Why vessel conversion is a change for the better

With newbuilds in short supply, hard to finance and cost prohibitive, converting existing high-spec offshore vessels can be a cost-effective solution to meeting charterer’s near-term demands for flexible, more energy-efficient tonnage.

“When it comes to sustainability, we believe in reusing what we have,” said John Goes, offshore chartering lead for SPM Shipping, a two-year-old Dubai-based owner that controls a fleet of tankers, bulkers and offshore support vessels. Modifying an existing asset yields several advantages for the charterer, noted Mr Goes. Modifying an existing vessel is less expensive than a newbuild, with offers faster implementation; it creates a fit-for-purpose vessel and is more sustainable. SPM Shipping believes it can reduce shipping’s environmental impact by promoting what it sees as an eco-friendly solution.

“Newbuild assets take a long time”

In his presentation, Maximizing vessel utilization through modifications at the Offshore Support Journal Conference, Asia, in Singapore in September, Mr Goes detailed several case studies on how an existing OSV could be modified or converted to enhance its operational flexibility and utility for a charter. Among the examples were installing tanks to transport methanol, adding an active heave compensation crane, oil recovery equipment, helipads, accommodation modules or walk-to-work gangway systems.