Business Day (Johannesburg)

South Africa: Ocean Motoring Proves Plain Sailing

Dave Marrs

1 December 2008


Johannesburg — CAPE Town-based Caudwell Marine has moved aggressively into the $7bn international market for petrol-driven small craft motors with a new technology that is the brainchild of entrepreneur Mike Beachy Head.

The product was only launched at the International Boat Builder's Exhibition and Conference in Miami in October, yet based on a "very positive" response the company expects to start shipping engines to offshore buyers from the third quarter of next year.

About 80 jobs were created at the Cape Town production facility during the development phase, and this is expected to double as the production line starts to roll.

Beachy Head is better known in SA as the founder and owner of the Thunder City complex situated close to Cape Town International Airport, which operates the largest civilian-owned fleet of ex-military jets in the world. He came up with the Axis Drive concept after having owned both stern drive and outboard motor leisure craft and being dissatisfied with both.

Stern drive systems are big and heavy, rely on a universal joint that is noisy and unreliable, and are prone to corrosion and handling difficulties. Outboards eliminate some of these problems but create others, such as top-heaviness and being more vulnerable to damage because they are hung over the boat's transom.

Beachy Head realised with the technologies that had become available in recent years, it should be possible to eliminate the inherent disadvantages of both systems without losing their benefits. Accordingly, the Axis Drive is designed to pass through the boat's transom close to the waterline, freeing up internal space without protruding excessively or raising the boat's centre of gravity.

In addition, a patented mid-section gearbox enables the drive to move in "yaw" (steering left or right) and in "pitch" (trim and tilt) without requiring a universal joint or having to move the engine as with outboards.

The cooling system is closed, so no salt water ever goes inside the engine, and the entire drive is constructed from surgical stainless steel, reducing friction and making it virtually corrosion-proof.

In addition to reduced emissions, improved drive efficiency and lower fuel consumption than the equivalent stern drives or outboards, the geometry of the new system allows for a trim down component during turns which, coupled with hydraulic power steering, improves handling and safety significantly.

Both engine and drive function are linked electronically to an advanced drive control unit that monitors performance and makes automatic adjustments to ensure maximum efficiency.

Beachy Head says the new drive was seven years in development and draws on technological advances that have been made in the motor racing industry. The 250, 300 and 350hp four-stroke engines that form the initial range are supplied by Nissan, with Xtrac on board with the transmission system. Other international development partners include Cosworth, Ford and Ilmor.

The company takes its name from its chairman, billionaire UK telecommunications entrepreneur John Caudwell, who has invested heavily in the project after meeting Beachy Head while in SA to experience flight in one of Thunder City's prize jets, a Lightning T5. Taking the Axis Drive from concept to launch has cost more than R400m.

He and Beachy Head are convinced the Axis Drive has significant export potential, arguing the marine propulsion market has not seen any significant technological advancement for decades and is open to products that are more fuel efficient and improve safety.

"We know this is a conservative market that is difficult to get into, but the thirst for something new is building," says Beachy Head. "The outboard was invented more than 100 years ago and the stern drive is 50 years old."

Caudwell Marine plans to set up its own distribution network in the US, and has already formed partnerships with independent boat builders that are helping generate interest in the new drive concept. It will also attend the METS exhibition in Amsterdam with a view to appointing a distributor for Europe.

Caudwell Marine international marketing manager Lloyd Williams says it has taken local and international investment of more than R250m to see the business grow from project phase to launch readiness. Durability evaluations and other certification requirements are in the process of being completed, and a further R50m investment is expected to be rolled out over the coming 18 months to build and equip a "Formula One" engine build and assembly area, which he says will be a world class facility.

"As the business comes on line with US boat builders, expansion to a larger product facility will be needed to accommodate demand. Local suppliers have been involved with critical elements of the development and are expected to provide up to 35% of the supply bill of materials ," Williams says.

Caudwell and Beachy Head have such faith in the Axis Drive system they are promising buyers if the unit suffers a breakdown that is not caused by the operator's negligence and cannot be repaired within six hours, Caudwell Marine will replace the unit with a new one within 24 hours at no cost.

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