Malta Drydocks News

Changes in the international political and economic climate will add new urgency to the theme of the Shiprepair & Conversion 2001 conference in London in November — gaining the edge in a competitive global industry. Marking the 10th anniversary of the event, the conference takes place alongside the industry's leading exhibition in the Grand Hall, Olympia, on November 28-29. A new pick-and-mix booking format offers cut-price entry to one or more of the four morning and afternoon sessions — giving delegates, exhibitors and visitors more scope to take part in both the conference and trade show, which will feature a record 360 exhibitors.

By James R. International Maritime Associates, Inc. Floating production has evolved to a mature technology that opens for development oil and gas reservoirs that would be otherwise impossible or uneconomic to tap. The technology enables production far beyond the depth constraints of fixed platforms, generally considered to be 1,400 ft. (426.7 m), and provides a flexible solution for developing short-lived fields with marginal reserves and fields in remote locations where installation of a fixed facility would be difficult. Floating production systems vary greatly in appearance - from ship-shape FPSO vessels to multi hull production semis to cylindrical shaped production spars.

Malta's government reportedly launched a wide-ranging reform of its loss-making shipyards to make the industry financially viable. This reform apparently means the winding up of state-owned Malta Drydocks Corporation and Malta Shipbuilding and the transfer of their assets and liabilities to the government. A new company, called Malta Shipyards, is to be set up to absorb some of the workers under new working conditions. Dockyard facilities would be rented to the new company by the government.

Malta Drydocks has issued an international call for applicants for a new chief executive after dismissing the British incumbent a year before his contract expires. Malta Drydocks said it had terminated the contract of Chief Executive Barry Johnson following disappointing financial results for the first five months of this year. "Malta Drydocks will be intensifying its efforts to improve operations because productivity is still low when compared to competitors," the dockyard said. Dockyard officials would not give details on the yard's financial position other than to say that although turnover had increased, revenue from the core ship repair business had dropped by some $1.3 million this year. State assistance to Malta Drydocks last year totaled $87 million in subsidies and debt servicing.

Thousands of striking workers demonstrated in Malta's capital on Friday, Reuters reported, against tax increases and major shipyards were hit by the industrial action. Malta Drydocks, Malta Shipbuilding and Malta Freeport were among companies hit by stoppages after the General Workers' Union called on all workers to go on strike. Union general secretary Tony Zarb told the opposition's Super One radio that the union was very satisfied with the turnout. During the demonstration, attended by thousands in Valletta's main street, Zarb presented a petition signed by 78,600 people to Prime Minister Eddie Fenech Adami calling on the government to ease financial burdens on workers.

Malta Drydocks was awarded a contract by Brovig-RDS of the U.K. to convert the former Shell tanker Northia to a floating storage and offloading unit. The contract is the first of its type for the Malta yard in nearly 20 years. Malta Drydocks said a group of international experts from Poseidon Maritime of Aberdeen, Scotland and Petromaritime Consulting of Monaco had assisted it in the preparation of the winning bid and will be working with the yard on the execution of the contract. The 133,500-dwt Northia was built in 1971 for North Sea Operations. The conversion work will be handled between February and April next year, after which the vessel will be based in the Isis field off the coast of Tunisia.

Malta's powerful General Workers' Union was scheduled to meet on Monday, January 15, 2001, on whether a contract between Malta Drydocks and the U.S. Navy violates a constitutional ban on allowing superpowers' ships access to Maltese shipyards. Union president James Pearsall refused to be drawn into the controversy over the contract when questioned by the Maltese media, and said Monday's meeting may not necessarily end with the union taking a stand. The Navy announced the $6 million contract for Malta Drydocks to work on the U.S. Sixth Fleet's flagship La Salle late on Friday. The ship is due in Malta in April. The left-leaning GWU has strong support among Malta Drydocks workers.

Hebridean Island Cruises has pulled out of a $7 million conversion contract with Malta Drydocks and awarded it to a British yard instead, the Malta company said on Tuesday. Scotland-based Hebridean had already issued a letter of intent in favour of Malta Drydocks for the conversion of a modern ship into an old style classic cruise liner, the Malta firm said. Malta Drydocks did not reveal the name of the U.K. yard or the name of the cruise liner. The Maltese yard recently won a $6 million contract to convert the tanker Northia, owned by Brovig RDS of the UK, into a floating production storage and off loading unit and another $6 million contract for maintenance work on the U.S. sixth fleet flagship La Salle. – (Reuters)

Some Maltese dockworkers refuse to carry out a planned $8 million refit of the U.S. Sixth Fleet flagship La Salle because this would violate Malta's neutrality. Prime Minister Eddie Fenech Adami went on television to warn that his government would stop all financial aid to loss-making Malta Drydocks if not enough workers were available to carry out the work. He denied that the contract would violate the island's neutrality. A section of the General Workers' Union which represents the bulk of workers at Malta Drydocks said its delegates had decided not to work on the ship. Fenech Adami said that as a result of that decision the management board of Malta Drydocks had submitted its resignation but the government had refused to accept this.

Officials of the British Safety Council are due to carry out a safety audit of Malta Drydocks in March, Reuters reported. The council had carried out an audit of the yard last year and awarded it a three star rating out of five. A Malta Drydocks management official told the press it was hoped a better result would now be achieved. The loss-making Maltese yard is currently enjoying an upswing of work. The tanker Northia, owned by Brovig RDS of Aberdeen, is currently being converted into a floating production storage and offloading facility in the first project of its kind. Drydocks officials told the press that the $8 million contract was being carried out on time and the yard had been praised for its workmanship. The ship is being renamed Ikdam. The U.S.

Malta's biggest trade union directed its members to carry out a refit of a U.S. warship, after some workers complained that the project compromised Malta's neutrality and refused to work on it. "Work on the USS La Salle may be carried out," General Workers' Union (GWU) general secretary Tony Zarb said. The $8 million refit of the U.S. Sixth Fleet flagship was thrown into doubt when the GWU's shipyards section, which represents the bulk of workers at Malta Drydocks, said its delegates had decided not to work on the ship. The dockyards' management submitted its resignation, but Prime Minister Eddie Fenech Adami refused to accept this and warned that his government would stop all financial aid to the loss-making drydocks if not enough workers were available to carry out the work.

Malta Drydocks (MDD) and Malta Shipbuilding (MSCL) have joined forces with the Swiss-based Safety Company, Du Pont Safety Resources, to implement a major safety improvement program involving all levels of employees throughout each business. The extensive and in depth program will last three years and has the objective of substantially reducing the number of unsafe acts that ultimately lead to accidents. Continuous work is ongoing to improve safety performance at both MDD and MSCL. Improvements in recent years have taken place with MDD being awarded the British Safety Council 4 Star rating in 2001. This new initiative will enable more progress to be made and takes the safety agenda to the forefront in both companies.

Northern Ireland’s Mivan has won contracts to outfit the interior of two cruiseships. The contracts, totalling around £3m, will be undertaken in the Bahamas and in Malta. Mivan will help refit Royal Caribbean International’s 73,192 grt Sovereign of the Seas at Grand Bahamas Shipyard (GBS) in Freeport, and carry out the conversion of Cunard’s 24,492 grt Caronia, to be renamed Saga Ruby for her new owners Saga Shipping at Malta Drydocks. Mivan Chief Executive, Dr. Ivan McCabrey, “This has been an excellent year for Mivan in the cruiseship sector with around £6m of new contracts secured to date. The Sovereign of the Seas contract will be completed by early December 2004 over a three-week period.

Malta Drydocks last week signed an agreement with the United States Navy enabling it to bid for ship repair work on U.S. vessels but the opposition Labor Party said the deal violated the island's neutrality. Economic Services Minister Josef Bonnici said the agreement did not violate the constitution since the dockyard would only bid for work on auxiliary vessels, such as tankers. Repairs would not be carried out in military emergencies. The agreement, he said, was part of the government's efforts to find more work for loss-making Malta Drydocks and would serve as an advertisement for the dockyard to win more commercial work from American shipowners.

Malta’s government must feel (rightfully so) that an $87 million bailout give it management entitlement of beleaguered Malta Drydocks. The government is reorganizing the management of Malta Drydocks in an attempt to revitalize a scant (estimated) one percent of ship repair work in the Mediterranean. Apart from restructuring management, the new business plan would introduce new work practices to increase productivity and beef up marketing, he said. The plan calls for the yard to work closely with Malta Shipbuilding, and share the same chairman.

Malta appointed the head of Malta Shipbuilding as chairman of Malta Drydocks, pointing to closer cooperation between the two loss-making firms. The Department of Information said former banker John Cassar White, chairman of Malta Shipbuilding for almost two years, would also head Malta Drydocks from February. He will take over from Noel Zarb Adami.

Malta last Wednesday appointed the head of Malta Shipbuilding as chairman of Malta Drydocks, pointing to closer cooperation between the two loss-making firms. The Department of Information said former banker John Cassar White, chairman of Malta Shipbuilding for almost two years, would also head Malta Drydocks from February. He will take over from Noel Zarb Adami. The new Malta Drydocks board will include former central bank governor Emanuel Ellul, former Labor minister Joe Micallef Stafrace and Anglu Fenech, former general secretary of the General Workers Union. Workers will elect one director to the board, instead of four previously.

Malta Drydocks has won a contract to refit the 34,250-ton Orient Lines luxury cruise liner Crown Odyssey. The ship is to be docked between April 25 and May 4 for what has been described as a "substantial" refit, including pipe works and machinery and an overhaul of propellers, shafts and stabilizers. The Crown Odyssey will be the first cruise liner at Malta Drydocks this year and the first time Orient Lines is sending a vessel to Malta Drydocks, dockyard officials said. The contract was won despite stiff competition from ship repairers in Portugal and Italy. Over the past few years Malta Drydocks carried out work on Cunard's Royal Viking Sun…