WILLEMSTAD – Curaçao's ship-repair industry could become a major beneficiary of the rapidly expanding offshore energy industries in Guyana and Suriname, with a proposed investment program of more than €100 million intended to prepare the island's shipyard for growing regional demand.
The plans were discussed during an August 29 visit to the Schottegat by the Association of Dutch Caribbean Economists, which met with C.D.M. Holding and Damen Shiprepair Curaçao as part of an assessment of the economic opportunities surrounding Curaçao's harbor.
Augustin Diaz, director of C.D.M. Holding, told the visiting economists that substantial investments have already been made in recent years to address deferred maintenance and safeguard the operational continuity of the shipyard.
The next step could be considerably larger.
An investment program known as CAPEX 2.0, valued at more than €100 million, is under consideration to further develop and expand the shipyard. The investment is expected to create additional economic activity not only at the yard itself but throughout the Schottegat area.
One of the strongest arguments for expanding the facilities is the transformation taking place elsewhere in the region.
Oil and gas development in Guyana and Suriname is generating a growing fleet of offshore support vessels. Curaçao's location and existing ship-repair infrastructure could put the island in a strong position to compete for maintenance and repair work on those vessels.
There could also be renewed opportunities involving Venezuela. According to the Economenclub's report, Venezuelan vessels could increasingly be serviced in Curaçao as economic restrictions ease.
Damen Shiprepair Curaçao CEO Surldric Rojer confirmed that the company sees favorable regional market developments. The Netherlands-based Damen Group also sees significant potential in Curaçao, according to the report.
Implementation of CAPEX 2.0 is considered important if the shipyard is to increase its repair and maintenance activities and capture a larger share of the emerging regional market.
Damen is simultaneously developing another line of business through Damen H&V Carib known as "afloat jobs."
Instead of requiring vessels to enter the shipyard's docks, repair teams can perform certain work while ships remain afloat. Such repairs could be carried out in open water or at locations such as Caracasbaai.
The strategy could expand Curaçao's potential market by allowing the company to provide services beyond the physical limits of the existing shipyard.
The Association of Dutch Caribbean Economists believes these developments demonstrate how maritime services could become a larger component of Curaçao's economy, particularly if the island succeeds in connecting its existing industrial infrastructure with the expanding energy and shipping sectors in the wider Caribbean and South America.