Saudi Arabia well-positioned in maritime transition - ABS

As the maritime and offshore industries embark on a difficult transition, Saudi Arabia’s focus on developing sustainability, technology, and skills in the maritime, offshore, and logistics sectors position it well for the future, Burton told the audience in his keynote address at the Saudi Maritime & Logistics Congress 2024.

Setting the scene, Burton said 905 newbuild vessels had been ordered in 2024 to date, an increase of 1% from last year, comprising 47% tankers, 32% bulk carriers, and 21% container ships. An average drop of 18% on-year in steel prices across the major shipbuilding nations of China, Korea, and Japan, was good news for owners ordering ships, he said, and order backlogs were healthy.

For the offshore sector, offshore drilling utilisation of 90% was up 1% on-year, with semi-submersibles at 88%, jack-ups at 90%, and drillships at 95%. The Middle East is a particular hotspot in the market, he told the room of industry leaders. 

“As we all know, The Kingdom of Saudi Arabia has a strong maritime history with many centuries of successful trade and exploration. The Kingdom is well recognised and respected as an important player in the global maritime network.

“Vision 2030 builds upon that robust legacy, setting out the roadmap to be an even stronger global leader. By combining a strong focus on sustainability, technology, and skills, it positions the Kingdom for further success.”

The offshore sector’s development will be underpinned by continued growth in hydrocarbon demand in the next few years, said Burton, while the Kingdom advances its decarbonisation strategy.

Saudi Arabia’s decarbonisation plan is interesting for its approach of not only reducing carbon emissions, but treating CO2 as a resource with value rather than a pure pollutant, he said. Faced with the global challenge of removing 10bn tonnes of CO2 from the atmosphere each year, five times more than current levels, the Kingdom’s recently-announced Global Carbon Capture and Utilization Challenge, is an example of the nation’s forward-leaning focus, he added.

In the longer term, regional methane reserves, caron capture development, and investment in solar and wind energy create an ideal environment for produce blue hydrogen production.

As new technologies roll out, workforces will need to adapt and be trained to use the digital tools and techniques that drive efficiency and enable improved performance, said Burton. 

“Ultimately, it will be the development and dissemination of digital skills among the current and future workforce that will define success in the energy transition,” he said.

 “We are at an exciting time in the industry. Faced by pressures to decarbonise while presented with significant positive opportunities.  This region with the strong vision for the future is well positioned to capitalize on these opportunities.

"This needs a coordinated approach, involving industry, regulators, and training providers, to ensure we are all adequately prepared for the changes ahead.  This will be key to achieving the improvements in operational efficiency and emissions reductions,” said Burton.