Sydney Prepares for the Unknown - Superyachts by Paul J Robinson Waterways Authority James Craig Road Rozelle Bay NSW 2039 AUSTRALIA Phone: +612 9563 8670 Fax: +612 9563 8600 Email: paul@waterways.nsw.gov.au
SYDNEY PREPARES FOR THE UNKNOWN SUPERYACHTS P J Robinson General Manger Business Services Waterways Authority PO Box R228 Royal Exchange SYDNEY 2000 Phone: 61 2 9563 8670 Fax: 61 2 9563 8600 Email: paul@waterways.nsw.gov.au Preamble When reviewing our experience over the last 3 years in preparing for an influx of Superyachts to Sydney Harbour, it has become increasingly apparent that the size and scale of the global Superyacht Industry is not understood, not only in the Pacific and Asian Regions, but also to some extent world-wide. An example of this is the fact that currently there are over 280 vessels in excess of 24m under construction throughout the world s. Issues that immediately come to mind in addressing the impact of such a construction program are infrastructure such as berthage, vessel repair facilities, manning (both crew and qualified/experienced skippers) and service provision to this everincreasing fleet of luxury vessels. So with that background, how does a city hosting the Olympic Games, with undoubtedly one of the most beautiful harbours in the world, prepare for this unknown entity - Superyachts. Background In 1993 when the President of the International Olympic Committee, Juan Antonio Samarach, announced that the 2000 Summer Olympic Games were awarded to "Syd-er-ney", the city at 4am that morning erupted and we were off and running in preparing to host the Games of the XXVII Olympiad, the first in the new Millennium. Interestingly, on the same day as the announcement, the Waterways Authority received its first enquiry regarding berthage for vessels in Sydney Harbour. So began a journey into the unknown. In 1995, when the former Maritime Services Board prepared its first strategic plan for the management of the Harbour during the Games, the issue of visiting vessels was an item of strategic importance. Yet it was not considered a significant issue - there were MARINAS 6: P J Robinson 1 of 8
others of far more importance such as the management of the sailing competition, traffic management, hotel ships etc.. It was not until 1997, when it became apparent that if sufficient attention was not paid to this unknown entity, it was liable to arise as a significant issue with little time remaining to prepare for the year 2000. There were those in some areas of the public sector who considered the issue of Superyachts as insignificant and therefore were recommending that the issue should be ignored. In other words, if Sydney ignored the issue, then maybe there would not be a problem as vessels would not come. An interesting philosophy! What is the Waterways Authority and why is it involved? The Waterways Authority is a self-funding Government Agency in the State of NSW. It has a number of functions, which can best be summarised through its mission statement: "To lead and advocate the integrated management of NSW navigable waters for the community through a client focus in marine safety, environmental sustainability and infrastructure development." The Authority licenses and manages: 385,000 recreational and commercial boaters; 176,000 recreational and commercial vessels; 18,000 moorings; 3000 navigation aids; 700 aquatic license covering 44,000 on-water events; 2000 commercial vessels in survey; 2000 leases covering marinas, jetties and wharves in Sydney Harbour Therefore, it was apparent that if Sydney was to satisfactorily accommodate an influx of Superyachts in the year 2000, the Authority was the Government Agency which had the dominant co-ordination role. In addition, the title to the bed of Sydney Harbour is vested in the Waterways Authority i.e., it owns and manages the Harbour. Impact of Superyachts on Sydney Harbour Sydney Harbour is a haven for a range of maritime activities, both passive and active, recreational and commercial as well as being a natural amphitheatre for the city of Sydney. The following statistics provide a brief insight into the magnitude and variety of functions undertaken on Sydney Harbour:
MARINAS 6: P J Robinson 2 of 8 270 kilometres of foreshore 5020 hectares in area 6000 moorings 1000 marina berths 7.4m mass tonnes of trade 350 charter vessels valued at $A400m 13m ferry passengers per annum In summary, Sydney Harbour is a hive of activity. The question then arises - surely Sydney Harbour can handle a few Superyachts? I When addressing this question as part of the strategic planning for the Games, the Authority had to overlay Olympic planning on the Harbour and identify the impact to the existing infrastructure. The prerequisites for the Olympic overlay included: sailing to be conducted in the Harbour - a first in Olympic history; swim leg of the triathlon to be on the Harbour; 6,000-8,000 beds to be provided on 8-10 hotel ships; commercial port trade to continue; ferry transport links between the city and Olympic sites; and berths for National Olympic Committee vessels. From the above process it was apparent that there was limited berthage available for Superyachts, in particular larger vessels, and therefore a co-ordinated effort, including the private and public sectors, was required. Economic Analysis In 1998, the Sydney Organising Committee of the Olympic Games (SOCOG) commissioned a report by Anderson Consulting to identify the anticipated economic benefits to the city of Sydney in attracting Superyachts to the Olympic Games. One of the major problems highlighted in the Executive Summary of the resultant Paper "Super Yacht Accommodation, Assessment of Supply, Demand and Economic Benefits" 2 was: "The results of the study have relied upon estimates due to the immaturity of the industry in the South Pacific i.e., there has been no comprehensive research conducted of the likely demand and details of likely expenditure patterns".
However, based upon these estimates, the Paper did provide some order of economic benefit and this was obviously subject to the availability of suitable berths. The estimated vessel expenditure and associated benefits were identified between $A29m - $A83m for the period of the Olympic Games and between $A] 17m - $A235m for the ten year period post the Games. MARINAS 6: P J Robinson 3 of 8 The above estimates were based upon 60-70 berths being available during the Games and an average of 20 berths available post the Games. The figures provided by the report, although based upon estimation in many instances, did support the argument that the city of Sydney should encourage and promote the visitation of Superyachts both in the short term and the long term. In addition, the report prepared by Thomas J Murray and Associates, Inc. on the "Recent Growth, Current Activity, and Economic Impacts of Mega Yachts in South Florida 1997-1998"' provided further evidence of the economic opportunities for a State/Country, which encouraged the Superyacht Industry. Issues such as economic growth, full-time employment and industry development are issues which are attractive to all governments, irrespective of their location. The above report identified: the average expenditure of mega yachts at Tri-County boat yards was $US236k during 1997; the direct economic impact of the mega yachts repair and maintenance at local boatyards was $US199m; the mega yacht related boat yard, brokerage and charter industry direct impacts boosted the local economy by an estimated $US497.2m; the above output is associated with 5,364 full time employment. Obviously, there is no direct comparison between the magnitude of the Superyacht Industry in Florida as against locations such as Australia and New Zealand. However, the fact that the industry is a growing industry and that both countries i.e.., Australia and New Zealand already build and service Superyachts to world class standards and they have skilled labour, economic stability and a favourable exchange rate provided more justification in encouraging the visitation of Superyachts. Superyachts in Sydney for 2000 The private sector first approached the Government in 1997 expressing concern at their
capacity to accommodate a significant number of large Superyachts. Upon my return from the 1997 Fort Lauderdale Boatshow (my first foray into the world of Superyachts) the Authority convened a meeting of various Federal and State Government Agencies to identify issues impacting upon the visitation of yachts to Australian waters and the development of strategies to address such issues. At the same time the Authority facilitated a meeting with a number of private and club marinas to identify the supply of available berths in Sydney Harbour for a variety of Superyachts i.e., sail/motor, 30m/70m, power requirements etc.. MARINAS 6: P J Robinson 4 of 8 An outcome of this meeting was the development of a consortium of sites (both private and public sector) which could provide a range of facilities for various classes of Superyachts. The membership of this consortium comprised: The Cruising Yacht Club of Australia d'albora Marinas Charter Hall, Pyrmont Mosman Bay Marina Ferguson's Boatshed -The Spit Waterways Authority It became apparent, that although most existing sites could accommodate a limited number of Superyachts by upgrading their facilities, there was still a need for berthage for the larger motoryachts. It was not as if the accommodation of large yachts was a complete unknown to the city of Sydney. Sydney had experienced a number of visits from Superyachts in the past e.g., Double Haven, Battered Bull and Morning Glory and was the resident port for vessels such as Kokomo II, Ilona and Dajoshidata. In addition, the Harbour had also accommodated a large number of tall ships during the Bicentennial year of 1988. Our facilities may have been able to cope with a similar influx in 2000, however we also had to accommodate the 8-10 hotel ships, the expected National Olympic Committee vessels and maintain trade through the commercial Port of Sydney. Therefore if we were to accommodate a significant number of Superyachts, a site had to be developed capable of providing berths for the larger Superyachts to an international standard. Rozelle Bay Maritime Precinct / Superyacht Marina
As part of the Government's ongoing commitment to the role of Sydney Harbour as a working harbour, the Government had identified an area in Sydney (Rozelle and Blackwattle Bays) as a future maritime precinct. One of the major issues confronting Sydney is the loss of waterfront sites which were previously used for some form of maritime activity or for industrial purposes. Many sites have been rezoned for residential redevelopment (providing a greater economic return to the developer) however, at the same time, reducing the available water frontage for marine industries and activities such as vessel repair and servicing, charter vessels, waterfront contractors, fishing fleet etc.. Specific legislation was enacted to ensure the gazettal of these former port lands at Rozelle and Blackwattle Bays for the maritime sector and the exclusion of residential development. MARINAS 6: P J Robinson 5 of 8 This site was identified as the most appropriate location for Government investment in the development of a Superyacht facility as much of the infrastructure would be used in the long term for maritime purposes irrespective of the future demand for Superyacht berthage post Olympics. The Rozelle Bay Superyacht Marina has now been constructed at a cost of some $A2.7m and is capable of accommodating 27 vessels (30m - 70m) each of which are provided with 5 telephone lines, ISDN facilities, cable TV, power, (3 phase up to 400amps/phase) and vacuum sewage pumpout. In addition the land-based overlay to be constructed in July 2000 will consist of a Cafe/Bar, Function Centre and Reception/Concierge service. A retail area is also being established to accommodate a range of service providers, marine outlets and specialised shopping facilities. Concurrently with the development of the Superyacht Marina, master planning is continuing to finalise long-term development options for the entire precinct. There are a range of maritime industries in Sydney Harbour all seeking long term waterfront accommodation and tenure to provide necessary maritime services and facilities. It is envisaged various parcels of the maritime precinct will be utilised for vessel repair and maintenance, dry-stack boat storage, back of house charter vessel facilities, waterfront contractors as well as providing the opportunity for a variety of commercial and retail outlets. Supply vs Demand/ Marketing In 1998 the Authority embarked on a marketing campaign to gauge the interest of vessels
and their owners in coming to the Olympic Games. We established a database of Registrations of Interest and by 1999 had responses from some 160 vessels of which 75 were 30m or above in length. Although there was no certainty in the conversion of an Expression of Interest into actual bookings to berth in the Harbour, the establishment of this database assisted in identifying an order of possible demand on the existing infrastructure. To assist in clarifying issues about vessel accommodation in the Harbour the Authority was represented at the Monaco and Fort Lauderdale Boatshows (1998-99) and the Refit and Repair Show in Palma (1999). This provided the opportunity to meet with a range of individuals and organisations associated with the Industry and to receive realistic feedback on the possible impacts during the Olympic Games. The feedback from attending these shows was critical in determining the infrastructure development required in Sydney Harbour. MARINAS 6: P I Robinson 6 of 8 In addition to a presence at the International Boatshows, the Authority had been in regular contact with a range of organisations and Government Agencies in New Zealand. There were some similarities to the preparations for the America's Cup in terms of Superyacht accommodation, however we were also clearly aware that the two events i.e., the Olympic Games and the America's Cup were different in many respects (certainly in magnitude) and that each event would attract different clientele. There is no manual on how to prepare a Harbour city for Superyachts let alone an unknown number of Superyachts, and at the same time, ensure all Olympic activities on the Harbour are successful. This has been very much a continual learning experience and we have been most appreciative of the support and advice we have received. From the above marketing and research we now have the capacity to accommodate all Superyachts intending to visit Sydney during the Year 2000 at a number of different locations throughout Sydney Harbour. Sydney 2000 Superyacht Regatta: Sent 13' h, 2000 For some time there has been speculation and investigation into having an `event' for Superyachts around the Olympic Games. Issues such as conflict with the promotion of the Olympic Games, accessibility of Sydney Harbour because of the Olympic overlay, type of event, timetable for such an event etc., have been difficult to finalise until only recently.
With the assistance of the Royal Sydney Yacht Squadron, the Cruising Yacht Club of Australia and the Royal Motor Yacht Club, the Authority has now been able to facilitate and co-ordinate a Superyacht Regatta for the Wednesday prior to the Olympic Games Opening Ceremony. In summary the `event' will involve: Tuesday 12' h September 2000 - Pre-race cocktail function at the Royal Sydney Yacht Squadron Wednesday 13' h September 2000 Sailpast of Superyachts around the icons of Sydney Harbour (Opera House and Harbour Bridge) Superyacht Race in the harbour and adjacent waters; and Trophy presentation and post race function at the Rozelle Bay Superyacht Marina. MARINAS 6: P J Robinson 7 of 8 Summary Sydney has been focusing on hosting the Games of the XXVII Olympiad for some 7 years. Some of the statistics surrounding this event are quite staggering: $A3B in infrastructure investment; $A2.5B in operational costs to run the Games; estimated 600m Olympic website `hits' per day; estimated TV audience of 25B viewers. In this context, the issue of Superyacht accommodation could be seen as somewhat insignificant. However, the Government of NSW, through the Waterways Authority has not ignored the issue but reaffirmed, through the development of the Rozelle Bay Superyacht Marina, it's commitment to not only the Superyacht Industry, but also Maritime Industries generally. We look forward to hosting the owners and guests of Superyachts from throughout the world. This is a once in a lifetime opportunity to visit what is arguably the greatest harbour in the world during what will be, undoubtedly, a fantastic Olympic experience. References 1. "The Yacht Report", August/September 1999, TRP Magazines Ltd. London.
2. "Superyacht Accommodation Assessment of Supply, Demand and Economic Benefits", July 1998, Arthur Anderson, Sydney, Australia. 3. "Recent Growth, Current Activity, and Economic Impacts of Mega Yachts in South Florida, 1997, 1998", October 1998, Thomas J Murray & Associates, Inc. MARINAS 6: P J Robinson 8 of 8