Where’s the money from ?
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| Davie Yard on the St Lawrence River near Quebec City |
In previous posts we explore the rebound and challenges of
Davie Shipyard. The venerable shipyard, established 192 years ago sits across from Quebec City, on the St
Lawrence River.
Davie Shipyard. The venerable shipyard, established 192 years ago sits across from Quebec City, on the St
Lawrence River.
The shipyard is projecting a confident
air about them, recently delivering a complex offshore construction vessel to
European operators, with two more being completed, and two other ships on
contract. Running such a capital intensive enterprise such as a shipyard is no
easy feat, and certainly requires deep pockets.
air about them, recently delivering a complex offshore construction vessel to
European operators, with two more being completed, and two other ships on
contract. Running such a capital intensive enterprise such as a shipyard is no
easy feat, and certainly requires deep pockets.
This led me to ask myself; where’s the money coming from?
Most shipyards in the world are somehow, if not fully,
funded by the national coffers. Shipyards are a complex machine, and are an important
resource to any national economy. Davie has had its share of government money
poured into it over the last thirty years. These types of hard financials facts
are actually closely guarded secrets in the shipping industry. They deal with
a ‘whack’ of issues, such as international trade and protectionism, and nobody
really wants anyone to know just what the figures actually are, as their
impacts may be unacceptable socially.
funded by the national coffers. Shipyards are a complex machine, and are an important
resource to any national economy. Davie has had its share of government money
poured into it over the last thirty years. These types of hard financials facts
are actually closely guarded secrets in the shipping industry. They deal with
a ‘whack’ of issues, such as international trade and protectionism, and nobody
really wants anyone to know just what the figures actually are, as their
impacts may be unacceptable socially.
Using my industry knowledge and intuition, and a liberal
dose of assumptions, I surmise that the deep pockets supporting this phoenix,
that is the new Davie Yard could be the massive, US based, private agri-food
multinational, Cargill.
dose of assumptions, I surmise that the deep pockets supporting this phoenix,
that is the new Davie Yard could be the massive, US based, private agri-food
multinational, Cargill.
The trail is
very hard to follow, but at least at some point CarVal Investors, the
investment arm of the US giant, is involved in the Cecon ships, and more. CarVal
currently has USD10 billion under
management in several portfolios, including Special Opportunities…
very hard to follow, but at least at some point CarVal Investors, the
investment arm of the US giant, is involved in the Cecon ships, and more. CarVal
currently has USD10 billion under
management in several portfolios, including Special Opportunities…
CarVal Investors, an independently managed subsidiary of Cargill
Incorporated, is a leading global alternative investment fund manager focused
on distressed and credit-intensive assets and market inefficiencies.
CarVal Investors directs investments across four asset classes: Loan
Portfolios, Corporate Securities, Real Estate and Special Opportunities.
Davie’s parent company is Inocea, and its new management team, I believe, is closely related to
Monaco based VGroup. VGroup has numerous ship centric ventures, most notably
VShips – a worldwide ship management company – and could be characterize as
asset manager.
In 2011, VGroup was bought by OMERS – the Ontario Municipal Employees Retirement Scheme – the bus drivers, city clerks, etc, of Ontario. Here is my blog post about it.
Monaco based VGroup. VGroup has numerous ship centric ventures, most notably
VShips – a worldwide ship management company – and could be characterize as
asset manager.
In 2011, VGroup was bought by OMERS – the Ontario Municipal Employees Retirement Scheme – the bus drivers, city clerks, etc, of Ontario. Here is my blog post about it.
The trail is quite hard to follow with numerous names
involved, which are constantly changing, most are unrecognizable in the
traditional marine industry. But numerous indicators would suggest that
Cargill, is the primary backers of the yard, with the technical expertise done
by VGroup.
involved, which are constantly changing, most are unrecognizable in the
traditional marine industry. But numerous indicators would suggest that
Cargill, is the primary backers of the yard, with the technical expertise done
by VGroup.
Why is this important, it is not really, but you could say…just my curiosity? However as a taxpayer I always like to now what’s going on
with national assets such as these. I have been contemplating the impacts of
this more recently, as I watch the depression continue, and the resulting
“austerity” measures being imposed on the masses.
Meanwhile a select few have continued,
even accelerated, to enrich themselves using these national assets such as
shipyards and ports. But this is for another blog entry, later.
even accelerated, to enrich themselves using these national assets such as
shipyards and ports. But this is for another blog entry, later.
Here’s an article from Sailings Magazine, speaking to the new management team of Davie.
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Ok, After 2 days, I arrived at the same conclusions. A Vicefield is the link but who is the bank? YCM or Carval or who else ?
Comments from a retired Canadian citizen.
Beliieve Canadian Government should analise,= walk out of all contracts so far given to Davie Shipyard
All smells not good
=once in the claws of the Tiger Cargill and others
you are a looser in every way
=Example;
*give a LEASE =life contract of a ship= a=built=maintain=supply personnel=and more=
*this way of doing his not business way of doing
=lease long term =ok=
=personnel Government employees for all position <
=maintenance contract =COST PRICE PLUS 20% = with 2 quotes=
=Contract to built NAVAL ENGINEER OF Government know price
so Government tells SHIPYARD
=PRICE IS XXXX WE ALLOWS 15% overage
=TIME TO BUILT = 3 MONTHS ALLOWANCE
SHIPYARD CHOSEN
GOVERNMENT HAS A COST LIST AVAILABLE BY NAVAL ENGINEERS
*steel-engine-propeller=electronic system=
Shipyard must realise ITS NOT AN OPEN BAR.
UNDERSTAND
=Government a ship there is a price =A ship is one contract Government must enter in books
a life term of 30 years
cost of 30 years to maintain is equal to original cost to built
Personnel Government EMPLOYEES
=GOVERNMENT MUST PROTECT =SECURITY= not give a blank cheque to company with a Life
TIME CONTRACT-
=Government creates its own LEASING DIVISION=
THAT'S the way to proceed
signed a simple retired Canadian, MUST REMAIN PRIVATE PLEASE