KKR-backed Optic Marine Group (OMS) is set to enhance its fleet with the addition of two new next-generation vessels, further boosting its capabilities in subsea cable installation and maintenance. This expansion follows the company’s previously announced contract with Royal IHC for two new cable-laying ships.
What’s Behind OMS Group’s Latest Fleet Expansion?
OMS Group recently announced via LinkedIn that it is opening a Request for Proposal (RFP) for the construction of two additional advanced vessels. While the company has not provided specifics on the timeline or financial details of the project, this marks a significant step in OMS’s plan to bolster its fleet for an ever-expanding global demand for digital connectivity and data traffic.
These two vessels will join OMS’s earlier agreement with Royal IHC, under which the company will receive two cable-laying ships. The four vessels combined are expected to significantly enhance OMS’s operational capabilities, positioning the company to better address the rising demand for subsea cables and faster data transmission worldwide.
Why Are Cable-Laying Ships Essential to Global Connectivity?
Subsea cable ships are crucial for the installation and maintenance of underwater cables, which carry a majority of the world’s data traffic. With over 400 subsea cables in operation globally, the demand for new vessels has been growing. Currently, there are only about 60 cable ships worldwide, many of which are aging, with several over 30 years old. The limited supply of these specialized vessels can cause delays in projects and disrupt essential cable repairs.
The need for modern cable-laying ships has never been more urgent. OMS Group’s latest fleet expansion will contribute to filling this gap, supporting the continued growth of digital infrastructure and ensuring reliable subsea connectivity.
OMS Group’s Ongoing Investment in Subsea Infrastructure
OMS Group’s fleet expansion comes on the heels of several strategic investments aimed at supporting the subsea cable industry. In 2023, the company launched the CS Cable Vigilance, a new vessel designed to enhance its subsea capabilities. Additionally, OMS has secured $300 million in loans through a syndicated facilities agreement with a consortium of financial institutions, which will further fuel its expansion.
Moreover, in September 2024, OMS announced plans to invest $300 million in subsea and cable infrastructure to keep pace with the accelerating global demand for data. This continued investment underscores OMS Group’s commitment to strengthening its position in the subsea cable market.
What Are the Current Capabilities of OMS Group?
Founded in 1983 and headquartered in Selangor, Malaysia, OMS Group has become a key player in the subsea cable installation and maintenance industry. The company currently operates a fleet of six cable-laying and repair vessels, as well as two barges and three tug boats. With the addition of the two new vessels, OMS will be even better equipped to handle the growing demands of global digital infrastructure.
In 2024, KKR invested $400 million into OMS, fueling its expansion plans and enhancing its ability to compete in a rapidly evolving market. As the demand for subsea cables continues to rise, OMS Group’s robust fleet and ongoing investments ensure that it remains at the forefront of the industry.
Frequently Asked Questions (FAQ)
1. Why are cable-laying ships in short supply?
Cable-laying ships are specialized vessels, and there are only around 60 in operation worldwide. Many of these ships are over 30 years old, and the rapid increase in global subsea cable projects has intensified the demand for modern vessels, leading to delays in some projects.
2. How does OMS Group contribute to subsea cable infrastructure?
OMS Group provides essential services in the installation and maintenance of subsea cables. Their fleet of cable-laying vessels helps support the global digital infrastructure, which is vital for modern communication and data traffic.
3. What was the role of KKR in OMS Group’s expansion?
In 2024, KKR made a significant investment of $400 million into OMS Group, which bolstered the company’s expansion efforts and enabled further growth in its subsea cable fleet and infrastructure.
4. How do OMS Group’s investments impact global digital connectivity?
OMS Group’s investments in new vessels and subsea infrastructure are vital for the expansion of global data networks, which are essential for meeting the increasing demand for high-speed internet, cloud services, and other digital services.
5. What are the key features of OMS Group’s new vessels?
While specific details on the new vessels have not been disclosed, the focus is on next-generation ships designed to enhance cable-laying and repair capabilities. These vessels will support OMS Group’s efforts to meet the growing demand for subsea cable projects worldwide.
