Inside Phil Stevens on life as captain of  the luxury vessel, Slipstream Page 8   SPECIAL REPORT | Wednesday September 23 2009 www.ft.com/yachts-2009 Stirring demand starts to refill

But there is a widely held view that recovery will be slow and the market may never be the same again. Victor Mallet reports

year ago, many brokers and manufacturers still dared Ato hope that the intensifying financial crisis, although obviously severe, would spare the world’s wealthiest people and leave them with enough cash or credit to buy the $100m superyachts they had always wanted. With hindsight, it is clear that the luxury boat industry, fattened by years of rising production volumes and improving profit margins, was far too optimistic. There was a shock- ingly abrupt decline in the market in late 2008 and early 2009, following the collapse of Lehman Brothers, the investment bank. Today, as the first, tentative signs of recovery appear, most industry executives, financiers, and suppliers are no longer asking how well the superyacht business will resist the global economic slowdown. They are wondering whether it can ever be the same again. “The situation in the early months of this year and the later months of last year was very difficult,” says Anton Francesco Albertoni, chairman of Ucina, the Italian nautical industry association. Italy is the biggest pro- ducer of luxury , with a total pleasure yacht industry turnover of about €6bn, and Mr Albertoni says the sector suffered a “violent stop”. The problem was not always felt immediately in the yards that build larger boats – a superyacht is loosely defined as a vessel more than 30m or 100ft long – because the long lead- times in construction mean that some are still making boats ordered in 2007. But the dearth of new orders, some cancellations and the withdrawal of credit have left indebted companies struggling and caused headaches across the industry. The charter busi- ness was also hit by lower prices. Figures from the Superyacht Intelli- gence Agency, part of The Yacht Report Group, show that 241 large yachts were delivered last year, com- pared with 231 in 2007 and 267 in 2006. From this year, however, it will be hard to achieve such steady numbers. “While it is not all gloom and doom, we have certainly seen a huge reduc- tion in yachts sold and charters booked,” The Yacht Report says. Camper & Nicholsons International, the yacht group, which produces its own slightly different statistics in its annual Yachting Index, says that the crash in financial markets after the collapse of Lehman Brothers in Sep- After the financial storm: serious buyers,” says David Tydeman, teamed up for the launch this month tion, for the comfort of a displacement tember 2008 “triggered a change, and buyers may prefer Customers are more likely chief executive of Oyster, the luxury of their venture to make a revolution- vessel rather than the gas-guzzling most probably an irreversible one, in classic, elegant lines, than before to opt for UK yacht maker, which has extended ary €100m, 2,900-tonne motoryacht of speed of a fast, planing motoryacht, the large yacht industry”. Offers to such as those of this its range and is due to finish its first “exceptional” width, style and com- and for classic, elegant and seaworthy buy were withdrawn and build con- yacht, Gliss discretion over 100ft-plus next year. fort that would be powered not only lines over extreme designs. tracts cancelled by potential owners. Other producers see similar indica- by diesel but also by arrays of solar “In general, we are losing the nou- Nimbler companies moved quickly conspicuous consumption tions of demand flickering back to life panels, wind generators and a kite to veaux riches ,” says Azimut’s Mr to cut production. Fairline, the UK and predict better times, once the assist propulsion. Vitelli. “There were plenty in the last maker of motor yachts up to 78ft, had stock overhang of – new and second- Patrick Thomas, Hermès chief exec- 24 months before the crisis, coming trebled in size through organic hand – boats for sale has shifted. utive, says the ultra-wealthy target from Russia, from finance, from growth in the previous 13 years, but “The growth of the past few years market for the vessel numbers only emerging markets.” took drastic steps to reduce output at has been enormous and a sort of cor- 200 people, a “very rarefied” universe Barry Gilmour, executive chairman the end of 2008, according to Derek rection was necessary,” says Paolo of possible customers for this “anti- of Royale Oceanic, the yacht services Carter, chief executive. Inside this issue Vitelli, founder and chairman of boat”. For Wally founder Luca Bas- company that supervises construction The company laid off 400 of its 1,400 Manufacturers It has been a Classics Richard Donkin on the Italy’s Azimut-Benetti Group. But he sani, the key to the yacht is stability. and management for owners, says staff and cut turnover by a third to fierce storm but there are signs J Class revival (pictured) adds: “Rich people want to spend “A lot of customers still suffer sea- customers will once again start spend- about £100m a year. Other luxury of calmer waters, writes Page 5 their money there are plenty of rich sickness,” he says. “The original idea ing millions of dollars on superyachts. yacht builders, including Ferretti in David Glenn Page 2 people and in the world.” was to create a kind of floating island But he expects to see consolidation Italy and Rodriguez and Couach in Bases Antigua has many What is not yet clear is precisely rather than a yacht.” among the weaker members of the France, were forced to restructure Finance Jill James says advantages but drugs and how the crisis will change the spend- Even if new customers are attracted industry in the aftermath of the crisis. their debts or seek protection from the crisis has restricted petty crime are problems, ing habits of the rich and whether it to superyachting by such innovative “It’s a cyclical business. People in creditors. deal-flow and there are writes Frances Howorth will affect two of the notable recent concepts, sceptics doubt that the mar- the yacht business got carried away Today, international yachtmakers fewer lenders Page 2 Page 6 trends in the superyacht market: the ket as a whole can return to the by their own hype,” he says. “I think say they are starting to see a trickle irruption of fashion designers, archi- heady growth of the previous decade. we’re probably going to hit the nadir of orders and are hoping for a return Consumers The lack of ’s cup tects and luxury goods houses – Nor- Brokers and manufacturers say the in December or January and we’ll to some sort of normality in 2010, superyacht marina places Simon Greaves on a two-boat man Foster, Philippe Starck, LVMH – mood among the wealthy has been start to see slow recovery from there. especially for vessels of – relatively – is a worrying constraint race Page 8 and the drive for more environmen- changed by the financial crisis and But I don’t think it will ever get back modest size and price. on the industry. tally friendly boats. the resulting public scorn for the fin- to where it was.” In a glamorous busi- Victor Mallet “It’s been very tough since the sum- reports Sometimes the two are connected. anciers responsible. Customers are ness once known for its ebullience mer of last year, but I’m seeing early Page 4 Wally, the Monaco superyacht com- more likely than before to opt for dis- and year-after-year expansion, that signs of confidence returning and pany, and Hermès of Paris have cretion over conspicuous consump- view is surprisingly widely shared. The ultimate in discretionary spending

CHARTERING sometimes disappointed, how- their wealth in billions. Some when many owners want exclu- most exclusive yachts reflects ever, as owners withdrew their may have seen a £10bn fortune sive use of their yachts. “The production demand among Owners want to keep boats rather than cave in to halved to £5bn in the credit pick-up in business means that yachtbuilders. The production chartering but won’t excessive price-cutting. crunch but at the end of the it has not been as catastrophic company, Sunseeker, has “Some charterers have had day, they are still wealthy peo- as we feared at one stage,” he avoided the difficulties experi- do it for a pittance, the impression that all yacht ple and, in most cases, can use adds. enced among some of the Italian says Richard Donkin owners are desperate and will- their yachts as they wish. But Ben Stuart, general manager builders by reducing production ing to take big price drops,” the yachts have to be main- at C&N Marinas’ Grand Harbour in smaller, and increasing its says Alev Karagulle, director of tained, crewed and insured; they Marina, Malta, one of the Medi- business share in bigger, yachts. Early indications suggest that marketing and communications can’t be laid up in the Nevada terranean’s largest purpose-built “I’m quietly optimistic. We have charter business among super- at Burgess, the yacht sales, bro- desert like surplus aircraft.” worked very hard to develop the yachts – worth about $530m in kerage and chartering company. When charter can bring in boats the market wants and I’m 2008 – may have fallen by 25 to “Those who charter boats like €220,000 a week as it does for ‘People don’t charter proud that we have done so 30 per cent this year, although to keep them chartering as it News Corporation chairman their yachts as a without laying anyone off,” says there are signs that the market brings in some income to help Rupert Murdoch’s 56 metre-long chief executive and company has been picking up towards the with running costs; but they’re sailing yacht, Rosehearty, the business but in order founder Robert Braithwaite. end of the summer with a flurry not going to charter at a pit- income is a welcome contribu- to defray some of the About 1,000 yachts over 24m of late bookings relieving the tance. If it’s not worth their tion to running costs. are now available to the charter Grand Harbour Marina, Malta: this has been a quieter season Alamy early season gloom. while the boat will stay in port,” But the so-called “bottom fish- operational costs and market where demand has Demand fell markedly in the The point is underlined by ers” who appeared in this year’s remained strongest for the the most desirable vessels in Some brokers noticed an early spring just as supply in Barry Gilmour, executive chair- charter market did not make to keep crews busy’ larger boats that also command today’s market, where deals increase in interest among the the market had been swollen by man of Royale Oceanic, the themselves popular among own- the top prices. have demanded flexibility on less conspicuous Mediterranean greater availability as new and yacht services company. “Own- ers or chartering agents. “Many superyacht marinas, confirms In 2008, according to Camper both sides to win business. Bro- destinations such as Croatia, existing owners sought to get ership of a superyacht is the owners preferred to say ‘no’ that superyacht traffic has been & Nicholsons International kers found they were unable to Greece and Turkey, suggesting some return on their running ultimate in discretionary spend- rather than accepting the quick slow this year. “It’s been a rea- Yachting Index, the average command client loyalty as char- that charter buyers were prov- costs. ing. People don’t charter their fix,” says Laurent Perignon, sonably quiet season for all weekly charter rate for 30m to ter customers chose to shop ing less willing to flaunt their While owners dropped their yachts as a business but in director of marketing at Camper boats but certainly more boats 50m yachts was $118,000, pricing around. wealth. rates by between 10 and 20 per order to defray some of the oper- & Nicholsons International. have been moving through in them at $2,950 a metre, while Corporate charters, which last Most brokers agree the mar- cent, the bargain hunters were ational costs and to keep crews As the summer wore on, bro- August. A lot of people seem to the average weekly rate for a year made up less than 10 per ket is unlikely to rebound to the looking for even better deals or busy. kers negotiated increasing num- have been taking shorter char- yacht above 50m was $422,000 or cent of the market, are also levels of 2007 and early 2008 in incentives such as an extra “The people who buy these bers of late deals, he says, partly ters this year and have not been $7,000 a metre. expected to be down this year, the short term and booking lev- day’s charter within the price. yachts, particularly in the upper perhaps because of a lower travelling long distances.” Such rates, however, have as companies struggle to justify els suggest a slow Caribbean More aggressive customers were range of 85 to 100 metres, count availability in July and August Demand for the biggest and proved unsustainable for all but spending on such luxury. season in the winter. 2 ★ FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 Yachts Boat builders take a battering

MANUFACTURERS including the need not to be seen to be indulging. There are It has been a fierce plenty of plans being drawn up storm, but there are for new yachts both and power, but some potential own- signs of calmer times, ers are waiting for conditions to reports David Glenn be morally acceptable before putting their money down. But few if any of the signifi- fter a decade of unprec- cant companies in the super- edented growth, the yacht building league have Asuperyacht industry failed as a direct result of the has shown that it is not current recession. Of the hand- immune from recession. Orders ful to have closed, Jongert, the have dried up and projects been iconic Dutch sailing yacht yard, put on hold. was bankrupted this year after a The downturn has been felt history of indifferent manage- most in the motor yacht sector, ment and this recession was where an estimated 85 per cent enough to take the company Roman Abramovich’s 557ft Eclipse leaves the dockyard in June 2009. It is the largest privately owned yacht in the world, with a mini-submarine and two helipads Marcus Brandt of the industry is concentrated. beyond the brink. Brokerage prices have been cut Like supertankers, the super- and now with LVMH as a big biggest superyacht launches in They have, however, this year Although there are big refit try pitches hard for refit, tempt- by up to 50 per cent, heralding yacht building business is slow shareholder, are bullish. modern times. Even in the cur- launched the energy-efficient centres in the Mediterranean at ing owners with an opportunity the end of the yachting invest- to turn. Yachts can take any- “There’s still a lot of flesh on rent climate of restraint Ham- Ethereal for Sun Microsystems La Ciotat, in Genoa and Barce- of some attractive local cruising ment business. thing from two to seven years to the bone,” says Holland Yacht burg-based Blohm+Voss is tout- founder Bill Joy and the latest lona there is a tendency for at the same time. Russian clients were market complete and with a rush of Group’s chairman Farouk Nefzi, ing a 110m motor yacht whose new J Class for Dr Jim Clark, owners to return to their build- Another influence in the sail- drivers a few years ago but orders signed two or three years referring to the current build 110,000hp power plant will pro- who founded Netscape. It is his ers or at least close to them. ing yacht market is superyacht when some lost fortunes, yacht- ago, there is still plenty of list. pel it at a startling 40 knots, third superyacht from Royal The UK’s Pendennis Shipyard regattas. Owners have discov- ing was an early casualty. momentum, with new yachts Dick van Lent said recently thanks to historical expertise in Huisman. at Falmouth, Cornwall, has ered a new dimension and you One syndicate that had built a launching at a healthy rate. that while conditions were diffi- building fast warships. They have three newbuilds developed its facility specifically only have to look at events in St series of three 200ft motor Roman Abramovich’s 557ft cult he had no qualms about On the sail-power front, there keeping them busy and continue for refit. With its location at the Barths, Palma, Majorca and yachts in Italy and sold them Eclipse, the largest privately- building two of his F45 (45m) to offer a refit service, although western end of the English recently Porto Cervo in Sardinia almost as soon as they had been owned yacht in the world, semi-custom models specula- the inconvenience of getting a Channel it is geographically to witness its popularity. launched for a reported 100 per which comes complete with its tively. With price tags of some There is clearly a yacht to their yard at Vollen- well-placed. Record fleets have been cent profit on the build price, own submarine, accommodation $40m, this is a bold move but he future in refit, with hove along the canal system is Southampton Yacht Services attending these events, which tried the same again with a Ger- for three helicopters and 75 is not alone in thinking that an issue. But there is clearly a in Southampton is another provide friendly racing with a man builder, but the global crew, may make the industry more standardised production 5,000 superyachts future in refit. example and many of the lead- competitive edge and glamour- downturn meant the syndicate look healthy, particularly for methods are a way of cutting plying the oceans With upwards of 5,000 super- ing yards in the Netherlands are ous, sponsor-driven entertain- had to abandon the project with her builders Blohm+Voss, but it costs and attracting buyers who yachts plying the oceans and re-emphasising their refit capa- ment. multi-million dollar losses. With is what happens next that want a proven product. and more to come more to come, to maintain value bilities, although, in some cases, No expense, it would seem, is such yachts costing anything counts. Amels, part of the commercial the need to keep them in com- getting to the yard via the canal being spared on new sails, the between €30m and €80m, the The acid test will come this shipbuilder Damen, have also mission is imperative. system is difficult. latest and, in the consequences can be ruinous. winter, when yards will need to tried this policy with some suc- have been some high profile The refit business is gathering Despite being iced in for the absence of an ongoing Amer- “We’re back to reality as far start signing new contracts if cess and they are benefiting cancellations most notably per- momentum and those who winter, Nautor’s Swan and more ica’s Cup programme, hiring as prices are concerned,” says they are to avoid contraction or from feeding off the technology haps at Royal Huisman in the invested some time ago are now recently Baltic Yachts have professional crew to gain a win- one broker, who admits it isn’t a worse in 2010 and 2011. The embedded in their business part- Netherlands, still considered reaping the benefits, as owners established waterside premises ning edge. Yards and designers bad time to buy yachts at bar- industry seems to be holding its ners who service the demanding one of the world’s most capable not only call for regular servic- in northern Finland, financed are capitalising on this trend. gain basement prices. nerve. offshore industry. builders. They have lost two big ing to keep their yachts in class, by the local authority to help The one thing owners appear But there are plenty of rea- In the Netherlands, the likes There is plenty of confidence orders, including a 283ft three- but opt for modernisation pro- maintain employment. not to be prepared to give us is sons for not buying a yacht in of Oceanco, Amels and Van among the Germans too, who masted for a Russian grammes instead of building And on the other side of the their regular dose of regatta the current economic climate, Lent, part of the Feadship group are credited with some of the client. something new. world, the New Zealand indus- competition. Credit crisis restricts deals, but the ship sails on

FINANCE can put together complex and status – and a mortgage yacht lending had risen, management packages for can usually be secured with new entrants offering The are now fewer yacht owners. Technical against the boat. aggressive loan-to-value lenders, but the complexity, rules and regu- It says its 10-year mort- rates and greatly reduced lations needed for safe com- gage period is popular for a pricing. This has stopped. market is picking mercial operation, and the number of reasons – not Many banks have with- up, says Jill James levels of sophistication of least cost-effectiveness. drawn, resulting in a return onboard equipment, are all As marine loans are to sensible and commercial growing. There is also the secured against the vessel, pricing.” Yacht ownership comes at a issue of crew numbers and which is a depreciating He adds: “If banks have price. Buying the thing is crew qualifications. asset, the capital balance been saved by the taxpayer just the start of a long C&N provides manage- outstanding on a 10-year and are under political pres- financial commitment. ment to yachts ranging in loan decreases at a faster sure to support domestic “With a €20m yacht, you size from 22m to 90m. The rate than is the case with a companies and home own- can expect to spend €2m a company’s inhouse skills longer term loan or a low- ers, is it really acceptable to year on it,” says Laurent include those of qualified start or balloon loan. This be seen to be assisting in Perignon, marketing direc- engineers, master mariners means that equity in the the purchase of the ulti- tor of Camper & Nicholsons and accountants. It also vessel is protected – partic- mate discretionary spend? Yachting, a world leader in deals with flagging and ularly important if you “The speculative build the sale, purchase, charter, class issues, as well as ship- expect to change your boat element has gone for now; marketing, management yards, suppliers, manning before the loan is repaid. yards have experienced can- and construction of some of agents, surveyors and mari- Stewart Dick, director of cellations and there is pres- the finest yachts. time legal advisers. the private client finance sure on prices. Some Mr Perignon says: “It’s Edmiston, another of the team at private bankers projects are on hold.” like managing a business – world’s leading yachting Arbuthnot Latham, says his Mr Dick understands that especially when the yacht is companies, says clients and company has always been several new-build contracts commercially regulated. yacht captains can buy an are in default. “The supply- There is so much to take entire management pro- demand equation has into account: customs, gramme or à la carte serv- changed and it is now a taxes, international regula- ices. The company says cli- buyers’ market. There is a tions, technical and mana- ents may need one, several return to realism.” gerial support, surveys.” or all of its services during Mr Dick says several Companies such as C&N its time of ownership. banks have withdrawn from In terms of finance, Toby the sector, but Arbuthnot Walker, C&N sales director, Latham continues to lend Contributors says: “There are lenders out ‘We always advise on virtually the same basis. Victor Mallet there, but the majority of buyers to speak to “However, whereas in the Madrid Bureau Chief our sales are cash pur- past with a transaction chases. We always advise their banks before above £5m we would have Simon Greaves buyers to speak to their they set up a brought in a partner, it is FT.com Sailing own banks before they set no longer possible to sub- Correspondent up a financial package. financial package’ participate.” There is little marine lend- Toby Walker, Mr Dick says: “We are Fiona Harvey ing going on because so few still writing yacht loans and Environment Sales director Correspondent yachts are being sold.” Camper & Nicholsons seeing a strong, though Before approaching banks slightly reduced, deal flow. David Glenn to lend money, potential There are, however, a Deputy Editor, owners must bear in mind cautious and selective in its greatly reduced number of Yachting World that some will not counte- yacht lending. banks active in financing nance finance if loan repay- He says: “We are not a superyachts, so we can Simon de Burton ment is solely dependent on high-volume lender. We are safely assume that the over- Richard Donkin charter revenue. Tightening client-driven and seek to all number of potential Frances Howorth Michael Howorth in the lending market assist high net worth inter- transactions is down.” Jill James means that there are fewer national individuals where So what does the future FT Contributors opportunities to obtain a there is a genuine prospect hold for lending to existing loan from a mainstream of a meaningful long-term and potential yacht owners, Seb Morton-Clark bank. relationship. Our minimum given the depreciation of Commissioning Editor All banks or reputable loan is £1m and our maxi- the product and the current loan companies will insist mum loan is £5m. Our loan financial environment? Steven Bird your boat is insured with a to value at present is in the Mr Dick thinks market Designer recognised marine insur- range of 50 to 60 per cent.” correction has led to more Andy Mears ance company before they Prior to the banking cri- responsible lending and Picture Editor lend you a penny. Barclays sis, he says, the market had there will continue to be Marine Finance says that become overheated and demand from the very rich. For advertising contact: for advances above £60,000, reached an unsustainable He says: “There will be Ian Edwards on: a UK vessel must be regis- level. There was an unprec- less bank lending secured +44 020 7873 3272; tered with a shipping regis- edented increase in specula- on yachts and a return to e-mail: try that it approves of. tive new builds, both by the the cash purchaser. We see [email protected] or Barclays Marine Finance yards and by clients with clients using their asset your usual representative sets no upper limits to the multiple build slots. base to raise liquidity to amount it can lend – sub- Mr Dick adds: “The enable them to respond ject of course to application number of banks active in quickly to opportunities.” FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 ★ 3 Yachts Exotic options for whiling away the season

CHARTER OPTIONS highlight other parts of the world, emphasising the adven- David Glenn on turous and almost pioneering efforts to tempt aspects of some trips. Camper & Nicholsons offers charterers to more specialist dive charters from far-flung parts Fakarava in the Tuamotu archi- pelago, one of the most under- developed island chains in the uxury yacht charter, Pacific. The $100,000 a week sail- traditionally centred ing yacht Nelson is based there Lalong the French Rivi- and works between the Tuamo- era in the northern hem- tus and the Society Islands. isphere’s summer and the Carib- Edmiston offers a 35m catama- bean in its winter, has wit- ran for exploratory trips up the nessed leaner times of late. Amazon and another of its cli- All the blame does not lie ents has asked for bespoke heli- with the recession. Overcrowd- skiing trips in New Zealand and ing in the Mediterranean and a South America using a yacht as continued reluctance by Ameri- “base camp”. The Pacific North- cans to venture far have held west, famed for its wildlife and back business. exceptional fishing is another But charter still enjoys a cer- place some big yachts like to tain cachet and remains a frequent. favourite way of whiling away Burgess offers luxury, deep- the summer or taking a winter sea fishing safaris on a yacht break. based in Cairns on the Queens- The attractions of privacy, land coast, not far from the mobility, unrivalled luxury and Whitsunday Islands. yet the ability to keep in touch The Middle East is also trying via sophisticated satellite com- to persuade the market that munications make it popular UAE countries such as Dubai with those seeking an alterna- and Abu Dhabi are the “third tive to a land-based holiday. The destination” after the Mediterra- fact that there is something for nean and the Caribbean and everyone to do on large yachts highlight that they offer perfect makes them family-friendly. year-round conditions. With some as long as 400ft, There would seem be more to equipped with everything from attract clients ashore than helicopters, mini-submarines, afloat and the “for sale” signs full-blown cinemas and spas and that litter the developments not- a standard of cuisine that regu- withstanding, there are some larly outstrips what is available remarkable attractions includ- ashore, the attractions of large ing indoor skiing and dune bug- yacht charter are obvious, gying. despite prices of about $300,000 a Another growing phenomenon week. is the superyacht regatta, which The choice of vessels is now offers a competitive dimension extraordinary: anything from to ownership. the recently sold Maltese Fal- Local boaters on Lake Sandoval in Peru: brokers are keen to promote the adventurous aspects of some trips. such as exploratory journeys up the Amazon dreamstime Some yachts can be chartered con, which measures 287ft, is and events in St Barths in the capable of 23 knots under sail as St Tropez and even the charter, but this trend has been “milk-run” of the French Rivi- oligarch Oleg Deripaska have Caribbean, Newport on Rhode and has three free-standing car- smaller anchorages in Ville- thwarted in recent times by era, Sardinia, Capri, the Ligu- started developing Porto Mon- Island, Palma in Majorca, St bon fibre masts setting 15 mod- franche and Cap-Ferrat can be worries about terrorism. rian and Tuscan coasts and the tenegro in the Bay of Kotor. Tropez, and Porto Cervo in Sar- ern squaresails, to the 325ft off-putting. Alarming but sometimes exag- Lipari Islands off Sicily. Croatia This is an old navy base and dinia provide some spectacular restored classic motor yacht In the July and August high gerated reports of piracy and offers unspoiled and spectacular there are excellent wharves and sailing. Cristina O, once owned by Aris- season, it is almost impossible, random acts of violence in the cruising and now Montenegro is other facilities that could be This is highly specialised totle Onassis who upholstered but broker research shows char- Caribbean, for instance, can also coming on board. But the infra- turned into a modern super- charter but with the help of pro- the bar stools in whale foreskin terers are creatures of habit and have a significant effect on busi- structure for large yachts in the yacht hub. fessional sailors it is an option and aboard which he enter- return to the places to be seen. ness. Adriatic as a whole is still lack- Another growing With good communications many clients are considering, tained Jackie Kennedy. Efforts are being made to There is also the expense of ing. phenomenon is the and a tax-free status for fuel and particularly if they are in the Fixtures in the social calen- tempt charterers to more far- wear and tear and the complex In an attempt to address this other services it could become market for a performance dar, such as the Cannes film fes- flung parts of the Mediterranean logistics of long distance pas- and to relieve pressure on the superyacht regatta, another Monte Carlo, claim the superyacht themselves. tival and the Monaco Grand and the Adriatic. sage-making, so out-of-the-way Mediterranean hotspots, a group which offers a developers. These events are attracting Prix effectively kick-start the Owners of some yachts are charter remains limited. of investors, including Peter Despite these attractions, increasing numbers. It seems Mediterranean summer season, keen to go farther and plan cir- In recent seasons, the north- Munk of Barrick Gold, Lord competitive dimension leading brokers such as Edmis- that the one thing people aren’t but from then on the scrum to cumnavigations, sections of ern Adriatic has certainly Jacob Rothschild, Bernault ton, Burgess, Camper & Nichol- prepared to forgo in a downturn get into fashionable haunts such which are open to specialist become an alternative to the Arnault of LVMH and Russian to ownership sons and Fraser are keen to is their annual regatta. Landlubbers learn to take to the water like ducks

PROFILE a change of lifestyle and people of all levels, even and Cephalonia, stopping to SAIL IONIAN had decided to try our hand total beginners,” says Mrs swim and enjoy long, lei- at yacht charter, so we Bingham surely lunches. Simon de Burton ordered two Bavaria 38 “We realised many people The company offers free on a family-owned yachts with a view to set- wanted to try a sailing holi- tuition from a qualified ting up a small business on day but didn’t because they skipper every Sunday after- charter service that the south coast of Eng- thought they needed at noon and free mooring aims to cater for land,” recalls 54-year-old least some sort of experi- classes on Monday morn- Mrs Bingham. ence. ings. people at all levels “But then I spotted this “All charter companies All yachts have GPS navi- advertisement for a charter have different ways of get- gation equipment, sea company that was for sale ting novices out on the charts, safety and emer- Yacht charter takes many on the Greek island of Lef- water, sometimes using gency gear, bedding, cater- forms, but to many people kas. There wasn’t much to class-based instruction, pro- ing equipment and basic the words still speak only of it – just five run-down boats viding them with a skipper provisions. something they cannot that needed a great deal of or only allowing them to If anything does go afford to do and which they work.” sail as part of a flotilla. wrong, Sail Ionian’s 300 never expect to experience. Undeterred, the Bing- “Our aim is to provide horsepower rigid-inflatable But a British couple are hams bought the company, boat promises to be on the intent on changing that diverted the two Bavarias scene in minutes. with their small, family- to Lefkas and, in the spring ‘We realised many The firm’s inclusive owned company. of 2003, established Sail people wanted to approach has resulted in a The aim is to have even Ionian. large amount of repeat busi- total novices out on the At first they worked from try a sailing holiday ness and this winter, hav- water and sailing safely, the back of their car, lived but didn’t because ing gained the licence and confidently and independ- in a small rented apartment coding required to make ently in the fastest possible and took bookings by they thought they trans-Atlantic charter cross- time, with the minimum of mobile telephone. ings, it is expanding its effort and at a surprisingly Now, however, the Bing- lacked experience’ remit to the Caribbean. affordable cost. hams have sold their Two 46ft Bavarias will Eight years ago, Neil and Leicestershire house, set up basic, hands-on tuition and make the crossing in about Di Bingham were living in home in Greece and quickly get people to ‘com- five legs, with places availa- land-locked Leicestershire increased the fleet to 23 petent crew’ level ,so they ble on each leg to people and looked upon sailing as boats. can be sailing independ- who want to use the jour- nothing more than an Their daughter Katy, 26, ently in the minimum time ney as a mile-building trip enjoyable hobby that pro- runs the firm’s Royal Yacht and with the minimum of to gain experience. vided some much-needed Association-approved train- stress.” A few clients have even relaxation from the stresses ing school and their son Mrs Bingham says many embraced sailing to such an of running their two busi- Chris, 24, oversees the engi- families simply use the extent that they have nesses: in engineering and neering side, while the cou- yachts as floating hotel entered the company’s part- corporate entertainment. ple look after the logistics rooms, taking advantage of ownership scheme, which But then a classified of taking bookings and run- the Ionian’s famously enables them to purchase a advertisement in a yachting ning the business. friendly and predictable new Bavaria at a dis- magazine set them off on a “We set out to create a winds to potter gently from counted rate, provided it whole new tack. family-friendly charter serv- bay to bay between the remains on the charter fleet “We had been looking for ice that catered for islands of Meganissi, Ithaka for five years.

Boom service: a Bavaria 37 moored in Kalamos. Many families simply use the yachts as floating hotel rooms Sail Ionian 4 ★ FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 Yachts The battle against berth control goes on

CONSUMERS The lack of superyacht marina places is a worrying constraint on the industry, writes Victor Mallet

ick Maris, chairman of Camper & Nicholsons NMarinas, the marina management and development company, has come up with an intriguing nug- get of information about sought- after superyacht berths in the western Mediterranean. Staff at the company’s Moscow office used satellite pic- tures and other data to conclude that there were just 155 berths in the whole of Mediterranean France for yachts more than 40m in length. The fact that they went to such lengths in their research underlines how serious the shortage of berths has become. Berthing in a safe, convenient and preferably pleasant harbour is an obvious requirement for superyacht owners and charter- ers, but the worldwide lack of marina places for large, luxury yachts has turned into one of the most worrying constraints on the industry: in spite of the global financial crisis, the number of superyachts afloat continues to grow, while the Isabel Teruel, director of Ocibar, surveys work on the company’s €80m project to expand Port Adriano in Majorca and turn it into a superyacht harbour Victor Mallet number of berths has barely risen. Malta, where Camper & Nichol- Palma de Mallorca in Spain’s where you can put super- winter, the concrete caissons also makes it a lot more attrac- “There are few things that sons has a marina, prices have Balearic Islands is the main yachts,” says Isabel Teruel, Oci- had to be towed from the main- tive,” Ms Teruel says. affect the enjoyment and the risen from €500 to reach €2,200 superyacht hub in the region. In bar director, surveying the land by tug – a three-day jour- Given the global shortage of cost of operating a yacht as per sq m for a 25-year contract spite of a taxation system that 10-metre high harbour wall that ney – before being sunk in place superyacht berths, it is perhaps much as your choice of home in recent sales, says Mr Maris. has driven the big yacht charter has been built to protect the to create the harbour. surprising that Port Adriano port,” says Mr Maris. “Where For a 100-metre yacht that business elsewhere, Palma is new berths: a rare Mediterra- Already about 40 per cent of has not sold out, but the global you put the yacht can have a works out at nearly €6m, a fig- packed with superyachts in high nean addition of 82 places for the berths available for sale as crisis has made even the super- huge effect on the taxes and ure that would be tripled or season and low because of the yachts between 20m and 60m. long-term concessions until 2037 rich more cautious and cost-con- duties you pay.” quadrupled in a premium port. proximity of good cruising It was no easy task. After dec- have been taken up by Euro- scious and berth space there Pointing to the western Medi- Superyacht skippers are waters and the cluster of big- ades of sometimes unruly pean owners, says Ms Teruel, comes at a premium of terranean cruising waters of the acutely aware of the challenges. boat marinas and yacht servic- coastal development, European and the first luxury yachts €8,000-€9,000 per square metre. Balearics, the French Riviera Finding a satisfactory anchor- ing companies in the bay. governments are reluctant these should be tied up by May 2010. Ms Teruel believes the laws of and Monaco, Mr Maris says age for a night or two is not too Any extra berthing capacity is days to authorise construction The investors are not content demand and supply will never- “there haven’t been berths built hard, but a marina pontoon in therefore likely to be welcomed near the shore. The company to build a simple marina but theless bring business to the in those places for decades”. He the high season is another mat- by the industry, and Ocibar, a had to satisfy Brussels, as well have opted for an underground port. concludes: “Berths are in short ter. “Berthing gets to be more local company controlled by as Madrid and Palma, that it ‘There are few things car park, to clear the way for “It was lucky that we started supply and they will remain in and more of a problem because Banca March and the Zaforteza was complying with environ- that affect the visitors to stroll around the har- before, so many of the berths short supply in premium areas.” there are more big boats around family, is providing just that mental regulations and not bour, and signed up designer were reserved before the crisis,” The price of a multi-year lease the world,” says Phil Stevens, with an €80m project down the destroying any underwater enjoyment and the Philippe Starck to add a flavour she concedes. But she adds: for an expensive berth in the captain of the 60m Slipstream, coast from Palma to expand meadows of the protected Posi- cost of operating a of modern luxury to the archi- “People are asking for discounts south of France ranges from shortly after being called away Port Adriano and turn it into a donia seagrass, and “it took tecture. He is designing even but we don’t think it’s worth it. about €8,000 to €12,000 per by the authorities in Saint- superyacht harbour. quite a few years to get the per- yacht as much as your the bollards. Once this crisis has passed there square metre of space. Even in Tropez to move the vessel to a “There aren’t any other ports mit”, says Ms Teruel. “Obviously it makes the will be a demand for these an outlying destination such as new location in the harbour. being built [in this region] Then, in the midst of stormy choice of home port’ project more expensive, but it moorings for sure.” Asian Extreme series to augment the calendar

ISHARES CUP Cumming, goes into the Conditions on the short third Artemis Transat next three-day regatta with and tight courses of the transatlantic race last year. Simon Greaves on a four-point lead over its Kiel fjord were particularly Other Olympic competitors an addition to the nearest rivals, the joint sec- demanding, with the wind include Carolijn Brouwer ond-placed GitanaExtreme- gusting at up to 30 knots. on Holmatro. sport’s offering Groupe LCF Rothschild, The carbon-fibre boats, Gilles Chiorri, director of from France with skipper designed by Olympic cham- the event, says: “The boats Yann Guichard, and Renais- pions Yves Loday and accelerate quickly and even The iShares Cup, the For- sance with Loïck Peyron, Mitch Booth, are built to fly in light to moderate winds mula One-style interna- the French spe- a hull in medium winds of 8 they lift their hulls, as they tional racing cialist also from Oman Sail. knots and at each regatta are designed to do, and series, is to add a “winter The other teams in the go head-to-head with their that makes the racing and series”. running are France’s nine rivals in as many as 18 the experience for their Race series organiser OC Groupama 40 with Franck races of up to 20 minutes onboard guests very enter- Events is developing the Cammas at the helm, BT duration, in a variety of taining. inaugural Asian Extreme led by Nick Maloney, BMW- inshore and offshore condi- “Once you get any kind of Sailing Series for the Oracle Racing with Amer- tions. decent breeze, the racing Extreme 40 class, with ica’s Cup star James Spith- becomes very intense and regattas in the Middle East ill, iShares skippered by exhilarating – you can hear and Asia this winter, start- Scotland’s Dame Shirley ‘You can hear the the crowd gasp as the fleet ing in November. Robertson, France’s Luna crowd gasp as the races at close quarters, mis- The series is expected to led by Erik Maris, the ing each other or the har- visit Hong Kong, Singapore, Dutch team Holmatro with fleet races at close bour wall by inches.” The Maldives and culmi- Mitch Booth and Ecover quarters, avoiding iShares, which has spon- nate in Muscat, Oman, the with Mike Golding. sored the series for three climax of the month-long The Extreme 40 class has contact by inches’ years, says: “ Without want- Muscat Festival. quickly established itself ing to be a me-too sailing Mark Turner, chief execu- as a sporting spectacle, sponsor, we looked for tive of OC Group, parent attracting 150,000 spectators Mr Peyron has joined the something that would pro- company of OC Events, last year, with its promise line-up of stars taking part vide differentiation and says: “The long-term inten- of thrills and spills in quick- this year, which features ownership within the sport. tion is to develop an bust races. world champions, Amer- “During racing we offer Extreme sailing series that In Kiel this year, gusty ica’s Cup aces, Olympians, our guests the opportunity has a high sporting integ- winds resulted in a series of and round-the-world cam- to sail on board as part of rity coupled with a unique capsizes – the light and paigners. the team by becoming the B2B opportunity. powerful boats can pitch- The French multihull 5th member of the race “We are developing an pole forwards spectacularly stars competing this year crew. Asian series that will stand when overpowered, spilling include Franck Cammas “This unrivalled experi- alone from the current crews into the water – and and Mr Guichard, while Mr ence provides the clients European iShares Cup and collisions, with a broken Peyron is holder of five oce- with the ride of their lives for this winter we plan to mast and a crew member anic multihull champion- and contributes heavily to have four events and hope- with a head injury. ship titles and won his the extraordinary client fully up to six boats, grow- feedback”. ing to a full-scale series.” The series has established With only the Amsterdam itself as a platform for regatta this weekend from media promotion and corpo- September 25-27, which is rate hospitality. the penultimate round of Among those to have the European series, and taken advantage of this then the final regatta of the opportunity, at the Cowes series of six, at Almeria, regatta this summer, were southern Spain, from Octo- yachtsman Simon Le Bon ber 10-12, a team from of Duran Duran, television Oman Sail with three presenter Ben Fogel, For- regatta wins is on course to mula One team Brawn’s lift the cup this year. chief executive Nicky Fry The current series, adding and round-the-world sailors another venue in its third Sam Davies and Dee Caf- year of competition, started fari. on the canals of Venice in Later Mr Fry said: “The mid-May, moving to Hyères, iShares Cup is just like For- on France’s Côte D’Azur, mula One. It combines high- the UK’s Cowes week in technology, great teamwork August, then Kiel, Ger- and accessible entertain- many, which will be fol- ment for the fans.” lowed by the canals of The tender process to Amsterdam leading to next select race venues for the month’s finale in Andalu- 2010-11 season is already cia. under way, with more than Oman Sail team’s boat 50 potential host ports Masirah, skippered by Pete Precious vessel: Oman Sail is on track to win this year expressing interest. FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 ★ 5 Yachts J Class revival recreates a playground for private racers

CLASSICS terminal decay by a handful of enthu- siasts who began to take an interest Within a few years, the in surviving yachts about 30 years series of modern replicas ago. Yachts that had been developed to and reconstructed versions contest the America’s Cup between should be complete, the wars, owned originally by wealthy sailing luminaries such as Sir Thomas writes Richard Donkin Lipton, Sir Thomas Sopwith and Wil- liam Lawrence Stephenson, were oining the crew of a classic sail- abandoned or scrapped during the sec- ing yacht is like stepping back ond world war and a few surviving Jin time to the great age of sail. hulks spent most the of the 1950s and You can almost smell the 1960s sitting on mud flats up the river mahogany on Hetairos, a 43m Hamble in the UK. built by the German yard, Abeking & Meanwhile the original lines plans Rasmussen. and documents covering the UK Inside the saloon there is a piano yachts had been destroyed in a war- and a wood-burning stove. It looks time air raid on Gosport. “We had like the kind of boat Phileas Fogg surviving examples of British yachts would have used to win his round-the- and surviving lines plans of US world-in-80 days wager. yachts. So were able to put them Yet Hetairos is a modern classic, together like building a jigsaw puz- designed by Bruce King and launched zle,” says Gerard Dykstra, the naval in 1993. It represents a vogue for com- architect who has worked on a bining classic-style sailing with all the number of restoration projects. comforts of a modern superyacht. Gerard Dykstra and Partners were Guests are entertained to candlelit responsible for the latest J Class suppers at an elegant wooden table build, Hanuman, a replica of Sop- with crystal glasses and mono- with’s II, launched at the grammed chairs. Royal Huisman shipyard in the Neth- Jens Cornelsen, the yacht’s project erlands in March. manager, points out intricate features The new yacht, owned by Jim such as prism windows set in to the Clark, co-founder of Silicon Graphics deck to shed light below. “The people and Netscape, was raced against Close to the wind: J Class yachts taking part in the Maxi Yacht Rolex Cup 2008 in Porto Cervo, Italy. As yet there is no standalone J Class event Richard Donkin who knew how to build this boat have another J Class, Velsheda, owned by since retired so you’re looking at the Dutch businessman Ronald de Waal, “The hydraulic winching systems Today it is under build again, mak- we didn’t know how to sail her. There last of its kind,” he says. off Newport, Rhode Island, in July. on board would make your eyes ing it one of the world’s longest yacht were no manuals so we had to learn As traditional skills become hard to “That’s typical of J Class racing. water. It used to take three minutes to construction projects – 74 years from from scratch. But today, under racing find, however, it has not deterred a These are privately-owned racing toys hoist the spinnaker to the top of the design to its projected launch in 2011. sails, she is capable of matching many growing number of superyacht own- for rich businessmen. The owners will mast. Now it takes 45 seconds.” The next yacht in the rebuild and modern performance superyachts,” ers from exploring the classic get together and race each other for a The association has identified and replica series, due to appear next year says Mr Pitman. marques, and few designs have bottle of champagne,” says David Pit- ratified lines plans for 14 yachts, with ‘In their era, these were is Lionheart, while building work on Hitherto the J Class yachts have attracted more attention in recent man who runs the J Class Associa- another set – made up of the fore and high-tech boats, the another – Atlantis – has been sus- had to content themselves with years than the J Class yachts. tion. aft ends of two different yachts – pended for the time being. the occasional duel or in sailing Revival of the J Class has been a “In their era, these were high-tech under consideration for approval. equivalent of Formula One Within a few years, however, the J against modern yachts, in series such sailing phenomenon not unlike the boats, the equivalent of Formula One The lines plans are for yachts previ- racing cars, and today the Class series of modern replicas and as the Maxi Yacht Rolex Cup, but success of the Goodwood Festival of racing cars and today the principle ously designed or built. reconstructed yachts should be com- plans are in the pipeline, says Mr Pit- Speed, the classic car meeting that behind their build is just the same. A Swedish yacht, Svea, for example, principle behind their build plete, representing a remarkable man, to seek sponsors for a stand- has become an annual fixture in the They’re using carbon masts and car- is known to have been under build in come-back for some of the most excit- alone J Class event or series. “It’s an sporting calendar. bon rigging at the cutting edge of 1937 but was never completed due to is just the same’ ing racing yachts ever sailed. exciting time for these classic racing The marque was saved from almost technology. the outbreak of war. “When Velsheda was refitted in 1997 yachts.” Superyacht Cup seeks a little Olympian lustre

RACING sold and charters booked.” It added: “Many yachts The event, due to are being forced to accept debut in Cowes, discounts in order to secure charter bookings, with up has been carefully to 50 per cent discounts timed, says being sought (but not neces- sarily given).” Simon Greaves The agency also revealed that 89 per cent of captains surveyed reported charter When the Superyacht Cup bookings down on 2008, makes its debut at Cowes with an average seven before the Olympic games weeks less. in July 2012, this class will There are clearly bar- be reaching out for support gains to be had. Camper & from enthusiasts who fol- Nicholson, the yacht bro- low the America’s Cup, the ker, which runs a 240-strong world and Olympic classes fleet of superyachts, says its or the great round-the- average 2008 weekly charter world races. fee was $160,000. This new four-day contest The basic cost of charter- for sailing boats more than ing a superyacht in the 25m in length builds on the Mediterranean for one week success of the Superyacht averages about €100,000 for Cup series in Palma, Mal- a 40m boat based on lorca, and Antigua that between six and 12 people have been running since sharing. To this is added 1996. fuel, staff costs, victualling The events have attracted and other charges. some of the most prestig- View from a mast: the superyacht fleet off Cowes Kos Pictures Camper & Nicholson ious privately owned yachts expects overall revenues in the world. The organisers Marco Vogele’s 32m also behind the Monaco from chartering to be down bill it as “gentlemen’s rac- Gliss, built by Royal Huis- Yacht Show, the Abu Dhabi on the previous 12 months ing”, with a full social pro- man and designed by Yacht Show, the Phuket when the season ends this gramme. Philippe Briand, closely International Boat Show month. In 2007, the Palma regatta followed by the 46m Perini and the World Yacht Rac- Laurent Perignon, the had a record entry of 52 of Navi Antara, skippered by ing Forum, have set next marketing director, based the largest sailing yachts Jonno Johnston and Tho- year’s regatta at Palma for in Antibes, said: “This sea- ever mustered. The organis- mas Bsher’s 28.6m, Frers- June 23-26. son a lot of people made ers hope the Cowes event designed Wally Open Sea- In the meantime, if you last-minute bookings and will attract many of these son and then the Bruce fancy a taste of big boat enquiries. Previous years sleek beasts, as well as King designed 39.9m Maria cruising or racing, then this have seen earlier bookings. some of the latest launches. Cattiva, also built by Royal could be a good time to pick This year, there were The Royal Yacht Squad- Huisman, the Dutch special- more late negotiations on ron, the venerable Cowes ists. rate [of charter] and we club, which launched the The event attracted The organisers have been able to offer America’s Cup challenge in helmsmen and skippers, of the event bill deals where, say, delivery 1851 and was itself founded including Volvo race star charges are not applied or in 1815, will be responsible Mike Sanderson, America’s it as ‘gentlemen’s an extra day’s charter is for race management and Cup helmsman Peter Holm- racing’ with added on with a bit of nego- course setting. berg and solo sailor Nick tiation on rates, although The event is timed to pre- Maloney. Boat builders and a full social there was nothing excep- cede the opening of the owners use the events to tional.” Olympics and the start of showcase their products programme He reports a surge of sailing classes off Wey- and yards, and advertise interest in cruising the east- mouth on July 28. boats for sale. up some charter bargains. ern Mediterranean, in the Some participating yachts The organisers adopted The Yacht Report quotes seas between Croatia and may sail up the Thames for the bucket rating system data from the Superyacht Turkey despite reduced the opening ceremony or to used in the US and Carib- Intelligence Agency show- demand overall at the end Weymouth where berthing bean which calculates a ing: “The brokerage market of last year and the begin- arrangements are being yacht’s performance based – charter, sales and pur- ning of this. made. on design information and chase – has hit a low this “Confidence has risen This year, the series, run provides an individual year in comparison to the lately and we hope this will by the Informa Yacht starting time for each pur- heady heydays of previous open doors to prosperity Group, added a new venue suit race. years. this next spring,” he adds. and a new title sponsor, Close finishes added to “The industry has had to The bargains on offer Horus, for three days of rac- the excitement, with 15 readjust to the to the new could well tempt more sail- ing by an 18-strong fleet in yachts within 20 minutes, situation and while it is not ors into the burgeoning the Bay of Palma. eight of them just 3 minutes all doom and gloom, we superyacht sector. Eventual winner of the 30 seconds apart. have certainly seen a Bent Cleat Trophy was The organisers, who are huge reduction in yachts www.thesuperyachtcup.com 6 ★ FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 Yachts

English Harbour on the southern tip of Antigua: the island is a popular destination for transatlantic sailors, with good hotels and one of the longest runways in the eastern Caribbean A brilliant base but with a few drawbacks

ANTIGUA day before the shooting but Intelligence and preparation are vital in the fight against piracy on a couple of occasions Mr The island has Taylor and his guests had many advantages It is only a matter of time before a Graeme Gibbon Brooks, chief executive of but none boarded. Douglas Hinckley felt less than comfortable. superyacht off the African coast becomes a Dryad Maritime, a company that researches managing director of Joint Contract He says: “The drug prob- but drugs and high-profile target of Somali pirates, the nature, behaviour and problems posed Bodyguards believes the unarmed approach lem on the island is huge petty crime are according to Paul Kerr, managing director of by pirates and sea-going drug and people is a more prudent and ultimately better and we had to dismiss a Proform Marine, a security firm based in traffickers. route to follow. He says the aim is to give crew member who had been problems, says Scotland that employs former UK military While no superyacht has yet been peace of mind through heightened security unable to resist the tempta- Frances Howorth personnel. attacked, pirates have targeted “lookalikes”, measures provided by an experienced team. tions the island has to Luxury yachts, owned by some of the such as the French passenger vessel, Le The company has a close relationship with offer.” world’s wealthiest people, currently move Ponant, which was seized while sailing Dryad Maritime. Together they offer trained Hotels did not seem to he island of Anti- between the Mediterranean and the cruising without passengers from the Seychelles to guards supported by a constantly manned notice a drop off in trade gua is a hub of areas of the Seychelles, Mauritius and the the Mediterranean. operations room that provides live following the incident. The Tsuperyachting in Maldives via the Suez canal, passing through The threat that a superyacht will become intelligence, plus advice and information five-star resort hotel, Car- the Caribbean for the pirate-infested waters off Somalia. a target has prompted some owners to during the passage through a high-risk area. lisle Bay reported that any many reasons. “Pirates have better, faster boats and are instruct captains to embark armed guards. decrease was only marginal. It is an easy destination able to operate at night, up to 300 miles off The carrying of arms on board puts owners Profiting from piracy at sea Immediately after the for transatlantic sailors. It the coast,” Mr Kerr says, adding, “If they into complicated legal situations, but some Custom and immigration services in event, the hotel reviewed has good hotels, cheap can pick off a container ship doing 25 knots see it as necessary. countries around Somalia, from Egypt to all its security procedures flights and one of the long- with a high freeboard they can certainly The 64m Perini Navi yacht Felicita West Oman, are reportedly preventing protection while Antiguan police est runways in the eastern attack a shiny white superyacht that was in the Red Sea, on passage to the personnel who are going to join vessels stepped up their routine vis- Caribbean. sparkles in the sunlight offering a very Seychelles, when the two armed security crossing pirate-infested waters, from its to all hotels on the The first Caribbean char- rich-looking target.” guards were contacted by colleagues on a transporting security equipment through island. ter businesses were set up The company has seen a surge in demand ship two days ahead. Pirates had attacked Full metal necklace: a gunman on guard AFP their airports. John Maginley, Antigua here in the early 1960s and for its services over recent months as piracy their ship and the security guards were The Djibouti government requires security and Barbuda’s Minister of many superyachts, espe- has made headlines again. forced to jump into the sea in fear of their crew trained and armed. The captain should teams to register with a company called Tourism indicated that the cially sailing boats, now use As well as training superyacht crew on lives. Felicita West immediately diverted to be given the flexibility to commence firing as Djibouti Maritime Security Services, a country’s yachting industry the island as their main how to deal with attacks, the company Sharm el Sheikh and there, after discussion soon as he or she perceives a threat from government-appointed liaison service, and to remained surprisingly resil- regional base. provides escorts and advises on the use of with her owner, turned round and returned an unidentified vessel, which approaches and have a special licence. Fees are set at ient. The 2008-09 season saw A good deal of effort goes deterrents such as Sea Owl, high-pressure to the Mediterranean. refuses to turn back.” Not exactly a $15,000 a month, $80,000 for six months no real drop in the number into attracting yachts fin- water hoses and long range acoustic devices Dianne Feinstein, a Democrat US senator, conventional point of view, but one says and $150,000 for a year. Weapons can only of visiting superyachts. ishing their Mediterranean that have been used successfully. They are has called for US-flagged shipping vessels Moore: “That has worked with 100 per cent be hired from the Djibouti armed forces. He says, “The services season to winter there, and currently investigating ways of linking Sea operating in the Gulf of Aden, the Straits of success to date.” Former Royal Navy officer Paul Cook, now provided to the yachting the Caribbean season tradi- Owl into non-lethal but highly disruptive Malacca, or any other high-risk piracy zone a superyacht industry consultant says: “The sector are now an essential tionally begins with the laser devices. to have armed security teams aboard. Protection requires brains not brawn cynic in me sees ideas such as these as part of the country’s econ- island’s annual Charter US lawyer Michael Moore who specialises Intelligence rather than gunfire is the another money-generating initiative by a omy, with yachting contrib- Yacht Show, held in Decem- Intelligence in superyacht work agrees: “I believe in preferred option of UK superyacht crew government seeking to profit from the uting a significant percent- ber. “Pirates are getting very good intelligence on peace through superior firepower. If my sailing in pirate-infested waters off Somalia. piratical trade.” age of GDP. Started by the Nicholson vessels and are learning about those clients are planning to travel through areas There are several reports of yachts having “As such, the government family as an encourage- heading to and from the Suez Canal,” says frequented by pirates, I recommend having been threatened or approached by attackers Michael Howorth has done everything possi- ment to charter yachts to ble to ensure the safety and use the island as a cruising security of our yachting destination, the show now dures and practices dated an expensive destination. It shops, banks and laundries than cruise-ship tourists, Captain Chris Gartner, the scene of the crime, tourists. Antigua has attracts about 100 yachts back to the days when not is not the cheapest but benefit indirectly: not all direct and indirect employ- master of the recently sold which was always a trou- always been a safe yachting annually. only was there no competi- many items are available to yachting tourists come by, ment in the industry cer- superyacht Maltese Falcon blesome area.” To date destination and our goal is One of the racing rounds tion from other islands but yachts tax-free and the situ- or stay on, boats and many tainly plays a substantial says: “I will not abandon though, the promised CCTV to minimise the chances of of the Superyacht Cup there were fewer visitors. ation will get better when more come for the regattas part in the economy. Antigua as my winter base, cameras surveying the area any incident occurring.” takes place immediately John Duffy, president of the ‘duty free zone’ is insti- and shows, adding to the Drug abuse and the rising instead we will go back and have not been installed. Looking to the future, Mr after the show. the Antigua & Barbuda gated.” numbers needing shoreside incidence of petty crime is a support the local commu- Superyacht owners have Duffy of the Antigua & Bar- Antigua Race Week began Marine Association, has The shoreside businesses services. problem for tourism nity and the companies that also, in some cases, decided buda Marine Association as an informal race in April worked with government to that attract superyachts to Direct and indirect though. are based there.” to direct their vessels away asks: “What will happen for classic charter yachts to ensured practices are the island, offering all employment in the marine The fatal shooting in Jan- Will Kaye, captain of the from the island. next season?” celebrate the end of the updated with simplified forms of marine service, industry is difficult to esti- uary of a young Australian, motor yacht Big Aron says: Neil Taylor, owner of the He answers his own ques- Caribbean season. immigration forms and from maintenance to yacht mate because many busi- Drew Gollan, captain of the “The reality is that it 90m modern classic super- tion saying: “As yet we Now it has been split into more relaxed customs pro- shipping and delivery, are nesses serve other sectors 50m sailing yacht Perseus, needed something as drastic yacht Nero says: “We are don’t know. Much will two world famous events: cedures. almost exclusively owned and could be said to work was a new low and dam- as this murder to happen unlikely to visit Antigua depend on how many the elegant Classic Yacht He says: “Both the Asso- and run by expatriates. on the margins of yachting aged Antigua’s reputation. for the Antiguan govern- this winter as we currently yachts book in for the Char- Regatta and the more exu- ciation and the Ministry of Direct employment of tourism. His death shook local and ment to sit up, notice and have other plans although ter Yacht Show in Decem- berant Sailing Week. Tourism are working to locals in the marine sector But because the spend per yachting communities take serious action. these may yet change. ber. For years it was not all smooth the path and cor- is relatively small but many head for yachting tourists is alike. Some captains vowed “From what I have heard “These new plans are not “So far, 67 have booked in plain sailing for super- rect some of the erroneous locally-owned businesses, several times that of hotel to boycott the island and they have gone a long way as a direct result of the inci- which is about 55 per cent yachts visiting the island. impressions formed over from hotels, restaurants visitors and up to many did, but most stayed or to addressing the security dent last winter.” of the usual total and about Many bureaucratic proce- recent years that Antigua is and taxi companies, to gift hundreds of times greater have returned. situation especially around Nero had left Antigua the par for this time of year.” Where innovative concepts first see the light of day

TECHNOLOGY Entertainment plier of audio-visual systems for Lauderdale, Florida, found its product transmits the position radar transmitters for the security devices in conjunction The global economic situation large production boats and superyacht clients were looking of a vessel to other boats in the majority of users. These trans- with a Finnish laser company. Superyachting often has affected everyone. Even superyachts. for more reliable and affordable vicinity. mitters aim to provide superior The disruptive laser system’s pioneers systems that those wealthy enough to afford The company has developed communication. 3D forward-looking sonar is detection and resolution. effective range varies from 1m superyachts are thinking twice software that should next year So the group developed another area where companies to the horizon, depending on the then filter down to before investing in a new vessel. bring HDTV to vessels. It will MCG-101, an Iridium single- are pushing the boundaries of Engineering security level required. everyday use, writes As a result, they are more likely enable Blu-ray discs to be ripped channel satellite communication technology. Devices that show One innovation that has Using a laser alongside power- to upgrade and refit. and stored on servers, allowing system based on IP technology. underwater obstacles are useful changed the superyacht world is ful, bullet-proof, waterproof, Michael Howorth News feeds, streaming TV, the creation of HD video librar- This provides a telephone, when yachts are trying to the invention of “ZeroSpeed” thermal imaging cameras, the podcasts, YouTube, Twitter, and ies that can be streamed to mul- internet portal, GPS device, pass through a reef or find stabilisation by Quantum watchkeeper can fire the device Skype are sought by those who tiple locations on board. SMS, RS232 and CAN device an obstruction-free spot to Marine Engineering of Fort and make those on a threaten- Superyachting is to sailing what live aboard superyachts. This Advanced New Technologies anchor. Lauderdale, Florida. ing vessel momentarily nau- Grand Prix Formula One is to often requires an upgrade or has developed a 3D cinema for Among the leaders in the field This much mimicked dual- seous and disorientated. motoring. It is at the top end of refit of the audio-visual/IT larger yachts. Devices that show is FarSounder, whose customers purpose technology permits The closer the device the each activity that technology is system. underwater obstacles are mainly military. The com- yachts to be stabilised both harsher the outcome, but it pioneered and then filters down The refit business is one of Communication pany’s long-term aim is to reach when under way and at anchor. causes no long-term damage. to everyday use. tight schedules, having to make Many superyachts operate as in 3D are useful a range of one to two miles at a The company has continued Unlike other disruptive laser Superyacht owners have the use of the limited downtime businesses and are used by busi- when trying to pass speed of 35 knots. to upgrade its patented variable devices, wearing sunglasses purchasing power and tendency when the yacht is not in use. nesspeople, so there is a demand At the moment, there is an geometry MagLift rotary sys- offers no protection. to one-up-manship that drives Quick-to-implement systems for reliable communications. through a reef or find Extended Range product availa- tem. This is based on the physi- Underwater security is an them to seek out newer and bet- that use existing cabling infra- WaveCall from the Oslo-based ble with a range of 800m to cal effect noted by the German increasing requirement in both ter onboard technology. structure will therefore be Marlink provides, reliable inter- a spot to anchor 1,000m at a speed of 25 knots. chemist and physicist Heinrich the private and state sectors. The high-tech systems used favoured, for example an Inter- net and voice services. The standard product in use has Gustav Magnus (1802–1870), FarSounder is ready to intro- for navigation, communications net Protocol (IP) system. Digital Yacht of the UK has in one package, weighing less a range of 440m, so this is a big whereby a spinning object in a duce a 360° diver detection sys- and entertainment make up a Despite the economic climate, created a selection of long-range than 2 kilos. increase. fluid creates a whirlpool around tem to complement a recently large part of the cost of a Linn Products, the maker of access devices that allow super- Inmarsat has launched the Radar target detection has itself and experiences a force developed diver localisation superyacht. music and home cinema sys- yachts to hook into land marina FleetBroadband 150, a mini ver- developed rapidly in the past perpendicular to the line of sonar. Even more money is spent on tems is doing quite well in the internet access points when up sion of the previous FB250, to year, thanks to the introduction motion. All cutting-edge stuff and in such things as security devices, superyacht market. Its Linn DS to five miles offshore. provide voice and high speed of HD digital technology. Now Quantum’s stabilisers can be time many of the systems and stabilisers that ensure the yacht players, for example, access and “Accessing a local wi-fi hot data delivery. the benefits of these systems are folded away when not needed so innovative concepts that first does not roll even when at play back music files securely spot costs $5-$10 a day compared available to more yachts, with reducing drag. see the light of day aboard anchor, and dynamic position- stored in an external network with $10 a minute for satellite Navigation the launch of HD digital superyachts will filter down ing systems that keep yachts storage device. access,” says Nick Heyes, man- Digital Yacht has also found a radomes from suppliers such as Security through the boat building proc- stationary without the need to Lantic Entertainment Systems aging director. niche market for its AIS tech- Raymarine. Compact 4kW Proform Marine has introduced ess to become standard fits on anchor. is another developer and sup- Global Satellite USA of Fort nology on yacht tenders. The domes are the most popular laser technology into yacht yachts in the future. FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 ★ 7 Yachts Ways to shrink your hullprint

ENVIRONMENTAL SYSTEMS humans’ footprint on the the turbine and the vessel, these that the amount of power gener- hundred to several thousand planet”. may generate enough power to ated by PV panels may be small pounds. Fiona Harvey As leader of BT Team Ellen, a run the lighting and some or all relative to the surface area. A Even if oil prices are high, it considers the options group of sailors who take part of the electronics, though there panel attached to a backpack would take years to recoup the in ocean races and other yacht- should always be a back-up and left in strong sunlight for a outlay in savings on fuel, so for reducing power ing challenges, she has ensured source of power in case of calm couple of hours generally cre- increasing a vessel’s self- consumption on board they are, “a team who care or light winds. ates enough to recharge a sufficiency and decreasing its about the state of the planet Solar panels can also easily be mobile phone. carbon footprint by means of they race around, and are striv- fitted – a small panel on a pole Energy generation from both smaller, cheaper measures are here are few greener ing to live and work in more near the stern is a common types of panel is intermittent likely to be much more attrac- modes of travel than a sustainable ways”. sight, but larger panels can be and unpredictable. Although the tive to most sailors. Tboat under canvas. Har- With that example in mind, fitted all over boats, even on sun can be guaranteed to rise in You can cut down on power nessing the wind pro- owners of sail-powered yachts decks and cabin roofs, as these the morning, the strength of the use at a stroke by installing duces enough energy to haul might like to pat themselves on sunlight will determine the LED lighting. vast and heavy vessels across the back about the environmen- amount of energy created. The Berret Racoupeau Yacht the seas and even a trip in a tal credentials of their chosen Modern vessels have Storing power for later use is Design team has developed a light pleasure craft recalls the pursuit. a wealth of gadgetry essential therefore. Batteries are boat with an interior entirely lit age when sail ruled the world’s It is nonpolluting, brings them standard issue for yachts, but a by LEDs, although the 40 sq m trade routes without a whiff of in close contact with the natural that can quickly bigger and more efficient one of solar panels integrated into greenhouse gas emissions. world and is a great example of increase greenhouse might be needed if a yacht is to the structure and two hydro Little wonder then that Dame “green” power. use renewable energy, rather electric generators add some- Ellen MacArthur, one of the However it is worth noting gas emissions than relying on the diesel what to the cost. world’s most celebrated sailors, that yacht sailing has not quite engine. Seriously environmentally is now a champion of the green achieved “carbon-neutral” sta- Valence Technology of the US, minded sailors can also invest cause. tus. days they can be tough enough for instance, makes lithium in systems to harvest rainwater With sponsorship from BT, Modern vessels have a wealth to withstand crew clambering batteries, including one that and desalinate seawater and can the telecoms company, she is of gadgetry that can quickly over them. provides energy storage for the install waste compacting now travelling the world to talk rack up greenhouse gas emis- There are even flexible panels 190 ft superyacht, Ethereal, machines. about environmental sustaina- sions. In response, many owners that can be attached nearly any- owned by computing billionaire Finally, solar power is an bility, and has improved her are trying to make their yachts where, or panels incorporated in Bill Joy ( see story below ). expensive option to run gadgets. onshore carbon footprint by greener. fabric that can be rolled up or There are also hydroelectric What about old-fashioned clock- building her own eco-house Renewable energy is the most used as awnings. systems that generate power work as an alternative? complete with solar panels and obvious first step. There are two types of solar while under sail, although they Modern clockwork technology wood-burning stove. As well as using the wind for panel: photovoltaic units, which produce some drag. allows you to use elbow grease She lists her new goal as “to propulsion, yachts can be fitted turn sunlight directly into elec- Depending on the amount of in the first instance, to power be an agent for change, helping with small wind turbines that tricity; and solar thermal mod- low carbon power you wish to mobile phone chargers, radios, big businesses find practical and generate electricity for onboard els, which heat water. generate, most of these technol- torches and other small gadgets. effective ways to help reduce use. Depending on the size of Both are useful, but beware ogies will cost from several Sailing can be hard work. Current ideas: solar panels are easily to fit Alamy

Ethereal sets a permanent marker

From the outside, the 190ft electric shaft motor, the ketch Ethereal, owned by batteries can drive Ethereal Sun Microsystems almost silently at 11 knots co-founder Bill Joy and his for two hours, with all the wife Shannon, looks like a onboard systems operating, fairly regular superyacht. from sewage plant and Its line is modest by laundry to push button sail today’s standards, but management and powerful beneath the conservative communications systems. look lies a story of intense Like phone batteries, the research led by a man lithium cells not only have a determined to find more much longer life than efficient means of propelling conventional batteries, but yachts and supporting their can be fully charged from increasingly complex flat within an hour and onboard systems. there is a massive power to Extraordinarily, Ethereal is weight ratio advantage. Mr Joy’s first yacht and he Charging can be achieved commissioned one of the either by running the main world’s best supersailing propulsion engines and yacht builders Royal using the shaft motors as Huisman in the Netherlands generators or by firing up to construct it. one of two main generators. In naval architect Ron This hybrid drive train is Holland, he chose a safe low on fuel use and pair of hands to design a emissions, an achievement vessel based on a proven that is further enhanced by formula, so that he could Mr Joy’s work on insulation concentrate his research on and an almost obsessive a hybrid propulsion system, determination to install LED better insulation and a host lighting (there are more of energy-saving than 300 lamps onboard) improvements. which is dimmable and Taken as a whole, they does not emit the harsh reduce the yacht’s power light for which it used to be consumption and thus notorious. emissions by an estimated Most importantly it 25 per cent. doesn’t waste energy like a traditional bulb, which turns 90 per cent of the energy Fully charged, used to heat, with only 10 lithium cell per cent ending up as light. With LED the figures are batteries can more or less reversed. drive it almost The combination of reducing heat and building silently at 11 knots in highly effective insulation – the sort used in for two hours refrigerated lorries – means that one of the biggest Mr Joy started the power draws on a yacht – Ethereal project six years air conditioning – is sharply ago by questioning almost reduced. all the received wisdom on In turn this means that energy consumption on the twin generators, instead board a yacht. He, along of being 140kW – normal with Al Gore, the former US for a yacht of this size – vice-president and are rated at just 90kW, environmental campaigner, which represents a further is a partner at US venture significant saving in fuel capital firm, Kleiner Perkins consumption and emissions. Caufield and Byers. Mr Joy’s scientific career He quickly had to included writing part of the abandon the idea of fuel or computer program the solar cells, the latter set in iPhone is based on, so sailcloth, because neither unsurprisingly the entire was advanced enough to yacht can not only be meet the challenges set by controlled but also such a big yacht. programmed using tiny He reckons it will be 10 touch screens installed years before fuel cells are throughout. By fine-tuning up to the task, but he has systems in this way, Mr Joy designed Ethereal so it can can further reduce waste. be retro-fitted. One thing he He admits he hasn’t didn’t want was a white achieved all he set out to elephant. and that some of the Most yachts need an technology has already internal combustion engine been matched and to drive them but Ethereal, overtaken, but he has although fitted with twin certainly laid down a 714hp Caterpillar diesels, marker for the can operate in what Mr Joy superyachting industry, refers to as “stealth” mode, which until now has been using a huge bank of notoriously wasteful when it lithium ion phosphate comes to energy. batteries. Fully charged, via an David Glenn

Good-looking as well as green: Ethereal at anchor 8 ★ FINANCIAL TIMES WEDNESDAY SEPTEMBER 23 2009 Yachts Sail power so great it has a ‘whoa!’ factor

AMERICA’S CUP helmsman, says: “I was lucky to be included because in 2003 I was not In spite of legal wrangling, part of the process. In 2004 it was the teams are looking unusual. Suddenly I was on a defend- ing team, having not won it. I was forward to the race, asked to come along and help drive. I writes Simon Greaves just did my job. “The management process of our group at provided the oppor- he mission, to win the Amer- tunity and gave us the tools to do it. ica’s Cup in the Gulf next Feb- We have different tools this year in a Truary – the 33rd edition of different race. The distances have tri- sailing’s oldest and most pres- pled and the boats are substantially tigious trophy – pits two specially larger which results in much more designed multihull boats – the Swiss power. The close battling component team’s Alinghi 5 catamaran and the is fading and we are going instead to BMW-Oracle USA against see two thoroughbreds allowed to run each other in a best-of-three long-dis- their hardest. tance race contest. “We have been ripping past other Previous competitions have boats. There is an absolute power fac- involved about 10 challengers but this tor, when you pass another boat its time Alinghi is defending the title like being on a TGV. Someone asked against BMW-Oracle alone following if there was a wow factor. I say is not repeated New York Supreme Court so much a ‘weee’ experience as a challenges from BMW-Oracle over the ‘whoa’ feeling.” rules. These have centred on the Rolf Vrolijk, chief designer, says his design and dimensions of the boats, team has worked from scratch on the and the timing and venue. catamaran with no reference to any This month, Fred Meyer, vice-com- modore of Alinghi’s home club, the Société Nautique de Genève, com- ‘We have two boats with plained: “This is the sixth time they state-of-the-art technology have taken the defendant to court. It is possible that Larry Ellison [the soft- and design that after two ware billionaire who heads the BMW- years of legal processes Oracle Racing team] continues to revert to the courts to draw attention have been doing away from the fact that their boat does not meet the dimensions as per anything else but sport. the certificate of challenge.” So let’s just go and race!’ For their part, the BMW-Oracle syn- dicate, based in San Francisco, say they went back to court this month to boat that exists, particularly with stop what they claim is unfair manip- regard to the loads and forces pre- ulation of the rules by the defending dicted. Most critical was its weight to champions. Their spokesman Tom sail area and power data. Ehman says the syndicate took its He says the differences between the latest court action because the Swiss performance of the two boats is not as have issued a measurement rule that, great as some think. “If you reduce if allowed to stand, would disqualify one appendage’s exposure, say a rud- the US trimaran. “It’s just another der, by say 5 per cent, it makes a step in our fight for fair and competi- High expectations: the Alinghi 5 catamaran is airlifted across the Alps to its temporary Italian training base in Genoa Guido Trombetta/Alinghi difference over the whole race of over tive rules,” he says. 1,000 metres, but in speed terms less In spite of uncertainty about three times the speed of the wind. like the Ali-Forman boxing match immense loads, nothing major has Team strategist Murray Jones, often than one-hundredth of a knot.” whether the race will even take place For Paco Lattore, Alinghi’s head of With less pre-race jostling than in failed. seen climbing the Alinghi mast, says: He says Alinghi 5 is the fastest boat because of legal wrangles, Alinghi is communications and spokesman for 2007, there will be a 40-mile race (20 “The America’s Cup is the pinnacle “The boat is much lighter than any he has built. But alongside the pressing on with training and testing. Ernesto Berterelli, the team’s owner miles upwind and 20 down), then a of this project-structured sport, with boat this size before. We are pushing advanced technology there are old- In the dock, the dimensions alone who will again sail in the crew of 14 second on a triangular course of three so many people involved. It’s expen- the limits so there is a lot of develop- fashioned touches, such as the hand- are staggering: a 90ft craft with a taut to 16, the race cannot come soon legs of 13 miles, followed by a decider, sive with a lot of resources and tech- ment to come. It will be going a lot drawn pencil sketches Dirk Kramers, trampoline deck the size of two tennis enough. “We have two boats with if required, of another 40 miles. nology needed to win. This race is a faster than it is now and we do not senior structural engineer, uses to courts. It contains three times more state-of-the-art technology and design Skipper says the shake-up for the cup but the cup is feel vulnerable in any area. illustrate modifications or the black carbon fibre than the 2007 winning that after two years of legal processes catamaran’s performance “will be of resilient and it will go on.” “In the future we will see more electrical tape fastened to a spreader. monohull, it has one reaching sail of had been doing anything else but critical interest to scientists, design- “But our design people have come multi–hull racing at this level. It is Sailors are natural improvisers. more than 1,000sq m and a mast the sport. So let’s just go and race! ers and sailors”. up with an exciting, fast package very strong in France where it has Both the boats that go head-to-head height of a 20-storey building. Its sail “Since this contest was unveiled the The boat will use hydraulics to which is performing close to our captured the imagination of the sail- next year will make a mark as his- suit, with a mainsail, jib and one or interest has been massive. The con- power winches, which partly allows expectations. We will make changes ing community. Now our team, too, toric as the 150-year-old schooner two , is designed to make cept of a one-on-one showdown is very for the smaller crew. Although sheets to the boat. There is another mast, has embraced the challenge.” America, the first boat to win the cup this ultra-light boat travel at up to unusual. It could well be remembered have broken in training under the slightly taller, coming.” Ed Baird, the 2007 cup-winning in 1851. An office window with a pleasantly varied view

SKIPPER PROFILE running and do not even much the top end of the tering annually. That has PHIL STEVENS have much time to spare for service industry.” allowed Mr Stevens to see driving the vessel: a skipper A skipper is also responsi- the ups and downs of the Victor Mallet is a bureaucrat, finance ble for adhering to the rules market in recent years, first meets the captain director, hotel manager, of the International Safety at the helm of the old, 43m security officer, contract Management (ISM) Code, Slipstream (since renamed of 60 metre luxury negotiator, diplomat and which covers safety and Silver Dream) and now with vessel, Slipstream navigator rolled into one. pollution control, and the the new, 60m incarnation “Between 90 and 95 per International Ship and Port completed at a northern cent of it is administration Facility Security (ISPS) French shipyard only in Fifteen years ago, Phil Ste- and paperwork now, and Code, the anti-terrorism May this year. vens decided he was bored only about 5 per cent actual measures introduced after Back in late 2001 and with his “humdrum” desk chart work,” says the the 9/11 attacks in 2001. early 2002, Caribbean job as a contract manager 43-year-old Mr Stevens, who More prosaically, a cap- waters were exceptionally for a security equipment has worked for Mr Cowin quiet after 9/11, as US cli- company in the landlocked for more than eight years. ents stayed closer to home. English county of Shrop- “I’m pretty much an admin- ‘You’re looking Thereafter, the superyacht shire. istrator.” after €50m-€60m market experienced a He and his partner – now That is not to say the job period of frenzied growth, his wife – travelled abroad lacks challenges. All of equipment, 15 as oil tycoons from Russia and found jobs as deckhand superyacht skippers know, crew and 12 guests. and the Middle East vied and housekeeper on Arctic for example, that guests with US and European fin- P, a 90m salvage tug con- and their millionaire-sized Wrong decisions anciers and entrepreneurs verted into a luxury yacht egos can be extremely to buy and charter luxury and owned by the late Aus- demanding. can be expensive yachts. tralian media tycoon Kerry The kind of person who or dangerous’ In late 2008, the collapse Packer. can afford to pay €343,000 of Lehman Brothers and the “Suddenly it dawned on plus food and fuel for a global financial crisis me: ‘I quite enjoy this life’,” week’s boat charter – those tain has to ensure the ves- brought the expansion to a Mr Stevens says from Saint- are Slipstream’s rates – sel in his charge has a safe shuddering halt. After years Tropez in the south of does not like being told that and pleasant anchorage or a of price increases, holiday- France, the latest glamor- a particular destination is marina berth for the night, makers started negotiating ous harbour where his impossible on a particular in an era when berths are discounts and booking at superyacht work has taken day or that some culinary scarce and superyachts ever the last minute, in the hunt him. delicacy is unobtainable. more numerous. for better deals. After years of working his “It’s difficult, but I do Mr Cowin likes his luxury “It’s not just the crisis, way up through the ranks love my job. I really enjoy yachts to pay their way as it’s a reality check,” says and taking examinations, what I do,” says the enthu- far as possible, with as Mr Stevens. “It had to hap- he is now the captain of siastic Mr Stevens. “It’s so many as 20 weeks of char- pen eventually.” Slipstream, a 60m luxury But optimism is trickling yacht and one of the back into the superyacht world’s largest. world and even in the With determination and a depths of a financial crisis, little luck Mr Stevens has there is a vessel to be man- landed what many whey- aged and – in the case of faced office workers would Slipstream – up to 27 lives regard as the perfect job. to be looked after on board. His boss – Jack Cowin, a Superyacht skippers typi- Canadian-born, multi-mil- cally earn salaries of lionaire businessman who €12,000-€20,000 a month, so owns Hungry Jack’s, the they are not cheap, but the Australian fast food chain – best are experienced, well- is congenial; sunshine is trained and must be ready almost guaranteed, as the to shoulder the same kinds crew take the motor-yacht of responsibilities as an air- on its seasonal rotations line pilot. between the Mediterranean “You’re looking after and the Caribbean, with the €50m-€60m of equipment, 15 occasional foray into Asian crew and 12 guests,” says waters; the passengers are Mr Stevens. “Your decisions wealthy and usually inter- can be very expensive or esting; and the pay is not dangerous if you get them bad either. wrong.” Superyacht skippers tend A berth in Saint-Tropez, to spend little time sunbath- however, seems a long way ing and many months of from the desk he left behind the year away from his or 15 years ago. her family. They are crucial “Now,” he says, “I look members of the network of out of my office window at suppliers and service per- a different location each sonnel that keeps a boat Top sea dog: ‘It’s difficult, but I love my job’ Andrew Winch day.”