Superyacht servicing revenue hinges on Am Cup base decision
by Suzanne McFadden 12 Dec 2017 18:38 PST
13 December 2017
Superyachts will simply stop coming to Auckland if the Government's choice for America's Cup bases goes ahead, say key marine industry leaders.
With a decision due to be made on Thursday, there are just two options left on the table for team bases to be built on the city's waterfront before the 2021 Cup regatta. But the option favoured by David Parker, the Minister with responsibility for the America's Cup, could have a significant impact on the country's $1.7 billion marine business if it's chosen.
Even if the other option – preferred by Cup holders Emirates Team New Zealand – is successful, there still remains an issue of where to berth the invasion of superyachts expected in Auckland between now and the America's Cup.
Around 160 superyachts are predicted to pour into Auckland in the 2020-21 summer; each spending on average $2.7m during their stay, according to a report carried out by NZ Marine, the industry association. It forecasts an injection of $436m into the New Zealand economy from superyacht owners, staff and guests during the Cup period.
Most parties involved in the protracted debate over where to house eight America's Cup teams hope a decision will finally be reached at the Auckland Council's governing body meeting tomorrow. Time is running out to have resource consent lodged for the successful site next month, so infrastructure can be in place by Team NZ's deadline of August 31, 2018. Otherwise the Cup will be raced in Italy.
The Government's preferred spot – the "Wynyard Point" dispersed option – is causing consternation in marine industry circles. The option includes six team bases on vacant sites next to the storage tanks on Wynyard Wharf, and two bases on a piece of land bordering the sea on Beaumont St known as Site 18.
The marine precinct at Site 18 is home to seven marine businesses, including Team NZ's current base. It's a "rough and ready" site - with only gravel underfoot, it could be mistaken as an urban wasteland. But it holds huge importance for the country's marine industry.
It's the only place on Auckland's waterfront where the rigs of superyachts can be lifted out of the boats and laid down for work.
Southern Spars, a world leader in carbon masts booms and rigging for yachts, uses the site year round. But the company's general manager Peter Batcheler says his business will be forced to pack up and relocate offshore if it can no longer operate from Site 18.
"You kill the site, you kill the industry," he says.
"Site 18 is absolutely fundamental to superyacht servicing. Most of these superyachts come halfway around the world, from the Mediterranean and the Caribbean, with the absolute expectancy that if there was anything wrong with their rig, we would have the ability to take it off the boat, lay it down and service it.
"Frankly, if they cottoned on to the fact that the capability to do that had been removed, they literally would not come here. And if superyachts don't come, that throws the maths out for the entire America's Cup campaign."
Duthie Lidgard, managing director of superyacht agency Asia Pacific Superyachts New Zealand, agrees that the loss of Site 18 would have a "huge impact on the sailing and superyacht communities".
"It would seriously affect the number of boats that come down here for a refit. It's the only site in Auckland where rigs can be lifted out – commercial ports are too expensive. Some masts are on the hard for four-five months being worked on."
But more critically, Site 18 has been earmarked for bigger things for the marine industry. The neighbouring Orams Marine has been working with site owners Panuku, the city's regeneration agency, to develop it into a full large-boat service centre. It would have a huge 650 tonne travel lift, able to haul out superyachts, ferries and tugs, and room on land to work on seven boats up to 70 metres long for serious refit and maintenance work.
Peter Busfield, executive director of NZ Marine, says Orams Marine is poised to invest "tens of millions of dollars" into Site 18. "We've been waiting five-six years for this. We need Site 18 to add to the industry and create more jobs," he says.
For the rest of this story click here
For an earlier interview with North Technology President Tom Whidden on the need to preserve superyacht servicing in Auckland click here