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Shipping Supplement

This week's news by PANORAMA newsweekly, Gibraltar

20th December 1999

As usual, PANORAMA will not be published during the festive season. Our online service will be back on January 11. Season's greetings to all

Speculation about an election intensifies

GOVERNOR LEAVING IN MARCH

EXCLUSIVE - PANORAMIC VIEW by JOE GARCIA

The Governor Sir Richard Luce ends his tour of duty in March, PANORAMA reveals. We can also disclose that a replacement has now been found.

When Sir Richard arrived in Gibraltar, he became the Rock’s first civilian governor. He had been a junior Foreign Office minister at the time of the Falklands crisis, when he resigned. His appointment as Gibraltar governor gave rise to grave concern here given the Falklands episode.

Unlike the Falklands, whose constitution is more colonial in nature than Gibraltar's, Sir Richard set foot on what is literally a political minefield - every step, every move, is subject to microscopic examination by a lively, politically-minded society where Chief Ministers work beyond the parameters set by the Constitution.

Increasingly, Sir Richard has found less room to manoeuvre which has been frustrating for a man with a political and not a military background. He has essentially adopted a monarchical role, at times thinking that he is here to voice and support the views of the elected Government for which he has been chastised by the opposition, accusing him of thinking he is still an active politician when he should, as Governor, steer clear of party politics.

However, his political upbringing has made him more outspoken at times, such as making strong public manifestations during the fishing dispute and the ensuing frontier fracas.

NEW GOVERNOR SELECTED

We reported exclusively, last July, after a visit to London that the Foreign Office were actively engaged in searching for a new Governor. That process has now ended and a new Governor has been chosen.

The identity of the new incumbent has not yet been released and it is not clear if it is another civilian or if there is to be a return to a military governor, which the Foreign Office might deem to be a retrograde step. The military lobby has been putting pressure for a military man to get the job.

Shipping Registry gets cruise boost

Two new major luxury cruise liners have been registered on the Gibraltar Shipping Register. They are the "R Three" and the "R Four" operated by Renaissance Cruises, whose "R Two" is a regular caller at Gibraltar.

Renaissance cruises looked at several reputable ship registers before deciding upon the Gibraltar Register.

Commenting on this event, Mr. Joe Holliday, Minister for Tourism and Transport, said: "Renaissance cruises is a leading cruising company. Their choice of Gibraltar for these two major ships in their fleet is an important endorsement of our Shipping Register which will attract further quality business from Renaissance and others."

If PANORAMA were Father Christmas - the gifts we would give

TO sports minister Ernest Britto: Actor of the Year award.

To the Commi-ssioner of Police Alan Castree: A long-overdue Watchdog Committee.

TO GONHS: An ape.

TO the Government: A pot of white paint for that whiter-than-white façade.

TO Housing Minister Hubert Corby: A crash course on How to Build Houses.

TO the Self-Determination Group: Determination.

TO tourism minister Joe Holliday: A calculator to count cruise passengers, with the compliments of Dr. Garcia.

TO Liberal leader Dr. Joseph Garcia: A Mediterranean cruise, courtesy of Mr. Holliday.

TO the Governor Sir Richard Luce: A retirement pension.

TO the UN Committee of 24: A hearing aid for each member, as they have failed to hear our message since the 1960s.

TO Chief Minister Peter Caruana: A modern pair of spectacles to improve his image for the elections.

TO Chief Justice Derek Schofield: The Latimer House guidelines.

TO health minister Keith Azopardi: An office in St. Bernard’s Hospital.

TO the Bishop Mgr Charles Caruana: A Heavenly-sent TV station.

TO the Voice of Gibraltar: Members.

TO Opposition leader Joe Bossano: The top-selling record "We're in This Together", sung jointly with you-know-who.

TO minister of education Bernard Linares: A university, anywhere!

TO Govt media director Francis Cantos: A coconut.

TO employment minister Jaime Netto: A job.

TO the Opposition: A part in the old-time 'Wakey, Wakey' show

TO Spanish foreign minister Abel Matutes: Lead role in the Christmas pantomime 'Alice in Wonderland'.

TO Attorney General Richard Rhoda: A Government quarter.

TO GBC: A piggy bank.

TO finance centre minister Peter Montegriffo: The post-box that never was.

TO foreign secretary Robin Cook: A copy of Article 227(4) of the Treaty of Rome, as a constant reminder of Gibraltar’s European rights.

TO Gibraltar: Decolonisation.

Casemates tendering gets going

Government envisages Casemates Square as an open, pedestrianised area that will provide a focal point for recreation focusing primarily on high quality indoor/ outdoor restaurant/ cafes and shopping experience. The square will also house the Gibraltar Museum, the main Tourist Information Office and an art exhibition gallery, said the Government as tendering for the development was launched.

Shops and restaurants must be fitted out and furnished to high standards that will require Government approval.

The project comprises the Casemates Barrack Block and the ground floor of the ex Health Centre building (which will be renamed).

How others see us

Extract from Roving Eye's article

I had a most interesting chat with a visitor to Gibraltar and I was delighted to hear the many nice things he had to say about us. He also told me the things he did not particularly like and I of course had to agree that all was not as perfect as all of us would like.

He commented that among the things he found most distasteful is Spain was the fact that all guards, police and even security men seemed to be armed to the teeth. Though we in Gibraltar followed the United Kingdom practice of unarmed police and so on, he was not particularly pleased to have seen that apparently all security guards locally were uniformed and too much verging on the "para military". "Too many uniforms for my liking and in Gibraltar where you should be getting rid of the vestiges of a garrison city, the less uniforms seen, the better. Gibraltar is now a fully fledged tourist destination, if only short stay and the military should only be evident and seen as wax models in representation of what once was"

I wonder what my readers would have to say on the matter!

But on subject of security, this gentleman was very favourably impressed at the lack of "prison bars" guarding all our windows and porches. After travelling in Spain where absolutely everything must be protected against thieves, how refreshing to see unobstructed windows once again. He said that he was more favourably impressed because being next door neighbours, it would not have been illogical that some of the bad influences would have crept over!

Gib and UN decisions

The General Assembly of the United Nations has approved a number of Resolutions which are relevant to the question of Gibraltar’s decolonisation, said the Opposition.

As is already known, the UN called on the UK and Spain to continue negotiations under the provisions of the Brussels agreement to decolonise Gibraltar in a decision which was again approved without a vote as it reflects a consensus which was supported by both Britain and Spain. This situation acquires special significance this year in the light of the statement by the British representative at the UN that the UK sincerely intended to continue to participate in a constructive and co-operative spirit in the process of informal dialogue on decolonisation issues with the Committee of 24. There is a serious risk that in this process of dialogue ways of establishing acceptable criteria for the decolonisation of other British colonies are being explored by the United Nations, and that Gibraltar is being excluded from this process because it is treated as a bilateral issue between Britain and Spain.

The Resolution on the eradication of colonialism was passed by 141 votes in favour with only the United Kingdom and the United States voting against. By another Resolution, the General Assembly has also affirmed the remaining colonies on its list and that the colonial powers will need to submit annual reports under article 73c of the Charter until the General Assembly itself takes a decision approving that a particular colony has achieved a sufficient measure of self-government in order to be removed.

The GSLP/ Liberal opposition believe these developments are of great relevance to the current discussions taking place to produce a new constitution which decolonises Gibraltar and that it is very important to seek to engage the United Nations in the current process of preparing for decolonisation.

CALENTITA - Gibraltar’s National Dish

Extract from the telephone conversations of Cloti & Cynthia

Turkey se queda sin pavo - GBC se come los roscos de Continente - y la UNA en ayuna

It's another year over, my dear Cloti. How time flies.

Nothing flies more than a minister, cariño, pero el year is not yet over. Falta el Christmas y todo.

Anyway, it's time para las comelonas. We eat so much que no sabemos lo que estamos celebrating.

Digo. Y si alguien no nos cree, que le pregunten al Bishop, que quiere poner his own televisho.

Mind you, como sea bueno se carga a GBC!

Los del GBC tuvieron su comelona on Friday. Gracias que no trabajan on Saturdays porque parece que they had one too many. Eso que lo paga los tax-payers tambien?

I don't know, pero a lo mejor se comieron los roscos del Continente and what-have-you.

Te dire que los small business han armao la grande con esto de los Spanish advertisements. Una que se llama Coll, que segun mi Juan estaba para comersela, dijo en el televisho que it's not fair.

If it's not fair, sera guapa. Es que es para tomarse un revenshin, que we all pay para darle de comer al televisho y esta gente ponen anuncios para que gastemos las verdosas on the other side of the garlic fence.

Los Spanish will keep on being Spanish. Ya lo ha dicho el Matutero, que the way to get sovereignty es dandonos palos.

En plan animal! Y los apes andan asustao, y no tiene nada que ver con el Matutero. Es que we are all behaving like animals, my dear.

Tendra algo que ver with what we eat, como no sea lo del mad cow.

Cabras locas parecemos at times, verdad?

Segun my grandmother, la que vive detras de los cuartos, our ancestors se mantenian vivitos y coleando comiendo pan de lata and drinking agua de cisterna.

And now ya podemos comer pavo, it's official, porque Turkey is joining el European Union.

Pues que tenga cuidao how they go in, because if our experience is anything to go by, se quedan hasta sin turkey.

Bueno, hija, forget the problems, y a cantar el Silent Night because el Christmas comes but once a year.

Eso. Y que tengan ustedes un buen principio. Feliz navidad!

Happy Christmas!

What’s On

Monday 20th December Extraordinary Christmas Lottery Draw to be held at the Lobby of the House of Assembly at 6.30pm

Poetry Society at the John Mackintosh Hall for further details please contact Audrey Batty on Tel: 44355.

Tuesday 21st December Roses Nursery Christmas Show at the John Mackintosh Hall theatre for further details please contact Tel: 73909.

Quiz Night at the Cannon Bar. All welcome for further details please contact Tel: 77288. Time 8.30pm.

Wednesday 22nd December Tears of Joy Choir at Sacred Heart Church in aid of the Church Restoration Fund, entrance by programme only £5 each and can be acquired from Sacred Heart Church and Cathedral Bookshop or by phoning Tel: 71001. Time 8.30pm.

Thursday 23rd December Talk/ Exhibition by Marie Peralta on Charitable trip to South America from 7pm to 9pm.

Friday 31st December Millennium Countdown Spectacular at Casemates Square from 11pm.

This information is subject to change without notice

"

The meeting place of continents

GIBRALTAR SHIPPING SPECIAL

Shipping updates

INDEX TO ARTICLES

Charting a course into the 21st century

Flying the flag

A Good Place to Arrest a Ship

CRUISING TO SUCCESS

Cammell Laird breathes new life

Good location, good prices

GROWING OFF-PORT BUSINESS

Volumes soar as Gibraltar becomes biggest bunker port in Western Mediterranean

Gibraltar growing as a commercial towage and salvage centre

Hard times due to stiff competition

THE COMMERCIAL OPERATION OF THE PORT

Charting a course into the 21st century

Gibraltar is going full speed ahead in charting a course into the 21st century from its strategic location in one of the world's busiest sea lanes. It is encouraged by the marked resurgence in recent years in the fortunes of its port and shipping-related industries, while retaining a strong element of growth potential as only 7 per cent of the 70,000 ships that sail through the Strait of Gibraltar currently call at the Rock's port.

It is a changing scene. Building on success, a more commercially-oriented port authority is being set up, while final decisions are being taken on a major container transhipment facility. Gibraltar is already the biggest bunker port in the western Mediterranean and cruise calls are also on a clear uptrend.

Cruising has picked up after a brief glitch to the extent that limits may have to be placed on the number of passengers it can handle at any one time, conscious of the need to guarantee customer satisfaction. It was recently voted one of the most receptive destinations as well as "the most improved port facilities" in the Mediterranean. Further plans are afoot to extend its modern cruise terminal to allow for overnight stays and fly-cruises, for example.

Looking ahead, the Government will shortly be taking decisions about becoming a major container transhipment port. "I am determined that this project should come to fruition if it is commercially viable," enthused Joe Holliday, minister of tourism and transport. International interest is coming from American and Far-eastern concerns who would secure a lease on a build, operate, transfer basis.

There are several arguments in favour of this idea. Although the Mediterranean in general probably has too many ports vying with each other to be major regional hubs, Gibraltar's geographical position would enable it to fulfil a role which is open only to a few: line-linking.

A substantial portion of the containers passing through Algeciras, on the other side of Gibraltar Bay, are transhipped from vessels on north-south routes, serving South America and Africa, to those on east-west voyages through the Mediterranean and vice versa. Tangier also has hopes to develop a transhipment centre, but experts suggest that building a terminal in Gibraltar would be far more economical, though still expected to cost in excess of £180 million.

If Gibraltar did become a line-linking centre it would also probably develop a network of regional feeder services. The increased traffic through the port would boost all the ancillary service providers and would create between 200 to 250 permanent jobs once up and running. It would also help reduce the port's current reliance on the bunker market.

On a smaller scale, other land reclamation is to be undertaken to expand facilities for port operators, allowing for improved storage, supplies and the loading/ offloading of containers for the local market. Ironically, the local container business is one area which has been in decline over recent years. Ten years ago over 3,500 containers were handled; this dropped last year to under 1,000. This is a reflection of the reopening of the land frontier with Spain, resulting in a gradual shift to supplies by road.

Where volumes keep soaring is in the bunkering business, propelling Gibraltar to the number one spot in the western Mediterranean. The minister, however, is showing no signs of complacency and says there is still room for expansion. Bunker operators agree that more vessels can be handled. They have seen ships calling for bunkers rise from under 1,000 to over 3,000 in less than a decade.

Ship registry has been regaining lost ground now that Gibraltar is the only jurisdiction in the European Union, apart from Britain itself, flying the Red Ensign flag. While it is recognised that Gibraltar enjoys competent professional back-up, it is felt there is a need to change some areas of current legislation to improve competitiveness by being more attuned to the internationally recognised standards in other registers, like Bermuda and the Isle of Man.

Not without problems is the setting up of the new Gibraltar Port Authority to replace the Government-run port department. An element of resistance to certain changes could arise from the unions. The restructured administration will be headed by a chief executive who will be responsible for the commercial arm of the port. In handling marketing and generating income, he would be expected to adopt a far more proactive commercial stance than what Gibraltar has grown accustomed to. Despite recent successes Mr. Holliday acknowledges that the port is "an asset which has been undersold."

The new port authority will include a second surveyor, which is seen as a useful addition at a time when more ships want to register on the Rock.

Pollution control is an important area given the magnitude of bunkering operations. In the past it all revolved around the Ministry of Defence, but the aim now is for the port to have its own resources and to fully coordinate the newly produced pollution disaster plan.

The port is also investing heavily on sea rescue, replacing old craft by a new port launch and a smaller, faster vessel to react swiftly to any emergency. It has also taken over the provision of radio services and is to introduce a system of licences for port users - from bunker operators to ship chandlers, all will be licensed.

Certainly times of change.

Flying the flag

Re-establishing the Gibraltar Ship Registry as a serious choice for owners wishing to use an open registry flag has been one of the major achievements of the Gibraltar government over the past two years.

Ship registry went through a difficult time in the early and mid nineties and the momentum which had been gained in the previous decade was lost as the UK withdrew Gibraltar's authority to register additional vessels, due to concerns at the way the registry was administered. The remaining fleet gradually dwindled.

That unhappy episode is now in the past. Since late 1997 a small team, led by former UK Maritime Safety Agency (MSA) surveyor Roland Green, has worked hard to relaunch the flag and its efforts are now starting to be rewarded as numbers, though still low, begin to pick up.

Mr Green reports eight additions in the past 14 months though, as would be expected, one or two ships have left the register. He notes that the level of enquiries is picking up substantially with considerable interest from Italian and Greek owners.

Gibraltar is now a Category 1 Red Ensign Group flag. That means it complies with the standards agreed by the group and in practice follows the policies and standards of the UK's Maritime and Coastguard Agency (MCA - the successor to the MSA). It also has the benefit that vessels flying the Gibraltar flag are entitled to Royal Navy protection.

Ship registry is not in itself a particularly lucrative business.

Administering a flag requires experienced and qualified surveying staff with back-up personnel. Even the big registers such as Panama and Liberia generate relatively modest revenues compared to the massive amount of tonnage entered.

The real value of a register lies elsewhere. It generates business for lawyers and ship and registry firms. It also helps build up a strong maritime foundation by gradually increasing shipping expertise. If other things are right, shipping companies using the register may see the advantage of setting up offices in Gibraltar.

There are, says Mr Green, several reasons why owners should consider flying the Gibraltar flag. One of the most compelling is that Gibraltar is within the European Union, allowing its vessels to operate in the EU cabotage trades. Apart from the UK, Gibraltar is the only Red Ensign Group member within the EU.

Also Mr Green stresses that, while ensuring standards are not compromised, the Ship Registry staff do their best to make it easy to register vessels by providing an efficient and responsive service.

Charges for the register are kept at a "reasonable" level while a range of different types of registration is on offer: full, bareboat charter, provisional and ships under construction.

Gibraltar follows the UK's manning requirements which now have very few restrictions on nationality. Certificated officers must hold either a UK certificate of competency or a Certificate of Equivalent Competency. The position of master of some types of ship - large passenger vessels, Ro-Ro ships and product and chemical tankers - is restricted to nationals of certain countries.

This all adds up to a package with few restrictions of concern to a good quality operator. Mr Green says: "This is not a 'flag of convenience'."

The Ship Registry follows the MCA in only taking ships in class with certain classification societies. These are: Lloyd's Register, American Bureau of Shipping, Bureau Veritas, Det Norske Veritas, Germanischer Lloyd and Registro Italiano Navale, all of which have British based committees.

That means, for example, Gibraltar cannot accept vessels classed with the Japanese classification society Class NK.

The MCA has recently audited the Ship Registry. Its findings are likely to be known at around the time of the annual Red Ensign Group conference which will be held in Gibraltar on May 25-27.

The relaunch of the Gibraltar Ship Registry has gone well so far. It is though a long-term project which will require sustained effort.

In Gibraltar PSC inspections are currently carried by the Port Department. If the administration of the port is restructured, as is likely, there could well be a case for bringing all ship survey and inspection matters under one administration, as is the case in the UK.

On the commercial side one local lawyer warns that Gibraltar's EU advantage may not last for ever. Sooner or later Malta and Cyprus, both with strong and established open registers, are likely to gain EU membership. He says that makes it vital to establish and reinforce Gibraltar's reputation for quality and service now before competition increases.

In the short term, though, it looks as though Mr Green will be kept busy as more owners of vessels ranging from drilling rigs to feeder container-ships come to the Ship Registry.

A Good Place to Arrest a Ship

To the outsider it may seem strange that a port would want to promote itself as the ideal place to arrest a ship. Gibraltar does just that, and with very good reason.

At any one time there could be, typically, ten ships under arrest in Gibraltar, usually either berthed at the Detached Mole or at anchor in the Eastern Anchorage on the opposite side of the Rock to the harbour.

Arrested ships mean business for Gibraltar's numerous lawyers, for agents, tug companies, even pest control services and sometimes for the dockyard too. And it certainly means plenty of hard work for admiralty marshal Katherine Dawson.

In addition crew changes normally have to be arranged for arrested ships before departing under new ownership. Crews and superintendents may have to be put up in local hotels.

So it is understandable why Gibraltar wants ships to be arrested in its port, if they have to be arrested at all of course. But it is a commercial fact of life that sometimes owners do default on ship mortgages, ship suppliers do have legitimate claims against vessels, charterers have genuine grounds to arrest ships as security in disputes. Gibraltar is keen to stress the positive role it can play by providing a quick and efficient place to carry out an essential part of shipping business

Tony Christodoulides of law firm Marrache & Co says Gibraltar owes its popularity as a place to arrest ships to being a Common Law jurisdiction and its ability to move relatively quickly. The Gibraltar Supreme Court has a track record of hearing cases quickly and uncontested ones are dealt with in a matter of weeks. As with the English courts, it passes clean title to vessels sold by the admiralty marshal.

There are other factors too which make Gibraltar a good place for arrests.

It is of course well situated on the busy shipping lanes but it also offers low port charges for arrested vessels. In some other ports, dues can mount up very rapidly eating into the sum realised by a ship's sale. Moreover easy accessibility to London by air for crew changes and keen bunker and ship supply costs also play a part.

"Additionally, through the coming into force of the Civil Judgements and Jurisdiction Ordinance, it is now possible to arrest a vessel as security in respect of proceedings instituted elsewhere," said Raymond Triay of the Triay & Triay law firm. "This represents the single most important recent legal development."

Last year saw some 50 Admiralty actions, most of which resulted in Admiralty court sale.

This year shows all the signs of being a bad one for the main shipping markets with the dry bulk trades enduring the worst downturn for years while the crude oil tanker sector also appears to be heading for difficult times. "Admiralty work has always formed a significant part of our practice," said Mr. Triay. "Given the present state of the market this is so at an ever increasing rate."

CRUISING TO SUCCESS

There can be no doubt that Gibraltar's development as a cruise destination has been a major success story. The Rock's popularity with cruise passengers is such that the government is planning to implement limits on the number of vessels calling at any one time to keep the number of passengers down to a manageable level to guarantee customer satisfaction.

The chief executive of the Gibraltar Tourist Board, Tony Davis, concedes that it may seem rather strange to actually turn business away. The decision, however, makes sense as part of a strategy to secure the long-term future of the cruise business.

Over the past two years much emphasis has been put on improving the quality of the product on offer. The need to concentrate on standards and customer service was brought home in 1997 when the number of ship calls slumped to 99 and the total passengers visiting dropped to just over 70,000. The previous year had seen an all-time record of 139 calls and nearly 97,000 passengers.

The poor figures marked the end of a decade of, more or less, steady growth which saw vessel and passenger numbers more than double.

To be fair the decline was partly attributable to cruise lines switching itineraries away from Gibraltar for reasons completely unrelated to the Rock.

Nevertheless it was widely recognised that urgent action was needed to improve what had become a rather shabby image. Moreover a dispute between taxi and bus operators over the provision of tours and the standard of Rock tours had become major issues.

Much has changed since then. The appearance of the main shopping areas has been greatly improved by a pedestrianisation programme and the approach road from the passenger berth to town has been given a face-lift.

Crucially, Gibraltar now has a high standard cruise terminal. With works by local artists adorning the walls it was designed to provide passengers with a pleasant, neo-classical environment with a colour scheme evoking the Mediterranean. Importantly the terminal is capable of handling embarking and disembarking passengers.

The terminal was built quickly, using the shell of a former cargo shed, and has featured prominently in the aggressive marketing strategy Gibraltar has engaged in to win back the cruise trade.

Partly the promotional effort has involved attending trade fairs and talking to cruise operators. This campaign has not only involved government officials but agents have also been prominent in spreading the message that cruise lines should put Gibraltar in their programmes.

Other initiatives include multi-call discounts on the standard £2 per person Passenger Tax, ranging from 10 per cent for more than five calls to 100 per cent for home-ported vessels.

All this effort has not gone unnoticed by the cruise industry. Gibraltar won the DreamWorld Cruise Destination 98 award for the "most improved port facilities" in the Mediterranean and came runner-up in the "most receptive destination" category.

The promotional campaign has also borne more practical fruit. Last year the number of vessels was only four short of the 1996 record while passenger numbers passed the 90,000 mark.

This year the port is set to receive even more ships. Mr Davis says: "So far we have 183 confirmed bookings for 1999 and the actual figure is likely to be higher."

Gibraltar has teamed up with other Mediterranean cruise ports to form Medcruise (The Association of Mediterranean Cruise Ports) an organisation dedicated to promoting standards at member ports and to jointly promoting the region's destinations.

The need to maintain standards is the motive behind Mr Davis's move to cap the number of calls. He wants to restrict the capacity of ships alongside at any one time to 3,500 passengers. In practice that means one very large vessel of the sort now coming into service with the major operators and a smaller ship.

That does not mean, Mr Davis points out, a 3,500-passengers-a-day limit as it is becoming common to have ships arrive in the morning and leave late afternoon to be followed by other vessels staying until late at night.

The measure is intended to avoid too much strain being put on Gibraltar's resources, especially of taxis and guides. That would mean disappointed cruise passengers and, ultimately, unhappy lines who could, once more, vote with their feet.

Last year may also turn out to have been significant for Gibraltar's plans to become more than just a destination but also a hub port where passengers join and leave home-ported ships. In November P&O's 700-berth Victoria turned round at Gibraltar with the airport playing a central role.

George Gaggero, deputy chairman of shipagent MH Bland, says the operation was a complete success because "everybody worked together, the port, agents, customs, immigration, taxis."

Three charter aircraft were used for the Victoria hubbing operation. Mr Davis says that Gibraltar proved it can provide a faultless turnaround service to cruise ships. Some passengers took just 27 minutes to get from their aircraft to onboard the ship. He said the line had acknowledged that nowhere else could do better.

At present there are no further cruise turnarounds planned but Mr Davis is hopeful that lines will now see that using Gibraltar as a base port is a realistic option.

Although there is no doubt that there has been massive progress in developing Gibraltar as a cruise destination Mr Davis cautions against complacency. There are issues that will need to be addressed to ensure the Rock's future in the cruise business.

The government is continuing its drive to improve the physical facilities for cruise passengers. Work is underway on improvements to the passenger terminal and on resurfacing the quays used by the cruise ships.

In the longer term, though, further substantial investment will be needed in terminal facilities.

In the short term, however, Gibraltar is now able to compete strongly as a cruise destination and offer a product which is increasingly attractive to repeat cruise passengers. It is also ready and able to act as a base port for cruise operators.

Cammell Laird breathes new life into dockyard

Gibraltar's large former naval dockyard with its three graving docks should be one of the pillars of an emerging, commercially based economy. Since the Ministry of Defence handed over the yard to civilian hands its history has been less than happy but the past year has witnessed a remarkable turn around in fortunes which has done much to boost optimism in the future of the port as a whole.

When Kvaerner abruptly decided to leave Gibraltar about two years ago it was difficult to be upbeat about the yard's prospects. The problems of the recent past, however, tended to make people forget what the dockyard had going for it - in the right hands.

Even though several operators failed to make a success of the yard, due at least in part to political and labour issues, it enjoys considerable competitive advantages. The basic facilities, the legacy of the Royal Navy, are in good condition and include a 270 metre dock and two smaller ones of 190 metres and 150 metres.

Other assets include 800 metres of deepwater berths for alongside work and 3,500 square metres of covered workshops. In addition a mainly dry sub-tropical climate is virtually ideal for shiprepair work which can be affected by adverse weather. A tidal range of just 1 metre means there are no tidal restrictions on vessels' movements.

In addition, of course, Gibraltar is right on one of the world's busiest sea lanes, used by some 70,000 ships each year. That means planned dockings can often be fitted into schedules without the need for expensive diversions. Its position also ensures the yard is well placed to accept emergency repair work following casualties in the Western Mediterranean and Eastern Atlantic.

Put like that it is difficult to see how such a well-endowed yard could fail. But early last year prospects certainly looked bleak and the talk was of "one last chance".

Cammell Laird (CL), which had built up a strong shiprepair and conversion business on the Merseyside site of the former shipbuilder of the same name, took a 20-year renewable lease on the Gibraltar yard. It turned out to be the first move in a rapid expansion programme which has turned into the UK's largest shiprepairer.

On the Rock, CL has turned the dockyard into an instant success story. Operations director Tom Parry says the yard received nearly 400 enquiries during its first year of operation and about 150 of those led to actual contract, a very high "hit rate".

Major shipowners have been using the yard in the short time it has been back in operation including Cosco. CL has an agreement with the Chinese owner to work on its vessels if they require work while in the region although the yard would not be able to compete on price with the Chinese yards that do most of the work needed on the Cosco fleet.

Several units of the local fleet of bunker barges, tugs and similar craft have also spent spells in the yard since CL took over. Large grey ships, once such a common sight in Gibraltar, are once again being seen in the dockyard. It has won repair contracts for several British Royal Fleet Auxiliary vessels. Mr. Parry sees this development as an important step in building a secure future for the yard.

So far work has been of a "bread and butter" shiprepair nature. This type of work implies fairly low margins and is vulnerable to fluctuations in the fortunes of the shipping markets. Mr. Parry notes some slacking off in the repair market during the early part of this year. He says: "Owners are deferring work right now rather than spending."

That is why CL is looking to undertake conversions. To do what it needed to upgrade the yard to ISO 9000 standard which it achieved in November. Since then it has been bidding for suitable projects.

They also plan to develop another niche market for which Gibraltar is particularly suited - the repair and refurbishment of "superyachts". These craft, which look more like small cruise liners than yachts, frequent the southern coast of Europe in summer and many of them switch to the Caribbean for the winter.

CL has already undertaken superyacht work and is marketing itself strongly in this sector. It also plans to invest in a movable cover for its smallest graving dock which will be used for work on these expensive vessels.

Already there has been speculation that CL may expand its capacity by bringing in a floating dock. That, though, would only make sense if the largest, panamax dock was being regularly used for conversions.

In the meantime they are investing in the future by taking on 20 apprentices and have set up a training facility. About 170 people work at the yard which, currently, does not use contractors.

In another vote of confidence in the long-term success of the Gibraltar facility, CL is basing its new riding crew operation Cammell Laird International at the yard.

All in all there has been an amazingly rapid change in fortunes which has had considerable beneficial knock-on effects on the port and consequently Gibraltar's economy.

Good location, good prices

There are few ports better situated than Gibraltar's to provide stores, spares and crew changes to the world's fleet. Over 5,000 vessels called at Gibraltar last year, mainly for bunkers, but with some 70,000 ships passing by every year there is plenty of scope to expand.

Extremely fierce competition between ship suppliers means Gibraltar offers some of the lowest prices anywhere. In fact the prices are so competitive that Paul Mifsud of ship supply firm James Molinary cannot understand how the handful of firms that remain can make realistic profits.

Mr Mifsud is determined, though, to keep the long-established firm going.

He has just set a deal to import provisions from Holland which he hopes will help his firm remain competitive.

GROWING OFF-PORT BUSINESS

While the number of ships coming into Gibraltar continues to grow an increasing number of vessels now take on stores and change crew members off-port limits. This has the advantage for owners that they do not need to come off hire but can pick up stores at approved rendezvous points just off the Rock.

Permission was first given for off-port limits storing in 1993 when 105 vessels used the services provided by a number of local companies using tugs and other craft. Last year 410 vessels were serviced off port limits and the number has risen further this year.

The Captain of the Port, John Prior, is careful to ensure that these operations are carried out safely.

At present there is a limit of four tonnes of cargo, but the Government is going to do away with limits. It is one of the first recommendations they are going to put in place following the setting up of a committee to make recommendations for future port operations.

Further increases in off-limits business is an aim of policy.

Volumes soar as Gibraltar becomes biggest bunker port in Western Mediterranean

Gibraltar has emerged as the Western Mediterranean's biggest bunker port.

The boom in bunkering calls has greatly increased the number of vessels coming into the port but competition with other ports has pushed profit margins to very low levels.

Ten years ago 932 called at Gibraltar primarily to take bunkers. Last year the number was 3,275 and indications are volumes are still increasing. That equates to over 2.5 million tonnes of bunker fuel.

Those figures leave rival ports in the Strait of Gibraltar way behind. Algeciras on the other side of Gibraltar Bay handled 1.25 million tonnes and Spain's North African enclave of Ceuta handled 0.5 million tonnes.

The big increases in volume have occurred since 1995 when 1,631 ships called for bunkers. The largest player in the local bunker market is Cepsa (Gibraltar) which supplies fuel from Spanish oil company Cepsa's nearby refinery to Gibraltar using three bunker barges run by Gibraltar-based Maritime Gibraltar. It delivered about 1.5 million tonnes last year of which it supplied 620,000 tonnes to Shell Gibraltar and 360,000 tonnes to Peninsular Petroleum, in both cases for sale in Gibraltar.

The driving force of Cepsa (Gibraltar) is its chairman John Bassadone whose company Gibunco Holdings owns half of Cepsa (Gibraltar), half of Maritime Gibraltar and 100% of Peninsular. They have a good track record.

The Texaco-Chevron joint venture Fuel and Marine Marketing (FAMM) handled some 770,000 tonnes last year, up about 300,000 tonnes on the year before.

FAMM uses a shoreside tank facility, leased from the Ministry of Defence, and previously used by Shell. The King's Lines terminal is operated by Javaoil.

Until early last year Texaco, prior to the formation of FAMM, used Vemaoil Company's barges to take bunkers to vessels. Then it switched to Aegean Bunkering (Gibraltar) which operates three Panamanian-flag tankers.

Both Vemaoil, which still operates and sells bunkers directly, and Aegean are Greek owned companies. Aegean's operations director Apostolos Manitsas says that his company employs ten Gibraltarians on its vessels. In conjunction with the government Aegean has sent six locally recruited crew to the UK for training.

Gibraltar growing as a commercial towage and salvage centre

Sometimes the scene in Gibraltar harbour gives the impression that nothing has changed. A large Royal Fleet Auxiliary oiler can still on occasions be seen manoeuvring off the South Mole with, apparently, the aid of five naval tugs.

Appearances are very deceptive. Almost everything has changed. The Ministry of Defence (MOD) only keeps one tug in what was once a key strategic base. The other four tugs, albeit wearing naval black and stone, are operated by private companies. Three belong to TP Towage while the other is owned by Gibunco. And there is another operator with fleet of roughly similar size to TP's, Straits Towing.

There is no hard and fast division between towage and the provision of supplies. One of Straits' tugs, the Nicky, is primarily used for taking lube oil out to vessels while the company also operates two water barges.

TP has also been involved in carrying out crew changes and taking spare parts out to vessels.

Agent and stevedore, MH Bland, also operates one tug which is used for taking stores, spares and provisions out to ships in the anchorage and to the increasing number of ships taking stores off port limits.

Gibunco's ex-MOD tug Sealyham is mainly used for naval movements, of which there are still quite a number despite the military run-down.

For many years commercial towage in Gibraltar was undertaken by UK-based Alexandra Towing. About four years ago Alexandra became part of Australian-owned Howard Smith which decided in January last year to pull out of Gibraltar.

In retrospect Howard Smith's decision seems strange though it was taken at a time of considerable uncertainty over the future, with the dockyard closed and its prospects hanging in the balance. Since the beginning of last year Cammell Laird has taken over the dockyard and consequently shipping movements at Gibraltar have continued to increase.

Nevertheless Howard Smith did get out, offering its local manager Thomas Peñalver the chance to take over the Gibraltar operation. Mr Penalver established TP Towage which currently operates three tugs.

The result of this competition is that the port is now very well served by tugs and that it can serve as a base for salvage operations. TP Towage has already attended casualties while the presence of an active shiprepairer in the port bolsters Gibraltar's status as a growing towage and salvage centre.

Both the two main tug operators profess optimism for the future. TP has experienced a busy first year and is seriously looking at acquiring an additional tug.

Hard times due to stiff competition

Gibraltar's agents are probably busier than they have ever been. The boom in the bunker trade means that, on average, about 15 ships call at Gibraltar every day.

The port is certainly well served by agents with a number of long-established local firms as well as two international groups - Barwil and Inchcape. Owners calling at Gibraltar have little to complain about as competition has pushed agency charges to very low levels. Those calling just for bunkers are being offered a package including agency services at no additional cost.

Not surprisingly agents are less than happy at a situation which has seen their margins plummet. Paul Imossi, of Lloyd's Agent Smith Imossi, notes that fees for a bunker call have dropped from around £600 to less than £250.

George Gaggero, deputy chairman of MH Bland, makes the same point. "There are a lot of ships coming here now but it is hard for agents. Margins have been pushed down in the past year," he says.

Mr Imossi cautions that the port has become very dependent on bunkers and if volumes were ever to dip agents would be in for a particularly lean time.

Fortunately there are other sectors which are looking brighter. Cruise calls are now back to the levels of the mid-nineties. The agents have been closely involved with the government in promoting Gibraltar as a cruise destination. Several of them have attended international trade shows as part of a marketing drive that appears to be paying off.

Worries remain however. The issue of whether cruise operators and passengers should be able to choose between taxis and coaches for Rock tours still simmers.

MH Bland operates tour coaches as part of a wide range of activities extending from agency and stevedoring to running the cable car to the top of the Rock. Mr Gaggero stresses, though, that the agents see the issue as being about the freedom of choice of the customers - the cruise lines.

There is also a feeling among agents that more lines need to be attracted to Gibraltar. This year three vessels calling regularly make up a large proportion of total calls.

Agents are however also able to benefit from increased activity in the port as resulting from the reopening of the dockyard by Cammell Laird. According to the Port Department, 66 ships called for repairs in 1998 but that number is set to be much higher this year with the yard back in full operation.

Off-port-limits storing and crew changing is another area that is growing, with some agents operating their own craft. In the longer term any development of a container port would also bring the prospect of more work for agents.

Increased ship arrests has also helped. Work required on arrested vessels can be considerable, including arranging crew changes and hotel accommodation.

In the short term, however, agents are likely to continue to struggle against downward pressures on their margins.

Update - 13th December 1999