Peter T. Leach, Senior Editor | Apr 26, 2012 8:00AM EDT
CSAV is creating a new management function, called strategic development and planning, to oversee the struggling Chilean carrier’s restructuring, strengthen its management team and make it more competitive.
The new department will come under the direction of Rafael Ferriday, currently CSAV’s senior vice president, administration and finance, starting May 1.
The administration and finance management will be taken over by Nicolas Burr, who is being brought in from Indalum, a subsidiary of Madeco, where he is general manager.
CSAV said it has also reached an agreement with McKinsey to explore improvements in the processes that affect the company’s results.
The new strategic development and planning function, which was approved by the CSAV board on April 20, is designed to lead CSAV’s transformation project along the lines of the restructuring implemented in 2011 and the company’s new strategic guidelines.
The new unit will work with McKinsey to explore all the possibilities for the improvement of CSAV’s different internal processes that have an impact on the company’s profitability.
CSAV implemented a deep and complete restructuring in 2011 to improve its competitive and financial position. The company reduced its container-carrying capacity by around 50 percent from levels in the first months of 2011. Under an agreement with its shipowners, it increased the volume of joint operations from around 30 percent at the beginning of last year to over 90 percent at present. The company is also increasing its own fleet which will rise from 9 percent in early 2011 to 37 percent in July 2012.
In addition, it completed two capital increases, one for $500 million in July 2011 and the second for $1.2 billion in February of this year.
The second capital increase led to the formal division of the company and the creation of SM – SAAM, a company holding the shares of CSAV’s former subsidiary, SAAM. Both companies are today trading separately on the Santiago Stock Exchange.
Contact Peter T. Leach at pleach@joc.com. Follow him on Twitter @petertleach.