- Brazil | 14 April 2016
How would you describe Mammoet’s performance this last year?
Last year, Mammoet had a very good performance and our growth rate was around 100%, surpassing the rates for 2010 and 2011. This was driven by projects such as the ones in the Rio Grande and Rio Grande do Sul shipyards where our new Mammoet in-house developed cranes operated. Mammoet even set a new world record for the heaviest load lifted at the highest altitude on the P55 Petrobras Offshore Deck. Additionally, we were awarded the contract for the largest windmill park in Brazil, prompting us to create a new company, Mammoet Wind Brazil, which will be responsible for the installation of 230 windmills in Bahia, for Renova.
What is the current importance of the chemical and mining sectors for Mammoet’s business?
Both the chemical and mining components are very important to Mammoet. Mining is essential at a worldwide level, and in Brazil, we focus more on working with the engineering companies in the field. The Brazilian chemical market is not as large a proportion of our business as we would wish, and most of our current focus is on offshore petrochemicals. However, we are participating in other bids such as the one for a new fertilizer plant. The end-clients we work with are mostly Vale and Petrobras, which are the driving forces of the Brazilian economy. It’s hard to establish a ranking of relative importance since it’s given by the projects we are currently involved in, and the duration of these projects can range from a few months to several years.
Can you discuss the significance of Mammoet Brazil to Mammoet’s global presence?
Brazil is a crucial market for Mammoet, and we see significant potential and opportunities for growth here. Mammoet Brazil was established over 10 years ago, and we aim to transform it into a regional office of substantial importance to worldwide operations. While we prioritize training and employing a local workforce, Mammoet also has a certain percentage of foreign supervisors overseeing our operations. Mammoet’s South American operations are expanding, with new projects opening up in Chile, Peru, and Colombia.
What are the main challenges that Mammoet faces in the Brazilian business environment?
Mammoet faces several challenges in Brazil, including governmental bureaucracy, inadequate infrastructure, inconsistency in maintaining schedules, high taxes on equipment and labor, and the overall high cost of doing business in Brazil. These factors make planning ahead difficult for us, but our line of business requires careful analysis for complex, value-adding solutions. Another issue is that Brazilian companies tend to choose the cheapest product or service on the market, disregarding the long-term benefits of engaging with a high-quality solution provider like Mammoet.
How are projects selected at Mammoet, and could you name some standout projects?
Mammoet competes for all projects that we consider to have potential in the highly competitive Brazilian market. As the largest heavy transport and heavy lifting company globally, Mammoet can mobilize and deploy resources as needed. The Vale S11D project is especially significant due to its magnitude, and we have bid for the transportation and insulation of various modules required to complete it. In the chemical sector, we are working on a large project, a fertilizer plant in Mato Grosso, being built by UF Entry but owned by Petrobras.