30 November - 6 December 2000

Second take-over bid for Rina

by Franco Aloisio

The French classification society Bureau Veritas has proposed a closer strategic alliance with Registro Italiano Navale (Rina) in addition to the Unitas agreement between BV, Rina and Germanischer Lloyd, shipping sources said.

Rina was the classification society responsible for the registration of the Malta-flagged oil tanker Erika, which sank in December 1999 in the French west coast causing a major environmental catastrophe. Rina was also the classification society of the Italian-owned and classed chemical tanker Levoli Sun, which sank last October also in the French coast.

Bureau Veritas believes that the risks associated with the movement of hazardous cargoes could be minimised by the adoption of clear safety rules enforced by a strong European society.

Bureau Veritas has already offered to incorporate its Italian subsidiary, BV Italia, into Rina Spa and to sell some Bureau Veritas shares to Fondazione Rina, its parent company. When the opportunity arises, Bureau Veritas is also hoping to acquire some shares in Rina Spa.

It is predicted by Bureau Veritas that over the next five years, Rina will see a doubling of turnover from the present US$8m per year and an increase in staff of around 80 per cent.

Rina had also received an offer from the American Bureau of Shipping for its take-over.

Following several high-profile incidents which have reflected unfavourably on ship regulatory bodies, members of the International Association of Classification Societies (IACS) have been undergoing intensive introspective examination in a bid to reinforce a consistency of high safety and environmental protection standards within the marine industry.

During this process, Rina’s membership of IACS has been looking precarious, particularly after the sinking of the Erika, and the expulsion of Polski Rejistr Statkow from the organisation in early June.

The rethink of industry standards has been prompted by pressure from within the industry, aided by the media. The posturing taking place among the members of IACS is, thus, not an unexpected development. Indeed, Rina’s vulnerability makes it an obvious candidate to be absorbed into one of the larger societies.