Tug orders increase as sustainable technology options grab market share

Damen Shipyards has seen tug orders and newbuild deliveries accelerate in 2024 as owners and port authorities modernise their fleets in preparation for handling larger ships, especially those transporting containers.

The Dutch shipbuilding group has also seen a rise in orders for tugboats that reduce emissions through greater efficiency, abatement technology, onboard batteries and alternative fuels. These vessels sport Damen’s E3 label, which stands for environmentally friendly, efficient in operation and economically viable.

“We are seeing how, in an increasing proportion of our newbuilds as well as refits, sustainability is an important factor,” says Damen chief executive Arnout Damen. “That is a good development. By 2030, we want half the solutions we sell to have our E3 label. The most striking change in this area was the introduction of a wide range of sustainable products and solutions, such as the all-electric Multi Cat workboat.” 

Damen has also built all-electric battery tugboats, with Sparky in operation in New Zealand, Bu Tinah in the United Arab Emirates (UAE) for AD Ports Group and another on its way to Belgium to begin operations for Port of Antwerp-Bruges.

“This will make Antwerp-Bruges the first European port with an all-electric tug with 70 tonnes of bollard pull in its fleet,” says Mr Damen.

These 25-m reverse stern drive (RSD) tugs are built in Damen Song Cam Shipyard in Vietnam to Damen’s RSD-E Tug 2513 design with a beam of 13 m, a draught of around 6 m and a top speed of 12 knots.

Outside ports, there is also demand for newbuild workboats and tugboats to support offshore renewable and hydrocarbon projects. “We are seeing this segment generating strong demand for other workboats such as our Multi Cats and Shoalbusters,” says Mr Damen. 

“This market is expected to continue generating significant amounts of work for our repair yards as a result of conversions, upgrades and mobilisation projects.”

There has also been an increase in vessels ordered ready to run on methanol fuel with dual-fuel engines and other altered designs for this fuel, which has a higher toxicity and a lower flashpoint than diesel.

“A gradual shift to low- or zero-emissions tugs has started,” says Mr Damen. “This relatively stable market is becoming one of the sustainability front runners. We are well positioned with the introduction and stock building of electrical-powered tugs, and we have started the development of the first methanol tug. I therefore see ample opportunities to further expand our position.”

Boluda Towage is set to be one of the first to operate a methanol-ready tugboat, while CBM has ordered a fleet of tugs ready to burn hydrogen fuel from Damen, with the contracts signed in May 2024 during the 27th International Tug & Salvage Convention in the UAE.

Damen reported its orderbook increased to €11.3Bn (US$12.4Bn) by the end of 2023, up from €8.8Bn in December 2022. Its revenues were €3.1Bn in 2023, up from €2.5Bn in 2022, while its net profits increased from €14.6M in 2022 to €43.2M in 2023. 

Damen operates 35 shipyards and 20 other companies in 20 countries, supported by a worldwide sales and service network, and delivers around 100 vessels per year – with a third of these tugboats constructed in Vietnam and China.

Its most recent orders include six azimuth stern drive (ASD) tugboats for Western Coast Port Services to operate in the port in Jeddah, Saudi Arabia, and four ASD tugs for the Ministry of Transport Angola to support ships in Namibe port.

This year, Damen has delivered tugs to European owners such as Boa Offshore, Boluda Towage, Cory Environmental, Ems Offshore, Fairplay Towage, Muller Dordrecht, Multraship Towage & Salvage and Remolques Nosa Terra, and to the Port of Marlborough, New Zealand, Depasa Marine in Nigeria and Mtwara Port in Tanzania.