Building Big Beautiful Boats

Superyachts are more than just play things for the world's rich and famous - they're also very big business for New Zealand's marine industry. And it's a sector of the market in which we punch well above our weight, as Suzanne McFadgen reports.

Russian billionaire Roman Abramovich, owner of the Chelsea Football Club, had not one, but two, new superyachts built last year.
One was Luna, a 115-metre expedition yacht with two helipads and a concealed swimming pool. This Northern Hemisphere summer, Luna infuriated some residents of Venice by blocking their sun. The other, Eclipse, is - at this stage - the world's largest private yacht at 163 metres. It comes equipped with a mini submarine, three launches, two helicopters and a disco hall, at a rumoured cost of US$1.1 billion. The Russian oligarch supposedly had it fitted with a German missile defence system, and an "anti-paparazzi shield" to overexpose uninvited photos of guests.

Even in times of global economic uncertainty, the richest of the rich are not shying away from indulging in extravagant luxuries. High-flying owners of grandiose boats include actor Johnny Depp, Formula One's Nelson Piquet, the Emir of Dubai and of course Silicon Valley power players like Jim Clark and Paul Allen.
Larry Ellison, though, is downsizing. The America's Cup holder and Oracle founder has just taken ownership of Musashi, an 88-metre steel-hulled motoryacht built to his desires by a boatyard in the Netherlands. But it's not a sign of financial sagacity. Behemoths like Ellison's former floating palace, the 138-metre Rising Sun, are too big to be tied up anywhere other than commercial docks, even in the world's most cultured ports.

Here in New Zealand, the superyacht industry is returning to better health after hitting rough seas a few years ago. In the year to September 2009, local boatbuilders did not secure a single order for a new superyacht; in the following 14 months, however, according to NZ Marine executive director Peter Busfield, 10 new boats were ordered.
Although this year is less fizzy, as European boatbuilders become more competitive and concerns about the global economy have once again become front of mind, our major superyacht yards are hunkering down to fulfill orders. And the superyacht sector is still generating the biggest export sales in our marine industry, worth $198 million last year.
West Auckland superyacht specialists Alloy Yachts can vouch for a change in the tide. "It was deathly quiet for us in late 2008, but currently we're building four boats, three of which will be launched next year and we've just started a 56-metre ketch for a repeat customer which will be launched in 2013," says Linda Berry, Alloy's marketing manager.
"But we're not relaxing because we have boats in build. We are continuing to pursue orders actively and we're getting a few more enquiries. I like to think of it as being 'steady as she goes'."

In April this year, Alloy completed the exquisite all-aluminium 67-metre ketch, Vertigo. Media scuttlebutt has had it belonging to beleaguered media mogul Rupert Murdoch, business magnate Warren Buffett and even Leonardo DiCaprio - but the real owner's identity remains a mystery and - as with many of those big boats - a closely guarded secret. The largest luxury sailing yacht built in the Southern Hemisphere - and the seventh largest on the planet - Vertigo has a swimming pool, room for three 6-metre tenders and an onboard classroom for when the children are on board.
When a yard like Alloy scores a contract of this magnitude, it has lucrative spin-offs further down the track for other Kiwi marine companies, like Southern Spars, Doyle Sails, North Sails and Manson Anchors. Equipment suppliers such as Marine Xpress, with its marine stainless steel accessories, and Yacht Lifeline, which supplies medical kits and a 24/7 medical assist service to the world's luxury yacht fleets, can also benefit.
At its waterfront base in Mt Wellington, McMullen & Wing, the boatyard famous for creating Team New Zealand's 1995 America's Cup winner NZL32, is currently building Star Fish. To be delivered in 2013, the 50-metre long steel-hulled motor yacht will have six staterooms, an infused-stone deck and extra room for a seaplane or submarine. Managing director David Porter sees signs that the superyacht market is recovering, but cautions that it is still not "boom time".

New Zealand's reputation for building beautiful big boats is still our strongest selling point. The sister ship to Star Fish, the 45-metre Big Fish, was among those honoured at this year's World Superyacht Awards - the Oscars of the superyacht sector. Fitzroy Yachts' Zefira also picked up two awards in the best yacht over 45 metres and sailing yacht of the year categories; while Alloy had two class champions in Imagine II and Kokomo (recipient of a special award for technical achievement).

Coaxing billionaires - or equally importantly their superyacht captains - to come south is key to keeping the industry ticking over. At this year's Auckland International Boat Show, pushed out to September to coincide with the start of the Rugby World Cup, the world's first Superyacht Captains' Forum drew 120 captains and related industry specialists from around the globe. It was a big coup, putting the spotlight on New Zealand and the South Pacific as a superyacht cruising and refit destination.
"The captain has a major influence on where refits are done, or where the owners decide their next superyacht will be built," says Peter Busfield. He also hopes the Millennium Cup in February - a race for superyachts from Auckland to Kawau Island first held during the 2000 America's Cup - will become an annual fixture on the superyacht cruising calendar, enticing 30 to 40 big boats here a year.

Auckland as a refit destination is the next big push by the New Zealand marine industry. You only have to see how much a superyacht overhaul is worth to our economy to understand why. A marine industry analysis of a six-month refit on a 40-metre superyacht in Auckland revealed that $5 million went to the marine industry, and another $1 million to tourism. An indication of the big spending nature of this sector of the market came when, during the refit, the yacht owners flew to Milford Sound and new tramping boots were flown in by helicopter from Auckland when the originals didn't fit.

The 92-metre Mayan Queen V, owned by a Mexican billionaire businessman, arrived in Auckland for the Rugby World Cup, and will also have some servicing done before heading back to Europe. Along with a number of other superyachts it has been parked up at the new Silo Park superyacht marina at Wynyard Quarter. With a worldwide shortage of superyacht berthage, Auckland's much heralded central city redevelopment of this formerly neglected waterfront precinct has included the provision of six big boat berths. Further development of this facility is planned which will provide more berths and allow up to three superyachts to be pulled up on the hard for refits. Meanwhile, the deep-water Yard 37 at Hobsonville, 12 years in the planning, will become a haven for new builds.
"If you provide the facilities, the market will come," Busfield says. "Where New Zealand has a key advantage is that it's a beautiful country, with easy access to great golfing, wine, beaches and fantastic, sheltered cruising waters - and we have nice, friendly people. Billionaires like to come and explore here, and superyacht captains move their families down here. It's great for our economy all-round."