Schat-Harding with new opportunities in Mexico

Source: Marine Norway

Schat-Harding representative in Mexico, Duncan y Cossio, is at the fore front of implementing the new IMO guidelines MSC1206 initiative by PEMEX ensuring that the Schat-Harding lifeboats and davit systems installed on PEMEX platforms are always ready for emergencies should they occur.

Following is an extract from the March 2008 issue of Oil & Gas Financial Journal which contains an abstract of an interview between Executive Vice President Schat-Harding Service Division, David Bradley, and the General Manager of Duncan y Cossio, Alejandro Montañez:

New guidelines for lifeboat servicing

The International Maritime Organisation has published guidelines on lifeboat maintenance which call for the inspections and service to be done by the original manufacturers. As the Executive Vice-President Service Division for the Umoe Schat-Harding Group – the global market leader in marine life-saving systems – David Bradley was asked whether it is true that some owners are now complaining that this is pushing up service costs. “Quite often there is a lot of catch up servicing required, so initially proper service costs after a period of neglect can appear high. But once the equipment is maintained in good condition there are cost and safety benefits for the owners,” he countered.

The Umoe Schat-Harding Group is the world’s largest manufacturer of lifeboats and davits and its equipment is installed on about 8,000 ships and a high percentage of oil rigs and offshore installations. Yet, the company rejects the suggestion that it is creating a monopoly of service stations. “Schat-Harding has invested heavily in setting up a global network of service bases which are staffed with trained engineers and which hold stocks of the correct spare parts. Today we have service facilities offering inspections and service in 60 countries, employing over 350 trained staff. That’s not a monopoly, it’s a global service network so that owners can get swift, correct serving and spares when and where they need it,” David Bradley noted. “We have supplemented that network of owned bases by entering into agreements with independent service stations which meet our standards and where we can train their engineers on our products.”

Recently, there has been a lot of discussion about the safety of on-load release hooks. We asked Mr Bradley what Schat-Harding doing to stop the accidents involving these hooks. “We have looked closely at all the incidents where lifeboats have been prematurely released from on-load release hooks and we see that in almost all cases the accidents were caused by either a lack of proper maintenance of the hooks or poor training of the crews. We believe strongly that if ship owners and rig operators follow the IMO Guidelines and ensure that on-load release hooks are serviced by the original manufacturer that will go a long way to preventing accidents. Many of the hooks in service today – there are over 70 different designs – are copies of copies of old designs and they are quite sensitive to maintenance. We have re-engineered our range of hooks to change the way they work so that they are as safe as can be. However, the crew must still know how to work them, and we believe training is vital,” he explained. “Our advice to owners is not to be seduced by promises of major changes in technology. Modern lifeboats, hooks and davits are very safe and very effective. The focus has to be on training crews to use the boats safely, and on maintaining the systems correctly. We are here to help with that, and we always hold in the forefront of our minds that our job is to save lives.”

Great responsibility for Mexico’s market leader

Duncan y Cossio has been working in the marine business since 1974, and currently has seven service stations for life rafts and one service station for lifeboats. With these service stations – which are all approved by the Mexican Marine Authority and the US Coast Guard while its processes are ISO certified by Germanischer Lloyds – the company plays a very important role in the Mexico’s offshore safety.

In a business where training and experience are key words, Duncan y Cossio can rely on a workforce of 140 employees that have an average career length of 10 to 12 years with the company. “Moreover, the managers in charge of our service stations average 17-18 years of service, while I have been here 27 years,” boasted Alejandro Montañez Luna. He was appointed as Director General by Duncan y Cossio’s owner, Mr Alfredo Sierra Diaz, who has made large investments in Ciudad del Carmen, where Duncan y Cossio has service stations for life rafts and lifeboats in the Puerto Pescadero Laguna Azul.

From this operational base, Duncan y Cossio has gained at least 85% of the life raft business in Mexico and developed a dominant position in the market for life boats. In a market where both domestic and multinational competitors are operating, Duncan y Cossio’s strong position is supported by a rule that is enforced by the International Marine Organization: if you are trained by a certain manufacturer, then you are allowed to represent, service and offer maintenance of their products; otherwise, you are not. “This policy is strictly followed by the Mexican authorities. Therefore, there is a kind of peace in the market,” confirmed Alejandro Montañez.

In this environment, Mr Montañez has witnessed a gradual change in the mindset of the people in PEMEX over the last 10 to 12 years. “Mexico is a signatory country of the International Marine Organization convention SOLAS, which stands for Safety of Life at Sea. Mexico follows these resolutions, which has made PEMEX much stricter in the marine safety area as the company follows its rules for safety standards on platforms, ships, and services,” he explained.

“At the same time, PEMEX has been working with an increasing number of international service providers, and has to meet or exceed the safety level of its partners. Also, the new drilling companies that arrived in Mexico in the last four years – including Pride International, Noble Drilling, Diamond Offshore, Nabors Drilling – have given us a lot of work in life rafts and lifeboats after they realized that a Mexican company can offer the same quality as the American companies,” recognized Alejandro Montañez. “This increase in work has been good for Mexico, while the fact that PEMEX is getting better every year is good for our business.”