Hidden Exposures Can Sink a Business
Operating on both land and water, ship repairers and marine equipment installers tackle a variety of tasks from general maintenance and repair, to upgrading electrical systems, to installing state-of-the-art navigational systems. Along with these tasks comes a wide array of maritime risk exposures, both large and small, for which the business owner needs to be adequately protected. The tasks of an electrician or welder are challenging enough on their own, but try to do this work on a vessel at sea or in a shipyard, and the technician will find that the hazard level rises dramatically – from making sure that all facets of the systems work together as they should, to the increased fire risk hot welding presents to the safety of the vessel.
Cammell Laird Is Flying High
British ship repairer Cammell Laird Holdings Plc said on Thursday it had its strongest ever order book and reported healthy results.
Aberdeen Up and Running
Since being taken-over in July by A&P Group, the drydock facility in Aberdeen has enjoyed a busy Summer period with a number of vessels undergoing repairs. The shipyard, which has been renamed River Dee Ship Repairers, has extensive workshops and craneage and is an ideal drydocking location for vessels trading in and around the UK East Coast and the North Sea. Vessels drydocked most recently include P&O North Sea Ferries 6,350 grt passenger/car ferry St. Sunniva, which arrived on 5th July for a two-day emergency docking and the 2,042 grt offshore supply vessel Smit Lloyd Fortune from Stirling Shipmanagement, which also arrived for a short emergency docking.
Viktor Lenac Gets $25M Contract
Croatian ship repairer Viktor Lenac won contracts worth $25 million to refit two foreign ships by the end of this year. One ship is owned by Baltimore-based Caldwell Cable Ventures and the other by British company Fisher and Sons. Both will be made over into specialized vessels for laying optical cables. The shipyard is currently negotiating another similar project, it said without giving any details. Lenac plans a major expansion worth $30 million this year in a bid to attract more profitable repair jobs.
Keppel Hitachi Zosen Garners $161 Million Contract
Singapore-based ship repairer Keppel Hitachi Zosen Ltd said on Monday it won a contract worth about $161 million to build four cable-laying and repair vessels for TyCom Ltd. The company said in a statement that each of the 7,800 dwt ships would be used for installation and maintenance of the Tycom Global Network, a worldwide undersea fiber optic system being deployed by TyCom. Keppel Hitachi had already been awarded an earlier contract in April for two cable-laying and repair vessels. It said the first two vessels would be delivered in 2001 and the other four through 2002
$8.8 Million Grants SembCorp 50 Percent Of PPL
SembCorp Marine Ltd (SCM), Singapore's largest ship repairer, said on Monday it acquired a 50 percent stake in Singapore-based PPL Shipyard Pte Ltd for S$16 million ($8.8 million). The purchase would be financed through internal funds, it said in statement to the Singapore Exchange. PPL is involved in the oil rig, vessel construction and steel fabrication businesses. It recently secured a contract for the construction of two jack-up drilling rigs, worth $125 million each, from Santa Fe International Corp. "PPL has established a strong track record in rig buildings and our acquisition will give us a foothold in this business," a company official said. The acquisition was not expected to have a material impact on the earnings and net tangible assets of SCM.
Merger Creates UK's Largest Independent Ship Repairer
Burgess Marine acquire Testbank Ship Repair, making them the country's largest independent in the ship repair business. Burgess Marine, headquartered in Dover and with sites in Poole and Portsmouth’s naval base, has acquired Testbank Ship Repair, with locations at Southampton docks, Portchester, near Portsmouth, and Avonmouth, near Bristol. The deal will see 120 full-time staff work under the Burgess Marine banner from the six sites, with a combined annual turnover of £20m-plus. Nick Warren, Managing Director, Burgess Marine, said: “The various work streams of both companies very much complement each other, so it made compelling business…
Virginia Ship Repair Association - Portsmouth Path of History Dedication
The Virginia Ship Repair Association (VSRA) is preparing to celebrate its 35th Anniversary and held a dedication of a new memorial to the private ship yard industry on the Portsmouth Path of History. This National Historical Landmark is a one mile walking timeline representing the birth of the industrialized US Naval fleet. In his remarks to the more than 240 member companies of the Association, CAPT.
Northrop Grumman's Stewart Honored with Achievement Award
Women in Business achievement award from Inside Business for her demonstrated leadership, professional accomplishment and her commitment to the community. In her current position, Stewart leads thousands of employees who build and maintain some of the most complex machines in the world - nuclear-powered attack submarines. She oversees construction of the new Virginia-class submarines and planning and engineering services for the Navy's Seawolf and Los Angeles-class submarines. Stewart joined Northrop Grumman's Newport News sector in 1982 as a technical planner and has held positions of increasing responsibility in the areas of ship repair, life cycle engineering, strategic planning and computer administration and control.
Malta Drydocks Granted Crown Odyssey Refit
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…
Cammell Laird Shares Shoot Up After 9:1 Split
Shares in ship repairer Cammell Laird Holdings Plc. rose early last week after a nine-for-one share split made the stock more attractive for private investors. The shares closed on Aug. 20 at $16.32 each and opened on Aug. 23 at around $16.64 following the split. "Stocks often rise on the first day of a split as they are seen as being as more affordable by private investors," said a dealer. Cammell shares have risen 68 percent since the beginning of the year, outperforming the FT All Share index by about 51 percent.
Subsidies Top Shipyard Exec Meeting
At a recent meeting of top European shipbuilding executives it must have seemed like déjà vu times three, as Korean shipbuilding subsidies and their disastrous effect on ship pricing in general, and the European shipbuilding community specifically, topped the agenda. At the AWES and CESA annual meetings held in Nyborg, Denmark on May 16-17, shipyards and their associations from 15 European Countries discussed the situation in shipbuilding and related policies. The dispute is anything but new, with Europeans alleging subsidies and the South Koreans denying them. During its 57th General Assembly, AWES, the Association of European Shipbuilders and Shiprepairers also welcomed as new AWES member the Association of Croatian Shipbuilders and Shiprepairers.
River Dee Shiprepairers Take on Work for OSV
Drydock planning is always difficult, and shipyards have to show a great deal of flexibility to their customer’s requirements when it comes to meeting essential redelivery schedules. This is particularly relevant in River Dee Shiprepairers, Aberdeen, part of the A&P Group, where only one graving dock (112.80 m x 21.33 m) is in operation. The yard is currently carrying out an eight day general repair to Gulf Offshore’s OSV (Offshore Supply Vessel) Highland Warrior, work including removal and inspection of the vessel’s two tailshafts; HP washing of the hull and painting with International’s Interspeed. When the repair to the Highland Warrior is complete, another OSV is due to enter the drydock – North Star Shipping’s Grampian Highlander, work also to include tailshaft removal and repair.
UK Shipyard Merger
Currently the trading name for Milford Haven Port Authority, MHSR, is to be rebranded under the Mustang Marine (Wales) Ltd name and will operate from the existing two sites, the dry dock facility at Milford Dock and the slipway facility adjacent to Mustang Marine in Pembroke Dock. Mustang Marine, is a boat builder and repairer of workboats, pilot boats, passenger and similar commercial vessels up to 40m in length. Established in 1984 by the Lewis family, the company has witnessed steady growth specifically in the last 5 years.
Ship Repair & Conversion Prospects
While it is difficult to find an industry where fierce competition and price wars are not the hallmarks, it seems at times that the ship repair industry has created and patented the formula. Ship repair and conversion yards have weathered years of cut-throat battling, as a slew of new, low-cost competitors regularly make an appearance. The trend is predicted to continue indefinitely. In general, ship repair operations are weathering many of the same financial, corporate and political storms as other major industrial companies. According to Dennis Stonebridge, a shipping consultant for Drewry Shipping Consultants, the forecast revenue for 1998-2003 is likely to fall in total by an estimated 1.5 percent.
RFA Sir Percivale Redelivered
A&P Tyne has redelivered the Royal Fleet Auxiliary (RFA) fleet support vessel Sir Percivale following an extended survey and repair period (ESRP). The work was completed on August 12, and redelivered back to the RFA within time and budget. A&P Tyne secured this contract from the UK Ministry of Defence (MoD) entering into a competitive tender process with other UK shipyards, including North West Shiprepairers (Birkenhead), Garvel Shiprepairers (Clydebank) and Harland and Wolff (Belfast). The initial package of work included main engine overhaul; boiler overhaul; sewage plant overhaul; accommodation refurbishment; hull and deck preparation and painting and a major overhaul and refurbishment of the bow doors and ramping arrangements…
Kearsarge Returns to NNSY
Following a back-to-basics approach in performing ship repairs, Norfolk Naval Shipyard (NNSY) returned another amphibious-class ship to the fleet within budget and ahead of schedule, as the result of a public-private ship repair partnership in the Hampton Roads area. The shipyard completed a planned maintenance availability (PMA) for the Wasp-class, amphibious assault ship USS Kearsarge (LHD 3) ten days ahead of schedule and within fixed price budget, according to Project Superintendent Bobby Watkins. "Our back-to-basics approach paid great dividends in making this PMA an overwhelming success," Watkins said. The availability demonstrated the cooperation among Navy organizations, including Naval Surface Forces, U.S.
Report: Shipbuilders Need to Target Cruise Market
According to the Korea Times, the next five years will provide an opportunity for Korean shipbuilders to construct cruise ships with a high-profit margin, the Korea Shipbuilders' Association said. The construction of luxury cruise ships declined steadily after the September 11 terrorist attacks on the United States. But with a recent favorable upturn, the market is expected to expand especially in the large and medium-size category through 2010, with an annual growth rate of about 5 percent, the association said. This prospect of stronger demand for cruise ships will offer local shipbuilders opportunities to venture into the construction of cruise ships with less risk. South Korea is the no.1 shipbuilding country in the world with aggregate exports of $17.6 billion last year.
ASSONAVE: Shipbuilding Trending Upward
The Annual Meeting of ASSONAVE, the association of Italian shipbuilders, ship-repairers and producers of marine components and systems took place in Rome recently, chaired by its President, Vincenzo Petrone. The Association explains that this was the first meeting to take place after it expanded its membership to include major companies such as Elettronica, Oto Melara, RINA Services, Selex ES and WASS – all operating in high- technology sectors – and welcomed the Federazione del Mare, representing the Italian maritime cluster, as member of its Executive Committee.
European Shipyards’ Executives Voice Concerns
At the AWES and CESA annual meetings held in Nyborg, Denmark on May 16 and 17, shipyards and their associations from 15 European Countries discussed the situation in shipbuilding and related policies. Concern was expressed acknowledging recent developments regarding the trade dispute between the European Union and the Republic of Korea over illegal subsidies to the Korean shipbuilding industry. This dispute is going on since three years without any progress, leaving shipyards in Europe with great uncertainty over the framework they have to operate in. Neither side has taken any concrete action – Korea has not changed its unsustainable business practises and the European Union have not launched any counter measures.
Seatruck supports Mersey shiprepair
Heysham-based Seatruck Ferries has drydocked its freight ferry MV Moondance with newly formed North Western Ship Repairers, using Birkenhead's Bidston dock. The dock is not far from the Camell Lairds facility, and North Western is led by John Syvret (ex-MD of Camell Lairds. Seatruck is the first company to use North West for a full drydocking. Kevin Hobbs MD of Seatruck, says, "We are delighted that North Western has stepped in to offer the quality service that we require. Merseyside has once again proved itself as a center of excellence for ship repair and conversion. Seatruck welcomes the new facility that is well placed to provide for its needs on their Irish Sea route.
Rolls-Royce Extends Service Capability in S.Korea
Rolls-Royce has extended its service capability in South Korea by partnering with Busan-based ship repairer Sunjin Entech. The new service agreement means that Rolls-Royce can now provide customers with a bespoke one-stop service solution at the Gupyung and Youngdo yards, Sunjin’s two main repair hubs. Kim Jae Chul, Sunjin Entech, President said: “This partnership agreement with Rolls-Royce allows us to enhance the technologies and services we can offer our customers. Anthony Tan…
IHC Merwede President Appointed SEA Europe Chairman
The European Ships and Maritime Equipment Association (SEA Europe) has announced that IHC Merwede’s President, Govert Hamers, will succeed Lars Gørvell-Dahll as Chairman in October 2013. Mr. Gørvell-Dahll’s will step down midway through his tenure to become the Managing Director of the maritime arm of the Federation of Norwegian Industries. SEA Europe was jointly founded in Brussels last year by European shipbuilders, ship repairers and maritime suppliers. The Association brings together the Community of European Shipyards Associations (CESA) and the European Marine Equipment Council (EMEC).