"At the end of the day, it is perseverance that counts,” said Vassilis Dalacouras, sitting in the offices of Dalex Shipping, gazing out at a magnificent view of the Piraeus coastline and the Saronic islands beyond.

“Mistakes will be made, adversities will occur — one just has to have the tenacity and combativeness to pull through,” said the company’s 47-year-old management director, in an interview with TradeWinds.

Dalex has provided ample proof of that resilience in its 50 years of existence, a watershed it crossed this month.

Mistakes will be made, adversities will occur — one just has to have the tenacity and combativeness to pull through

Vassilis Dalacouras

Founded in the autumn of 1968 by George Dalacouras, Vassilis’ father who is now the company’s chairman, Dalex has navigated every twist and turn of Greece’s modern shipping history.

New blood

When George launched the firm, he was part of a new generation of players entering Greek shipping. Maritime companies popped up like mushrooms as enthusiastic entrepreneurs took advantage of generous incentives.

Some were from shipping families and] returned to Piraeus from London and New York [to join the boom. However, many others were new to the business.

George was a case in point. Traditional shipowner JM Carras picked him to serve as his personal assistant after it was suggested by Athens College, George’s alma mater.

After another stint at owner Aristides Alafouzos, George struck out on his own, setting up Dalex at about the time his eldest son, Dimitris, was born.

Within a few years, Dalex assembled a fleet of about 10 small, Mediterranean-going bulkers. In the mid-1970s, it ventured into larger ships, ordering newbuildings at Japanese yards.

For six years during the great shipping crisis of the 1980s, shipowners faced double-digit interest rates as charter income barely covered operating costs Photo: Creative Commons Zero - CC0

His company’s expansion did not prevent George, a highly versatile personality, from pursuing other interests. In 1974, he was elected as a member of Greece’s first post-junta government. Seven years later, he was among the first Greek lawmakers to sit in the European Parliament.

Delving into both politics and shipping was anything but simple. Splitting his time between the two did not allow him to do either properly, George wryly commented in later years.

Dalex reclaimed George’s full attention in the 1980s, when the great shipping crisis struck. “It was really bad. I remember it well because I was 13 years old at the time and had my first whiff of company life in the office,” his son Vassilis said.

It was really bad. I remember it well because I was 13 years old at the time and had my first whiff of company life in the office

Vassilis Dalacouras

For an entire six years, charter income barely exceeded operating costs while interest rates stood at sky-high, double-digit rates.

“The shipping crisis of 2016 was just a blip compared to what happened back then,” Vassilis said.

Changing hands

Ships changed hands at a frantic pace, as owners struggled to create cashflows out of thin air to keep lenders at bay.

Dalex coped, through a combination of tenacity, luck and good tactics. Keeping lenders happy was key to its survival. “'Never argue with the banks’, venerable figures like Anthony Angelicoussis advised my father,” Vassilis said.

Vassilis and brothers Dimitris and Michalis gradually entered the family business in the 1990s. They did not have to move far to do so — their home was just a couple floors above company offices in the Piraeus neighbourhood of Kastella, where Dalex is still located today.

Vassilis acquired his first hands-on experience at brokers, insurers and other shipping companies in Greece and England. Working onboard a freighter on domestic routes, however, was what he liked best. “I still enjoy boats, the sea, the smell of diesel oil,” he said.

Vassilis took over as management director in 2004.

Michalis, the youngest brother, is also a director at Dalex. Their elder brother, Dimitris, set up Conbulk Shipping, a separate company, in 2007.

George, who turned 80 in July, is still involved in the company business. His office overlooks the open-plan floor where the company’s employees work, including Vassilis.

“I freely admit I did everything wrong at the beginning,” Vassilis said. “I was too conservative in S&P [sale and purchase] in 2004 and 2005, when values were rising. Then I lost patience and bought a ship at the peak of the market in 2008.”

The Carlyle Group helped the traditional family-owned Greek shipping company evolve a modern corporate structure Photo: TradeWinds

The crisis of that year hurt Dalex hard. As with other companies, it had to sell ships to service its debt, leaving the company with a single vessel. “We managed to bring things on an even keel but we were still standing with our backs to the wall — I realised we needed a joint venture to move forward," Vassilis said.

Carlyle helped us evolve from a traditional family-owned shipping company to a modern corporate structure

Vassilis Dalacouras

Private equity provided the answer. After a roadshow organised by investment bankers in the summer of 2011, Dalex attracted the attention of The Carlyle Group, one of the world’s biggest private equity funds.

Carlyle alliance

In 2012, they set up Sterling, their joint venture vehicle. Over a span of three years from its inception, Sterling built a fleet of 13 modern handysize bulkers.

Teaming up with private equity proved positive for Dalex.

“Carlyle helped us evolve from a traditional family-owned shipping company to a modern corporate structure,” Vassilis said.

This included developing corporate governance, regular reporting procedures and enhanced accountability, which help the company identify hidden strengths and competitive advantages.

These are reflected in average operating cost, including management fees, of about $3,950 per day last year, according to the company’s internal figures — a level that many listed companies would envy.

The company is actively pursuing opportunities to expand its business. Dalex has already grown into third-party shipmanagement, taking over the technical operation of five vessels on behalf of US and Norwegian partners.

Vassilis' main ambition is to grow the company further and pass it on to the next generation of his family.

“If I can awaken their interest in shipping and they take over the company, free of any sense of entitlement, I will consider my job done.”