Respect to the seas and its people

AUGUSTEA GROUP I PROFILE

Respect to the SEASand its

Following two years of a global pandemic that has pushed companies to look for internal improvements, Augustea Group, a major player in the shipping industry, has used the time wisely to look to the future. “We have invested in new fleet management systems and have reviewed the business, in order to be ready for the new market conditions,” outlined Francesco Amenta, Augustea’s Technical Manager. Article by Romana Moares.

Augustea has not stood still over the last two years – the company has opened a new branch in Athens to be closer to one of its major customers, and invested in digitisation to improve vessel management. Preparations to meet new environmental regulations coming into force in 2023 are also in full swing.

“Ship owners are getting ready to implement the upgrade to meet the regulation and we are proceeding with a mix of solutions now available on the market. We will start with the onboard installation of new devices in our dry docks this year, so that the vessels are emissions compliant by 2023,” said Francesco Amenta, Augustea’s Technical Manager.

In terms of internal business improvements, the company has invested in a new RPS monitoring system to provide better and more efficient fleet management, and has acquired new software to improve vessel navigation and reporting in line with the new regulations.

“We will put all of our vessels onto this new platform with the objective of securing route optimisation,” said Mr Amenta. “The software enables us to track a vessel exactly and optimise its route depending on weather and other factors. This will result in fuel consumption savings and also ease the work load of crews, as the reporting system is fully automated.”

He added: “Another change is that, given market developments during the Covid years, we have started to explore the possibility of employing crews of different nationalities, specifically Bulgarian.”

Seven decades of growth

Augustea is a company with an impressive history. Established in 1955 by Salvatore Cafiero in Naples, Italy, it has developed into a provider of sea transportation services, primarily dry bulk shipping, deep sea towing services, and transportation with oceanic barges.

Under the control of the Cafiero-Zagari families, Augustea Group has grown to become a leading and reputable player in the shipping industry, with offices and operating branches in Naples and Augusta in Italy, in addition to London, Singapore, Malta, Buenos Aires, the Philippines and Colombia.

The technical and management expertise accumulated over the years has allowed Augustea to diversify into related markets. The fully-owned subsidiary Augustea Tecnoservice Srl offers a wide array of services for the shipping industry, providing assistance and technical advice, maintenance and repair services to both the market and the operating division within the Augustea Group.

In 2013, Augustea moved into another segment, when it opened a manning agency in the Philippines. Augustea Ship Manning Philippines Inc. incorporated in Manila, provides both ship manning and crew management services, such as the recruitment, selection and deployment of Filipino crew members as well as continuous crew training.

Several years ago, Augustea moved its assets to Malta, which has become an important business base. In 2018, the company entered into an agreement with several other shipping companies there to establish an entity running approximately 30 vessels, thus combining its dry bulk owned fleets under the Star Bulk company name, Following the move, Augustea became a major industrial shareholder of Star Bulk together with the Pappas family, the main shareholder.

AUGUSTEA GROUP I PROFILE

Turbulent waters

Francesco Amenta admitted that the last two years have brought challenges but also opportunities.

“It is no secret that as freight rates increased substantially as a result of Covid restrictions, our financial performance has improved significantly. As a trusted partner, we have sought to provide the same reliable service as before.

“However, Covid-19 did give us a very hard time, in terms of both cost and personnel. Bearing in mind that lube oil consumption accounts for 20% of the daily cost of running a vessel, the greater than 20% price increase has been a major issue.”

However, the primary concern has been the crew. “At the moment, 95% of our crew is Filipino. The Philippines has been one of the countries with strict Covid rules, but has a low vaccination rate due to limited vaccine availability. The country has been amongst the last ones to provide vaccines for seafarers. The fact that it is very difficult to get vaccinated in Manila, with the country’s strict rules in terms of tests and quarantines, means that the impact on the business has been huge.”

Mr Amenta pointed out the vaccination rate on board Augustea’s vessels is now in excess of 60%, thanks to the United States which provides free vaccination to crews on ships calling at its shores. This has been greatly appreciated, as many ports do not accept vessels without a crew’s vaccination: China and the United Arab Emirates are reportedly among countries that have started to require ships to be manned by vaccinated seafarers before entering their countries.

The new future

The issue was further compounded by the ongoing crewing crisis, with hundreds of thousands of seafarers stranded at sea due to travel restrictions across the globe.

“This has really been an unprecedented situation and the IMO did very little to help. The states of the world were not able to find a common rule, and the lack of care for crew, specifically in some countries, has been quite simply unacceptable,” commented Mr Amenta.

Speaking about the current market conditions, he remains realistic:

“Although there seem to be some signs of better times, the improvement will be slow and is unlikely to happen in the near future. We need to stay firm and focus on consolidating our activities. While pre-Covid you would think twice, now you would think ten times before making any investment.”

Looking further ahead, he revealed there are some new lines of business the company is contemplating, such as offshore wind farms, for which some entities are already building sophisticated vessels.

“This will be the next potential business for everybody. The market will evolve towards environmentally friendly technology, with energy-saving devices and more efficient, greener vessels being designed and built.”

Mr Amenta concluded: “But for the time being, Augustea is set to consolidate its business, to ensure we are in a better position for the new future.” n