The Focus pillar of our strategy is aimed at:
Specific market segments
Boskalis’ strength lies in deploying its equipment (assets) to cater to both the top and the lower end of the market. Boskalis will sustain its success as long as we use our broad range of equipment, staff and competencies to provide a balanced service to the various client groups. However, their requirements vary widely, both within and between the market segments, which means that choices have to be made. Boskalis focuses on the availability and supply of Value-Adding Assets.
We have clients who need us to deliver integrated, innovative services or turnkey solutions. In order to meet these client requirements we need competencies that complement and reinforce one another, such as risk management and engineering. In addition, we need to be able to act as lead contractor, and project management experience is essential. In this segment with its higher margin potential we expressly position ourselves globally towards the top of the S curve (see below figure).
By operating our assets at various points on the S curve we seek to achieve the optimum balance between margin maximization and fleet utilization. In a market where both volumes and margins are under pressure most of the work is to be found in the bottom half of the S curve with an emphasis on sustaining fleet utilization levels whilst maintaining a responsible risk profile. Cost leadership is an important prerequisite here. At the same time we need to be critical with regard to the scope for adding sufficient value to assets at the bottom of the S curve, where pressure on capacity is greatest. If there is insufficient scope for sustainable value creation we will divest assets (rationalization).
Specific market segments
Our core activities are focused on markets and market segments where we have the greatest opportunities. We offer our services in these markets both in combined and on a standalone basis.
The energy market is very important in terms of both size and growth potential. Services we provide to oil and gas companies include creating new land, realizing pipeline infrastructures and ports and handling their maintenance. We also execute offshore projects for these clients and provide an ever-growing range of maritime services, including subsea services, heavy and specialist transport, lifting and installation work. For example, we are able to transport fully integrated offshore production facilities from Asia, where they are built, to the other side of the world, where we also take care of the installation. With these capabilities Boskalis is also well positioned to dismantle old – decommissioned – oil and gas rigs. In addition to this traditional segment the energy market comprises the strongly growing renewable energy segment, where the emphasis for Boskalis lies on the construction of offshore wind farms, including the laying of the foundations and, through VBMS, the power cable installation. We also provide onshore and offshore terminal services through Smit Lamnalco.
Another important market encompasses the design and construction of new ports and the expansion and maintenance of existing ports on behalf of governments and port operators. Here our dredging and earthmoving activities come into play, with civil engineering at times also playing a major role. We are also involved in the transportation of port-related equipment such as container cranes, and at the operational stage we provide shipping companies with harbor towage and other services. We can be of service to these same shipping companies, as well as their underwriting agents, with our salvage activities.
Through its coastal defense and riverbank protection activities Boskalis helps provide protection against flooding around the world. Climate change leads to rising sea levels and coastal erosion, making coastlines more vulnerable and in need of extra protection. In addition, weather conditions are becoming more extreme. Boskalis is an expert in designing, realizing and maintaining sea defenses and foreshore and beach replenishments. We widen rivers and channels and create floodplains to contain the water or facilitate safe discharge. Our Building with Nature approach plays an important part in the realization of these projects, allowing us to deliver sustainable and socially responsible solutions.