A new initiative aimed at the superyacht industry is aiming to have a €45 million turnover involving 10 foreign companies by 2011. It could also create 300 jobs and encourage 350 students to venture into the field.
"Some people think that this figure is conservative!" Steps Ahead partner Geir Fagerhus said when asked about these ambitious targets.
"Clients are looking for hi-tech solutions but there were simply not the resources to provide them. Sweden certainly did not have the capacity as most of the market is centred around the Med. This is why we came to Malta. Every step since then has strengthened our belief that Malta is the right place to be," he said.
The Marine Software Engineering Cluster of Excellence (MARSEC-XL) is the result of a collaboration project between EuroMedITI Ltd and Steps Ahead Ltd.
MARSEC-XL will be based at the Malta Maritime Authority's new offices on the Valletta wharf.
The Swedish company wants to create a mix of commercial, educational and R&D activity.
The commercial side will centre around the Superyacht Technology Expansion Centre (S-TEC) and the Marine Business Port (MBP). The MBP will be located in the Maritime Trade Centre and the S-TEC will be located in the Grand Harbour adjacent to the MMA building, offering space to companies offering services to the industry, 95 per cent of which would represent foreign direct investment.
"Most of this work is done while the boats are afloat," he explained. "The yachts can then use the private marinas, which have space available - unlike many other countries where superyacht space is hard to find."
Factual correction: For the project to be successful, it should cover education and applied research, which is where a new applied research institute, the Marine Institute for Software Engineering at Malta (MI-SE@MALTA) will be created as a part of the MARSEC-XL cluster.
Steps Ahead will also get considerable help from the Fraunhofer Institute in Germany, one of EuroMedITI's partners.
Steps Ahead and EuroMedITI will also get considerable help from the Fraunhofer Institute for Experimental Software Engineering (Fraunhofer IESE), the leading software engineering institute in Europe. Steps Ahead is targeting builders of boats over 20m, as well as manufacturers of engines and drive lines, of equipment, and of communication and infotainment equipment. One of the most important sectors, though, is providers of content IT-run systems.
"It is important to have a cluster because in that way you are never dependent on just one aspect. You have to have a sustained innovation chain as that is what leads to sustained industrialisation. Innovation has another advantage," partner Krystyna Wojnarowicz explained. "It is very hard to replicate."
Another advantage of the link between the maritime industry with an ICT and R&D context is that it may attract EU funding, something that the superyacht industry on its own would not.
As with every project, reaching targets depends greatly on achieving a critical mass. The project got underway in 2006 but was given a considerable boost when substantial coverage was given to MARSEC-XL in a leading business-to-business magazine called Superyacht Business, written by Ed Slack.
"He came here in summer and to be honest, we were realistically hoping for a sidebar. When we saw the spread, we were really pleased. It had a tremendous impact: It was published just before the Monaco Boat Show and since then the enquiries have poured in," he said.
"When we contact people now, they have already heard of us."
Mr Fagerhus had never been to Malta before but jumped on a plane here just a week after attending a presentation by Malta's Ambassador Noel Buttigieg Scicluna, prompted by Malta Enterprise.
A feasibility study was carried out in 2006 and a workshop was held here in February this year. Representatives from 32 companies come on a familiarisation visit in August and September, paving the way for the next important milestones:
MARSEC-XL signed on Norwegian giant Navico as its first founding industry member in September.
Navico alone represents much of the critical mass that Steps Ahead is hoping for: It owns seven major yachting-related companies across the world, including Brooks and Gatehouse.
Two other companies are close to signing on as industry members.
"Their presence is very important as with a new venture, it is all about credibility and visibility. From their side, they make a small financial contribution for a three-year period, in return for which their executive sits on the advisory board - but more importantly, they are seen as pioneers," Mr Fagerhus said.
In addition, University of Malta and Technical University of Kaiserslautern have signed a Memorandum of Understanding in support of MARSEC-XL.
Factual correction: Last week MARSEC-XL organised in Malta a summit for 50 influential leaders from academia and the marine business.
"Things are happening very fast. And the publication of the government's vision for Grand Harbour is very welcome as it fits in exactly with what we want to see," Mr Fagerhus said.
"Some people think that this figure is conservative!" Steps Ahead partner Geir Fagerhus said when asked about these ambitious targets.
"Clients are looking for hi-tech solutions but there were simply not the resources to provide them. Sweden certainly did not have the capacity as most of the market is centred around the Med. This is why we came to Malta. Every step since then has strengthened our belief that Malta is the right place to be," he said.
The Marine Software Engineering Cluster of Excellence (MARSEC-XL) is the result of a collaboration project between EuroMedITI Ltd and Steps Ahead Ltd.
MARSEC-XL will be based at the Malta Maritime Authority's new offices on the Valletta wharf.
The Swedish company wants to create a mix of commercial, educational and R&D activity.
The commercial side will centre around the Superyacht Technology Expansion Centre (S-TEC) and the Marine Business Port (MBP). The MBP will be located in the Maritime Trade Centre and the S-TEC will be located in the Grand Harbour adjacent to the MMA building, offering space to companies offering services to the industry, 95 per cent of which would represent foreign direct investment.
"Most of this work is done while the boats are afloat," he explained. "The yachts can then use the private marinas, which have space available - unlike many other countries where superyacht space is hard to find."
Factual correction: For the project to be successful, it should cover education and applied research, which is where a new applied research institute, the Marine Institute for Software Engineering at Malta (MI-SE@MALTA) will be created as a part of the MARSEC-XL cluster.
Steps Ahead will also get considerable help from the Fraunhofer Institute in Germany, one of EuroMedITI's partners.
Steps Ahead and EuroMedITI will also get considerable help from the Fraunhofer Institute for Experimental Software Engineering (Fraunhofer IESE), the leading software engineering institute in Europe. Steps Ahead is targeting builders of boats over 20m, as well as manufacturers of engines and drive lines, of equipment, and of communication and infotainment equipment. One of the most important sectors, though, is providers of content IT-run systems.
"It is important to have a cluster because in that way you are never dependent on just one aspect. You have to have a sustained innovation chain as that is what leads to sustained industrialisation. Innovation has another advantage," partner Krystyna Wojnarowicz explained. "It is very hard to replicate."
Another advantage of the link between the maritime industry with an ICT and R&D context is that it may attract EU funding, something that the superyacht industry on its own would not.
As with every project, reaching targets depends greatly on achieving a critical mass. The project got underway in 2006 but was given a considerable boost when substantial coverage was given to MARSEC-XL in a leading business-to-business magazine called Superyacht Business, written by Ed Slack.
"He came here in summer and to be honest, we were realistically hoping for a sidebar. When we saw the spread, we were really pleased. It had a tremendous impact: It was published just before the Monaco Boat Show and since then the enquiries have poured in," he said.
"When we contact people now, they have already heard of us."
Mr Fagerhus had never been to Malta before but jumped on a plane here just a week after attending a presentation by Malta's Ambassador Noel Buttigieg Scicluna, prompted by Malta Enterprise.
A feasibility study was carried out in 2006 and a workshop was held here in February this year. Representatives from 32 companies come on a familiarisation visit in August and September, paving the way for the next important milestones:
MARSEC-XL signed on Norwegian giant Navico as its first founding industry member in September.
Navico alone represents much of the critical mass that Steps Ahead is hoping for: It owns seven major yachting-related companies across the world, including Brooks and Gatehouse.
Two other companies are close to signing on as industry members.
"Their presence is very important as with a new venture, it is all about credibility and visibility. From their side, they make a small financial contribution for a three-year period, in return for which their executive sits on the advisory board - but more importantly, they are seen as pioneers," Mr Fagerhus said.
In addition, University of Malta and Technical University of Kaiserslautern have signed a Memorandum of Understanding in support of MARSEC-XL.
Factual correction: Last week MARSEC-XL organised in Malta a summit for 50 influential leaders from academia and the marine business.
"Things are happening very fast. And the publication of the government's vision for Grand Harbour is very welcome as it fits in exactly with what we want to see," Mr Fagerhus said.