Adaptability and collaboration underpins NMDC’s Middle East strategy
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NMDC Dredging & Marine CEO Niels de Bruijn. Credit: NMDC
In a region of oil-producing nations, changes to global oil prices have a more nuanced impact on the Middle East market. While higher oil prices translate into higher bunker and operational costs as they do elsewhere in the maritime industry, they also generate increased income for many Gulf Cooperation Council (GCC) countries, “necessitating a proactive approach to resource management and operational efficiency,” said National Marine Dredging Company of Abu Dhabi’s (NMDC) Dredging & Marine CEO Niels de Bruijn.
“Higher oil prices can lead to greater investments in critical infrastructure, including port development and coastal protection projects. As a responsible and agile player in the industry, we seize these opportunities by closely monitoring market trends and actively seeking collaboration with government entities and key stakeholders to secure and execute projects that align with regional development goals.”
Through the ups and downs, NMDC takes an approach of adaptability and resilience to maintain relationships and contribute to the development and sustainability of the Middle East's maritime infrastructure, he added.
Infrastructure investments
The Middle East dredging market has fluctuated over the past decade, but has seen substantial growth in recent years, said de Bruijn. Client demands and expectations have risen over the same period. Still, by meeting those expectations NMDC has contributed to the development of critical infrastructure, including ports and artificial islands, and the enhancement of coastal areas.
De Bruijn picked out NMDC’s reclamation of 11 artificial islands in the Hail & Ghasha area as part of the Khalifa Port extension project as an activity with particularly profound impacts on the local economy and environment.
TSHD Arzana in action. Credit: NMDC
“Economically, the expansion of Khalifa Port and the creation of these artificial islands played a vital role in enhancing maritime trade and logistics in the region,” he said. The extended port facilities have allowed for increased shipping traffic, cargo handling capacity and improved connectivity to global markets, explained De Bruijn. “This, in turn, had a positive ripple effect on the local economy by generating employment opportunities, boosting trade, and attracting investments in the area,” he added.
NMDC incorporated sustainable practices to the port extension project to minimise ecological impacts. De Bruijn noted “careful planning and mitigation measures” were implemented to protect the local marine environment during the dredging and reclamation process. “Furthermore, the project created new habitats for marine life around the artificial islands, contributing to the biodiversity of the region's coastal ecosystems,” he said.
For wider regional and global impacts, de Bruijn pointed to NMDC’s involvement in the Suez Canal duplication project as an example of a high-impact dredging project that ensures sustainable development in the region.
Environmental compliance
Adherence to local environmental regulations is an intrinsic part of NMDC’s approach to environmental stewardship, said de Bruijn, and that starts with a close collaboration with the Environmental Agency - Abu Dhabi (EAD). Active engagement with EAD and other regulators helps to minimise the impact of NMDC’s projects on the natural environment.
Each project is governed by a Comprehensive Environmental Management Plan (CEMP) to address the findings of a project-specific Environmental Impact Assessment (EIA). The CEMP includes a set of stringent internal and external controls aimed at confirming compliance with regulations.
“By aligning our practices with these standards and working closely with environmental agencies, we aim to not only meet but exceed environmental regulations in the Middle East, thus minimising our ecological footprint and ensuring responsible and sustainable operations,” said de Bruijn.
Initiatives such as NMDC’s active involvement in the installation of artificial reefs across Abu Dhabi are aimed at enhancing biodiversity in the region's marine ecosystems, promoting the growth of marine life, and mitigating the environmental impact of NMDC’s operations.
Collaborations
NMDC’s regional partnerships go beyond the regulatory and are a pillar of the group’s strategy. The "Let's Grow Together" supplier engagement initiative launched in 2023, in partnership with the Abu Dhabi Chamber of Commerce and Industry, targets economic growth for local suppliers by showcasing opportunities available within NMDC’s projects, setting out the criteria suppliers must meet, and the group’s supply chain needs.
“Local partnerships offer us invaluable insights into the regional market and regulatory landscape, while international alliances bring cutting-edge technology and innovation to our operations,” said De Bruijn. He explained that the goal of these alliances is to also foster sustainable development practices to align with the region’s growing focus on environmental responsibility. “Furthermore, these partnerships enhance our capacity and scale, enabling us to undertake and excel in larger and more complex projects,” said de Bruijn.
Market prospects
Looking ahead, de Bruijn’s outlook for the Middle East dredging market is a positive one. He sees a regional commitment to expanding and enhancing maritime infrastructure to support economic growth and national diversification objectives to reduce dependence on income derived from fossil fuels.
“I see a healthy market ahead, with several large-scale projects on the horizon”, he said. These projects are poised to include the development of ports, the creation of artificial islands, the widening of waterways, and the construction of coastal protection structures, among others. De Bruijn notes the myriad benefits these major projects will deliver: “These initiatives are essential for facilitating trade, promoting tourism, and bolstering the overall economic and environmental sustainability of the region.”
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