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CERNAVAL GROUP I PROFILE 2 Cernaval Group
As the owner of shipyards in Malaga and Algeciras, the Spanish family-owned Cernaval Group has remained buoyant through the turbulent times of the maritime industry with a laser-focus on high-quality ship repairs and maintenance services. Timely investments in infrastructure and their logistical presence in the Straits of Gibraltar guarantee the shipyards are always busy. Commercial Director Enrique Perez spoke to Inside Marine’s Andy Probert about the group’s ambitions.
Having ridden the lows and highs of the pandemic, the shipyards of the Cernaval Group have enjoyed complete occupation since late 2021, and there appears no let-up into 2022.
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For Mr Perez, Group Commercial Director, that kind of ‘good crazy’ is overseeing vessels from across the world calling in for requisite repairs, ballast water treatment system retrofits, and all manner of works that have marked the shipyards out as key reference points in the Mediterranean and Straits of Gibraltar for quality and high standards of workmanship. The yards are fully equipped for marine repairs and general ser vices ranging from electrical, heavy gears, propulsion, hatch covers, steel and mechanical works, pipe works and hull treatment.
Enduring success Critical to the enduring success of the modern yards has been the foresight and careful investment of the Lopez family, which first stepped into the arena with the launch of the Mario Lopez Shipyard in the Port of Malaga in the mid-1980s.
“Welcome to my kind of crazy,” said Enrique Perez. This opening remark reflects his 14 years of working within the Cernaval Group, a highly successfully privately-owned company that runs shipyards at Malaga Port Bay and Algeciras Port.
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“We are exceptionally busy at the moment. From the second half of 2021 through to the first quarter of 2022, we saw a high number of vessels coming for repairs, and that will remain the case going forward in 2022.”
Today, the 20,000 sqm Malaga base has four quays totalling 1,000m in length, with a 2,000 sqm workshop, warehousing and a 140m x 24m floating dock, with a lifting capacity of 7,500 tonnes.
Mr Perez explained: “We sold our previous floating dock to a ship yard in Ivory Coast in 2017, and immediately after, we bought a much bigger one from South Korea.”
The group is also set to extend a 285m length pier to 510 metres. Mr Perez said: “This will be an excellent addition to the shipyard to be used for afloat repairs or for a vessel to wait from dock to berth.”
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This is in marked contrast to the 300,000 sqm of available space in Algeciras, which accommodates workshops over 5,000 sqm, two lay berths of 510m and 240m in length, a 400m graving dock, a 230m x 39m floating dock, and a lifting capacity of 35,000 tonnes.
“We have the same dedication and commitment whether smaller vessels, such as tug boats, barges and offshore, which go to Malaga, or if it’s mainly Aframax tankers, Capesize bunkers or con tainers, attended, to by Algeciras,” said Mr Perez.
Mr Perez said that since the addition of the graving dock at Algeciras in 2008, the company had shifted emphasis from a pre dominantly Spanish clientele to a more global approach.
Cernaval Group In 1995, the family took over the Campamento shipyard at Algeciras to enable the handling of bigger vessels and more complex works.
Exceptionally busy
“The port authorities considered using the space at Algeciras as a container port, but that didn’t transpire, and it remained abandoned for about 20 years. Eventually, they invited Mr Lopez, our President, founder and owner, to look at the area, and he agreed to establish a shipyard. Since then, Cernaval’s name and reputation has grown on the world stage.”
“We have received vessels from main customers in Germany, the Netherlands, Greece, Spain, Hong Kong, Singapore, and even Ecuador and Cuba,” Mr Perez listed. Speaking of the client diversity, he reflected that the group had been ramping up its search for new markets and “to take advantage of the lack of facilities with big docks in America.”
He added: “We have been trying to look for customers who need sizeable dry-docking facilities and repair works. Our quality of work, reputation and close contacts have helped us network and collaborate with brokers and clients.
The group’s main focus of work is for vessels on their first or second special surveys, usually those that are five to ten years old rather than older-aged vessels.
Christened Crislaube, the floating dock embarked on a twomonth voyage on COSCO Heavy Transport’s semi-sub Xin Guang Hua and was received in Algeciras in May 2019. She was dry docked, inspected and modified before being placed in her new operational position. Pressed into service in April 2020, her first vessel was Maersk’s Safmarine Nakuru, a 35,137 DWT, 2,478 TEU container ship for essential works.
A snapshot of the type of operations at Algeciras was offered when, in the summer of 2020, Cernaval was handling repairs and works on a RoRo cargo ship for Grimaldi Group, a Hapag-Lloyd container ship for afloat works, and a RoRo passenger vessel for Baleária. The yard also managed a self-discharge bulker for works and afloat repairs for several offshore units belonging to Archirodon Construction Group. The group’s clientele originate from every corner of the globe, from Central and South America, Europe and Asia.
Key location and investments
One significant investment the Cernaval Group has reaped was acquiring a new 230m x 39m floating dock for Algeciras.
“2020 was one of our best years. After July 2021, we have boomed and 2022 has started fantastically and while several factors can alter this trend, we remain optimistic for the rest of the year.”
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“As a family-run, 100% private venture, this gives clients many advantages. We are flexible to their necessities; we can rapidly optimise the work and complete projects. Our structure is very direct and dynamic. Relationships with clients and suppliers are built on transparency, honesty and trust, allowing the profes sional relationship to become more personal and friendly.”
He elaborated: “It is only recently that we have signed con tracts with these two important clients. This was due to the syn ergies between the community here, and they were hearing how well we were doing. And they knew where we were located. It is a matter of Accordingtrust.”toMrPerez, one of the tipping points in Cernaval’s favour was the work required to replace hatch covers on container vessels. “We decided to evaluate the market as we wanted to break the trend of vessel work going elsewhere and attract owners to Algeciras. We concluded by investing in a mobile crane for this hatch cover work.”
A global but personal business
“The priority is to convince customers to test Cernaval’s capa bilities to see if we can put ourselves in front of competitors they have been using previously.”
He said: “You can still find the owner, Mr Lopez, still coming into work every day. The Cernaval Group is second-generation run through his three daughters, with Cristina, the Financial Director.
“Year-by-year, investment-on-investment, our reputation grows organically. This is because of the owner’s foresight to invest so that we can take on bigger vessels. As customers coming and contin uing to return for work are increasing, that fuels our optimism for future growth,” Mr Perez concluded. n
Cernaval’s 400-tonne mobile crane was bought from a client in northern Spain and delivered in May 2021. It was in service less than two weeks later and has remained so ever since.
Another major factor in favour of Cernaval, said Mr Perez, is how quickly its staff can move between Malaga and Algeciras, facilities or vice versa depending on the projects.
“Given our key location in the Straits of Gibraltar, we have con tinued to grow strongly in the last five years. The market believes we are doing very well, meeting delivery times, at a reasonable price, given we are in a Western European nation. Because of var ious factors, some shipowners have mobilised back to Europe for repairs rather than Asia. “We also benefit from the fact that Maersk and CMA CGM, two of the main players in containers ships, are located at Algeciras. In our favour, the distance from the terminal to our repair centre is practically zero.”
He explained: “Now we can do everything in one day that a stan dard crane would take two-and-a-half days to do on hatch cover recovery on a 300-metre vessel. We can now match the speed of our competitors, and offer a very reasonable price.”
He said the group’s main ambition is to keep growing clientele and “make our relationships stronger, and ensure our reputa tion carries from mouth-to-mouth in the maritime industry. This business is global, but it is very personal.
He added: “A major differentiating factor is our special location in the Straits of Gibraltar. Along with the Panama Canal, Suez Canal and Singapore, it is one of the four channels through which marine traffic has to pass. We are at the gateway of the Mediterranean and to the Atlantic. We have 150,000 vessels passing through the area, so we are in one of the right places in the world.
Employing between 150 to 170 workers, Cernaval can turn to external contractors, which can push that figure up to 250 people, depending on projects at any given time.
