observer.
DSME, one of the world's top shipbuilders, is overseeing the development of the ship repair yard on behalf of state-owned ODC. Last September, DSME signed an agreement with the government to operate and manage (O&M) the facility for an initial period of 10 years, which is extendable by a similar period. Total investment in the ship repair yard is estimated at RO 250 million.
On May 30, authorities announced the tender for the actual construction of the dry dock. The selected contractor will create the infrastructure for two dry docks, while a floating dock will be added later in the development of the project. A significant part of the contract involves the construction of around 2.8 kilometres of quay wall, which will incorporate the dry docks. Also as part of the contract, some 1.1 million sq metres of paved area will be developed on reclaimed land adjoining the quay.
This paved area will house workshops, dorms for workers, crane facilities and other support infrastructure. DSME is playing a pivotal role in the development of the dry-dock, says Kwang. "Barring the construction of the facility, Daewoo's role covers all aspects of the project, from A-Z. Besides carrying out the feasibility study, Daewoo is also handling the basic engineering design, preparation of the business plan and tender documents, evaluation of tenders, as well as the overall supervision of the project. Operation and management will also be overseen by DSME."
Significantly, the ship repair yard will be large enough to accommodate the largest vessels in operation today. "ODC will have a capacity to repair over 200 ships per year, including vessels as large as Ultra-Large Crude Carriers (ULCCs). We are confident of achieving these numbers because of Duqm's proximity to major international and region shipping lanes," Kwang stated.
DSME hopes to capitalise on its international reputation as the world's leading specialised shipbuilder to attract business to Duqm. "As the second largest shipbuilder in the world, DSME is a major force in the global shipping industry. ODC can not only count on DSME's expertise and global reach in attracting customers, but also on Oman's growing relations with some of the biggest shipping lines in the world, including Maersk, Mitsui-OSK Line (MOL), MSC, and so on."
A potential source of business is the huge tanker traffic that carries the Gulf region's crude oil to markets around the world. Empty tankers requiring repairs or maintenance will find it highly practical to halt at Duqm en route into the Gulf, says Kwang. Importantly, technology transfer and Omanisation are also key objectives of DSME's partnership with ODC.
"We will establish training facilities in Oman, as well as partner with local training institutions to prepare young Omanis for various technical jobs that will become available at the ship repair yard. Specialised instructors from DSME's facilities in South Korea will also be enlisted to support this effort," he said. Construction of the yard is scheduled to begin in the fourth quarter of this year. It will be operational by April 2010.
By Conrad Prabhu
© Oman Daily Observer 2007
