INTERVIEW | Antonio Palumbo: ‘One of the best shipyards in the world’

You are in the business of ship repair and refitting, as well as ship and yacht building. What is your focus in Malta?

Our focus in Malta covers all naval activities – from maintenance, to refitting, to the transformation of all types of ships. Our shipyard is not specialised in a particular sector – we deal with all kinds of ships, from offshore vessels, to yachts, tankers, cruise liners and Ro-Ro ferries.

In the nine years that we’ve been operating in Malta, we have done work on all these types of vessels.

We’re also always up to date with the requirements imposed by the International Maritime Organisation, including those related to limiting emissions in the atmosphere. In fact, we recently secured a €6 million international contract to refit three Ro-Ro passenger ferries with fuel cleaning systems – known as scrubbers – which meet new environmental shipping rules.

How is the superyacht business doing, in general? And when might we perhaps see the first Palumbo superyacht built in Malta?

Contrary to popular perception, Malta is not on any central path used by superyachts. So attracting around 40 to 50 superyachts a year to Malta,  which are over 50 to 60 metres in length to the shipyard – something we are succeeding in doing – is quite a feat. We are confident these figures will continue improving and we are investing all our energy to surpass these numbers. We are working on presenting our shipyard as a superyacht-refitting village, the only one of its type in the world. So, apart from our competence and technique when it comes to what we do, we are also offering servicing and logistical facilities, ranging from hotel accommodation to a gym, spa and a shop selling nautical-related equipment.

In terms of when a Palumbo superyacht will be built in Malta, this is something I often think about,  but, unfortunately, the construction of a superyacht is a bit complicated. It requires a highly competent sub-contracted workforce. We have to keep in mind that we need to be competitive in such an endeavour, so I think we still need more time. But the right conditions exist, and its one of the objectives I have set my sights on.

Do you still believe Malta can benefit from repairing US Navy vessels if we had a Status of Forces Agreement with the United States?

A SOFA agreement would allow US Navy ships to come here for repairs, further contributing to the shipyard’s growth. But this is a very sensitive subject, so I am cautious not to say anything that can be misconstrued.

When you started your operations in Malta, had you been given any indication that the process to obtain a SOFA would have been facilitated?

No. Before I started operating in Malta in 2010, I knew that important repair work had previously been carried out on US Navy ships on the island. So it didn’t cross my mind that the country had no such agreement. I later became aware that SOFA was unfortunately, not in place. But we hope things can improve in this regard in the future.

How many full-time Maltese employees do you have?

The number of employees has decreased slightly, because some workers have retired, while others have found less strenuous work. We have around 70 to 80 full-timers at the moment.

Are your operations in Malta still financially viable, or might we see Dock 1 eventually transformed into a tourist attraction or something unrelated to ship building?

I hope this won’t be the case, because it would mean we didn’t do our job well. Having been in this sector for 50 years, we are determined to propel our activity into the future. We are buoyant about the future of this shipyard.

What are the challenges your shipyard in Malta faces?

Every day presents its own set of challenges. However, this ensures that we are always prepared to react and to be competitive when it comes to solving any problems which come our way.

In Italy you compete with other major shipyards. What can Palumbo offer to Malta which other ship builders cannot match?

Compared to other shipyard locations, Malta is situated at a central point in the Mediterranean. Location is crucial for a shipyard’s activities. Let us not forget that one of the docks here is 362 metres in length and is one of the best in the Mediterranean. Moreover, the country offers important facilities.

Palumbo has eight shipyards around the world, including the one in Malta. The Malta shipyard is the control centre of the entire network.

Are there challenges when it comes to finding workers?

It is a problem. In Malta, we find it hard to find local people with the necessary skills, so we have to rely on foreigners. It takes us about two months following a call for applications before we can find anyone, and this situation isn’t limited solely to Palumbo – it is happening across the board. The country needs to provide qualified workers more rapidly.

What does the future hold for Palumbo in Malta?

I have an idea germinating in my head and I believe that in two to three years’ time this shipyard will witness a very important development. Let us say that the shipyard will become not just close to the best, but one of the best in the world. We are committed to making this happen, and in two to three years the shipyard will enjoy the full success of its potential.

Can you provide more details on what your idea consists in?

(Laughs). No, this is my secret for the time being.

What is the biggest lesson you’ve learned – positive or negative – since you started operations in Malta?

When I started our operations in Malta, I realised from the outset that I had to adjust to the reality on this island. In previous years I took some very, very important decisions. At the same time, they were also very courageous things to do, which I cannot imagine repeating now, because they would put at risk all that I have achieved. However, nobody ever showed me any recognition for them.

In Malta it has been different. Just a month after we started operating in here, we carried out an eight-day job on a ship. For me, this was a very normal job that didn’t require any particular effort. So I was quite surprised by the appreciation we received for this. In contrast, for instance, when my shipyard built a new 160-metre ship [in Italy], no one praised me for my good work. In Malta, I carried out this standard eight-day maintenance job, and I received letters complimenting me for the work.

Therefore, I wondered why such contrasting reactions existed between Malta and Italy. I then understood that the difference between the Maltese and Italian is that in Malta people communicate better. Italians have many plus points – we are creative – but we do not excel when it comes to our relationship with clients. I quickly understood this when I came to  Malta, and it was a major lesson for me, which I took on board.

I also wanted to ask you about the sentence by the court in Messina, Sicily. You were sentenced to six years in prison in January for illegal dumping of waste – you are appealing this sentence. A spokesperson for Palumbo had said that the company’s business interests in Malta and abroad are unaffected by the ruling. Are you sure about this? Has the company’s reputation abroad not been affected?

I am completely positive that the company’s reputation has not been affected. We know the true facts of the case, and we know the reasons why the imaginative accusation against me was made. Once a court outside of Messina hears the case, it will dissolve into nothing.
In Italy, there are three stages of the judicial process. This judgment was the first stage, and there are then two opportunities to appeal, and we have appealed.

I confirm that the sentence of the first court has had no effect on our business – since the judgment was issued, the company hasn’t registered any slowdown, on the contrary, it’s doing even better and keeps growing in Malta and elsewhere.

There are two reasons I am confident when it comes to this case. The first is that it wasn’t Palumbo who dumped the waste – subcontractors did, and I didn’t have any direct responsibility. Second, all the analyses carried out on the waste showed it wasn’t hazardous.

So what is the case here?

All this transpired because I had the courage to make certain complaints [in Messina] – something I wouldn’t repeat today – because they were necessary to protect my interests there.

And I paid for this through this court sentence.

One thing I’d like to add: while it is normal that I am asked about this, I don’t understand the amount of attention given to this case in Malta.

Why don’t you instead judge me based on the nine years I have been in Malta? When I started my operations, I found a shipyard buried under two metres of rubbish, and it took me years to revamp it.

You can see with your own eyes how it has been changed today. It is on this that I want to be judged, not on what happened in Messina, where I had to suffer a particular situation.

Can you give me a single word to describe the following?

• Doing business in Malta: Great
• Maltese politicians: Good, till now
• Joseph Muscat: [A Prime Minister who] delivers
• The prospects for Palumbo in Malta: Optimistic
• Maltese employees: Professional