Cavotec looks to the long term despite revenue slump


Focus switched to large scale operations

MoorMaster orders extend to Australia, Canada and Demark

Cavotec have announced a 17.4 percent decrease in overall revenue for the fourth quarter of 2013 as sights shift from day-to-day developments to large scale operations.

In a statement, Cavotec CEO Ottonel Popesco noted that 2013’s end of year operating result was influenced by a drop in overall volumes and higher operating costs.

Whilst quarterly revenue amounted to €55,220 in 2013, 17.4 percent less than that of 2012, order books reached record highs, at €115,713.

These costs come as Cavotec begins to invest heavily into its large scale, long-term projects.

While the port and maritime industry is expected to maintain a lower overall growth, investments in new technology have continued to grow exponentially.

This includes the successful procurement of three orders worth €28 million for their MoorMasterTM automated mooring systems.

The systems involve mounting remote controlled vacuum pads onto the quayside or on pontoons. They are used to moor and release vessels in seconds.

The contract, which will involve supplying systems at applications in Australia, Canada and Demark, is seen as one of the largest projects ever to be completed by the company.

Each order incorporates three distinct types of application – lock, Ro/Ro ferry and bulk handling. Cavotec will be involved in the installation, servicing and commissioning of all projects.

In Denmark, Cavotec will complete orders of two MoorMaster MM400 units that will be used in conjunction with a newly built LNG passenger/vehicle ferry. The vessel will be used in services between Hoy, Jutland and Saelvig, near the island of Samsoe.

Similar MoorMaster units have been in operation at the ports of Hoy and Saelvig for the last 5 years. These units are to be relocated to ports Ballen and Kalundborg under Cavotec’s supervision and continue their usefulness.

Cavotec has also been contacted to support the installation and commissioning of eight MoorMaster MM200B units for the dredging company Jan de Nul at a bulk handling operation located in Australia.

It is the project to fit St. Lawrence Seaway, Canada, that stands as the largest to date with MoorMaster as it is one of the largest single projects ever to be handled by the company.

Under the terms of the contract, Cavotec will manufacture and deliver 39 MoorMaster MM400L units for 13 units located across the seaway. Cavotec will also supply the related rail structures on which the units will be mounted.

The project will be overseen by Cavotec engineers who will be involved in delivery, installation and commissioning of the units.

As in Denmark, several MoorMaster units have been in operation at St. Lawrence for a number of years. These specially adapted units were designed to hold vessels securely up to depths of 14 metres.

Bruce Hodgson, director of market development at the St. Lawrence Seaway Management Corporation said: “With the implementation of Cavotec's equipment, we are looking forward to welcoming more Seaway sized vessels from the world's fleet, as vessel operators will no longer need to equip their ships with certain Seaway specific fittings. This will increase our access to the global fleet. Easing access to the Seaway carries the prospect of bringing more tonnage into our locks.”

With such large returns expected over the coming financial year, Cavotec are expecting to see a return to stable operations with steady growth. Whilst they foresee a slow start with lower revenues in the first quarter of the financial period 2014, they have set a target of €250 million and an EBIT margin of eight percent.

This includes explosive growth in the America’s where management expects double-digit rate growth for 2014.

Daily Email Newsletter

Sign up to our daily email newsletter to receive the latest news from Port Technology International.

Supplier Directory

Find out how to get listed

Webinar Series

Find out how to attend

Latest Stories

Cookie Policy. This website uses cookies to ensure you get the best experience on our website.