Press Release

06/06/2008 - To download the Press Release Click Here [PDF]

Following the acquisition of the majority shareholding of Tug Malta Limited from Malta Government Investments Limited, as agent for the Government of Malta, in July 2007, the new majority shareholder – Rimorchiatori Riuniti SpA of Genova, Italy – has taken some important decisions to establish Tug Malta as a leading player in the central Mediterranean and beyond as far as towage and ancillary services are concerned.

Tug Malta operated successfully for a number of years and in 2006, took delivery of two powerful 68-tonne Bollard Pull tugs, newly built for the Company by Damen Shipyards Limited of the Netherlands, and this because of the ever-increasing size and number of container-ships using Marsaxlokk,  necessitating the posting there of three powerful tugs at all times.  Today the Company may boast that it is offering an efficient and cost-effective service for vessels calling at Malta and who wish to utilise the towage services offered by the Company.

As everyone is aware, most ship-owners view tugs as a necessary evil.   In some European ports, towage is either compulsory or minimum tug requirements are laid down.  In Malta, we have a table of tug norms which has been established in consultation with the Malta Maritime Authority, but which is only a guideline for pilots and/or ship masters who are ultimately responsible if tugs are used or not.

However, a Ship’s Master choosing not to make use of tugs needs to be very aware of the risks, as the slightest error could result in damage to his vessel, to other vessels, or to the ports’ infrastructure, and may also result in the tugs being summoned after all for salvage.

Towage rates in Malta are officially regulated by the Malta Maritime Authority through Towage Tariff Rates and Conditions made public by a Legal Notice.  These rates are based on a scale of Gross Tonnage (indicating the size of the vessel), the number of tugs used, and the duration of the move.  To encourage its major clients, the Company allows rebated rates to shipowners whose vessels call frequently at Malta.

Local towage rates are well below those charged in other Mediterranean Ports, and so Tug Malta is very competitive.  Tug Malta will keep investing in the more powerful tugs that will be needed to serve more efficiently the types of vessel using Malta's harbours today.

Following an international call for offers in September 2006 in order to identify a strategic partner, who could “add value” to Tug Malta’s operations in Malta as well as in the Mediterranean, in July 2007, Malta Government Investments Limited sold its 73% shareholding in the Company to Rimorchiatori Malta Limited, a company of the Rimorchiatori Riuniti SpA group of Genova, Italy, established in 1922 and today involved in Towage, Shipping Activities and Maritime Logistics in Europe and South America. 
 

At the end of October 2007, the new Board of Tug Malta Limited met in Malta for the second time under the new shareholders.  Present for the meeting were Directors Dott. Giovanni delle Piane, President of Rimorchiatori Riuniti S.p.A., Dott Gregorio Gavarone, Managing Director and Chief Executive Officer of Rimorchiatori Riuniti S.p.A., and Ing. Riccardo Biale, Executive Director of Rimorchiatori Riuniti S.p.A.     Also present were John E. Sullivan representing one of the minority shareholders, who was re-appointed Chairman of the Company, Dr. Richard Camilleri LL.D. and Mr. Godwin Falzon ACCA.   The other minority shareholders were represented by Mr. Charles J. Farrugia and Dr. Andrew Zammit LL.D.

At the Board meeting a number of improvements made to date were reviewed.  A substantial investment has already taken place in I.T. equipment, enabling Tug Malta to be fully linked to the Group of Companies.

Some very important decisions have been taken to expand the fleet.  It has been decided to build, in a leading European shipyard, two new vessels, with the aim to develop offshore services in North African countries and in the Mediterranean Sea in general.  The first vessel is an 80 tons Bollard Pull Harbour / Escort/ Anchor Handling tug primarily designed to operate in the Maltese Harbours and their approaches.  The tug will be fully equipped with Fire-Fighting Class 1, Oil Recovery and Salvage Equipment, in order to be prepared for any emergency that may occur in Maltese waters, or in the Mediterranean Sea.  The vessel is due to be delivered in December 2008, and will be equipped with Voith Schneider propulsion and twin MAK main engines able to give a total power of 7.180 BHP.

The winch installed on board is a double drum in waterfall arrangement, having the upper drum for long distance purposes with a drum capacity of 1000 m steel wire rope and a pull of 80 tons, and a lower drum divided into two sections, one for escorting purposes (capacity 250 metres of synthetic rope) and one for harbour towing (capacity 150 metres of synthetic rope).

The second vessel, an Anchor Handling Supply Vessel with delivery due in April 2010, is a MOSS 424 Mark III design with a DWT of 3100 tons, and will be equipped with 4 Main Engines (Bergen) with a power of 19.000 BHP able to give a Bollard Pull of about 210 tonnes.  The vessel will also be equipped with a Fire Fighting system Class 2, Dynamic Positioning 2, and Oil Recovery capability, in order to match the technical/operational requirements coming from offshore operators.  The winch installed on board will be an Anchor Handling winch with two drums with a capacity of 5400 metres of 77 mm wire rope, with a pull up to 400 tons, and a secondary winch with two independent drums with a capacity of 800 metres of fibre rope of 203 mm and a pull of 90 tons.  The vessel will also be able to carry typical liquid and dry cargo necessary for rig operations and 1200 tons of cargo on a deck area of 600 square metres.

The total value of these two investments will be of over 50 million Euros (€50,000,000).  This investment is coming hard on the heels of the investment already made by Rimorchiatori Riuniti Group when purchasing Tug Malta Limited from the Government of Malta in July 2007.   Both contracts for the ordering of the tugs have been signed recently.    It is foreseen that the financing of the first vessel will be done in Malta.    A leading local Bank has shown a keen interest.

A training programme for Tug Malta’s tug crew members represents one of the most important goals of the Group.   The programme is in process, and will be divided into two parts: one on theory (manuals and special courses) and one on practical (on board the tugs with Group personnel) for familiarization with the new equipment.   The aim is to reach a high level of professionalism for the Maltese crews for towage and offshore services.

The new shareholders of the Company have confirmed that the Maltese management of Tug Malta will continue to run the Company within the Group, under the direction of the Chief Executive Officer, Ray Miller.

The management structure of the Company is being strengthened, and total quality management is the aim.   The Company has developed manuals of procedure for all its operations, and a comprehensive Health and Safety policy for all its employees, especially for those operating the tugs, both when at sea and in port.

The Quality Management Systems introduced into the Company have certainly improved the efficiency of Tug Malta, and in January 1999 were certified as complying with the ISO 9002 : 1994 quality standards by Bureau Veritas Quality International, an internationally-accredited certification body. They have been upgraded to the new ISO 9001: 2000 standard in 2005.

A member of the European Tug Owner’s Association and the International Salvage Union, Tug Malta actively participates in the workings of these two international bodies.  The next Annual General Meeting of the International Salvage Union is due to be held in Malta in September 2008.

Tug Malta is today proud that, as a member of the Rimorchiatori Riuniti group, it can offer a better, more comprehensive, more efficient and extremely economical service to all tug users, and that it remains an indispensable link in the chain of services offered by the ports of Malta, which have become an international Maritime ‘hub’ in the centre of the Mediterranean.

03/12/2007 - To download this article Click Here

Signing Ceremony for the Share Sale Agreement in Tug Malta Ltd (MIIIT)

The acquisition of Tug Malta will provide the Rimorchiatori Group with an excellent opportunity to come back to a market that we had abandoned several years ago. This was said by Giovanni Delle Piane, President of Rimorchiatori Riuniti S.P.A during the signing ceremony of the Share Sale Agreement in Tug Malta Ltd. between the company and the Government. “It is our aim is to have another success story here in Malta”, he added.

The ceremony was presided by Minister Austin Gatt, who in his speech said that looking back over the past 4 years, Government moved out completely from the maritime sector. Four years ago Government controlled most of the maritime sector as it owned the Freeport, Sea Malta and Tug Malta.  Because we believe that these are areas where there should be space for the private sector today we are out of all these sectors. This is essential if we want to have a competitive economy.

Minister Austin Gatt said that we believe that Malta’s strategic position gives us a natural advantage in logistics and maritime sectors. We should leverage on this fact and we can only do this by attracting an international player to invest in Malta because they share our beliefs.

In the meantime, in his concluding marks, Minister Austin Gatt said that as the documents related to the privatisation which, will be tabled in Parliament will show, the company scored excellent in all categories. The speech by Delle Piane showed the commitment of the company and the vision for the future.

Mr Delle Piane, in his speech said that the company is strongly committed to invest and develop the three sectors of harbour towage, offshore towage and international shipping and we have a sound financial situation that will enable us to do this. He added that in fact, acquiring Tug Malta shall enable us to develop two of the three sectors where we are present the harbour activity and the offshore activity.

Delle Piane emphasised that due to the central position of Malta in the Mediterranean Sea, the outlook for the off-port towage, including salvage emergency and anti pollution activities on the route between Gibraltar and the Suez Channel is also very encouraging due to the increasingly growing traffic. He added that as far as the offshore activities are concerned. These activities include assistance to oil rigs and sub sea construction on the Northern African countries, these show a great deal of potential.

This is due to the fact that according to recent studies, the demand for specialized vessels like AHTS and PSV from local and international oil companies will increase rapidly. In this respect the ideal position of Malta is such that it will be able to provide vessels at a very competitive price, having the advantage of cost savings for mobilization and demobilization, as compared to a relative remote location such as Genoa.

As regards the plans for the company he said that Rimorchiatori Riuniti shall invest over 22 million euros in two new tugs, and shall also purchase equipment in order to upgrade some of the existing tugs in order to make them more versatile. Apart from the investment in Tug Malta,  Rimorchiatori Riuniti shall also update and train existing seafarers of Tug Malta in order to achieve the necessary qualifications to perform the new activities outside of the Maltese coast. The company will also develop local commercial functions within the network of the group to acquire new orders and it shall also develop the offshore activity by means of two high sea vessels that will be chartered from the parent company and that shall be employed in assistance to oil rigs located off the coasts of North African countries such as Libya and Tunisia.

Mr Delle Piane also announced that the holding company Rimorchiatori Malta Ltd. that we recently incorporated for the purpose of acquiring the shares of Tug Malta is willing to invest even further, beyond the commitments and undertakings we have made with the Maltese government. In fact he said that “we intend to form a subsidiary that will acquire a new built off-shore vessel, for a value of approximately 40 million Euros that will become the flag ship of the whole group. In fact this vessel is currently one of the most powerful vessels ever seen in the Mediterranean, and is currently being built by a Spanish yard “Armon S.A.”. This is proof of our willingness to develop and invest further in your beautiful island, Malta.

18/07/2007 - To download this article Click Here

Eleven International Firms Collect Request For Proposals (MIIIT)

The process for the sale of Government Shareholding in Tug Malta Limited got underway. Eleven highly reputable companies in the towage and salvage operations have signed a confidentiality agreement with the Privatisation Unit and collected the Request for Proposals (RFP) document.

The RFP outlines what is expected in the detailed bids that these companies should submit for the acquisition of Government’s 73.72% shareholding in Tug Malta.

The level of service which Tug Malta offers to the local harbours is today secured by recent reforms and regulated by newly revised legislation. The Government feels there is no longer any scope to hold shareholding in the towage business. The introduction of a strategic investor will allow Tug Malta to grow in its next phase of development, which will invariably result in positive spin-offs in our maritime sector.

The company was nationalised out of the private companies that used to run the service prior to 1980. Up to the late eighties, the Grand Harbour was the only shipping harbour in use and as such the Company had all its tug fleet stationed there. However, in 1989, with the development of the Malta Freeport, the company had to invest in additional tugs in order to be able to offer an efficient service to tug users in the southern port. 

In the last three years Tug Malta underwent a restructuring process that has allowed it to upgrade its service to provide for the first time harbour towage in Valletta and the Freeport on a 24-hour basis. Operating and administrative expenses were curtailed substantially since then. In 2005, the tariffs, which were and will continue to be regulated by Government, were revised though they remained amongst the most competitive in the region.

This year, Tug Malta took delivery of two new tug boats.

To be able to expand into international markets, Tug Malta needs to continue to renew its fleet. This requires a substantial investment together with the capacity to take on the new risks of expansion into new markets.

The Government expects that the conclusion of the privatisation process will ensure continuous, reliable and timely harbour towage services within the Maltese ports. It will also seek market development opportunities outside the local harbours including offshore towage and salvage operations in the Mediterranean. The strategic partner to be identified should bring in new competencies in key functions such as marketing and business development, implement new management systems, acquire market knowledge and build up a network of contacts with ship-owners and salvage associations as well as improve the operational efficiency of the Company, maximise the proceeds from the sale of shares, secure the best possible terms for the existing employees of the company and maximise the benefits to the Maltese economy through increased investment opportunities.

The Government will be making further announcements on the privatisation of Tug Malta in the conclusion of future stages of the process.

16/10/2006 - To download this article Click Here

Naming Ceremony of Motor Tug WENZINA (MIIIT)

On 19 September, Minister Austin Gatt presided over the naming ceremony of a new tugboat for Tug Malta.  He said that the launch of this tugboat was taking place at a crucial moment for Tug Malta, as it was coinciding with the beginning of the privatisation process of the Company.  In fact, a call for expressions of interest was published on 10 September.

This Tug has been named ‘WENZINA’ after St. Lawrence being the patron saint of Vittoriosa, a city lying on one of the sides to the Grand Harbour.  This is the second new tug purchased by Tug Malta this year.  The first tug was christened in April and named ‘PAWLINA’ after St. Paul the patron saint of the harbour side  of Valletta.

Minister Gatt explained that privatisation is a natural development for Tug Malta, as tug operations were initially carried out by private Companies up to 1980, after which these were nationalized. Until the late 1980’s,  tug operations were only carried out within the Grand Harbour, where all the tugboats were based.  When the Freeport started operating in Marsaxlokk new tugs were needed. Tug Malta through its own resources started  adding more tugs to its fleet and in 1989 purchased MT ‘VITORIN’ and MT ‘GREZ’, a process which has continued up to this date.  The Minister further explained that it was now time for Tug Malta Limited to embark on new activities, including international salvage operations and towage in other regional ports.

In order to be able to tap such potential business, the Company needs to invest in specialized tugs and equipment.  However, the Government wanted to attract private investors rather than take any possible risks using public funds.

Privatisation will offer an opportunity to improve the Company’s level of competence and quality of service, and therefore Malta’s competitiveness.  This can be achieved not only by simply attracting an investment, but by attracting a strategic investment through someone who has the expertise to expand the Company and turn it into a hub in the Mediterranean region.

Minister Gatt explained that Tug Malta is doing well as it managed to turn a marginal  loss in 2004 into a profit of Lm671,000 in 2005, with the same level  expected to be maintained this year.  These results helped the Company to keep on investing in more modern and efficient equipment in order to continue offering its clients a better service.

Minister Austin Gatt concluded that he believes that Tug Malta can be a maritime hub in the Mediterranean, and can be another link in the improved competitiveness of the Maltese ports, as are the new services offered by  Malta Shipyards, and the process of expansion that the Freeport has undergone since privatization.

The tugboat ‘WENZINA’ was christened by the Minister’s wife Mrs. Marisa Gatt, and was blessed by Canon Joe Caruana, Archpriest of St. Lawrence parish of Cospicua.

19/09/2006 - To download this article Click Here

Naming Ceremony of Motor Tug PAWLINA (MIIIT)

Motor Tug PAWLINA, the latest additional to the Tug Malta fleet, was christened on the 6th of April 2006 by Ms Carmen Psaila, Director of  Tug Malta, in the presence of Minister Austin Gatt, at an inauguration ceremony at Pinto Wharf Valletta.

The PAWLINA is one of the more powerful tugs one finds employed in Mediterranean and European Ports and Terminals, and will definitely improve the service offered by the company. 

The PAWLINA, with a Bollard Pull of 68 tonnes, is powered by two Caterpillar engines having a total power of 5600 brake horse power or 4180 kilowatts and she is highly manoeuvrable due to the two Azimuth thrusters which operate in any direction.

She is equipped with state-of-the-art machinery and equipment, including a double drum winch at the bow as well as two fire-fighting pumps and monitors. As a result of these capabilities, she is classed by Lloyd’s Register as an “Escort” and Fire-fighting Tug – Class 1.

Minister Gatt thanked the board of directors and the workers for the successes of the company that lead to a situation were Tug Malta finances its investments without Government support. Minister Gatt explained that Tug Malta offers an essential service to Maltese ports and therefore to our economy.
The Minister reiterated the intention of Government to find a strategic partner for Tug Malta. In fact, an international call will be published in the coming months, he added. The idea behind an international investor is for the company to be able to enlarge its operations on an international level, while keeping its present obligations to the local harbours.

The Company’s Chairman John Sullivan, said that the tugboats similar to the PAWLINA are manned by a crew of three to four in European ports.  In Malta the tug will be manned by a crew of four and the Company has already initiated discussions with the Union and its employees for all omni-directional tugs to be operated with a crew of four persons.  This will be achieved over a period of four to five years by natural wastage.  Mr Sullivan thanked DAMEN Shipyards of Holland, for all the assistance given to Tug Malta’s personnel during the construction phases.

The naming ceremony of the Tug Boat was followed by the blessing which was carried out by Canon Alfred Camilleri, Archpriest of San Pawl Nawfragu, Valletta.

06/04/2006 - To download this article Click Here