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ISSUE 166 NOVEMBER 2015
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REPORT SUNRISE RISING
TSR talks to CEO Guillaume Roché about Irimari, at 63m the largest delivery to date from Sunrise Yachts.
A QUALITY CHARTER
SKYSCRAPERS OF THE SEA
We ask whether the charter market has the requisite quality of custom yachts to attract new clients to the market.
How the demand for high-performance superyacht rigs is affecting both safety and insurance premiums.
THE INSURANCE ACT
How the new Insurance Act, due to come into effect in 2016, will affect superyacht owners.
Sunrise Rising
PHOTO: JUSTIN RATCLIFFE
Following on from the launch of 45m Africa (now Dynasty) in 2009 and sister ship Atomic last year, 63m Irimari is the largest delivery to date from Sunrise Yachts. Justin Ratcliffe travelled to Antalya in Turkey to catch a first glimpse of the motoryacht prior to her Monaco Yacht Show debut and to talk with CEO Guillaume RochĂŠ.
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The Superyacht R EPORT
Sunrise Yachts
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ith exterior styling by Espen Øino and interior design by Germany’s Focus Yacht Design, the 1,500gt Irimari is one of the highest volume yachts ever built in Turkey and almost three times more voluminous than the shipyard’s two previous launches. Despite the challenges this step up in size presented, the build was completed in 30 months. She is actually the second hull in the yard’s 63m series, but was the first to be completed after the first project was delayed due to contractual changes requested by the owner. “The stumbling block with hull one came when the owner wanted to change interior designers from Franck Darnet to Redman Whiteley Dixon,” said Guillaume Roché. “This brought more pedigree to the project, but also considerably more cost. This has been the stumbling block for the past two years, but we’ve finally reached an agreement and [at the time of writing]
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the build is about 60 per cent complete with another 14 months to go.” Irimari’s considerable volume was immediately apparent when TSR toured the yacht in the final stages of fitting out. Distributed over four decks (not including a small observation deck), the immediate impression is of space to spare both inside and out. Stand-out features include the full-aspect windows above the lower deck, generous ceiling heights, and an enormous master suite on the forward main deck that includes a VIP cabin for the owner’s daughter and even a private massage room. Space is also the key characteristic of the sundeck with its enclosed central section with a gaming console for six people, in addition to the 7,000-litre capacity Jacuzzi, bar and lounging areas fore and aft. The exterior decking throughout is low-maintenance synthetic teak from Bolidt – still a rarity on superyachts.
BELOW: IRIMARI LAUNCHING
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The Superyacht R EPORT
Sunrise Yachts
PHOTO: JUSTIN RATCLIFFE
In terms of the interior decòr and finish, Irimari lacks for nothing. The style is contemporary and fresh, and the furniture and outfitting by Istanbulbased interior companies Ekinoks and Ulutas are of a quality on a par with European standards. The interior is tastefully appointed with high-gloss oak and ebony veneers; gold and copper leaf detailing; azul macaubas, nero marquina and lilla marbles; and custom-stitched Foglizzo leather in shades of orange, warm grey and dark brown. Textiles are supplied by the likes of Hermès, Zimmer + Rohde, Leon Anne Kyyrö Quinn and Christian Fischbacher, and there are no fewer than 13 different treatments of glass – from etching to sandblasting – with a monolithic CNC-machined curved acrylic shower wall in the master bathroom. Interestingly, the washbasins throughout the yacht are made of Corian, a lightweight and practical material with a crisply modern feel that is often overlooked outside of the crew quarters. The layout is conventional, with a clear distinction between guest and crew circulation. Of the four guest cabins on the lower deck, the two double cabins amidships can be converted into a single VIP suite by sliding closed an insulated wall panel along the centreline. The magnificent circular dining table of macassar ebony with copper detailing has been placed aft of the main salon close to the doors to the open aft deck; this means the salon can also serve as a cinema with a 98-inch flat screen TV mounted on the forward bulkhead. The two structural pillars in the main salon and the sky lounge above are cleverly disguised with wrap-round glass chandeliers. Another advantage of Irimari’s high volume is that there is space for a fullheight tank deck that houses a crew lounge and media room along with laundry, linen store, garbage and cold rooms. It also means that equipment such as watermakers, boilers, heaters and shore power converters can be moved out of the engine room for easier access.
The style is contemporary and fresh, and the furniture and outfitting by Istanbul-based interior companies are of a quality on a par with European standards. “We prefer not to put too much equipment in the engine room,” explained Fabien Roché, a former superyacht captain who moved ashore to work alongside his brother Guillaume as Sunrise’s COO. “Instead, technical rooms are distributed throughout the yacht for ease of maintenance and to reduce the amount of piping and cabling. Having everything running into the engine room and then back out again is just bad engineering in my view.”
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The Superyacht R EPORT
Sunrise Yachts
Aldric Quevaine, the yard’s project manager on Irimari, claimed that the technical spaces aboard the 63m represent a significant improvement on the two previous launches. The higher volume is a factor, of course, but the yard now takes a different approach to the design of the engine room. “We try, for example, to compartmentalise the space more logically, so port aft is all about the bilges and fire fighting systems and port forward is about the fuel,” said Quevaine. “By grouping systems together we found we could save weight because you have shorter pipe runs.”
We now have QA procedures for everything from how we hang the cable trays to the selection of subcontractors. I want people to walk into the engine room and say ‘this is a Sunrise yacht’ for the right reasons – like they do on a Feadship.” – Aldric Quevaine, project manager, Irimari
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Other advances have resulted from the shipyard establishing written Quality Assurance (QA) and Quality Control (QC) procedures, especially in terms of coordinating the build process. “Quality control is already too late in my opinion, because the job’s already done,” said Guillaume. “So we now have QA procedures for everything from how we hang the cable trays to the selection of subcontractors. I want people to walk into the engine room and say ‘this is a Sunrise yacht’ for the right reasons – like they do on a Feadship.” The hull, which was fully tank tested, floated perfectly on her lines at her launch and exceeded expectations in terms of efficiency, stability and manoeuvrability during sea trials under the command of Fabien as build captain. “When you looked under the hull before she went into the water the props and rudders looked tiny – I seriously wondered how they were going to behave,” he admitted. “In the event, even with 25 knots trying to push us on to the dock, she was able to pull away with the bow thruster and rudders with no problem at all.”
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The Superyacht R EPORT
Sunrise Yachts
EXPANDING HORIZONS
PHOTO: JUSTIN RATCLIFFE
Guillaume wants to make yacht ownership a more attractive proposition by rationalising what is essentially an irrational decision. Total Cost of Ownership (TCO) is a financial estimate intended to allow buyers determine the direct and indirect costs of a product or system.
BELOW: XENITH
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The Sunrise facility in Antalya’s tax free zone has expanded since 2007 to include four construction sheds, all of which are occupied. The shipyard hit the headlines early last year when it was announced that John Staluppi had signed up to build 68m Skyfall designed by Andrea Vallicelli with Sunrise. Construction got under way but eventually fell through and Staluppi is now building with Benetti. The project, renamed Xenith (N681), is currently for sale. Sunrise has lengthened the hull to 70m and reverted to conventional propulsion instead of the high-speed Voith linear jets originally specified, although the MME microturbine generators remain and are likely to become standard on all Sunrise yachts. Additional yachts in build include the first 63m (N601) under the project name Estel; 57m Lion Spirit (N561) designed by Espen Øino and Reymond Langton with diesel-electric/azimuthing pod propulsion; and a 36m explorer vessel (N321) that began as a joint venture under the short-lived Drettmann Sunrise Group. During TSR’s visit, Guillaume announced they also have a deal for a 42m, aluminium, semi-displacement yacht (N421).
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The Superyacht R EPORT
CEO INTERVIEW: Guillaume Roché
Sunrise Yachts
PHOTO: JUSTIN RATCLIFFE
TO WHAT EXTENT IS IRIMARI AN ADVANCE ON HER PREDECESSORS? Atomic was very well received, but she was only our second boat. This is a third-generation yacht and when we deliver the 57m [N561] you will see further advances. Construction work on Atomic was stopped and started again, and then we were faced with a short delivery time, so she wasn’t finished throughout to the level we would have liked. We have a skilled but young workforce at Sunrise, so we prefer to leave as little as possible to interpretation on the shop floor. Having said that, on Irimari the effects of our QA/QC validation processes are plain to see and we are making a big effort to streamline and standardise these procedures further. SUNRISE HAS ASPIRED TO NORTHERN EUROPEAN QUALITY FROM THE BEGINNING; DOES THE FACT THAT YOU’RE BUILDING IN TURKEY STILL COUNT AGAINST YOU? I believe we fill a niche between northern and southern Europe that I call ‘Middle European’. We build to a quality that stands out, but at an attractive price; we might be half the price of northern Europe, but we’re certainly not half the quality. At the moment people come to Turkey to save money, not quality, so we’re restricted in what we can achieve by the budget. The other thing is that clients negotiate a Turkish price and then expect us to build a yacht like Feadship or Lürssen do. Well, hang on a minute, that’s not what you’re buying! So my aim is to be able to sell our yachts at a price that allows us to add those elements that make all the difference. One of our biggest issues, for example, is the budget for the interior. Ulutas do an excellent job, but I would love to be able to work with Struik & Hamerslag or Oldenburger. HOW DO YOU COMPARE FROM A TECHNICAL AND ENGINEERING PERSPECTIVE? Part of the Sunrise philosophy is that we offer services that others don’t, and that includes the hands-on managers and experienced mariners that work in the company. My brother and I are professional captains and we see ideas that may be fine in theory, but might not be good at sea. We’ve structured the company to be able to contribute as much as we can by using this operational experience. We’re not just pen pushers; we have a very good understanding of technical issues and that has allowed us to achieve a certain reputation for engineering quality in just eight years – something the Dutch have built up over a 100 years. WHAT IS THE NEXT STEP FOR SUNRISE YACHTS? Right now we’re at a crossroads. With this boat in Monaco I would consider Phase One of Sunrise achieved. The question now is our future direction: either we keep on building boats and one day people will consider us as Sunrise rather than as a Turkish yard, or we can do as we’ve done before and be brazen and kick-start the process and go for Phase Two. To bring Sunrise to the next level we need a certain amount of money to invest in infrastructure, help finance the clients and start building hulls on spec. WHERE WILL THAT MONEY COME FROM? We can’t just be boat builders in the current market; we also have to be creative in marketing and financing. So we have a Londonbased third party looking to join the company who will bring financial instruments that were previously lacking. The idea is to offer investors the
“We can’t just be boat builders in the current market; we also have to be creative in marketing and financing.” opportunity of investing in partial builds rather than the whole build. The model would be attractive for investors, who would see a return within 12 months of around 22 per cent, and for the buyer as it would reduce the delivery time as we could start building on spec. The other aspect is that we want to give clients peace of mind to build with us. So we’ve secured a financing structure with a major bank, also based in London, whereby we can accept a client’s letter of credit (LoC). The client would pay 20 per cent up front into an interest-bearing Escrow account and the remaining 80 per cent would be by LoC. It provides security for the client, because we basically don’t get paid until delivery. Another advantage is that the LoC represents money he’s not using to finance construction, so he can use that money to make money. WITH FOUR CONSTRUCTION SHEDS FULL, ARE THERE PLANS TO EXPAND FURTHER? We’re hoping to be able to make an announcement early next year of a merger with another yard in the US, to have a foot on both sides of the Atlantic. If yachting is going to expand in the next five years, it’s going to come from America [as much as 60 per cent of the yard’s new build enquiries come from the Americas, Ed.]. We think we’ve found a solution to accommodate the Jones Act and have a commercial yacht registered in the US [the Merchant Marine Act of 1920, also known as the Jones Act, restricts the use of foreign built and owned yachts in US waters for pleasure and non-commercial purposes, Ed.]. Alternatively, we can we set up a yard ourselves, and we’ve been offered red-carpet access to certain facilities.
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The Superyacht R EPORT
Sunrise Yachts
PHOTO: JUSTIN RATCLIFFE
GUILLAUME ROCHÉ (RIGHT) AND FABIEN ROCHÉ, COO.
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Although Fabien joined Sunrise after construction had started on Irimari, his operational experience aboard yachts such as M/Y Indian Empress and S/Y Felicita West is likely to impact on future production at the yard. He is against dumbwaiters, for example, which he claims are rarely used except for storing dirty dishes. The same is true of direct access from the main salon to the beach club, which is only used when at anchor. His brother is also looking to introduce changes. Guillaume set up Sunrise with business partner and principal investor Herbert Baum because he was dissatisfied with how large boats are built and boatyards are run. Among other initiatives (see interview) he also wants to make yacht ownership a more attractive proposition by rationalising what is essentially an irrational decision. Total Cost of Ownership (TCO) is a financial estimate intended to allow buyers to determine the direct and indirect costs of a product or system. When incorporated into a financial benefit analysis, it provides a cost basis for determining the total economic value of an investment.
“In the context of building a yacht that means putting all the associated costs on the table – from when you buy the yacht to when you sell it,” said Guillaume. “We’re not saying you won’t lose money, because that depends on the world economy and other factors, but it can be as rational as buying a house. Let’s face it, we usually pay to have fun and I don’t know of any leisure activity where you come out having made money from it.” g
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