Sea views: Bureau Veritas, Rina agree to form alliance

After months of speculation in the maritime industry, Bureau Veritas (BV) and Registro Italiano Navale (Rina) have agreed to form an alliance that will still retain the individual identities of each classification society.

In a move that was not unexpected, a letter of intent was signed in Rome, last Friday, which set a period of ninety days for due diligence and to finalise the details of the arrangement. It is expected to give Rina a controlling shareholding in Rina's marine business while BV will take a controlling stake in Rina's industrial and certification business. The initial focus will be on technical co-operation in the marine sector.

Executive vice president of BV, Bernard Anne was quoted as saying, "We are very pleased to have reached an agreement with Rina which will build on our experience of working together in Unitas, and which will form the foundation of a future world ranking European classification society.

"Italian shipowners will benefit from the technological co-operation and worldwide network which BV can bring to the alliance. We are confident that our experience in the industry and certification sectors will help Rina widen its range of services and create more employment in Italy."

Nicola Squassafichi, chief executive of Rina, said, "We concluded over eighteen months ago that it would be in the best interests of our clients if Rina could form an alliance which would strengthen our global outreach. At the same time, we wanted to ensure that Rina's unique skills and wide experience would be retained and our proud tradition preserved. This alliance with BV will strengthen Rina and help us grow, which will benefit our clients and staff."

Meanwhile, in a separate press release, the American Bureau of Shipping (ABS) announced that it had withdrawn from negotiations with Rina, citing irreconcilable differences in the structuring of a proposed alliance and quoting chairman and CEO, Frank J. Iarossi, as wishing Rina and BV best wishes for success in their joint venture.

ABS and Rina had spent more than one year exploring possible ways of formulating a co-operation arrangement that would have strengthened the services offered to Rina's core constituency of Italian shipowners.

Iarossi commented, "Throughout, we always had the interests of the shipowners at the forefront of our discussions, we constantly sought their advice on what would be the best administrative and operational structure to enhance the level of classification services available to them."

ABS has maintained an office and operations in Italy for nearly 80 years with its current headquarters in Genoa. "We already count many Italian shipowners among our clients and members," said Iarossi and he added, "Although it has not been possible to conclude an arrangement with Rina, I can personally assure these owners that ABS will continue to develop and offer the highest quality classification services for them and their colleagues. ABS is fortunate to enjoy an esteemed reputation in this market, and we look forward to serving the vibrant Italian maritime community in the future."

In addition to the BV/Rina announcement, other classification societies have been posturing themselves for similar developments, although, so far, without firm arrangements being made.
Last December, the chairman of Lloyd's Register (LR) David Moorhouse, admitted to Fairplay Magazine that LR was negotiating with another society that had been targeted by LR and which was "willing to talk". Talks had apparently been taking place for several months and at that time it was hoped that an announcement would be made in the New Year.

So far nothing has been announced. Earlier, on 1 November, it had been announced by Det Norsk Veritas (DNV) and Germanischer Lloyd (GL) that exploratory discussions over closer co-operation had ended without agreement.

A press release by GL, at the time, said that differing views on how to maintain the independence of the two societies were the grounds for ending the discussions. Against this backdrop, the possibility of concentrating the maritime business of both societies within a joint operation subsidiary turned out to be unfeasible.

Changes were probably inevitable due to the natural progression of time and the changing needs of the industry. This notwithstanding, the sinking of the 'Erika' was the watershed for Rina, as was that of the 'Leader L' for Polski Rejistr Statkow (PRS) which suffered expulsion from the International Association of Classification Societies (IACS) as a result.

A subsequent appeal by PRS for readmission has been turned down. In the very least these accidents (and others) did initiate maximum self-assessment by IACS and its members, and there are some who will say, not before time. For the shipowner, the next few months will be a 'wait and see' time but one thing is probably certain, merger is the trend and fewer 'global' societies the norm for the future.

Lloyd's Register announces senior appointments

Lloyd's Register (LR) has announced several new senior appointments in its three regions, which took effect from the start of the year. Willem de Jong, former regional director of the Europe, Middle East and Africa region, has been appointed deputy chairman of LR, prior to his retirement in April 2001.

He is to take the lead role in the revision of LR's constitution and its global committee support structure. He joined LR in 1963 as an electrical engineering surveyor in the Rotterdam office and worked up through the company to become MD of LR's Marine Division in 1998 and was responsible for all LR's classification and ship-related business.

Following a major reorganisation in February 2000, he was subsequently appointed regional director of Europe, Middle East and Africa until his final move last December. His replacement for the Europe, Middle East and Africa post is David Rule, former operations director for Asia. Rule joined LR as a trainee surveyor in 1971, after gaining a BSc in Naval Architecture and Shipbuilding.

He is a chartered engineer and prior to his last Asian appointment had held various international positions for LR. The former operations director of the Americas, John Stansfeld has transferred to Asia to be replaced by US national Paul Huber.

Frank Kennedy is a marine consultant based in Dubai.