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Carnival Corporation orders three new ships from Meyer Turku and Papenburg shipyards

  • Written by Teijo Niemelä

Meyer Turku has signed a memorandum of agreement with the world’s largest cruise ship operator Carnival Corporation & plc for three new 180 000 gross ton cruise ships. Two of the ships will be built for Carnival Cruise Line with delivery dates expected in 2020 and 2022, and one for P&O Cruises to be delivered in 2020.

All three ships will be Liquefied Natural Gas (LNG) powered and will be based on the next-generation “green cruising” ship design developed with Carnival Corporation.

“We are proud to be at the forefront of introducing LNG-powered ships to the cruise industry, working with our partners to achieve shipbuilding breakthroughs like this that will help us produce the most efficient and sustainable ships we have ever built,” said Arnold Donald, CEO of Carnival Corporation & plc.

Jan Meyer, CEO of Meyer Turku said: “We are very happy to work again with both Carnival Cruise Line and P&O Cruises. In Turku we are also very excited as these ships will be the first ones to the get full benefit from our investments in next-generation production facilities and IT-systems. Another important aspect is the long-term horizon for our business. It creates an environment where we and also our suppliers can grow and develop. In the end this will lead to a lot of good work for us and other Finnish companies," Jan Meyer comments.

In conjunction with the order for Turku, the delivery of the 2nd ship for Costa Cruises will shift from 2020 to 2021.

Hapag-Lloyd emerges as previously undisclosed Vard expedition cruise ship customer

  • Written by Kari Reinikainen

Vard Holdings Limited, the Norwegian unit of Fincantieri, says it has won a contract for two expedition cruise ships from Hapag-Lloyd Kreuzfahrten, the German luxury and expedition cruise operator that is owned by the Anglo-German TUI AG group.

A letter or intent regarding the ships was signed in May and at the time, Vard said the counterpart was “an undisclosed cruise company.” Final contravt is subject to financing.

The 16,100 gross ton vessels will be 138 metres in length and 22 metres wide and they will have accommodation for 240 passengers in 120 cabins. They will feature a water sports marina and extensive spa and fitness areas.

The hulls will be built in Tulcea in Romania and the fitting out will be carried at at Langsten in Norway. Both are Vard’s shipyards. The vessels will be delivered in the first and final quarter of 2019, respectively.

Genting Hong Kong to turn MV Werften leading cruise ship builder, unveils investment plan

  • Written by Kari Reinikainen

Genting Hong Kong, the rapidly expanding Asian cruise shipping group which acquired three shipyards in Germany last year, plans to developed the MV Werften yards as they are now known into a leading builder of cruise ships, Genting Hong Kong said in its first half 2016 interim result statement.

“The combination of the three yards’ proximity, size and facilities on-site makes it a natural builder of large cruise ships. Post re-organization, the Group’s goal is to transform MV Werften to become the world’s leading and most efficient cruise shipbuilder by making key investments and modernisations, such as thin plate laser welding lines, a cabin module factory, a new covered section block building hall, the modernization of manufacturing control systems and new offices and facilities<’ the company said in a statement.

“Combined with these improvements and the growing workforce of 1,400 employees, the Group envisions MV Werften to output two Neo-Panamax and one Panamax cruise ships per year,” it reiterated an earlier stated objective.

Genting Hong Kong’s cruise activities plunge to deep loss in first half

  • Written by Kari Reinikainen

The cruise operations of Genting Hong Kong, the rapidly expanding cruise shipping group, plunged to a deep loss in the first six months of the year despite a significant increase in turnover as one-off expenses hit the company.

The company owns Star Cruises, the Asia-Pacific focuded contemporary market line, Dream Cruises that focuses on the premium market in the same region and Crystal Cruises, the Los Angeles based luxury market line.

Loss from cruise operations amounted to $49.5 million compared to a profit of $0.3 million in the same period last year. Ticket revenues increased sharply, thanks to the Crystal Cruises’ acquisition last year, and reached $201.9 million compared to $99.5 million in the first half of 2015.

On board revenues increased too, to $182.0 million from $165.6 million, which pulled total revenues to $383.9 million from $265.1 million in the first six months of 2015.

“Passenger ticket revenue and onboard revenue increased significantly for the six months ended 30 June 2016 due to the full six months’ contribution from Crystal Cruises. However, one-time start-up and marketing costs for the launch of new Dream and Crystal cruise brands and products in 2016, together with higher overall operating and selling, general and administrative expenses including depreciation and amortisation resulted in segmental loss of our cruise and cruise-related activities,” the company said in a statement.

The group held $793.1 million in cash at the end of June, a fall from $1.25 billion at the end December 2015. "The Group adopts a prudent treasury policy with all financing and treasury activities being managed and controlled at its corporate head office. The Group manages its foreign exchange exposures primarily through forward rate agreements. It is also the Group’s policy that hedging will not be performed in excess of actual requirement," Genting Hong Kong said.

Carnival Corporation and Port Everglades extend landmark agreement to 2030

  • Written by Teijo Niemelä

Carnival Corporation & plc, the world’s largest leisure travel company, yesterday signed an addendum to one of its most strategic passenger terminal agreements, extending the contract through 2030 with an additional five years of sailings to and from Fort Lauderdale-based Port Everglades, one of the world’s top three cruise ports.

The addendum builds on the landmark 15-year agreement reached in 2010 with the Broward County Board of County Commissioners and furthers Carnival Corporation’s commitment to Port Everglades, which overall has more than 3.6 million multi-day cruise passengers a year. Overall, the agreement and business generated from Carnival Corporation’s brands operating at Port Everglades produces a significant positive economic impact for the port and county.

As part of the addendum, Carnival Corporation will have preferential use of Cruise Terminal 4, which reopened last year after $24 million worth of renovations and upgrades designed for greater efficiency and guest convenience.

Additionally, the port is currently undertaking an estimated $13.6 million slip extension project on Terminal 4, expected to be complete by the middle of 2017, that will lengthen the slip to accommodate larger cruise ships.

As part of the long-term agreement, the company also has preferential use of three additional terminals, Cruise Terminals 2, 21 and 26, along with one additional terminal. This provides five terminals in total for Carnival Corporation to serve its guests who visit Fort Lauderdale as part of their cruise vacation.

“Carnival Corporation is a critical Port Everglades partner, and its many unique cruise line brands offer guests sailing into and out of our port with a wide variety of cruise experiences and itineraries,” said Steve Cernak, chief executive and port director of Port Everglades. “Carnival Corporation has a strong, long-standing presence in the Broward County community, and the additional five years included in the agreement reinforces that commitment. We look forward to welcoming the newest member of Holland America Line’s fleet, ms Koningsdam, to our sunny shores in November.”

Furthering its dedication to the port, the company will add a second ship from its Carnival Cruise Line brand, Carnival Splendor, to sail from Port Everglades during the 2017 summer season. In addition to Carnival Cruise Line, six more of Carnival Corporation’s 10 global cruise line brands currently carry nearly a million and a half passengers to and from Port Everglades each year. These brands include Holland America Line, Costa Cruises, Cunard Line, P&O Cruises UK, Princess Cruises and Seabourn. The seven Carnival Corporation brands and 28 different ships account for a combined average of more than 300 calls at the port each year.

“Florida is the largest cruise market in the world, and we are thrilled to extend our agreement with Port Everglades, which is an extremely convenient and popular location for our guests with close proximity to Fort Lauderdale-Hollywood International Airport and the Caribbean, the world’s most popular region for cruise vacations,” said Giora Israel, senior vice president of global port and destination development for Carnival Corporation. “We place great value on the long and successful relationship we have built with the port and Broward County, and we look forward to working together to meet our most important goal -- providing memorable vacation experiences for our guests for many years to come.”

As part of the original agreement, the port undertook a $54 million cruise terminal renovation project to make significant improvements to four existing cruise terminals to accommodate ships from Carnival Corporation’s fleet of global cruise line brands. Enhancements made as part of the project included features to enable simultaneous embarkation and debarkation processes, including two passenger loading bridges, separate and larger baggage halls and improved ground transportation areas. As part of the extension, Carnival Corporation and Port Everglades will engage in discussions to examine the opportunity for possible further improvements to Cruise Terminal 21 to accommodate Carnival Corporation’s newest class of ships.


CBR 1/2016 contents

CBR 3/2015 contents