Call for
privatisation of graving dock, writes Terry Hutson
TWO LEADING South African ship repair companies, Dorbyl Marine (Durban) and International Marine and Construction (IMAC), last week merged their Durban and Richards Bay operations.
After receiving unconditional approval from the Competition Commission it was immediately announced that the new company would operate under the name Dormac Marine & Engineering.
New managing director Jens Nydahl told FTW that the rise of Korea, China and Taiwan as major forces in international shipbuilding and repair had prompted a worldwide rationalisation of these industries.
Our aim is to provide local and foreign shipowners with a range of ship repair services which can successfully compete with these so-called Asian Tigers, he said.
The consolidation is to take place at Dorbyl's Bayhead yard, where it is anticipated that increased utilisation of existing facilities will provide the new venture with substantial improvements in economies of scale in its operations. Although the new venture's activities will be primarily focused on the ports of Durban and Richards Bay, Nydahl said there was a possibility of expanding operations to other ports in the future.
The new company is headed up by Jens Nydahl, Louis Gontier and Raymond Waldeck, who will oversee a multi-million rand modernisation programme of returning the two ship building slipways and ancillary facilities to operational standards.
Nydahl told FTW that the merger had been on the drawing boards for months. We made use of the opportunity at the recent Posidonia trade fair in Greece to communicate with both companies' foreign customers and the news was positively accepted. Over the coming months we will undertake an extensive international marketing drive to attract shipowners to take advantage of our services for scheduled dry-docking in addition to regular repairs.
Nydahl made clear his concerns over the continued ownership and operation of Portnet's graving dock in Durban, which he said was built in the late 1920s.
We repeat our call for its privatisation. Most role players in this industry agree that a substantial amount of capital needs to be reinvested in these facilities to bring them back to competitive standards. It's my view that this and other Portnet dry docks should be leased out to private owners who would be willing to provide the required amount.
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