Strategic Mindset
the key ingredient of success
No article could possibly do proper justice to the constant growth of Melita Marine Group, an entity which its Managing Director Pierre Balzan has been at the helm of since its inception in 1989.
The Group shows no sign of slowing down – rather the contrary; Mr Balzan is determined to keep riding the wave of the momentum Melita Marine Group has made.
In 1989, Malta had just started to explore avenues in the maritime and yachting world. A few marinas had opened. Yet, Mr Balzan explains, “very few people were providing serious yachting services.” This is when Pierre saw a window of opportunity and his inherent entrepreneurial seed was sowed.
One has to understand that in those days, a superyacht typically consisted of a yacht in the thirty metre category – a far cry from the giga yachts – behemoths ranging between 130 and 180 metres, which now grace the Mediterranean and our shoreline. “In 1989, a ‘big boat’ was a very different size than a big yacht is now”.
Mr Balzan’s very first mission was the successful acquisition of his first customer – the owner of a thirty five metre yacht. This saw him start his successful and remarkable foray into the yachting business – notwithstanding his lack of experience at the tender age of twenty. The end result of this encounter saw him being entrusted with a full range of services – something which he delivered successfully.
Eventually, Melita Marine – as Pierre had christened his startup, began looking at the various departments and competences required to offer a ‘one stop shop’ to visiting yachts. Mr Balzan explains that “this was a slow, yet well thought out process that saw individual departments developed separately, holistically and completely. Till today, we keep building on our core competences, step after step.”
Once Melita Marine had gained a solid structure, it was time to market them. Their first international outreach saw the company being present at the San Remo Boat Show. Malta was a relatively unknown quantity. Today, this has changed drastically, but “back in the early 1990s, this was practically uncharted territory.”
individual departments developed separately, holistically and completely. Till today, we keep building on our competences, step after step
Melita Marine’s marketing efforts saw them embark upon a roadshow which meant that they contacted and visited each and every reputable yacht broker and management company in the Mediterranean and beyond. That, and of course being regularly present at – and investing in high level boat shows significantly enhanced the company’s visibility. And Melita Marine thus gradually started welcoming more and more yachts to the Maltese facilities.
EMPLOYEE ENGAGEMENT
Whilst the company is indeed a sole-family operation, it is very much run in a corporate structure, with a board of Managers overseeing different structure operations – “it is impossible to operate in several countries with a flat structure,” Mr Balzan explains. As is typical within all industries, the maritime sector too tends to have its most successful and profitable companies being the leaders in employee engagement. And indeed, Melita Marine employees are not seeming to jump ship anytime soon. Mr Balzan proudly explains that “several of Melita Marine’s employees have been with the company since its inception – many of whom were starting their first job in their late teens or early twenties. These employees have grown with the company, and many are now proudly managing their teams.”
The workforce, of which 90% has happened to be Maltese, starts off as apprentices, with a technical or academic background from local recognised entities such as MCAST or ex-Malta Drydocks, as well as foreign sources of education and instruction. “Training is an ongoing process and regularly takes place in Germany on matters including electronics, engineering and automation capabilities,” Mr Balzan explained. “We cannot stop or pause training, otherwise the company would end up moving ‘in reverse’.”
Melita Marine’s certifications from entities such as Lloyds, BV and ISO Certifications 9001, 14000 and 18000 are crucial to those organisations seeking to improve the quality of their products and services via the service provisions of their own service providers and suppliers. Moreover, further certification is obtained from the prestigious brands Melita Marine represents. All this further adds to the credibility of the company, and hence to the probability of being selected as their customers’ main service providers.
When discussing their environmental conscience, Mr Balzan explains “We are very environmentally conscious – and so are our clients. Superyacht owners are ‘super’ clean and ‘super’ careful as to what is discarded, and how this occurs. Our ISO 14000 certification and ERA approved processes guarantee our equal commitment.”
SUPERYACHT INDUSTRY
Super yacht wages are famously high when compared to the personnels’ counterparts employed within other industries – this means that a superyacht is always of benefit to the country it then visits. Some of these yachts employ a 30 to 50 crew force on just one yacht. This means that a visiting superyacht will give a direct contribution to the industry in terms of seeking its services so as to maintain its capacity to luxuriously, safely and precisely carry its passengers, and crew; as well as a second contribution of equal importance to our country which is in proportion to this number of high-paid, travelling visitors.
“The larger superyachts are the ones that contribute to Malta’s economy – not just within the yachting sector but also within the entertainment and leisure industries. A boat’s annual budget for maintenance, supplies, running costs and salaries is said to be around 10 per cent of their value – they will definitely spend more than your average tourist,” Mr Balzan tells us. With a budget of approximately 10% of its worth, one can imagine the economic generation this business yields. This is the type of business that Melita Marine’s Superyacht and specialised Engineering departments have been assisting since its inception.
He explains that Melita Marine’s vision from the onset was to have a one-stop-shop operation. Rather than having a number of individual suppliers, Melita Marine set up its own core team – a kind of boutique shipyard – without the shipyard at the time. This was solved by aligning with selected local shipyards with similar values, and joining forces and expertise. Eventually Melita Marine built their own shipyard in Marsa. Today it is proud to be one of the largest floating docks for Superyachts in the Mediterranean, having the capacity to receive yachts up to 110 metres in length and a lifting capability of 5,000 tonnes. Melita Marine Group was recently also recognised as being one of the best Superyacht Shipyard facilities in the Med by a leading Superyacht Industry body. Mr Balzan adds that “the combined in-house services we offer, together with our specialised team of professional project managers, will take care of every aspect of yacht repair, maintenance and refitting of yachts up to 110m.”
Between 2000 and 2010, Manoel Island Yacht Marina – where Melita Marine was based, was a haven for superyachts. Melita Marine built up the marina during those times, also filling in for Grand Harbour Marina until it was ready to start welcoming these yachts. Soon after, Melita Marine took over the dilapidated Mgarr Marina in Gozo and completely refurbished the area, enabling it to offer 300 spaces, catering comfortably for yachts of up to 45 metres, and sometimes beyond. As part of their expansion activities, the possibility of extending the outer section of the North Breakwater to accommodate Superyachts is being looked into since this forms part of their area. Should this exercise prove to be successful, yachts of up to 70 metres would be able to berth there.
COVERING THE MEDITERRANEAN
Mr Balzan’s infectious enthusiasm and passion belies the calculated approach taken for every strategic decision Melita Marine embarks upon. When explaining how strategic choices are made, he explains that extensive research is followed by precise and timely decisions. An example of this is the choice of having a base in Libya (as an engineering facility only for the various industries there other than yachting) as well as in Spain and Greece; hence diversifying not only into new markets but moreover into a new ‘product’ given that Libya is not a typical yachting market but a commercial one. Melita Marine has been, for example, providing engineering and maintenance services to Virtu Ferries’ main propulsion system (MTU) for decades locally along with most of the fast ferry companies in Greece and Egypt as well as other countries around the world. “Only careful planning, with a touch of risk-taking, makes stable expansion from one country to another possible,” Mr Balzan matter of factly explains.
Melita Marine operates on a 24-hour basis. Their support ensures that any faults are dealt with in a speedy manner – this is particularly important when dealing with passenger and cargo ferries. Fly teams are on standby to travel around the world, supporting yachts and other vessels in case of need.
Only careful planning… makes stable expansion from one country to another possible
Technology has helped the company to keep tabs and feel the pulse of each country’s operations. Country Managers travel regularly however video calls were always part of the way Melita Marine conducted its international business – “covid-19 just intensified the process”.
Melita Marine is working with the Greek defence department to overhaul submarines and frigates.
OPERATIONS
Melita Marine’s operations spread far and wide and whilst they might be more known for their shipyard and super yacht operations, its portfolio includes Chandlery, Yacht Painting, Harbour Management as well as the power generation market with the distinct capability of using environmentally- friendly technologies.
Plans to further expand within the Mediterranean are ever- ongoing and underway – a matter which enhances their technical expertise, stock levels and economies of scale advantages to the local market itself. Their range of service provisions is vast; particularly in Greece and Cyprus – the team works with the Hellenic defence departments to overhaul their MTU engines Melita Marine Group proudly represents.
Superyachts, one of the several pivotal pillars encompassed by the Melita Marine Group, generate large values of income to the Maritime industry and to our economy at large.
MARINAS
The Melita Marine portfolio also includes operating the Mgarr Marina in Gozo. The last ten years have seen marinas expand in various locations around Malta – most of the berths made available where quickly taken up. Should there be more marinas in the northern and southern parts of Malta? Mr Balzan asserts that although the feeling is that there is a need for growth in this area, this question can only be answered sincerely once a detailed study takes place. At time of going to print, it was hinted that Melita Marine would shortly be announcing further expansion within the Mediterranean.
the superyacht community is environmentally conscious. That is why we have chosen products and undertaken projects which reflect this mindset
SUPERYACHTS
He reiterates his belief that the industry’s growth is also highly dependant upon the indirect services – entertainment, locations, accommodation – this is what superyacht owners look for – and this is what is required for Malta to reach the level of the best locations in the Mediterranean. “The superyacht industry seemingly has not been affected negatively by past recessions. Delivery levels have been more or less the same and owners are all out to get a positive experience at sea and of course on land,” he adds. Though Shipyards and superyachts are synonymous with Melita Marine, yacht painting is another huge sector for the company. Apart from representing Awlgrip – an outstanding brand having a large range of super yacht quality paints, Melita Marine has established a local team of veteran yacht painters whose work portfolio has seen them work locally and internationally on a wide range of yachts up to 100 metres and over.
Mr Balzan stresses that this choice of brand was not just about having a large range of tools to work with but also about being environmentally compliant. These products combine thermo plastic covering and carbon filters in order to circulate the air inside and minimise extraction of harmful elements from the system. “Perhaps contrary to what people think, the superyacht community is environmentally conscious. That is why we have chosen products and undertaken projects which reflect this mindset,” he proudly added.
POWER GENERATION:
Rolls Royce/MTU, Melita Power Diesel (MPD) and On-Site Energy
Melita Marine’s expansion in Greece, Cyprus, Spain and Libya eventually led to Melita Power Diesel (MPD) being setup. MPD is the appointed exclusive distributor in various regions of the Mediterranean for MTU – the main brand of Rolls-Royce Power Systems AG, which is the world’s leading provider of high and medium speed diesel, and gas engines, distributed energy and fuel injection systems. “This grants MPD, and Melita Marine as a whole, unbridled expertise and the most stable, advanced and economically feasible solutions from this Rolls Royce subsidiary”. Rolls Royce have been generating power for the world for countless of years and Melita Marine tap into this unparalleled source of quality and technical expertise in order to offer new fuels, traditional fuels, and hybrid solutions to individual landbased installations and entire swathes of regions alike. “Our microgrid solutions are a viable means of detaching substantially large areas from dependence upon the main grid – the end results being green and self-sufficient,” Mr Balzan proudly adds. The company subsequently expanded its services to Libya and Greece and very soon will be operating in Cyprus too.
Melita Power Diesel is quite different from your typical power generator company. Their new technology has combined solar and wind energy channels with a backup combination of gas and other traditional fossil fuel solutions.
MPD furthermore encompasses MPD Onsite-Energy, a Research & Development specialist organisation that is at the forefront of technology breakthroughs in environmentally- friendly power generation that includes the tapping into other forms of energy such as hydrogen, and the assimilation of micro grids and hybrid solutions which serve specific clusters within regions and countries.
ENGINEERING
One of the pillars which today support Melita Marine Group is its engineering division. Backed by Rolls Royce and MTU, Melita Marine expertly executes all kinds of mechanical, electrical and automation engineering solutions.
Electrical solutions also include the custom design and manufacture of heavy-duty electrical switchboards. “We are able to deliver projects in time and at a high quality standard. Our team of engineers closely monitors the process to ensure that industry standards during manufacturing stages of switchboards are fully met, and that the job is delivered in a timely manner and free from faults,” Mr Balzan clarified.
Our microgrid solutions are a viable means of detaching substantially large areas from dependence upon the main grid – the end result being green and self-sufficient
The range of engineering services includes electrical fault finding and the design, assembly and reinstallations of complete, new wiring harnesses. He continued explaining that “a short could cause electrical failure to mission-critical components, or far worse, a fire. This is why it is of paramount importance that ships as well as locally-based infrastructures ensure that their electrical infrastructures are fully compliant to the necessary standards of quality, efficiency and health & safety.”
MPD’s well-structured and equipped facilities in Malta deliver a fast, meticulous service using the latest techniques and testing equipment. “Whether it’s a specification for a new build, a Refit project, a report for insurance purposes, or to diagnose a generic problem such as harmonics disturbances or corrosion issues, our team of experts is ready to support our customers globally.”
BECOMING A GLOBAL PLAYER | 2030 STRATEGY
With a background in the finest traditions of yachting professionalism, Melita Marine’s goal is not only to set standards for ensuring customer satisfaction but to also expand further beyond our shores, widening boundaries to become an even bigger player in the worldwide marine industry.
it is of paramount importance that ships as well as locally-based infrastructures … are fully compliant to the necessary standards of quality, efficiency and health & safety
It is explicitly clear that Melita Marine has no intention of slowing its momentum – in Pierre’s own words – “we will always continue pushing forward!”
Melita Marine places a very strong emphasis on building the highest competences within all the organisations’s departments and entities – expanding each area to its full capability before moving onto the next. All this is part of what the Group refer to as its 2030 Strategy.
Whilst the recent covid circumstances have forced a change in pace for several businesses, Mr Balzan feels that “Melita Marine has navigated through these waters with little change to the company’s long term plans.” The Group will of course be carefully assessing their environment month by month.
The dreams are ambitious. And there is confidence that they will continue coming to fruition. A careful, and gradual yet bold strategic approach will remain being the Group’s mode d’emploi ; based upon careful analysis of market requirements and circumstances, understanding the requirements, and of course assessing and taking well calculated risks; pushing ahead in constantly corroborating their levels of expertise, capability of providing complete customer satisfaction; and spearheading the best means of providing their services.