Norwegian Cruise Line Holdings Ltd. today announced it confirmed its previously announced options for the fifth and sixth Project Leonardo Class ships with Fincantieri S.p.A. for Norwegian Cruise Line for delivery in 2026 and 2027.
“These orders extend our disciplined and measured newbuild program and strong growth trajectory well into the future and will further drive long-term returns for our shareholders,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “Our six-ship Leonardo Class fleet will allow us to broaden our deployment into strong performing and mature unserved and underserved markets and offer new experiences to our guests.”
At 140,000 gross tons and accommodating approximately 3,300 guests, this next generation class of ships will build upon the highly successful offering of freedom and flexibility found across Norwegian Cruise Line’s fleet, including the most recent Breakaway Plus Class ships, and feature a host of inventive designs that will further elevate its already award-winning guest experience. A priority of the prototype design is energy efficiency, with the aim of optimizing fuel consumption and reducing the impact on the environment. The smaller footprint will also broaden deployment opportunities around the world. Details on the many innovative guest-facing and first-at-sea features will be announced at a later date.
“Following the Breakaway Plus Class, the most successful class in our company’s history, the highly anticipated Leonardo Class will fuel future growth with exciting and innovative offerings that will meaningfully drive demand from new and loyal returning guests alike,” said Andy Stuart, president and chief executive officer of Norwegian Cruise Line.
With today's announcement, Norwegian Cruise Line Holdings has seven ships on order for Norwegian Cruise Line and one for Regent Seven Seas Cruises for a total of eight vessels for delivery through 2027. The company will take delivery of its newest ship, Norwegian Encore, in fall 2019.
MSC Cruises and Miami-Dade county announced the signing of an agreement for extended preferential berthing rights as well as of a Memorandum of Understanding (MOU) for the construction of a new Cruise Terminal AAA at PortMiami. Pierfrancesco Vago, Executive Chairman of MSC Cruises, commented: “The new agreement and expanded partnership with PortMiami and Miami-Dade County is another key step forward in the business growth of MSC Cruises, as we continue to strengthen our global footprint, with a strategic focus on North America."
PortMiami is the company’s exclusive home-port in the U.S. The new agreement extends MSC Cruises’ existing Saturday preferential berthing rights also to Sundays. Additionally, the new terminal — which is projected to be completed by October 2022 — will be able to accommodate MSC Cruises’ next-generation, still under construction MSC World Class cruise ships carrying up to 7,000 guests.
Currently the revolutionary MSC Seaside, which debuted only a few months ago in late 2017, sails year around from Miami to the Caribbean from the recently completed Terminal F. MSC Divina also sails seasonally to the Caribbean from October through March, and MSC Armonia will join MSC Cruises’ North American-based fleet beginning year-round cruises to Havana, Cuba in December 2018. In addition, as of November 2019, MSC Meraviglia, the company’s largest ship at 171,598 gross tons with the capacity to carry 5,714 cruise guests (4,488 at double occupancy), will join the other three ships at PortMiami.
“PortMiami is committed to providing a world-class experience to its guests and thanks to a long-standing collaborative relationship with Miami-Dade County we are thrilled that in less than 18 months MSC Cruises will have four ships sailing from the Port,” said Rick Sasso, Chairman of MSC Cruises USA. “This will also allow us to make a significant additional contribution to the economy of Miami and the county in its role as the Capital of the Cruise World, especially thanks to the large percentage of international guests traveling to Miami and South Florida to embark and disembark from MSC Cruises ships calling PortMiami. We now look forward to further extending our partnership with the Port and working closely on the development of the new cruise terminal AAA.”
"In 2017, MSC Cruises worked with PortMiami on the completion of Terminal F, home to MSC Seaside, the first MSC Cruises ship to be built specifically for North American market and the Caribbean,” said Roberto Fusaro, President of MSC Cruises USA. “The construction of another cruise terminal is further testament of our commitment to U.S. travel partners and their guests, as it will allow us to continue to enhance our service, starting right from embarkation.”
“Investing in PortMiami's infrastructure positions Miami-Dade County as a global destination for visitors," said Miami-Dade County Mayor Carlos A. Gimenez. "The construction of a new cruise terminal AAA with the capacity to berth an additional 7,000-passenger cruise ship represents thousands of jobs and increased opportunities for our community. We are grateful for MSC Cruises continued partnership.”
"We are proud and extremely honored by MSC's commitment to PortMiami and Miami-Dade County,” said Chairwoman of the Miami-Dade County Economic Development and Tourism Committee Rebeca Sosa. “MSC’s continued partnership is a big win for the growth and expansion of tourism in Miami-Dade County.”
Rolls-Royce announced today that it has signed an agreement to sell its Commercial Marine business, to Kongsberg, for an enterprise value of £500m and net proceeds of around £350m to £400m.
Kongsberg, headquartered in Kongsberg, Norway, is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors. Kongsberg is represented in more than 25 countries with approximately 7,000 employees and has a turnover of NOK 14.5bn (2017). In the maritime industry, the companies are complementary in their products, solutions and competence.
The move follows a strategic review by Rolls-Royce of its Commercial Marine operations announced in January 2018. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability, which to date has seen around 1,000 ships of Rolls-Royce design delivered to offshore, cargo, passenger and fishing vessel customers worldwide. Rolls-Royce’s Ship Intelligence activities, which have seen the rapid development of technologies to enable remote and autonomous operation of commercial vessels, are also included.
Kongsberg will, through a trading arrangement, continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. The Bergen engine range of both diesel and gas medium-speed engines is a key component that will enable Kongsberg to be a leader in the continued development of integrated ship systems. Kongsberg will also be an important partner and supplier to Rolls-Royce’s Defence business for the supply of Commercial Marine products used on Naval vessels.
Rolls-Royce Power Systems will continue to supply MTU engines to a range of customers in the marine market including operators of commercial vessels and yachts. The Naval gas turbine propulsion activities will continue to be a core part of Rolls-Royce Defence.
Commercial Marine has approximately 3,600 employees, with the majority based in the Nordic region. In 2017 the Commercial Marine business generated revenue of £817m with an operating loss of £70m reflected in the Group’s financial results. After taking into account various central cost recharges included in this reported figure, the disposal is expected to have had around a £50m positive profit impact based on 2017 pro forma figures. These figures were consolidated within the results of Rolls-Royce Marine.
Warren East, Chief Executive of Rolls-Royce, said: “This transaction builds on the actions we have taken over the last two years to simplify our business. The sale of our Commercial Marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.”
Geir Håøy, Chief Executive and President of Kongsberg, said: “The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry. The maritime industry is becoming increasingly globalised and is undergoing considerable technological and market driven changes. With this acquisition we will strengthen our strategic position with shipowners, shipyards and other customers and partners.”
Mikael Makinen, Rolls-Royce President, Commercial Marine added: “Today marks the start of a new horizon for our Commercial Marine business. This deal comes at a time when the maritime industry is at the dawn of a new and exciting era where digital and electrical technologies will transform shipping.
Rolls-Royce has been responsible for leading many of those technological advancements, and with combination of great people, market-leading technology and a desire by Kongsberg to take this business to the next level, I am sure that this business will prosper in the years to come.
“We will now work closely with Kongsberg as we go through the transition in the months ahead. I would like to pay tribute to the 3,600 Commercial Marine employees who have maintained absolute focus on their day jobs, winning business and maintaining the levels of support our customers expect.”
The transaction has been approved by the boards of both Rolls-Royce and Kongsberg and is expected to close in Q1 2019, subject to clearance from the regulatory authorities.
The disposal enterprise value is £500m. After taking into consideration pension liabilities and provisions, separation costs, advisor fees and working capital, net proceeds of £350m to £400m are expected. Net proceeds will be dependent upon final outturn working capital at completion.
The proceeds will be used to improve the resilience of the Rolls-Royce balance sheet and provide additional capital to judiciously pursue opportunities that will drive greater returns for the Group. Full year 2018 guidance for revenue, profit and free cash flow provided by Rolls-Royce on 7 March 2018 included Commercial Marine.
Vard Holdings Limited the Norwegian designer and builder of specialised vessels controlled by Fincantieri, said it has secured a contract for the design and construction of a luxury expedition cruise vessel for German cruise company Hapag-Lloyd Kreutzfahrten, which is part of the TUI AG group.
The vessel will join Hapag-Lloyd Cruises Hanseatic series, together with the two vessels that Vard already has under construction for the Germany-based cruise company. Developed by Vard in close cooperation with Hapag-Lloyd Kreuzfahrten, the vessels are specially designed for cruises in polar regions in the Arctic and Antarctica, as well as operations in warm water destinations such as the Amazon.
The new vessel will be approximately 16,000 gross tons, about 139 metres long and 22 metres wide. The vessel has seven passenger decks, with accommodation for 230 passengers in 120 cabins and suites. Similar to its sister vessels, the new vessel will be equipped with high standard of facilities. The Hanseatic series features a water sports marina and modern spa and fitness areas. Delivery of the vessel is scheduled from Vard Langsten in Norway in 2Q 2021. The hull will be built by Vard’ shipyard in Romania.
Phoenix Reisen, the German deep sea and river cruise operator, has acquired the 37,983 gross ton Prinsendam from Holland America Line, which is part of the Carnival Corporation & plc group.
“Prinsendam's itineraries from July 1, 2019, onward are scheduled to be assimilated by Rotterdam, Volendam and Veendam. Holland America Line is reaching out to booked guests and their travel professionals to re-accommodate guests on these cruises,” the company said in a statement.
Built in 1988 as Royal Viking Sun for the now defunct Royal Viking Line, the 835 passenger capacity ships is the oldest ship in the Carnival group fleet and the smallest one in that of Holland America Line.
Its sale comes soon after P&O Cruises, another Carnival group member, had unveiled decision to withdraw the 1995 built Oriana of 69,840 gross tons next year, plus the sale of P&O Cruises Australia’s 1992 built Pacific Eden to Cruise & Maritime Voyages in the UK, who will rename it Vasco da Gama. The new name of Prinsendam has not been disclosed. Phoenix had been reported in some media reports to be looking for newbuildings.