AD Ports, ASRY to boost green ship recycling in Bahrain

The UAE-based terminal operator AD Ports Group and the Arab Shipbuilding & Repair Yard Company (ASRY) have entered into three Heads of Terms (HoTs) agreements to collaborate on delivering marine services and developing ‘key’ maritime and port initiatives in Bahrain.

As disclosed, the first HoT is directly related to a joint venture (JV), which is to manage and “enhance” drydock sites and green ship recycling efforts by leveraging the capabilities and facilities at each party via their established businesses in the sector in the Gulf Cooperation Council (GCC) and other regions. The GCC is an organization of six Arab states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

According to AD Ports Group, the second HoT was inked with JM Baxi, an India-based Hong Kong Convention-certified business specializing in marine services, ports, logistics and technology. The initiative will reportedly focus on building green ship recycling facilities in order to support a circular economy by repurposing parts of vessels and minimizing waste. In turn, this is anticipated to lead to a ‘significant’ reduction in carbon dioxide (CO2) emissions.

“We have already developed strong working ties, and this agreement opens the door to creating more value and growth across our operations. Exploring opportunities to establish green ship recycling facilities is also very important for us, ensuring that vessels are retired in a safe and environmentally responsible manner,” Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, remarked.

The final HoT signed by AD Ports Group and ASRY is said to pertain to the exploration of joint investment opportunities at ports and terminals. Through a collaborative framework of this kind, the project partners said they would seek to identify prospective areas of development.

As noted, the collaboration between the UAE-headquartered maritime industry player and ASRY follows the launch of ASRY Marine, a JV between Noatum Maritime, an arm of AD Ports Group’s Maritime & Shipping Cluster, and ASRY. The JV offers integrated marine services in Bahrain.

In addition to AD Ports Group, other maritime industry stakeholders have shaken hands with Bahrain-based companies and organizations, seeking ways to ‘bolster’ the region’s ship recycling capabilities. Denmark’s shipping major A.P. Moller – Maersk is one of them.

In July 2024, Maersk signed a Memorandum of Understanding (MoU) with the country’s Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce to evaluate and establish a ship recycling initiative.

Under the terms of the MoU, both the Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce would offer regulatory support to ASRY, which would, in turn, be responsible for equipping the yard and docks with the required solutions for the ship recycling process. As informed, Maersk’s responsibility was to act as the technical and operational advisor, providing expertise on implementing sustainable and responsible practices and standards in this sector.