Scenic travel company boss Glen Moroney’s plan to save his $350m yacht, and a Croatia shipyard

Australian businessman Glen Moroney is being touted as the potential saviour of a historic shipyard in Croatia, where he also has a $350 million cruise yacht.

Exclusive: Australian businessman Glen Moroney is being touted as the potential saviour of a historic shipyard in Croatia, which employs more than 3000 people and props up an entire town.

Mr Moroney, the founder of the Scenic travel company, has been visiting the town of Pula in

western Croatia, where he has a $350 million cruise yacht under construction at the Uljanik

shipyards, and a second one on order.

The six-star luxury yacht Scenic Eclipse was due to be taking paid passengers into the Arctic by now but construction has been delayed for months due to financial problems at the shipyards, which have led to strike action and the loss of more than 1000 workers in a year.

Australian businessman Glen Moroney is being touted as the potential saviour of the historic Uljanik Shipyard in Croatia. Picture: Ella Pellegrini

On January 25, the Croatian Government, which is trying to negotiate a rescue package, will

announce the results of a management restructure for Uljanik, which has operated continuously for 162 years.

Two companies have been given permission to examine the company’s books — Scenic, and a

consortium put together by the Italian shipbuilder Fincantieri and Croatian shipyard owners DIV.

Mr Moroney, who built Scenic into a hugely successful international travel company after starting out as a bus tour operator in Newcastle, north of Sydney, in the mid-80s, declined an interview with News Corp.

His spokeswoman confirmed he had been in Croatia regularly to “to oversee the completion of

Scenic Eclipse given the yard’s financial issues.

“At this point Scenic do not wish to make any comment regarding Uljanik’s current situation or the proposed restructuring plan,’’ she said.

President of the shipyard’s strike committee Boris Cerovac said Mr Moroney was a serious businessman, who kept his promises and paid on time. Picture: Ella Pellegrini

But those intimately involved with the shipyards told News Corp Mr Moroney has an excellent reputation, and would be perfectly placed to take on a financial stake in some capacity.

The head of the strike committee at the Uljanik yard, Boris Cerovac, told News Corp Mr Moroney was a serious businessman, who kept his promises, paid on time, and would be a welcome white knight.

“Glen has definitely entered the data room (where potential bidders have access to the shipyard’s financial records),’’ Mr Cerovac said.

“He wants to build five ships here like Scenic Eclipse. But once he has entered the data room that means his intention is more than just the ships.

“I met him twice. I can’t tell you his exact intentions, it is hard to say. He’s the person who doesn’t want to go out in public until he’s certain about his next move.’’

There has been speculation in the Croatian press that Mr Moroney’s intention is to order five polar explorers like Scenic Eclipse, ultra-luxurious yachts fitted with their own helicopters and submarines to take high net-worth passengers high up into the Arctic. Such a large order would guarantee jobs at Uljanik for years.

But Croatian Economy Minister Darko Horvat said in October that Scenic wished to join the Uljanik group as a “strategic partner’’, although he did not explain how. Mr Horvat has met Mr Moroney in the capital Zagreb for talks, including earlier this month.

During Yugoslavian times, Uljanik employed 8000 people and another 3000 contractors and the town of Pula was built around. Now, it has just 3050 employees split between two yards. Picture: Uljanik

Mr Moroney has had to refund customers who booked trips aboard the Solar Eclipse from this

month. He announced his intention to build a second yacht in February last year, but Mr Cerovac said work had yet to begin on the second yacht.

“Unfortunately the situation is not good,’’ he said.

“We have lost a lot of workers from the production line. We also lost a lot from the project area, the engineers.’’

He said Uljanik had a complex ownership structure, which the workers holding 47 per cent of the shares, another 25 per cent held by state institutions, and the rest by private investors such as pension funds.

Glen Moroney's under-construction polar cruise ship Scenic Eclipse in the Uljanik Shipyard. It’s reportedly worth $350 million. Picture: Danilo

The global recession and a downturn in orders has hit Uljanik hard, and workers had to strike to get their pay in August.

In September, October and November they received only the minimum wage, about a third of their regular pay, and in December they were not paid at all, Mr Cerovac said.

He said he believed the Scenic Eclipse was about two months from completion, and that the vessel was “something extraordinary.’’.

He said legislation in Croatia was “pretty weird’’ so it wasn’t clear how Mr Moroney could be

involved.

“He’s a very, very serious possible partner and a very, very serious businessman,’’ he said of the Australian.

“I have a feeling he delivers what he promises.

“It is not clear, but I think it is more than ordering five ships.

“The restructure planned by the board of Uljanik is based on the five ships agreed by Mr Moroney.’’

Mr Cerovac, who has been a mechanic at Uljanik for 31 years, said without the company “Pula will be on its knees.’’

Uljanik was bombed by the Allies in World War II, and was taken over by the Americans, who restored it in 1947. Picture: Uljanik

Uljanik, first founded in 1856 as a military shipyard for the Austro-Hungarian navy, became a

commercial yard under Italian rule from 1918-1945, was bombed by the Allies in World War II, and was taken over by the Americans, who restored it in 1947.

During Yugoslavian times it employed 8000 people and another 3000 contractors and the town of Pula was built around it.

Now, it has only 3050 employees split between its main yard in Pula and another at Rijeka. More than 1000 workers have left since the start of last year, and the Croatian Government is keeping the shipyard afloat with guarantees. It is still the largest employer in the town of Pula, which has fewer than 50,000 residents.

None of the Uljanik workers News Corp approached would speak on the record, fearful of losing their jobs.

The company would not allow News Corp onto its premises, but issued a statement saying: “Scenic are a very important client of the Uljanik Group and have publicly shown interest in participating in the proposed restructuring plan as have a number of other unrelated parties.

“Due to client confidentiality we are not in a position at this stage to provide any further information than what Minister Horvat has already provided to the media,’’ the company said in an email.

The shipyard is the largest employer in the town of Pula, which has fewer than 50,000 residents. Picture: Ella Pellegrini

Outside the gates, passer-by Natasha, who didn’t want to give her last name, said her father-in-law and brother-in-law had worked there.

“Uljanik gave food to many people in Pula for decades,’’ she said.

“Many of them got an apartments or the land to build an apartment from Uljanik under the socialist times.

“I have friends who are engineers there. They used to build ships for sheiks.

Mladen Milankovic, who owns a café bar in the Forum Square near the yard, said: “People feel Uljanik as their own.

“Each of us worked there or knew someone who worked there. They built a large part of this town, supported the clubs and associations.

“People feel like it would be missed. My father worked there for 40 years, he got an apartment built by Uljanik. We are all connected somehow, friends, neighbours, relatives.

“Your guy that’s building the cruiser (Mr Moroney), people have only positive things to say about him. I know he buys and pays on time. His suppliers, they all have positive stories about him.’’

Robert Tkalec, who owns a bar near the Uljanik Shipyards in Pula, Croatia. Picture: Ella Pellegrini

Robert Tkalec has owned Sirena, the bar and café which used to be the favourite haunt of Uljanik workers, for 25 years.

“It’s important for the city,’’ he said.

It’s not just the 1000 people (whose jobs were lost) but 1000 families. We feel it in our daily

business.

“Also the other families, those workers are on the minimum wage.

“I had a lot of people who came in here before their work at 6.30am for coffee and after work for a drink. Now it’s only about four people.’’

Aleksander Matic, the Deputy Mayor of Pula, said he hadn’t met Mr Moroney but had also heard good things about him.

“As far as I hear in the media he keeps his word, pays all his orders,’’ he said.

Originally published as Scenic travel company boss Glen Moroney’s plan to save his $350m yacht, and a Croatia shipyard