30 Jan 2012

BSE Maritime Solutions purchases Cairns Slipway

By Ellie Brade

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After 18 months in receivership, Australian refit yard Cairns Slipways has been acquired by ship repair specialists BSE Maritime Solutions. Receivers McGrath Nicol have confirmed that the sale transaction has been completed. After signing a deal with the State goverment, BSE has taken control of the facility and expects to formally commence managing the operations of Cairns Slipways in February, 2012.

Looking towards the future, Brisbane-based BSE has promised a fresh start for the troubled shipyard. A top priority will be the untapped superyacht market in Brisbane. "We don’t want to come in here and compete – we want to find out all of the things that we can grow to be in different markets than what the other two yards are in," said BSE shipping manager Wayne Shaw. "We see a great future. It’s had a great past, so if we can get that back again, our directors and shareholders will be only too happy to get back to there."

This month, BSE will also bring to Cairns a lucrative contract with a Gladstone-based dredging company that was previously earmarked for another shipyard in Brisbane. "We looked closely at that project and decided it’s far better that we bring it here to Cairns and that will signal a return of confidence," said Shaw.


"Part of the problem when the Cairns Slipway was in receivership was that potential clients had legitimate concerns about their product but now we can give them guarantees and certainty." Under the agreement signed yesterday, Ports North has paid $2.5 million for part of the slipway land, and BSE invested "substantially more" for the remaining land, buildings and 
equipment. "This was land that was owned freehold; it’s now been acquired by the port, which means into the future, that it will forever be part of the port’s holdings," Deputy Premier Andrew Fraser said in Cairns yesterday. Ports North chairman Ken Chapman said the deal was a critical boon in the city’s bid to lure luxurious super yachts and diversify the local economy. He said the business had remained profitable during receivership, kept running by receivers McGrath Nicol.

The acquisition of Cairns Slipways adds significant resources to BSE’s existing ship repair business.  “Cairns Slipways is an important strategic fit to the planned growth of BSE Maritime Solutions” said BSE’s Business Development Manager Mr. Denis Maher.

“Cairns Slipways is a unique marine repair and refit facility with its 1,200 tonne slipway, 60 metre drydock, 300 metres of fit-out wharfage, refit sheds and skilled work force. We are excited about the opportunity to be involved with such a tremendous site. The site has a number of challenges but the local support is very strong and we believe this is a crucial factor in ensuring the future success of the shipyard” said Mr. Maher.  “We are confident that with this facility and our experience the business can continue to set new standards in the repair and refit of luxury yachts, defence and commercial vessels for many years to come”.

Cairns Slipways, which employs a large skilled workforce, has continued to trade since it and the 16 companies that form the Provik Pty Ltd Group of Companies were placed in receivership on July 15, 2010. Since then, it has been business as usual for Cairns Slipways.

McGrathNicol received widespread interest in the sale of the Cairns Slipways business and associated properties at Portsmith since the sale process commenced in October 2010. BSE was appointed preferred bidder in March 2011.

Related Links

BSE Maritime Solutions Website

BSE Cairns Slipways Profile

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