The owner of the shipyards, Antonio Palumbo, said he would meet and probably exceed the €23.5 million investment obligation imposed on him by the terms of the government concession.

Palumbo is obliged to invest €30 million in all, €23.5 million in the first five years.

Mr Palumbo told Times of Malta Business that the investment already made covered every corner of the shipyard.

One was the complete replacement of the roof of one of the previously dimly-lit machinery sheds, now bright and airy, something the workers seem to appreciate as someone has taped a photo of Mr Palumbo up on the noticeboard.

A more important investment was in a low-loader which was used to transport a multi-ton hollow cylinder from a ship to a shed where it could be worked on.

“There is only one other yard in Singapore that could have handled this contract and we only won it because we invested in the low-loader,” he said.

The shipyard has also installed concave barriers on the sides of the docks to deflect the grit, in an effort to reduce inconvenience to residents in the surroundings.

Mr Palumbo was clearly frustrated by ongoing complaints.

“I want to ask you a question: What is the activity of this yard? It is a yard that was created for this activity, which is carried out all over the world. Which came first, the chicken or the egg?

“We are very conscious of the need to do all we can. Our objective is to do things in the maximum correctness. However, if someone wants to damage what we are trying to create, this is a different matter.

“If it goes on, the moment that we are certain that there is someone creating these problems, we will name and shame,” he warned.

Another considerable investment is being made in photovoltaic panels, which will generate two million KW every year.

“We consume six million KW every year. Apart from the panels, we are doing a lot to reduce energy consumption as we can save hundreds of millions of euros in the long term,” he said.

Investment alone would be pointless if it were not contributing towards the resurrection of the yard’s reputation, which he said had to be built from scratch because it had been “blacklisted around the world” for a number of reasons.

“This is not something that I am saying but something that has been told to me. And yet, in the threeand-a-half years since we took over the yard, we have worked on 650 ships, and in the two-and-a-half years since we took over the superyacht facility, we did 50 yachts,” he said.

“However, the amount of ships is not the mostsignificant factor. It is the value and the complexity of the work done, thanks to the dedicated and skilled workers.”

The shipyard had to be very aggressive when it came to bidding for contracts, particularly because the global crisis in shipping, the economy and the financial world persisted. However, there was also more competition as yards in Asia, Russia and Turkey were competing with Malta, the latter a major concern given its proximity.

“Just the fact that contracts in Turkey are paid in dollars is enough to make them 30 per cent cheaper, let alone the fact that their cost base is already much lower than in the eurozone,” he said.

“And yet we managed to attract 650 ships. I estimate that for every euro paid to the yard, we create €3 for all the other beneficiaries, from subcontractors to chandlers, pilots, mooring men, suppliers, restaurants, taxis and hotels.”

He declined to divulge the value of the contracts, saying it was more important to look at the complexity of the work that was now being entrusted to Malta. And asked whether the yard was profitable – at least operationally – he said that the costs were still onerous but that things were moving in the right direction.

One important potential source of contracts – the US Navy – remains, however, out of reach.

This is because the American government will only send its ships to countries with which it has a State Forces Agreement (Sofa) – whether as a visitor or to a navy base – a protocol with the host government which means that in case there were any incidents involving naval crew members, such as a crime, he or she would be charged in the American courts.

“Malta has never agreed to this. I am not here to judge why this is not in place or whether it should be. But certainly it is an obstacle as without it, naval ships cannot visit. Last year, a contract of €10-12 million went to Genoa and now there is talk of another contract worth €20 million which will probably go to Croatia. If this could be resolved, it would be very advantageous for us,” he said.

One of the major factors affecting the shipyard’s future is the greatly reduced size of the workforce since the Drydocks’ heyday when it employed over 10,000 people. But there have been allegations that he is only offering short-term contracts to his workforce.

Mr Palumbo said that all of the 150 Maltese working here – almost all previous Drydocks workers – were on permanent contracts.

“The contracts were inherited – I did not set them up myself. Anyone who came here was never chased away or shown the door. Everything is being done in accordance with Maltese law. Yes, I could offer one- month, three-month or one-year contracts. But it is not about contracts; it is about trust,” he said, adding that there were usually around 30 to 40 subcontractors, including some Italians and Romanians, depending on the number and type of contracts.

One important potential source of contracts ­– the US Navy – remains out of reach

However, although the current workforce is mostly in their 40s or less, he is very keen to do more to get more youths learning the trades – something that many economic stakeholders lament since the dismantling of the apprenticeship scheme. It was also one of the terms of the concession agreement, which was to be financed through EU structural funds through the Employment and Training Corporation.

“We intended to set something up with Mcast and had some contacts but nothing ever got off the ground,” he said.

Released from house arrest just a few months ago pending a judgment on allegations on the disposal of toxic waste in Messina that he insists he will be cleared of, Mr Palumbo walked out of his office in his immaculate suit and leather shoes, standing out among the boiler-suited employees that greeted him warmly wherever he went.

“I feel very bitter about it. It is a very ugly story. The allegations are a complete fabrication. But we have faith in the judiciary. It is unfortunately taking a long time but we are secure in the knowledge that we did things completely in the right way.”