Following these assessments, a detailed port facility security plan was submitted to government authorities and was passed after through review.

Certification is likely to increase repairs at ASRY of US flagged ships in the region because the Bahrain Government has entered into an agreement with the US Government designating Bahrain as a 'home port' for American ships.

ASRY has been repairing US Navy and MSC ships for a number of years, especially during the Kuwait and Iraq wars. On the commercial side, ASRY has also been carrying out emergency repairs to US flagged ships. However, under this new agreement, US flagged commercial vessels can now repair at ASRY without paying the 50% levy to the US Government for repairing overseas. Bahrain is the only major Gulf ship repairing country to enter into this agreement with US authorities.

Meanwhile, ASRY has racked up an impressive 30% success rate for the first half of 2004, repairing 68 of the 224 vessels for which specifications have been received. This represents one of ASRY's busiest periods for a number of years and is 36% up on the same period in 2003.

Dock occupancy rates have hit 98% as everything from tugs to the 309,344 dwt VLCC Christina have been repaired.

Seven dredgers have already received attention this year, reflecting the massive regional land reclamation works underway off Dubai.

During the first half of this year ASRY has invested over $2 million on improving its facilities. In cooperation with blasting and painting contractor, Nam Premator, ASRY has opened a new $1.4 million blasting chamber which establishes the yard as one of the premier blasting and painting facilities in the world.

MJ Information No: 19725