AD Ports Group and ASRY Ink Key Agreements to Boost Marine Services and Green Ship Recycling in Bahrain
Bahrain, June 18, 2025 — In a move poised to reshape the Gulf’s maritime services and green ship recycling landscape, UAE-based AD Ports Group and Bahrain’s Arab Shipbuilding & Repair Yard Company (ASRY) have signed three significant Heads of Terms (HoTs) agreements. The agreements, revealed on Tuesday, underscore a strategic collaboration aimed at driving sustainability, operational efficiency, and economic growth within Bahrain’s maritime sector and across the wider Gulf Cooperation Council (GCC) region.
The GCC, a regional alliance comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, has long been central to global maritime trade. With a combined vision to innovate and lead in sustainable maritime practices, the AD Ports Group-ASRY partnership is set to strengthen the region’s position as a maritime powerhouse.
Joint Venture for Drydock Management and Green Ship Recycling
The first and perhaps most transformative of the HoTs relates to the creation of a joint venture (JV) between AD Ports Group and ASRY. This JV will focus on enhancing the operational capacity of drydock facilities and spearheading green ship recycling initiatives. According to a joint statement, the venture will leverage the existing infrastructure, technical expertise, and regional presence of both entities to deliver safe and environmentally responsible ship dismantling and recycling solutions.
The partnership envisions a drydock management model that integrates advanced maritime engineering practices with sustainability. Through this JV, the parties aim to create a regional benchmark for ship lifecycle management, particularly in end-of-life vessel dismantling, thereby addressing growing global concerns over the environmental impact of shipbreaking activities.
“With the establishment of this joint venture, we are setting a new course for sustainable growth in the region,” said Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group. “The synergies between our entities position us well to lead the way in responsible ship recycling and enhanced marine services.”
A Greener Future with JM Baxi Collaboration
The second HoT introduces a new layer to the collaborative framework, as AD Ports Group teams up with India-based JM Baxi, a company certified under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). The collaboration seeks to develop green ship recycling facilities not only in Bahrain but potentially across other strategic locations in the Gulf.
This initiative places a strong emphasis on fostering a circular economy. By repurposing materials from decommissioned ships—such as steel, machinery, and other reusable components—the partners aim to drastically reduce landfill waste and carbon dioxide (CO₂) emissions. Green ship recycling is increasingly viewed as a vital part of the maritime industry’s climate strategy, and the AD Ports-JM Baxi partnership aligns with this global momentum.
“Exploring opportunities to establish green ship recycling facilities is very important for us,” Al Shamisi said. “We want to ensure that vessels are retired in a safe and environmentally responsible manner. This initiative reflects our commitment to climate-conscious operations while adding value to our business and partners.”
JM Baxi’s involvement is crucial given its longstanding reputation for innovation in marine logistics, port infrastructure, and HKC-compliant ship recycling practices in India, a country already regarded as a global hub for ship dismantling.
Exploring Investment Opportunities in Ports and Terminals
The third HoT signed between AD Ports Group and ASRY outlines a broad-based framework to identify and pursue joint investment opportunities in ports and terminals. Although details remain under wraps, the scope of the agreement includes feasibility studies, infrastructure development, and joint operations in Bahrain and beyond.
Both companies expressed interest in enhancing terminal infrastructure, expanding port services, and creating new revenue streams via strategic investments. Given AD Ports Group’s substantial portfolio of port operations across the Middle East, Africa, and Central Asia, its expansion into Bahrain’s ports ecosystem is seen as a natural next step.
ASRY, Bahrain’s long-standing maritime pillar, is expected to play a pivotal role in ensuring that local capabilities are scaled up in alignment with international standards and future demand.
“This new phase of cooperation with AD Ports Group strengthens ASRY’s mission to deliver world-class services,” said Mazin Matar, Managing Director of ASRY. “Together, we aim to elevate Bahrain’s maritime sector and deliver long-term value through sustainable and strategic investments.”
A Strategic Continuum: ASRY Marine and Past Partnerships
The trio of HoTs builds on an existing joint venture known as ASRY Marine, which was established between Noatum Maritime—a business within AD Ports Group’s Maritime & Shipping Cluster—and ASRY. This JV was launched to offer integrated marine services within Bahrain, including tug and tow operations, pilotage, and crew transfers.
The synergy between Noatum Maritime and ASRY served as a foundational stepping stone for broader collaboration, and the new agreements reflect a deeper and more diversified alliance.
Bahrain’s Expanding Role in Ship Recycling
In parallel to the AD Ports-ASRY developments, other global maritime leaders are also turning their attention to Bahrain, particularly in the area of sustainable ship recycling. A noteworthy example is Danish shipping giant A.P. Moller – Maersk, which signed a Memorandum of Understanding (MoU) in July 2024 with Bahrain’s Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce.
This MoU aims to evaluate and establish Bahrain as a regional hub for sustainable ship recycling. Under the agreement, Bahrain’s ministries pledged regulatory support, while ASRY committed to upgrading its facilities to meet ship recycling demands. Maersk, on its part, was tasked with acting as a technical and operational advisor, helping to embed global best practices and compliance with international conventions such as the HKC.
The initiative is part of Maersk’s broader decarbonization and sustainability strategy, which includes responsible ship decommissioning and repurposing in line with its net-zero goals.
“We see Bahrain as a promising location for responsible ship recycling, and through our partnership with ASRY and the Bahraini government, we aim to create a model that others in the region can replicate,” a Maersk spokesperson said at the time.
The Road Ahead: Sustainability, Growth, and Regional Leadership
As climate concerns and regulatory scrutiny mount globally, the maritime industry is undergoing a paradigm shift—from operating as an engine of global trade to becoming a steward of environmental responsibility. The latest collaborations between AD Ports Group, ASRY, and JM Baxi reflect this transition and mark a critical step forward in embedding sustainability into the core of maritime operations in the Gulf.
With the added momentum from Maersk’s partnership and Bahrain’s governmental support, the Kingdom appears set to emerge as a key player in regional green ship recycling efforts. Moreover, the AD Ports Group-ASRY initiatives will likely serve as a blueprint for similar collaborations in other GCC nations.
As global shipowners increasingly seek HKC-compliant recycling options, and as the IMO tightens its oversight on end-of-life vessel treatment, Bahrain’s proactive maritime policy and infrastructure development could unlock new economic, environmental, and strategic benefits for the region.
