can forecast the growth of refit and we can see in many shipyards the ageing workforce, so succession planning, apprenticeships and school engagement need to be high on the CEO agenda.
The days of a grandfather, father and son or daughter all working under the same roof is a changing landscape and, somehow, we need to look in the mirror and work out how to give the potential craftsmen and women a purpose and reason to explore our unique world. This goes hand in hand with the need for new crew too.
So no matter how much we invest in shipyard capacity and build new shipyards or expand facilities with better technology and systems, without the human capital we may end up facing some difficult issues when a client finds there are no skills to do the job in the future.
Let’s quickly add into the mix the topic of future technology such as AI, digital twins and robotics. There have been experiments with robotics, especially in the paint sector, but nothing that will replace the labour-intensive process. However, AI and digital twins are both exciting for the simple reason that with the right investment and the right approach, we may in fact see refits and rebuilds being super organised and planned, so less time is wasted in the overall process.
Perhaps our initial strategy should be to be better organised and plan for the future, so shipyards can deliver projects with maximum efficiency, reducing man hours and increasing margins. Once the labour market sees this transition and we start to apply smart technologies, with fewer repetitive reworks or constant manual processes, there may be a new wave of people who see the process of refit, maintenance, repair and rebuild as a cool industry that is all about improving, optimising, future-proofing, upgrading and rebuilding. We need to be fit for the future. MHR
Reinventing the ‘good guy’
Hein Velema, partner at Marstrat Consultancy and secretary general of the Superyacht Alliance, explains why the industry is developing a programme that will set a new standard of performance for owners’ representatives.
Are refit contracts the real fit?
Giovanna Cabbia, partner at Clyde & Co, reiterates her call for negotiations between owners and yards over refits to be given the same care and attention as those involving new-build projects.
34
Don’t gloss over the basics 45
Marine coating consultant Rory Marshall says communication, understanding the process and realistic timelines are the three key principles behind any successful refit paintwork project.
It’s all about the money … just not in the way you think
Rob Papworth, managing director at MB92 La Ciotat, says owners' representatives have to be aware that ‘mark-up’ funds spent by refit yards on investment is not just a strategic choice … it’s a necessity for survival and growth.
Why a pre-refit survey is a good investment
Richard Franklin, managing partner of Yacht Survey Partners, says clear objectives and putting plans in place to meet them will reduce the risk of delays and cost overruns.
Who should you select to manage a refit?
Kevin Laverty, director of projects at Hill Robinson, recommends taking the professional approach when selecting a refit project manager by choosing someone with the required knowledge and demonstrated track record.
83
The Big Refit Brains Trust
CEOs and leaders at established refit yards share their thoughts on where the sector stands today ... and what should be done to secure its future.
The Repair Talk Shop
The Refit Advisory Group, an independent think tank, calls for a more balanced approach to refit that includes more input from captains and owners’ representatives to enhance the overall yard experience.
103
are nothing without the people at our shipyards’
With young people increasingly drawn to digital careers rather than hands-on work, how can we inspire the next generation to fill the ever-increasing skills gap in yacht building and repairs?
‘We
40
Features Reports
Listening comes first 48
In the first of a new series of interviews with industry leaders , Andrey Lomakin discusses the keys to good business in yachting.
The prestige passion projects 61
Martin H. Redmayne discovers there are some stunning modern classic yachts available on the second-hand market for owners who could be tempted to restore them to their former glory.
The ultimate guide to what floats your boat 66
Andy King, naval architect and director of stability & statutory for Houlder Ltd, sets out the key considerations that all yachts must comply with to keep safe … both at sea and in dock.
Safe navigation through the ‘corruption corridors’
77 John McCaughey, of John Francis International, raises the issue of yacht surveying, refitting and refurbishing fraud, and offers measures to mitigate such unethical behaviour.
The bigger the fleet, the harder the challenge 84 Nowhere else in the industry are the strains of the growing fleet and expansion more pronounced than on refit. But alongside the household names, the emergence of refit facilities in less traditional locations signals an industry evolving beyond its established boundaries.
The evolution of YETI
108 We speak with Robert van Tol, executive director o108 Water Revolution Foundation, and Bram Jongepier, senior specialist at Studio De Voogt, who initiated YETI, about the latest version of the Yacht Environmental Transparency Index (YETI).
The Superyacht Report
QUARTER 4/2024
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Alex Griffiths
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Kevin Laverty
Rory Marshall
John McCaughey
Rob Papworth
Hein Velema
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Front cover:
The scale, scope and size of refit projects, as seen at Lürssen’s yard in Hamburg, requires significant resources, planning and people – one of the key topics covered within this Refit edition. Image: Jarmo Pohjaniemi
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Hein Velema, partner at Marstrat Consultancy and secretary general of the Superyacht Alliance, explains why the industry is developing a programme that
will
set a new standard of performance for owners’ representatives.
Refits don’t satisfy yacht owners, and this highlights a broader issue within the industry. A study conducted by Professor Dr Phil Klaus from the International University of Monaco reveals that superyachting is often viewed as less professional compared to other services catering to UHNWIs, leading to mismanaged expectations.
Buyers invest in yachts to evoke feelings of pride and luxury and are willing to spend millions to showcase their success and share their vessels with family and friends. When purchasing a yacht, they expect a gratifying ownership experience.
However, as an industry, we don’t always meet that expectation. Many aspects of yacht ownership involve a complex interplay of issues among various parties, each with different approaches to resolving them. Captains, yacht managers, lawyers, project managers and shipyards often blame one another for delays and budget overruns.
This leaves owners with little confidence in our industry and they are desperate to find someone they can trust. Sometimes they find that person and sometimes
they don’t. If we want to retain our customers, we need to become a predictable, reliable and transparent industry, regardless of whether an owner encounters a ‘good guy’ or not. We urgently need professional standards.
An Economic Impact Study conducted by Deloitte for SYBAss reveals that €2.4 billion was spent on refitting yachts over 30 metres in length in 2022. This represents a significant business and a substantial source of income for numerous shipyards, suppliers and service providers.
Owners spend €8.3 billion operating their yachts; however, this amount doesn’t include the €2.4 billion allocated for refits. The costs associated with maintaining a yacht in good condition often come as a surprise to owners. Frequently, the bills presented at the end of a refit are significantly higher than anticipated, leading to frustration among owners. In response, they often attempt to cut costs, although these decisions are not always made wisely.
Everyone with experience in yacht operation and refits knows how
challenging it is to persuade owners to establish an appropriate budget. However, I believe that if we were more predictable, reliable and transparent, owners would encounter far fewer issues when it comes to allocating the necessary funds for maintaining a quality yacht. There’s ample evidence that owners are willing to spend money if they have confidence in the process and believe they are receiving value for their investment.
It would be easy to place the blame on the refit shipyards as they are the ones issuing the bills. However, as we’ve seen previously, shifting blame only exacerbates the situation and ultimately drives away our customers.
The outcome of a refit depends on the preparation, contracting and management of the project, as well as the performance of both the shipyard and the contractors. Therefore, both the owner’s side and the shipyard’s side must maintain high standards to achieve a successful result. Poor representation from the owner cannot be offset by a competent shipyard … and vice versa.
We recently launched the Owner’s Representative Register for new builds and opened it to experienced professionals. However, I was taken aback by the incompetence displayed by many applicants.
The refit shipyards have taken a significant step forward with the introduction of the ICOMIA Superyacht Refit Contract. This contract model is undoubtedly the most widely used and is endorsed by the most reputable refit yards. Standardised contracts play a crucial role in establishing clear expectations. Now it’s time to take the next step: we must clarify what can be expected from an owner’s representative.
In the new-build market, we’ve observed a similar situation. Shipyards frequently encounter owners’ representatives who are unaware of their responsibilities. While these representatives may possess decades of experience in the superyacht industry, they often lack a comprehensive understanding of the construction process and the critical factors that must be managed to successfully complete a project.
In response, SYBAss has initiated the Yacht Owner’s Representative Program (YORP), a four-course training programme certified by the International Association Of Maritime Institutions (IAMI) and managed by the Superyacht Alliance.
We recently launched the Owner’s
Representative Register for new builds and opened it to experienced professionals. However, I was taken aback by the incompetence displayed by many applicants. We’ve received applications from individuals who claim to be owners’ representatives but have never fully represented an owner in a new-build project.
Many believe they can serve as an owner’s representative simply because they have experience in the yachting industry and possess some technical or operational knowledge. They lack a fundamental understanding of the responsibilities, processes, legalities and managerial skills required for the role.
While we’ve received impressive CVs, the verification we carry out often reveals that their actual involvement in construction projects has been significantly overstated. Anyone can label themselves as an owner’s representative but distinguishing the competent from the incompetent is challenging. How can we expect an owner to recognise the difference? We need to establish professional standards.
The role of the owner’s representative in refit is perhaps even more critical than in a new-build project. The primary
challenge for an owner’s representative is managing the scope of a refit project, starting with thorough preparation. We can draw valuable lessons from the process of lengthening a cruise ship.
The entire operation, from the moment the ship arrives at the dry dock to when it is approved to return to service, can be completed in as little as nine weeks –all due to meticulous preparation. While a superyacht is not a cruise ship, the importance of investing in comprehensive refit preparation is often underestimated.
We need to come together with knowledgeable and experienced owners’ representatives and refit shipyards to establish a professional standard. What are the responsibilities, best practices and essential skills of a reliable owner’s representative?
Together, we’ll develop a course and register that provides owners with the clarity they seek. And please don’t tell me you have 20 years of experience and don’t want others to advise you on how to do your job. If you’re as skilled as you believe, if you’re as good as you think you are, join us to make our industry a better one – now and for the next generation. HV
Guest Column
by Hein Velema
|mage:
Guillaume Plisson
|mage:
YachtShot
Image:
Damen Yachting/Amels
Industry leaders' insights
THE BIG REFIT BRAINS TRUST
CEOs and leaders at established refit yards share their thoughts on where the sector stands today ... and what should be done to secure its future.
Refit is defined by its challenges. It’s in a constant state of emergency and the pressures it creates can’t be replicated in other parts of the industry. It requires resilience, adaptability and, above all, collaboration. Here, shipyards, captains and managers work side by side to meet tight deadlines and client expectations that leave little room for error, and there’s the dedication of teams who know that delivering immaculate work under immense pressure is the standard. From a shortage of skilled labour to the plethora of supply-chain logistics and
complexities of managing projects across global waters, those who work in refit know that success here needs more than resources or expertise. It requires a unified front from the bottom of the supply chain to the owners, amid a changing world and an industry battling against uncertainty. However, for all its pressures, there’s a rare camaraderie in refit that’s hard to find elsewhere. Even competitors understand that they share the same obstacles and, more often than not, common goals. This became increasingly clear while discussing the current state of the market
with some of the most renowned names in yachting.
These captains of industry shared with us their greatest fears, the relationships and professional mechanisms they would change and, perhaps most importantly, how they are actively preparing for the future.
Simply put, refit professionals are the backbone of the industry and the future of yachting rests squarely on their shoulders. Without their expertise and commitment, the industry would, quite literally, fall apart.
WHAT
ARE YOUR BIGGEST CONCERNS, FRUSTRATIONS OR THREATS IN THE REFIT SECTOR?
PEDRO PAIVA DIRECTOR
FEADSHIP REFIT & SERVICES
The demanding time frame and everchanging nature of a refit project is a threat in itself. As such, every project will have its specifics but by working as a team with the client and the crew, we’re able to prevent setbacks, accommodate changes and find solutions. The main point of concern is the OEM supply chain being geared up and ready to support the refits anywhere in the world as much as they’re ready to be engaged in new builds.
EVAN KORTMAN CEO BALK SHIPYARD
One of the challenges that the refit sector faces is the advancements in new build. This year, the world’s first hydrogen fuelcell-powered superyacht will be delivered. Our job as a refit yard specialising in superyachts is to have the expertise to continuously maintain and repair the superyacht fleet. This means we have to stay on top of the developments and train our staff. We simply can’t afford to sit back. We must be open to keep improving so we can always provide our customers with the required quality.
Our job as a refit yard specialising in superyachts is to have the expertise to continuously maintain and repair the superyacht fleet. This
means we have to stay on top of the developments and train our staff. We simply cannot afford to sit back.
THE BIG REFIT BRAINS TRUST
MICHEL COENS HEAD OF REFIT & SERVICE DAMEN YACHTING
Capacity, over-promising and expectation. The growth of the global superyacht fleet has, of course, been very positive for our industry and, in turn, has created a fantastic potential refit market, whether that’s in refitting or upgrading an owner’s existing yacht or a yacht newly acquired on the brokerage market. But with both of these, there comes a number of challenges. A larger fleet means a larger pool of opportunity but also means a higher demand for refit slots.
Every refit is so unique that yards need to be able to either find the perfect refit in scale and time to fit slots they have or need to limit the refits they can offer to very set parameters. This can lead to yards over-promising on time frames to simply make sure they fill the refit slot rather than focusing on what the client is really looking for, and it means clients tend to ‘shop’ based on
Every refit is so unique that yards need to be able to either find the perfect refit in scale and time to fit slots they have or need to limit the refits they can offer to very set parameters.
JOEL SHINE CHIEF COMMERCIAL OFFICER DERECKTOR
slots, location and time frame rather than the end result they want to achieve.
Sometimes the client might not want to hear that the work they want done needs six weeks longer than they really have, but we have a duty to have honest and frank conversations with our clients to ensure we lay out and agree on expectations.
Understanding what the client really wants – for example, the complete wishlist or to be back out on the water by a certain date – is the fundamental basis of what we do as a builder, and this should be the base point of every refit. Coupled with that is also the rising number of yachts we’re seeing where the as-built documentation is not necessarily available or even sometimes not made available.
Refits always come with a period of discovery, especially when it comes to rebuilding, but there’s no standardisation across countries and yards when it comes to what documentation is available and the shape it needs to be in. It means both refit yard and client can be left open to the risk of unwanted surprises.
A primary concern for our two Florida shipyards is balancing project timelines with client expectations. Yacht refits are inherently complex, involving multiple specialised trades, custom com-ponents and unforeseen challenges that arise as the vessel’s condition becomes clearer during the process. The pressure to deliver high-quality work on tight deadlines without compromising standards is a constant challenge.
Derecktor is known in the industry for maintaining a large number of inhouse trades, which allows us to meet client expectations more effectively than shipyards that rely heavily on subcontractors. However, one of our biggest challenges is the availability of skilled labour. As the demand for refits continues to grow, ensuring access to a workforce capable of upholding the highest standards of craftsmanship and technical expertise remains crucial.
One of our biggest challenges is the availability of skilled labour.
As vessels became larger over these past two decades, the finite restriction on docking space requires owners to investigate a space for Class survey, repaint or refit much earlier than is customary today. Failure to secure space early enough doesn’t make sense to a shipyard, and for the industry – the yards, the subcontractors and suppliers –organisation and mobilisation of the workforce and materials means better assurance to meet redelivery dates. For the UBO, their team and crew, this would make for a stronger partnership and missed contractual dates less likely.
NORINA EDELMAN CEO AND CO-FOUNDER IMM YACHTING
One of my greatest frustrations in the sector is the sense that owner needs are not necessarily driving its development. Traditionally, yachting has been a niche market – more boutique than business, more artisan than industry, more service than profit-centred. But as big business has overtaken the market, this has changed. The central concern seems to be short-term profitability rather than how we can grow and expand to better serve the changing market, the changing owner profile.
The definition of business is to generate profit but this can’t be the purpose of a business. Our purpose should be to serve the vessel, to serve the owner, and my frustration is watching this spirit and priority disappear. Our desire to be responsive to market needs is what led to the creation of European-standard operations in the Caribbean – out of a belief that to best serve owners, we need to be willing to complete works where the boats are, and that, as an industry, we must be willing to do the hard work to make owning a yacht more pleasurable.
We need to be better about standards, transparency, clarity of quotes and invoicing, to name but a few. Organisation and mobilisation of work-force and materials means better assurance to meet redelivery dates.
Yachting has changed. Owner profiles are different, cruising patterns
have changed. The industry must adapt to these realities. Although there are significant barriers for new locations to enter the market, these can be overcome with investment, effort and resolve. After having spent time in the past year running a refit advisory group, whose purpose is to understand what clients would like to see change in refit, it’s clear that the sector is missing the mark. We need to be better about standards, transparency, clarity of quotes and invoicing, to name but a few.
A concern is how we sustain the quality of refit given the increasing size of facilities and worldwide labour challenges. It’s a challenge to find skilled workers at every level today – from project management to skilled labour. To do yacht refit well requires considerable expertise. It’s increasingly difficult for existing facilities to accommodate client needs in reasonable time frames, especially where works were not previewed but are essential (there are, invariably, items discovered during a significant refit period).
A critical component to change this is to invest in training – again, training is something that will ensure long-term success but may diminish near-term returns. Relying on imported labour is not only costly but, even more importantly, it’s also inconsistent with being a good corporate citizen, which requires us to act in ways that boost our local economies. By training locally, spending locally and investing locally, we’re doing the right thing while also ensuring long-term success and profitability.
FERDINANDO PILLI GENERAL MANAGER LUSBEN
THE BIG REFIT BRAINS TRUST
We’re coming off a period of great success in new builds and, consequently, the demand for refit work is increasing. The current risk in the refit industry is not having sufficient facilities and skilled workers to meet this growing demand. Therefore, investing in facility upgrades and workforce training is essential at this time.
TXEMA RUBIO COMMERCIAL DIRECTOR MB92 GROUP
The planning phase is absolutely critical. There’s often a misconception that we have huge quotation teams and that we can just pull a quote out of our hat like magicians. The reality, however, is that early planning is essential to secure the best prices and resources. The time between receiving an enquiry and starting work remains as tight as ever, and the seasonal nature of our industry only amplifies the challenge. During peak periods, supply chains, especially for OEMs, are stretched thin, making it difficult sometimes to secure materials and skilled labour quickly.
We strongly encourage clients to plan months in advance. By doing so, they can benefit from more competitive rates, cost savings and a more efficient project timeline. It all comes down to the ‘five Ps’ – Proper Planning Prevents Poor Performance. The more proactive clients are, the better the outcomes.
It all comes down to the ‘five Ps’ – Proper Planning Prevents Poor Performance.
ALBERTO PERRONE DA ZARA
SALES DIRECTOR YACHT REFIT LÜRSSEN
The biggest challenge to refit work right now is simply a shortage of skilled people. There’s a lack of high-quality professionals in the industry, and there really aren’t many of us to begin with. Because good refit specialists are so scarce, they’re able to command quite high salaries, which means companies like ours can recruit the best talent. We’re sometimes even able to bring in people from new build, which suffers from the shortage even more than we do.
This challenge is particularly tough in Northern Europe, where people tend to be quite realistic about the resources available. When someone asks if we can take on a big refit, we must look at the skilled personnel available and often the answer is “No, we don’t have the resources”. We hear that all the time. For everything else, there’s usually a solution, but skilled people are hard to come by.
It’s easier nowadays to find a brain surgeon than to find someone skilled in sanding wood floors. Skilled trades, the sort of handiwork our industry relies on, are becoming increasingly scarce across the board. The long-term solution is also the intriguing one. In Italy, they’re starting to introduce initiatives that encourage people towards skilled trades, even integrating it into university fees, creating pathways into industries such as yachting. I hear these discussions happening occasionally within our industry but, frankly, I don’t see Germany or the Netherlands taking similar actions. Why that is, I have no idea. There’s a committee within SYBAss (Superyacht Builders Association) focused on these issues. They’re interested in improving the lifestyle of people who work in the industry. I think there’s this general belief that manual work isn’t seen as a desirable career path. Everyone seems to think it’s preferable to sit at a desk rather than engage in hands-on work. This mindset makes skilled labour rarer over time.
GIORGIO CAMPINI
CEO
TECNOPOOL REFIT
The biggest concern right now is that the refit approach varies greatly depending on the type and size of the yacht. We work with vessels ranging from 30 to 150 metres and this range requires completely different approaches, structures and management. Smaller yachts have a different level of planning and resources compared to larger vessels, which means the organisational demands are very different for each. I’ve been in this industry for more than 35 years and I can say it’s become much more cwomplex over time.
Years ago, the relationships were more straightforward. The shipyard communicated directly with the captain and manager but now, especially with larger yachts, we’re dealing with captains, managers, surveyors, technical representatives and even the owner’s accounting team. Each of these needs different levels of detail and management and it’s far more involved than it used to be.
Refit projects aren’t like new builds. With a refit, the yacht is almost ‘alive’, often still occupied by crewmembers, and operates with ongoing energy that isn’t there with new builds. People are
living and working on board, so the shipyard’s approach has to accommodate this environment too.
The movement of the fleet poses another hurdle. More yachts are spending time in the Gulf region and South East Asia, creating a demand for shipyard support in these new markets. We’ve already invested in facilities in locations such as Thailand to accommodate this shift because yachts no longer stay solely in Europe but travel globally throughout the year.
We also face challenges in sourcing skilled labour for these projects, especially with changes like Brexit. Many skilled British workers who used to work in our shipyards now face restrictions, with a limit of 90 days in Europe. This affects us heavily because we can no longer rely on those experienced professionals as we once did. It’s a big mess and it affects both the yards and the crews who need to move around Europe freely, and this is something that urgently needs a resolution between Europe and the UK.
The challenge of finding skilled labour becomes even harder when we think about expanding into new regions too. It’s much tougher than in Europe. We often need to send our experienced team from Europe to train people locally, but our long-term goal is to have fully trained teams in different areas around the world because we can’t expect clients to bring their yachts to us.
With a refit, the yacht is almost ‘alive’, often still occupied by crewmembers, and operates with ongoing energy that isn’t there with new builds.
STEWART PARVIN CEO CANTIERE ROSSINI
One of our primary concerns is the pressure to meet growing demand in the refit sector, particularly as we compete with the new-build sector, which often commands more resources and talent. As the global superyacht fleet expands, specialised refit facilities and skilled labour are increasingly in short supply. This capacity crunch is exacerbated by the rising size and complexity of yachts, which demand advanced infrastructure and highly specialised expertise.
Adding to this challenge is a limited pool of skilled workers, with many professionals gravitating towards larger players, intensifying competition for talent. This makes it crucial to attract new talent and build a steady, skilled workforce to prevent project bottlenecks and delays. Additionally, managing spontaneous requests from owners, without sufficient lead time, can strain shipyards that need structured project management to ensure quality and timely outcomes.
Sustainability also remains an industry-wide challenge. While there’s progress in prioritising eco-friendly practices, there’s still a need for unified industry standards and a collaborative push towards responsible sourcing and green technologies. As regulations tighten, the sector must evolve rapidly to meet environmentally conscious expectations.
THE BIG REFIT BRAINS TRUST
CARLOS ALBONS LLOMPART PRODUCTION MANAGER STP
As the STP Palma shipyard is a technical area for the repair and maintenance of ships that operates on an ‘open slipway’ model, it’s a highly specialised and very high-quality area, where each ship can choose the contractors or companies it wishes to work with to carry out its refit or repair project.
Thanks to this management model, STP receives more than 1,000 ships a year for repair and carries out more than 2,000 travelift movements, so it’s very important – and also very difficult ¬[to manage] – that project start and end dates are met in order for the dry-dock dynamics to run smoothly.
If a ship misses the end date of its project, the ship that was supposed to take its place is unable to do so and it’s up to STP to solve the problem. However, sometimes it’s not possible to reschedule the vessel, in which case the vessel has to change its entire schedule, including the schedules of the companies with which it had already agreed to do the work.
We believe that with good communication between owner, master, project manager and contractors, a lot could be improved to understand the scope of the project, assign real times and get the work done on time.
ALBERTO AMICO PRESIDENT AMICO & CO
The refit industry continues to be buoyant owing to the sheer volume of the fleet to be maintained, yet vessels are ever more evaluating what refits are achievable based on the amount of downtime that the owner would like to have from their yacht. Owner expectation is managed superficially, supply-chain issues remain and requests to assist with large-vessel warranty are growing.
The combination of these effects is already leaving many boats ‘stranded’ –that is with less assistance than necessary. Seasons and periods of use are getting longer; refit, service and vessel idle times are getting shorter.
Planning is now critical. This doesn’t just mean deciding in advance when the vessel programme will stop for maintenance, but also allocating and reserving the yard, the necessary resources and spare parts at least six months before the refit. This only happens for a tiny fraction of boats, well under 50 per cent.
Flexibility in timing is a plus in refit and service because of constant unforeseen events, such as emergent works.
TOBY ALLIES CEO
PENDENNIS
A major industry-wide challenge is ensuring vessels have a clear idea of what they want to achieve before entering a refit period. It’s essential to have a structured approach, with clear responsibilities across department heads and realistic timelines. The best results come when everyone approaches the project as a team, all working towards the same outcome for the client.
We’ve built long-term relationships with many yachts that come wellprepared for their projects, and we take an open approach to these timelines. But not all yachts are on the same page and that has always been a challenge. Communication is, and always will be, the vital component in managing a successful refit.
Looking at the bigger picture, there are always risks, particularly with political changes such as what’s happening in the British Parliament or potentially in the US. The political climate and stability in Europe and the Middle East are on everyone’s radar, with possible impacts on business over the next 12, 24 or 36 months.
We employ 700 people, so issues affecting both employer and employee are key to running a successful business. Brexit, for example, has brought both opportunities and challenges. Operating across Europe and the UK means we’ve had to adapt to new processes, especially with moving people across borders and navigating visa requirements and immigration policies.
IN TERMS OF WORKING WITH OWNERS, CAPTAINS OR MANAGERS, WHAT CHANGES WOULD YOU LIKE TO SEE IN THE WAY REFIT BUSINESS IS CONDUCTED?
ALBERTO AMICO
PRESIDENT
AMICO & CO
The prior definition of the work required is, unfortunately, still a wishlist, often rearranged by on-shore managers without a necessary level of detail being added or achieved regarding the data of
the systems and machinery involved, the problem detected, the proposed solution, the consequent work scope, etc. We then receive wishlists of hundreds of items that are impossible to quote for, and for which quotation becomes a gamble or a mockery, often made for commercial purposes only.
The drivers for the choice of shipyard should be based on other aspects: organisation, experience, references, reliability, competitiveness verified ‘a posteriori’ and real availability of adequate resources. This hardly ever happens, except for the range of vessels over 75 metres LOA.
Once a shipyard has been chosen, it should become a trustworthy partner in solving technical problems and setting up service and refit periods. Fortunately, this is the kind of relationship we are increasingly establishing with our clients but it requires a couple of years of experience together and a professional and loyal owner’s team.
The drivers for the choice of shipyard should be based on: organisation, experience, references, reliability, competitiveness verified ‘a posteriori’ and real availability of adequate resources. This hardly ever happens ...
THE BIG REFIT BRAINS TRUST
PEDRO PAIVA DIRECTOR
FEADSHIP REFIT & SERVICES
Just like running a superyacht requires good communication, teamwork and common goals, preparing and delivering Feadship refits require a similar level of partnership and dedication. We see a strong correlation with very successful projects having proper preparation time in advance before the maintenance or refit period commences. This enables us to plan and allocate the right number of resources to the project, as well as to prepare everything prior to the arrival of the yacht at one of our facilities or service partners.
Our service-level agreements play into this; they allow us to plan ahead and to arrange sufficient capacity months in advance, ensuring a smooth operation that makes a major difference. The best refits are usually pleasurable experiences as all participants are working together with Feadship to conceive solutions and deliver on the client’s expectations. Having a common goal and a determined scope, along with easy access to the decision makers along the way, is key for us to deliver on those expectations.
TONY
GALE CEO ICON YACHTS
Define the scope [of work] to be carried out well in advance of docking. Sign a contract early enough. Once in the dock, make fewer changes to the scope and keep ‘scope creep’ to a minimum. It also seems odd to say, but don’t reduce the scope that was already agreed for the refit. This is also disruptive to the yard and its subcontractors. Contracted scope means more secure pricing up front, and availability of subcontractors or suppliers more assured. This is especially relevant when wishing to use those subcontractors or suppliers who were involved in the original build.
Once in the dock, make fewer changes to the scope and keep ‘scope creep’ to a minimum.
JOEL SHINE CHIEF COMMERCIAL OFFICER DERECKTOR
The quality and timing of information from the customer are the two most significant factors that determine how well we can estimate, plan and execute complex projects. Some of our customers provide us with well-defined scopes of work and comprehensive supporting information, which works to their advantage. This results in more precise estimates and better-planned schedules. On the other hand, hidden or unknown scope, lack of drawings, multiple layers of decision-makers and indecisive owners hinder the process, often leading to projects going over budget and beyond the planned timeline.
The quality and timing of information from the customer are the two most significant factors that determine how well we can estimate, plan and execute complex projects.
Captains should feel empowered to demand proper protocols and accountability.
MICHEL COENS HEAD OF REFIT & SERVICE DAMEN YACHTING
It links to the first question, really. Often refit locations are chosen based on itinerary, price or time slots but, in my opinion, the decision should be made based on so much more, especially with the main question: Which is the right yard for the refit I’m looking for based on skill set, track record and experience? Then price, refit slot and delivery time become the negotiables rather than the decision-leading factors. They are, of course, important measures for a refit, but a decision should always be based on having the right yard in the first place.
When it comes to new builds, owners tend to take a lot of advice from their team and really assess which yard and build would be best suited to them for the entire process – the product, the delivery time and the price. It would be great to see a more in-depth and advised approach to refit as well. I’m not saying it doesn’t happen for refit because it does, but it would be good to see it happening more, so decisions are made taking many more factors into account.
We shouldn’t forget that refits are often complex and require specialist skills, knowledge and experience, and it’s essential that these are well researched and applied by the right people in the right shipyard.
ALBERTO PERRONE DA ZARA SALES DIRECTOR YACHT REFIT LÜRSSEN
What concerns me is what I see happening with smaller yachts and tighter budgets. I feel for those involved because it’s often just a basic repair or maintenance job that doesn’t get the same attention.
Take smaller projects with a budget of €200,000, for example. It’s rare to see a dedicated project manager for those. Instead, you’ve got shipyard staff, the captain or maybe the chief engineer trying to keep things on track and it all becomes a bit chaotic. That’s a formula for trouble. Protocols for acceptance and redelivery aren’t usually in place, so work gets signed off without a clear spec or contract. It might get by for a while but if you’re a captain needing to redeliver on time and on budget it’s a recipe for headaches.
We recently had a project where the contract was signed in just 44 days, which is too quick. The yacht arrived and we were just scrambling to finish the paperwork. Ideally, we’re planning projects years ahead. Right now, we’re booking boats for 2026, which lets us ensure all specifications will be up to date when we start. Unlike new builds, refits live in a sort of ‘state of emergency’ where the pressure is constant, especially
by April or May when everyone wants their yachts ready.
You can’t expect top-tier work in April from people who don’t have the necessary training or environment. It’s like expecting the same craftsmanship as the man who paints the line on the side of a Rolls-Royce; that level of skill and quality can’t come from a place that’s only set up to repair lawnmowers. But there must be a way to introduce a bit more professionalism.
One thing I always advocate for, especially with captains, is to insist on stricter standards. Captains should feel empowered to demand proper protocols and accountability. They should insist on acceptance for each job, describing protocols in detail. And if something’s completed but a minor detail is missing, there should be a 12-month commitment to address it and that promise needs to be upheld.
If an owner has purchased a yacht, they have every right to expect proper specifications to be met. If things aren’t clearly defined, it leaves endless room for ambiguity and any savvy shipyard will see that as an opportunity. They’ll exploit that gap …
Frankly, if we bring this up at the next industry forum, I’m sure representatives from other shipyards in Spain and Italy will be waiting for us outside with long screwdrivers at the ready. But I’m willing to risk that because this change is needed.
Improving collaboration and communication among owners, captains, managers and shipyards would have a significant positive impact. A proactive, rather than reactive, approach to refit planning would benefit all stakeholders, enabling shipyards to allocate resources more efficiently and reduce stress by avoiding last-minute adjustments.
We also see value in having captains or representatives not just involved but also fully immersed in the refit process from start to finish. Their ongoing presence ensures alignment on technical and logistical requirements, allowing for smoother decision-making and fewer rushed choices. Additionally, educating and involving less experienced owners in the intricacies of refit could help them make more informed decisions, contributing to better long-term care for their yachts.
There’s a real opportunity for the refit sector to unite and strengthen itself as an industry. By forming collaborative networks or associations, refit companies can share insights, address mutual challenges and advocate for best practices in sustainability. Working together can also help smaller shipyards stand out amid the influence of the larger players, creating a more cohesive and resilient refit industry.
Educating and involving less experienced owners in refit’s intricacies could help them make more informed decisions, contributing to better long-term care for their yachts.
EVAN KORTMAN CEO
BALK SHIPYARD
What is most important for us as a refit yard is to manage expectations and have a comprehensive understanding of the state and needs of the yacht. Early conversations are paramount for success. For example, for the motoryacht Ursus, we had early conversations with the client about the rebuild. We decided to make a 3D scan of the motoryacht. As a result we were able to minimise surprises and offer our client a rebuild with a six-metre extension.
In addition, these early conversations ensure that we build close relationships with our clients and their team. This is extremely important to us at Balk Shipyard because we want to fully comprehend our customers in providing all their needs.
CARLOS ALBONS LLOMPART
PRODUCTION MANAGER STP
Rather than changing the way repair and maintenance companies are run, we believe there’s a strong need for new companies to continue to be set up so that rates remain competitive and overpricing is avoided, and also so that the quality standards they offer and the workmanship remain qualified.
GIORGIO CAMPINI CEO
TECNOPOOL REFIT
One of the biggest challenges is sometimes feeling like the other side (managers, crew and owners’ representatives) don’t fully understand the difficulties we face. More often than not they expect everything to be ready instantly, demanding flawless organisation, but sometimes they bring requests at the last minute and expect them to be done right away, not always realising that we may need to coordinate subcontractors who might not be immediately available.
Another major shift is the demand for faster response times. Now, it’s not enough to answer within a few days; clients expect immediate responses to emails and queries, sometimes within the hour. That urgency applies not only to technical matters, but also to the crew’s requests. If the crew has a good experience at the shipyard, they’re likely to want to return the following season, so keeping them satisfied is important for staying competitive as well.
Communication is essential here. We need clients to share their requirements in advance, not at the last minute, so we can plan and organise effectively. Ideally, we’d be able to come in, do the work in a planned period and finish on time without constantly shifting demands. That would allow us to provide a higher level of service and make it easier to handle future projects as well.
When it comes to larger projects, we do often get sufficient planning time, but for smaller yachts, it can feel chaotic. It’s not the technical staff or crew causing this, but rather a lack of structured expectations from the owners or managers. If we had more consistent standards and timelines, it would make planning much easier for everyone.
We need clients to share their requirements in advance, not at the last minute.
TOBY ALLIES CEO PENDENNIS
I think it really comes down to ensuring a unified approach to each project, with clearly defined responsibilities across both the owner’s team and the shipyard. It’s not so much about needing a change as it is about making this approach standard across every project.
Not all captains and owners invest the same time in planning, and that’s where differences arise. Today, for instance, I was on a call with a captain and a fleet director who had a very clear vision of what they wanted to achieve, understood the time frame and were open about the boat’s complexities. It’s all on the table and that collaborative approach allows us to optimise the project and meet their goals as a team.
The challenge is that we can’t control rotational crew situations where captains and engineers change frequently. If we’re dealing with limited knowledge of the vessel, we just have to handle what comes up. But the more preparation and the stronger the partnership, the better the outcome for everyone involved.
We work hard to retain clients, supporting them wherever they are, whether that’s in Falmouth or the Mediterranean. Maintaining that relationship throughout is crucial. There’s no guarantee a yacht will return, and sometimes issues arise in other parts of the world where they can’t get back to us. Flexibility is essential. With our own trained teams, we’re able to adapt, whether it’s hydraulic service, engineering, exterior joinery or anything else our clients need.
THE BIG REFIT BRAINS TRUST
NORINA EDELMAN CEO AND CO-FOUNDER IMM
YACHTING
As much as I believe we – as members of the refit sector – need to do better for owners and owners’ representatives, I also think there are some changes that could be made on the ownership side that would also positively contribute to the refit experience.
In our business, we consider ourselves partners with the crew, captain and owner’s representative. We all have the same goal – to achieve the best results at the most fair price, to deliver on time and on budget, and to achieve excellent quality. To accomplish this, a relationship of trust and confidence going both ways is essential. To create this partnership, a few things would help.
First, be open and transparent. it’s critical that the refit yard understands the reality of the programme, the timing, the likelihood of a job coming to the facility and a variety of other things. If this information is not fully represented or hidden, it can negatively impact the project, but can also change the way refit facilities view clients, resulting in scepticism, lack of trust and ultimately undermining the relationship.
We all understand what the industry is like – many owners don’t make early decisions, making shipyard planning incredibly challenging. But if we are open and transparent about this fact, it allows shipyards to trust what they are hearing. When very valuable spots are reserved despite the fact that the management is aware there’s only a 50 per cent chance of the period materialising, it undermines confidence overall and leads to more complicated planning on both sides in the future. This result is ultimately bad for owners, in my view.
Second, I do think we need to have a recalibration on pricing and expectations. As we all know, the world has radically changed post-Covid, inflation is high and salaries have risen significantly. An increase in hourly rates must follow. Rawmaterial prices are higher, also resulting in higher prices. Refit yards are expected to deliver exceptional results in a short time frame. To achieve this, having the right people in place is critical, and the right people must be appropriately compensated.
To give an example, a top welder who finds work in a highly technical field
(aerospace, nuclear plants, etc) will be at a level of compensation often more than twice what a refit yard or yacht contractor can pay based on market pricing. This means we lose muchneeded talent. To keep that talent, and better serve the sector, we must compete in compensation, but to do so, we must be able to sell at higher prices.
Again, achieving the best result requires a partnership between the refit yard and the owner’s team, understanding that the goals are the same on both sides. Anything that contributes to the strength of this relationship on both sides (transparency, clarity, fairness, etc) will lead to better results.
Many owners don’t make early decisions, making shipyard planning incredibly challenging. But if we are open and transparent about this fact, it allows shipyards to trust what they are hearing.
FERDINANDO PILLI GENERAL MANAGER LUSBEN
A change we hope to see is in the relationship with owners, captains and managers. Cooperation among all involved parties needs to be strengthened, shifting from viewing the refit yards as mere suppliers to seeing us as true partners in the refit process.
WHAT
INVESTMENTS OR IMPROVEMENTS TO YOUR SHIPYARD INFRASTRUCTURE, OPERATIONS OR PROCESSES ARE ON THE HORIZON OVER THE NEXT THREE YEARS, AND HOW WILL THEY IMPACT YOUR BUSINESS AND CLIENTS?
PERRONE DA ZARA SALES DIRECTOR YACHT REFIT LÜRSSEN
The truth is, we’re in a strong position in terms of resources and facilities, we really have everything we need. We have a very supportive and well-funded ownership, so when we do need something, we might have to push a bit, but we generally get it. The real issue we face, though, is not about physical investments or equipment; it’s about knowledge retention and passing on experience to younger generations. What we really need is to set up orientation centres or training initiatives to bring in and retain young talent, helping them develop the expertise they’ll need to fill these critical roles. We need to train, develop and facilitate the next generation so that this invaluable knowledge isn’t lost. That’s the real challenge ahead.
The real issue we face is not about physical investments or equipment; it’s about knowledge retention and passing on experience to younger generations.
ALBERTO
THE BIG REFIT BRAINS TRUST
FERDINANDO PILLI GENERAL MANAGER LUSBEN
We’re currently executing a €12-million investment plan to upgrade our facilities, with further developments underway. We recently announced the new keel pit for sailing yachts, with a focus on enhancing infrastructures. We’ll continue to develop our shipyards with particular attention on improving the experience for crews and captains upon arrival.
TONY GALE CEO ICON YACHTS
We’re continually investing in our yard –new plant and equipment that supports refit projects, use of 100 per cent green energy since 2021, reinsulating our sheds. All these elements mean we’re cleaner than when the yard was first built. As the environment, sustainability and climate issues become more important to the planet we live on, we have to play our part.
Our ISO 14001 certification was a first in the Netherlands for any yard. But we should all understand that delivering yachts or refitting yachts doesn’t exactly meet these objectives. All yachts burn fuel. Even ‘hybrid’ vessels still require fossil fuels but in years to come our industry will see further improvements.
As the environment, sustainability and climate issues become more important to the planet we live on, we have to play our part.
TXEMA RUBIO COMMERCIAL DIRECTOR MB92 GROUP
This year, we’ve grown our network with new shipyards in Golfe-Juan and the Red Sea, and we’re now launching an ambitious three-year plan that goes beyond regulatory requirements. This plan includes sustainable improvements
such as advanced water-regeneration systems, quay expansions and the addition of new travel lifts, all aimed at reducing our environmental footprint and enhancing our operational efficiency.
A significant part of our investment strategy is focused on ensuring that our facilities offer the highest levels of safety for the vessels we service. With high-risk activities such as welding and painting, we’ve implemented advanced fireprevention systems and comprehensive safety protocols.
As the future of yacht maintenance becomes increasingly data-driven, a key innovation has been the integration of a digital customer portal, enabling clients to access and manage their projects from anywhere in the world. The Bridge by MB92 provides a comprehensive project overview, enabling clients to approve work, request additional quotations, streamline communication and even manage invoicing remotely.
We’re addressing sustainability through our own operations and by collaborating with industry associations and conservation groups. We’re investing heavily in our facilities and practices to minimise our own environmental impact.
This includes upgrading infrastructure with advanced water regeneration systems, enhancing waste-management processes, and implementing efficient eco-friendly solutions for painting and other key operations.
Our Refit for the Future service is specifically designed to support yachts in reducing their ecological impact, from optimising fuel efficiency and installing advanced energy-management systems to advising on sustainable materials during refits.
We partner with leading industry associations, such as Water Revolution Foundation and SEA Index, to help drive sustainability initiatives across the yachting sector and support ocean conservation groups such as AquaPassion and Belong to Sea. Additionally, we embrace an open innovation approach with our supply chain, exemplified by our partnership with Rolls-Royce to promote HVO [hydrotreated vegetable oil]. By working closely with local subcontractors and OEMs – many of whom operate within our facilities – we streamline processes, improve efficiency and minimise the need for technicians to travel internationally.
La Ciotat
THE BIG REFIT BRAINS TRUST
STEWART PARVIN CEO CANTIERE ROSSINI
In the coming years, we’re prioritising both infrastructure and operational enhancements. We’re expanding our crew facilities and building a new conference centre dedicated to training and educational programmes, aiming to elevate the refit experience for crew and captains and create ongoing professional development opportunities.
On the technology front, we’re integrating advanced digital tools to improve project management and streamline communication across teams. This will allow for greater transparency and more effective coordination throughout the refit process.
Sustainability remains a core focus as we continue our ESG [environmental, social, governance] initiatives. From responsible material sourcing to implementing energy-efficient systems, we’re committed to reducing our environmental footprint. We’re also collaborating with local institutions and associations such as the Marche Yachting & Cruising Association to attract and train new talent for the refit sector.
JOEL SHINE CHIEF COMMERCIAL OFFICER DERECKTOR
Over the next three years, we plan to expand both on-land and in-water capacity. While avoiding specific details, these upgrades will allow for more efficient use of space and improve our operational processes, ultimately increasing our ability to serve more vessels and meet growing demand.
One of the main goals is expanding capacity at Derecktor Fort Pierce, which has already transformed large-yacht refit and service in Florida. With a 1,500-ton mobile boat hoist and no air or water draft restrictions, it can service yachts that Fort Lauderdale cannot accommodate. Planned upgrades include enhancing the yard’s ability to handle a wider range of vessels and improving dockage and operations for more efficient service of yachts over 500 tons.
GIORGIO CAMPINI CEO
TECNOPOOL REFIT
We’ve started partnerships in places such as Thailand and we’re looking into setting up in the Mediterranean and the Gulf, including Dubai and Qatar. Yachts are cruising around the Red Sea, the Indian Ocean and Asia more than ever, so it’s not realistic anymore to ask them to come back to Europe for every repair.
The big refits and upgrades will still be done in Europe because we’re the ones with the expertise for that, but when it comes to general maintenance and smaller fixes, we need to be where the clients are. If there’s an engine issue or any maintenance need while they’re out in the middle of Asia, the Middle East or Africa, we have to be ready.
So, really, the plan for the next few years is about growing our flexibility, being there for our clients globally and keeping up strong, respectful relationships within the industry.
NORINA EDELMAN CEO AND CO-FOUNDER IMM YACHTING
We’re currently building a state-of-the-art refit facility in San Juan, Puerto Rico. So the infrastructure investment we’re making over the next three years is significant and, we believe, game-changing for the market. Currently, the refit offering on the United States side of the Atlantic isn’t meeting the demands of the market in terms of availability and in terms of quality and style. The shipyard in Puerto Rico will change this. Not only are we investing in significant infrastructure, we also have a comprehensive strategy for undertaking works consistent with European yacht refit standards.
The infrastructure investment will include sheds rated for Category 5 hurricanes that will shelter the largest vessels, providing safety, security and privacy, while also increasing efficiency for the largest jobs. It will also include significant investment in green energy production; we’ll be able to provide 100 per cent green energy to 100-metre-plus yachts while in drydock – perfectly aligning our values with our actions. We’ll invest in crew health, providing both facilities and activities that are about holistic health.
The development strategy for skill is based on years of experience doing the same development in various well-known sites in Europe.
To grow the required skills locally, it is essential to have craftspeople with knowledge and expertise training those less experienced who are motivated to learn and become experts themselves.
This, of course, takes time. Our strategy is well underway. We have secured visas for a number of top-tier European workers, and will continue to do so, allowing European experts a path to participate in the development.
Critically, there’s a significant labour pool locally of people who want to learn this industry and are dedicated and conscientious. We have experts in-house to develop training and internship programmes, ensuring the transfer of knowledge is planned, methodical and, ultimately, successful. Although it will take many years to reach 100 per cent local labour, the process has begun.
TOBY ALLIES CEO PENDENNIS
We’ve been running an apprenticeship programme here for more than 25 years, putting a lot of effort into attracting the right people and building a strong mix of staff and trades for the business.
The apprenticeship programme was initially set up as a general intake, covering all trades before apprentices specialise and qualify after a four-year training period. Since then, we’ve introduced a post-apprenticeship scheme that continues for several more years, often including an HNC or other additional qualifications that we encourage our workforce to pursue.
We also run a management development programme, so we’re focusing on training at all levels. No business can afford to stay static. We’re always looking at ways to improve our workforce and our offerings, and the skills that come with them.
CARLOS ALBONS LLOMPART PRODUCTION MANAGER STP
STP has begun an ambitious project of expansion and improvement of its facilities with an investment close to €8 million. Works have now commenced as part of a development project that aims to boost the productivity, organisation and efficiency of the STP esplanade.
The expansion will see the total area of the shipyard increase from 130,000m2 to 162,000m2, encompassing 102,000m2 on land and 60,000m2 on the water. The additional space being utilised borders the current limits of the concession and was already being used by STP for some temporary authorisations, as well as by the Port Authority for commercial uses.
On the water, the expansion will see five extra berths created to accommodate vessels up to 110 metres in length, in addition to the three already in use. The first phase of construction is focused on preparing this new mooring area for large superyachts, and work has already begun on the installation of the pipes and cabling to provide the necessary services.
This element of the project responds to the growing size of yachts and the demand for quality refit infrastructure to service vessels at the larger end of the size spectrum.
On land, the increased surface area will enable the reorganisation of various
zones, thereby improving the layout and overall operational efficiency within the yard. This will be most apparent with the new dedicated area for the removal and repair of sailing-yacht masts, which includes a covered mast-painting area, allowing mast operations to be carried out without interfering with other yard activities. A new parking area will also be created closer to the entrance with the aim of reducing vehicle traffic throughout the shipyard and minimising conflicts with yard operations.
Expanding the operational footprint is no simple feat because adapting the surfaces to provide the necessary services, comply with regulations and maintain safety standards will require significant works. This includes the installation of 4,150 metres of new pipes required for water, compressed air, fire protection and waste, 15,600 metres of cabling for electricity and wifi, as well as new pavements, fencing and bathrooms.
Photovoltaic panels will be installed on both the covered mast area and on canopies located in the new parking lot. Battery storage will allow the solar power collected to partially replace the use of generator sets for dockyard activities. The energy generated by this system will be equivalent to the energy needed to power 115 apartments and will save 124 tonnes of CO2 emissions per year.
The expansion represents an opportunity not only for more yachts to access the renowned refit infrastructure and expertise in Mallorca, but also for the workforce on the island and local economy. By enabling multiple vessels of larger lengths to be received at STP, the new berths will undoubtedly translate into an increase in the average scale and cost of projects being undertaken, thereby increasing industrial productivity and local economic impact. In fact, it’s estimated that the overall expansion will generate an additional €50 million to €60 million in industry turnover per year.
The new 110-metre moorings are scheduled to be available at the end of 2024, while the rest of the expansion is scheduled to be completed in the spring of 2025.
MICHEL COENS HEAD OF REFIT & SERVICE DAMEN YACHTING
Refit has always been a core part of our portfolio. We’ve always had a combination of large-scale rebuilds and smaller refits taking place simultaneously for both Amels yachts and yachts built by others. In the past few years, we’ve had large-scale refits and rebuilds, which have been projects extending [from] 12 to 18 months, meaning our smaller refits have had a little less attention within the market but haven’t stopped taking place.
We’ll continue to invest in our yard as a superyacht refit hub for both our own fleet and the wider industry fleet. We’re lucky to have such extensive facilities at our yards. Our build planning with our Limited Editions means we can plan our capacity well in advance and work refit into the planning in advance rather than trying to fit it in around other builds. This enables us to approach refit projects with a long-term mindset, as if they are new builds, with a focus on the work required rather than being restricted by limited slots.
We also shouldn’t forget the role of the crew in a refit, and ensuring we have the right facilities and support in place for the crew will be a key focus as we develop all of our refit and service work.
We’ve just totally refurbished Antibes and Beaulieu-sur-Mer, which represents an investment of €15 million, meaning building new water-treatment systems and networks, new buildings and workshops, and new equipment such as yachtlifting systems.
Regarding improvements or invest-
ments for the next three years, we’re focusing on innovative systems both to reduce environmental footprint and to modernise our means and processes. The advantage of working as a network is that we can set up some prototypes in a shipyard before wide-spreading the concept in the other shipyards.
For instance, we’ve designed a system to recycle careening waters, and it will be implemented in Antibes at the beginning of 2025. As of 2020, Monaco Marine worked on new processes with partners and start-ups to better recycle wastes, through chemical or mechanical recycling approaches. We also performed preliminary studies to use solar panels to generate electricity for our own utilisation.
Another example is to develop and set up solutions around AI, either to automatise some processes or to reduce lead times and even to anticipate some risks. A major part of our investments is also oriented around eco-friendly solutions for yachts.
The benefits are firstly for our clients, bringing best-in-class solutions, a good service with the aim of managing each project more safely. This is a priority.
PEDRO PAIVA DIRECTOR
FEADSHIP REFIT & SERVICES
We’re developing our presence at Savannah Yacht Center – a Safe Harbor facility – to be the Feadship refit and services hub in the United States. From Savannah, our goal is to deliver the level of service our clients are used to receiving from Feadship. We also continue to invest in the development of refit dedicated personnel to improve our capabilities.
EVAN KORTMAN CEO BALK SHIPYARD
In 2022, we finally received concession from the local government to expand our facilities and to grow twofold. In the coming years, Balk Shipyard will become twice the size. Our core focus will continue to be the 30-metre to 80-metre yacht sector. With our new facilities we’ll be able to offer an even more comprehensive service to our clients.
ALBERTO AMICO PRESIDENT AMICO & CO
Over this summer, Amico & Co’s external 80-metre dock was upgraded and re-configured, allowing for the creation of additional large-yacht berths in the technical area of the marina. The next development, the construction of an additional modular covered paint shed over a 95metre berth slot, is already underway.
Alongside this, important investments are ongoing in terms of human resources to further expand and develop internal in-house departments and to
Epilogue
Refit yards can’t afford to maintain the status quo. The path forward demands a holistic approach grounded in the practical realities of labour shortages, the expansion of the global fleet towards uncharted waters and the urgent need for better planning and communication across every project. This isn’t about waiting for change but about recognising that the entire industry’s future relies on a healthy and reliable refit sector.
There’s a message for all clients, owners and their representatives. By approaching projects with clear objectives, structured timelines and transparent communication, they not only ensure the quality of these projects, but also help play a pivotal role in
create and train the project management and support teams of the future. A technology transformation is also anticipated over the next 18 months with a new version of the proprietary management system being developed. Furthermore, investments are also being made to accommodate ever-increasing demands relating to yacht tenders and chase boats, catering not only for their storage, but also for their refit as these become ever larger.
We continue to work with our partners
elevating standards across the industry. Refit is time-consuming and highly resource-intensive, and ultimately, those seeking its services must understand the importance of these constraints.
As the wider industry expands into new regions and demand for services increases, there must also be a commitment to invest in local training programmes and skilled trade development. Without a new generation of craftsmen trained in both the traditional skills and the new technologies required, the skills gap will continue to widen, putting the industry’s long-term viability at risk because, more than anything, refit is a people-andpassion-driven business.
The scarcity of a skilled workforce
at Genoa Superyacht Hub, creating a content-heavy crew-training programme in Waterfront Marina, allowing crews to complete mandatory courses and upskill during their berthing and maintenance stays in Genoa.
In 2025, we’ll deliver a major rebuild project on a vessel over 80m LOA, a refit comparable in scope and length to the passenger yacht Queen Miri refit in 2016. These types of complex rebuild projects are both highly creative and highly technical.
ready to pick up the torch and the impending retirement of seasoned tradespeople accentuates this need for a long-term investment. This isn’t just about filling roles but rather preserving decades of hands-on knowledge and training the next generation in true craftsmanship. With the proper focus on local training, consistent standards and regional support, the industry can meet the rapidly growing challenges of the global market without sacrificing the quality that defines it.
If there’s one constant among those who dedicate themselves to the sector, it’s an unwavering respect for the craft and the people who keep it alive. It’s a standard they are determined to uphold, no matter how the industry evolves.
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by Giovanna Cabbia
Are refit contracts the real fit?
Giovanna Cabbia, partner at Clyde & Co, reiterates her call for negotiations between owners and yards over refits to be given the same care and attention as those involving new-build projects.
I recall writing an article on refit contracts years ago and the main point of concern I raised at the time remains the same today. Yacht owners would normally appoint expert lawyers for the review and negotiation of the terms of yacht-construction contracts, sale and purchase agreements of pre-owned yachts, design agreements and many other contractual documents relating to superyachts. However, when it comes to refit, conversion or even rebuild contracts it seems that, in most cases, these are negotiated with a light-touch approach without proper legal advice and without expert project managers.
The starting point of refit negotiations is normally dealt with by the yacht’s captain seeking quotations from the yard and agreeing the scope of works, and I believe this is probably the reason why the whole process, including the negotiations of the terms of the contract, is left in the hands of the captain and of the crew. But what if something goes wrong and the project doesn’t meet the owner’s expectations?
The value of some refit projects can be similar to the price of building a new yacht and the nature of certain works
bears similar risks to those of a newbuild project. So why are refit contracts not as carefully thought through? The same level of detail and consideration used when the yacht was originally built should also apply to refit projects, but I’ve seen many refit projects where the scope of work was uncertain and the specifications were vague, and this often results in the projects going over-budget.
Refit specifications should be negotiated with the same attention applied to the technical specifications of new-build projects. Yacht owners should have clearly in mind the scope and extent of works they intend to have done. Aside from purely cosmetic upgrades, owners should talk to the captain and crew about the day-to-day operation of the yacht and whether there’s anything in their view that can be improved to enhance the experience of both the crew and the owner.
While there are two available standard form refit contracts – the BIMCO REPAIRCON 2018 and, the most commonly used in the superyacht industry, the ICOMIA (International Council of Marine Industry Associations) Standard Yacht Refit/Repair Contract
2021 – the terms of these contracts might need to be reviewed to take into account owners’ expectations about the price and terms for price increase, timing for completion of the works, the respective liability of owners and yards, and special conditions that might apply to the specific project.
The ICOMIA contract has been drafted by a committee of representatives of refit yards, and even though it isn’t much different from the BIMCO REPAIRCON, it’s slightly more in the yards’ favour. For example, the ICOMIA contract contains a very wide clause regarding events that entitle the yard to claim permissible delays and postpone the redelivery date. It also relieves the yard from any liability for any damages whatsoever that may be suffered by the yacht during her hauling out or launching, which ultimately is attributable to the limited, inaccurate or insufficient information provided by the owner and requires the owner to “accurately identify any existing damage and/or breakdown which may affect the yacht, her condition and structural integrity”.
Furthermore, the remedies and rights to terminate the contract are quite limited
for the owner while, conversely, in the event of termination of the contract by the yard if the owner doesn’t deliver the yacht on the delivery date, the yard is entitled to keep the deposit, claim for further damages and compensation and the full contract price shall become immediately payable (which is inconsistent with other provisions of the contract stating that the yard is entitled to retain only costs incurred at the time of cancellation).
The BIMCO REPAIRCON tends to be as neutral as possible and leaves the parties to negotiate their special terms and conditions. However, it doesn’t factor in the technicalities of the superyacht industry because refits of commercial ships are normally performed for the purpose of achieving compliance of the ships with mandatory regulations of the Classification society and Flag states or simply to ensure ships maintain their Class or Flag status
and not, like most superyacht refits, for upgrades and cosmetic reasons. The above terms might work and be acceptable for many but owners should be made aware of the rights and remedies they have available. This isn’t to say that the ICOMIA or BIMCO REPAIRCON 2018 must be heavily negotiated but simply to provide some helpful tips to keep in mind before locking into a binding contract without understanding the legal implications. GC
Refit specifications should be negotiated with the same attention applied to the technical specifications of new-build projects. Yacht owners should have clearly in mind the scope and extent of works they intend to have done.
The Repair Talk Shop
The Refit Advisory Group, an independent think tank, calls for a more balanced approach to refit that includes more input from captains and owners’ representatives to enhance the overall yard experience.
BY NORINA EDELMAN, CEO AND CO-FOUNDER, INTERNATIONAL MARINE MANAGEMENT
During 2023, when the principals of International Marine Management were designing a new refit facility in San Juan, Puerto Rico, this raised the question: what would be the ideal design and conception for a modern-day shipyard?
Rather than relying solely on their own knowledge and experience or the opinion of consultants, it was quickly decided that this exercise should be extended; by seeking the input of largeyacht captains and other end users, the facility would serve the real needs of today’s owners.
Therefore, the Refit Advisory Group was born, and although a primary objective was to assist in the development and design of the Puerto Rico facility, it was quickly decided that the brief should be extended to ask more generally how refit can do better and to share the conclusions publicly.
Data was gathered using three distinct methods: in-depth and confidential interviews with captains, roundtable discussions and panels, and two independent market surveys. Here, we present a brief summary of the con-
clusions and recommendations. A full report will be forthcoming.
Key insights
The primary drivers for yard choice vary significantly based on a vessel’s characteristics and programme. A busy charter yacht, for example, prioritises convenience of location over many other factors. Although price is important, most participants note that the real priority is value, not absolute dollars. The right choice of facility depends on the scope of works to be completed. There’s also a marked trend for yachts to complete works alongside locations outside a shipyard. Some captains say they see hauling out as increasingly risky due to past experiences and so aim to avoid haul-out wherever possible. This can lead to higher costs, but it allows works to be completed in water.
The priorities expressed were quite consistent: having the basic technical areas handled on-site is critical. However, using contractors (and even flying them in) for more specialised tasks is not only acceptable, but also expected.
Logistics and associated costs are critical considerations for any refit works because these items can drive up costs significantly and can also create delays if not well managed.
Conclusion
There’s a disconnect between the views of refit shipyards and those of captains and owners’ representatives. However, those representing ownership are very enthusiastic about participating in meaningful dialogue about how to improve yacht refit. The current offering can significantly benefit from better representation of their perspective.
Processes such as contracts, pricing, safety protocols and reporting often appear to be structured primarily from the yard’s viewpoint. By taking a more balanced approach that includes the owner’s voice, the overall refit experience could be enhanced, leading to better outcomes and stronger relationships between all parties. In short, the Refit Advisory Group confirmed both the need for representation of the owner’s perspective in refit and the willingness of all parties to participate in the process.
Co-founders Norina Edelman (third from left, front row) and Abi McGrath (second from left, front row), with fellow members of The Refit Advisory Group.
Recommendations
Upon review and reflection of the overall feedback received, we’ve identified six areas ripe for improvement:
1. Safety and security
Although existing safety and security records are considered a critical factor in yard choice by captains, these are not easily accessible.
Shipyards should provide a comprehensive security briefing, clearly outlining shipyard protocols, crew procedures and on-site safety measures which should also include a complete summary of do’s and don’ts for crew in the local area. It’s critical that captains and crew are given local knowledge such as flagging up any areas that should be avoided.
Making safety and security records more transparent, easily comparable and readily available will enable stakeholders to fairly consider this factor in the decision-making process. There should be a consideration to set up a standardised way of reporting safety and security through external audit or similar.
Cybersecurity and data protection is a
The majority of captains continue to experience a marked divergence between quotes and invoicing. Although all parties understand there may be newly discovered works, refit yards must do better with quoting.
significant concern, and stronger protection measures are essential.
2.
Quotations, change orders and invoicing
Invoicing has become incredibly complicated and hard to understand. Clear and simple invoicing, transparent and understandable, is critical. Consider following the yacht’s nomenclature and numbering system rather than forcing the vessel to adapt to the yard system. Providing a detailed and accurate quote is time-consuming and requires significant investment by the yard. Consider having paid quotes on the most significant jobs to ensure that the potential client is seriously considering the yard as an option (a portion of the amount can be deducted from the eventual invoice if the vessel does come to the facility). This will give the shipyard confidence that they are not wasting their time. In turn, it will lead to better and more accurate quoting, which will generate more confidence in the market. The majority of captains continue to experience a marked divergence between quotes and invoicing. Although
all parties understand there may be newly discovered works, refit yards must do better with quoting. Exclusions, although helpful to delineate scope, have become – in the eyes of our clients – a way to obfuscate real costs. This must change.
Efficient and effective communication is key. Additional works must be priced and conveyed quickly. Any schedule changes must be communicated at the same time.
Captains and owners’ representatives are looking for increased transparency in pricing. If there’s agreement on time and materials, clients are looking for time sheets with hours clearly tracked. Consider working more on an open-book basis. There’s a clear demand for transparency and openness in pricing. If shipyards and the client could make reasonable provisions for profitability, open books may be a positive way to move forward with certain refit periods.
3. Contracts
A number of respondents currently report that a yard choice has been derailed due to contract negotiations. Some of the agreed contract templates are perceived by some owners’ representatives as having excluded the owner viewpoint. A more balanced contract structure,
A serious commitment and investment must be made into robust training programmes at all levels. Shipyards should collaborate and cooperate on such programmes to raise the overall offering internationally.
developed through a working group that includes owners’ representatives, yards, insurers, attorneys and other stakeholders could help to address this imbalance.
There are some areas in which responsibility is unclear; this negatively affects safety and security. Clearer delineation of all responsibilities while at a yard facility is critical not only for contractual purposes, but also to ensure that sufficient safety procedures are put in place and followed by the responsible party.
4. Regulations and Class societies
Owners’ representatives expressed an interest in exploring whether there can be different relationships between refit shipyards and Class. As a build yard can be approved for a build, might there be similar ways to proceed with refit yards? Are there ways to use regulations, Class or other bodies to set standards that are measurable for more transparency? This could be for security, sustainability, aftersales and a variety of other things.
5. Crew facilities
There’s a growing focus on health and mental health for crew. A focus is on providing options to keep crew healthy and active such as fitness classes and
padel courts. Having affordable housing options is a priority, and site development should generally include a plan for affordable crew/contractor housing. A focus on wellness naturally shifts the crew’s attention from less healthy activities and supports long-term health as well as crew retention.
6. Skilled labour and talent
Facilities are increasing in size and capacity at the same time that many skilled project managers and labourers are retiring because of age. Clients report experiencing a decrease in quality overall, especially in project management. Clients report not having sufficient labourers to cater to their needs and having project managers without the necessary time to devote to the vessel.
A serious commitment and investment must be made into robust training programmes at all levels. Shipyards should collaborate and cooperate on such programmes to raise the overall offering internationally.
These recommendations aim to address key challenges and, therefore, strengthen the overall refit experience for clients. This summary is just the start of the conversation. The Refit Advisory Group will continue to engage in action on these points. NE
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The skills shortage
‘We are nothing without the people at our shipyards’
With young people increasingly drawn to digital careers rather than hands-on work, how can we inspire the next generation to fill the ever-increasing skills gap in yacht building and repairs?
DBY ALEX GRIFFITHS
epending on from which side of the Atlantic you get your news, the outlook for the next generation picking up tools and dedicating their careers to trades is not just nuanced, it’s polarised.
The Wall Street Journal captures an optimistic view of the US. Describing Gen Z as the ‘Toolbelt Generation’, it reports a significant uptick in enrolment. Students studying construction trades, it writes, have risen by 23 per cent, and those enrolled in vocational-focused community colleges are up by 16 per cent. This isn’t the reality in Europe.
Open any national statistic and the outlook is dreary. Leading statisticians Statista, for one, reported that around 70 per cent of EU countries experienced labour shortages in 2022. Bricklayers were in the shortest supply, followed closely by welders and pipefitters – the backbone of shipbuilding.
Germany, in particular, faces a severe shortage of qualified workers. The nation relies heavily on skilled artisans. Three of the largest automotive companies –Volkswagen, BMW and Mercedes-Benz – together employ just over 1 per cent of the nation’s population, with more than a million craftspeople.
In our industry, there are more than 70 shipyards for yachts in Germany, 26 of which offer refit
services. This includes Lürssen, one of the leading shipbuilders, which operates three shipyards in northern Germany, employing around 1,800 artisans. The expertise needed to build and refit projects at such a high standard takes years of specialised training.
Maintaining high levels of craftsmanship across all sectors is a troublesome and ongoing challenge. Two issues compound the problem: more than a fifth of the population is over 65 and retired, while enrolment in apprenticeship programmes has nosedived year-on-year. Despite Germany being at the forefront of vocational education for decades, apprenticeship schemes are still losing traction. According to the German Federal Employment Agency, vacancies have more than trebled in the past two years. In 2022, around 69,000 apprenticeship positions went unfilled, and as of July this year more than 200,000 positions remain open.
When recruitment came up in discussion at the International Superyacht Society Leadership Conference, the atmosphere thickened with frustration. “There is a real problem,” said Alberto Perrone Da Zara, director sales yacht refit at Lürssen, raising his concerns from the panel. “We are starting
to miss the skills of young labour. There are simply too few skilled craftsmen, and we need to do something about it. We need to go into schools, bring students to our shipyards, and educate them about the joys of shipbuilding and the excellence of our craft.”
Lürssen is doing just that. After forging links and partnerships with local universities, the company welcomes around 45 apprentices each year. A concerted effort is underway to develop ties further and establish new partnerships and initiatives. One such programme is The Lürssen Foundation, a joint project between its facilities in Germany and Croatia.
The Lürssen Foundation, established in Rijeka in Croatia, is a new initiative that aims to become a central hub for sustainable innovations. Part of its mission is to inspire the next generation of engineers keen on dedicating their practice to advancing green transition and digital transformation in the maritime field. It will foster an environment of knowledgesharing and learning through hands-on experiences, expert mentorship and impactful research projects. While this isn’t artisanal craftsmanship per se, the Foundation’s commitment to upskilling and career development will be a positive force, both regionally and internationally.
In Germany, Lürssen regularly hosts open events at its new-build and refit shipyards to welcome and inspire the next generation of artisans. Each year, the Day of the Apprenticeship attracts around 30 visitors, who are given a tour of the facilities and insights about the fascinating trades required to build and maintain such complex yachts. Annually, Lürssen also invites its employees’ children for an exclusive experience and tour.
Perrone Da Zara stressed the importance of these recruitment drives. “We are nothing without the people at our shipyards,” he said. “We can sell all we want, but if we go home and there is nobody in the kitchen, it would be an ugly scene.”
Germany is not alone; Europe and most countries are experiencing the same downward trajectory in enrolment. In the UK, apprenticeship enrolment has fallen by 34 per cent over the past decade; more than half a million students joined apprenticeship programmes in 2015, but only around 300,000 enrolled last year.
This decline might have hurt most industries, yet Pendennis, the UK’s largest refit and rebuild shipyard, has remained unscathed. It bucks the trend with its notably successful apprenticeship programme which has run for more than 25 years. The Cornish shipyard recruits around 30 new apprentices each year, many of whom grow within the company to become project management and senior staff. In-house training is enmeshed in the yard’s DNA, and it’s a point of pride.
After a quick chat with Paul Griffiths, sales manager at Pendennis, I soon discovered that competition is actually quite fierce. They receive more applicants for their apprenticeship schemes than they can recruit. Their success lies in years of investment and in placing learning and development at the heart of their operations.
In the South of France, MB92 La Ciotat is just as committed to in-house training programmes. However, despite recruiting many apprentices each year, retention remains an issue. “We take on around 20 apprentices each year, and roughly half move on to other jobs,” says Rob Papworth, managing director at MB92 La Ciotat. “They become quite attractive once trained. This goes for all shipyards – Lürssen, Feadship, Oceanco and others. But this is not the main challenge around skills.”
The real challenges, according to Papworth, are societal. “I personally believe that in Western Europe there is an overemphasis on university education,” he explains. “Artisanal jobs are underappreciated, and there is a misconception about the trade’s earning potential, which is a real shame. Many shipyards offer competitive salaries, comparable to those of university graduates, and I think some of the refit guys are making pretty good money.”
Artisanal craftsmanship is in the midst of an identity crisis throughout Western Europe – and young tradespeople from Eastern Europe are seizing the opportunity. “We see many very skilled people who started training as young as 15 coming from Poland, Romania or elsewhere,” says Papworth. “They look young, yet can weld like the best you’ve seen. This is because they invested in training and completed an apprenticeship early on. That level of craftsmanship is now rare in the UK and Western Europe.”
“I personally believe that in Western Europe there is an overemphasis on university education. Artisanal jobs are underappreciated, and there is a misconception about the trade’s earning potential. ”
Above: Initiatives at Lürssen, which employs around 1,800 artisans. The expertise needed to build and refit projects at such a high standard takes years of specialised training.
Top: (l-r) Rob Papworth, managing director, MB92 La Ciotat, and Alberto Perrone Da Zara, director sales yacht refit, Lürssen, at the International Superyacht Society Leadership Series in Monaco earlier this year.
Italy has approached this challenge differently, creating a web of training institutions [which] has led to the founding of several important academies.
The data backs this up too. According to Parliamentary statistics, nearly half of all apprentices enrolled in 2022-2023 in the UK were aged 25 or older, many of whom likely already hold a university degree. These later starters to learning skilled trades are competing against exceptional craftsmanship from their Eastern European contemporaries, who have amassed a decade of experience through apprenticeship schemes and an early commitment to their trades. For shipbuilders, the choice is clear.
Stefan Coronel, managing director at HUISFIT by Royal Huisman, raised another interesting point during the ISS conference. The Dutch refit yard runs a streamlined and efficient operation, relying on external teams and agencies for skilled labour. He naturally then challenged where the onus for learning and development should lie. “I agree wholeheartedly that we’re starting to miss the love for labour. In our region [the Netherlands], there is a close-knit network of suppliers who have their own craftspeople and are independent of one another.”
The Netherlands, with its rich heritage of shipbuilding and repair, is densely populated with shipyards. Including everything from small yards to large commercial operations, the small nation has approximately 400 shipyards – a staggering four-to-one ratio compared to its number of cities. It’s a haven for subcontractors. Many yards in the Netherlands rely on these floating, highly skilled pools of labour. They also rely on each other, and requests for section work or facility space are not uncommon. Refit and rebuild specialist Balk Shipyard, for one, has brought numerous aluminium sections to life for neighbouring new-build yards such as Feadship and Heesen.
Italy has approached this challenge differently, creating a web of training institutions. With approximately 70 of the 240 yacht shipyards in the country offering refit services, demand for labour in the sector is colossal. It dwarfs that of every other European country. Matching skills with demand remains an ongoing puzzle and has led to the establishment of several important academies.
Major shipyards dotted along the boot-shaped coastline have each established their own centres, fostering cultures of learning and development. These academies provide learning opportunities at
all levels and have proven popular – and successful.
In the US, despite the Wall Street Journal’s optimistic outlook, recruiting the right skills for yacht refit and repair is a huge challenge, according to Norina Edelman, CEO at International Marine Management. “It’s a global issue,” she says. “Young people are simply less interested in manual work. However, that being said, the US is interesting right now because yacht refit is a new thing.”
Edelman mentioned two new refit facilities at the ISS conference: Puerto Rico and Guadeloupe. The former was established just last year and is underway with a $15 million investment to develop San Juan Yacht & Ship into a comprehensive operation. Thousands of jobs are expected to be generated from the project, including welders, electricians, plumbers and carpenters.
“People are excited about the opportunity to learn a trade,” adds Edelman. “However, training takes time. Some skills we can teach on-site but others require years of practice. Our approach blends intensive training for people eager to weld or work in other trades with more experienced hires.”
Across the globe then, there is work, and with advancements in design and innovation, learning and development have never been more important. But how do we inspire the next generation to pursue artisanal craftsmanship?
“The challenge is money,” said Ed Ewer, CEO of shoreside superyacht recruitment firm SYR. “The big money for young people these days is in IT, coding, web design, creative digital jobs, etc., and if you want to earn maximum income, you need to get a degree. You then also have the crypto guys who are just 18 or 19 and successful, already bought the house and fast car. Societal pressure is huge on young people.”
The desirability of digital careers over hands-on work is immense. It’s an uphill struggle for shipyards and recruiters, who must compete against enviable lifestyles often promoted through social media. To overcome this, the positives of what the industry can offer, along with the pride of the craft, need to be well promoted. Every region may have its distinctive challenges but the responsibility is shared equally to inspire appreciation for the joys that shipbuilding and yacht repairs can offer. AG
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Don’t gloss over the basics
Marine coating consultant Rory Marshall says communication, understanding the process and realistic timelines are the three key principles behind any successful refit paintwork project.
The world of luxury yachts is one of unparalleled sophistication, where engineering excellence meets refined aesthetics. These towering vessels, designed for ultimate comfort and performance, require regular refits to maintain their beauty and functionality. However, beneath the glossy exteriors and the promise of pristine finishes lies a complicated and challenging process, especially when it comes to the paintwork.
Yacht refits are demanding undertakings that blend art and science, and while much attention is given to the final result, it’s the work along the way dealing with the issues that arise that is of paramount importance.
As someone who has spent decades immersed in the marine coatings industry, I’ve seen first-hand how recurring issues continue to hinder yacht refit projects. Time and again the same problems arise: miscommunications, poorly set-out expectations and rushed decisions, all of which compromise the final result. These issues, often
overlooked by those at the helm of these projects, may not always be visible on the surface, but they so often lead to significant setbacks down the line.
Not learning from our mistakes
The most frustrating aspect of refit projects is when the same issues resurface over and over again. These are not trivial mistakes but systemic failures that could easily be avoided with better planning and foresight. Two main factors lie at the heart of these recurring challenges: poor communication and unrealistic expectations.
One of the biggest issues is the lack of clear, consistent communication. A yacht may arrive at a shipyard with the assumption that all aspects of the refit have been thoroughly discussed and agreed upon. However, it’s not uncommon for the paint team to receive last-minute changes or contradictory instructions that completely derail the project.
What begins as a simple misunderstanding often snowballs into confusion, panic and rushed decisionmaking. Details are missed, deadlines are compressed, and instead of a polished project, the result is often one of hasty damage limitation. This poor communication compromises the quality of the work and leads to delays and cost overruns.
Equally problematic are the unrealistic timelines set for yacht refit projects. Yacht owners, designers and project managers often expect flawless high-end finishes in an unreasonably short period. The reality, however, is that achieving a high-quality paint job requires meticulous attention to detail. The process includes surface preparation, thorough cleaning, masking, applying several layers of material and respecting the correct curing times. Cutting corners on any of these critical steps to meet an approaching deadline is a recipe for failure.
Guest Column by Rory Marshall
A rushed job may be accepted in the short term but, over time, the flaws will inevitably surface. The cost of rushing is often greater than that of allowing sufficient time for proper preparation and application.
Similarly, given that coating materials are a small part of the overall coating project cost, it’s a false economy to compromise in this area. Material selection should be optimised around the operational profile of the vessel and the total intended in-service period.
A perfect storm: misaligned priorities and unrealistic expectations
Perhaps the most significant issue in yacht refits is a misalignment of priorities between the desire to get the vessel back into service in a timely fashion and a sufficiently comprehensive job of work to deliver the anticipated result. A ‘scratch and shoot’ reapplication of topcoat is an attractive proposition to meet a short time-line that may not fit all refit scenarios.
On top of that there’s the age-old problem that before the refit, the relatively low gloss of the old topcoat conceals areas of unfairness and other defects that will become obvious when fresh gloss is applied. The final nail in the coffin is that there’s seldom less corrosion to be addressed than initially anticipated … and almost always more.
The road to redemption: a pathway forward
Despite these challenges, there’s scope for improvement in the yacht refit arena. Addressing the issues requires a fundamental shift in how projects are managed, particularly in terms of communication, process and timelines. Here are three key principles that can help turn the tide towards better outcomes:
1.Communication is key
Clear and consistent communication is crucial throughout the refit process. Everyone involved, from the yacht owner’s team, project manager and shipyard, must have a shared understanding of the project goals
‘You could have it good, fast and cheap but you can’t have all three’ ... the owner’s team must decide which two they will choose as priorities in their project and share this objective with the shipyard.
and technical requirements. Sharing progress reports and related documentation with regular check-ins is essential. By ensuring that the entire team is on the same page from start to finish, the likelihood of success is increased.
2.Good understanding is essential
Another critical step towards improvement is ensuring that all stakeholders are better informed of the importance of high-quality materials and proper surface preparation. By taking the time to understand the science behind marine coatings and the specific demands of the marine environment, the yacht owner‘s team can make more informed decisions that will ensure the durability and longevity of the paintwork.
3.Realistic timelines and budgets
You may have heard of the saying ‘You could have it good, fast and cheap but you can’t have all three’. This is especially true in refit. Accordingly, the owner’s team must decide which two they will choose as priorities in their project and share this objective with the shipyard.
Conclusion: Success is possible, but only with patience
The yacht refit industry faces continuing challenges, but with the right approach, these obstacles can be overcome. By improving communication, educating all parties about the importance of process, and setting realistic expectations for timelines and budgets, we can make advances. While technology will continue to play an important role, the foundation of a successful refit still lies in craftsmanship, expertise and a commitment to quality.
Achieving excellence in yacht refits is not a single step, but a journey that requires patience, careful planning and respect for the complexities involved. Only by committing to get it right can we ensure that the future of yacht refits remains bright. RM
Guest Column by Rory Marshall
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Listening comes first
The first in a new series of interviews with industry leaders ... From selling phones in post-Soviet Russia to selling yachts on the French Riviera, Andrey Lomakin discusses the keys to good business in yachting.
BY CONOR FEASEY
We often get lost in the romanticism of yachting. For many, the intimacy we find in the sea is what draws us to the industry in the first place. But for Andrey Lomakin, founder and CEO of West Nautical, it’s a little more complicated than that. Lomakin is a bit of a maverick. He’s one of those rare people you meet who is annoyingly successful at everything they put their hand to and his business career is a testament to that accolade. With a background in mechanical engineering, specifically for aircraft and spacecraft design, Lomakin studied composite materials such as GRP, which ultimately drove his passion for buying and selling composite yachts of the same material.
Speaking with me in The Superyacht Group lounge at the Monaco Yacht Show this year, the Russian native discusses his unconventional route into yachting – from selling butter to boats – his passion for the sea, how the market is evolving to changes in customer demands and, ultimately, how to build a sustainable boating business. Now based in the EU after moving to Switzerland and opening a new office in Monaco, the entrepreneur has come a long way from his beginnings in the former Soviet Union, with his sights firmly set on the opportunities ahead.
“I grew up by a big lake in Russia, so I always had a connection to the water, even if it wasn’t the sea,” he explains. “But really my journey into this business started with a love for gadgets. I bought my first cell phone and my friends kept asking about it, so I thought, ‘Why not sell these?’. Then I bought a car and my friends were interested in that too, so I opened a dealership. Eventually, I got my first boat around 1998. I went to the showroom intending to get something really small, maybe 18 feet, then I quickly upgraded to a 19-footer and kept going.”
Russia back in 1991 was a very different nation from 1998, let alone compared to today. There were very few cars, no mobile phones and definitely no superyachts, says Lomakin. “The only things you could sell quickly were basics like butter and sausages, so that was actually my first business. For three or four years, I focused on sourcing and delivering those essentials because that’s what people needed most. It was business based out of necessity. If you could find butter and get it into the
shops, it would sell immediately. This was the time just after the fall of the Soviet Union and meeting people’s basic needs was the priority.”
In the early post-Soviet days, these gaps in goods and services weren’t necessarily problems, they were opportunities. Bad service wasn’t frustration for a young budding entrepreneur, but a chance to step in, improve the offering, build something sustainable and sell it. And as people’s needs evolved, the demand for communication grew and that’s when mobile phones became the focus for Lomakin’s next venture. Before long, more communication led to more business, which necessitated greater freedom of movement, sparking another lightbulb moment for the young businessman to open up his own Aston Martin and Lamborghini dealership. The market kept expanding and customer demands kept evolving.
“This is the story of post-Soviet Russia,” continues Lomakin. “As affluence in the new nation began to grow, so too did the appetite for business and then luxuries like cars and boats. Once people’s basic needs were met, they could focus on other things.”
Eventually, by 1998, people’s interests shifted and Lomakin, already a successful business owner in his own right, ordered his first yacht. On his first big trip in 2000, Lomakin sailed from the Greek islands through Istanbul and up to Moscow on a three-week journey he’s never forgotten. And like many boat owners, he soon outgrew his yacht and began searching for an upgrade, which in turn embarked him on a journey that would bring him to Monaco years later.
“I went to buy a boat in the Czech Republic, just one boat, but I ended up buying ten,” he laughs. “Then friends back home showed interest, so I brought those boats to a show and they sold out in just two days. That’s when I realised, I enjoyed this business. It’s fun, it’s a passion and it just grew from there. I went from an 18-footer all the way to 24 metres and kept going.”
As business flourished, Lomakin expanded into larger yachts, eventually leading AG Marine, and forming a new group with a long-standing business partner. Over the next 13 years, they built an impressive portfolio, representing more than 20 CEO interview
brands, including Sunseeker, Fairline, SeaRay, Riva, Cigarette and Regal. Leveraging Lomakin’s technical background, the company focused primarily on GRP yachts, with the 36-metre ISA model standing as their largest offering at the time.
In 2016, Lomakin became director and one of three owners of the Fairline shipyard in the UK, relaunching the boatbuilder, a move that marked another entrepreneurial shift from dealer to manufacturer, as he restarted production of the iconic vessels. During Lomakin’s tenure, Fairline achieved three World Yacht Trophy awards at the Cannes Yacht Show, including prizes for best exterior, quality and best new design, marking the shipyard’s first awards in its history.
“With an amazing team of engineers, naval architects, exterior and interior designers, we put together an incredible business producing some amazing yachts for our customers,” says Lomakin.
This wasn’t the CEO’s first venture into new-build projects, however. In 2012, Lomakin set out to build what he saw as one of the best yachts on the market, embarking on a project with Omega Architects: the Mulder 94 Voyager Firefly, completed with interior designer John Vickers. Firefly became a finalist for the best boat in the up-to-30-metre range award at
the Cannes Yacht Show. Exhibited in Cannes and Monaco, Firefly was sold two months later and is currently available for charter.
“But my first client for a truly large yacht came along and I had no experience with yachts of that size. My partner and I had different visions – he was more interested in lake boats, whereas I saw the future in the sea and the Mediterranean for these larger builds,” recalls Lomakin.
With his sights set on the Mediterranean coast, Lomakin soon found himself tackling ambitious new projects. One of his first major clients sought a custom paint job for his yacht to match the precise metallic shade of his Aston Martin. The client even sent over the fuel tank and engine cover to ensure the colour was exact. But metallic paint on a yacht doesn’t behave in the same way as on a car and, once applied, it revealed a greenish tint in certain lighting.
While Lomakin’s team suggested a pearl effect as a solution, a month of heated negotiations ensued, with Lomakin balancing the client’s insistence on the car’s original colour against the shipyard’s practical constraints. In the end, the shipyard absorbed the €155,000 cost difference within the yacht’s €16.5 million budget to honour the request.
Firefly , finalist for the best boat in the up-to-30-metre range award, 2012 Cannes Yacht Show.
Lomakin explains that when he first entered the industry, clients often looked for grandeur and extravagance, what is colloquially known as ‘dictator chic’ by some. Today, he feels attitudes have shifted to almost the opposite. Many clients want simplicity and connection to the water, not extravagance.
The result was an Aston Martin-inspired yacht but also a realisation of Lomakin’s next step in the yachting business.
“After delivering that yacht, I realised yacht management was essential – handling finances, technical issues, the whole operation,” says Lomakin. “I went through my connections in the marine network and a nice lady from the marine industry gave me a contact, Geoff [Moore, MD of West Nautical], and said he might be interested in management. So I reached out and told him, ‘I’m a guy with big plans, come join me’. We met in Southampton and talked about our vision, teamwork and what we could build together. Paul [Hicks, Project Manager], who joined us around 2011 as our first manager, was also involved and he’s still with us today, an absolute powerhouse of knowledge.”
In September 2014, West Nautical was officially registered as a brokerage with a team of five people. Today, it’s grown to 50. With offices in the UK, Dubai and Cyprus, the company and fleet have kept growing. In terms of management, the team had focused on building a fleet of 12 to 16 yachts and being able to manage them comfortably, focusing on maintaining trust and reputation. About three years ago, however, the company surpassed 20 yachts under management and restructured to expand its capacity, now set up to handle up to 50 yachts, as well as extending its reach with its charter central agency and brokerage offerings with a comprehensive range of services across its expanding fleet.
As the company has evolved during Lomakin’s tenure, so too have the demands of owners and guests. He explains that when he first entered
the industry, clients often looked for grandeur and extravagance, what is colloquially known as ‘dictator chic’ by some. These are the yachts that are practically floating palaces, purely designed to make an impression. Today, Lomakin feels attitudes have shifted to almost the opposite. Many clients want something low profile and homely but still close to the sea. They want simplicity and connection to the water, not extravagance.
The West Nautical executive explains that if you look at the plethora of yachts presented at The Monaco Yacht Show this year, you will see an abundance of vessels with spacious, open designs, allowing people to be closer to the ocean. The trend isn’t about being flashy, it’s about creating spaces that are just a metre above the water, so clients feel that intimacy with the sea. “If you want a palace, stay in Paris or London. There are loads there,” jokes Lomakin. “When you are at sea, you want to feel its energy right up close. This shift in owners and guests searching for a genuine connection with the sea is one of the biggest changes in yachting today.”
For many, this is the future yachting is slowly transitioning towards, with more sustainable, practical options. Albeit that take-off seems to be relatively slow in some areas, we’re seeing evergrowing interest in options such as solar panels, electric-hybrid propulsion and vessels that go to more remote areas, evolving into fully connected spaces with minimal direct impact on the ocean.
The older generation, the ‘palace’ builders in their 70s, may still invest in designs of grandeur, but the younger generation, the Gen Zs and Millennials, don’t want palatial yachts and instead are looking
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for something far more minimalist. “This shift is opening up new ways for us to connect with clients,” adds Lomakin. “That’s really the message we’re trying to send: we have options that fit this new vision of yachting – options designed for the next generation.”
Lomakin’s journey from selling mobile phones in post-Soviet Russia to trading yachts along the French Riviera is a testament to his entrepreneurial grit and strategic pragmatism, and that same resourcefulness has defined his approach to business today. For Lomakin, proper business strategy is rooted in smart, practical choices, doing things right, keeping operations lean and approaching growth with an open mind. His decision to base the West Nautical headquarters in Newcastle, rather than the more predictable choice of London or Monaco, may seem unconventional, but it blends both his opportunistic perseverance with a grounded financial strategy that obviously works.
“When we chose to base operations in Newcastle, the decision came down to financial strategy. My philosophy is simple: keep your running costs low and you’ll have a sustainable business,” he
explains. “Setting up in London would mean hiring expensive people and paying high overheads, and that doesn’t guarantee business success. Newcastle has a strong industrial heritage and it’s still home to knowledgeable, motivated people. Connectionwise, there are airports, great hotels and restaurants. Plus, the cost of living is lower, so we’re able to hire skilled people who can focus on delivering quality work without the extreme costs associated with London.”
“Monaco is always interesting for example,” he continues. “After the yacht show, I like to walk around, chat with people and stop by a few evening parties. It’s my hour-long evening walk when I’m here. It’s all part of the scene, but honestly, these events don’t necessarily lead to real results. There’s a lot of time, effort and money spent on networking, gathering business cards and meeting brokers, assistants and crew, but it doesn’t always translate into actual business.”
In the end, the most reliable way to grow a business isn’t through flashy marketing or constant rebranding but through making sure your existing clients are truly happy. A satisfied client is worth
“If someone approaches you, they want to be heard. They don’t necessarily need a full sales pitch right off the bat. They want someone to understand what they’re looking for.”
more than any advertising. They come back and they bring friends. Marketing and appearances are important, of course, but they’re just the introduction. The real work is in focusing on client satisfaction. Each client has distinct needs and understanding those little details is what sets you apart.
“I have one client, for instance, who always asks to see the wardrobe space first,” says Lomakin. “He wants room for a full month’s wardrobe, from formal dinner attire with his wife to casual clothes for jet skiing. Then there’s another, a history enthusiast, who was completely taken by a table we sourced from an antique shop. He spent several minutes just admiring it and for him, that piece became the focal point of the room. And then there’s the practicalminded captain, always thinking about his comfort. His first question? ‘Where do I put my coffee cup and is there a radio within reach?’.”
These specific requests may seem small, trivial even. But they’re everything to the clients who make them. Recognising and meeting these personal preferences builds a level of satisfaction that’s
hard to match and this has been Lomakin’s key to building a sustainable career. While each project may seem similar at a glance, it’s the ability to fulfil these individual needs with care that makes all the difference. Growing a business isn’t just about the product, but rather about making each client feel understood and valued. That’s the kind of loyalty no amount of advertising can buy and it’s what keeps clients coming back.
“When interviewing new brokers, I always ask, ‘When you meet a client, what’s your approach?’ Many will say, ‘I introduce myself, present the product, crack a joke, etc’ and then, eventually, ‘I listen to the client’. But the truth is, listening should come first,” says Lomakin. “If someone approaches you, they want to be heard. They don’t necessarily need a full sales pitch right off the bat. They want someone to understand what they’re looking for. If you genuinely listen to them from the beginning, you have a good chance of winning them over. If not, they’ll move on. Listening to customer demands – that’s the reality of what it takes to be successful in business.” CF
Mulder 94 Voyager Firefly.
Rigging
SW96 Nyumba GT, Courtesy of Southern Wind
Guest Column
by Rob Papworth
It’s all about the
money
… just not in the way you think
Rob Papworth, managing director at MB92 La Ciotat, says owners’ representatives have to be aware that ‘mark-up’ funds spent by refit yards on investment is not just a strategic choice … it’s a necessity for survival and growth.
Winning any refit contract will inevitably at some point lead to a discussion about margins being used on some of the subcontractors. More commonly referred to under the term ‘mark-up’, the idea of what is a reasonable percentage to be added to a quote can quickly become a sticking point with the client. The argument that ‘the mark-up is money for you doing nothing’ is countered by the shipyard’s ‘the margin is needed to pay for our overheads’. But what exactly is a fair overhead mark-up?
If one assumes many companies will share similar overheads to their competitors, at least in a proportional way, on costs such as insurance, maintenance, sales and marketing, and finance and administration, then the remaining main pillars of overheads that will drive the margin of a shipyard will probably be health and safety, sustainability and investments.
There are very few serious shipyards in
the world that are not increasing the proportion of their annual budget on health and safety, and I would strongly encourage any client to discuss this point in detail with any shipyard before even asking them to quote for your purpose.
The ICOMIA Superyacht Refit Group is currently working with yacht underwriters to try to develop a more objective and transparent way of assessing each shipyard’s health and safety, which will in turn hopefully allow some form of benchmarking on which to base our future investments. Almost certainly this will lead to an even higher level of investment in our health and safety, which will ultimately be integrated into a shipyard’s markup and, therefore, be passed on to the client.
Sustainability, particularly in the somewhat all-encompassing guise of ESG (Environmental, Social and
Governance), is certainly an area where shipyards can make significant investments. Whether that’s in the form of better training for team members, improving working conditions or other social initiatives this also costs money even if it’s in the form of time.
Somewhat easier to assess are the investments in infrastructure such as solar panels, water-treatment systems or on-site waste recycling in order to improve a shipyard’s environmental footprint, which leads us nicely to the main point I wanted to address here … investment.
Investing in the future is not just a strategic choice for businesses; it’s a necessity for survival and growth. This is particularly true for superyacht build and refit companies operating in a competitive and technologically advancing industry. As Warren Buffett wisely stated, “Someone’s sitting in the shade today because someone
Understanding how much to invest in which category is the choice of a shipyard’s management team, and in our relatively small industry it would be hard to find an amount that would be considered as the norm.
planted a tree a long time ago.” It’s fair to say that he has a good understanding of forward-thinking investments that yield long-term benefits.
Hard investments such as new shiplifting facilities enhance operational capacity and efficiency as well as catering to larger vessels that are being launched. Green infrastructure investments are essential for our future, while soft investments such as integrated project-management software systems and digitalisation of paperwork, or opening a projectmanagement training academy, streamline operations and improve service quality to our clients.
Understanding how much to invest in which category is the choice of a shipyard’s management team, and in our relatively small industry it would be hard to find an amount that would be considered as the norm. In the technology sector, companies often reinvest a significant portion of their revenues into research and development (R&D). For instance, leading tech firms may allocate more than 20 per cent of their annual revenues to R&D to maintain
a competitive edge. In engineering industries, probably more closely relatable to our business, investment in capital expenditures commonly ranges from five to 15 per cent of revenue, reflecting the need for constantly advancing machinery and infrastructure.
Of course, yacht refit companies are also expected to be suitably attractive destinations that will keep all the crew happy during a refit, so as well as infrastructure for the works there’s also a service industry part providing amenities such as a gym, crew lounge areas and even pools, bars and restaurants. The list of potential investments is pretty much unlimited.
Ultimately, it will probably come down to an owner’s attitude to investment and development so perhaps next time you sit down with an owner and have five minutes to spare, ask them whether they want to pay the very minimum for a company that is shortterm or has very limited investment.
Are you in it for the long term or do you not care what the future of our industry holds? RP
Guest Column by Rob Papworth
PENDENNIS IN THE HEART OF THE MEDITERRANEAN
Located just outside of Barcelona, Pendennis Vilanova offers yachts easy access to a modern 48-berth marina and technical service centre in the heart of the Mediterranean. Our flexible approach and facilities provide the perfect solution for any yacht, whether they are looking for a brief pit stop, a longer-term berthing option or the ability to conduct a small to medium Mediterranean-based refit.
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Photos by Pendennis/Stuart Pearce
Rebuilds and restorations
The prestige passion projects
Martin H. Redmayne discovers there are some stunning modern classic yachts available on the second-hand market for owners who could be tempted to restore them to their former glory.
It’s fair to say that these projects are not for the faint-hearted because issues can be uncovered or discovered, and the key is to refer to them as rebuilds not refits,
BY MARTIN H. REDMAYNE
An owner once said to me, “I’ve always wanted to own a Feadship”, so he started looking at building and designing what he wanted; however, it became clear that, in reality, maybe he couldn’t really afford it. The next step was to look at second-hand Feadships to see what was available, but after scouring the market, he wasn’t ready to buy something that had a dated interior or needed so much work doing.
Perhaps this is a common theme in the brokerage market where dreams divert clients and they start exploring opportunities, only to get confused and distracted, never really deciding.
What was interesting throughout this exercise was the number of classic styled yachts that were available. A quick review of the brokerage sites and listings pages shows there are still a good range on the market today, yet I wonder if clients are looking at them in the right way. Are they thinking ‘old boat, too much hassle, tired interior and aged systems’, or do they have the vision to see beyond the current state and think about how they could upgrade and rebuild them to be iconic and a true classic?
In order to explore the topic further, I had a good chat with Feargus Bryan, one of my trusted industry experts who’s delivered a good variation of classic and contemporary rebuilds and restorations, to gain some insights and ideas.
Essentially, we agreed that pre-Second World War projects, the real classics, are very interesting but have their limitations, mainly due to design and naval architecture, without enough volume to upgrade and improve systems. They’re mainly passion projects and are an investment for life, with the prestige of owning something beautiful and not to make money because the cost of restoration can be prohibitively expensive, and this is the domain of collectors who just want to have the asset as part of a collection.
Yet post-war projects from the 1960s through to the late 1980s, where there’s design pedigree, such as a Bannenberg, Diana Yacht Design or De Voogt,
providing there’s a good steel or aluminium hull, will provide some interesting options.
Bryan explains that some owners who go through the process and invest in a modern classic and bring them back to their former glory, with some unique twists and future-proofing, can enjoy the cachet and status of sitting in a marina full of typical predictable yachts, where theirs stands out and gets all the attention.
Having done a quick review of the older fleet, built post-war but before the mid-1990s, there’s a significant number of yachts that are now in their fourth or fifth decade, with very attractive values on the second-hand market.
There are stunning projects such as M/Y Lady Beatrice, a pedigree 60-metre Feadship on the market for €15 million; M/Y Sheergold, a 42-metre classic Amels from the late 1980s at €4.5 million; the 36-metre M/Y Secret Love from the 1990s, built by Amels, at €4.2 million; M/Y Koru, the 50-metre Bannenberg-designed Feadship, on the market at €8.95 million; and M/Y Monaco, a 37-metre pocket Feadship on the market for €5.6 million, both from the early 1980s.
This list goes on and if you consider the lines, the profile and the brand value of these stunning vintage projects, it needs some intelligent conversations with yards, designers and project teams to map out how to bring these vessels into the modern era.
Perfect for the Mediterranean, these 35 to 60-metre classic projects are on the market to sell at between €5 million and €15 million. With a clear upgrade plan, where the interior, the systems and the engineering are brought up to date, it’s easy to see how much pride will flow through a project that sits elegantly in a marina, with silent energy systems, upgraded hotel systems and new AV/IT … but also with the classic lines of the original superyacht category.
Once a good surveyor has given one of these projects a clean bill of health, structurally and integrity-wise, you end up with a great footprint and
60-metre Feadship Lady Beatrice , on the market for €15 million.
volume to add new cleaner engines and generators, smarter air-con systems and various other technologies that will ensure the yacht operates as efficiently as possible.
With the €10 million investment in the classic project, along with a budget of potentially another €10 million and a project timeline of 18 to 24 months, an owner can bring to the market a beautiful yacht that will attract admiration from all walks of our industry. At anchor or pottering from marina to marina at 12 knots, it will be also admired by those owners who have spent €50 million-plus on superyachts that all look the same across the marina.
It’s fair to say that these projects are not for the faint-hearted because issues can be uncovered or discovered, and the key is to refer to them as rebuilds not refits, for the simple reason that you may end up taking out all systems, pipework, wiring, engines and the interior. Once you’ve taken everything out and have the steel and aluminium shell, you’ll know what you’re dealing with.
However, as Bryant clarifies, it’s wise to take time to plan, design and engineer the project and create a scope of work that will bring the yacht into the 21st century. In essence, it’s the same as buying a classic farmhouse, old renaissance villa or a small chateau or castle, but without the restrictions on restoration style or provenance retention. Yet, the regulations and Class rules will obviously make sure you end up with a yacht that is both safe and seaworthy.
One final consideration that’s worth exploring is the fact that with a rebuild of this scale, bringing a classic pedigree yacht back to life, while integrating cleaner energy systems and putting efficiency and clean tech at the core of the project, combined with batteries, smart air con and maybe looking at seakeeping, you end up with a modern result but, more importantly, you have basically upcycled a superyacht in a super-sustainable way.
The bygone days of the 70s and 80s, when ladies and gentlemen would elegantly potter along the Med coast lines, can return with owners who appreciate this form of ‘quiet luxury’ – the new buzzword of wealth sectors. Imagine a pedigree classic superyacht, gently cruising at comfortable speeds, stopping for lunch in a small bay, having a swim from the aft platform and then snoozing out of the sun on the aft deck in a comfortable armchair, with the gentle fuel-efficient rumble of modern gensets or complete silence of a new battery pack.
Meanwhile other modern yachts are drinking litres of fuel, keeping their vast interior superchilled while being the centre of attention due to the size and Googleable value of their floating palace. It’s comparable to being the owner of a LWB Range Rover or Bentley Bentayaga SUV in one of the world’s major cities, where it seems as if everyone has one. The car owner or collector who has the restored 1970s Jensen Interceptor or Aston Martin DB5 is the one who gets all the admiration and smiles. MHR
Masquerade of Sole arrived at Pendennis in 2011 and was relaunched in 2012 as M/Y A2 .
Andy King, naval architect and director of stability & statutory for Houlder Ltd, sets out the key considerations that all yachts must comply with to keep safe … both at sea and in dock.
It’s widely recognised that the two biggest risks to any yacht are from fire and flood. There has been an increased industry focus and publicity on fires from the likes of Lithium-Ion batteries. This year, we’ve witnessed a number of incidents involving yachts suffering damage or taking on water, the most high-profile being the tragic sinking of Bayesian in a storm in August, which killed seven of the 22 on board.
But such incidents only concern yachts when they have been evidently damaged, taken on water or have been unfortunately lost. However, a yacht which is afloat needs to always have adequate stability, whether it’s damaged or intact, crossing the Atlantic, or moored with its stern door open. Indeed, a yacht will always have certain stability characteristics. Just standing quayside at the recent Monaco Yacht Show, in a sheltered harbour and with minimal wind, it was very easy to see how some yachts were more susceptible to movement and motions than others of comparable size and shape.
The stability of a yacht can be a difficult concept to understand, measure, monitor and predict. We’re dealing with some crucial numbers; the weight of the yacht (its lightweight), the weight of everything loaded on board (its deadweight), the overall vertical
centre of gravity and then abstract concepts such as the yacht’s metacentre. These values or points can’t be seen, can’t easily have a ruler put down alongside to measure them and they are all susceptible to change.
It’s fundamental to get a good understanding of a yacht’s stability and to ensure that it remains compliant with the required criteria. These complex and changing parameters ensure that understanding the stability of a yacht is a technical and operational challenge.
Below is an overview of stability and what a yacht must comply with. It will detail what a Stability Information Booklet is and why it’s important for a yacht. It will also discuss some of the common stability challenges for yachts.
Stability: A brief reminder
At this stage it’s worth thinking about the key question: What is stability? Put simply, the stability of any yacht is a measure of how easily it returns to the upright. If the yacht heels over due to a movement of a weight on board or from an external force such as wind or a wave, how does the yacht behave, how quickly does it return to the upright position and what kind of righting energy does it have?
Yacht stability report
This is called the yacht’s intact stability – how it behaves from a stability point of view when the yacht is intact and complete. The yacht will also have a damage stability behaviour, and this is based on what floating position (heel, trim and sinkage) it will adopt when subjected to a given damage. For both intact stability and damage stability, there are prescriptive criteria which a yacht must achieve to be deemed compliant.
In defining the term ‘stability’ and what a yacht must comply with in terms of criteria, it’s important to draw a distinction between static stability and dynamic stability. The yacht’s static stability will determine its compliance with the required criteria and the yacht’s ability to stay upright and withstand damage. The yacht’s dynamic stability will determine how it behaves in waves and its overall motions. This can often cause confusion in the yachting industry when designing a vessel for comfort with respect to motions and rolling.
There’s a complex set of technical considerations to think about when designing or maintaining a yacht to have compliant static stability as well as having motions acceptable to those on board. If a vessel has a centre of gravity that is too low, the yacht can end up slowly rolling, whereas if the centre of gravity is too high, the yacht can be very stiff and have high accelerations. While bearing this dynamic aspect in mind, we’ll focus purely on static stability and the required criteria.
What stability does my yacht require?
The three big factors which affect what a yacht must comply with from a stability point of view are the Flag administration, registration and operation. Stability criteria are a statutory matter which means that they are defined and applied by the yacht’s Flag administration. Linked to this is the yacht’s registration and whether it is commercially registered and operating on charters or privately registered.
The operation of the yacht is also fundamental in terms of whether it is restricted in terms of range. These three factors should always be carefully considered when it comes to understanding the way in which intact and damage stability criteria are applied and complied with. If there’s any question, it’s always worth discussing with the Flag administration or Classification society of the yacht in question.
At this point it’s important to explore further the distinction in stability criteria requirements between privately and commercially registered yachts. A commercially registered yacht must comply with the applicable stability criteria as set out in the relevant code from the Flag administration. For a privately registered yacht which is registered with a Classification society, the application of stability criteria becomes a Class matter, and it’s often the case that intact stability, a possible range restriction and an approved Stability Information Booklet is still required. It’s important to remember that, whether privately or commercially registered, the physics and safety critical nature of stability for a yacht remain the same.
It’s also worth noting that the required stability criteria represent a minimum standard that must be met. There’s nothing to stop a new-build yacht being designed to meet a higher stability requirement, although there’s obviously a cost and design implication to be considered alongside this. This exceedance of the stability requirements may come in the form of a privately registered yacht opting to comply with damage stability requirements or by exceeding the criteria values through larger compliance margins.
The Stability Information Booklet should be kept on board ... Perhaps the five most important pieces of information about the yacht are its lightweight, maximum draught, loading conditions, openings and limiting stability information.
The yacht may change through its life and therefore it’s important to understand if the Stability Information Booklet accurately reflects the current use and physical condition of the yacht.
The Stability Information Booklet – what’s in it and why is it important?
In almost all cases, a yacht will be required to have a Stability Information Booklet. This is a fundamental document for the yacht and will set out everything related to the stability and loading of the yacht. The Stability Information Booklet will be developed during the build of a new yacht and will often be one of the last documents to be finalised owing to the nature of some of the information it contains that can only be known when the yacht is complete. The Stability Information Booklet will then be kept on board and will be updated as required throughout the life of the yacht. It will be an important document for outlining restrictions in the event of a survey or resale of a yacht.
It’s important to point out that the title of the document is key; it’s a booklet containing all stability information relating to that yacht. There’s no such thing as an intact stability booklet or a damage stability booklet. The yacht may have a separate and supporting damage calculations booklet, containing reams of numbers and results, but the Stability Information Booklet is the overarching document and can be read and understood on its own.
The Stability Information Booklet should be kept on board and, as well as a lot of technical details about the yacht, will detail some key information. Perhaps the five most important pieces of information about the yacht are its lightweight, maximum draught, loading conditions, openings and limiting stability information.
The lightweight of the yacht will define the weight and centroid with absolutely nothing on board. This is determined at build by an inclining experiment and is crucially monitored throughout the life of a yacht by a lightweight survey; either every five years or after a major refit.
The maximum draught of the yacht will define the maximum floating position for the vessel; it may be limited by design, by the structure, by hull openings, or by some other statutory aspect.
The loading conditions of the yacht will document the way in which it is loaded when full of fuel, fresh water, guests and stores and how it is loaded when it is at its lightest. The former is called the departure loading condition and the latter is called the arrival loading condition. The loading conditions will set out how tanks and items on board are loaded and will set out how the loading of the yacht changes from departure to arrival.
In this sense, it’s important to note that these are statutory loading conditions and may not represent operational loading conditions. These additional operational loading conditions may still be included in the Stability Information Booklet and are always useful to have as a reference for those on board and ashore.
The internal and external openings on the yacht will be set out in the Stability Information Booklet. This will include interior doors and hatches and their watertight integrity which are designed to stop progressive flooding between internal compartments. The list will also include
Andy King, naval architect and director of stability & statutory for Houlder Ltd.
An example of a Stability Information Booklet.
the external openings which will define where and how they are open. The openings could be always open (such as an engine-room vent) or they could be a weathertight door or hatch.
The way in which these openings are considered and treated in stability calculations can be very technical but the important point to understand is that a critical opening may terminate the stability of the yacht. This means that there may be an opening which, when immersed, causes what is called downflooding – this is crucially different from the angle of vanishing stability. It’s important to note that the downflooding angle can occur at a much earlier heeling angle than the angle of vanishing stability.
The yacht’s limiting stability information will often be displayed as a set of curves called the Maximum Vertical Centre of Gravity (VCG or often referred to as KG) curves. These curves will define, for a given draught or displacement, the maximum vertical centre of gravity (adjusted for fluids on board) that a loading condition can have before the condition is shown to fail the stability criteria. It’s worth noting that there’s a naval architectural peculiarity in that a loading condition may sit above the maximum vertical centre of gravity, so would be shown to fail the stability criteria, but would be found to comply with the stability criteria by direct calculation.
If there’s ever a question over the content of a Stability Information Booklet always ensure to
consult a qualified and experienced naval architect, your Flag administration or Classification society.
Does the Stability Information Booklet match the yacht?
This is a critical question when assessing the stability behaviour of a yacht. The yacht may change through its life and therefore it’s important to understand if the Stability Information Booklet accurately reflects the current use and physical condition of the yacht. For example, is the yacht loaded as shown in the Stability Information Booklet? Are the yacht’s openings accurately recorded for location and closures? Does the yacht have a pool which is empty in the Stability Information Booklet and full in practice? Does the yacht use a helicopter which is not featured in the Stability Information Booklet? All these questions are key to get right.
The fact that a yacht changes throughout its life is perhaps difficult to fathom. Even if the ownership doesn’t change and no substantial modifications are made to the yacht, it’s common to find that the lightweight and vertical centre of gravity tend to increase over time. In fact, this is common for all vessels. Equipment, spares and minor things are brought on board, items get squirrelled away in voids, changes may be done that are not recorded; all these actions may be minor in isolation but come together to mean that the yacht is changing.
This is normally captured every five years when a yacht will be subjected to a lightweight survey.
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The lightweight survey will inform the captain and management company about the change in the lightweight and the longitudinal centre of gravity (affecting how the yacht trims forward and aft in the water). It will then be compared against limits to determine if the yacht needs to have an inclining experiment.
An inclining experiment is a key event for any yacht. It’s a practical measurement on board that will determine the yacht’s lightweight, longitudinal centre of gravity and vertical centre of gravity. It will mean that the yacht will have a new Stability Information Booklet, superseding everything that has come before and therefore it always brings the stability assessment for the yacht up to date.
Common yacht stability challenges
It’s useful to share and discuss some of the common challenges which cause issues for yacht stability. The challenges and scenarios that may need special stability consideration are numerous and complex but, here, we’ll present and discuss some of the most common ones.
Growth: By far the most common challenge is related to the last section – specifically, whether the Stability Information Booklet matches the yacht and the weight growth of the yacht. This challenge may present itself in one of two ways: either the newbuild yacht doesn’t accurately reflect the as-built inclining experiment or the yacht has experienced weight growth through its life.
For example, for the first issue, maybe the asbuilt inclining experiment was conducted too early and then, at the first five-year lightweight survey, the yacht is found to be over the allowable lightweight tolerances without any modifications having taken place. If the yacht has experienced weight growth through its life, then both issues will mean that a complete recalculation and reapproval of the stability of the yacht is required.
Stability margins: The big challenge with growth then comes if the yacht, upon recalculation, can’t comply with the applicable stability criteria. For some yachts, this can become a significant problem that impacts operation and future capability. In the most impactful way, a yacht may have gained weight and therefore can’t load all its deadweight without loading deeper than its maximum draught.
This means that the yacht is restricted in terms of deadweight in its deepest condition. Then, in reverse, it may also be restricted in its lightest condition; this is when the stability of a yacht is usually most onerous from a vertical centre-ofgravity point of view and perhaps some deadweight is needed to be retained to keep the centre of gravity down.
These two issues can manifest themselves in the following scenario: Imagine a yacht which can’t load all its tanks in its deepest condition and can’t empty all its tanks in its lightest condition. The net result is an operational impact on range. There are ways around this but it requires careful and bespoke technical consideration from a naval architect. Possible options may be loading to a deeper draught (if this is possible from a structural and load line point of view), carefully reanalysing the stability approval, fitting solid ballast, or physical geometry changes such as a larger swimming platform which can greatly improve stability.
A yacht will be able to withstand gains in weight and centre of gravity if there is adequate growth and stability margin in the original Stability Information Booklet. The growth margin can be included upon
It’s highly recommended to have a review of the Stability Information Booklet for your yacht, understand how and when it was approved and to determine if it accurately reflects the yacht as it’s operating today.
delivery to account for the inevitable through-life growth that we’ve discussed. The stability margin can be included by ensuring that, upon delivery, the yacht doesn’t have loading conditions that are tightly pressed up against the maximum VCG curves.
Hull doors and sill heights: There was a recent revision to the Red Ensign Group Yacht Code Part A and this included several updates to the stability requirements, some of which are still being debated. Perhaps the most significant was the requirement to explicitly consider the impact on stability when opening hull doors and having low sill heights. There’s a clear design and aesthetic quality to having openings that are close to the waterline but this also comes with important technical considerations.
The stability of a yacht in the approved Stability Information Booklet relates to how the vessel is loaded in what are called seagoing loading conditions, that is the scenario when the yacht is closed up, secured for sea and able to transit between locations. There’s a significant period of a yacht’s life when it is secured and floating, perhaps with doors open and therefore not in a seagoing loading condition mode. It’s this scenario the new requirements aim to capture: analysing and assessing, for a given sill height, what may happen to the yacht if a layer of water enters the internal space – for example, the beach club or tender garage.
It’s evidently beneficial that if this happens, the yacht is able to survive the flooding and subsequently deal with it through closing hull doors, draining or pumping flood water and, critically, not allowing the flooding to spread to other compartments.
Staying compliant at all times: There’s a useful question to consider in yacht stability; can my yacht go from its deepest condition to its lightest condition in a compliant manner? The answer to this is in the Stability Information Booklet. The common challenge here comes when compliance can be achieved only by active management of weights on board and this is generally not permitted. For example, if tanks are shown to be used as effectively water ballast tanks or whether active systems such as watermakers are relied upon to be doing the same.
In all these ‘active-management’ cases, the industry should be pushing for yacht designs
and operations that are compliant by design at all times– i.e. adequate and compliant stability is achieved without active intervention which may be operationally missed, forgotten or fail.
Similarly, does the yacht comply in the event of damage? For example, does a pool need to be dumped, are internal downflooding devices needed to be active, are tanks needed to correct heel angles? Again, all these active actions are things that we should avoid to ensure a yacht is operating well from a stability point of view.
Special operations: The last common challenge that we’ll discuss are the scenarios when the yacht is doing something different. For example, we’re thinking about the times when the vessel may be using a helicopter, launching a tender, hosting a party or even using the pool. All these scenarios will have a significant impact on the stability of the yacht and should be things that need to be considered and checked.
Think about the simple act of filling the pool; the yacht needs to move weight to a (generally) higher location and the pool will have what is called a free surface effect. This effect is crucial and reflects the ability of the surface of the pool water to move about. It will have a measurable effect on the stability of the yacht. As well as heeling due to launching a tender or having the additional weight, albeit temporary, of a helicopter on board, all these aspects need to be thought about carefully.
Conclusion – yacht stability always matters
There have been so many news articles in the yacht industry of late relating to stability incidents, so it’s important that all stakeholders keep a keen eye on the stability of their yachts. It’s highly recommended to have a review of the Stability Information Booklet for your yacht, understand how and when it was approved and to determine if it accurately reflects the yacht as it’s operating today.
Stability should not be something that is approved upon delivery of a new-build yacht and never considered again. It should be actively managed and monitored throughout the life and operation of the yacht. As we’ve said above, if you have a question or concern relating to your yacht then it’s always best to contact a naval architect, your Classification society or Flag administration. AK
Safe navigation through the ‘corruption corridors’
John McCaughey, of John Francis International, raises the issue of yacht surveying, refitting and refurbishing fraud, and offers measures to mitigate such unethical behaviour.
First and foremost, we wish to acknowledge the many competent, ethical, trustworthy, exacting and conscientious professionals in our industry. Our goal here is to provide reassurance and productive solutions. Anyone can be a critic.
However, the reality exists that the yacht refitting and refurbishing industry, synonymous with luxury and opulence, is increasingly becoming a hotbed for sophisticated frauds, thefts and scams, leaving many yacht owners navigating the treacherous waters of financial loss and betrayal.
The allure of the high seas comes with its own set of perils, not all of which are natural. Among these, the menace of fraud in yacht surveying, refurbishing and refitting is particularly insidious, preying on the trust and lack of specific technical knowledge of yacht owners. There exists regional maritime-related ‘corruption corridors’ in the US and abroad.
There are several factors driving the unethical behaviour and/or substandard services in our industry, including:
• The tremendous growth of our industry, and number of vessels, particularly vessels in excess of 30 metres in length, outpacing the number of qualified service contractors, shipyards and qualified shipyard personnel
•Lack of, or inadequate, regulations governing the yacht refit and repair industry
•Immigration laws that restrict the movements of craftsmen to and from the United States
•Lack of marine industry-related vocational training, particularly in the United States
• Limited quantity of experienced, yachtindustry knowledgeable and ethical project managers
•A proliferation of unethical and dishonest individuals, without integrity or character
Here, we shed light on murky aspects of our glamorous industry. We explore the various avenues through which fraudsters are making waves, while offering measures to mitigate and eliminate unethical and criminal behaviour, preserving your investment and peace of mind.
Surveying
At the onset of a yacht-purchase process, the brokers involved should suggest a thorough inspection of the vessel by one of x (three) independent yacht surveyors. While it’s beyond the scope of this article to address the myriad of circumstances influencing the scope of such an inspection, suffice to say, there exists, all too often, an inadequate scope of inspection and, consequently, omitted information regarding specific aspects and conditions of the yacht, which may translate into a significantly higher refitting price tag and, ultimately, higher purchase price.
For example, while aluminium has a good strength-to-weight ratio versus steel, an aluminium hull must be descaled on the hull bottom as well as within interior bilges, holding tanks and cofferdams to facilitate visual inspection for structural integrity-compromising corrosive pitting. You cannot rely upon ultrasonic transducers (UT) to detect the corrosion.
Such an inspection would include all sea valve hull penetrations stub-ins and flanges, all holding tanks: fuel, lube oil, dirty oil, fresh water, black water and grey water tanks, propellor shafts stern tubes, roll stabilisers, actuators hull sleeves, rudder posts hull sleeves, sea chests and related manifolds and piping,
A sophisticated method of defrauding owners involves the use of shell companies. In many cases, these entities declare bankruptcy or dissolve before the project is completed, leaving the owner with no recourse for recovering their investments.
bilge suction-related manifolds and piping, fuel-transfer-related manifold and piping and fire-water piping.
Overcharging and phantom services
A common scheme involves overcharging for services, equipment and materials, and billing for work never performed. Yacht-refitting projects, known for their complexity and the bespoke nature of the tasks involved, offer fertile ground for unscrupulous service providers to inflate prices or charge for high-end materials while installing substandard alternatives. Owners, especially those who might not be present during the refurbishment, can find it difficult to verify the authenticity of the work cited on their hefty invoices.
The ghost crew con
Another prevalent scam is the hiring of ghost crews or subcontractors. Owners are billed for the wages of workers who either don’t exist or were never involved in the project. This type of fraud not only inflates the project cost, but also delays the completion timeline because the actual workforce is significantly smaller than that paid for.
Warranty woes
Fraudsters have also been known to offer extended warranties for work performed or parts replaced, charging a premium for this assurance. However, when the time comes to claim these warranties, owners often find that the service provider is unreachable or out of business, or the warranty terms were so narrowly defined that they offer no real protection against defects or failures.
Counterfeit parts and materials
The use of counterfeit parts and materials is a particularly dangerous form of fraud.
These substandard components not only affect the performance and aesthetics of the yacht, but also pose serious safety risks. From fake branded engines to lowquality teak wood masquerading as highgrade material, the range of counterfeit items being used is vast and often difficult to detect until it’s too late.
The shell company shuffle
A sophisticated method of defrauding owners involves the use of shell companies. After securing a contract, a service provider might funnel funds through various shell companies, complicating the financial trail. In many cases, these entities declare bankruptcy or dissolve before the project is completed, leaving the owner with no recourse for recovering their investments.
Non-existent document version control
Upon request to submit written estimates, bids or quotes towards specific tasks and/or scopes of work, vendors submit untitled or ambiguously file-named documents. If the estimate, bid or quote is approved, and an invoice of retainer or deposit is requested, another untitled or ambiguously file-named document is submitted. This document may, or may not, denote the deposit amount or reflect a new balance due.
This is repeated throughout the project to address change orders, labour and materials overruns, and ultimately final billing. No two documents share the same file name, file names provide no indication as to the content of the document. The documents may contain repeated dialogue run-ons regarding services and labour hours provided; this dialogue can be redundant and overlap other dialogue in unrelated documents.
John McCaughey, John Francis International.
Low number of tradesmen licensing and certifications
The yachting refit and repair industry has no governing body that requires and ensures trade and technical competency of workers that service, repair or modify luxury motoryachts. Some vendors do in fact enrol employees in courses created and conducted by maritime-related training entities. However, an individual with no previous experience can enrol in and pass such certification courses, which are typically three to five days in length. This of course doesn’t qualify them to perform technically related tasks, nor charge $150 or more per hour, as is presently common and accepted practice. For example, very few maritime industry electricians know how to establish an Electrically Safe Working Condition (ESWC) per NFPA 70E. Apprenticeships preceding the recognition as a journeyman tradesman, through trade unions such as the International Brotherhood of Electrical Workers (IBEW), can be two or more years in duration.
Non-existent graduated labour rates
Vendors in the yachting industry typically charge a flat labour rate for every worker who is assigned to your yacht, irrespective of whether they are in fact tradesmen or have tradesman experience, licensing and certifications. These rates can range from $75 to $250 per hour.
Tax-exemption scheme
Captains and/or ‘project managers’ (PMs) establish business entities such as a limited liability company (LLC) or corporation, then recommend the yacht owner fund the project through this entity, avoiding taxation against a significant portion of the project
There are ship and repair yards that service yachts to which they overcharge for services rendered and charge exorbitant surcharges against outside contractor’s invoicing.
costs. This can include acquiring a taxexempt resale certificate for a yacht owner’s domestically established LLC or corporation.
These individuals will then submit funding requests in advance of onboarding vendors, reconciling the funding with vendors’ estimates, deposits requests and milestone payments invoicing. These deposits requests and invoices can be fraudulently created and/or modified to reflect higher costs than the original quotes and invoices. Alternatively, the ‘PM’, upon receipt of a vendor’s estimate, instructs the vendor to resubmit the estimate with a higher quote, paying the ‘PM’ the difference.
Shipyard complicity
There are ship and repair yards that service yachts to which they overcharge for services rendered and charge exorbitant surcharges against outside contractor’s invoicing.
There are ship and repair yards that service, build and rebuild yachts and other vessels with decades-long histories of substandard and/or incomplete projects, grossly late delivery dates, with outrageous costs over-runs totalling tens of millions of dollars, abandoning their obligations to good faith and fair dealing, and fiduciary duty.
These same yards will secure, on behalf of the vessel’s owner, the services of an outside contractor, charge exorbitant surcharges against said outside contractor’s invoicing, while knowingly observing the contractor also abandoning their obligations to good faith and fair dealing, and fiduciary duty. Upon lawsuits filed against them by the owners of these yachts and other vessels, they declare bankruptcy and continue the same behaviour towards other unsuspecting customers.
Mitigation measures
Protecting oneself from these fraudulent practices involves a combination of diligence, education and professional assistance. Yacht owners and/or representatives are advised to:
• Interview and vet PM candidates through fellow yacht owners or their representatives, conducting background checks on them, and vendors, with references
•Ask the candidate if PM software that provides transparency is utilised
•Establish accounting methodology and weekly reporting for petty cash, charge cards and invoicing
•Maintain an on-site presence through trusted representatives or invest in thirdparty oversight during the refurbishment process
•Establish document version control: utilise document file name and change orders file-name methodologies
•Demand that contracts, service, pur-
chase and change orders from shipyards and outside contractors include language requiring:
–Negotiable surcharges for sub and outside contractors, based upon volume of work and ratio of work awarded to the shipyard versus the vessel’s preferred outside contractors
–Detailed scope of works
–Specifications for all materials and OEM manuals for all equipment
–Technical drawings for proposed and approved systems
–Installations meet applicable safety and quality standards (for example NEC, IEEE)
–Defined start and completion dates, and daily allocation of manpower
–Graduated labour rates: labourers/ apprentices/journeyman/tradesman (does the shipyard or contractor have an apprenticeship training programme?)
–Documentation of all work performed,
Utilise skilled day labour force to offset costs and reliance upon contractors and shipyards. Daily time and completed assigned tasks cards must be documented and verified.
including itemised materials and equipment billing
–Progressive photographic evidence of all work performed: prior to commencement of work, stage by stage and completion
–Requirement for inspection by PM and/or owner representative and Class surveyors (vessels in or desiring Class status) prior to the release of progress/ milestone and final payments
–Invest in independent inspections, or a full-time QA/QC officer, to verify equipment and materials used, ensuring compliance with applicable standards, regulations, contractual agreements
–Require work history and certifications of tradesmen
–Require vendors to have state contractor trade licensing
–Utilise skilled day labour force to offset costs and reliance upon contractors and shipyards. Daily time and completed assigned tasks cards must be documented and verified
The yacht refitting and refurbishing industry, with its high-value transactions and bespoke services, will always be an attractive target for fraudsters. However, by taking informed and measured steps, yacht owners can navigate these murky waters safely, ensuring their floating paradises are professionally and beautifully appointed and maintained.
Again, we wish to acknowledge the many competent, trustworthy, ethical, exacting and conscientious professionals in our industry.
We’re inviting collective and collaborative efforts to uphold industry values and integrity, ensuring that our clients – yacht owners worldwide – fulfil their dreams of relaxation, intimacy and adventure with the privacy and security that is becoming scarcer in our increasingly intrusive society. JM
Guest Column by Richard Franklin
Why a pre-refit survey is a good investment
Richard Franklin, managing partner of Yacht Survey Partners, says clear objectives and putting plans in place to meet them will reduce the risk of delays and cost overruns.
A while back I had an unhappy owner suffering from the pain of an overbudget, over-time refit, asking how he could avoid that same unhappy outcome next time around. His crew and management team had been working hard on the project for ages, yet it still came unstuck. The work variation orders came in thick and fast and, with them, control over the final cost and redelivery date went out of the window.
He’d started the project with two simple assumptions: my management company and crew are all over this, and my boat’s in Class, so they’ll be driving what needs to be done. Both are true … up to a point. But there’s a lot more to it than that, so perhaps a surveyor might be able to help.
Of course, the crew and management company are all over the refit planning but, sometimes, an outsider looking in can offer insights, especially when they’re in a position to offer experience from working with a wide range of different yachts and shipyards.
Rule number one of getting from A to B is knowing where A is. An independent
objective assessment of where things stand forms a solid starting point for better informed decision-making. Of course, crew and management companies know their yachts, but I’ve yet to complete a survey in which there wasn’t a long and interesting list of issues arising; fresh perspectives, fresh eyes and seeing different boats week in, week out can see things that get overlooked, forgotten or put into the too-difficult basket. A pre-refit survey can help to bring these out into the open.
No yacht ever has all the money in the world and all the time in the world (sometimes one or the other but, alas, few of either). Setting priorities based on objective survey data, combined with understanding what is on the refit wish list and why, can help to make the most of available resources, filtering out the essential from the non-essential.
Having a known starting point and a clear set of objectives makes it easier for the owner’s technical team to write clear refit specifications enabling shipyards that have been asked to quote to respond with
accurate proposals that are more easily comparable by the owner’s team, making for a quicker and more accurate assessment of proposals and better-informed decisions. Hopefully, the known starting point, clear objectives and plans to meet them will reduce the scope for delays and cost overruns, while being better placed to hold shipyards to account on delivery.
As planning for a major refit period based on a five- or ten-year special Class survey period usually starts around 18 months prior to entering the shipyard, ideally the pre-refit survey should be programmed at the start of that 18-month period. We like to work online (IDEA or Pinpoint Works) to create a live survey report that can form the basis of a refit planning and tracking system, but in a way that allows that the data gathered can be collated, sorted and shared with the team.
Having outlined something like the steps I’ve just laid out to that same owner with whom I’d been having the discussion with at the start, he turned around and asked me if we’d take it one step further and manage the project for him, to which my answer was ‘Absolutely not’. There are many very good refit project managers out there, and we’d rather work with them, helping to get the project off to the soundest possible start, rather than trying to do what they specialise in.
In summary, when you’re planning a multi-month, multi-million-euro refit, I believe it pays to lay firm foundations by including a pre-refit survey as part of your refit planning process. In my navy days, we used to refer to ‘the 6Ps’. Out of interest I just Googled it after all these years, and while they appear to have changed some of the words, the gist is still the same … Perfect Prior Preparation Prevents Poor Performance. RF
THE BIGGER THE FLEET, THE HARDER THE CHALLENGE
Nowhere else in the industry are the strains of the growing fleet and expansion more pronounced than on refit. But alongside the household names, the emergence of refit facilities in less traditional locations signals an industry evolving beyond its established boundaries.
We’re under no illusions about how the industry has grown in recent years, with some shipyards at total capacity until the end of the decade, marinas bursting at the seams and a revolving door of constant projects in and out of refit yards.
Naturally, the growth of the newbuild sector puts a continuous strain on the rest of the industry to meet the growing demand for talent and services, and few sectors feel this more than refit. Here, the rising tide of yachts is exponentially pronounced, with every aspect of the job becoming increasingly complex and challenging as client demands change. However, despite the mounting challenges, many top yards are stepping up to the plate.
The importance of refit is something
BY CONOR FEASEY
the industry can’t overlook if it wants to continue on its current trajectory. The fleet currently has just over 6,000 vessels, providing a large captive audience for potential refit and rebuild. It’s a pretty straightforward reality to consider: there are more yachts; therefore, they need more places to be maintained and upgraded. Refit provides the opportunity for yachts to receive a new lease of life, being upgraded and future-proofed as technology rapidly evolves and the chokehold of strict regulations tightens.
The growth of the refit sector
According to our data (opposite), two main factors make the refit market a compelling and reliable investment. First, there’s an undeniable market resilience, with the sector proven to have
weathered previous severe economic decline. The refit market steadily grew yearly as the new-build sector plummeted from its all-time peak in the 2008 financial crisis. This solidifies refit as a relatively safe investment. Plus, with the typical lifespan of a yacht stretching more than 25 years, there’s also usually plenty of lead time before any potential slowdowns.
The second factor is the growing demand for larger yachts, which has had a transformative impact on the refit market. Yes, the market is growing in number, and there are behemoth yachts in the fleet, but the market is actually increasing in every LOA category. This has subsequently caused associated refit costs to surge.
For instance, refitting a yacht over
A report on the refit investors
Annual total refit market vs annual new build count, 1995-2030
The above graph presents the total volume of the global refit market segmented by LOA alongside the annual new-build count, to highlight the speed at which the industry has grown over the past two decades and is predicted to continue growing up to 2030, despite the drop from the 2008 peak in new builds.
Refit market volume by LOA category, 2015-2029 (in five-year increments)
This graph breaks down each LOA category, showing the volume change within each category in five-year increments. It illustrates that, while yachts over 60 metres are occupying an increasing share of the refit market (rising from approximately 7.4 per cent during 2015–2019 to a predicted 9.7 per cent in 2025–2029), each LOA category has shown an upward trend from one five-year period to the next, a trend that is expected to continue over the next five years as well.
Source: Superyacht Intelligence
Source: Superyacht Intelligence
The Superyacht Intelligence Team
Most significant area of growth for the industry
Refit and rebuild of the fleet
Future-focused new-build project
Smart charter and new ownership models
Operational service and support
Sales and purchase
Source: Superyacht Intelligence CEO Survey
90 metres can be five to ten times more expensive than a refit for a 30 to 40-metre yacht, ultimately driving up the market quite dramatically. So this growth isn’t simply about more yachts on the water or getting bigger, but rather about the shift towards vessels with higher complexity and costs, which bodes well for longterm market potential, again marking it as a sector for serious long-term growth.
This quintessential perfect storm of supply and demand is catching the eye of investors and entrepreneurs alike. In The Superyacht Report: Owners Focus, we presented the preliminary results of Superyacht Intelligence’s CEO Survey. The demographic breakdown of respondents encompasses our industry’s highest echelon, gauging senior leaders’ views from shipyards to brokerages, consultants to service providers.
Almost 30 per cent of respondents were direct CEOs, followed by service companies at 19 per cent and shipyards at 15 per cent, with the remaining respondents hailing from companies within research, consultancy and marketing. Interestingly, a resounding 36 per cent of these industry leaders identified the refit sector as the industry’s most significant growth area (see above graphic).
Within this sphere, household names have risen to prominence over the past
quarter of a century through constant innovation, evolution and investment, consistently performing the holy trifecta of what it means to be successful in this business. And while they lead from the front, there are also emerging and expanding shipyards worldwide that are rising to the challenge and meeting this ever-growing demand in an increasingly global fleet. These are the refit yards of the future, building along the paths less trodden, and investment in their future is key to sustaining ours.
New investment by established industry leaders
The more firmly established refit players are all too aware of the growth in demand. As the new-build market significantly diminished, the refit sector shouldered the burden, keeping the gears of the superyacht industry in motion. Investments, acquisitions, breakthroughs in technology – it’s the sector that took up the mantle as the rest regained its footing.
However, as it did, leaders in this space had to grow their facilities and offerings in tandem as more and more yachts continued to hit the water. Yards bought up more space and built more docks, sheds and infrastructure. By adapting to evolving client demands
and expanding their capabilities, they’ve ensured they can handle an ever-growing pipeline of projects. In fact, we can see how they have grown over the years.
MB92: Take MB92, for instance. The company has grown beyond its origins as Marina Barcelona 92 to a specialised superyacht refit group with several sites across the Mediterranean – and with plans for further expansion. In 2018, the company acquired Compositeworks and Blohm+Voss La Ciotat to found its first site in France. Since then, the shipyards have continued to grow, launching a 4,800-tonne shiplift in Barcelona and a 4,300-tonne shiplift in La Ciotat.
Operational space across the two sites has expanded over the past decade to cover more than 150,000 sqm, including three dry docks, berthing and haul-out options for the world’s largest superyachts, and the firm has now further expanded its operation to GolfeJuan in the South of France, a 9,000 sqm facility.
Adriatic42: Moving slightly eastwards, the likes of Adriatic42 have become a vital part of the refit landscape despite only being established in 2022. Based in Bijela, Montenegro, the refit facility has instead fittingly given a new lease of life to the former Bijela shipyard, providing clients with a 180-metre float-
ing dock capable of lifting 10,000 tonnes to accommodate some of the most significant sectors of the fleet.
Rybovich: On the other side of the Atlantic, Rybovich has grown its capabilities to keep pace with demand in North America. In 2006, the company opened its 14-acre Rybovich North facility in Riviera Beach, Florida, expanding its service capacity to handle larger vessels. By 2015, Rybovich had improved its West Palm Beach location by deepening the marina to accommodate yachts up to 90 metres.
Safe Harbor Marinas: The company’s growth then took a major leap in 2021 when Rybovich was acquired by the world’s largest marina operator, Safe Harbor Marinas. This acquisition set the stage for further expansion, and the yard is currently expanding its Riviera Beach site into a 23-acre refit centre.
REFIT INVESTMENTS REPORT
Savannah Yacht Center: Similarly, Savannah Yacht Center was bought by Safe Harbor in 2023, meaning the shipyard is poised to continue adding to the investments it has made in recent years, such as its 3,240-tonne ship lift and 140-metre dry dock, added in 2018 and 2017, respectively.
Rising to the challenge
However, the challenge now lies in the fact that available space is becoming increasingly scarce. As the market grows, even the most established refit yards may need help to keep up with demand. With limited land and physical constraints, the pressure to accommodate a continuous influx of projects could make it difficult for these facilities to maintain their current level of service and expand further to meet the rising expectations of their clients.
Recent investments at Lusben Livornov include a newly announced keel pit for sailing yachts.
NEW REFIT YARDS AND AREAS OF SIGNIFICANT GROWTH –THE MEDITERRANEAN
1. ATLANTIC REFIT CENTER & PORT ATLANTIQUE
• Two dry docks
• A platform of 2,000sqm is available along the two dry docks
• Maximum travel lift capacity: 250t
• Maximum yacht length in water: 140m
• Maximum yacht length out water: 140m
• Maximum beam: 21m
• Onshore work area: 5,000 sqm
1. ATLANTIC REFIT CENTER & PORT ATLANTIQUE
Invested in 100-tonne concrete blocks in 2022 to optimise yacht blocking at the site’s two graving docks.
6. NAUTECH
Irrespective weight, La accommodates yachts annually
7. CANTIERI
Expanded 24,000 yachts
8. ESAOM CANTIERE
Introduced Travel
2. TANKOA
• Submersible dry dock: 120m and 4,500t
• Maximum yacht length in water: 120m
• Maximum yacht length out of water: 120m
3. PORT DENIA
• Dry dock capacity: 150t
• Dry dock capacity: 65m
• Slipways: 80m, capable of hauling out yachts up to 1,200t
• Maximum travel lift capacity: 620t
• Maximum yacht length in water: 135m
• Maximum yacht length out of water: 65m
• Maximum beam: 14m
• Onshore work area: 50,030sqm
4. VMG REFIT & REPAIR
• Maximum travel lift capacity: 300t
• Workshop space: 2,000sqm
• Hardstanding: 37,000sqm
• Interior shed: 5,000sqm
2.
TANKOA YACHTS
Civitavecchia facility opened following investment.
3. PORT DENIA
Upgraded travel lift capacity, focusing on superyachts over 30 metres (2023).
4. VMG REFIT & REPAIR
Based in Sagunto, near Valencia, VMG plans to announce a new expansion later in 2024.
5.
IPM REFIT,STP PALMA
8-million-euro investment, constructing five new berths for yachts up to 110m and expanding its total area to 162,000m².
5. IPM REFIT, STP PALMA
• Travel lift capacity: 1,000t
• Max in-water length: 120m
• Max-out-of-water length: 120m
• Max beam: 7.5m
• Onshore work area: 13,0000 sqm
14. €12 will by 220,000
15. GOLFE-JUAN MB92 is taking operations. spans 9,000 yachts up
15. GOLFE-JUAN
• 1 travel
• 2 sheltered
• Hardstanding up
• On-site
NAUTECH
Irrespective of their size and La Ciotat Shipyards accommodates over 150 annually
CANTIERI DI PISA
Expanded to include a 24,000 sqm refit space for yachts up to 56 metres.
ESAOM CESA SPA, CANTIERE NAVALE
Introduced a new 880-tonne Travel lift in 2023.
6. NAUTECH
• 300t travelift
• 600t gantry crane
• 2,000t synchrolift
• 4,300t synchrolift
• The use of fully equipped quays (total in LCS 2,000 linear metres)
7. CANTIERI DI PISA
• Maximum travel lift capacity: 300t
• Onshore work area: 18,000 sqm
REFIT INVESTMENTS REPORT
9. KRM
Building Turkey’s biggest travel lift.
11. MENGI YAY
8. ESAOM CESA SPA, CANTIERE NAVAL
• Maximum yacht length in water: 65m
• Maximum yacht length out of water: 65m
• Onshore work area: 80,000 sqm
• Sheds: 9,000sqm
10. DYNAMIQ
Started offering refit services in 2024, catering to yachts up to 65 metres.
12. THE YACHT FACTORY
Launched a new refit brand, Reviva Refit, in 2024.
13. A1, RHODES
Caters for superyachts up to 100m.
LUSBEN million inveastment increase its total area 220,000 sqm.
GOLFE-JUAN SHIPYARD
taking over operations. The new facility 9,000 sqm and services up to 45 metres.
GOLFE-JUAN SHIPYARD
travel lift capable of lifting 270t
sheltered docks
Located in Yalova, the yard handles both refits and new builds.
13. A1, RHODES
• Quay area: >400m
• Land area: 75,000sqm
• Sea area: 40,000sqm
• Travel lift: 600 tonnes
• Slipway: 45m x 11m
14.
LUSBEN
• Dry dock capacity: 18,000t
• Syncrolift capacity: 2,500t
9. KRM
• Maximum travel lift capacity: 900t
• Maximum yacht length in water: 120m
• Maximum yacht length out of water: 70
• Maximum beam: 14m
10.DYNAMIQ
• 2,000t syncrolift
• Max LOA: 65m
11. MENGI YAY
• Floating dock capacity: 1,500t
• Syncrolift capacity: 220t
• Maximum yacht length in water: 85m
• Maximum yacht length out water: 85m
• Maximum beam: 17m
• Onshore work area: 20,000 sqm
12. THE YACHT FACTORY
• Land area: 120,000sqm
• Sea area: 80,000sqm
• Covered hangar: 10,725sqm
• Travel lift : 100t
• Maximum travel lift capacity: 300t
• Maximum yacht length in water: 100m
• Maximum yacht length out of water: 100m
• Maximum beam depends on yacht length
• Onshore work area: 125,000 sqm
Hardstanding space to accommodate to 10 yachts (43m LOA)
On-site workshops
16. SAN JUAN, PUERTO RICO
• Dry dock capacity: 2,000t floating dock
• Maximum yacht length: No limit In water/200m out of water
• Maximum yacht beam: 30m
• Onshore work area: Significant hard standing areas with large workshops in both places.
16. SAN JUAN, PUERTO RICO
Long-term lease signed to create San Juan Yacht & Ship.
17. MARINE GROUP BOAT WORKS
Multi-million-dollar modernisation includes a new mobile boat lift, the largest of its kind on the West Coast.
19. PORT 32
150-tonne travel lift for yachts up to 36.6 me tres and in-water refits for yachts up to 46 metres.
17. MARINE GROUP BOAT WORKS
• Maximum travel lift capacity: 820t
• Maximum yacht length in water: 70m
• Maximum yacht length out water: 70m
• Maximum beam: 16.5m
• Onshore work area: 40,202sqm
• 25 slips accommodating vessels up to 20m long
• 5 docks accommodating vessels up to 80m long with drafts up to 4m
18. MARTINIQUE SHIPYARD
• Dry dock: 180m
• Alongside berthing: 350m
• Shipyard area: 20,000sqm
• Mobile crane: 20t and 40t
• Mechanical workshops: 750sqm
• Ship repair workshop: 1,000sqm
18. MARTINIQUE SHIPYARD
Opened in January 2024, entering the yacht market with the Alfa Nero refit.
19. PORT 32
• Maximum travel lift capacity: 150t
• Maximum yacht length in water (m): 46m
• Maximum yacht length out of water: 38m
• Maximum beam: 7.9m
• Onshore work area: 20,234sqm
22. MB92, UMM Designed to support and maintenance clients visiting
22. MB92, UMM AL HASSANI
• 10,000sqm total service area including hardstanding
• Hardstanding space with capacity for 25 yachts 45m LOA
• 300t travelift
• A paint shed with climate and humidity-control
• A crane for vessels between 5 and 20m in length
• Modern office facilities and convenient parking
• Well-equipped warehouses and workshops
NEW REFIT YARDS AND AREAS OF SIGNIFICANT GROWTH – AMERICAS, FAR
EAST AND AUSTRALASIA
20. GULF CRAFT
Max travel lift capacity: 600t
Max yacht length out of water: 80m
Onshore work area 108,000 sq ft
AL HASSANI
support the repair maintenance needs of visiting Sindalah
20. GULF CRAFT
REFIT INVESTMENTS REPORT
hardstanding space yachts of up to technology
23. PHUKET SUPERYACHT SHIPYARD
• Maximum travel lift capacity: 820t
• Maximum yacht length in water: 62m
• Maximum yacht length out of water: 62m
• Maximum beam: 13.5m
• Onshore work area: 15,000sqm
Set to open a new yacht service centre in the UAE, featuring four berths for yachts up to 60m.
21. MILAHA SHIPYARD
22,000-square-metre shipyard at Marsa Port, located in the Umm Alhoul Free Zone adjacent to Hamad Port.
23. PHUKET SUPERYACHT SHIPYARD
New refit facility, focusing on yachts up to 60 metres
24. GOLD COAST CITY
MARINA
• Maximum travel lift capacity: 300t
• Maximum yacht length in water: 85m
• Maximum yacht length out of water: 55m
• Maximum beam: 10m
25. OCEANIA MARINE
• Maximum travel lift capacity: 560t
• Maximum yacht length in water: 60m
• Maximum yacht length out of water: 60m
• Maximum beam: 13.5m
24. GOLD COAST CITY MARINA
Recently upgraded superyacht lifting capacity with a 300-tonne shiplift.
25. OCEANIA MARINE
The Port Whangarei shipyard added a 560-tonne travel lift in 2022.
26. ORAMS MARINE
Added two 60-metre painting sheds in 2023, making it one of the largest refit facilities in New Zealand.
26. ORAMS MARINE
• Dry dock capacity: 600t
• Slipway: 600t
• Maximum lifting capacity: 820t
• Maximum yacht length in water: 92m
• Maximum yacht length out of water: 81m
• Maximum beam: 13m
• Onshore work area: 20,000sqm
• Marine work sheds: 60m
We’re starting to see more and more shipyards establishing themselves. Some are extensions and satellite yards from the industry’s key players, and others are upstart innovators in their own right.
But there’s no reason to be fearful – at least not yet. Yachting is abundant with entrepreneurial industrialists who know an opportunity when they see one. And with the ever-growing fleet and cruising focus shifting from yachting’s homeland in the Western Mediterranean, we’re starting to see more and more shipyards establishing themselves. Some are extensions and satellite yards from the industry’s key players, and others are upstart innovators in their own right. All, however, are keeping the industry afloat in their very capable hands.
KRM Yacht: Take KRM Yacht, for example. Founded in 2010, the yard quickly became a refit leader in Istanbul’s Tuzla district. Initially focused on motoryachts over 30 metres, KRM has completed more than 200 projects and steadily expanded its capabilities, launching Turkey’s largest 900-tonne travel lift to service yachts up to 70 metres, with 120 metres in-water maintenance capacity.
Times have changed over recent years, however. Just five years ago, Turkey was primarily seen as a budgetfriendly refit destination, offering nearly the same quality as its European competitors at a lower cost. But recent inflation has brought Turkey’s pricing closer to matching that of the more established European yards. Despite this, KRM continues to grow and attract clients through investments such as a new 2,000 sqm interior workshop and
leveraging its tax-free location to deliver cost-effective services.
Its location has come with some challenges though, with clients often citing regional political instability as a core concern, which KRM balances with its ‘View Your Yacht’ feature for roundthe-clock monitoring.
Mengi Yay: Finding a dedicated, budget-friendly space tailored for yacht refits has become a pressing challenge for another Turkish refit yard, Mengi Yay. Nevertheless, the custom yacht builder is actively addressing this by exploring further expansion options with a vision over the next three years to establish Mengi Yay as a key refit hub for the Eastern Mediterranean and nearby waters. With an outfitting hangar that can accommodate yachts up to 95 metres, the builder can handle any gross tonnage provided the displacement does not exceed 1,450 tons.
Port Denia: On the other side of the Mediterranean, Port Denia has carved out a niche focusing on servicing sailing yachts. However, its facilities are fully equipped to handle all types of vessels. The shipyard can accommodate yachts up to 65 metres on the land and up to 135 metres in the water, with a lifting capacity for boats up to 1,200 tonnes. For a yard in Spain, one of the main challenges faced by Port Denia is visibility compared to more renowned hubs such as Palma de Mallorca. To address this, it highlights its specific benefits, such as its location
near Formentera and Ibiza, more than 300 days of sunshine per year and a well-protected harbour ideal for yacht servicing and maintenance.
The shipyard is also actively investing in its future, going toe-to-toe with its more established regional peers. In September 2023, the shipyard underwent a major expansion, increasing from 27,919 sqm to 50,030 sqm. This €5.5 million investment included a complete refurbishment of the facilities and the addition of a new 620-tonne ASCOM travel lift. Generalitat Valenciana, the local government, has also launched two projects to improve harbour access and navigability, including dredging to remove 60,000 cubic metres of sediment and upgrading pedestrian and road infrastructure around Moll de la Pansa, where Port Denia is based.
Lusben Livorno: On the other hand, some more established players have launched satellite facilities as they’ve grown. In Italy, Lusben Livorno has made a name for itself, equipped to handle motor and sailing yachts. With an 18,000ton dry dock, a 2,500-ton syncrolift and a 300-ton travel lift, the shipyard can service yachts up to 180 metres, while its expansive 125,000 sqm onshore work area allows for further operations.
Recent investments include a newly announced keel pit for sailing yachts. However, as many in the region thought, the shipyard noted that the increasing demand for skilled labour, fuelled by the
REFIT INVESTMENTS REPORT
surge in new builds, has pressured the local workforce. In response, Lusben Livorno works alongside the Azimut| Benetti Group Corporate Academy, a higher education training facility aimed at developing technical expertise and ensuring craftsmanship standards remain high.
Atlantic Refit Center: Maintaining a highly skilled workforce is also a challenge for another European yard, but this time on the Atlantic coast. Atlantic Refit Center (ARC) in La Rochelle has built a strong reputation for servicing both motor and sailing yachts ranging from 50 to 140 metres. But ARC also says it benefits from the concentration of marine trades along France’s west coast, which supports commercial and naval shipbuilding, giving the yard the right talent for its projects.
Sustainability has become a critical challenge, too, given the yard’s location. As a zero-carbon European-labelled territory, ARC adheres to strict environmental regulations, recycling 90 per cent of its waste and thoroughly treating wastewater before discharge, with continuous monitoring and a commitment to an air-filtration system for paint operations.
Despite these hurdles, with a maxi-
mum beam of 21 metres and no restrictions on gross tonnage, ARC can handle some of the industry’s most sizeable projects and has made sub-stantial investments over the past five years, totalling around €4 million. These upgrades include safety equipment, a wastewater treatment plant, new shore power connection berths and specialised concrete blocks for yacht blocking in dry docks. The shipyard plans to invest a further €5 million over the next five years, adding a 300-ton lift and trailer, a new 6-ton crane and eventually building a permanent cover over the large dry dock.
Port 32 Fort Lauderdale: On the other side of the Atlantic, Port 32 Fort Lauderdale is already making an impact, officially opening in June 2023. Conveniently located adjacent to Marina Mile on the New River and just minutes from downtown, this yard is designed to accommodate a range of vessels, from sport fishing boats to cruisers and yachts up to 46 metres. Port 32 supports a maximum in-water yacht length of 55 metres with an 11-metre beam, while out-of-water projects can handle vessels up to 38 metres with an 8-metre beam. The facility recently opened in-water service slips, and an upland boatyard for vessels up to 36.6 metres is currently under construction, set to feature a 150-tonne travel lift. Although no major changes are planned for this new facility, the company says it is investing in the future with the ongoing redevelopment of Port 32 Palm Beach Gardens.
Marine Group Boat Works: Moving to the US West Coast, Marine Group Boat Works (MGBW) is stepping up with a multi-million-dollar modernisation project at its 15-acre San Diego Bay in Chula Vista facility. At the heart of this ambitious upgrade is an 820-tonne mobile telescopic boat hoist, the first of its kind on the West Coast and the largest in the United States, currently being built. The yard can accommodate vessels up to 70 metres, making it one of the most capable facilities in America. MGBW’s Foreign Trade Zone status also gives it a rare advantage, allowing foreign-flagged yachts to undergo refits
Port 32 opened in 2023 and is designed to accommodate a range of vessels, from sport fishing boats to cruisers and yachts up to 46 metres.
Atlantic Refit Center (ARC) in La Rochelle services both motor and sailing yachts ranging from 50 to 140 metres.
As trends shift, the emergence of refit facilities in less traditional locations signals an industry evolving beyond its established boundaries.
and repairs without immediate import duties.
IMM Yachting: As the global fleet expands and cruising trends evolve, the refit sector has adapted to meet these changes, with facilities such as IMM Yachting in Puerto Rico and Guadeloupe exemplifying this evolution. IMM has been a staple in the Caribbean for 15 years, making significant investments to bring in skilled technicians to train local staff. Its facilities are equipped to handle all types of yachts, with some specialisation in sailing boats and multihulls.
When it comes to vessel capacity, Guadeloupe can accommodate up to 700 tons, while Puerto Rico has no tonnage limit. The presence of an expert rigger, deep-water draft access and large cranes bolsters Guadeloupe’s specialisation in sailing yachts, while the width of the graving dock makes it well-suited for multihull refits. With further investment expected in logistics, crew services and workshops, and a strong focus on sustainability, along with plans for green energy production at the Puerto Rico
site, the facility is poised to host the world’s largest vessels in the near future.
Similarly, the Middle East is fast emerging as a favoured cruising ground, necessitating a greater presence of refit services. Recent investments have been substantial, with a vast amount of resources allocated to site development and construction, with excitement surrounding Sindalah and the region’s potential as a new superyacht hub. Household names such as MB92 and Gulf Craft have already begun to make their mark here.
MB92: MB92 has the Red Sea facility, tailored to the needs of the region’s growing yachting community. With a travel lift capacity of 300 tonnes, the yard can accommodate yachts up to 45 metres out of the water and up to 150 metres for in-water servicing. The maximum yacht beam for out-of-water projects is 12.5 metres, while the 10,000 sqm onshore work area includes hardstanding space for up to 25 yachts. The site also features a dedicated paint shed, various workshops, offices, warehouses and a crane capable of handling smaller yachts between 5 metres and 20 metres.
The facility primarily services motor yachts, in line with the preferences of local yacht owners, but is also fully equipped to handle sailing yachts with drafts between 3.5 and 4 metres. One of the regional-specific challenges faced by the Red Sea facility is the need for advanced logistical planning. Unlike the established infrastructure in Europe, the remote location requires precise timing and efficiency to manage operations smoothly. The weather in the region presents exceptional challenges for refit operations, including extreme heat, humidity and high salinity. But with more than 40 years of experience in yacht manufacturing in this climate, Gulf Craft says it has developed effective systems to maintain year-round productivity while prioritising a clean, yacht-friendly shipyard environment.
Gulf Craft Services: Gulf Craft Services has always provided specialised support across its new-build fleet. However, in the past two years, the yard has expanded its scope, offering refit and
MB92’s Red Sea facility includes a travel lift capacity of 300 tonnes and 10,000sqm onshore work area which has hardstanding space for up to 25 yachts.
REFIT INVESTMENTS REPORT
repair services for all types and brands of yachts throughout the region. Equipped with a 108,000 sqft onshore work area and a 600-ton and 75-ton travel lift, the yard can haul boats up to 60 metres out of the water, with in-water servicing available for vessels up to 80 metres. The shipyard is set to open its service centre by mid-2025, focusing on expanding its support services in the Maldives.
Phuket Superyacht Shipyard: We’re also seeing further growth in the East, and Phuket Superyacht Shipyard is at the forefront of servicing the expanding fleet in Southeast Asia. The yard can accommodate vessels up to 62 metres long, supported by an 820-tonne travel lift. However, one of the primary challenges faced by the yard is establishing itself as a trusted refit hub. To overcome this, the shipyard is committed to delivering superior services that instil confidence in yacht owners and captains.
Investing in better infrastructure will play a key role in doing so and, over the next three years, plans include doubling the size of the hardstand area to increase storage and maintenance capacity. A dedicated paint shed is also in the pipeline, offering a controlled
environment to achieve better results. The refit market in Oceania is also experiencing unprecedented growth, driven by increasing investment and expansion at critical facilities such as Orams Marine in New Zealand and Gold Coast City Marina & Shipyard (GCCM) in Australia.
Orams Marine: The yard remains a standout in the South Pacific, welcoming all types of yachts and offering facilities that can handle vessels up to 100 metres, supported by an 820-tonne travel lift.
Recent investments include two 60-metre superyacht work sheds that create controlled environments for highquality refit work. Orams has developed seven new 92-metre, fully serviced marina work berths to further enhance its offerings. The shipyard also features a treatment facility, filtering wash water and stormwater run-off to prevent contaminants from entering the local waterways.
GCCM: GCCM is also making waves with its ambitious expansion. This development will introduce two powerful straddle carrier lifts: an 820-tonne lift and a colossal 1,800-tonne lift capable of hauling yachts up to 90 metres. Once
Expansion at GCCM will increase the yard’s size by 150 per cent, with new sheds designed to accommodate vessels up to 100 metres.
completed, the expansion will increase GCCM’s shipyard size by 150 per cent, with new sheds designed to accommodate vessels up to 100 metres. GCCM recently expanded its facility and is already a hive of activity, with 700 tradesmen on site daily. It recently demonstrated its new and improved capabilities, having handled the lift of Australia’s newest Super Maxi racing yacht, Wild Thing 100.
Future opportunities in less traditional locations
These yards are the ones to watch, stepping up to ensure that the global fleet continues to thrive, and despite the mounting complexities and challenges, the refit sector remains an essential and ever-evolving pillar of the industry, meeting demand with innovation. As the fleet expands, the pressure on refit yards has never been greater. This growth strains the wider industry, demanding more talent, advanced services and facilities capable of meeting increasingly complex client expectations. But amid these pressures, stand-out refit yards
from every corner of the globe are rising to the occasion.
There are challenges within that, too, whether that be asserting best operational practices in a new climate or navigating the intricacies that come with supply chains crossing over borders rife with geopolitical turbulence. But where there’s demand, there’s opportunity, and where there’s opportunity, you can be sure to find someone from the superyacht industry attempting to innovate. The core hubs of the Mediterranean and North America remain powerhouses, thriving on continuous development and investment. However, as trends shift, the emergence of refit facilities in less traditional locations signals an industry evolving beyond its established boundaries.
These rising hubs don’t just mark where the industry is headed. They pose a question about the future of our industry: how far will innovation take us and which unexpected corners of the world will become the next epicentres of the sector? CF
Orams Marine – recent investment includes two 60-metre superyacht work sheds and seven new 92-metre, fully serviced marina work berths.
10 YEARS OF EXPANSION
The following Google Earth images illustrate the investments made by a number of established and emerging yards over the
ADRIATIC 42
Within this decade we see a dramatic shift in Adriatic 42’s refitting focus, shifting away from commercial shipping vessels towards the superyacht industry by updating its infrastructure to meet the needs of this market.
In 2015, Amico finalised construction of its new 100-metre graving doc. It has recently announced it will be installing 1,782 solar panels across the yard, covering
ASTILLEROS DE MALLORCA / STP SHIPYARD
One of the Med’s major refit yards, over the past decade Astilleros de Mallorca has seen an advancement in structured shore facilities, such as an increase in shed space and expanding its dry-docking facilities.
GOLD COAST CITY MARINA
Having been formally established only at the beginning of the decade, Gold Coast City Marina has seen significant expansion, increasing its covered work areas and painting sheds and expanding its berthing options.
LUSBEN
From 2015 onwards, Lusben's Livorno shipyard has seen great investment in its shed capacity, extending its current infrastructure to accommodate the increasing number of large vessels within the market.
MB92 BARCELONA
Between 2015 and 2017 saw an estimated only €40 million investment with the construction and installation of a new shiplift with a lifting capacity of 4,000 tons, along with an increase in dry-docking capacity – see 2024 image.
MB92 & MONACO MARINE - LA CIOTAT
Similarly to MB92 Barcelona, within the past decade MB92 La Ciotat has seen significant investment across its yard, particularly increasing its dry-dock capacity, shed space and lifting capacity.
NCA REFIT, CARRARA
The ten-year time span sees NCA Refit dedicate more space to the superyacht fleet, which can be seen in the left side of the 2024 image. There is a visually significant change in its dry-docking capacity and covered work areas.
RIVERGATE
In 2022, a $200 million AUD expansion was approved, which includes a $35m state-of-the-art ship lift capable of lifting vessels of up to 3,000 tonnes and 90 metres, and new hardstand space, sheds and berthing.
RYBOVICH
Since 2015, Rybovich has expanded its berthing capacity by creating an additional docking system in conjunction with its existing system. Acquired in 2023 by Safe Harbor Marinas, the yard was, however, denied the opportunity to further expand by Riviera Beach Council.
SAVANNAH YACHT CENTER
Over the past decade, the Savannah Yacht Center completed upgrading its 140 x 21-metre dry dock with a 7.3-metre draft, as well as implementing a 3,240-ton shiplift platform and developing its deep-water yard ramps to full service.
STP SHIPYARD
In 2024, STP announced plans for an €8 million investment in its facilities, which will see the total area of the shipyard increase from 130,000sqm to 162,000sqm, encompassing 102,000sqm of land and 60,000sqm of water.
THE BOAT WORKS
Ten years ago, The Boat Works was in the early stages of refitting, with infrastructure limited and under construction. Fast forward, and the yard is fully equipped with a range of facilities to refit and maintain yachts up to 55 metres
THE YACHT FACTORY
In 2015, The Yacht Factory was in its early days of development; ten years later, it's on track to become one of the leading shipyards across the globe, equipped to cater for and service a range of superyachts.
Guest Column
by Kevin Laverty
Who should you select to manage a refit?
Kevin Laverty, director of projects at Hill Robinson, recommends taking the professional approach when selecting a refit project manager by choosing someone with the required knowledge and demonstrated track record.
First of all, I should say that I am framing my response to the headline question from the viewpoint of who should a yacht owner select to manage a refit on their behalf, although I expect shipyard and refit facilities have very similar requirements. And this is very much a personal view based on my experience over the past 20 years of plying my trade as an owner’s representative/ project manager in the superyacht sector and my 40-plus years in the field of professional project management.
Back in the early noughties, I came to the superyacht world from the offshore oil and gas construction industry, a heavily regulated and professional sector in which project management is recognised as a professional management discipline in its own right.
When I arrived on my first new-build yacht construction project, I was immediately surprised by two things: the paucity of the contract and specification, and the assumption that as the owner’s representative/project manager you were also expected to be a subject-matter expert in a broad
range of large-yacht construction topics – or for me, the beginning of a very steep learning curve!
Before I get into the question of ‘who’, it’s probably worth considering the ‘what’, as in ‘what is a superyacht refit?’. Refit is a wide term that is used to describe everything from a brief stopover at a shipyard or refit facility for a minimal amount of work, to a Classification society special survey often in combination with other ownerrequested works, through to a major project to add new, replace existing or even extend or reconfigure the layout of the subject yacht.
In truth, a refit project is best described as a large, complex multi-discipline capital project. Throw into that mix the fact that the project will often employ multiple parties who are geographically dispersed and you have a significant management challenge. Finally, consider that a refit will often be timelimited. How many times do we see refit contracts that include a fixed redelivery date agreed upon before the scope of work is clearly defined, and a boss trip
or charter planned to commence within days of the planned refit completion?
On the topic of scope definition, one key variable is the amount of ‘open and discover’, a phrase used to describe the discovery of defects or anomalies during the performance of the planned work that must be rectified before the planned work can commence or continue. This can often be in form of corrosion or the actual situation on board not reflecting the as-built drawings or, in some cases, failure to adequately plan for the contracted works. Remember that once opened and discovered, you often have no option but to rectify a problem if you are to maintain the vessel in Class, and that rectification costs both time and money.
In short, and again in my own experience, a refit project can often be far more challenging than a new-build project for both the owner and the shipyard.
So against this background, who would I want to manage a refit project on my behalf? I have three main
I will be looking for an individual who can demonstrate knowledge of the major elements of a superyacht – from naval architecture, marine engineering, electrical engineering, audio-visual, IT, interior and exterior outfitting, paint and teak, through to how to mount a piece of priceless artwork.
criteria: 1) someone who I can rely upon to act in my best interests at all times; 2) someone who has the required knowledge to manage the project given its envisaged scale and complexity; and 3) someone with a demonstrated track record of having successfully completed similar projects. To ensure that the appointed person or organisation fulfils these criteria I would be looking for a professional project manager with emphasis on the word ‘professional’.
In the world of project management, professionalism is governed through an internationally recognised twolevel structure under the leadership of the International Project Management Association or IPMA, and regional daughter associations such as the Project Management Institute (PMI) and the Association for Project Management (APM).
Daughter associations publish their own ‘body of knowledge’ publications, offer structured career paths coupled with training and certification, and hold their members to account against a commitment to continued professional development and a code of conduct that requires their members to act
professionally, honestly, ethically and with integrity at all times. Failure to do so will result in expulsion from the association.
Membership of a professional association is a demonstration of commitment to the profession by the individual and is earned based on peer validation of both knowledge and experience. For me, this says a lot about the individual and goes a long way to answering the question of whether I can trust this person to act in my best interests at all times, and whether they have the skills and experience necessary to manage my project.
Having the right to use the postnominals ‘MAPM’ (Member of the Association for Project Management) is a source of great personal pride and is something I seek to protect by upholding the APM code of professional conduct.
Of course, alongside this professionalism I will also be looking for an individual who can demonstrate knowledge of the major elements of a superyacht – from naval architecture, marine engineering, electrical engineering, audio-visual, IT, interior and exterior outfitting, paint and teak,
through to how to mount a piece of priceless artwork.
How many of these skills are required will really come down to the structure of the refit contract in terms of how much responsibility has been transferred to the shipyard or refit facility, and the structure of the shipyard or refit facility. For example, most new-build shipyards will have in-house subject-matter experts who can lead the design realisation, whereas many refit facilities rely heavily on the local supplier base and may be light in their own in-house engineering and project-management skills.
It’s therefore necessary to fully understand the context and the environment of a refit project and then to ensure that you have the necessary skills in your team to supplement or even substitute for the skills of the shipyard.
In closing, the famous phrase ‘there is no substitute for experience’ applies to refit project management just as it applies to various other areas of life. Success can never be assured, but with professional and experienced management, the chances of success are greatly improved. KL
Guest Column by Kevin Laverty
April 30th – May 3rd 2025
The Big Mediterranean Debate
THE BALEARIC SUPERYACHT FORUM
29 & 30 APRIL – PALMA, MALLORCA – 2025
The second edition of this strategic think tank returns to Mallorca next year with a clear focus on The Future of Superyachts in the Mediterranean. Covering Gibraltar to the Suez Canal, the Med represents only 0.7 per cent of the world’s oceans yet is home to the largest percentage of superyachts. It is the most active and popular cruising ground, contains one of the most dynamic networks of marinas and provides the most shipyard capacity for refit and service in the world.
These facts have inspired this year’s mission and programme topics, where we will discuss, debate and explore what the future looks like, as more and more yachts are built and the service, support and infrastructure need to be upgraded and invested in for the long term.
We’ve seen some incredibly devastating and destructive weather systems in the Mediterranean over the past couple of years that have disrupted cruising activities and impacted yards and local
eco systems. This, combined with the demand for cleaner and more regulated cruising grounds, is likely to affect how we use the Med in the future.
Add into the mix, the evolution and development of the Eastern Med and the Red Sea and we have to consider the impact this may have on our current conventional service centres and home ports.
So as we analyse, review and explore what’s on the horizon, the Balearic Superyacht Forum, hosted by the Balearic Marine Cluster, will bring together regional investors, stakeholders, developers and partners for two days on serious discussion on future-proofing the Mediterranean. Our focus will bring to the table the expansion demands of the refit sector and the upgrades and optimisation of the marina infrastructure, as well as taking a deep dive into current and potential cruising behaviour and migration patterns that may emerge with these geo-
shifts and weather incidents. In addition, we will explore one of the most important future sectors of our superyacht market: the future evolution of the sailing yacht market, a core business that has a close relationship with Mallorca.
As with all excellent events, there will no shortage of interactive networking, but with a twist and some superb Mallorquin hospitality in some hot spots on the Island.
This emerging Mediterranean Event will bring together captains, managers, owners’ reps and infrastructure partners, alongside a wide network of regional stakeholders from Spain, France, Italy, Croatia, Malta, Greece and Turkey, all with a clear mission to future-proof and optimise the superyacht market in the Mediterranean.
To secure your place visit: www.thebalearicsuperyachtforum.com
THE EVOLUTION OF YETI
The latest version of the Yacht Environmental Transparency Index (YETI) is launching at METSTRADE and The Superyacht Forum in Amsterdam. Here, we speak with Robert van Tol, executive director of Water Revolution Foundation, about what to expect in the future and with Bram Jongepier, senior specialist at Studio De Voogt, who initiated YETI, about how he hopes the industry will further use the tool to drive improvements.
BY MEGAN HICKLING
YETI is used to assess a yacht’s impact and identify methods to improve it, providing the potential to assist in directing refit projects in a similar way to new builds. This updated version – in the form of a dedicated website and accompanying software for both a new YETI Lite version and the more familiar YETI Pro – builds upon all previous developments since its creation in 2019.
“Before we started YETI, there was a lot of talk about yachts being ‘green’. You could say anything you wanted because there was no test,” says Bram Jongepier, senior specialist at Studio De Voogt. These false and misleading claims triggered Jongepier to start thinking about how to create such a test.
In 2018, a project was conducted at
De Voogt, in collaboration with Delft University, into alternative energy carriers, focusing on availability and infrastructure, impact on design and making the sustainable impact measurable. It’s this latter part, says Jongepier, that triggered YETI after a brainstorm session between the students and the inhouse experts at De Voogt.
It was decided YETI would not be a Feadship exercise but should be shared across the industry. Feadship then invited 20 different companies within the industry, including major yards, naval architects and knowledge institutes, to create a Joint Industry Project (JIP) which was adopted by the then recently formed Water Revolution Foundation. The rest is history.
Jongepier emphasises that from the
very beginning there was an awareness that the test needed to be more than just assessing the impact of yacht operations on global warming. “Yes, it’s important, but it’s not the only thing,” he says. He recognised the need to reward other choices made on the vessel that led to other improvements, such as selective catalytic reduction (SCR). Hence YETI uses Ecopoints, which are utilised in different life-cycle assessment applications. The YETI calculator is also able to calculate the CO2 equivalent impact for those who want to focus on only that.
The Ecopoint represents the total environmental load of a product or solution created through its life cycle, aggregating 18 different impact factors across three categories: human health, ecosystem quality and resources. The
The
factors include not only global warming, but also those with different impacts on the environment such as human toxicity, marine ecotoxicity, photochemical oxidation potential, NOx and SOX emissions, and water scarcity footprint. Effectively, this Ecopoint is a measure of sustainability performance, with a lower score indicating a lower impact. The YETI score is the number of Ecopoints per year of operation.
The next stage of evolution
Since YETI’s creation, there’s been a lot of development to make the tool calculate accurately the footprint of different aspects of yacht operation, with particular complexity surrounding the hotel load. Jongepier says, “Hotel power has been the Achilles heel of YETI for three years, I think because it’s so subjective to calculate. Basically, it’s impossible to calculate.” However, multiple iterations have been able to get more accurate estimations.
The YETI website involves software developed with Maritime Research Institute Netherlands (MARIN). Within this website will be YETI Lite, a new less intensive and free version of the assessment, and YETI Pro, the full YETI assessment.
YETI Lite is a more accessible version of the YETI tool, completely free using only the submitted length overall, gross tonnage and average hotel power. It compares this to a trendline similar to the YETI baseline, generated using gathered fleet information, as well as 2,500 hypothetical but realistic vessels, to produce an estimate of the YETI score for that vessel.
Robert van Tol, executive director of Water Revolution Foundation, explains that when using this for a conventional yacht, the resulting score is 90 per cent accurate compared to the score gained from YETI Pro. “What we want to accomplish with the software is that it is available to everyone in the sector,” says Van Tol. This explains the decision to make YETI Lite completely free, hoping
that the accessibility will allow for more use as a guide to estimate how impactful a yacht will be.
YETI Pro, the full YETI assessment, requires the submission of many more details of the yacht, from its design to its operation. The assessment results in a score aggregated from the different impact categories. The higher this score, the more impactful the yacht, but alongside this is a full report detailing the source of the impact from the yacht.
The website will also introduce a new feature – a dashboard where you can visually see the distribution of upstream and downstream factors that Damage to
Particulate matter
Trop. ozone formation (hum)
Inonising radiation
Stratos. ozone depletion
Human toxicity (cancer)
Human toxicity (non-cancer)
Global warming
Water use
Freshwater ecotoxicity
Freshwater eutrophication
Trop. ozone formation (eco)
Terrestrial ecotoxicity
Terrestrial acidification
Land use/transformation
Marine ecotoxicity
Marine eutrophication
Mineral resources
Fossil resources
Increase in respiratory disease
Increase in various types of cancer
Increase in other diseases/causes
Increase in malnutrition
Damage to freshwater species
Damage to terrestrial species
Damage to marine species
Increased extraction costs
Oil/gas/coal energy cost
Damage to eco systems
The 18 different impact categories accounted for in Ecopoints.
“It’s the fuel, not the machine. And I think that’s a mental change that we need to make.” This is reflected in the YETI report suggestions, which all come back to reducing the quantity of fossil fuel burnt.
feed into the overall YETI score such as fuel production, shore power and the various emissions. As Van Tol says, YETI Pro “is more for the technical people” because it gives a more in-depth analysis of the causes of these different impacts throughout the yacht’s life cycle.
This latest software available on the website will be a big step from the previous iteration, a very complex Excel spreadsheet that, Jongepier explains, “is really reaching or exceeding the limits of what you should do with Excel”. As YETI Pro requires more input of different details of the yacht, where information isn’t available, estimators will be used to fill in the gap. This is where the transparency aspect of the index comes from.
YETI and the refit process
The YETI Pro report will include suggestions for some typical changes to be made to improve the yacht’s impact. This is where it can be useful as a prelude to a refit project.
At the start of a refit, changes can be considered in three categories: reducing energy demand, power generation with higher efficiency and/or lower impact, and on-board sustainable energy generation. Reducing energy demand can be through reduced propulsion power (new propellers, bulbous bow, foils, podded
propulsion) or reduced hotel power (highefficiency equipment, smart controls, double glazing). High efficiency/low impact power generation can be achieved with modern engines, power take-off installation, batteries, heat recovery and exhaust treatment. On-board sustainable energy generation can be found in the application of solar cells or regeneration on sailing yachts.
As identified through Water Revolution Foundation’s work, the hotel load is the most significant, making up more than half of the annual energy demand, so making these adjustments can assist with that. While some of these technologies will be able to be implemented only at certain refit stages, the savings they can offer where possible would be significant. For example, Water Revolution Foundation estimates that implementing heat recovery and other improvements to the HVAC system can provide more than 40 per cent reduction in energy demand.
Van Tol says, “Solutions that really reduce the energy consumption are more effective on the score than sort of after-treatment systems.” One aftertreatment suggested in the YETI report is a diesel particulate filter, which will clean the exhaust fumes by removing more particulate matter, one of the impact categories that contribute to the YETI score, and a Selective Catalytic Reduction system (SCR), which reduces harmful NOx emissions in exhaust gases.
The real value of a YETI report, as Jongepier explains, comes from the ability to compare an initial baseline impact to different scenarios with changes made. He says the secondary assessment can answer questions such as: What is the impact if I install a heatrecovery system? What is the impact if I go for batteries? What is the impact of (voluntary) application of an SCR on the generators?
Van Tol says this is similar to a reallife scenario where YETI was used by a naval architecture studio which, after an initial assessment, did it again for two other potential scenarios. This enabled the naval architecture studio to present
YETI workshop.
the three options: either status quo or the different sets of changes, each with their calculated effect on the vessel’s impact and the associated costs.
YETI and alternative fuels
While changes can be made at refit, Jongepier admits that some of the biggest ones may be too extensive to complete. He gives the example of a methanol conversion project Feadship was working on, where the changes to the yacht were so extensive they needed to “rip out the interior of half the boat to get those tanks in”, meaning the yacht would have been out of action for three quarters of a year. This was too much for the owner to agree to go ahead.
This can be a common reaction and, as such, Jongepier emphasises that it’s better to have made these considerations at the new-build phase, especially suggesting that more yachts should be built with fuel-flexibility capabilities. This is particularly important because it’s expected that methanol fuel cells,
which reduce fuel consumption by up to 30 per cent, will be available for refit projects within the next five to ten years. With a minimum lifespan of a yacht of 30 years, it’s important to be ready for this.
While some fossil-fuel alternatives need these extensive design changes away from the conventional, there are options that require no changes at the refit stage and can provide significant reduction in emissions. Both Van Tol and Jongepier are proponents of using hydrogenated vegetable oil (HVO) as a drop-in alternative fuel to diesel. Jongepier says, “Yes, it’s more expensive, but you save 60, 70, 80, 90 per cent of CO2 depending on the feedstock. There is no other thing you can do that is so effective.”
Van Tol goes further and explains that it’s not just the awareness of this fuel that needs to improve, but also the mindset about where the impact of yacht operations come from. “It’s the fuel, not the machine. And I think that’s a mental change that we need to make.” This is
reflected in the YETI report suggestions, which all come back to reducing the quantity of fossil fuel burnt.
However, Jongepier recognises that HVO is made from a waste stream, so supply could have its limitations due to general efforts to reduce waste but, as Van Tol hopes, more interest and demand for this will improve the development of its associated infrastructure and supply. Alongside HVO there are also e-diesels that can have comparatively fewer emissions by being created using captured carbon and having less harmful emissions.
Because of the importance of the fuel on the impact, YETI accepts other fuels within its assessment, although Jongepier mentions that it does make comparisons between yachts more difficult in some cases. For example, if a yacht switches to HVO, it appears much better than other yachts as the fleet reference lines are based on fossil fuels. However, it could still be a much less efficient yacht that would otherwise compare
M/Y Istros , 1954 yacht (inset), refitted with 2020 ‘clean’ technology: a silent microturbine in combination with a battery bank, improved HVAC and heat recovery, as well as thermal insulation reducing heating demand.
Not only are there cost savings to be had, there’s also the avoidance of future price increases from an increasingly conscious corporate world.
very poorly to the rest of the fleet. Using HVO is actually an operational decision, independent of how efficient a yacht is.
HVO and alternative diesel can provide other benefits to a yacht alongside the reduction in environmental impact. Jongepier explains, “It smells less and your oil changes don’t have to be done as much.” This improves operations by reducing costs and enhancing the experience on board. Jongepier also testifies that charter guests are asking for green operation, which can best be achieved through HVO.
Carbon pricing is likely to be more expensive due to increasing regulations, meaning the price of fossil fuels will rise and therefore make alternatives more competitively priced. This reflects the other secondary benefits of the improvements the YETI report recommends, which may assist in encouraging more owners and operators to adopt these changes.
Jongepier says, “Owners are just like normal people. Some of them really want to go the whole way, they really want their boat to be exceptionally sustainable. And a lot of them don’t want to seem unsustainable. And some of them just don’t care.” These second and third groups are the majority who need motivating.
Jongepier suggests that the only two ways to truly spur this larger group to make significant changes is “either via the wallet or via the law”. This would be achieved either through a carbon levy and similar financial consequences related to environmentally harmful activities or other regulations that will prevent damaging activities, both of which are likely to increase in the future.
The costs of YETI
A significant benefit from many of the YETI suggestions is that reducing energy demand will reduce fuel and other operating costs, so in a way these changes are what Van Tol calls ‘a cost investment’. He feels these operational costs can often be overlooked at the refit stage due to the focus on the initial price tag, with less regard taken to operational costs because of the uncertainty of the length of ownership. Despite this, Van Tol says, “Really it should be part of the conversation because efficiencies in the end also save cost.”
However, alongside the cost investment, such changes can also be an investment in the superyacht as an asset to prevent it becoming ‘stranded’, particularly as it’s likely to become more difficult to own and operate these assets without making environmental impact improvements. For instance, in the latest YETI webinar, BNP Paribas said it is now more frequently request-ing YETI reports to support their own efforts to improve the impact of their portfolio.
Similarly, Van Tol proposes that other companies, such as those in insurance, will be requesting more evidence of actions being taken to reduce environmental impacts because of the pressures they are facing to improve their own operations.
The consequences of inaction can make it more difficult to operate and may lead to increased costs such as higher insurance premiums, and also can devalue the superyacht. So not only are there cost savings to be had, there’s also the avoidance of future price increases from an increasingly conscious corporate world.
Future developments
The upcoming new YETI software and website are just the start in the latest developments relating to YETI. Currently, work is being done to create an ISO standard where the method by the YETI JIP is proposed. The ISO group brings together different experiences, knowledge and perspectives, involving Classification societies and professionals from the operational side, including owners represented by the Monaco Yacht Club and SEA Index.
This working group recently submitted a committee draft, which means that following the ISO standard schedule, this standard will need to be finalised in approximately a year. Jongepier is optimistic this will be achieved given the latest developments in YETI. He says this standard means “that it can be referenced, for instance, by people in a specification or even by Class or Flag”. This brings more authenticity to the YETI process.
It’s clear there are a number of options to improve the environmental characteristics of a yacht at the refit stage. Despite some resistance to adopting these, Van Tol remains optimistic. “The positive news on the yacht fleet is that it can be better,” he says. Making improvements across the whole fleet, however big or small, can lead to an accumulation of prevented pollution.
Van Tol also argues that offering these improvements “for a refit business is also a business case”. But it’s also a business case for owners and operators in a changing landscape that is only going to increasingly punish inaction in this regard, as well as the operational benefits from upgrading their yacht’s environmental footprint. MH
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WHO’S NEXT TO CARRY THE BOAT BATON?
If the industry is really serious about addressing its talent shortages, it needs to make more effort to open doors for people who are not traditionally drawn to the world of yachting.
effort to open doors for these people. Simple, accessible training programmes could go a long way towards making a yachting career feel like a real option.
BY CONOR FEASEY
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he industry faces an undeniable problem. The talent pool is shallow for crew and those handling the intricate work needed on shore. With low retention rates and ongoing skilled labour shortages, the issue of recruitment is more pressing than ever. However, we seem to be reluctant to adapt our hiring practices, still relying heavily on insular networks and familiar circles. By doing so, we’re overlooking young people with great potential from less traditional backgrounds.
While the need for talent has never been greater, there’s been little serious effort to diversify where we look for recruits. Beyond the usual networks of coastal towns and those already familiar with the sea, an untapped pool of young people from urban, non-coastal areas could bring fresh energy and dedication to the industry. For many of these young people, high-paying vocational careers in yachting could offer a natural alternative to university, especially when the cost of higher education is at an all-time high and student debt is often crushing.
Talk to anyone in the industry and they’ll tell you how tough it has become to find people with the necessary skills –that we are losing the true craftsmen of the trade. Now, this is a problem across most of the Western world. I often hear criticisms directed at my generation for
being soft, spoilt and not wanting to get our hands dirty. As someone who spent a decade of my life on building sites, I can tell you first-hand this isn’t the case.
There is, however, a huge problem in education systems in countries such as the UK that fuels this growing disparity. There’s no exposure to industries like ours, nor are we pushed and encouraged on how to take things apart to see how they work. We’re forced to go to university and that’s it. This leads to the typical education system training up the next generation of desk clerks rather than future engineers, welders and carpenters. Moreover, there’s often a prevailing sentiment among academia that university is the only path young people should take and that to pursue a job in manual labour is to fail – a sentiment that was cast upon many of my peers growing up who have gone on to run successful businesses and become experts in their respective fields.
In places such as South London where I grew up, yachting is a far-off fantasy most people haven’t heard of. And then, for those who do manage to stumble across the industry, the barriers to entry can seem overwhelming, with pricey certifications and the absence of real guidance or mentorship. If the industry is serious about solving its talent shortages, it needs to make more
To address the critical talent gap, we should look at recruitment methods in other industries and the people they attract. The military has long targeted urban youth through strategically placed ads with clear messaging about adventure, stability and career progression. Our industry offers many of the same benefits – global travel, good pay and life-changing experiences. Why can’t similar recruitment methods work just as well for our sector?
There’s also the appeal of the environmental and scientific missions many superyachts and yards are now championing. Through initiatives like Yachts for Science, young people can work alongside marine scientists, participate in wildlife conservation and make a tangible difference. The same notion could be applied to attract new talent into shipyards as new builds and refits become increasingly focused on becoming sustainable and pushing more efficient and conscious systems on board.
If we’re really an industry hell-bent on making a change and at the forefront of technological design, these should become key practices across the board to attract a more eco-conscious generation and ensure they feel like they can morally work in the sector.
There’s been some progress, but much more needs to be done. With the wealth and innovation that drives the industry, the fact that recruitment remains such a perennial issue is shocking. The industry can’t afford to sit back and wait for the right talent to walk through its doors or blame younger generations for their lack of interest.
If it wants to continue, it must take ownership of its talent pipeline. And that might just mean reaching beyond the usual circles, investing in recruitment channels that actively engage new communities and establishing training partnerships that offer actual pathways for a new generation, whose values have shifted from previous generations, in a rapidly changing and unstable world. CF
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