As Lloyd’s Register (LR) marks its 50th anniversary in the UAE, the organization is poised to seize emerging opportunities in Africa and the Middle East. Richard de Vries, recently appointed Vice President of Business Development for these regions, shared insights into LR’s strategic direction, focusing on the offshore sector’s growth and Africa’s untapped potential in an internal interview.
Celebrating 50 years in the UAE
This year marks a significant milestone for Lloyd’s Register as it celebrates 50 years since opening its first office in Dubai. Over the decades, LR has established itself as a pivotal advisor in the region, contributing to landmark projects such as the Das Island LNG terminal and Port Rashid in the 1970s. Reflecting on this journey, de Vries, now the Vice President of Business Development for the Middle East, Africa, and India, underscores LR’s enduring commitment to supporting regional development.
“LR has moved to a more centralized model, focused on global service and regional expertise,” de Vries explains. “We now have a network of senior representatives in each major region. Alongside my commercial responsibilities, I’m also responsible for looking after the people on the ground here.”
Advancing maritime services through digital innovation
The role of classification societies like LR has evolved significantly over the past two decades, transitioning from a primary focus on class and survey to a broader consultancy role. Today, LR is deeply involved in advising on techno-economic modeling, aiding clients in navigating the energy and digital transitions.
“Our role as a trusted adviser to the industry is growing,” says de Vries. “As shipping undergoes unprecedented changes, we’re helping our customers achieve a competitive edge through our consultancy services. The importance of class societies has never been greater.”
A key component of LR’s modern strategy is digitalization. In 2022, LR acquired OneOcean, a suite of digital tools that enhances voyage and environmental planning. Utilizing data from over 500 environmental zones, 170 nations, and numerous ports, OneOcean empowers operators to ensure regulatory compliance and environmental protection.
“The Lloyd’s Register OneOcean Platform is used by 22,000 vessels and maintained by a dedicated in-house team,” notes de Vries. “Digitalization is playing a huge part in emissions reduction, and LR OneOcean is pivotal in supporting the industry.”
Emerging opportunities in the Middle East
The Middle East remains a crucial region for LR, with significant growth observed in the gas and offshore sectors. Qatar, once the sole regional player in LNG carrier orders, is now joined by other nations expanding their LNG capacities. However, challenges such as the limited shipbuilding slots in South Korea have shifted the focus towards Chinese yards for new orders.
De Vries points out the robust activity in the offshore sector: “There’s a lot going on in the offshore sector, which is booming. The recent uplift in oil and gas prices is creating opportunities that surpass our highest expectations.”
Saudi Arabia’s ambitious maritime goals, aiming for a 40 million TEU throughput by 2030, highlight the region’s strategic importance. The kingdom is significantly investing in port infrastructure, with developments underway or completed at Jazan, Jeddah, and Dammam.
Africa: A continent of potential
Sub-Saharan Africa presents a burgeoning landscape for LR, driven by significant energy needs and untapped natural resources. Beyond its established presence in South Africa and Nigeria, LR has recently opened an office in Mozambique and is exploring expansions into Tanzania, Namibia, and Kenya.
“We are investing in sub-Saharan Africa because we see huge potential there,” asserts de Vries. “We were the first class society to set up in Mozambique, and we’re considering further expansions. The region’s energy needs, particularly for LNG, are immense.”
Despite political instability in northern Mozambique, major projects like Eni SpA’s Coral South FLNG are progressing, with the first LNG shipment dispatched in November 2022. De Vries remains optimistic about the future: “The projects are starting up again. We see large companies returning, and there’s definitely something happening. Coral South, an LR class asset, is a testament to the region’s potential.”
A promising future
As de Vries embarks on his second tenure in Dubai, he is enthusiastic about the prospects in the Middle East and Africa. “I’m really happy to be here. I love the Middle East and believe there’s a lot of potential, especially for LR,” he concludes.
With a strategic focus on digital innovation and regional expertise, LR is well-positioned to navigate the evolving landscape of maritime and offshore industries, ensuring sustainable growth and enhanced service delivery across Africa and the Middle East.
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