Dredger Deal Signals Dutch Yard Re-Opening

The company has signed a letter of intent (LOI) with the dredging, infrastructure and offshore group Boskalis for the construction of a 31,000m³-capacity trailing suction hopper dredger. Translation of the LOI into a firm contract would allow Royal IHC to re-open its Krimpen aan den IJssel shipyard, to effect delivery of the envisaged newbuild in mid-2026.

The design features two trailing suction pipes, one on each side of the hull, a high throughput shore pumping capacity, a diesel-electric propulsion installation, and preparation for future adaptation to methanol fuel.

Planning for such a newbuild was initiated several years ago, and the design and engineering were agreed shortly before Royal IHC’s handover to Boskalis in 2020 of the 152m cutter suction dredger Krios.

The new project signals a turning point in the company’s fortunes. Royal IHC had been rescued from bankruptcy in April 2020 by a consortium made up of banks, the Dutch Government, and a group of commercial firms, including Dutch investment specialist HAL. Ensuing bridging loans and credit guarantees amounted to hundreds of millions of euros. The subsequent major restructuring plan, in November 2020, brought job cuts and divestments of engineering subsidiaries and other interests.

With a shrinking orderbook, a second restructuring was implemented last autumn, resulting in a further reduction in the payroll and the temporary closure of the Krimpen aan den IJssel yard, one of its two main shipyards, until such time as suitable new contracts could be secured.

This was followed in March 2023 by a refinancing plan, including the sale to HAL of subsidiary IQIP Holding, a market leader in foundations and installations in the offshore wind market. The proceeds from IQIP’s disposal have enabled Royal IHC to reduce its debt, so strengthening the balance sheet and paving the way to taking on the larger, complex shipbuilding orders seen as crucial to its survival.

Royal IHC and Boskalis have an extensive history of collaboration, resulting in many deliveries of dredgers and equipment. Continuity in business dealings was expressed in last year’s contract for an advanced modular cable lay spread (MCLS). This will be used by Boskalis for installation of inter-array power cables and the associated cable protection system in offshore wind farms.

Dutch dredge design and technology, specialised equipment and systems permeate dredger newbuild schemes around the world, but the drift of actual vessel construction overseas has taken its toll on the Dutch shipbuilding industry. The planned 31,000m³-capacity newbuild would denote a return to the Dutch heartland of wholesale production in the large vessel category. Located upstream of Rotterdam, the presently dormant Krimpen a/d IJssel facility centres on one of Europe’s largest covered slipways, measuring 264m x 38m.

The consideration of methanol to ensure a future-proof design brings to bear a great deal of investigation into the fuel by Royal IHC over recent years. Its various studies have included participation in the Green Maritime Methanol (GMM) research programme, conducted by 30 partners between January 2019 and December 2020 and partially funded by the Netherlands Ministry of Economic Affairs.