Watch salvage and wreck removal experts discuss consolidation in the industry. See the transcript below.
John Witte, President of the International Salvage Union
“I believe that it will have a positive effect, but again, only time will tell. The only real consolidation of major players in the last few years has been the Titan-Svitzer merger to create value. Whether or not that continues as a trend, we’ll see.”
Rupert Bray, Marine Services Director at Swire Salvage
“Consolidation is always an interesting one. I think that it’s inevitable, it’s nothing to be scared of. It’s often a sign of maturity in whichever industry it’s happening, so that it’s happening in the salvage industry shouldn’t surprise us and we shouldn’t fear it. It’s a natural course, the evolution and development of an industry. So what do I think of it?
“I think so far it’s been very beneficial. It’s taken out some capacity. There is an oversupply here in the salvage industry so I think it’s good so far.”
Ronald Lafeber, Van Heck BV
“Well, given the reduced number of salvages, I think it’s a good thing. Although it doesn’t really affect my company, I think there are too many players worldwide.”
Tony Goldsmith, Partner and Master Mariner, Hill Dickinson
“I don’t know if it’s good or bad. I think it’s just inevitable, really. Certainly in Singapore and in Asia, there is a lot of competition, and salvors will say there is too much competition, so consolidation helps to deal with that. There are fewer salvages, fewer wreck removals; there is, therefore, a need for the salvage companies to invest a lot of money and have kits and personnel standing by, waiting for the big jobs to diversify into other areas, and / or merge with other companies. This way, they can get the benefit of scale and still maintain what they need to do, maintain personnel and sufficient kits to be able to respond to casualties when they arise.”
Joshua Allsworth, Project Manager, T&T Water Solution
“I think it’s a good thing, as I’m sure you’ve heard, being here at Salvage & Wreck Asia, there are a lot of salvors and not many salvage cases at the moment. There are about 9 big salvors in the world and amongst the members of the ISU, but there are about 50+ members. So among those nine, they probably have enough kit to deal with almost anything, and anything that they haven’t got kit to deal with, they can do together. We’ve seen consolidation with Arden a few years ago and bringing the big companies together is going to enable the salvage industry to deal with bigger and bigger ships.”