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Lisnave Reports Upbeat Quarter; Discusses Future Plans

Lisnave, Portugal is a large shiprepair organization with three yards in Portugal. From the facilities at the heart of the Port of Lisbon at Lisnave's North Yard in Rocha and South Yard in Margueira, to the extensive capabilities of the Mitrena Yard, Setubal, Lisnave reports its full range of repair and ancillary services are being used more widely by operators as more and more ships call the Port of Lisbon.

Increased Vessel Repairs One of the most interesting repairs of the quarter was carried out on the 22,697-dwt motor tanker Esso Parentis, owned by Esso Francaise. The vessel arrived in Lisbon with its hull in a "hog" condition, which causes the vessel to arch up or "hog" amidships.

Before the vessel was allowed to enter the drydock for a damage assessment, it was cleaned and gasfreed. After drydocking, it was decided with the owner's representatives and its classification society, Bureau Veritas, that a midship section — 29.5 ft. (9 m) in length and involving 200 tons of steel — would have to be renewed. While this section was prefabricated in the shop, the vessel was cut into two parts and separated to allow the preparation of the aft and forward sections for the introduction of the new midsection.

The vessel arrived in the river Tagus on March 4, 1994 and was drydocked after cleaning on March 17, 1994. Repairs were carried out in 44 days. The vessel sailed to the owner's and the classification society's satisfaction on April 30, 1994.

Lisnave yards have recently repaired tankers such as thei?. Hal Dean, owned by Chevron; Star Wilmington, owned by Texaco; and dozens more. Lisnave has also been active in repairing passenger vessels, and has been host to vessels owned by, among others, Nippon Yusen Kaisha, Holland America Line, Royal Caribbean Cruise Line, and Diamond Cruises. Project Management System The Esso Parentis repair was carried out under Lisnave's new Project Management System, an extensive program designed to enhance Lisnave's competitive advantages even beyond the Total Quality Management system it implemented in 1991. The goal: working closely with the customer for lower costs and better delivery times. The Project Management Team comprises a project manager, whose job it is to keep to or improve upon the quoted delivery date, minimize costs and keep the owner informed; assistants for day and night shifts; trade managers for specialized areas; foremen; and work preparers. In the new system, the client enjoys complete control and feedback on costs.

Another aspect of the Project Management System examines each unit of work performed for ways to improve efficiency, including the implementation of new methods and technologies, providing for steadily increasing efficiency over the long term.

Restructuring A more literal restructuring is also taking place at Lisnave: an agreement between the company, the Portuguese government and a group of banks will result in an extensive restructuring of the company's operations. The main repair yard in Lisbon, or the Margueira yard, will be deactivated and its activities transferred to a yard of equivalent capacity in Setubal.

The state, which now owns the land upon which the Margueira yard is built, will compensate Lisnave with approximately $255 million, funds which will be applied to the financial restructuring of Lisnave. The Mitrena yard in Setubal will be bought by Lisnave, and the facilities there will be enhanced with one or two more 872.7 x 151 ft. (266 x 46 m) drydocks and equipment for the repair of offshore equipment. Workshops, repair jetties and lifting equipment will be upgraded. On the financial end, Lisnave capital will be increased by $117.6 million, the banks participating in the restructuring will take $42 million in shares to be sold to the public, and the shareholders will take $36 million (which subscription is granted by the Mello Group). By the time the Margueira yard is fully closed down in early 1996, the Mitrena yard in Setubal is expected to be operational with one new dock and the ability to repair 180 vessels a year — to effect a smooth transition with no interruption in service.

For more information on Lisnave Circle 77 on Reader Service Card

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