The Superyacht Refit Report

A REPORT WORTH READING

Lürssen, the new-build and refit giant, adds commercial conversions to its porfolio

The introduction of hybrid technology on 29-year-old sailing yacht Juliet

Seawolf 3.0: the refit of one of the fleet’s most iconic classic yachts

SPONSORED BY

The trend behind the purchase of US refit yards by huge, publicly traded corporations

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ACCENTUATING THE POSITIVES

BY MAX STOTT

It was once said that the job of an editor is to separate the wheat from the chaff and then print the chaff. It’s something of an old-school journalism saying, but that doesn’t necessarily mean it isn’t still relevant today. We’ve already seen that the majority of journalists operating in the current media landscape are more than happy to adopt this mantra, even when they are reporting on something as complex as the superyacht industry.

That said, we trust that the majority of our readership is well aware of all the ‘chaff’ in the superyacht industry that gets watered down and regurgitated through the yachting news cycle every year. I, for one, feel mentally bruised and battered from having to read so much surface-level journalism about the negative aspects of the industry.

If there’s is one thing our newsdesk doesn’t do, it’s follow in the footsteps of predictable narratives. So feel free to consider this issue to be a direct counterpunch to all the clickbait we’ve had to endure over the past 12 months.

We want to really focus on the positive trends in the industry without necessarily ‘championing’ or ‘promoting’ anyone in particular, and to highlight some of the impressive strides being made in refit, one of the most vital sectors of the market.

The overarching aim of this issue has been to uncover and broadcast technical insight from people at the coal face; that is those who really know what they are talking about. We figured

that there really was no point asking people who spend most of their time in air-conditioned offices pie-in-the-sky questions about future outcomes that probably won’t be implemented any time soon.

That’s why this issue is absolutely choc-full of the most fascinating refit case studies that have been completed in recent years. In last year’s Refit Report, there was a lot of talk about the lifecycle concept and the need to upgrade the existing fleet to meet modern standards. It’s been encouraging to see the work that has been done since then and it’s worthwhile noting that sometimes words are indeed backed up by action.

The efforts that are being made by the shipyards mentioned in this report should be recognised not only for their economic and aesthetic values but also for their environmental and social impact.

The breadth and depth of the refit sector is massively underrepresented. At Lürssen, during the busy periods, there were around 150 people at a time working on the refit of 110m M/Y Kaos. At Huisfit, the conversion of 62m S/Y Athos regularly employed up to 50 skilled workers for more than 12 months. At Oceanco, some of the original team who took part in the building of 63m M/Y Lucky Lady more than 20 years ago were able to revisit an old project and turn it into a futureproof vessel.

These little nuggets of information alone prove that there’s room to paint a truer, more inspiring picture of the superyacht industry as a whole.

MS

Efforts made by shipyards on stellar refit projects should be recognised not only for their aesthetic values, but also for their environmental and social impact, says Max Stott.

ph: SP & Loredana Celano

The HOUSE of YACHTING.

Guest column

Continuity, stability … and a healthy dose of reality 8 Daniel Küpfer, chair of the MYBA Yacht Management Committee, explains why providing clarity to owners can help them consider refit as a journey worth taking.

Opinion

We’re starkly under the world’s spotlight 10 The industry urgently needs a stronger mandate for sustainable growth, says Jack Hogan.

Why the human element matters 12 There’s a serious lack of appreciation for all workers and craftsmen in the superyacht industry, says Max Stott.

Features

The refit conundrum: stick or twist? 15 Tanguy Ducros, chief commercial officer at Monaco Marine, explains that without access to full-service refit facilities owners face addiitonal costs in the event of errors.

Behind the scenes at Orams Marine 21 We take a tour of the yacht facility in downtown Auckland as it is in the midst of a substantial expansion.

When ‘praying for the best’ is not always best 25 Xavier Ex, business unit manager yachting at EXMAR Yachting, says upfront costs for refit surveys are offset in the long run for their clients.

The art of the commercial conversion 30 Lürssen adds commercial conversions to its portfolio. How does a new-build and refit giant see this side of the market?

Features

Revamped Juliet at the vanguard of modern refit 38 Stefan Coronel, refit manager at Huisfit, explains the process behind the introduction of hybrid technology on a 29-year-old sailing yacht.

Huisfit transforms 62-metre S/Y Athos 44 Her owner had chartered the vessel for a year –then completely rebuilt it.

How Oceanco restored the charms of Lucky Lady 53 The Dutch yacht builder gutted then put back together the 20-year-old vessel after she returned to her original creators.

Photo: Guy Fleury

Photo: Huisfit

Features

Reports

Turning back the tide of time 80 The 51-metre explorer-yacht project that came to fruition in just a matter of months.

Going, going, gone! 86 Marinas and refit yards in America are being bought by massive, publicly traded corporations. We look at the factors behind this trend.

GYG Ltd ‘stronger than ever’ despite leaving AIM 92 Remy Millott, CEO of GYG, says the decision to de-list from the Alternative Investment Market of the London Stock Exchange was the right one for the business.

Are we finally realising that Eastern Promise? 96 Adriatic42’s new specialist yard in Montenegro will be a “beacon of opportunity“ for the country and may untap the potential of a separate yacht cruising and refit cycle.

Dubai deal enhances MB92 portfolio 101 The refit experts have built a 4,300-tonne shiplift in La Ciotat as well as completed a deal to expand into the Middle East.

The rebirth of a past master 64 ICON Yachts’ latest conversion, Project MASTER, is being transformed from a rescue and support vessel into a highly capable world cruiser.

The new voyage of discovery 104 Genoa, the birthplace of Christopher Columbus, has a long history with the sea which now has a new chapter ... the one about the superyacht hub.

STP on standby for expansion go-ahead 111 Joan Rosselló, general manager of STP Shipyard Palma, speaks about the potential for expansion for this company and the positive impact this would have on the Balearic economy.

Taking the plunge for a king-size … 71 Lürssen is adding to its rich 147-year-old history of new builds by gaining a reputation for refitting yachts up to well over 100 metres.

Seawolf 3.0: The reincarnation of an icon 56 The fascinating story behind the repurposing of the former tug vessel and expedition superyacht.

Photo: Guy Fleury

Photo: Klaus Jordan

The Superyacht Report

Q4/2022

For 30 years The Superyacht Report has prided itself on being the superyacht market’s most reliable source of data, information, analysis and expert commentary. Our team of analysts, journalists and external contributors remains unrivalled and we firmly believe that we are the only legitimate source of objective and honest reportage. As the industry continues to grow and evolve, we are forthright in our determination to continue being the market’s most profound business-critical source of information.

Front cover image: Octopus in Lürssen refit dock.

Editor-In-Chief Martin H. Redmayne martin@thesuperyachtgroup.com

Editor Jack Hogan jackh@thesuperyachtgroup.com

Deputy Editor Max Stott maxs@thesuperyachtgroup.com

News Reporter Simone Bateson simone@thesuperyachtgroup.com

Contributing Editor Bryony McCabe bryony@thesuperyachtgroup.com

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Guest Column with Daniel Küpfer

Continuity, stability … and a healthy dose of reality

Superyachts undergo a wide variety of refit activities, from regular Class inspections to complete restorations that may take several years. Regardless of the scale of the project, a refit is a significant undertaking, and its success depends on several parties working together harmoniously.

Many shipyards have the necessary skills and resources to carry out refits. The captain and his management team of the yacht have an in-depth knowledge of the vessel they are in control of, making their contribution indispensable. Nevertheless, more is needed to ensure a refit project is completed successfully.

The captain and crew require support as, very often, a refit period follows an active charter or cruising season with the owner. The crew need time to recover before the next season, and captains need a partner to discuss the yacht’s technical requirements and how to turn the owner’s wishes into reality, while also adhering to strict budget control.

The role of yacht management is to put in place the right structure so all parties can deliver their best, in the interest of the owner. Although the involvement

of captains and their teams is crucial, it’s imperative they are also given the opportunity to recover before the next season.

The human factor is often overlooked in the sustainability discussions that are currently taking place within our industry but this lies at the heart of most matters, including refits. Crew suffering from exhaustion won’t be able to perform when called upon, and the ensuing turnover will contribute to a longer worklist when the yacht goes for its next refit after a couple of seasons. Therefore, it’s important that they have a competent partner at their side who can offer expert guidance, lighten the load and relieve the stress.

Yacht managers bring to the table their experience with other yachts at other shipyards, and sometimes even at the same yard. As the wheel doesn’t always have to be reinvented, managers can make decisions faster and often more competently due to the fleet knowledge available to them. They are able to secure better fleet discounts and, among other things, should be able to negotiate warranty works with shipyards due to their experience with other yachts, which can sometimes be from the same builder.

For owners, a refit can be a frustrating experience. The reward seems small, costs are uncertain and, due to the technical complexity of such projects, can easily exceed those anticipated at the outset. With captains and crew often under pressure to keep running and maintenance costs low, as well as minimising downtime, the outside view of a broker and yacht manager will help to give the owner a more realistic estimate as far as the time required and money to be spent are concerned.

The broker’s role is to understand, provide clarity to the owner, smooth the relationship between the parties involved and offer valuable insight about the project from a commercial and customer experience perspective. The ultimate objective is to help the owner believe in the project and to consider it as a journey worth taking.

At MYBA, we encourage brokers to guide their owners in large refit projects from a commercial perspective. This includes a sharp analysis of return of investment of a refit, the yacht’s lifetime considerations and the possible resale value of the yacht, as the day of sale will inevitably arrive. DK

Daniel Küpfer, chair of the MYBA Yacht Management Committee, explains the role of experienced brokers and yacht managers in refit projects.

with Jack Hogan

WE’RE STARKLY UNDER THE WORLD’S SPOTLIGHT

The industry has become the target of unprecedented negative public opinion, and it urgently needs a stronger mandate for sustainable growth, says Jack Hogan.

The peaceful protest and demonstration at this year’s The Superyacht Forum from a group affiliated with the Extinction Rebellion movement carried a simple message – there’s no future for the superyacht industry. The full transcript can be read on SuperyachtNews. This demonstration, along with a smaller protest at Port Vauban during the Monaco Yacht Show in September, should be taken seriously. Laughed off or disregarded by some, they are infallible indicators of simmering negative public opinion towards superyachts and what they represent.

Catalysed by the conflict in Ukraine and the focus on the assets of sanctioned Russian oligarchs, the attention of a diverse set of media channels has been intensifying. The image we have reflected back has been incomplete, crass and mostly true.

Our humble-by-comparison newsdesk has been inundated with calls from top journalists from across the world in 2022. I’m sure the same can be said for my yachting media colleagues. Instead of superyacht stories being sporadic pieces of celebrity-affiliated filler for the inside pages, editors have started to commission full features from skilled journalists with time and resources.

The voluminous ‘The Haves and the Have-Yachts’, by The New Yorker’s Evan Osnos, was one such piece. Sweeping and largely accurate, it inflated the image of hedonistic excesses and outof-touch industry heads. Similar pieces from the BBC, FT and Reuters have started lifting up the rug and having a peak underneath. We’ve been illprepared for the scrutiny.

At the opposite end of the spectrum, the perennially popular TV show Below Deck feeds a caricatured image of the industry to a wide audience. The result, as evidenced by a simple Google trends analysis, is that superyachts have never been more prominent in the public discourse.

Against the gloomy backdrop of the war in Ukraine, economic downturn, an unfolding energy crisis in Europe and a dire prediction from COP27, the already precarious position of justifying the existence of these superyachts and the industry that they support will become harder.

These yachts are built and operate, by and large, within liberal democracies. If their construction and operation become a political issue, the position of these shipyards, marinas and supporting

networks, no matter how storied, may become untenable.

A point made by Extinction Rebellion at The Forum – that nobody needs a superyacht – is one that has been lightheartedly repeated in the industry echo chamber for decades. The fact that we are in on the joke is now irrelevant.

We sit in a privileged position of influencing the world’s wealthiest individuals. Zero-carbon yachts, with diverse crews and conscientious owners championing scientific agendas, will survive the court of public opinion, but they are still some time away. The most pressing issue is what to do with the existing fleet; much of this weight of responsibility rests with the refit sector.

The Forum and the protests were a wake-up call. The increased attention is here, the protests are likely to increase in scale and intensity, whether we’re ready or not. The protests will return in 2023. The superyacht industry needs a stronger mandate in the face of such criticism to continue to grow sustainably. JH

with Max Stott

WHY THE HUMAN ELEMENT MATTERS

The physical toll of building, maintaining and operating yachts under current conditions is just not sustainable, says Max Stott.

This summer has seen an unusual number of fires on superyachts, causing them to sink or run aground. The overwhelming majority of stakeholders are pointing towards lithium batteries as being the source of many of these incidents, even when there’s no hard evidence to back this up.

Lithium batteries are a problem, and they do sometimes cause fires, but in the absence of official reports, they are also being used as an excuse to avoid taking a step back and looking at the bigger picture. There’s a human element to the superyacht industry that has long been disregarded, and it wouldn’t be wildly inappropriate to suggest that this is consequently having some effect on the condition of the fleet.

I’m not saying stakeholders are to blame, but I do think more consideration should be given to the people who are literally working tooth and nail to keep the industry afloat. The number one justification for the very existence of these giant hunks of floating machinery is that they provide a lot of costly work for a lot of people who will gladly make a career out of cleaning bilges, applying antifoul and fairing surfaces. The market is tightening daily and you could argue that this increase in pressure on the industry’s already struggling workforce is starting to cause some cracks in the system.

On the crew side, you have an increase in the number of charters per season and an increase in the number of superyachts joining the fleet, but there’s not enough

quality crew to sustain these increases. Superyacht crews are trained to pass exams, not to maintain superyachts. They often work 18-hour days, live in tiny cabins and are under a lot of pressure to meet the owner’s demands. Many yachts are a breeding ground for mistakes and miscalculations.

Following on from the global pandemic, the world is now staring down the barrel of an economic recession – another event that will hit the poorest the hardest. Statistics have revealed that hospitality workers are struggling more with mentalhealth problems now than they were during the height of the pandemic. A new survey by Censuswide and hospitality marketing firm Flipdish reveals that 80 per cent of hospitality staff had experienced mental-health issues as a result of their work, with antisocial hours and performance pressure cited as the cause. It has already been proven that this statistic is being reflected in the superyacht industry. [See Jack Hogan’s article ‘Quay Crew and MHSS publish stark crew mental health report’ on Superyacht News.]

If a refit project is condensed while it’s in a shipyard, and the vessel is having to go straight out for a charter, then it’s the crew who will have to deal with any issue out at sea, but that doesn’t necessarily mean any issue is their fault. People cause accidents, but when incidents occur there’s often a long line of those who share the blame. The industry, unfortunately, tends to prefer short-term profit to pausing and making calculated

moves that consider the long-term effects.

On the shoreside, workers in shipyards are being pushed to make compromises and find solutions for ludicrous designs that favour extravagance over seaworthiness and functionality. This problem isn’t exclusive to yachting. Renowned car companies such as Chevrolet have had to recall vehicles due to the risk of their high-voltage battery packs catching fire. The bid to become sleeker, slimmer and higher performing pushes manufacturers to come up with more compact designs that ultimately have a higher risk of causing an accident.

There’s a serious lack of appreciation and recognition for all the workers and craftsmen in the superyacht industry, especially towards junior crew and blue-collar workers at the coalface. They are the ones who are bearing the brunt, working ridiculously long hours and putting themselves at risk while trying to meet tight deadlines. These are the people who are paying for the lack of foresight from those above them.

One dreads to think how many millions of pounds worth of assets have gone up in smoke or sunk to the bottom of the ocean, or how much oil and fuel have seeped into the ecosystem over the past couple of months. But when we see accidents proliferating, there should be more consideration for the human element of the industry and the lives it is putting at risk. The boundaries have been pushed far enough. MS

Seamless worklist management for yachting professionals

Why the superyacht industry is turning to Pinpoint Works for refit and maintenance planning.

There’s no doubt the superyacht industry is booming, and during this growth period of the global fleet, demands on yacht service, maintenance and refit resources are increasing.

To adapt, it will be imperative for the industry to revisit and revise practical working processes. This shift will be particularly important for companies reluctant to swap to more modern, efficient practices – ‘adapt or die’, as the saying goes.

With most yachts undergoing a shipyard maintenance period annually or biannually, substantial time and money are dedicated to the upkeep and preventative maintenance in their lifetime. Terms such as ‘lifecycle management’ –how to optimise each stage of a yacht’s life – will be increasingly heard in conversations as the industry searches for more pragmatic yacht-management practices.

Given the extensive material and personnel resource allocation for these projects, Pinpoint Works’ founder James Stockdale sums it up: “Seamless worklist management is critical to successful communication and collaboration between specialist teams. It’s become an essential commodity of the superyacht industry.”

So how can processes be improved to facilitate effective communication and collaboration during these refits and shipyard periods to optimise both the asset and our time?

Old ways of working with notepads, Excel sheets and email chains are still regularly being used because of a reluctance to move to more advanced systems. But, in this digital age, these methods are outdated, unprofessional and costly due to their inherent inefficiencies. Pinpoint Works was created to challenge these methods by improving communication and

organisation of tasks through a simple and user-friendly platform – a true upgrade in worklist management for the yachting industry.

The chief officer on board 75m M/Y Huntress says of his experience with Pinpoint Works: “Pinpoint has been an absolute game-changer on board Huntress, and I believe it has revolutionised the yachting industry in terms of monitoring shipyard works, general ships’ maintenance and helping departments communicate efficiently and effectively on board.”

By using Pinpoint Works to define a detailed scope of works before a refit or general yard period, stakeholders can document, facilitate and coordinate the required work using a vessel’s GA (general arrangement), creating a realtime, interactive worklist. One simple platform replaces the historical ways of working.

Adding photos, videos and documents helps to clarify the detail with a precise location of works on the yacht’s unique GA, making it clear to contractors where they’re needed when on board.

This scope of work can be used to source reliable cost comparisons

between shipyards, allowing for better budgeting. Keeping communication open and transparent means crew, management, owners, contractors and project managers can work together more efficiently.

Pinpoint Works has been adopted and implemented by more than 350 superyachts, hundreds of smaller pleasure yachts and dozens of companies within the superyacht industry, including some of the largest, most prestigious shipyards in the world.

There are numerous benefits of having one place where everyone can see up-to-date information in real time. However, the time/cost savings based on improved communication and fast implementation make using Pinpoint Works a worthy investment for captains, operational crew and project managers.

If you’re not already leveraging an intuitive digital solution to project manage your refits and shipyard periods, it’s time to get started.

Pinpoint Works uses the latest technology in web and mobile apps and can be used during all lifecycles of a yacht: build, warranty, operation, refit, repaint and surveys.

The refit conundrum: stick or twist?

Ducros, chief commercial officer at Monaco Marine, reflects on factors of differentiation within the refit market and explains how a realignment of UHNW rhetoric may paint a clearer picture.

BY GUEST AUTHOR

‘Refit’ as a term is often bandied around as a catch-all phrase used to describe the process of making amendments, updates or significant changes to a superyacht. However, all refits are different and not all businesses operate the same model.

Tanguy Ducros, CCO of Monaco Marine, one of the industry’s leading refit specialists, has his own views on why one particular model is superior to others, and also why owning a superyacht is not necessarily the be-all and end-all of the boating experience.

“You have to look at the refit market from a number of different angles,” says Ducros. “There are two typical approaches in terms of refit. You have the full-service refit facility, through which infrastructure, project managers and subcontractors are all provided and managed, as well as being liable for time, quality and cost. Alternatively, you have the model through which a client rents space in a shipyard and bears far greater responsibility for the project. Monaco Marine is the former. After this distinction, there is another axis of positioning that relates to whether or not the facility provides only refit or both refit and new-build services.”

When considering the first distinction between a full-service shipyard and a facility for hire, Ducros is quick to point out that the latter model can be effective in the right location, such as STP Palma, while making it clear that he believes this model to be generally inferior. With the greater responsibility taken on by full-service refit yards, guarantees related to time, quality and cost are more realistic.

“I don’t think that I’m a professional captain but in the same vein I don’t think captains are professional project managers and, as such, they should not necessarily be leading refits. It’s a different job, simple as that,” adds Ducros. “When I see a captain, for instance, going into a shipyard to supervise the work themselves, they have excellent technical and operational knowledge but it is not their core business. What then are the advantages of using a full-service shipyard? I would simply say that there are no disadvantages.”

Ducros explains that without the additional amenities provided by fullservice refit facilities, owners are leaving themselves open to additional costs in the event of errors. With the full-service model, any additional costs due to an

Tanguy

A report on the benefits of fullservice yards

“The difference between the refit specialists and the new-build shipyards that do refit is that we are not trying to sell the owner another boat, simple.”

error on the part of the yard will have to be met by the yard in some instances. This is not the case where the ownership has total control of a build from start to finish. Indeed, Ducros believes that while the initial cost of using a fullservice shipyard may be higher (if only marginally), cost savings will be made over the medium and long term.

“I am still trying to rack my brain and understand why, when an owner has a superyacht worth €15 to €30 million, that they wouldn’t go to a full-service shipyard. It makes absolutely no sense from my perspective,” says Ducros. “Only when location and capacity come into play can I understand perhaps taking the riskier approach, or in the event that the works are minor and easily managed by even the most rudimentary facilities.”

At this juncture it’s important to make the distinction between ‘maintenance’ and ‘refit’. Over the years, the two terms have been, at times, used interchangeably or at least with a grey area between them. However, Ducros is clear about the differences between the two. Maintenance, he explains, keeps the boat like for like; it only fixes or updates existing systems, including paintwork. Refit, by contrast, denotes significant changes to the superyacht, whether that be new systems, extensions, layout changes, interior changes and all other types of works that go beyond merely fixing or maintaining. Maintenance, aside from paintwork, can be carried out by facilities the world over while refit, according to Ducros, should be left to the specialists.

“The difference between the refit specialists and the new-build shipyards that do refit is that we are not trying to sell the owner another boat, simple,” says Ducros. “The new-build/refit model has been designed to encourage owners to buy new superyachts and, in this regard, I believe there is a conflict of interest. The best service is only on offer until a new superyacht is off the cards.”

Competition between refit-only ship-

yards and those that do both new build and refit is entirely understandable. This competition, until relatively recently, was non-existent because the possibilities of refit were little understood and one can appreciate the grievance on the part of some specialist yards in so far as they worked tirelessly to make refit a legitimate alternative to new build and show the market what the possibilities of refit are, at which point some new-build yards decided to step into the market.

Grievances aside, it must be said that focusing on refit as well as new build has proved to be successful for some shipyards. At the very least, this transition into a more competitive market is testament to the evolution of the refit market over the past 10 years.

“The refit market is almost unrecognisable from where it was 10 years ago. In people’s minds they had a fixed and unshakable idea of maintenance, but today we are seeing so many more high-value refits with significant changes,” explains Ducros. “The vessels can be completely changed and what the client is left with is almost an entirely new boat.

“This transition is inextricably tied to the professionalisation of the refit market. Quite simply, 10 years ago the contractors were not at the level that they are today, and the technology and systems to manage projects was night and day from where it is now. The old way of thinking concluded that it was just easier to just build a new boat. That is no longer considered to be the case.”

As ever, the discussion around how to get the most out of a refit persists, especially where pre-planning, yard and team selection are concerned. However, the arguments can be neatly summarised by that well-used adage ‘fail to prepare, prepare to fail’. This will continue to be the case until owners, captains and any other engaged stakeholders hear the message loud and clear. In fact, with more high-quality work expected in

shorter periods of time, this admittedly cheesy expression is becoming even more important for the superyacht community.

When speaking about the levels of preparedness within the refit industry, and indeed the wider superyacht market, Ducros points to an all too often overlooked fact about the industry – it’s underfunded. “If the industry were to be perfect, then significantly higher degrees of investment would be needed at all stages. The proper investment in refit preparation, for instance, to ensure that absolutely nothing unexpected would be found during the process itself, would be many times higher than it is now.

“Let me put the problem in context. The R&D that goes into a new production superyacht from one of the major brands is around €100,000. By contrast, the R&D investment for only the lights in the newest Ferrari was around €50 million. This number stretches into the billions when you start looking at the aviation market. If you put the same level of investment from these industries into superyachts, you could add a zero to the price of every boat, but the market is not elastic enough to support it. Thus, while the assets are complex and already high in value, we are not in an R&D-friendly environment.”

While the superyacht world may continue to struggle to meet the levels of R&D required to perfect the model, Ducros believes that, at times, the superyacht industry is a little harsh on itself. Rightly or wrongly, the industry often looks at itself in isolation. There are, of course, a variety of valid reasons for this, whether it’s a size boundary for the sake of analysis or a qualitative boundary that ensures distinctions can be drawn between the best products and those that aren’t so super.

However, while we often repeat the statistic that only around two per cent of UHNWIs own superyachts, are we being a little too ‘woe is me’ with regards to the broader view of yachting and boating,

Tanguy Ducros.

“The refit market is almost unrecognisable from where it was 10 years ago ... The vessels can be completely changed and what the client is left with is almost an entirely new boat.”

given that superyachts are a niche within this much-loved pastime?

“Superyachts are a small but incredible part of a much wider market. It takes a particular type of client to want a superyacht and, contrary to what some might think, the cost is not the only boundary,” says Ducros. “In our marina, we have yachts that are below 30 metres and owned by billionaires simply because they do not want crew.

“They want the experience of being on board to be completely private and family-orientated and, furthermore, the owners don’t want to feel like they are the boss while they are on their boat because it is downtime away from their commercial interests. However, if a UHNWI or billionaire chooses not to buy a superyacht, people often assume that this means they don’t like yachting or boating full stop, which is an oversimplification.”

Ducros lays out a hypothetical situation. If a wealthy individual doesn’t own a Ferrari, it doesn’t mean that they don’t like cars. Indeed, this scenario could be stretched even further, with the wealthy person in question owning a whole collection of cars.

“Superyachts carry a particular size, cost and status, but the utility of any boating experience is really in the emotional value that it carries, whether it’s a superyacht or a much smaller boat,” adds Ducros. “Perhaps when speaking with UHNWIs we should be less concerned about whether or not they

own a superyacht and more concerned with whether or not they own a boat. Whether they have a small boat on Lake Como or a yacht that doesn’t meet the dizzying dimensions of the superyacht fleet, I believe that the two per cent statistic provides an unbalanced view of UHNWI interests.”

There are reasons aplenty to own a superyacht but it’s undeniable that as far as assets go, superyachts can be one of the more complicated and costlier. For some people, it’s just too difficult to swallow the cost and complexity, but this doesn’t mean that they don’t choose to engage with the wider boating market in some shape or form, and the superyacht industry should take solace from that.

Yes, superyachts are expensive and complex, but the market is reaching a level of professionalism where many of the headaches associated with them are being mitigated or removed and, consequently, issues of cost are being resolved as fewer errors and poor decisions are made. Nevertheless, leading shipyards are available to provide high-quality refits where necessary.

Superyachting will never be for everyone – it’s a niche market, after all, that requires obscene levels of wealth to be a part of. However, as the difficulties are gradually reduced, it will be better placed than ever before to attract new ownership from the vast pools of individuals who already love boating in its various forms.

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“Perhaps when speaking with UHNWIs we should be less concerned about whether or not they own a superyacht and more concerned with whether or not they own a boat.”

Many facilities. One brain. LÜRSSEN refit.

Safe hands, synchronized by heart and brain: Whether your yacht was born a LÜRSSEN or not, you can trust on class-leading engineers, facilities and highly skilled craftsmen ready to refloat your dreams. Discover the difference.

BEHIND THE SCENES AT ORAMS MARINE

How the yacht facility in downtown Auckland has evolved to become a world-class refit centre.

BY JACK HOGAN

Westhaven Marina has come a long way in the 13 years since I was a student divemaster working there between lectures at university. Built in 1940, it’s now home to 1,800 recreational boats, four yacht clubs and a wide variety of marine businesses and hospitality. It also holds the title of the largest recreational marina in the Southern Hemisphere.

Central to its evolution has been Orams Marine. In the midst of a substantial expansion of the facilities, I caught up with Craig Park, Orams Marine’s managing director, to have a look around and see how far the Auckland refit sector has come.

Something that was hard not to notice upon my return to Auckland, and reiterated in many conversations with stakeholders, is the number of mid-range semi-production yachts that are based here and ostensibly owned by Kiwis. Park explains that this has kept his team active through the pandemic-affected years.

“We have stayed surprisingly busy,” says Park. “Realistically, we are targeting a return to a full refit season in the summer of 2023/24. The lack of clarity around the [maritime border restrictions] means that many yachts are already booked up for the next season, which is a shame.”

Park reiterates that there is still lingering frustration, from Kiwi-owned yachts as well as international ones, that despite intentions they are still unable to commit their yachts to Auckland due to these maritime border restrictions. Additionally, with the strong growth in the domestic market, and the expected return of international vessels, the region may reach capacity unless there is expansion.

In recognition of the growing demand, Orams Marine has installed a custom-built 85-metre, 820-tonne travel lift. Park explains that his initial projections for the use of the system were biweekly, but even accounting for the decrease in international visitors, it has seen three times that number of haul-outs. The slipway itself faces the large building site that will eventually house the new painting sheds and office complex, due for completion late this year or early 2023.

Walking around the Orams facility is reminiscent of visiting the large

specialist yards in Europe in terms of scope of works, and Park explains that Orams Marine has identified its niche. “We know that the meat of the market is 45 to 65 metres, so that is how we have set up our shipyard for haul-outs,” says Park. “We can take larger for in-water works but this size range represents a lot of the yachts that have the capabilities and desire to come down to New Zealand, as well as the size range of an increasing number of Kiwi-owned yachts.”

This increase in capacity means that Orams Marine has nearly tripled its large-yacht haul-out and workspace capacity, from four to 11 yachts. Offering a full refit service option, the inclusion of the two 60 x 40-metre painting sheds marks a significant growth

By international standards, Waitematā Harbour is relatively pristine. Not many waterways are as centrally located within a major metropolitan city where one can catch the legal limit of table fish a stone’s throw from the commercial port. Part of this is down to the environmental controls implemented in the area by the local marine industry.

The water-treatment system at Orams Marine is hard to miss. The massive purpose-built steel holding tanks are part of an in-built water treatment plant that separates and treats wastewater and stormwater collected across hardstand and covered work areas. The Orams

Orams Marine’s dry stack and tender storage.

Marine team worked with sustainability experts prior to the build’s start, with the goal of setting a new shipyard industry standard of discharge water quality, protecting Waitematā Harbour and New Zealand’s environment long term.

All too often in yards, the water run-off is an uncontrolled by-product of shipyard operations. To tackle this issue, Orams Marine designed the hardstand area to channel water into two separate sub-catchments. Wash water passes through a filtration system, with solid contaminants removed and sent to landfills and the water recycled for marina operations or public sewer. Residual contaminants from stormwater run-offs go through a two-stage treatment for suspended solids, and dissolved heavy metals are removed.

Orams Marine operates with a subcontractor model for its works. The Kiwi boat-building trade skills and intel-

lectual property were not lost when the likes of Alloy Yachts shut down in 2016 but instead were assimilated into residential and specialist companies. Park and others have stressed that this quality of craft is still readily available and reflected in the standard of works undertaken.

Park asserts that refit yards are highly reliant on word of mouth – and this is especially true for a yard that is offering full resprays of topsides. Not many owners and guests comment on the engine rebuild or the antifoul, but a section of orange peel that catches the light during an Antiguan sunset can be highly damaging to the reputation of the yard where it was painted.

“With a recent respray, we actually decided we were not happy with its finish, even after the captain had signed off on it,” says Park. “We want it to be perfect and are willing to take on the cost

to do it. It is a long way for boats to come down here, and we want to deliver the best possible service.”

Auckland, with my biases placed somewhat to one side, has a unique offering for refits. Yachts that spend the Southern Hemisphere winter cruising the Pacific can then head south for more warm weather during the summer refit season in New Zealand. The first cruises and sea trials take place among the many islands of the Hauraki Gulf, and the New Zealand cruising season extends through March and into April, allowing charters to still take place.

The South Pacific refit programme is a perfect counterbalance to the long Mediterranean winter and traditional refit schedule. Orams Marine has created a world-class facility in downtown Auckland, adding to the growth and maturation of the region’s superyacht infrastructure. JH

Jack Hogan (left) and Craig Park (right), watch the new travel lift hoist the 34-metre Royal Huisman Sassafras

When ‘praying for the best’ is not always best

Xavier Ex, business unit manager yachting at EXMAR Yachting, shares his thoughts on the need for the refit survey after completing a project in Seychelles.

BY JACK HOGAN

Forward planning and streamlining the overall refit process is a vital topic, and one discussed extensively at YARE and The Superyacht Captains Forum 2021. Efficient use of the yacht’s time and maximising the refit process are paramount, but the twin factors of time and cost seem to work against each other.

Busy yachts cannot commit early and, equally, busy yards may find that the quotation process and eventual inaccuracies leave the owner with a bad taste in the mouth after the refit is complete.

The loss of data accrued by a vessel over its lifecycle is a major sticking point – collecting and disseminating the data as needed, regardless of the crew changeovers, reflagging or change of ownership. This was also a key discussion point at the RINA breakaway session at The Superyacht Forum Live 2021.

Discerning who actually owns this data, and in what way it can be used, is an ongoing debate. Adding a refit survey is another dimension to the refit cycle, and it comes with its own considerations.

Having a refit survey is an obvious benefit for forward planning and efficiency. Commercial ships count every minute they are in dry dock as profits lost and this approach is at odds with

the frequently drawn-out ‘let’s pray for the best’ attitude that undermines some superyacht refit projects.

Professional yards have systems in place to make the most of the refit period, and it’s in their best interests to maximise the number of projects they can fit into a busy winter, but can yachts and management do more to streamline the process?

Xavier Ex, business unit manager yachting at EXMAR Yachting, says, “I met Rory Marshall [Superyacht Paint Consultant] at YARE in 2018, who then introduced me to Alex Fassbender from Optimar. There, we discussed how it would be interesting to develop a more hands-on approach from the owners and managers to the refit and painting process.”

Referring specifically his the most recent project, the 42m sailing yacht Douce France, where the paint was the priority, Ex further elaborates the rationale behind completing the survey. “Most shipyards will say ‘we have our painters’ [who are usually contractors], and by the time they are looking at the project, often the pricing has only been ballparked in advance and the extra costs start creeping in.”

The EXMAR Yachting representatives, along with Fassbender and a rep-

Xavier Ex, BU manager yachting, EXMAR Yachting.

Forward planning in the refit process

resentative from the NAUTECH Group Shipyard, flew out to meet the yacht in the Seychelles to conduct a three-day refit survey and pre-paint assessment.

“From a management perspective, we are always encouraging crew to supply work lists well in advance,” says Ex. “Of course, we understand that these are dynamic situations and the scope of work will evolve, but we try to look at the big picture and get the crew involved early. By then, having consultants on board who can also communicate directly with the shipyard helps create the most accurate scope of works, and we will then have the detailed report on file. In this case, the paintworks chapter of the report is 21 pages long.

“The ideal situation is when you build and commission the vessel for a client and manage it from day one, following up with all maintenance, Class and Flag surveys. This makes it very easy. All of the vessel’s history and data is available and your PMS system is up to date. But it does not often happen like that. The difficulty comes when there are

gaps in data from the lifecycle.” When these gaps appear is when Ex believes pre-refit surveys become even more important to avoid spiralling costs and time constraints.

One potential solution is to integrate third-party software as a conduit between the different stakeholders. The dreaded Excel spreadsheet elicits strong memories of never-ending tabs and easily misplaced decimal points. However, Ex still sees value in centralising and keeping things relatively traditional.

“An Excel spreadsheet is something universal, and it takes time to build properly. But having all the other contractors and supplies integrated creates an information hub. Shipyards will use their own software and will be unlikely to change because a vessel has something different. In order to avoid the different parties working off different systems, I don’t think having a thirdparty software in-between is the answer in the short to medium term.”

Fitting a refit survey into an already busy schedule is one barrier to entry;

the other is cost and whose responsibility it is to cover. The hypothesis that the vessel will save €75,000 on a refit versus the €15,000 that the survey will cost is an oversimplification. The reality is that, as Ex explains, in all likelihood the quote may actually match the estimation. The differentiation is that the scope is unlikely to grow and the time frame can be communicated with relative assuredness.

The cost upfront is significant, as Ex explains. “Including travel, we spent a full week on this survey, plus the time the crew spent showing us around and providing information. You do need to invest time and, of course, who’s going to pay for that? That depends on your discussion and negotiation with the yard, the subcontractors, the surveyors and the owner.”

In conclusion, Ex stresses that these costs are offset in the long run for their clients and that, as asset managers for the yachts they represent, refit surveys are the most efficient solution to effectively refitting a superyacht.

JH

“The ideal situation is when you build and commission the vessel for a client and manage it from day one, following up with all maintenance, Class and Flag surveys ... all of the vessel’s history and data is available and your PMS system is up to date. But it does not often happen like that.”

Refit & Repair

SEVEN ICONIC REFITS

The refit market is barely recognisable from where it was even just a decade ago. Yachts can be completely gutted or even rebuilt. Here we reveal the fascinating stories behind some of the biggest – and most notable – refit projects over the past few years.

A new market for Lürssen

The art of the commercial conversion

BY JACK HOGAN

Lürssen adds commercial conversions to its extensive portfolio. How does a new-build and refit giant see this side of the market?

Delivering large custom yacht projects is a multi-year process. A new-build 50-metre or longer motoryacht is likely to take about four or five years from conception to launch. These lead times are now stretching towards 2027/28 and beyond. The compounding pressures of supply chain issues and uncertain economic outlooks are driving more clients towards alternative yards and avenues to ownership.

The practice of converting commercial vessels into luxury motoryachts is nothing new. Iconic projects such as the 58-metre Seawolf at Pendennis and Astilleros de Mallorca have shown what is possible when enough time, innovation and investment are made into rebuilding and repurposing commercial vessels.

These projects take time and require patient and passionate owners to see through. Once thought of as a niche project that may be sporadically commissioned by adventurous owners and undertaken at specialist yards, the discord is becoming more mainstream. The topic inspired one of the most intriguing keynote sessions at The Superyacht Forum 2022.

Lürssen, synonymous with the largest superyachts in the world, is diversifying. It was therefore fascinating to hear how the team in Germany would approach the growing segment that is commercial conversions and incorporate it into its comprehensive refit division. Alberto Perrone, sales director of Yacht Refit at Lürssen, outlined the vision.

“We did not want to come here and discuss conventional refit, which is still our main area of activities, as we have done that many times. There are some great refit yards here, and we all know what needs to be done. The opportunity that we have decided to pursue is that of commercial ship conversions. There has been an alignment of factors that

make this a fantastic avenue. Are we the first? Of course not. I am sure that it is something we as shipyards will all end up doing in some capacity.”

To strengthen its service and refit activities Lürssen founded its own refit company, Lürssen Yacht Refit and Services. Perrone goes on to explain that it has been conceived as a space to undertake all post-new-build projects, ranging from warranty periods to major refits. Therefore, Lürssen Yacht Refit and Services is also perfectly placed to apply the Lürssen philosophy to the slowly growing market of commercial conversions.

The post-pandemic boom in yacht purchases has extended across all size ranges. This market pressure is driving a reframing of the traditional pathways to ownership. Crucially, clients are also exploring the options that can deliver a project faster, and the substantial commercial fleet is an enticing option.

“In the past some have opted, just like old country houses in Chianti, to buy a ruin and go from there,” says Perrone. “This might be fun and entertaining, and of course still valid, but at Lürssen Yacht Refit and Services we will focus only on conversions from strong and ‘healthy’ donor vessels.”

Lürssen’s vision is to start with a highly capable and operational donor, such as an offshore support vessel. Perrone outlines why Lürssen Yacht Refit and Services sees these as the best option: “They are stable, they are quiet and are comprehensively outfitted. A good example is that many of these vessels operate with high-precision machinery, often with cables hanging a thousand metres down. They incorporate activeheave compensation, allowing them to remain stable in large seas, supporting this machinery. Building on this stable platform is ideal for the conversions that Lürssen are looking to undertake.”

The typical donor vessels that Lürssen is looking for in a ‘go anywhere’

There is a significant pool to choose from, with the active fleet of global offshore vessels currently comprising 3,200 vessels, while approximately 1,200 were decommissioned in 2021.

Lürssen conversion refit yard.

conversion are Crew Supply Vessels (CSV), Anchor Handling Tug (AHTS), Offshore Supply Vessels (OSV) and Offshore Construction Vessels (OCV). There is a significant pool to choose from also, with the active fleet of global offshore vessels currently comprising 3,200 vessels, while approximately 1,200 were decommissioned in 2021.

Looking to the oil and gas sector for such vessels has many downstream advantages. While the price to charter and purchase may have increased as demand rose in the face of the current energy crisis, there is still an active market of potential donor vessels.

Lürssen envisages this renewed market as a potential opportunity. Clients can purchase an operational vessel and charter it out for conventional offshore operations while Lürssen Yacht Refit and Services begins the preliminary and planning stages of the build, and when all these factors are in alignment the vessel can be pulled from service and taken to the facility. Perrone even goes as far as to say that if the owner has a change of heart, the vessel can be sold back to the offshore company with relative ease.

The perfect candidate outlined for the prototypical Lürssen conversion is a 120-metre OCV. The key features that underpin this designation are a hull built according to ice class B, accommodation for 130 PAX (meaning that no major conversion is expected by Class), a safe manning requirement of 13, and a ≥ 90day operational endurance. Some of the other key characteristics of an ideal conversion candidate include:

• Deadweight - 4,750 tons

• Deck cargo max - 2,400 tons

• Fuel oil - 1,300 cubic metres

• Ballast water - 5,380 cubic metres

• Freshwater - 900 cubic metres

• Helideck D-value - 21.0m and 12.8t take-off weight, second helicopter operations possible.

The aesthetics of these support vessels imply capability. This ‘offshore look’ is in no small part a driver of their popularity. It is worth reflecting on just how much can be supported by a 2,400t cargo weight. Coupled with the high fuel capacity and operational endurance, this style conversion really can carry everything, anywhere.

While still using conventional propulsion systems at this stage, there is another way to frame its sustainability credentials. By upcycling an existing platform instead of constructing from new, the total carbon emissions saved have been allocated at around 30,000t. Perrone frames this as “starting with 30,000 credits in the carbon bank”.

Although a long way from being sustainable, the comparatively huge technical spaces and carrying capacity give a conversion such as this the room to innovate and incorporate lower and zero-emissions technology, Lürssen envisions that these conversions, with the right client attached, will look to use the same fuel-cell technology and methanol-based main propulsion that it has pioneered for its new-build sector.

Although developed to serve the oil and gas sector, the dynamic positioning system that so effectively holds its position while surveying or supplying an offshore platform theoretically allows vessels such as this to greatly reduce the amount of harmful anchoring practices that it undertakes.

As the oil and gas market dropped in recent years, more and more of these vessels entered the market and prices were driven down. For the highly capable and operational vessels such as those highlighted by Lürssen, that market has risen again as the global energy crisis has driven more conventional oil and gas exploration. Still, a conservative estimate for the style 120-metre that Lürssen highlighted is around 75 million euros.

The realistic timeframe for delivery is the standout feature of this project. Lürssen foresees that a project such as

The realistic timeframe for delivery is the standout feature of this project. Lürssen foresees that a project such as this will be available within 24 months after vessel purchase.

POTENTIAL PERFECT DONOR VESSEL

“In the past some have opted, just like old country houses in Chianti, to buy a ruin and go from there. This might be fun and entertaining, and of course still valid, but at Lürssen Yacht Refit and Services we will focus only on conversions from strong and ‘healthy’ donor vessels.”

this will be available within 24 months after vessel purchase. The cost is still relatively high – not at the level of a new build of comparable size, but at 190 million euros for an estimated project cost, still a significant investment. Additionally, in a relatively nascent sector of the market, and with each project carrying with it its idiosyncrasies and challenges, it will take more intrepid owners to realise more of these projects.

There is still a key set of drawbacks that need to be addressed and discussed openly. These vessels were not designed with comfort in mind. Their form follows function, and while they have the carry-ing capacity and operational flexibility to fit the role of an expedition superyacht, the comparisons are not like for like.

As Terry Allen, technical director at McFarlane Ship Design, highlights, “There are a lot better choices in the commercial world than using something with a block coefficient* of about 0.85, unlike what we are used to in yachting. As well as the examples that Lürssen has highlighted, there are offshore research vessels, and tuna fishing vessels; the diversity is out there.”

“The price tag of 190 million [euros] is significant also,” continues Allen. “Any vessel that gets purchased for this kind of project will need to be very carefully selected for passenger comfort

*Block coefficient: the ratio of the volume of displacement to the volume of a rectangular block whose sides are equal to the breadth extreme, the mean draught and the length between perpendiculars.

by looking at the hull form and stability calculations.”

Brendan O’Shannassy echoed the sentiments, highlighting the need to address the comfort levels associated with conversions such as this. “They’re a bit brutal [commercial conversions] and that block coefficient factor matters. There are acceleration forces at play that can affect onboard comfort and those need to be addressed. But when I look at the price, there is a research vessel sitting in the north of England right now with a price tag of four million [euros], 3,000gt and desperate to be repurposed,” concludes O’Shannassy.

“It is great to start these conversations and look at these boats. Every time I am in the Pacific I see the tuna boats that Terry mentioned, and think, wow, they look great. And I am sure their time will come and they will be repurposed in due course.”

By casting a wider net across the commercial market, significantly cheaper options exist. The entrance of a yard as storied as Lürssen into the conversion sphere is a significant show of force. There are many thousands of potential conversions, as highlighted at The Superyacht Forum.

Lürssen has taken the high road in looking to convert the top end of the offshore market. The headline figures look enticing, but the economics of a build often do on paper. As Lürssen and the other new-build giants look to the specialist fields such as conversions to increase their capacity and cater to evolving markets, what can be called the ‘typical yacht’ may become harder to define. JH

The entrance of a yard as storied as Lürssen into the conversion sphere is a significant show of force.

Revamped Juliet at the vanguard of modern refit

BY MAX STOTT

Sailing yacht Juliet defines the emerging era of ‘the new classic’ type of yachts. Here, we speak with Stefan Coronel, refit manager at Huisfit, about how they were able to implement hybrid technology on to an ageing vessel to ensure it could sail for years to come.

Future-proofing a yacht built in 1993

Photo: Captain Jonathan Allan

Last year, Royal Huisman’s Huisfit relaunched the 29-year-old 44-metre sailing yacht Juliet with some brand-spanking new technology and engineering. It was a refit case study that made headlines for all the right reasons and proved to the rest of the market that it’s possible to redefine the classic fleet.

Juliet now features the latest hybrid technology benefits, including silent operation, peak-shaving, shaft-generated power under sail and reduced fuel consumption, combined with enhanced operational flexibility and redundancy.

The centrepiece of Juliet’s hybrid conversion is a new gearbox, aligned with a new electric motor/generator. This facilitates indirect electric propulsion, either generated by the main engine or drawn from the new battery bank or generator. Conventional shaft drive directly from the engine also remains an option. The system enables the main engine to meet the yacht’s hotel-load requirements by means of the electric motor/generator, while the power management set-up provides additional silent options via the battery bank.

With the main engine becoming the primary source of power generation, the system is configured to deliver peak shaving from the battery bank, such as during sail hoisting and manoeuvring. The thrusters are electrically, rather than hydraulically, propelled. The same battery bank will enable silent-ship operation, including air-conditioning and hotel-load consumers.

Under sail, electrical power will be generated by the propeller’s rotation. Rapid recharging of the battery bank is provided by the electric motor/generator driven by the main engine or generator. At anchor, battery power replaces the gensets as the main power supply, eliminating the noise and atmospheric pollution.

These are, of course, some pretty major engineering upgrades for a yacht that was built before the turn of the millennium. Refit manager Stefan Coronel says he anticipated some initial challenges even before the yacht entered the yard.

“Juliet was delivered by Royal Huisman in 1993. The number of systems in a contemporary engine room is much larger and the technical requirements are of a very different, much higher level,” says Coronel. “That made it rather challenging to start designing a modern hybrid-based engine room within the existing space of this yacht, which was built almost 30 years ago.

“With the recent Huisfit project of Foftein [Royal Huisman, 1999], the team had gained experience with the conversion from conventional drive to hybrid drive. So the refit of Juliet was based on a tested concept, and lessons learned [such as improved interface and controls] could be applied as improvements in the refit of Juliet. Also, the rapid development of this technology led to further improvements.”

All the upgrades mentioned above mean there’s much less dependency on the main generators in their traditional role. They will offer a high level of

redundancy, both for the propulsion via the diesel-electric system and as an alternative source of electrical power generation. In the latter role, the main engine’s generator would typically be the first choice for recharging the batteries after hours of zero-emission mode.

The Huisfit shipyard team has also reported that since this project, it is seeing an increasing interest in hybrid conversions. Owners and captains not only recognise the benefits in terms of on-board comfort, but also anticipate the requirements of future worldwide environmental regulations.

This vessel really is the ideal asset for many owners – a beautiful, classic sailing yacht that is also green and futureproofed; not many exist. So what does the industry have to do to make this refit/rebuild process more appealing to current owners?

“The hybrid conversion offers owners much more versatility and possibilities, amongst others more range and more

“A refit such as this very much suits visionary owners and captains who, like the owners and captain of Juliet, also acknowledge and embrace the great benefits of a hybrid conversion.”

Juliet on the hardstand during its refit.

Photo: Huisfit

available power,” says Coronel. “Despite the various additional options, the system must, above all, remain simple in order to make the end result attractive for the owners.

“A refit such as this very much suits visionary owners and captains who, like the owners and captain of Juliet, also acknowledge and embrace the great benefits of a hybrid conversion. Prior to a conversion like this, it is important to properly define both the current and the anticipated sailing profile so that a tailored corresponding system can be developed.”

Coronel explains that the process wasn’t all plain sailing for the refit team. As with any large-scale refit project, there’s inevitably going to be at least one issue arising that means either the strategy or the timescale of the job needs to be adapted.

“Some initial problems, such as cooling and limited power, could not be solved right away,” reveals Coronel. “We started testing the solutions for these problems extensively before integrating them as an improvement.”

The keel was laid for Juliet almost 35

years ago, and some of the original build team, who were junior engineers at the time, are now the senior managers who were responsible for its conversion. This combination of heritage and experience meant that the conversion of Juliet could be carried out without deliberation and concern.

Coronel concludes, “In the past years, the shipyard team has gained a lot of experience with hybrid systems, for example during the construction of Ethereal [the world’s first hybrid superyacht] and NextGEN ketch Elfje. The team’s experience with those two yachts was directly applied to Juliet’s conversion project.

“During the refit of Juliet [when the keel was also replaced] the larger part of the vessel turned out to be still in perfect shape thanks to the execution and quality that back in the day were already of a high level. This made a financial investment and the effort worthwhile. Post-refit, Juliet is still a beautiful classic and state-of-the-art yacht which, thanks to the modern hybrid system, can sail on for many years to come. She is now ready to sail into a greener future.” MS

Juliet’s hybrid controls.

Photo: Huisfit

Study of a complete rebuild

Photo: Guy Fleury

HUISFIT TRANSFORMS 62M S/Y ATHOS

This conversion project regularly employed up to 50 skilled workers for more than a year …

BY MAX STOTT

Before acquiring the 62m Hoekdesigned, Holland Jachtbouwbuilt Athos (2010), the new owner had chartered the vessel for around a year. Although he’d enjoyed the yacht, he saw many ways in which it would be possible to optimise and enhance the amenities and user experience.

As the project evolved in his mind, the refit list grew, and what started as a large refit project soon came to embrace all aspects of the Huisfit proposition: Refit, Rebuild and Renewal.

The stern overhang needed to be extended and, on deck, cockpit layouts had to be redesigned and a new forward navigation deckhouse had to be added. New booms, new sails and carbon rigging would ensure improved sail management and performance. All systems were to be updated and a considerable amount of the interior was to be replaced or reconfigured and updated.

Hoek Design was, once again, involved in all naval architecture work to accommodate these changes as well as the interior styling and layout of the new owner’s cabin, one of the guest cabins, the main salon, the new crew service area and the navigation deckhouse. Peter Mikic Interiors was responsible for the layout and styling of the main deckhouse and for the overall guest interior decoration.

Athos’s stern has been extended by 1.25 metres, a seemingly modest size increase, yet the concave and convex curves of the new section called for exceptional skills in the design and build of the aluminium structure in order to fit it perfectly into the aluminium hull. The extension, with a relocated pushpit, provides a new two-metre area for sunbeds behind the owner’s private cockpit.

The cockpit itself has been reconfigured for easier access and now features extra amenities, including a fridge and icemaker. The interior layout and furnishing of the owner’s deckhouse have been updated and, as a finishing touch, the new stern section has been complemented by a fine teak transom.

The main cockpit and deckhouse, aft of the mainmast, have been extensively modified to offer a true social hub for meeting and greeting, al-fresco dining and relaxed leisure activity. The new cockpit is wider and longer and can comfortably provide dining for 12 people. There’s also informal seating for guests to meet in smaller groups or find a quiet corner to enjoy a read.

Coffee tables are flexibly designed to adjust to also becoming dining tables. A bar with a fridge and icemaker has been installed. Just aft of the main cockpit, redesigned dashboard consoles sit on the port and starboard of the ship’s wheel.

The main deckhouse floor has been raised to one level and provides an enhanced outlook. The entire interior, including the navigation station, was taken out and a new design was installed. The deckhouse looks much larger, the traffic flow is better and the natural light has improved. A new classic-looking bar has been built on the portside and a couch occupies the space of the navigation station, while smaller dining tables and casual seating maximise flexibility.

More forward, the former crew companionway, which gave access to the crew quarters, has been replaced by a larger, third deckhouse, crafted in the same style as the other deckhouses. This encompasses a new navigation and secondary steering station and provides additional social space for the crew and access below. At the same time, the new design of the crew deckhouse improved the flow of the engine-room ventilation system and reduced the subsequent noise considerably.

The owner’s suite has been totally stripped out, redesigned and refitted. An additional porthole was made on either side and wasted space was eliminated to make full use of idle space. There are now two bathrooms in place of one and a new walk-in closet. Hard panelling has been replaced by subtle fabrics and the plank flooring has been carpeted to create a warm and tranquil ambience.

Just forward of the owner’s suite,

The main cockpit and deckhouse, aft of the mainmast, have been extensively modified to offer a true social hub for meeting and greeting, al-fresco dining and relaxed leisure activity.

Athos before refit (top left), the stern (top right), interior during refit (middle) and forward deckhouse (bottom).

Photo: Wynne Projects

Photo: Huisfit

Photo: Wynne Projects

Photo: Wynne Projects

Photo: Wynne Projects

Athos’s layout and sailplan after refit (right) and in 2010 (below).

a day head has been removed. The space subsequently obtained has been incorporated into the aft port guest cabin, where a fixed queen bed and a sofa have been added. Along with the three other guest cabins, the floor has been carpeted and the fielded panels have been upholstered.

Everything inside the corridor that connects the guest cabins has been renewed – new walls, new flooring, new carpets and even a new chandelier. The biggest change in this area was the replacement of the original curved staircase to the main deckhouse with a new stairway.

From the main deckhouse, stairs forward previously gave access to a lower salon in an open-plan setting with a showpiece galley. A fireplace was removed and a wall was built between the two areas to create a cosy and intimate media room to starboard. A long bookcase built cross-ships and luxurious new furniture complete the scene.

The galley to port, behind the new wall, has been custom-rebuilt and all equipment updated for modern haute cuisine practices. A stewardess station has been added, meaning that there’s more room in the galley for the chef. In the crew quarters, the laundry has all-

Other enhancements include allnew navigation, alarm and safety systems and new lighting throughout. All programmable logic controllers (PLCs) have been changed and pumps upgraded. All guest spaces benefit from a state-of-the-art communications and entertainment package. The main tender has been completely rebuilt and there’s a new second tender. The bottom of the hull was blasted to bare aluminium before a full respray.

This conversion project regularly employed up to 50 skilled people for more than a year. Project manager Bear Wynne, from Wynne Projects Ltd, says, “The new Athos looks amazing. The multiple modifications have been beautifully done. The attention to detail and finish is excellent. The additions and modifications have not only improved the functionality of the yacht, but they have also enhanced its appearance. The quality of Huisfit’s work is exceptional.” MS

Athos will be available to charter, through Y.CO, in the Caribbean and Bahamas for this winter season.

new appliances, the crew cabins have new floors and the crew mess enjoys the benefit of new worktops.

“The attention to detail and finish is excellent. The additions and modifications have not only improved the functionality of the yacht, but they have also enhanced its appearance.”

Photo: Tom van Oossanen

Oceanco’s quest to transform its fleet

BY MAX STOTT

It’s no secret that Oceanco has had a record-breaking year in the newbuild sector, with many exciting projects for very high-profile clients. Some of the shipyard’s recent deliveries feature the most innovative green technology in the entire maritime sector: the likes of Black Pearl, Bravo Eugenia and Project Y721 have been written about extensively over the past few years.

The actual facilities at Oceanco have also been invested in massively; the Alblasserdam headquarters feature electrically driven heat pumps, reducing gas consumption by 50 per cent, and solar panels covering 10 per cent of the annual energy consumption.

This is all well and good, but Oceanco has been building superyachts since the 1990s, and if the company really wants to improve its green credentials it is going to have to start focusing on transforming its existing fleet.

Since 1993, Oceanco has built 38 yachts and, as it stands, not all of them are exactly futureproof. That’s why, in 2019, the shipyard acquired a 28-acre facility close to its Albasserdam headquarters in a bid to expand its capacity for maintenance, refit and lifetime extension work. The site includes a dedicated 132m x 38m space that is known as the home of Oceanco’s Life Cycle Support team. Even

though this space is a new addition, it has already produced some exciting refit case studies.

Paris Baloumis, group marketing manager at Oceanco, explains the company’s vision. “Following on from a record-breaking year is both a challenge and a motivation to keep doing what we are doing,” says Baloumis. Oceanco has had three high-profile deliveries this year, and they currently have five superyachts under construction, all over 100 metres.

Baloumis adds, “That wasn’t the only busy part because we also had some high-profile refits with our Life Cycle Support team. We had the 82-metre Alfa Nero, which is an icon in the market, and that came for a refit and an upgrade. Then we had an old yacht, the 62m Lucky Lady, and we had Limitless, which is a beautiful yacht, but the one very fundamental project is the 20-year-old Oceanco [Lucky Lady] that came back for a total transformation, and we don’t call that a refit because it’s really a rebuild.”

Lucky Lady (see pages 53-55) has been described as a ‘catalyst case study’ by Oceanco. The vessel previously featured two 1,650hp Caterpillar diesel engines and a relatively traditional layout. However, this all changed. Baloumis says, “We brought it back to Oceanco and

Paris Baloumis, group marketing manager, Oceanco.

We speak with Paris Baloumis, group marketing manager at Oceanco, about the yard’s ambition to make the existing fleet more sustainable.

we took everything out, the engine, the gearbox, all the technology, everything, and we brought it all back up to modern standards."

There are more than 6,000 active yachts over 30m in the world that still rely on fossil fuels and they will eventually either need to be refitted and become a part of the energy transition or they will become relics of a bygone era.

Oceanco has a fleet of 38 superyachts, so it’s entirely possible to imagine a future where every yacht ever built by Oceanco is running on sustainable fuels. This is not just a fantasy for Oceanco, but a genuine target they would like to reach.

“The energy transition is actually the most important focus for us because it’s all about how we can decrease our dependence on fossil fuels,” says Baloumis. “The interesting thing about this is that we all talk about it in the industry but no one has the magic formula, nobody can say it’s going to be this or it’s going to be that. So we are moving forward and we are making sure that everything we’re building now becomes future-proof. That means that with the way we build yachts now, we are going to be able to refit the vessels to accommodate future fuels, whether it is synthetic fuel or methanol or batteries.”

While it’s vital that more businesses

focus on making the existing fleet more sustainable, the fact is that the majority of these yachts were not built with refit in mind. This means that the yard not only has to cope with the inevitable challenges that come with trying to incorporate new technology on an old vessel, but also that the actual physical refit process will be long, expensive and not very environmentally friendly. Fortunately, new-build yards are now taking this into further consideration –even if it does come at a price.

Baloumis adds, “We want owners of Oceanco yachts to be able to upgrade their vessels. That does mean it is more expensive to build initially because you have to think about denser fuels, bigger tanks, different kinds of insulation and different safety regulations for possible future fuels. At the same time, we think that this is the right way to go because new technologies are coming and you need to anticipate them and have a yacht that will be suitable in a new era.”

Oceanco turning a sharp focus towards sustainability and the refit sector is good news for the entire industry. The company has a vision that stretches across decades, and a chat with Baloumis is enough to convince anyone that while much of the competition is playing checkers, Oceanco is playing chess. MS

“We want owners of Oceanco yachts to be able to upgrade their vessels ... new technologies are coming and you need to anticipate them and have a yacht that will be suitable in a new era.”

Oceanco’s facilities.

20-year-old yacht returns home for a makeover

How Oceanco restored the charms of Lucky Lady

A

Photo: © Francisco Martinez

We speak with life-cycle support manager

Anton Smit about how the Dutch yacht

reconstructed the 20-year-old vessel.

BY MAX STOTT

When 63-metre motoryacht Lucky Lady returned home to Oceanco for a rebuild, the mission was to turn the 20-year-old vessel into a ‘future-proof’ superyacht. It would be fair to assume this would be a slightly daunting task for any shipyard, but for the owners of this particular vessel, some comfort was taken from the fact that the yacht was coming back to its original creators.

Lucky Lady was almost completely gutted and then put back together, and, for this reason, it can be considered a rebuild rather than a refit. Alongside the yacht’s 20-year Lloyd’s Class survey, the work undertaken included complete overhauls of the main engine, steering unit and gearbox, while a new powermanagement system and exhaust filters were installed on the gensets.

The propeller shafts were replaced and a new chiller plant was also installed on board. To make Lucky Lady more operationally efficient, 820 metres of LED lights were fitted to her interior and exterior, while the exterior paintwork was upgraded to give it a fresh, contemporary look.

This may sound very achievable on paper, but the actual complexities and challenges that crop up with projects of this magnitude are often overlooked.

Anton Smit, Oceanco’s life-cycle support manager who played an integral handson role in this project, says that while everything did eventually go to plan, it was by no means a walk in the park.

Refit yards are almost always looking for two important scarcities – time and space. Space is less of a problem for Oceanco considering that just a few

builder

years ago the company acquired a 28acre facility close to its headquarters at Alblasserdam in the Netherlands. However, time can still be a problem even for the most reputable and experienced shipyards, so how did Smit manage to complete such a major rebuild on schedule?

“At this scale of maintenance work, time is of the essence,” says Smit. “At Life Cycle Support we always seek to minimise the downtime of a yacht so she can return to her cruising programme as soon as possible.

“Upon arrival of a yacht to the Oceanco facilities, we inspect all its critical equipment such as the propulsion system, generators and tanks. This allows us to rule out any major repairs that have not been factored into the original brief in order to avoid surprises at the final stages of the refit.”

The responsibility of the project rests on the shoulders of the refit yard, but the client can also do things to make the process smoother and ultimately more cost-effective. Smit adds, “Involve us from the very start of your discussions. With current supply-chain issues, we will be able to plan ahead and avoid costly acceleration fees. Having access to the right materials, at the right time, has a positive impact on the budget.”

The superyacht industry tends to struggle with accurate and up-to-date terminology, and there is clearly more room for differentiation within the market without necessarily needing to adopt irrelevant terminology. So this project begs the question: Is it a refit or a rebuild?

If you ask Oceanco, they will say that

Lucky Lady returns to Oceanco.

it’s a rebuild, but surely if that were true the actual physical structure of the ship would have to be modified somewhat.

With Lucky Lady, the majority of the modifications and upgrades involve the mechanics and technology of the vessel.

Smit says, “The way we approach the rebuild process at Oceanco is similar to that of a new build, only with a large part of the project already completed at the starting point. For any significant refit or rebuild project, it’s crucial to have a clear agreement between the yard, Classification society and Flag registry so we have an exact understanding of where original rules are applicable and where new rules should be implemented. For example, with installing a new luxury

or crew interior, we should comply with the latest rules for Flag and Class.”

One of the biggest selling points for new-build yards that offer refitting services is that their vessels are ‘returning home’. With Lucky Lady, the original team involved in the construction of the yacht was available for the rebuild project. This allowed the yard to save time and money without any vital information getting lost in translation.

“We have many long-term employees at Oceanco who bring many years, or even decades, of experience with us to the table,” says Smit. “It is fair to say that engineering has come a long way over the past 20 years, across the whole industry, and having many members of the original

team who built her involved in the refit was key as they know her by heart.”

Smit concludes, “Oceanco’s strategy is to work hand in hand with our comakers from the start of any project. Together with these co-makers and the owner’s team we determine the priorities and set the milestones of the project well in advance of the vessel arriving at our facilities.

“Progress is proactively monitored by a dedicated planning manager and production team throughout, so we can identify the critical path and mitigate risks for delays. Time and again, this method has proven effective to ensure redelivery within the scope of a life-cycle support project’s contract.” MS

Repurposing a legendary expedition yacht

SEAWOLF 3.0

BY JACK HOGAN

The question of how the existing fleet will be able to meet owners’ changing demands and the regulatory imperatives surrounding emissions looms large over the industry. In recent years, there have been many examples of genuinely boundary-pushing concepts, as well as a handful of exciting projects across the major new-build yards.

These risk-taking ventures will hopefully lay down the marker for the next-generation fleet. What receives less attention, and what may prove more challenging, are the complexities of converting existing vessels to be more sustainable, capable of operating with lower emissions.

If the fleet is to evolve, forwardthinking shipyards will need to embrace complex builds and equally challenging owners’ briefs that may have seemed unprecedented a generation ago.

Pendennis has a storied history of taking on unique projects. When I visited the team in Falmouth earlier this year, one such project was underway. Strictly under wraps until now, the refit of the iconic 1957 tug conversion Seawolf is a fascinating exercise in energy repurposing.

The 59m Seawolf started life as the tug vessel Clyde. Delivered in 1957 by the Dutch shipyard J. & K. Smits Scheepswerven N.V., the 851gt vessel has a beam of 10.4m and a draft of 4.9m. Along with its sister ship, Elbe, they were designed to tow very high-tonnage vessels, with the latter famously towing two American aircraft carriers halfway around the world.

Clyde was transformed into an expedition superyacht at Astilleros de Mallorca between 1998 and 2004. A legendary vessel in the fleet, and infallibly capable by traditional marine standards, it now faces a sterner test: how to stay compatible in a changing world and

start to meet the sustainability standards that do not accommodate its beautifully engineered – but outdated – modes of power generation.

Stephen Hills, commercial director at Pendennis Shipyard, says, “Seawolf is a great story because I think it epitomises what Pendennis is and wants to be in the future. This is an example of relifeing, repurposing and improving the environmental credentials of a yacht, and I think that’s a positive initiative. With Seawolf, we have clients who are deeply focused on sustainability, wanting to use the vessel to explore the remotest and least spoilt areas of the planet with as limited footprint as possible.

“From the outset the clients challenged the yard to introduce technology in order to leap ahead and start to address the issues surrounding the emissions that the vessel will produce in the future. The mandate provided by the client enabled the yard to invest time to explore everything from scrubbers to heat recovery to drive-shaft energy recovery.

“It is clear that the owners could have bought a new yacht; however, in addition to falling in love with Seawolf for the history, quirks and character, they saw a unique opportunity to repurpose an old boat rather than using all of the energy required for a new build. The direction received from these adventurous owners was that in order for Seawolf to reach its potential as an explorer vessel this can only be achieved if Seawolf becomes as environmentally friendly as possible.

“We at Pendennis have enjoyed the challenge laid down to us, we believe that the experience gained on this project will benefit the broader fleet in the coming years and we hope to become the preeminent yard for future conversions

The refit of one of the fleet’s most classic and oldest yachts means it could still be operational for decades to come.

The owner’s brief for Seawolf was deceptively simple at face value: introduce an electric mode of operation and repurpose the surplus energy generated from the original engines.

of this nature. Plus, it’s a really cool [converted] tug! It has a heap of character. So the owner wanted to preserve the boat and re-life it.”

The term ‘re-life’ is an interesting one. The classic fleet, and specifically the utility of commercial conversions, is integral to the industry. However, encroaching emissions regulations are putting pressure on many vessels that were not designed with silent operation or low-emissions cruising in mind.

Not all such conversions will be as idiosyncratic as Seawolf. Far from being an off-the-shelf solution, it may be at the opposite end of the spectrum for low and zero-emission conversion projects. It’s not a total solution either. Hybrid systems don’t break the laws of physics, and the energy will still be created from conventional diesel for the time being.

What it represents is what is possible when seemingly insurmountable problems are approached step by step, integrating disparate technologies to give a vessel, even a very old one, the chance to thrive for another 65 years.

The owner’s brief for Seawolf was deceptively simple at face value: introduce an electric mode of operation and repurpose the surplus energy generated from the original engines.

“We looked at the vessel and said, ‘Well, we’ve got this boat, how can we make it fit for purpose going into the future?’,” says Hills. “One of the issues, obviously, that you need to do is address the fact that these aren’t the cleanest of engines by virtue of their age. What can you do to reduce consumption and reduce emissions?”

The ‘easy win’ part to this solution,

as Hills puts it, is to change the three existing generators to clearer IMO Tier 3-compliant units with exhaust and particulate filters. The more complex aspect arises from the question of what to do with the energy created by the existing main engines.

The power-generation system on Seawolf is unique. Built to tow very large vessels, her twin Smit MAN RB-66 engines produce around 1,200kW each. Both engines feed one gearbox and a single-drive shaft and propeller. In its original towing function, it was designed to cruise on one engine and tow on two.

The excess power generation creates the opportunity for Pendennis to innovate. Hills explains, “Because the engines produce so much power, it was always ‘over-engined’ for life as a superyacht. What we have been able to do is refine the drive system and take that surplus energy and capacity in the main engines and redirect it to battery storage that will allow zero-emissions cruising.

“We are also fitting a new propeller that is specifically designed for more efficiency, where the original system was not. We are making the vessel as low emissions as possible without removing and replacing the whole prime mover.”

The key innovation, and a sticking point for the project, was the addition of a motor generator to the drivetrain. As many of us may remember from highschool physics, a mechanical motor can charge a battery if run one way or spin the wheel if the current is reversed. This simple principle, if they could find a way to mount it on the gearbox, would allow the behemoth engines on Seawolf to charge a battery bank with

the excess capacity, further taking time off the generators in the process.

This redirection may sound simple in principle but it required a ground-up solution which was identified once the project arrived at Pendennis. Solving the issue of redirecting the power for the engines was one of the most challenging aspects – and one that Pendennis had to take back to the drawing board.

This is where Seawolf’s age has its advantages. Although presenting its own very specific set of challenges, the 65-year-old vessel has a platform that is more adaptable than an equivalent 25-year-old 70m superyacht.

“What we were looking at were refinements of the engine and systems technology and existing platform,” says Hills. “Unless you are looking at something very radical, like the installation of wind assistance or wing masts, this is the kind of solution that most of the fleet, classic yachts included, will be looking at.”

The fundamental issue that previous engineers at shipyards had struggled with was that of space. Hills explains that the range of works undertaken at Pendennis, and the extensive on-site fabrication and testing facilities, give them an edge. “I think that it’s probably a product of having done work on so many sailboat engine rooms and never giving up on the idea that you can fit a lot more into a technical space than people would first think. We knew that we could find a way but we would have to take it back to the test bed.

“There is a lot of debate in the refit sector, pushing hard on the issue of space. I think our role as an integrator is to stay on top of all of the new developments and

Having a reversible generator/ motor that can both drive the vessel forward and draw excess energy from the main unit, installed in a restricted space, is what sets this project apart.

Top: Seawolf arrives at Falmouth. Above: Seawolf in the Pendennis shed.

so we’re ready to say, ‘Well hang on, have you thought about this?’.

“For example, there are companies that are developing motor generators that will clump around the shaft, so it’s going to be inline and could even go on to existing shafts. Obviously, if there’s no space around it at all then it’s not going to fit, but people are looking all the time at new technology and we’ve got to stay on top of it.”

What is apparent when looking at this project is that, while unique and fully custom, all of the components are wellproven. Battery systems are increasingly common in marine applications and the regulatory code is relatively well established. The only truly novel thing in this project is the motor generator, and even this isn’t new technology.

Hills says that because the motor generator is a secondary part of the power-generation system that can be disconnected, and is not the main propulsive unit, which is a compliance consideration and provided some creative flexibility for the build.

The exciting part of this project is not the technology itself; hybrid electric propulsion has been employed in the marine sector for well over a century. Nor is it the use of a shaft generator, which is a standard piece of equipment in the fishing and sailing sectors. Having a

reversible generator/motor that can both drive the vessel forward and draw excess energy from the main unit, installed in a restricted space, is what sets this project apart.

Another major special consideration is where to put the batteries. Here, Pendennis has repurposed one of the fuel tanks. The fuel capacity of 184 cubic metres is excessive for any 70m vessel, let alone one that has been redesigned for more efficient operations.

Not content with just improving the propulsive and electrical generation on Seawolf, Pendennis is also installing a comprehensive waste heat recovery system so that instead of dumping heat from equipment such as generators into the sea, the heat is returned and used to ensure all heating needs of the vessel are met. It is expected that this will make a major impact on the vessel especially when she arrives in colder climates.

As Seawolf is no longer likely to be called upon to tow aircraft carriers halfway around the world, losing one of the tanks to batteries was not terminal to its operations. Hills says that according to their calculations, Seawolf may in fact have slightly more range (8,000nm, give or take) due to these savings in efficiency, despite the reduction in fuel capacity.

This is where the design team were able to have some fun, in the engineering-

focused sense of the word. Redistributing the weight from the fuel through the placement of batteries keeps the vessel stability balanced and maintained through pumping between the existing tanks.

Walking through the technical spaces once the refit is completed, Hills assures me, anyone familiar with the highly recognisable engine room wouldn’t notice any significant changes (until Seawolf slid away silently from the dock under batteries that is.)

Seawolf now has multiple modes of operation, ranging from conventional diesel to fully electric. The potential addition of biofuels to further reduce carbon emissions is the hypothetical next step in the sustainability journey of this classic vessel.

The integration of proven technologies, on a proven platform, has given Seawolf a new mandate for continued operations.

A clear mandate from a forward-thinking client has provided an innovative shipyard the scope to rethink explorer yacht cruising for the next lifecycle of Seawolf. Whilst not the panacea to reach emission free cruising this futureminded refit will breathe new life into an old vessel and allow Seawolf to be operational for another 65 years … albeit a little quieter this time. JH

Seawolf ’s powergeneration system.

THE REBIRTH OF A PAST MASTER

ICON Yachts’ new undertaking showcases an innovative propulsion configuration which will transform a former rescue and support vessel into a family-orientated world cruiser.

Photo: Guy Fleury

Former offshore vessel becomes a true hybrid

BY JACK HOGAN

New-build lead times are pushing into the latter part of the decade, raw-materials supply and energy prices are volatile and the task of forecasting new-build deliveries is daunting. However, one solution to this delivery issue is to repurpose existing commercial vessels.

Once considered more of a curiosity and dedicated to scientifically minded projects at the far end of the exploration spectrum, these conversions are becoming more user-friendly. As these proven platforms gain in popularity, some key case studies have produced some interesting innovations.

ICON Yachts’ latest conversion Project MASTER will be transformed to a 70-metre explorer vessel.

After a number of design briefs and potential platforms were presented to the client, it was Ocean Ness, a 66-metre offshore rescue and support vessel, built by Norwegian shipyard Kleven Werft in 2001, that ticked all the boxes. Ultimately, it would need to be a highly capable and family-orientated world cruiser that is suitable for charter, with Espen Øino International contracted in 2021 to develop the design and styling.

Once completed, Project MASTER will have accommodation for 12+2 guests across six guest suites, comprising two VIPs, three twins and a 135m2 master stateroom with a private owner’s deck. The owner’s spaces have additional privacy located three decks above the guest suites. Project MASTER will incorporate a 42m2 expedition area as well as two 11.5-metre cranes.

The design has also factored in 800m2 of exterior deck space to accommodate the equipment that will support its aspirations of global exploration, as well as a certified helideck. ICON Yachts hopes that 80 per cent of the original vessel will be reused or upcycled. In accordance with ICON’s ISO 14001 certification, the yard recycles all usable equipment back into the marine sector as spares, or raw material where possible.

Project MASTER will be built to RINA’s green certification, comply with the Polar Code C and feature a new generation

Voith Schneider propulsion system that includes dynamic positioning (DP) as well as zero speed stabilisation.

“There is perceivably a wide spectrum of commercial platforms available,” says Stephan Vitus, head of Project Development at ICON Yachts. “We chose this one because of its age and suitability to have the scope of work undertaken to meet the client’s brief; particularly with the intention to replace the entire propulsion and energy generation systems for a state-of-the-art hybrid configuration.” This system is centred around a diesel-electric power generation plant driving two Voith Schneider propellers. Vitus explains that due to the foil aperture and resulting draft requirement, one does not typically find this system on yachts. Project MASTER, however, has the perfect hull shape that offers the clearance to facilitate this proven propulsion system.

“The prime advantages other than a very energy efficient and quiet installation is the ability for the system to perform in parallel as motion stabilisation underway as well as at anchor. This eliminates the requirement to install foil stabilisers with the corresponding structural and system integration, power consumption and additional cost that these would require.”

Many conversions appear to be stripping away technologies more closely associated with commercial vessels such as tugs. The integration of the latest Voith Schneider technology is a fascinating example of a yacht conversion leaning on commercial heritage to create a unique combination of proven technologies with potentially significant downstream advantages on operations.

The Voith Schneider Propeller specified for Project MASTER uses six vertical foils, each independently adjustable while collectively rotating around a vertical axis. This allows for the 360 degrees rotation of the thrust direction through adjustment of the blades and, like a pod drive, the vessel can rotate on its own axis without the need for thrusters.

Diesel-electric yachts are more accurately marketed for their silent cruis-

ICON Yachts hopes that 80 per cent of the original vessel will be reused or upcycled. The yard recycles all usable equipment back into the marine sector as spares, or raw material where possible.

Top: Ocean Ness on arrival at ICON Yachts. Above : how the vessel will be transformed into Project MASTER.

Right: exploded view of the Voith Schneider Propeller (eVSP).

Photo: Guy Fleury

ing than their green credentials. A sticking point for a conventionally driven yacht is when the thrusters are required. Nothing cuts through a serene marina or anchorage quite like the cavitating machine gun that is a hydraulic thruster at full power fighting a war of attrition against windage. The use of a Voith Schneider Propeller will counter this contradiction. Well-proven and extensively used in other parts of the marine sector, its application here will see an interesting synthesis of commercial technologies and superyacht stylings. With an operational scope that exceeds that of most conventional superyachts, to meet the client’s brief, Project MASTER has been designed for Polar cruising.

One of the major considerations associated with operating in these regions is the effect of ice accumulation and its associated effect on stability.

“These support vessels, especially Project MASTER, have very good initial stability and roll period due to the wide beam and the hull form. Having this stable platform is vital, especially with the requirement to include ice accumulation some 12 metres above the waterline in the final conversion stability projection,” explains Vitus. “Our very initial conversations with the client were focused on an Ice-Class platform, but we moved away from this after evaluating the latitudes that can be reached during summer. Project MASTER is a very strong

vessel and it can reach a long way into the Polar regions before ever needing a full ice-breaking hull.”

While the bridge layout on support vessels such as this has been designed with safety and functionality above all else, it provides one of the most striking design features. “The bridge is like a 100-metre plus yacht bridge,” concludes Vitus. “It is a spectacular space because of the tilted glass and the 360-degree vision. It’s just like a jewel at the top of the vessel.” The other space Vitus is highlighting is the forward observation deck. This 120m2 guest space surrounded by windshields offered great opportunities for the exterior designer and on MASTER this space has been arranged as entertainment and guest lounging area.

Once completed, Project MASTER will have a 9,000-nautical-mile range at 10 knots. The hull and deckhouse exterior will remain un-faired, with painted steel maintaining the commercial aesthetic. With the innovative propulsion and power generation combination, this commercial/superyacht is a true hybrid. JH

“These support vessels, especially Project MASTER, have very good initial stability and roll period due to the wide beam.”

Project MASTER has been designed for Polar cruising.

New challenges for historic newbuild yard

Taking the plunge for a king-size …

Alberto Perrone, refit sales director at large-yacht builder Lürssen, explains why the company is now embracing complex rebuild projects – and how the changing global energy sector could work to the advantage of the industry.

BY MAX STOTT

Lürssen has a 147-year-old history that proves its commitment to breaking records in the new-build sector. On its website, the company claims to have built the first motor boat in 1886, the world’s fastest commuter yacht in 1927, the longest yacht in the world in 2015 and the biggest yacht in the world in 2016. Therefore, as reputations in the new-build sector go, it’s not a bad one. But now, Lürssen is also starting to gain a significant reputation in multiple sectors of the market, especially refit.

“A refit is not just about necessary maintenance, it can also be a way to completely transform a yacht,” says Alberto Perrone, refit sales director at Lürssen. While the shipyard is known globally for its many new-build superyachts, the refit side of the business is just as exciting and challenging for its skilled workforce. “We enjoy the very complex rebuilds and refits. We like it when owners come to us with problems to solve, we want to do the things that other yards steer clear of,” says Perrone.

The past few years have seen some very notable yachts enter one of the many shipyards Lürssen has to offer, with 12 yachts between 70 metres and well over 100 metres undergoing work last year alone. Lürssen comprises a total of five shipyards in northern Germany, an array

of covered sheds and drydocks and a manpower of more than 1,800 including over 450 engineers and naval architects.

This enables the company to build new yachts and transform existing ones alongside each other, using the same skilled workers and machinery, and dedicating the same facilities and expertise as they would to a brand new vessel.

“We know it’s quite unusual for a large-yacht builder to also dedicate its time to refit operations, but it’s actually a big advantage for our clients,” says Perrone. “Our workforce is used to extremely complex and time-consuming builds, so we are much better prepared to overcome any surprises.

“Our time management is worldrenowned, and the workforce is very disciplined in the practice of finding the right solutions, of doing things the right way, which is a crucial advantage when it comes to problem-solving on refits, where there will likely be unknowns.”

There are also five- and ten-year-old Lürssen yachts needing to undergo their scheduled surveys, and being able to take them back to the high-performance workforce that built them has obvious advantages.

One such recent success story was the colossal refit of the 110-metre Kaos, which enjoyed a substantial refit on both

HEALTH CARE CENTRE

“A refit is not just about necessary maintenance, it can also be a way to completely transform a yacht.”

Alfa Nero in Lurssen refit dock.

Photo: © Michael Schmidt

Kaos , ex Jubilee , which had up to 150 people at a time working on the refit.

Photos: Klaus Jordan

the interior and exterior after passing into new ownership. During busy periods, there were around 150 people at a time working on Kaos.

“In order to strengthen our service and refit activities, we founded our own refit company, Lürssen Yacht Refit & Services, so we can ensure our yachts achieve their full potential and life expectancy over the years,” says Perrone. “It enables us to meet our clients’ needs better, look after the yachts like we know how, and it has the added benefit of enabling us to improve and expand our service business.”

The past two years have seen record yacht sales, both in new build and brokerage, and many shipyards are now unable to provide a new-build slot for up to six or seven years. This leaves a large gap in the market for owners who are looking to purchase a boat but don’t want to wait to set sail for several years.

“If there is a yacht out there that broadly works for someone, then we have

the capabilities to make it their perfect yacht,” explains Perrone. “Whether it’s cosmetic interior changes, paint jobs, hull extensions or complete rebuilds, we can do it all in a fraction of the time it would take them to build a new yacht. For some people, it’s the fastest route to getting a new yacht.

“The yacht conversion potential is huge and untapped. Many commercial boats are built on amazing platforms. For example, the oil-drilling vessels are incredibly stable even in big seas because they had to be in their previous lives.” Many of these vessels are only a couple of years old but have been taken out of service due to the changing energy sector and demand for oil in the North Sea.

“Many commercial vessels are large, extremely stable and comfortable and already come with diesel-electric propulsion, so the potential if someone wanted to transform one of these boats is definitely worth exploring, and it’s a

challenge that Lürssen would be excited to take on,” says Perrone.

For many years, Lürssen has been developing and including sustainable options on its new builds, such as reducing emissions through intelligent energy management thanks to an artificial intelligence system that analyses the yacht’s usage, monitors and visualises the power supply and energy consumption and even performs automated power-management tasks.

Making a yacht more energyefficient can be as simple as changing fluorescent lights to LEDs or as complex as installing a heat-recovery system that saves energy by using the heat loss from the generators to heat the pool. Other successful solutions in the past have included introducing motion sensors to reduce light consumption and installing heat-insulating, foil-coated windows to keep the yacht cool and reduce AC usage. Innovations such as these were highlighted and broadcasted by Lennart Pundt, Lürssen’s head of project development, at The Superyacht Forum 2021.

Over the past few years, refit has quietly developed into a core part of the business for Lürssen. Although refit projects will always differ in size and style, the ultimate outcome will always be the same: that the yacht’s life expectancy and performance will be undeniably increased and comparable to that of a new build, and that the core value – whatever that may be for the owner – will be enhanced. MS

“The yacht conversion potential is huge and untapped. Many commercial boats are built on amazing platforms.”

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Future focus on forward-looking sonar systems

Situational awareness for navigation and manoeuvring takes on a new dimension with Wavefront.

Real-time, high-resolution forward-looking sonar (FLS) provides an unparalleled tool for a superyacht. Any vessel navigating in poorly chartered areas, Polar regions or through debris fields is significantly disadvantaged without some form of FLS system.

There have been various iterations of sonar systems available on the wider market for a generation, but few could provide the level of detail that would inspire real confidence from a watchkeeper. The main drawbacks of these early generations of the technology were a lack of resolution and range. When using a sonar system that was limited by these factors, a vessel is forced to move cautiously, despite the read-outs ostensibly displaying the foreground of the vessel.

The technology has come a long way since its inception, as has the number of yachts venturing further afield and into less chartered waters. As any watchkeeper can attest after cruising the Pacific or Polar regions, many of the charts that support these voyages are outdated and inaccurate. Safe and environmentally conscious anchoring requires a detailed understanding of the depths and composition of the sea floor – details that were, in many cases, at best implied by limited and analogue data inputs.

Although FLS systems have been a more common feature for offshore supply, exploration cruising and naval applications, the superyacht industry has been slower to integrate them. Now leading the field, Wavefront has redefined the outermost limits for these technologies, designing systems that can meet the next generation of challenges specific to the yachting industry.

Wavefront’s solution is set apart by its high definition and range, which can allow relatively high-speed manoeuvring

with confidence. From a performance perspective, Wavefront is pushing the boundary of the technology as far as it will go. The Vigilant Forward-Looking Sonar provides real-time 3D images of the seabed and water column ahead of the vessel.

The 1.5km range of the Vigilant 1500 system provides an unrivalled level of resolution at such a range, and detailed 3D resolutions at 600m provide a bridge team with valuable data streams for safe manoeuvring, anchoring and navigation. Having these data input in sufficient time allows the vessel to maintain sufficient speed and, in turn, water over rudders to maintain effective steering.

The simplest solution is to install a Wavefront system, such as Vigilant, into a bulbous bow, as seen in the graphic. Retrofitting these systems during a refit is also relatively easy. Measuring 300mm by 300mm, the projector unit fits into a sea chest, which in turn only needs a power cable and a connection to the ethernet.

As well as off-the-shelf systems, a

custom project that the team is currently developing requires a forward-looking system that can detect semi-submerged containers while travelling at 26 knots. Wavefront has created a system that will detect a container 1.5km away, giving a high-speed yacht the vital minutes to adjust course.

The software is designed to integrate with existing on-board navigation equipment such as ECDIS, and via a standalone display can produce a highly detailed three-dimensional field view ahead of the vessel. With full adjustable limits and ranges imputable, vessel-specific UKC (under keel clearance) and contours colorations can be set.

Along with the Vigilant 1500 and 1000, Wavefront is developing a smaller unit, the Vigilant 500, with a significantly smaller footprint. The 500 is designed for smaller non-displacement superyachts, where technical space is at a premium. Although designed for a shorter maximum range of sonar capabilities, none of the Vigilant models will compromise the resolution or range of the 3D modelling.

THE NEW LUSBEN

BY MAX STOTT

Lusben, Azimut|Benetti Group’s Refit Division, is gearing up to tackle a new challenge that will see major investments over the next three years, with a massive expansion of the Livorno site. It’s an ambitious project that aims to give the brand a stronger international identity, but there will also be a huge upgrade in terms of facilities, technology, services and on-shore and quayside space, with the inclusion of hospitality areas for clients.

Lusben, which began life in Italy in 1956 in its renowned Viareggio headquarters, was taken over 22 years ago by Azimut|Benetti Group. The Livorno site was added in 2004, followed by Varazze in 2019, with the aim of ensuring a convenient offering for the potential market on the French Riviera.

Today, Lusben has a number of major initiatives underway that will ultimately lead to global expansion. The Livorno yard, which handles all the Refit Division’s largest superyachts, is just the starting point for this relaunch project.

The amount of space that is being added is monumental. Lusben recently received the final approval of the drydock area concession, which increases the total surface area from 100,000 to 220,000 sqm (a rise of 120 per cent), with yard space increasing from 55,000 to 90,000 sqm (64 per cent) and the water surface from a highly respectable 45,000 sqm to 130 sqm (190 per cent).

As part of the concession, the yard has also acquired a 180-metre-long floating dock with a capacity of 18,000 tonnes. The number of dry berths will increase from 25 to 35 (40 per cent) and in-water moorings from 20 to 32 (60 per cent).

The expansion plan continues at the Varazze production site, where a comprehensive redevelopment project is being finalised. The site has 15 dry berths plus a technical marina with 12 in-water moorings, and after the redevelopment it will also offer guest facilities and a crew area. Rounding out the facilities is a 400-tonne travel lift, while the site’s accommodation capacity

is supplemented by availability at the adjacent Marina di Varazze, its natural extension.

The historic Viareggio yard has a 600-tonne travel lift and a pressurised, ventilated and heated (up to 70C) paint booth for boats up to 50 metres in length, a 30,000sqm marina, 34 yacht berths, a helideck and crew accommodation.

A challenge that has such ambitious goals requires the solidity of a wellorganised and highly motivated team. Today, the programme to expand the refit division, under the leadership of general manager Giorgio Casareto (appointed a few months ago), sees operations director Alessandro Lazzerini managing operating sites with a view to increasing the quality of services offered to clients, standardising and integrating processes between the various sites and improving the efficiency of the facilities. Working with him are Paolo Simoncini, Lusben Viareggio and Varazze site director, and Alessio Centelli, Lusben Livorno site manager.

“We’re implementing an exciting project full of new prospects that will lead to major new developments,” says Casareto. “By implementing a development strategy characterised by targeted investments, we want to create a company that can provide an even quicker response to our clients’ needs, supported as ever by our suppliers, who have always delivered the highest levels of quality.” MS

Details have emerged that reveal the significance of Lusben’s three-year investment project …

L-R: Alessandro Lazzerini, Paolo Simoncini, Giorgio Casareto and Alessio Centelli.

Reshaping the mould of a dream project

Turning back the tide of time

Pier Luigi Loro Piana explains how his explorer-yacht project came to fruition in just a matter of months.

BY JACK HOGAN

Building a dream yacht takes time. As we’ve seen in recent years, lead times for new-build yachts have extended as the demand has grown. This puts a prospective buyer in a challenging position and poses an existential question: What is your time worth to you? The conversion of the 2006 RINAcertified expedition yacht Aspire, over the space of just nine months, at the Lusben Shipyard in Livorno was a counterpoint to the time paradox.

The new vessel, the 51-metre Masquenada, was delivered to its owner, Pier Luigi Loro Piana, in time for the summer season in 2021 – just a little over the eight months that he had originally – and optimistically – outlined for the project.

Loro Piana, deputy chairman of the high-end clothing company Loro Piana, is a sailor at heart and owner of some iconic yachts, and the decision to pivot to an expedition motoryacht conversion turned a few heads when it was announced.

“We initially developed a project as an exploration yacht very similar to the boat I have now,” says Loro Piana. “My ideal motoryacht was 58 metres, and all of a sudden, when Aspire came on the market, I watched it very carefully and realised that it would be possible to convert it to a project very near to what I wanted to achieve with a new build.”

Loro Piana is clear in his explanation about how the appreciation of the value of time was such a strong guiding principle behind the decision to convert an existing expedition yacht. “That [time] was a great motivation for me. We delivered the boat to Lusben in October 2020, and it was delivered in June 2021, so we could enjoy the summer. If we had decided to build the project from new, the lead time would have taken the delivery into 2023 or 2024. I would lose those years of cruising, and at my age that is something to consider!”

I personally visited Lusben and Livorno for the first time at YARE 2021. Although steeped in maritime history,

and a cornerstone of the industry, I didn’t truly appreciate to what extent boat building was foundational to the region until I saw it first-hand.

The sweeping Benetti and Lusben facilities encompass a range of yachts that went beyond my preconceptions of the Italian shipbuilding industry. Sitting prominently at the end of dock lies Luminosity, the bold hybrid flagship of Benetti custom that, with its hybrid propulsion, marks the next generation of the shipyard's capabilities. Lusben also offered something different for Loro Piana through a project that was innovative in other ways and, crucially, delivered quickly.

“I visited the boat and I saw that the dream was possible, but significantly, it would be done in a matter of months, not years,” says Loro Piana. “I initially was allocating eight months, and it was completed in nine. We completed the project in Tuscany, utilising the incredible infrastructure of the companies that are here, who are able to work very quickly and who are committed.”

Every project has both unifying factors and idiosyncrasies in the way it is approached from both the owner’s team and the shipyard, and Masquenada was no different.

“I was very much involved in this project,” says Loro Piana. “Obviously,

an important consideration for an expedition-minded vessel. If you see the other boat that I was looking at, at the beginning of my new project with Amels/Damen, the concept was very similar to what we have been able to create with Masquenada. However, when you have a permanent crane on the aft deck, the space is committed to those activities. My boat is not committed. Once the tender is launched the crane disappears.”

To have the luxury of a versatile aft deck with respect to storage of tenders and toys that can then be converted into a relaxing space is a defining feature of the vessel.

“There was another issue for me,” adds Loro Piana. “Coming from sailing yachts, you develop a very special relationship with the sea. Normally with a motoryacht you do not have this feeling because you are so far from sea level most of the time. This is exactly what my wife and I did not want.”

The feeling of proximity to the water is obvious on a sailing yacht. The way that the water hits a window or a porthole, and the connection that gives you, is a feeling that Masquenada, with its distinct low cabin layout, transplants across dreamscapes.

I was hesitant to ask my final question. It has only been a few years

“I visited the boat and I saw that the dream was possible, but significantly, it would be done in a matter of months, not years.”

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Refit is our business.

Our vocation is to make it happen. Precisely.

everyone has their own roles and needs to apply themselves. Having my captain at the time on site was important also. It was beneficial to have my experienced team following and helping Lusben. It was not one team against another, there was a commitment from both sides. Personally, I was visiting Livorno once a month, so there was a big investment of time from my side.”

Masquenada had strong bones to build upon. The end product has expanded upon this to create an expedition yacht that offers more than just ocean-crossing pedigree and long cruising ranges.

“It has been engineered for extreme conditions, but I have no intention of pushing it and going to the Poles at this stage,” explains Loro Piana. “However, it does have a double hull structure, which very few explorers have. It has just completed its first crossing of the Atlantic, experiencing some large seas up to five metres, which were handled well.”

When we speak about the future and the plans for Masquenada, one region in particular takes up most of our time. “I want to know more about the Pacific,” says Loro Piana. “I can see us spending multiple seasons there before heading back across northern Australia, Indonesia and into the Indian Ocean. This is the luxury that Masquenada gives us. All these wonderful destinations, I want to enjoy them and not rush. I don’t want to try and cover thousands of miles a week.”

Attempting to give any of the island groups across the region the time they deserve requires all the cruising and attention of a long Mediterranean season. As Loro Piana mentions, spreading the vessel across wide areas and rushing between destinations does a disservice to the complexity and details that define the Pacific, as well as the capability for comfort and adventure that is in Masquenada’s DNA.

When referencing Masquenada’s specific design features, there’s one in particular that Loro Piana is proud to highlight: the expansive aft deck and, more specifically, the folding crane that makes this space so versatile.

“One of the key features is the way the crane stows flat on the aft deck to allow the helicopter to land on the aft deck,” says Loro Piana. “This was

Masquenada has just completed its first crossing of the Atlantic.

since the loss of Loro Piana’s custom sailing yacht My Song, the 40m Baltic vessel that was lost in rough seas during transport across the Atlantic. So how much sailing will he be doing in future?

“I love sailing. When I lost my boat three years ago, which was a terrible tragedy, I will admit that this was the lowest moment of my life,” says Loro Piana. “My Song was a perfect compromise between comfort and speed, but to build her again would take many years. So I decided that maybe now is the time when we will go sailing on a specialised smaller racing boat during regattas and races, and leave Masquenada for cruising, exploration and relaxation in places like the Pacific.”

The next steps for Masquenada, and the way it has reshaped the mould for delivering a dream project, will be fascinating to watch. As the yacht embarks on its next voyage, it has left a legacy of innovation and speed of delivery that proves that there are many paths to success for those willing to think outside the conventional limitations of design and build processes. JH

The yacht has left a legacy of innovation and speed of delivery that proves that there are many paths to success for those willing to think outside the conventional limitations of design and build processes.

A new trend in real estate buying US refit

GOING, GOING, GONE!

BY KEVIN KOENIG

Marinas and refit yards in America have recently been snapped up in droves by massive, publicly traded corporations. So what are the factors behind this remarkable spending spree?

Lately, it seems that wherever one looks, there’s a press release announcing a shiny, new purchase of an American refit yard or marina by a large corporation. All the usual suspects are involved here. The most commonly heard names among the purchasers are Safe Harbor, Suntex, MarineMax and OneWater. And the entities being snatched up include some of the most iconic names in the US such as Rybovich, Bahia Mar and Lauderdale Marine Center (LMC).

But what’s driving this trend? Historically, the yachting industry has been mainly small-business-oriented, with all the requisite charms and unavoidable inefficiencies that come with it. Why now have the big boys decided to swoop in and bundle together phalanxes of otherwise unrelated boatyards?

The easy answer is good oldfashioned American consumerism. There is money to be made. As is well documented, boat sales went through the roof during the pandemic, and all of those boats will need a place to live, as well as somewhere to go for repairs. The margins for housing and refitting boats are much more lucrative and dependable than for building them, as there is less dependence on an owner’s whims. There simply aren’t as many last-minute changes or deals falling through.

Secondly, Florida, the nexus of the American boat business, is booming. “Florida is projected to have a population jump from 21 million to 26 million in the next decade,” says Phil Purcell, CEO and president of the Marine Industries Association of South Florida (MIASF), which owns the Fort Lauderdale International Boat Show. “And five per cent of Floridians own boats, so you can do the math.” (It’s 250,000 new boats in Florida by 2033.)

But a more overarching view shows two very different paths to maximised profits for shareholders. One of them is taken by more traditional marine com-

panies such as MarineMax, while realestate investment trusts (REITs), like Safe Harbor and its parent company Sun Communities, have a very different angle.

No company in the marine industry in recent memory has gone on quite a buying spree as MarineMax has over the past few years. The company, based in Clearwater, Florida, has 100 locations worldwide – 60 of them in the US, of which about 20 are in Florida. It has either acquired sales rights or outright ownership of a litany of boat brands such as Cruisers, Intrepid, Wider, Ocean Alexander, Boston Whaler and MJM, among others, and has recently made a concerted push further into the big-boat space, with acquisitions of Fraser Yachts in 2019 and Northrop & Johnson in 2020.

With a good footing in the megayacht sales and management space, buying a place to dock and repair the boats was the next logical step. To that end, MarineMax recently announced the purchase of IGY Marinas, which includes Yacht Haven Grande Miami at Island Gardens.

“MarineMax used to just be ‘the Sea Ray dealer’ to a lot of people, but we have consciously been trying to diversify, and that certainly includes superyachts. We want the biggest and best superyacht portfolio in the world,” says Chuck Cashman, the company’s chief revenue officer. “Marinas are a big part of that, and service and refit are huge too. There will be close to 1,000 big boats launched this year, meaning over 24 metres, and it’s not like the old ones go away. Island Gardens has 50 berths and can take boats up to 550 feet [167.6m] with a 27foot [8.2m] draft, and it has room for transients. Plus, it was already pretty nice when we bought it. We don’t look for broken companies, we want best-in-class companies that we can help.”

Cashman sees yards specifically dedicated to refits as the next big push, although he understandably did not mention any potentially targeted acquisitions. “We have a small refit yard

These boatyards are tempting to large, public companies because after initially high fixed costs (particularly when building hurricane-proof docks), they have reasonably low overheads and provide a consistent stream of revenue, in large part due to customer loyalty.

in Dania Beach [Florida], and another location in Swansboro, North Carolina, that can handle boats up to about 120 feet [36.6m] looking to avoid the Florida hurricane season, and with our megayacht management teams utilising all the major refit yards, we will see what’s next.”

For Cashman and MarineMax, owning properties, as opposed to just selling boats, is hard-won wisdom. The CRO remembers the lean times of the last financial crash and sees the property purchases as insurance against them.

“[Owning the yards] takes the cyclicality out of it, that’s a lesson we learned after 2009,” he says. “The businesses that had slips and marinas did a lot better than the businesses that didn’t.”

James Brewer, managing director of Fort Lauderdale’s Roscioli Yachting Center, which was acquired by OneWater for $S30 million in 2021, echoes Cashman’s statements. OneWater follows similar principles as MarineMax, hardly surprising considering its president, CFO and CTO are all MarineMax alumnis.

“OneWater needed a service yard for its Sunseekers,” says Brewer, referencing another of the conglomerate’s holdings. “And Roscioli was a reasonably sized service centre that could cater to those boats. We were the right play at the right time.

“In 2005, Bob Roscioli had done an expansive renovation of the facility with eight self-contained bays and a 300ton mobile lift. For big players in the industry, like OneWater and MarineMax, they are trying to expand and fill gaps in their portfolios with these refit yards and marinas, to increase their standing in the industry.”

Of course, not every major player in the marine industry is necessarily a marine company first. Both Suntex and Safe Harbor are REITs, investment vehicles that specialise in owning income-producing real estate across property sectors. Suntex has gone on a buying spree in the past few years, shovelling marinas into its portfolio at seemingly every turn, bolstered in large part by a merger with competitor Westrec earlier this year.

However, Safe Harbor is the more interesting case study as it has spread its aegis over not just marinas, but also major refit yards such as Lauderdale Marine Center, West Palm Beach’s Rybovich and the Newport Shipyard in Rhode Island.

Safe Harbor. Lauderdale Marine Center.

To maintain their special tax treatment as a REIT, these companies need to ensure that at least 90 per cent of their income is generated by real estate. As inspiration for how to run superyacht yards as a REIT, executives looked to an unlikely source – trailer parks. REITs that own trailer parks and recreational vehicle parks own the land and lease out spots, plus utilities, to renters. They realised that the same model could be applied to marinas and shipyards, putting in slips and workspace for contractors and subcontractors.

These boatyards are tempting to large, public companies because after initially high fixed costs (particularly when building hurricane-proof docks), they have reasonably low overheads and provide a consistent stream of revenue, in large part due to customer loyalty. This customer loyalty is mainly achieved through investments in crew facilities, as captains generally decide where a boat will stay. Rybovich, for example, is a favourite among crew thanks to a pool, state-of-the-art gym, yoga lawn and a concierge service. And Lauderdale Marine Center is not far behind.

“We like people to know that we are sister yards with Rybovich,” says Frank Gernert, director of facilities at LMC. “There’s a streamlining effect. Memberships allow boats to go down the coast from one Safe Harbor facility to the next, and because the boat is in our system, we have all the service details

and get a good handle on the boat’s history and what needs to be done.” It’s a system that also happily eliminates headaches for captains, as well.

Despite this mini-monopolisation of boatyards, there is little talk of raising fees because these buyers all say they are in it for the long term and, therefore, are enjoying a slow burn when it comes to revenue. “Fees have stayed the same,” says Gernert. “We charge by the foot and there can be variables to that, but rates aren’t going up. Safe Harbor has done a great job of applying economies of scale to the marine business.”

Others across the industry see outsized advantages to large-scale corporatisation. “I think it’s a great thing for the industry,” says Bob Denison, whose family’s famed brokerage, Denison Yacht Sales, was sold to OneWater last spring. “I think this consolidation of ownership provides a better customer experience, and I think one of the things that will happen is we will see the ability of these companies to roll up their technology and get the systems and processes in place to be superior to any of the smaller owners that existed before [the larger companies] came on to the scene."

Selling was easy, says Denison. “What we found with OneWater was normal, smart, good people who made an interesting offer and let us maintain a level of control in the company, including branding, staff and management.” OneWater, like MarineMax, runs on the ‘if it ain’t broke, don’t fix it’ principle, and so far it seems to be working well for everyone involved.

Some rumblings of fear among industry insiders point to the fact that these REITs are, after all, real-estate companies, and might be more interested in turning iconic boatyards into just another waterside buildings complex. But it seems unlikely that will happen, even if rules and regulations permitted it. What these big companies identify in boaters is an avid and passionate community, and of course not everyone has a dock at their house big enough to support their boat.

The smart money with the boatyards then, is the long money. The business of boating saw a massive boom during the pandemic, and – to echo Cashman’s sentiments – those yachts aren’t going anywhere. KK

“I think we will see the ability of these companies to roll up their technology and get the systems and processes in place to be superior to any of the smaller owners that existed before [the larger companies] came on to the scene.”

Bob Denison.

GYG Ltd ‘stronger than ever’ despite leaving AIM

Remy Millott, CEO of GYG, provides insight on the decision to de-list from the Alternative Investment Market of the London Stock Exchange.

BY MAX STOTT

GYG Ltd, the superyacht painting, service and supply company, recently de-listed from the Alternative Investment Market (AIM) and returned to life as a private company. Despite trading in the first half of 2022 being in line with market expectations, and delivering a strong EBITDA performance (earnings before interest, taxes, depreciation and amortization), a variety of factors meant that the cost and inconvenience of being publicly listed were no longer generating sufficient benefit for the company.

Valuation volatility, geopolitical factors and the compatibility of the requirements for transparency within public markets and clients’ discretion were the main contributing factors influencing this decision.

Although the Covid pandemic significantly affected the majority of businesses listed on AIM, GYG was one of the few companies that was able to maintain operations and report impressive revenue growth and profitability throughout the period. However, despite this recent display of strength during a period of uncertainty, external influences and geopolitical tensions in Europe over the past six months meant that many businesses in the yachting industry were forced to reassess and adapt.

The sensationalist and predominantly negative press coverage surrounding the superyacht market following the sanctions fall-out meant that companies such as GYG suddenly became less appealing to potential investors in a very short space of time.

Remy Millott, CEO of GYG, explains, “There was a lot of negativity regarding any company that worked in an industry that might have an association with Russia. So we decided to take a step back and take stock and we are very confident this was the right decision for our business.

“Typically, when you de-list a company, the share price falls off a cliff and everyone runs for the hills. In our case, 98 per cent of our shareholders voted to maintain their shareholding in GYG as a private business and that’s because they still recognise the substantial opportunities and they still like the business.”

Millott adds, “Ownership is now concentrated amongst management and three global institutional investors and we have received a lot of interest from people in the industry who want to buy shares in GYG. At the moment, the company is stronger than ever, and we have a lot of firepower at our disposal, so we are excited to start this new chapter.”

Unfortunately, for most publicly listed companies in the superyacht industry, strict NDA contracts typically tend to prevent stakeholders from being fully transparent with the public market. For example, once a major contract is signed for a large new build, only certain details, such as the name of the shipyard and the LOA of the vessel, will be made public.

Other information, such as the name of the yacht and the identity of the ultimate beneficial owner, must be kept private. This massively downplays the significance of any share-price news updates being communicated through a stock exchange announcement.

With GYG Ltd no longer having to comply with onerous regulatory requirements, the focus now will be on expanding the business in the most sustainable and cost-effective manner possible. Millott hinted that over the next couple of months there will be an array of excit-ing announcements showcasing the company’s intent to strengthen its green credentials while continuing to deliver the highest quality service in the market.

“Right now, the priority for me isn’t about how much revenue we are doing, it is about the quality of the earnings for the group,” says Millott. “Our goal is to deliver the best quality and the best service for the best yachts on the market. I feel that we already have the best reputation quality-wise, but we want to build on that and maintain it while we make the most of our expansion opportunities.”

While this move is a testament to the company’s ability to adapt and recalibrate in an uncertain and everchanging market, it also reveals the true breadth of the challenges facing even the most reputable companies in the superyacht industry today. MS

Remy Millott, CEO, GYG.

Photo: © Stuart Pearce

“At the moment, the company is stronger than ever, and we have a lot of firepower at our disposal, so we are excited to start this new chapter.”

‘Refit is a hard job … but we’re here to help’

Lloyd’s Register surveyor Wilfredo Cedeño shares his experience and offers advice for superyachts contemplating a major refit.

With 19 years’ experience as a Lloyd’s Register surveyor, and a career bridging the passenger, shipping and yachting sectors, Wilfredo Cedeño has seen the industry evolve. A major refit is one of the most significant challenges that a yacht will face in its lifetime, and navigating the regulations and shipyards while also attempting to meet an owner’s ambition is extremely challenging.

As many captains, engineers and senior crew can attest, a Class survey can be daunting. Acknowledging this, Cedeño says, “Refits can be confusing for captains, crew and managers. There has been the change from LY1 to LY2 and LY3 [Code of Practice for the Safety of Large Commercial Sailing and Motor Vessels] in recent years. On top of that we have every other individual flag with their own codes to consider. You may very well feel you need a lawyer relatively quickly! Regardless of whether you feel you need to go this far, my advice is to certainly have somebody involved who is conversant with all of the codes.”

“The

at Lloyd’s Register consider a refit.” “Many superyachts will use the time of a special survey, such as a five-year, to complete some works and then call it a refit. There is no issue with this. However, for us, a refit is a modification, upgrade or a major structural change. For example, an owner may want to take their boat to polar regions or increase the passenger capacity, or they may want to increase the generator capacity because they realised over the summer that they did not have enough air conditioning!”

The refit, as defined, leads to modifications that can affect a vessel’s compliance and this is where many may find themselves on the dreaded wrong side of a non-compliance. To this point, Cedeño stresses the need for foresight and to keep one key question in mind:

How does what the works being undertaken affect compliance?

“This is the key consideration when you are doing a major refit: how is this going to affect the compliance with regulations? This may sound simple but many operators are not aware of the downstream consequences of modifications. It’s not just a case of showing up to port and getting in touch with a surveyor.

“The most important advice that I would give to help with this is to appoint a project manager. A major refit must be treated as a project much like a new build, and managed as such. For a captain on a 34-metre this may all be manageable with their workload, but for large yachts, aligning this level of works is a big undertaking and can be very timeconsuming and costly. Having someone who is fully conversant in the regulations involved in the project is very important.”

The workload associated with a major refit can become excessive for a busy crew. Failure to consider the myriad variables that make up a major structural change and its associated classification process can be extremely costly, in terms of both time and money.

best place to start is with what we

Cedeño highlights that, in his experience, superyacht refits tend to be approached in a relatively ad-hoc manner compared to other marine sectors. Lloyd’s Register, as with the majority of reputable classification societies, has an extensive network of offices and expertise worldwide, and, as Cedeño explains, superyacht refits may require coordination across borders and departments.

How does a project manager benefit a major refit?

“I come from a commercial cargo background, where a refit is a major undertaking and is taken very seriously,” says Cedeño. “The coordination of so many different departments, and the tight timeframes, make a project manager imperative. A project manager can also be a point of contact with the Lloyd’s Register Client Facing Office (CFO). We have our offices around the world with different specialisations. Major refits may need the input from many of them at once. A project manager, in close contact with us, can manage this ahead of time.

“We are working on a superyacht refit project now where the yacht had booked two months in a shipyard, which, when our surveyor arrived, was also the first time that we saw any of the drawings. Very quickly we have had to tell the captain and management that they will be out of the water for at least this winter, if not longer. This could have been anticipated and managed with a project manager and efficient forward planning.”

As a surveyor with experience across the marine industry, what are some of the common trends and common oversights that you are seeing concerning superyacht refits?

“A common major modification for us now on larger yachts is the installation of a ballast-water-treatment plant. However, this is not the same as installing a refrigerator! On yachts in particular, where space is at a premium, these systems will be installed in an area that had another purpose. We will have to covert a storage space into a technical space. We see yachts showing up in port and seeking approval on the spot for a modification like this, which is not realistic.

“There are some things that we obviously see only on yachts, and they can be fun projects: yachts wanting to retrofit a jacuzzi on the sundeck and forgetting the stability considerations of putting four tonnes of water that high; yachts extending the transom for a new beach club but not considering the effect on rudder position and turning radius; vessels replacing the interiors and going commercial but not thinking to change the insulation that now must meet a different standard. All of these unique requests can be addressed and approved, but it is much easier with early communication and project management.”

What advice would you give a superyacht in selecting a shipyard for a major refit?

“Many larger yachts are returning to the new-build shipyards, like Lürssen and

Oceanco, for major refits. This is great from a project-management perspective as these yards have the teams in place. We see issues arising when yachts head to places like STP and Navantia, to give examples from Spain, expecting this same level of project management.

“These yards are very good at what they do, they will expertly put the vessel on the hard stand and work with the captain and engineer to accommodate the works. However, you will need to approach them with the exact set of specifications and instruct them exactly what you would like to have done. This leaves room for non-compliance with Class if there is not a project manager or person in communication with us.”

Do you feel that there is enough appreciation and understanding of Class during major refits?

“In general, we find that there isn’t a deep understanding of the regulations. But that is okay, I don’t blame the operators or the shipyards for this. That is what we are here for. We spend a lot of our time at conferences and technical forums to stay ahead of all of these changes and modifications to regulations.

“My final piece of advice would be to never underestimate a refit. We should always think ‘What is the engineering perspective? What is the safety perspective? What is the stability perspective?’. It’s very common to not understand the full implications of refit, and I would be hesitant to blame a shipyard or a crewmember for missing something. It’s a hard job and it needs to be taken seriously, but we are here to help.”

“For us, a refit is a modification, upgrade or a major structural change.”

Are we finally realising that Eastern Promise?

BY JACK HOGAN

Since its inception, Porto Montenegro has developed into one of the most intriguing superyacht destinations. The Adriatic and Eastern Mediterranean has subsequently cemented itself in the yachting calendar as a less travelled and, therefore, more rewarding cruising ground, with Porto Montenegro offering a high-standard marina and overwintering option.

The missing piece to the infrastructure puzzle was a refit facility that could complement the cruising and berthing capabilities. After many years of development, Adriatic42 – a joint venture company between PM Holdings LLC, an Investment Corporation of Dubai (ICD) company, and Drydocks World Dubai, a DP World company – has officially been launched.

The announcement marks the beginning of significantly enhanced operations at the facility in Bijela, Herceg Novi, Montenegro. Black Pearl, the world’s largest sailing yacht, became the first boat to dock in Adriatic42’s superyacht yard for its ongoing refit.

The government of Montenegro granted a 30-year concession for the former Bijela shipyard, located in one of the safest natural harbours in the world, and under Adriatic42’s stewardship, the shipyard is undergoing a comprehensive redesign, transforming it into a premium superyacht refit and maintenance facility.

The launch, in late October, was attended by the President of Montenegro, Milo Đukanović; Mohammed Ibrahim Al Shaibani, managing director of ICD; Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World; Captain Rado Antolović, CEO of Drydocks World and Chairman of Adriatic42, as well as numerous other dignitaries.

The most iconic long-term resident has undoubtedly been Black Pearl. The 107-metre sailing yacht from Oceanco, launched in 2016, is a common sight on the Montenegro coastline. It was fitting, then, that Black Pearl was the first yacht to grace Adriatic42’s floating drydock for the official opening of the facility.

Derek Munro, director at Divergent Yachting and chairperson of Superyacht Charities, is the build and yacht manager for this fleet icon. “The majority of the shipyards in the Eastern Mediterranean are commercial yards that will try to adapt and accommodate a yacht,” says Munro. “What I see at Adriatic42 is a superyacht-specific facility. We have managed refits worldwide, and Black Pearl is difficult to accommodate. With its draft, air draft and DynaRigs are very specific. The fact that they have got it into the floating dock, and it is able to rotate its rigs, is very challenging.”

High winds are a significant consideration for any yachts over-wintering, especially when incapacitated

during a refit. This issue is amplified by sailing-yacht rigs, none more so than the unique DynaRigs on Black Pearl

“We have had the engineers from Dry Docks Dubai involved,” adds Munro. “We have sent them all of the drawings and they have made very precise windage and load calculations for gusts up to 75 knots – not only at deck level, but we needed to know the forces acting 80 metres up on the DynaRigs.

“We have been very impressed so far. It is definitely a place that more yachts should look to, not just because it is a beautiful place, but cost-wise it was significantly cheaper for us than the other three quotes we had and, so far, the quality of work has been very good.”

Adriatic42 already employs approximately 100 staff, who bring a long tradition of maritime expertise to the yard. The former Bijela shipyard, which is nearly 100 years old, was the largest ship repair yard in the Southern Adriatic. The new joint venture will aim to extend this maritime heritage.

At the official launch, President Đukanović said, “From this day onwards, the launch of Adriatic42 puts Montenegro at the centre of the world’s nautical tourism industry. Adriatic42’s comprehensive facility and service offerings from quality repairs and fabrication, as well as moorings, will allow yacht owners to enjoy Montenegro’s

Adriatic42’s new specialist yard, just a few days’ sail from the Suez Canal, may untap the potential of a separate cruising and refit cycle removed from the traditional Western Mediterranean regions.

“The majority of the shipyards in the Eastern Mediterranean are commercial yards that will try to adapt and accommodate a yacht. What I see at Adriatic42 is a superyacht-specific facility.”

Black Pearl

world-class marinas all year round.

“We now have an international standard marina and refurbishment facility in the country, which further positions our nation as a prime tourism destination in Europe and the Mediterranean. Furthermore, Adriatic42 will be a beacon for economic opportunity in the country, culminating in hundreds of jobs thanks to the shipyard, as well as a conduit for specialised small and medium-sized businesses that can support the yachting industry. Adriatic42 represents a massive opportunity for our country, now and in the future.”

Mohammed Al Shaibani added, “The Investment Corporation of Dubai is delighted that the joint venture between its operating business in Montenegro, PM Holdings LLC, and our expert marine engineering partner, Drydocks World Dubai, is being realised through the opening of Adriatic42’s specialist superyacht shipyard.

“Together we’ve shared a long-held ambition to reactivate Montenegro’s former Bijela shipyard in Kotor Bay, and Adriatic42’s new refit and repair facility, with the extraordinary superyacht marina village of Porto Montenegro as its backdrop, will create a unique and unrivalled year-round yachting hub

Captain Antolović concluded, “The opening of this unique facility for the refit and maintenance of megayachts marks the beginning of a new era of sustainable and modern shipbuilding globally. It is also a great boon for the maritime and yachting sectors in Montenegro, with more than €40 million invested in the project to date, including for the acquisition of the state-of-theart infrastructure and investments in sustainable technologies.”

Significant, if nascent, developments in the Red Sea and Gulf States occupy different levels of feasibility. Now operational, Adriatic42 may become a central hub in more diversified refit ecosystem. With a shift east, an established specialist yard a few days’ sail from the Suez Canal may untap the potential of a separate yachting cruising and refit cycle removed from the more traditional Western Mediterranean regions. JH

The Chairman of Adriatic 42, Captain Rado Antolović, explains Adriatic 42’s role in the superyacht ecosystem.

“From this day onwards, the launch of Adriatic42 puts Montenegro at the centre of the world’s nautical tourism industry.”

Black Pearl was the first yacht to dock in Adriatic42’s superyacht yard for its ongoing refit.

in the Mediterranean. This is just the beginning for Adriatic42’s superyacht services, and we look forward to the employment opportunities and prosperity which they will bring to Montenegro.”

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MB92 PORTFOLIO

An unprecedented year for the refit experts has seen the company inaugurate a 4,300-tonne shiplift in La Ciotat and expand into the Middle East.

BY MAX STOTT

The MB92 Group has had an incredible six months. Not only has it announced that it will be joining forces with Al Seer Marine and P&O Marinas to develop a superyacht refit and repair facility in Dubai, but it has also put in place a 4,300-tonne shiplift in La Ciotat. Unsurprisingly, MB92 is now expecting a massive increase in activity and a positive knockon effect on local employment.

It was just before the Monaco Yacht Show that the three companies announced that they had signed a

memorandum of understanding with the view of setting up a joint venture to develop the first dedicated superyacht refit and repair facility in the UAE. The shipyard construction is scheduled for completion in 2026, with superyacht repair and refit services available from next year as the start of this strategic plan.

Al Seer Marine has been looking to develop a world-class superyacht service centre and refit shipyard in the UAE since 2019, and after discussions with P&O Marinas in Dubai, it believes it has found the perfect strategic partner to

bring the project to fruition. Now, with MB92 Group as the third partner and the chosen operator of the shipyard, this new facility will provide an alternative migration pattern for superyachts. JeanMarc Bolinger, CEO of MB92 Group, says, “Creating a world-class refit shipyard from scratch, in the dynamic hub of Dubai and the Gulf, represents a very exciting and unique opportunity for our Group, which has been on our strategic agenda for several years.

“It will enable us to expand the footprint of our first-class facilities and provide our clients in the region with the same level of service and support they receive and expect in Barcelona and La Ciotat. We look forward to presenting the details of this exciting joint venture to our key stakeholders in the coming months.”

Gunther Alvarado, chief operating officer of Al Seer Marine, adds, “Leading this powerful partnership is part of Al Seer Marine’s overall investment strategy and vision for the Gulf region. With some of the most complex superyachts owned and operated in the region, we will have a world-class facility with leading suppliers and subcontractors that will serve their requirements.”

This is, of course, a massive piece of good news for the entire superyacht industry. Once construction is complete,

the Gulf could potentially be just as popular with superyachts as regions such as the Caribbean and The Mediterranean.

Hamza Mustafa, chief operating officer of P&O Marinas, says, “The UAE is the ideal location to service the Gulf region’s growing number of superyacht owners. Dubai has developed its reputation over the years as a top destination for luxury yachting with the creation of several high-end marinas.

“We already look after some of the most exclusive and advanced yachts at Mina Rashid Marina. With the development of a new service centre and refit shipyard, the UAE and Dubai’s offering as a hub for yacht owners will be even more attractive.”

Meanwhile, MB92 La Ciotat’s new 4,300-tonne Atlas ship lift was officially christened by Martine Vassal, President of Métropole Aix-Marseille-Provence, and the inauguration was attended by representatives from La Ciotat Shipyards, La Ciotat City Hall, Région Sud, Département des Bouches du Rhône and MB92.

Speaking during the event, Bolinger hailed the inauguration of Atlas as “a historic moment for our shipyard and for the people of La Ciotat. It’s the beginning of a new era and we are excited to be a part of the continuing development of the site so that it can secure its position as the world’s leading centre for superyacht refit.”

Eight superyachts have already been welcomed since the yard opened its doors at the end of September. The

Left: The new 43-tonne shiplift at La Ciotat.

Below: Jean-Marc Bolinger,

new platform, which represents a total investment of €47.5 million for the Group, has accommodated these yachts for a variety of works and is expected to generate a significant increase in activity for the shipyard with a positive knock-on effect on local employment, whether directly with MB92 or indirectly with the increasing network of local subcontractors.

In addition, local commerce in La Ciotat, such as restaurants, hotels and shops, will see a sharp increase in business, thanks not only to the additional employees on site, but also to the increase in the number of crew staying at the facilities.

In total, it’s estimated that MB92’s activity in La Ciotat will be responsible for more than 900 full-time employees by 2024 (737 direct and indirect employees for the shipyard, 168 employees for local commerce), an increase of close to 50 per cent from 2021, and a large majority will be based in La Ciotat.

Ben Mennem, CEO of MB92 La Ciotat, concludes, “MB92 La Ciotat is firmly rooted locally, with deep ties to the sea and a strong maritime heritage. The shipyard plays a central role in developing career opportunities for young talent and works alongside educational establishments to strengthen this link with our traditions and raise the technicity and professionalism of the local workforce.” MS

Watch Editor Jack Hogan’s interview with Jean-Marc Bolinger, the CEO of MB92 Group.

CEO, MB92 Group.

MB92 Group appoints Jean-Marc Bolinger as new CEO

• Pepe García-Aubert to continue as Chairman of the MB92 Group

MB92, the world leading superyacht refit, repair and maintenance group, announced today that it has strengthened its management team with the appointment of JeanMarc Bolinger as Group CEO.

Pepe García-Aubert, President & CEO of MB92, will continue to play a major role in the company as Chairman of the Board.

Bolinger, a Swiss national, has occupied senior positions within a wide variety of industries ranging from business services, consumer goods, food & beverages to logistics, and has led teams of up to 900 employees. During a career spanning 30 years and three continents, he held executive roles at companies including Danone and Primo Corporation. In recent years he has worked as an advisor for private equity funds, a role that led him to first work with MB92 in 2021 where he helped the Group develop synergies between the company’s shipyards in Barcelona and La Ciotat.

Bolinger is also an active member of the global executive leadership community, YPO.

Pepe García-Aubert said of the appointment: “I am very happy that Jean-Marc has accepted this exciting challenge. He is in a unique position to bring a fresh perspective to our growing sector and will be able to apply his valuable knowledge of the service industry to our developing Group. Jean-Marc will lead the fantastic teams in Barcelona and La Ciotat who have consistently demonstrated their enormous capabilities. They will adeptly support Jean-Marc during this transition period, where their experience and solidarity will prove such an asset, ensuring the ideal foundation for MB92 to continue to thrive.”

Jean-Marc Bolinger, MB92 Group Chief Executive Officer

“Creating a worldclass refit shipyard from scratch, in the dynamic hub of Dubai and the Gulf, represents a very exciting and unique opportunity for our Group.”

Uncovering the new Genoa

The new voyage of discovery

BY MAX STOTT

In Genoa, the idea of flaunting wealth has been frowned upon for hundreds, if not thousands, of years. That’s why the exteriors of the oldest and grandest residential buildings in the city are relatively bland and underwhelming; all the extravagances have been saved for the interiors.

The Genovese, in general, are also sometimes labelled as being less expressive and welcoming than their fellow countrymen, and this stereotype is somewhat reflected in the city’s architecture. When you enter an old home in Genoa, the first thing you walk into is a vast foyer-style room designed for residents who would only partially accept visitors into their home. This allowed them to bring people indoors only briefly before escorting them outside without revealing the rest of the house.

Despite the city having the values of modesty and reserve entrenched in its DNA, over the past couple of decades the region has become famous for welcoming and accommodating some of the world’s most iconic superyachts.

Indications of Genoa’s historical and notorious connection with the sea are littered all over the city – from the birthplace of explorer and navigator Christopher Colombus near the Piazza De Ferrari to the crest of Sampdoria, one of the two local football teams, which depicts a fisherman smoking a pipe. Some brave historians even go as far as to claim that Britain's favourite dish, fish and chips, actually derives from fritto misto, a typical Genovese dish.

Because of this rich and proud history, Alberto Amico, chairman of

Amico & Co, was initially met with some resistance when he first started to attract superyachts to the region. In those days, more than 30 years ago, yachting was a very nascent and misunderstood industry. Today, that sentiment has almost completely shifted.

“It was a big challenge at the start because, as you can imagine, Genoa was not ready for this new industry,” says Amico. “The superyacht industry in Genoa was just a vision that a few people like me and Fabio Pesto, the chairman of Pesto Sea Group, had because we were trying to explore and do some business with this new market.

“In the early Nineties, a big superyacht was considered to be around 40 metres, and at the start we were just picking up clients from places like Rapallo and the French Riviera. Probably 50 to 60 per cent of clients were from Italy. Now, the mayor of the town and the governor of the region are all talking highly about all the businesses that are connected with yachting. But, in reality, this is something that happened after years and years of talking between the stakeholders and the authorities.”

When Amico (& Co) was first opened, Genoa was by no means regarded as a tourist destination. Amico himself notes that until quite recently, it was practically impossible to find a restaurant with a menu that wasn’t written solely in Italian.

In 2006, part of the restored architectural relics of Genoa were put on the UNESCO World Heritage List, and since then the city has continued its transformation into a cultural and artistic destination. This transition has

led to what stakeholders in the superyacht industry in Genoa have been longing for, which is for Genoa to open itself up to new and exciting markets.

Businesses such as Amico & Co, apart from just doing a good job, also need to appeal to a variety of different stakeholders; from senior crewmembers to owners, to management companies, to owners’ representatives, there’s no telling who has the most influence on where a yacht goes for a refit. Although Genoa is still something of a ‘hidden gem’, this tends to help businesses like Amico when they are trying to appeal to crewmembers.

Amico explains, “What is really common for us is that crewmembers come to Genoa for the first time, not knowing what to expect, and they end up always wanting to come back. Even just today, I had a captain messaging me saying he can’t believe how amazing the city is and he is sending me pictures all day of the food and the old buildings. You can tell that they weren’t expecting to feel that way about the city.”

This undoubtedly sets Genoa apart from places such as the South of France and Catalonia which are more well known for their ability to cater for highend markets.

Genoa is a city without frills, and the inner workings of Amico (& Co) reflect that. It’s very much a family business and the company is very proud of the fact that all its work is carried out mainly by in-house workers who are a part of the ‘Amico family’. Many of these workers come from a long line of seafarers and have spent decades working in the facilities.

From its modest beginnings, Genoa, birthplace of Christopher Columbus, has become a key destination for superyachts. Here, Alberto Amico, chairman of Amico & Co, discusses the remarkable qualities that set it apart from the competition.

As the years go by, the skills and experience inherited by these workers have become exponentially valuable. Refitting any vessel is extremely difficult, but to do it with the finesse and quality required for a superyacht is a completely different ball game.

Alberto Amico identified shortage of labour as being one of the biggest challenges facing the entire superyacht industry. “When we talk about the workforce we must talk about the actual ability required to perform the job because everybody is [demanding] the same thing, from Northern Europe to Southern Europe. The refit industry isn’t like it used to be, it’s not just seven or eight months on a medium-size yacht and everyone is relaxed. We have megayachts now that need the work done in a very short period of time. This means we need a much higher density of workers.”

Amico adds, “We are lucky in a sense because we have everyone in-house and they are all very specialised with what they do and they are involved with the whole organisation. In terms of cooperation this means we have something different from the standard scheme of subcontractors. We are seeing that other destinations are now struggling to perform the job because companies from the outside need all the separate planning and advances. They don’t have the same ability to move their workforce in a flexible way.”

A familiar face is incredibly valuable in the superyacht industry and the fact that so many returning clients get to work with the same people they know they can trust is a massive benefit for

“I had a captain messaging me saying he can’t believe how amazing the city is and he is sending me pictures all day of the food and the old buildings. You can tell that they weren’t expecting to feel that way about the city.”

Alberto Amico, chairman, Amico & Co.

the shipyard. Amico notes that, even to this day, a substantial amount of the company’s business derives from positive testimonials and word of mouth.

Amico’s workforce will most likely increase even more now that construction of its new Waterfront Marina has been completed, directly opposite the shipyard and spanning over 43,000sqm of water. With two quays comprising a complex length of 460m and a newly built 70m structural pontoon, it can host 26 vessels up to 110m LOA.

Alberto Amico believes this new development will provide complementary services for crew, managers and owners, and confirm the leadership of Genoa and its territory at an international level.

The fleet is growing massively and new-build shipyards have order books stretching into 2027. This, coupled with the fact that there is an ageing fleet in dire need of being brought back up to modern standards, means that the refit sector will probably have its work cut out in the near future.

The new marina managed by Amico & Co is located inside a municipal area

called “Eastern Waterfont”. For this area, usually known to host the Genoa Boat Show, Renzo Piano Building Workshop projected, designed and donated to the city a huge and impressive project that is going to change the face of the eastern area by giving back the city a view over the sea and creating a living space for all its citizens, a new high-class (fancy) urban quarter scheduled to be accomplished within mid-2023.

In just a few years, the entire coastline of Genoa will look completely different, and the expansion of the superyacht

industry is a major component of this transition. Genoa’s long history with the sea will have a new chapter; it will no longer be considered an ‘industrial’ city but rather will appear as a region more akin to the superyacht hubs found across the Western Mediterranean.

The challenge for industry leaders such as Alberto Amico is to make sure Genoa retains the same substance and principles that make it so popular with the many seafarers who have already recognised it for being the remarkable and exceptional destination that it already is. MS

In just a few years, the entire coastline of Genoa will look completely different, and the expansion of the superyacht industry is a major driving component of this transition.

Part of the harbour at Genoa.

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STP on standby for expansion go-ahead

Joan Rosselló, general manager of STP Shipyard Palma, discusses the future of refit in Palma and the company’s contribution to the Balearic economy.

Palma investment project

BY MAX STOTT

STP Shipyard Palma is an enormous refit and repair shipyard in Palma, Mallorca, with 130,000 square metres of technical space that can accommodate superyachts with an LOA of 120 metres. It’s also quite a different facility in the refit sector because of its ‘open shipyard’ management model that permits users to choose the companies they want to work with.

Most stakeholders will know that STP submitted an investment project to the port authority in 2019 which is expected to hugely benefit the refit sector as well as the wider industry. However, these plans have been in the works for a frustrating amount of time. For this reason, we spoke with Joan Rosselló, general manager of STP, to get a better understanding of the potential for this expansion and the true impact it will have on the Balearic economy.

Since the shipyard opened 15 years ago, it has grown in many respects. There have been some massive investments that include the upgrading of new machinery and the building of new infrastructure, yet there’s still an enormous demand for space, both on the hard and in the water. The vision for the shipyard now involves redistributing workspaces and creating even more space to supply what feels like a never-ending demand.

Rosselló says, “An expansion at STP would respond to the huge demand from yachts currently looking for other destinations due to lack of space at our facilities. This would be an incredible opportunity for the yachting industry in general and for refit and repair companies in particular.

“There are more than 600 companies

registered at STP to work on the 1,000plus yachts that come to the yard each year. To increase that number of boats would have a direct impact on their businesses and on the Balearic economy because each yacht stopping at the yard comes with a crew that has a high purchasing power, even higher than the average tourist visiting the Balearic Islands.”

The superyacht refit sector is sometimes overlooked in terms of its economic value. However, the figures speak for themselves when it comes to STP’s general contribution to the Balearic economy. The superyachts, along with the 600 companies working at STP, are estimated to generate about €250 million directly, €170 million indirectly and an additional €64 million in induced income. In total, STP contributes €484 million to the Balearic yachting industry every year.

Speaking about the yard’s financial contributions, Rosselló explains, “The refit sector is one of the driving forces of the Balearic economy, creating both jobs and industrial activity. We grew by 220 per cent among repair companies, saw a 300 per cent rise in this sector’s workforce and a 250 per cent increase in repair sites.

“There has also been a growth in the quality and quantity of repairs themselves. Yacht repair de-seasonalises and complements tourism, so our business is a continuation of the tourism season. This is an economic activity that Mallorca is excelling at, and it needs further development. Mallorca is now one of the most important yacht repair hubs in the world by number of repair

centres per square metre and in terms of quantity and quality of the service, technology and space.”

There are, of course, some colossal challenges facing the refit sector, and from STP’s point of view there are only so many factors that they can influence. It’s their job to define guidelines and ensure they are respected in order to streamline the proper operation and safety of the facilities but, ultimately, they are not solely in charge of managing the refit and repair projects.

Their main concerns are to do with the surprises that crop up during the refit process and how they can go on to affect the planning and timing for the rest of the season. It’s easy for a chain reaction to occur that affects several sectors and departments in the shipyard, and with more than 2,500 people accessing STP every day in high season, it’s paramount that the shipyard ensures a smooth operation.

Speaking on the challenges facing STP, Rosselló points towards the elephant in the room. “The huge challenge today is the lack of space. This forces yachts to head to other destinations, which not only affects the journey itself, but also changes the budget due to the business model of other yards with their own suppliers, while the quality of the repair is in the hands of the yard manager and their partners.

“This is precisely one of the highestrated aspects of STP. As it’s a yard with an open-management model, each yacht can choose its own suppliers. What’s more, the companies that the captains choose to work with, whether local or foreign, choose the quality level

“Each yacht stopping at the yard comes with a crew that has a high purchasing power, even higher than the average tourist visiting the Balearic Islands.”

Joan

Rosselló, STP general manager.

according to the supplier, manage the repair time and have greater control over the budget.”

In the last Refit Report (issue 210), the main takeaway was the idea that every business at the top of the refit ladder has expressed a desire to evolve their models, educate and offer a more wellrounded lifecycle service proposition. The general consensus was that if a refit yard wants to be future-proof, it needs to focus its efforts on taking preventative and predictive maintenance approaches rather than trying to correct major issues on ridiculously tight deadlines.

This giant transition shouldn’t be just down to the efforts of a few private refit shipyards; it’s up to the owners, crew, management companies, insurers, lawyers, new-build yards and a whole host of other sectors to make this change happen properly and collaboratively. That said, Rosselló believes STP should not solely focus on preventative and predictive maintenance approaches at the expense of more time-consuming, large-scale refits.

“All yachts with their different types

of needs are welcome at STP,” he says. “While it’s true that maintenance or prevention works are shorter and involve less investment, they also entail a greater turnover, while major refits take up space for longer but involve lots of companies, entail greater investment and provide much more revenue to the yachting industry. Perhaps the key is to strike a balance between the two.”

Unprogressive entities in both the political and yachting realms hampered the maturity of the industry in Palma for far too long, and it has always felt as if its enormous potential wasn’t being realised. Hopefully, we’ll soon see action replace anticipation and the superyacht refit sector can continue to develop into a strategic industry that helps fill a hole in the Balearic economy.

Over the next few years, there’s no doubt that the entire bay of Palma will be greener, more profitable and even more appealing to outsiders. The only frustration is that we don’t know how long it’s going to take but, as all stakeholders will surely agree, the sooner the better. MS

“The companies that the captains choose to work with choose the quality level according to the supplier, manage the repair time and have greater control over the budget.”

STP Shipyard Palma.

CHALLENGE CONVENTION.

At The Superyacht Agency, we like to challenge the ordinary and explore the unknown. We create energetic campaigns driven by market insight and intelligence that ultimately form the basis of your business, brand and marketing strategies. If you’re tired of the ordinary, get in touch to see how we can reinvigorate your brand.

CHALLENGE

THE ORDINARY.

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“HI SUPERYACHT INDUSTRY, CAN I HELP?”

BY JACK HOGAN

ChatGTP has revolutionised the tech world in a few short weeks since its release in November 2022. The idea of a chatbot tends to elicit eye rolls from internet users. The obviously fake avatars with bland human-sounding names and faces that offer help are easy to write off as transparent attempts at cost-saving by companies with an online presence.

Developed by open source AI, ChatGTP is an entirely more complex piece of software. As it has filtered out across the media and tech landscape it has continually surprised, shocked and scared those that have used it.

The system works via word association. As opposed to a strict rulesbased AI that may cross-reference a catalogue and look for what may be termed the ‘correct’ answer to a specific task or question, ChatGTP collates vast amounts of text to form the most common word associations to produce a dialogue-based output. The developers themselves are not sure exactly how it is producing some of its answers, but the results are impressive.

To finish this edition, I posed a simple question: How can AI benefit the superyacht refit industry? The following is its response:

“The use of artificial intelligence (AI) in the superyacht refit industry can bring numerous benefits, from streamlining complex processes to improving efficiency and reducing costs.

One of the biggest challenges in the superyacht refit industry is the need to manage a large amount of data, such as technical specifications, material, and labour costs. This can be a timeconsuming and error-prone process, but AI can help to automate and optimise these tasks.

For example, AI algorithms can be used to analyse large amounts of data and identify patterns and trends that can be used to improve the refit process. This can help yacht owners and refit companies to make more informed decisions and reduce the risk of costly mistakes.

In addition, AI can be used to automate the management of logistics and supply chains. This can help to ensure that the right materials are available at the right time, reducing delays and improving the overall efficiency of the refit process.

Another key benefit of using AI in the superyacht refit industry is the ability to improve safety and reduce the risk of accidents. AI algorithms can be used to monitor the refit process in real-time, providing early warning of potential hazards and allowing for timely intervention to prevent accidents.

Furthermore, AI can be used to improve communication and collaboration within the refit team. For example, AI-powered virtual assistants can be used to facilitate communication and coordination between different departments, helping to ensure that everyone is working towards the same goals.

Overall, the use of AI in the superyacht refit industry can bring significant benefits, from improving efficiency and reducing costs, to enhancing safety and collaboration. As the technology continues to advance, it is likely that AI will play an increasingly important role in the superyacht refit industry.”

As we head into the extended Christmas break and look ahead to 2023, I encourage any readers to try this for themselves. The future of search engines, essay- and copywriting may have already arrived. JH

How an impressive new AI could play a role in transforming the refit landscape.

LIVE WELL, WORK BETTER