The Superyacht R EPORT
Shipyard business report
BENETTI Benetti sits atop the superyacht output tree. The yard has produced more superyacht units – 382 to date – than any other builder and has nearperfected the semi-custom construction model. Building from 30m to over 100m, Benetti has to be included in any discussion on the breadth of the superyacht construction market.
Fabio Ermetto
Chief commercial officer The gap between large organisations and small shipyards is increasing. Our feeling is that clients are not ready to take as much risk [as they were] and are looking for security. Now the large shipyards are filling their order books and deliveries are in two, three or four years’ time, so you need security for a project that stretches over such a long period. Reputation and the brand [are key] but I would add that brand is not always equal to reputation and there are some small, boutique shipyards with a very good reputation. Some are building very good products, but there is always an additional risk that [clients] are not prepared to take. Even if they are established, some of the large companies with very few boats under construction [don’t instil confidence] in clients, who don’t feel comfortable placing an order over three or four years. It’s a higher risk for a client to place an order at a big shipyard with no order book than at a small shipyard with only two or three clients because a big shipyard has a big margin. If they don’t have any orders, it’s going to be tough. A small shipyard can decrease their general costs very quickly to meet the ups and downs of the order book. Some of the larger shipyards – and we are one of them – are increasing their number of on-spec boats, and ever-larger ones. The number of boats we have over 50 metres on spec under construction is intended to avoid what I have just referred to. Clients will not wait three or four years for delivery, and
48
ISSUE 170
they will end up at a small shipyard. We want to have custom projects, but we also want to keep clients who are impatient. On the other hand, building on spec is one of the advantages to being a large shipyard because you can afford to build one, two, three boats on spec without any problems. A small shipyard with two or three boats in the order book would never be able to do that. We are building a 50-metre and a 63-metre on spec and in the next few months we will probably decide to have another project on spec because we’re now talking about a 2019 delivery. Ideally, we would like to have one boat available of a different size on spec. We have the 50-metre for next year, the 63-metre for 2018 and we will probably launch an on-spec project for 2019. J
“We want to have custom projects, but we also want to keep clients who are impatient.” – Fabio Ermetto
LUSBEN YARD, LIVORNO
22
ISSUE 169
Regional report
Tuscany and Liguria Rory Jackson, Will Mathieson and Justin Ratcliffe travelled through Italy’s yacht-building heartland to discover a refit sector that is both burgeoning and bolstering the new-build market.
ISSUE 169
23
The Superyacht R EPORT
Regional report: Tuscany & Liguria
Viareggio TECNOPOOL
“The concentration of companies, skills and yachting mentality in this area is second to none.” – Giorgio Campini, CEO, Tecnopool
24
ISSUE 169
“Viareggio is the first place in the world for yachting,” starts Giorgio Campini, CEO of Tecnopool, a Viareggio-based refit yard. One only needs to stand in an opportune spot in Viareggio to see that there is some truth to his words. This small Tuscan city plays host to some of the world’s most prolific superyacht producers and, by proxy, to a wealth of refit expertise. Tecnopool, unlike most refit specialists, operates by utilising the benefits of scaled-back fixed infrastructure. While infrastructure exists, namely the headquarters and shipyard in Viareggio, as well as a number of other offices, Tecnopool’s business model focuses on geographical flexibility, cooperation and competitive pricing as a result of decreased overheads. Campini explains that the refit industry was, for a long time, the remit of French companies. “Refit was born in the south of France,” he says. “Why? Because all the marinas were there. The boats were in the south of France, so yacht maintenance developed in France.” However, the 1990s saw yachting infrastructure develop elsewhere in Europe. The growth of Palma de Mallorca, as well as the expansion of port and marina facilities in Spain and Italy, began to provide legitimate alternatives to the well-trodden ground of the French Riviera. “The idea that my shareholders and I had was to have a permanent base but operate elsewhere, and we decided to have this base in Viareggio,” continues Campini. “The concentration of companies, skills and yachting mentality in this area is second to none.” Within Viareggio you can find Tecnopool, Azimut Benetti, Sanlorenzo, Perini Navi, Rossinavi, Overmarine, Codecasa and a number of other yacht builders. The advantage of Viareggio, according to Campini, is that the concentration of well regarded new-
build yards guarantees a refit specialist’s ability to conduct its work using the same subcontractors and individuals who worked on the original projects. That being said, Tecnopool’s business model is not solely reliant on Viareggio, practical as it may be. Tecnopool aims to provide owners with several options in regards to where they repair their boat. Sometimes the most effective solution is to propose a different location to the owners, management teams or captains, depending on what type of work needs doing. “There is little point coming to Viareggio for some small jobs. Sometimes it is better to be organised and send our team elsewhere and use the structures of other companies with whom we have agreements to cooperate,” continues Campini. By straying away from fixed infrastructure, Tecnopool is able to benefit from reduced overhead costs and flexible pricing as a result. Tecnopool, unlike other yards in Viareggio, is not limited by the scale of the city’s infrastructure. As it stands, Viareggio-based shipyards share the use of three travel lifts, none of which are capable of hauling any vessel larger than 500gt. In addition, the port and marina facilities are not designed to berth yachts larger than 60m. While this may be considered a hindrance to some shipyards, Tecnopool is able to take its custom elsewhere, from the French Riviera to Liguria, and beyond, to the Adriatic. Regardless of a project’s geographical location, Campini maintains that the management, responsibility, invoice and overall contract belongs to Tecnopool. “We have had, especially over the past year, a number of cooperative projects with both Italian and French yards,” he explains. “Ordinarily we rent the space from our partners, but if I need some work doing, I will look to my partner because they are there and they can help and vice versa. However, the prices and quality need to match.” Campini’s outlook on the refit sector, and more specifically that of northern Tuscany, is positive. There are
The Superyacht R EPORT
a number of reasons the refit market appears to be in such rude health, but Campini believes there is one reason that trumps all others: owners are now acutely aware of the business proposition a superyacht represents. The value of a new superyacht is so great that to let it fall into disrepair is akin to burning money; if a yacht is well maintained, it maintains a proportion of its value. In addition, maintaining a yacht is no longer as simple, nor as cheap, as it once was. The materials and technologies on board, from the paint work to the engine room, render most refits a sizeable and expensive practice, and if one hopes to sell or charter their vessel it is a practice that must be adhered to and respected.
Regional report: Tuscany & Liguria
Refit is now regarded as a bona fide business in and of itself, rather than a critical but supportive role in the theatre of new build. Refitbased decisions are no longer controlled solely by the geography of a superyacht’s homeport: decisions are based on relationships and trust, competitive pricing and satisfactory conditions for owners, management, captains and crew.
“At the end of the day, it is not the owner who decides where the yacht should go for a refit,” continues Campini. “The owner should be more or less present in the choice, but it is the captains and crew who really influence the decisions.” It can, according to Campini, be difficult to convince senior crew and management away from the familiar comfort of the French Riviera, but
Refit is now regarded as a bona fide business in and of itself, rather than a critical but supportive role in the theatre of new build. A TECNOPOOL REFIT BEING LIFTED
ISSUE 169
25
The Superyacht R EPORT
Regional report: Tuscany & Liguria
there is no denying that Tuscany has its own charms to contend with the stalwarts of the Riviera, be it the food, Florence, the Apennine mountains or the comfortable, distinctly Italian speed of life. Even when competing with the likes of the French giants, the refit market in Viareggio, and indeed globally, appears to be going in one direction – upwards. While refit has undoubtedly developed into a pivotal business beyond the realms of new construction, it still plays a central role in supporting the activities of shipyards whose primary function is that of new-build activity.
ROSSINAVI Rossinavi, the family-run Viareggiobased shipyard, was founded in the 1970s as a subcontractor that specialised in metal carpentry; only later did it develop into a yard that focused on new build. Through the time spent earning its stripes as a subcontractor, Rossinavi believes it has developed an ‘intelligent advantage’, with many of the superyachts built in the area having
26
ISSUE 169
“In the beginning we focused on refits on board our own yachts, or the yachts of our clients, but now we have begun to do some larger and more invasive modifications to other vessels.” Claudia Rossi, sales director, Rossinavi been built in part by Rossinavi – if not under the Rossinavi name. With refit already part of Rossinavi’s heritage, it is unsurprising to discover that it has maintained a dedicated refit department that has flourished in recent years. “In the last three years we have had a sensible increase in refit activity,” starts Claudia Rossi, sales director at Rossinavi. “In the beginning we focused on refits on board our own yachts, or the yachts of our clients, but now we have begun to do some larger and more invasive modifications to other vessels.” There is an obvious benefit to refitting your own work. With all
The Superyacht R EPORT
the necessary drawings to hand, and the knowledge of the original subcontractors and individuals who worked on the project on your doorstep, one would assume that any maintenance task undertaken would be streamlined and efficient. By and large this proves to be true. “We are currently finishing M/Y Aslec 4,” says Rossi. “She is the 45-metre we launched in 2012 and the owner is well known to us. The relationship is already there with the owner, the architect and the designer, and everything is running smoothly.” Maintenance of one’s own vessel ensures that contact is kept with – and revenue generated by – the owner of the yacht. In recent years the industry has been abuzz concerning the concept of life-cycle management: caring for a yacht and its owner throughout the course of its life, thereby cementing relationships and creating consistent streams of revenue. It would seem, then, that such projects should form the lifeblood of a yard that primarily focuses on new build. Yet, there is also significant benefit in taking on the larger and more complex process of refitting a vessel that is entirely foreign.
Regional report: Tuscany & Liguria
INFRASTRUCTURE It is widely accepted that the global refit market is going through a period of growth, yet the common theme that underpins any discussion of the refit market in Viareggio is limitation. “It is difficult to adjust the size of the department,” comments Rossi. “Our main business is the new yacht construction, but refit is providing us with good profit and good business. So we are satisfied.” However, with life-cycle management constantly in mind, and with vessels like Rossinavi’s 70m M/Y Numptia on the water, as well as other large projects under construction, it cannot be desirable to see refit projects pass to competitors because of the infrastructural limitations of an area.
“Our main business is the new yacht construction, but refit is providing us good profit and good business. So we are satisfied.” Claudia Rossi, sales director, Rossinavi
The Superyacht R EPORT
Regional report: Tuscany & Liguria
BAGLIETTO As well as the shipyard in Viareggio, Rossinavi has larger premises in Pisa, which is capable of refitting superyachts greater than 500gt. However, this site is largely dedicated to Rossinavi’s new build projects. In the past the limitations of Viareggio and the unavailability of Pisa has led to Rossinavi using competitors’ facilities. “It is easier to stay below 500gt, but at times you have to compromise and we have done this before with refit and new builds,” comments Rossi. “Everything is more difficult when you use other facilities. With your own shipyard you can maintain your schedule and allow access for all necessary individuals and companies.” When using other structures, you are not in complete control of the processes and quality of service. There is, according to Campini, now a political plan in place to develop the marine infrastructure of Viareggio. “Private enterprise will have a major role to play and I personally know investors who are willing to contribute to this development. But the government needs to decide how best to proceed,” he says.
La Spezia to Livorno As we’ve seen from figures published in the Superyacht Intelligence Annual Report 2016, the new-build market is not selfperpetuating – in fact, it’s far from it. We have seen the number of deliveries fall consistently year on year since 2011, and despite the fact some 249 orders are scheduled for delivery in 2016, more pragmatic market analysts expect the true number to be far lower. This uncertainty, coupled with the fact the number of yards delivering superyachts has almost halved in the last 10 years (67 in 2015 compared to 104 in 2006), paints a fragile picture for today’s new-build market. And so it is that superyacht builders find themselves increasingly reliant on refit, maintenance and survey work to bolster the balance sheets and provide the working capital necessary to finance new builds. Some of the big custom names prefer to keep this fact quiet, while other shipyards have chosen to embrace the complementary custom model.
At Baglietto refits are only accepted when capacity allows, but practising the two disciplines simultaneously appears to be paying dividends.
ISSUE 169
29
The Superyacht R EPORT
Regional report: Tuscany & Liguria
iROCK, OVERHAULED FOR A NEW OWNER
“I’ve seen a tendency on the part of a lot of owners to restore their yacht and charter it, rather than trying to sell it. It’s a new way to earn money, now that the sales market has collapsed.” – Maurizio Craviotto, production manager, Baglietto BAGLIETTO La Spezia’s Baglietto is very much in the second category. Refit has come to represent an important part of the yard’s activity, and at the time of TSR’s visit there were six large-scale refit projects underway – AwayS, Rola, Blanca, Monokini, iRock and Heritage – from a total of 17 projects. Work includes replacing both engines on board Baglietto-built Monokini, the complete overhaul of iRock for a new owner and a fresh coat of paint for AwayS. Lucky Me and Apache II had also only recently left the yard after completing refit work, with more secheduled for minor works. Maurizio Craviotto, Baglietto’s production manager, explains that although refit projects make up 41 per cent of the yard’s current activity, new builds remain the priority. As such,
30
ISSUE 169
refits are only accepted when capacity allows, but practising the two disciplines simultaneously appears to be paying dividends. “Refit is very important. My only problem with the shipyard is space,” Craviotto says. To emphasise the scale of this ‘problem’, Craviotto explains that he generated 162 quotes for refit and maintenance works in the last year alone, and only 15 came to fruition. His solution, therefore, is to prioritise the larger projects that will justify the allocation of said space to a refit project, and invariably this involves paintwork, which is labour intensive but lucrative. Maximising margins without compromising on quality is key within today’s market conditions and, like most new build yards offering refit services, Baglietto achieves this by subcontracting most of its work out to the numerous companies based in the local area. This is not only an effective tool for reducing overheads, but is also marketed as a competitive advantage, with a plethora of recognised suppliers headquartered locally. Craviotto and his team retain the management of projects but outsource the labour. New works emerge on an almost daily basis during the course of a refit, he explains, and this requires a degree of malleability from both the client and shipyard.
The Superyacht R EPORT
Regional report: Tuscany & Liguria
THE NEW KID ON THE BLOCK
With the announcement of the acquisition of a major shipbuilding site in La Spezia at the end of 2015, Sanlorenzo ostensibly formalised its entry into the refit market, despite having provided service and maintenance work for many years. TSR spoke to Errico Riggi, Sanlorenzo yacht service and refit director, and Raffaello Putti, Sanlorenzo superyacht service and refit director, about this new era for the prolific builder. Is Sanlorenzo currently undertaking any refit work? ER: Sanlorenzo has a refit department dedicated to Sanlorenzo customers and to other brands’ selected customers, named ‘Sanlorenzo Timeless’. There are currently several refit projects in progress: UÊ- Ê£än\ÊV « iÌiÊ ÌiÀ ÀÊ> `ÊiÝÌiÀ ÀÊÀiwÌ]Êw ÊÃÌ>L ÃiÀÊ ÃÌ> >Ì ° UÊ- Ê£än\Êw ÊÃÌ>L ÃiÀÊ ÃÌ> >Ì ]Êi } iÃÊ> `ÊÃÞÃÌi ÃÊ ÛiÀ >Õ ]Êi iVÌÀ VÊ navigation equipment overhaul. UÊ- Ê£ä{\Ê >À`ÊÌ «Ê ÃÌ> >Ì ]Ê 6Ê ÛiÀ >Õ ]Ê}i iÀ> Ê > Ìi > Vi° UÊ- Ê£än\ÊV « iÌiÊiÝÌiÀ > ÊÀi«> Ì]Ê}i iÀ> Ê > Ìi > Vi°
Are there plans to expand the scale of Sanlorenzo’s refit operation? RP: We are planning to establish a new facility fully dedicated to service > `ÊÀiwÌÊ ÊÌ iÊ Õ vÊ vÊ >Ê-«iâ >°Ê ÌÀ>VÌÃÊ> `Ê i} Ì >Ì ÃÊ>ÀiÊ> Ài>`ÞÊ Üi Ê>`Û> Vi`ÊÜ Ì ÊÌ iÊ V> Ê>ÕÌ À Ì iÃÊ> `ÊÜiÊiÝ«iVÌÊÌ iÊ iÜÊv>V ÌÞÊÜ Ê ÃÌ>ÀÌÊ «iÀ>Ì ÃÊÜ Ì ÊÌ iÊ iÝÌÊÞi>À°Ê/ iÊÃÕ«iÀÞ>V ÌÊ` Û Ã Ê> `Ê iÜ LÕ `Ê >VÌ Û Ì iÃÊÜ ÊLiÊ Ûi`ÊvÀ Ê6 >Ài}} ÊÌ ÊÌ iÊ iÜÊv>V ÌÞ]ÊÜ V Ê> Ài>`ÞÊ provides sufficient facilities for modern service requirements. The site vviÀÃÊ >À}iÊë>ViÃÊÌ ÊiÃÌ>L Ã Ê `ÕÃÌÀ > Êà ÌiÃÊ> `Ê> ÊiÝÌi à ÛiÊ iÌÜ À Ê vÊ qualified contractors.
RP:Ê -> Ài â Ê -Õ«iÀÞ>V ÌÊ Û Ã Ê Ü>ÃÊ iÃÌ>L à i`Ê Ê ÓääÇÊ LÕÌÊ >ÃÊ since suffered from the lack of a proper site to carry out service and refit >VÌ Û Ì iÃ°Ê Ûi ÊÜ Ì ÕÌÊ>Ê`i` V>Ìi`Êv>V ÌÞ]Ê£nÊ-> Ài â ÊÃÕ«iÀÞ>V ÌÃÊ >ÛiÊ been delivered and serviced over the last eight years. Renting and service >}Àii i ÌÃÊ >ÛiÊLii Ê « i i Ìi`ÊÜ Ì ÊÌ À` «>ÀÌÞÊv>V Ì iÃÊ Ê6 >Ài}} ]Ê >Ê-«iâ >]Ê i >]Ê" L >Ê> `Ê* Ã>° We are currently servicing: UÊ/Ü ÊÕ ÌÃÊvÀ Ê{ÈÊ-Ìii ÊÃiÀ iÃ\Ê iÊv ÀÊw > ÊÜ>ÀÀ> ÌÞÊÜ À ÃÊ> `ÊÌ iÊ Ì iÀÊ for a minor refit following the resale of the yacht to a new client. UÊ/Ü ÊÕ ÌÃÊ vÊÌ iÊ{ä ÞÊÃiÀ iÃ\Ê iÊv ÀÊw > ÊÜ>ÀÀ> ÌÞÊÜ À ÃÊ> `ÊÌ iÊ Ì iÀÊ after trade-in. UÊ /Ü Ê ,*Ê Þ>V ÌÃ\Ê >Û }Ê Lii Ê ÌÀ>`i`Ê Ê vÀ Ê iÝ ÃÌ }Ê V i ÌÃ]Ê L Ì Ê >ÀiÊ Li }ÊÃiÀÛ Vi`ÊLiÌÜii Ê6 >Ài}} Ê> `Ê >Ê-«iâ >°
Do you feel that refit is now a necessity for all new build yards to complement their construction business? ER: It is not logical for all brands to have a refit department, but refit and maintenance guaranteed by the manufacturer is a natural way to continue the partnership between customer and shipyard.
How important is refit work to the Sanlorenzo business model? RP: In response to the growing number of yachts and clients it has become increasingly important for Sanlorenzo Superyacht to establish a dedicated v>V ÌÞÊ> `ÊÌi> °Ê/ ÃÊ ÃÊ ÌÊ ÞÊv ÀÊÜ>ÀÀ> ÌÞÊ> `ÊÃiÀÛ ViÊÜ À Ê ÊiÝ ÃÌ }Ê Sanlorenzo superyachts, but also to attract other clients willing to service their yachts at our facility.
32
ISSUE 169
The Superyacht R EPORT
Baglietto’s most viable answer to the question posed by the shipyard’s physical limitations – 32,000sqm of space, a 720t travel lift and shed space up to 60m LOA – lies in a neighbouring Italian naval site that could allow for the next phase of expansion. “Mr Gavio [owner and chairman of Baglietto] wants to invest in refit,” Craviotto says. “I’ve seen a tendency on the part of a lot of owners to restore their yacht and charter it, rather than trying to sell it. It’s a new way to earn money, now that the sales market has collapsed.” Whether this comes to fruition will largely depend on Baglietto’s determination to progress through the notoriously bureaucratic leasing process for government sites, but, if successful, the acquisition of this site would double the size of the shipyard. Refit work remains somewhat seasonal for all but the largest refitters, but one unique advantage a new-build yard holds is the ability to offer service work for the yacht’s entire lifecycle, and this is another reason supplementary refit work is proving so attractive. It is in part, then, refit that is driving Baglietto’s planned expansion, Craviotto says.
Regional report: Tuscany & Liguria
LUSBEN South of Baglietto’s La Spezia site is the major port city of Livorno, home to the Azimut Benetti Group’s dedicated refit division, Lusben. The group does conduct refits at its Viareggio facility, but Lusben bases itself in Livorno because of the sheer size of the site, something that’s immediately apparent when one arrives at the yard. There are so many superyachts in the water and on the hard that it resembles a small boat show (see image on pages 22-23). “We have 90,000 square metres of hard standing in Viareggio and 120,000 square metres of hard standing, plus the marina, in Livorno”, explains Marco Nuovo, Lusben’s sales coordinator. “Livorno has three main lifting capabilities: a small, 300-tonne travel lift, a shiplift of 2,500 tonnes, which a lot of clients prefer because it doesn’t have straps, and a floating dock of 18,000 tonnes. So, in the Med, Lusben is probably the best equipped facility for combining space and lifting equipment.” It certainly is an impressive location, and one can see the obvious benefits that
There’s no shortage of refit specialists in western Europe able to service very large superyachts, but it is a combination of pricing, reputation and crew amiability to the area that drives the choice of yard.
LUSBEN, VIAREGGIO
ISSUE 169
33
The Superyacht R EPORT
come with falling under the auspices of yachting’s largest privately owned group. The infrastructure in place allows Lusben to work on an average of 70 projects across both sites each year. In fact, while the numbers are broadly split equally between Viareggio and Livorno, Nuovo conceded that there is capacity for more work at the latter. The limiting factor, he says, is a lack of industry awareness about Livorno’s status as a superyacht destination, coupled with misconceptions about the site being an extension of the Benetti newbuild operation. It is hard to imagine an Azimut Benetti subsidiary struggling with market visibility, but, as Nuovo explains, superyacht crew are creatures of habit, and as a site that has only existed for eight years, he feels the yard still needs to to make a name for itself. It is a competitive market Lusben finds itself operating in. There’s no shortage of refit
Regional report: Tuscany & Liguria
specialists in western Europe able to service very large superyachts – Amico, MB’92 and Monaco Marine are just a few examples. But it is a combination of pricing, reputation and crew amiability to the area that drives the choice of yard. Of the former, Nuovo feels the market has been further diluted by the necessity for new-build yards to supplement their bread-and-butter operations with refit work. This diversification of the market has
forced the quality yards to reiterate their pedigree, in the hope it will speak for itself. However, there has been downward pressure on pricing, which is linked to this rising demand. “It’s like any other market – you always have to look at the price,” he says. On the welltrodden path of advocacy, he is similarly pragmatic. After all, having a parent company with the pedigree of Benetti helps when it comes to client recommendations. “After all,
“There are a lot more charters these days, and things can break and there are emergencies. It’s like any other business – you have ups and downs, but it’s about optimising the business model.” – Marco Nuovo, sales coordinator, Lusben
The Superyacht R EPORT
Regional report: Tuscany & Liguria
AMICO’S NEW COVERED SHED OVER DRY DOCK NO 2
if you build boats, you know how to fix boats,” he quips. Nuovo understands that having such a vast acreage of space means there is always scope to increase the number of projects pulling into port, and the business is looking to expand its global reach. This will be assisted by the opening of a new Lusben sales office in Marina Genova Aeroporto and service partnerships in the eastern Mediterranean. Alongside Azimut Benetti’s presence in all of the major global yachting hubs, Nuovo feels Lusben is establishing a truly global refit presence. Looking forward, Nuovo predicts a bright future for this most robust sector. “In 2010, when the nautical industry was really suffering, refit really kept everyone alive, and it continues to do so. Before, refit was a seasonal job: it started in September or October, and normally ended with the Monaco Grand Prix. You would then have the dead season, from June to September, but we’ve noticed these months are not so dead anymore. There
36
ISSUE 169
are a lot more charters these days, and things can break and there are emergencies. It’s like any other business – you have ups and downs, but it’s about optimising the business model. “We can double the capacity here in Livorno. In the last eight years [since the establishment of the Lusben Livorno site] we have more than double the number of clients. I’m feeling very positive because the yachts are getting bigger. We have a great opportunity to encourage bigger yachts to come to our facility; we just have to reach out to those channels.”
Genoa AMICO & CO The history of the Amico shipyard dates back to 1799 when master builder Matteo Amico set up his own yard in Loano, on the west coast of Liguria, about 60km from Genoa. In 1885, the family transferred its facilities to Genoa to focus on ship maintenance and repair. Under the guidance of Alberto Amico, the fourth-generation family member to head up the shipyard, the company has focused exclusively on the superyacht sector since 1991, and is celebrating its 25th anniversary this year. As of this year, it leads the world in terms of turnover.
YARE & THE SUPERYACHT CAPTAINS’ FORUM " ÊÈÊ «À ]Ê-Õ«iÀÞ>V ÌÊ Ûi ÌÃÊV >L À>Ìi`ÊÜ Ì ÊÌ iÊ9>V Ì }Ê vÌiÀÃ> iÃÊ> `Ê,iwÌÊ Ý«iÀ i ViÊ9 , ®ÊÌ Ê«À `ÕViÊÌ iÊ-Õ«iÀÞ>V ÌÊ >«Ì> Ã¼Ê ÀÕ Ê Ê >ÀÀ>À>°Ê7 Ì Ê À }Ê iÞ ÌiÃÊv Üi`ÊLÞÊ> Ê>vÌiÀ Ê vÊÜ À à «Ã]ÊÌ iÊiÛi ÌÊÜ>ÃÊ>ÌÌi `i`Ê LÞÊ ÛiÀÊÓääÊV>«Ì> ÃÊ> `ÊV ÛiÀi`ÊÌ iÊÌ « VÃÊ vÊÀiwÌ]Ê ÃÕÀ> Vi]Ê«> Ì]ÊÌ iÊ 1ÊwÃV> Ê Ã ÌÕ>Ì Ê> `ÊVÀiÜÊ ÃÃÕiÃ]Ê> }Ê Ì iÀðÊ/ Êw `Ê ÕÌÊ ÀiÊ« i>ÃiÊÛ Ã Ì\ www.superyachtevents.com°
The Superyacht R EPORT
“The industry has changed dramatically over the past few years,” says Alberto Amico. “The yachts are getting bigger and that has required constant investment in facilities and human resources to remain viable and competitive.” The latest investments include a new 102m graving dock equipped with heating, ventilation and emission treatment systems for coating works; the telescopic covering of dry dock no. 2, managed directly by Amico & Co and able to accommodate two yachts of up to 90m (owned by the port of Genoa’s Ente Bacini, the yard also has access to another two dry docks run by the commercial port); and a new 80m dock for alongside mooring of superyachts in the water. Taken together, these new facilities represent an investment of more than €17 million. In addition to expanding the Genoa yard, Amico Loano, a brand of the Amico group, is a facility of 8,500m2 located halfway between Genoa and Monaco. Able to dry dock vessels of up to 50m, with berthing for 80m yachts, the yard’s location makes it a convenient proposition for smaller yachts in both the Italian and French Riviera. The company saw year-on-year growth up until 2008 and has bounced back quickly in the post-recession period. The arrival of 85m Delma (formerly Annaliesse and launched by the Neorion shipyard in 2004) last year has pushed up annual turnover from an average of €25 million to around €60 million.
NEW BREAKWATER AT AMICO & CO
Regional report: Tuscany & Liguria
The refit – one of the largest and most complex ever undertaken in the Mediterranean – involved extending the hull to 91.5m, refurbishing 80 per cent of the interior, and installing new machinery and systems. “The bigger the yachts, the more complex they are and the more difficult they are to manage during the refit process,” says Amico. “Unshipping and realigning 12-metre drive shafts is a specialised skill that you don’t find
“Planning for the future is difficult in an industry where there is so little pre-planning.” – Alberto Amico, chairman, Amico & Co anywhere. The problem is that the market tends to think that if you can build a boat, you can also refit one. That’s not always or even usually the case.” Amico sees a distinct difference in approach to refits from owners depending on the size of their yacht. Historically, with smaller yachts the prime consideration has been cost, followed by infrastructure (facilities, logistics, network partners, etc.), with
technical know-how and expertise coming last on the list. For the larger and more professionally managed yachts, the reverse is true, and this is where Amico & Co comes into its own. “Of course, the price is relevant, but it should not be the most important factor,” says Amico. “A major refit presents a long list of very complex questions that have to be evaluated and resolved in a short space of time. That requires thorough planning and know-how. We have 25 personnel in our engineering department alone and can rely on a network of specialist firms based locally that work with us on a regular basis. As a result, we tend to attract the more complex projects and demanding clients.” As with all refit yards, Amico & Co relies heavily on repeat business and word of mouth among industry professionals, but it is also making active efforts to reach out to the decision makers. In 2013 the shipyard inaugurated The Italian Job, a threeday event aimed at superyacht captains and their families. Organised in partnership with the Pesto Sea Group, the fourth edition of the event will take place in October this year. “It’s a way of combining pleasure with business, as we really don’t push the commercial side,” says Amico. “After a busy summer season, it provides an opportunity for the captains, managers and service providers we work with to relax in the company of family, friends and colleagues during a round of golf or a game of tennis, over dinner or in the spa. The networking follows on naturally from that.” Amico is hesitant when it comes to forecasting the future of the refit industry in the region. “Planning for the future is difficult in an industry where there is so little pre-planning,” he points out. “Over 80 per cent of our clients are repeat customers, and once you reach that kind of critical mass other requests start to come in almost automatically. But turning those requests into contracts is another matter in a business where there are so many variables affecting the final decision.”
ISSUE 169
39
The Superyacht R EPORT
Regional report: Tuscany & Liguria
Savona MONDOMARINE Under chairman and owner Alessandro Falciai and CEO Roberto Zambrini, Mondomarine has been hard at work the past few years devising new business strategies for the Savona-based shipyard. Apart from five new-build projects from 40m to 60m currently under construction, the yard is also quietly expanding a presence in the refit and repair sector. “With our healthy order book we haven’t been marketing our facilities to the refit market as much as we could,� says Giancarlo Mussino, Mondomarine’s sales manager. “Having said that, refit represents around 25 per cent of our total turnover, which serves as a cushion for the more unpredictable new-build market and as a way of introducing new clients to the brand.� Indeed, Falciai acquired Mondomarine in 2013 after a positive experience of refitting his own classic yacht, the 54m Adamas II built by Dauphin Yachts in Singapore, which involved adding six metres to the hull, zero-speed stabilisers and a bulbous bow. Comparative studies of different propeller and rudder configurations resulted in less vibration
MONDOMARINE PHOTO: JUSTIN RATCLIFFE
40
ISSUE 169
and an increase in top speed without affecting fuel consumption. “All the engineering studies were carried out in-house by Mondo,â€? says Falciai, a telecommunications entrepreneur who trained as an aeronautical engineer. “Refits such as these can be quite complex and sometimes it’s easier to build new. Given my technical background, I was a demanding client and you could say the experience served as my due diligence before acquiring the shipyard.â€? Mondomarine’s principal refit customers are the owners of its own expanding fleet and at the time of our visit no fewer than five of its yachts were sitting on the hard, including TribĂš, the 50m explorer vessel previously owned by Luciano Benetton. Auspicious, another Mondo yacht, underwent a major refit in 2013 involving engineering modifications and a full interior refresh, with outfitting by List. Space permitting, however, the yard welcomes vessels by other builders and is currently engaged in refitting a 53m Baglietto that was damaged by fire in 2009 just prior to delivery. The hull was acquired by the owner of Glaze, a 49m Trinity, and H2 Design was employed to completely restyle the aluminium superstructure. The refit is due for completion in 2017.
Improved management and production procedures have done away with the quality control issues that plagued Mondomarine before the change of ownership three years ago. Although it lacks its own dry dock, it does have a 820-ton travel lift (one of the biggest in the Mediterranean and able to take yachts up to 65m) and a wealth of in-house experience. The yard can also draw on a local subcontractor brought in-house under the acquisition terms for all metal cutting in steel and aluminium, which safeguards delivery schedules and quality control. The strategic and physical allure of the region has contributed to the rapid growth of the refit sector in Liguria and Tuscany. The challenge for the companies that line the Italian coastline, however, is to highlight the quality of workmanship in this increasingly crowded sector to compete with other European hubs.
/"ĂŠ " /ĂŠ" ĂŠ/ -ĂŠ ,/ ]ĂŠ \ ISSUE169@SUPERYACHTREPORT.COM 7 / ĂŠ-1 /\ĂŠ / ĂŠ, " ĂŠ, *",/
The Superyacht R EPORT
Azimut Benetti Yachtmaster
You cannot be serious! With the Yachtmaster event becoming an increasingly professional gathering, is it a surprise that this year’s event raised questions on the quality of crew? Will Mathieson reports from the event.
T
he Azimut Benetti Yachtmaster event, now in its 16th year and spanning three continents, has traditionally been an exercise in indulging captains. The Italian builder has long been savvy enough to know that fun and fine dining is a sure way to live long in the memories of those closest to the owner. Treating them to a few days of pampering is a powerful tool for client retention. The past five years, however, have seen the event, like the industry as a whole, adopt an increasingly serious stance. Activities and long lunches have made way for presentations and interactive workshops. In the nascent era of socially responsible yachting, education has replaced decadence. As one would expect, there are some captains who feel that the learning is an unnecessary façade and the event should remain pure R&R. But there are also plenty of captains who find the recently established workshops of practical use as a means of staying up to date with matters ashore.
114
ISSUE 169
This year all of the industry staples – insurance, regulations, VAT – were dissected and, to the credit of the adjudicators, the interactive nature of the workshops allowed the experts to field questions as and when they arose. However, sitting in on the workshops objectively, the subject of crew
The subject of crew quality clearly grabbed the attention of the attending captains. quality (surprise, surprise) clearly grabbed the attention of the attending captains. This is an issue that appears to concern the entire industry. It is the biggest bugbear of superyacht owners and, on the evidence of the discussion at Yachtmaster, is of real concern to captains as well. The conundrum is what to do about it.
The Superyacht R EPORT
The accusation being levelled is that the most junior crewmembers entering the sector are ambivalent to its long-term opportunities, and this is reflected in the standard of their onboard competencies. The complaints are so widespread that there must be some substance to them, but the amateur recruits, as the output from the Yachtmaster workshop shows, are still subject to an amateur recruitment process. It was Roberto Giorgi executive chairman of Fraser Yachts, who said that the psychometric testing techniques employed by the commercial sector can help to identify the natural leaders that “make a number two a number one�. This form of rigorous testing was also advocated by workshop moderator and crew consultant John Cook. But the response of a number of captains is that the same rules do not apply to superyacht recruitment – “What about the gut feeling?� one asked. Another pointed out the importance of a solid personal rapport, which, in a crisis, could represent lifesaving camaraderie.
Azimut Benetti Yachtmaster
Recruiters also came in for criticism, with one captain claiming the vast majority were ‘simply profit-focused’, advocating word of mouth as a more reliable means of securing a recruit. There is some substance to this unconventional approach. After all, as another pointed out, “Everyone has the requisite certificates; it’s the personality that sets someone apart.�
by working in symbiosis with experts, be they CSPs, insurers or regulators, captains can ensure that they and their crews deliver the true superyacht experience. From this event, it’s clear they want to learn, and it is up to the industry to provide the correct subject matter.
“Everyone has the requisite certificates; it’s the personality that sets someone apart.� So, if the key to successful recruitment is personal interaction, why do we have a supposed problem with crew quality? Unfortunately, no definitive conclusions were reached by the end of the workshop – but what the Yachtmaster discourse does underline is the need for instruction and education across all sectors of the industry. Nobody knows it all, and
/"ĂŠ " /ĂŠ" ĂŠ/ -ĂŠ ,/ ] \ ISSUE169@SUPERYACHTREPORT.COM 7 / ĂŠ-1 /\ĂŠ9"1ĂŠ
"/ĂŠ ĂŠ- , "1-t
* "/"-\ĂŠ/ ,,9ĂŠ ,
ISSUE 169
115