FT SPECIAL REPORT Yachts & Marinas Thursday June 20 2013 www.ft.com/reports | twitter.com/ftreports Highs and Inside » Weighing anchors Glamour marinas lows reflect versus their dowdier rivals Page 2 tough time Splashing the cash The state of yacht finance, plus economical design for sailing Page 2 India gets under way Dazzling new superyacht launches cannot Setting sail with disguise a difficult market or sadness at a ‘early adopters’ off Mumbai high-profile tragedy, writes Richard Donkin The Artemis Racing America’s Cup team training off San Francisco before Andrew Simpson’s fatal accident America’s Cup Page 3 ometimes it takes a tragedy criticised by some who fear that the designed motor yachts afloat. Brokers seem more sanguine. builder, Lurssen. At 180m, it is the to remind those who sink drive to pursue ever-better perform- New technology and design com- “When I was a child I saw the big world’s largest superyacht, taking The case for millions into sport and lei- ance is overtaking the skills of the prise the lifeblood of yachting. But boats rotting away on the Hamble [in over from Roman Abramovich’s 163m sure that ambition can out- best crews. But pioneering work con- the multibillion dollar business that Hampshire, England] and people said Eclipse. With engines that deliver Britannia II grow the skills, invention tinues to push the limits of design and ranges from weekend sailors in din- you’d never see them again. But now 94,000hp and a top speed of 30 knots, Opinion: why Sand enterprise of those who work at performance. Last November, Paul ghies to billionaires in floating pal- we’re seeing yachts three times the it is a throwback to the boom time of the sharp end of their game. The Larsen smashed the world speed aces is under pressure because of the size of those,” says Nicholas Edmis- the early 2000s. Britain needs a death last month of the British Olym- record, taking Vestas Sailrocket 2 to financial crisis. The three and four- ton, chairman and managing partner Up to now, much of the industry has new state yacht pic gold medallist Andrew Simpson an average of 75mph over 500m. year builds that have seen many boat- of Edmiston, the yacht broker. survived by either living off existing has brought sadness to the prepara- The thirst for speed and competition yards through the recession are com- “But as an industry we’re having to orders, reducing capacity, taking on Page 4 tions for the America’s Cup in July. has entered the superyacht market plete and builders are looking for new look farther afield for new business,” refit work, or shifting ownership in a The America’s Cup is at the pinna- with the rise of design-specific regat- customers. he says. “I’ve just sold a boat to an number of high-profile takeovers. Only cle of sailing, bringing together the tas such as the Perini Navi Cup and “Early in the year I could count on Indonesian, we’re active in Brazil and two weeks ago the FT reported the Boatbuilding best sailors and the most obsessive of the Dubois Cup. Of the 15 100 metre- one hand the number of people we we’ve just taken a big order from planned acquisition of Sunseeker, the business leaders, often those with the plus superyachts being built, four are knew wanting the yachts we build,” Mexico. The US is beginning to wake UK-based motor yacht manufacturer with brio deepest pockets. Add to this the kind sailing yachts. The biggest is the 147m says Burak Akgül, managing director up again but we’re probably not going by China’s Dalian Wanda Group. How Italy’s yards of design flair that is taking sailing White Pearl, under construction by of Perini Navi Group, one of Italy’s to see the activity we saw in the early Takeovers aside, tight margins, a technologies into new and untried ter- Abu Dhabi Mar subsidiary Nobiskrug most respected builders. “In the past 2000s in a hurry.” surplus of cut-price yachts in the are riding out the ritory and the result is a seductive, in Germany. It is reported to two months since St Barths Bucket The harshness of the business cli- second-hand market and a reluct- financial storm costly and dangerous cocktail. have been ordered by Russian busi- [regatta] interest has been building, so mate is only partially masked by daz- ance to spend among some of the The 72ft-long, wing-sailed catama- nessman Andrey Melnichenko, owner we’re optimistic. We need to find cus- zling new launches, such as that Page 4 rans contesting the cup have been of “A”, one of the most radically tomers. It’s the same for everyone.” recently of Azzam by the German Continued on Page 3 2 ★ FINANCIAL TIMES THURSDAY JUNE 20 2013 Yachts & Marinas Mediterranean glamour ports fall behind times Facilities Cheaper locations with modern utilities sell themselves as alternatives to congested berths such as Monaco, says Richard Donkin onaco’s Port Hercules is inferior services to more modern Mr Jones lists four priorities to meet consistently rated as one developments where operators work clients’ needs: location, utilities, staff of the world’s most hard to meet the year-round needs of and security. “Location comes first. Is exclusive berths for lux- boat owners and crews. the marina where people want to be – ury yachts. Yet the Medi- “More often than not, we spend the close to great cruising and in the right Mterranean principality’s port offers most time with captains and crews spot, such as St Tropez in France or limited privacy and its services are ensuring the operational needs of the St Barths in the Caribbean?” surpassed by less flamboyant loca- yachts are met and the crew have the Second, says Mr Jones, are practical tions. The same goes for Marina facilities to make their work enjoya- facilities such as sewage disposal, fuel Grande on Capri and Portofino in ble,” says Kurt Fraser, sales and mar- delivery and power. The big marinas mainland Italy – both a squeeze for keting director of Camper & Nichol- should have the means to provide ade- the big yachts. sons Marinas. quate electricity. What does it take to join the top The needs of boat owners fluctuate This is becoming increasingly league of exclusive superyacht mari- depending on the season and this is important for the biggest yachts. A nas? The answer – unfortunately for reflected in the choice of marina. A pending EU directive will insist on marina developers – is almost always distinction can be made between har- land-based electrical power in port, the things money cannot buy. “It’s all bours that owners will visit when hol- rather than reliance on generators, about location – heritage, history, idaying, and marinas that may be which are often viewed as a nuisance harking back to the 1960s when celeb- used for servicing, fuelling and refits. and pollutant. rities made fishing villages such as Roman Abramovich, the Russian oil Some of the biggest yachts under Capri, Porto Cervo [in Sardinia] and billionaire, for example, uses an unim- construction will use the 6,600 volt High stakes: Monaco offers heritage and history but its services are surpassed by some less famous marinas Richard Donkin St Tropez the places to be seen in,” posing stretch of commercial docks in standard of merchant marine and says Dean Smith, marketing director Barcelona so that he can have his commercial shipping but few marinas of MDL Marinas. yachts serviced in privacy at the offer the appropriate single-cable Jones. “We focus on training and At another marina, a manager waits CCTV and a security plan for major “To build a facility you need to MB92 refit and repair yard. “It’s an power supplies. Port Tarraco on maintaining motivation and morale for one incoming boat with rolls of incidents.” overcome engineering challenges, but unglamorous part of the port but big Spain’s Catalan coast has become the among staff. They're used to dealing turf so that the owner can practise his Newer venues in countries such as you can’t create the glitz and glamour enough to take his superyachts, and first Mediterranean marina to do so. with unusual requests.” golf swing on deck. Croatia and Montenegro offer increas- of Portofino or Monaco on Grand Prix it’s fully secure with commercial- “We have the deep-water draft and A yacht arrived at one of his mari- Security is crucial for yacht owners ingly high standards, often with tax weekend,” he says. “Those places owe grade facilities,” says Mr Smith. access to services that enable us to nas with a damaged vase, he says. “It and marinas. Many superyacht own- benefits and lower berthing costs than so much to their history.” Yacht owners and managers will offer long stays for megayachts,” says wouldn’t have been a big issue, but ers shunned Antigua for years after the established Mediterranean haunts. While glamour, ambience and herit- often negotiate private deals to bring Margarete Kalinowski, Port Tarraco’s the owner’s wife collects works of art the skipper of a 50m yacht was shot Mr Fraser describes some of the age allow the exclusive Italian and their yachts to the most fashionable head of sales and marketing. and this was one of a pair.” The dead when walking through English new developments as “commercial vil- French marinas to charge some of the ports. “It’s really about who you know While different marinas fulfil differ- marina staff arranged a private jet to Harbour in 2009.