Chapter 1

Introduction

Since the start of the 21st century, supply chain risks have increased due to natural

disasters, terrorism, and economic crises caused by labor strikes and economic sanctions, for

example; the sanctions imposed by other countries on Russia and the Russia-Ukraine war. All of

these have pointed to the need of having good supply chain risk management and establishing

contingency plans to mitigate unprecedented supply cuts (Ghadge, Dani, & Kalawsky, 2012).

The supply chain risks of the dredging and land reclamation industry are not different and thus

have been affected equally as any other industry.

Supply chain risks factors such as terrorism, natural disasters, and economic crisis due to

political or environmental factors have increased the need for researchers, practitioners, and

suppliers have engaged in research on related supply chain risks. The SCR is described as "the

probability and effect of unprecedented macro or micro-level occurrences adversely affecting

any element of the supply chain, resulting in operational, tactical, or strategic level failures or

anomalies." Because the most prevalent cause of risk is the uncertainty of probable outcomes

induced by incomplete knowledge or unanticipated occurrences, supply chain risk research is

intrinsically tied to uncertainty. Reducing supply chain vulnerability and the effect of disruptions

while increasing robustness and resilience are all benefits of addressing risk and uncertainty (Ho

et al., 2015).

Dredging is described as the excavation process of removing sediments from the ocean

floor. Excavation of soil and rocks is required for channel and harbor deepening and land

reclamation. This is a crucial task that must be completed to maintain the rivers passable for

ships and boats. Dredges can be used to dredge for new construction, either mechanically or
hydraulically (Baryannis et al., 2019). Dredging is used to dig trenches for pipelines, flood risk

management, beach replenishment, fisheries improvement, the building of dykes, jetties, port

areas, and channel deepening. On the other hand, excavated materials used to rebuild or develop

new land in the sea are known as land reclamation. Because of the strong demand for land in

many emerging nations, land reclamation has played an essential part in urban growth.

The Dredging and Land Reclamation industry has one of the most sophisticated supply chain

networks due to its reliance on critical components such as chip manufacturing. Specific mixed

metal alloys not readily available used as parts of dredgers, heavy reliance on fuel, and other

such commodities and components have had a significant impact on supply chain governance

and methodology in recent years (Fan & Stevenson, 2018). The epidemic, the crisis in Ukraine,

and shipping delays have disrupted the industry's supply chain, resulting in substantial

downtimes and a considerable reduction in industrial output.

The danger of supply disruptions has prompted businesses to recognize the necessity for

an organized procedure for controlling supply shortfall risks, resulting in the paradigm SCRM.

Since 2004, the possibility of financial and other losses from frequent disruptions has piqued

scholarly interest in SCRM. There is quite a considerable number of literature regarding supply

chain risks. However, there is no concrete literature review regarding risk mitigation in the

dredging and land reclamation industry supply chain. Therefore, it is challenging to establish

ways that can be used to mitigate the risks involved in the supply chain. Very little relevant

literature supports the supply chain issues in the dredging and land reclamation industry. The

rationale of this thesis is to identify supply issues affecting the dredging and land reclamation

industry. Specifically, the research aims to best understand the UAE dredging and land

reclamation business and determine the feasibility of future research (Carse & Lewis, 2020).
Figure 1.1 Annual number of publications about SCRM in the Web of Science database.

This research project aims to provide a complete description and conceptual framework for

supply chain risk management (SCRM), encompassing risk evaluation, analysis, management,

and surveillance; to evaluate past theory applications, and to recommend future research areas in

the dredging and land reclamation industry. The dissertation answers the research questions on

the impact of dredging and land reclamation industry as well as how can the risks involved in the

supply chain of the industry can be mitigated. To thoroughly answer the questions, it was

prudent to establish research objectives that included the following:

 To identify the risks involved in the supply chain in the dredging and land reclamation

industry

 To review the literature regarding the risks involved in the supply chain

 To establish proper mitigation strategies for the risks identified by building a diverse and

dependable supplier portfolio

  To establish proactive methodology or measures that will guide pre-emptive future risks

analysis and ensure pre-evaluated and corrective measures are included in the

procurement plan

This dissertation is an exploratory qualitative study. The study's goal is to gain a more

profound knowledge of the UAE dredging and land reclamation business and determine the

feasibility of future research (Carse & Lewis, 2020). The literature evaluation starts with the

macro-environmental PESTEL framework and goes into great detail about the political and legal

issues. When it comes to the change in the building industry and the governance of the UAE's

ports, these considerations were taken into account. Finally, opinions and recommendations on

best practices for global corporations and marine contractors entering the UAE dredging and

land reclamation market are provided (Sandirasegaran & Manap, 2016).

The study investigates and analyzes the essential elements that directly impact dredger

production and output, as identified by current research and examined through the design of a

questionnaire survey done with UAE active dredging firms and worldwide supply chain

intermediates. Building a diverse and dependable supplier portfolio has been discovered to be

one of the most critical factors in influencing a positive impact as risk mitigation techniques,

followed by shifting from a reactive buying approach to a more strategic and proactive

methodology where future risks are pre-evaluated and corrective measures are baked into

procurement criteria (Kilubi, 2016). The study emphasizes the value of strategic sourcing

strategies and risk mitigation skills in offering industry competitive advantages.

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