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Penang Port and Royal Caribbean Cruises sign joint venture agreement to develop Swettenham Cruise Terminal in Penang

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 06 September 2018 06 September 2018

Penang Port Sdn Bhd (PPSB) has signed a joint venture agreement today with RCL Development Holdings (Penang) Sdn Bhd, an indirect wholly owned-subsidiary of one of the world’s leading cruise companies Royal Caribbean Cruises Ltd. (RCL), to redevelop its cruise terminal to accommodate larger ships. Dato’ Syed Mohamad Syed Murtaza, Chairman of PPSB and Gavin Smith, Senior Vice President of International, RCL inked the agreement, witnessed by YAB Chow Kon Yeow, Chief Minister of Penang and YB Loke Siew Fook, Minister of Transport in a ceremony held today at Eastern & Oriental Hotel in Penang, Malaysia. The two parties had previously signed a Heads of Agreement in March 2017.

In the redevelopment plans for Swettenham Pier Cruise Terminal (SPCT), the existing 400m berth will be extended by 220m with an additional 118m-long dolphin. It is designed with a view for future expansion in line with anticipated demand. With the current expansion plan, SPCT will be able to handle two mega sized cruise ships simultaneously on the outer berths along with one small and one medium sized ships on the inner berths by end 2019. The expansion will enable Oasis-class ships, the largest in the world, to berth at the terminal.

Sasedharan Vasudevan, PPSB’s CEO said “Detailed design and site investigations are already midway, with construction to begin before the end of 2018. The expansion will see a significant increase in international transit calls at Swettenham Pier Cruise Terminal along with an increase in appeal for the homeport segment in Penang.

With the State Government’s full support in managing tourism activities, logistics and transport staging around the terminal, we are confident in strong future growth of the cruise industry in Penang.”

Royal Caribbean’s Gavin Smith in thanking the Chief Minister Chow Kon Yeow and Transport Minister Anthony Loke said, “Royal Caribbean’s engagement with Penang and PPSB marks a significant step in our company’s efforts in encouraging port development in Asia. With the strong support of Penang State and the Malaysian Government, we are confident that the improved cruise terminal facilities will be a boost for the smooth berthing of the larger ships coming to Asia, including Quantum of the Seas next year, and usher in a new era of cruise tourism for Penang.”

Swettenham Pier is unique in Southeast Asia as being the only cruise terminal with a 200m walking distance to a city. This is further enhanced by the fact that the city in question, George Town, is a UNESCO world heritage site with a wealth of history and culture, and a renowned foodie-haven.

Penang is sunny all year round and thus Swettenham Pier is not subject to seasonal conditions, with ships able to call throughout the year. The value of the terminal’s location together with the port and State’s mutual goal to enhance the warehouse areas in the vicinity as a touristic waterfront city will further boost Penang’s tourism offering and push it to be a world-class cruise destination.

Have patience with China - CCYIA general secretary

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 06 September 2018 06 September 2018

The cruise industry has cut capacity in China in the recent past as the it has faced some challenges and headwinds, but no industry can triumph all the time and hence patience is needed, said Zheng Weihang, vice chairman and general secretary of China Cruise & Yacht Industry Association (CCYIA).

“I call on the capital market to be more patient with the cruise industry in China. Since last year, the international cruise companies have adjusted their transport capacity; the after effect of the ship-chartering mode has appeared; the tourism on shore has developed in an abnormal way; the cruise ports have been successively put into operation, but the ports at Asian destinations have shown little growth momentum,” he said in a statement.

“All the reasons in many aspects have caused the cruise industry in China to enter the period of market adjustment. I think that it is by no means out of expectation. No industry can triumph all the way, and it requires more patience to foster an emerging industry. There is no doubt that, after the adjustment period, China will still be the only market with the largest growth and development space in the world,” he continued.

"It is August 28, 2018, today. With so many “8” (indicating good fortune in China), China’s cruise industry will definitely flourish. However, from the perspectives of the whole world and history, the cruise industry has never obtained sudden huge profits in a very short period of time. For China’s local cruise economy, it requires more cultivation, without seeking quick success and instant benefits. In future, more capital will be invested in the cruise industry. Please be more patient with your expected return,” he said in connection of the closure of SkySea Cruise Line in Shanghai.

MAN Energy Solutions reports multiple orders in cruise segment

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 05 September 2018 05 September 2018

MAN Energy Solutions is currently experiencing a record order-intake within its cruise business. The company reports that, in the first eight months of 2018, it has won orders to supply seven new cruise ships with engines plus exhaust-gas- treatment systems – with a cumulative value close to a three-digit million EUR amount.

The orders total almost 300 MW of installed power for cruise ships ranging in size from 50,000 to approximately 140,000 gross tons, and running on fuel types from HFO to LNG. Delivery is scheduled from end-2019 to 2022.

Sokrates Tolgos – Head of Cruise Sales & Tendering, MAN Energy Solutions – said: “These orders demonstrate in a nutshell MAN’s capability to provide state-of- the-art, efficient engine technology along with emission-reducing solution packages regardless of the fuel type preferred by the customer.”

The engine technology and emission-reduction concepts ordered cover a wide range of MAN’s solution portfolio for the marine business: from type 32/44CR engines with fully electronic common-rail injection systems capable of operating on HFO, to dual-fuel type 51/60DF engines that enable the use of both LNG and oil- based fuels. The orders also include MAN’s propietary NOx-reducing SCR system as well as closed-loop-type wet scrubbers sourced from MAN partners.

Lex Nijsen, Head of Four-Stroke Marine, MAN Energy Solutions, said: "The growth in order intake is very gratifying as system technologies that help our customers to increase the efficiency of their plants and reduce emissions play a central role in our business. We plan to continue this growth by making increasing use of our capabilities as an integrated system supplier, which we have built up over the past few years."

New Indian company Zen Cruises emerges as buyer of Pacific Jewel

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 August 2018 29 August 2018

Zen Cruises, a new venture established by the Essel Group that has its headquarters in Mumbai in India has emerged as buyer of Pacific Jewel of P&O Cruises Australia, a report said.

Meanwhile, Essel Group has appointed Jurgen Bailom as the President and CEO of Zen Cruises Pvt Ltd, Moneycontrol.com reported on its website.

"Bailom will steer the company on a course to captivate Indian cruise passengers with an offering par excellence. With Bailom's appointment, Essel Group heralds the announcement of India's premium cruise line with the purchase of its first ship, the Pacific Jewel a 70,285 (gross) ton, 2,000 passenger ship from P&O (Cruises) Australia," the company was cited as saying by Moneycontrol.

Essel Group is a conglomerate with presence in various business that range from media to healthy living and financial services, according to information on its website

Fincantieri and CSSC to extend industrial cooperation

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 28 August 2018 28 August 2018

Fincantieri and China State Shipbuilding Corporation (CSSC), have signed a Memorandum of Understanding for the extension of the industrial cooperation already existing between the two groups to all segments of merchant shipbuilding, the Italian shipbuilder said in a statement.

The agreement foresees the parties to discuss the possibility to extend their current collaboration, which counts a joint venture dedicated to the first cruise ships ever built in China for the local market and other related activities, including a number of research and development projects in several areas of the shipbuilding, such as cruise ferries; mega-yachts; as well as cruise cabins, interior decoration, and the establishment of a reliable supply chain in the cruise segment in China.

“The parties may consider additional cooperation opportunities and may therefore extend the scope of the agreement to other areas,” Fincantieri said, adding that it and CSSC will establish a joint working group, composed of six members with appropriate technical expertise, three selected by each side.

This group aims, by the end of the year, to conclude the preliminary activities: to define potential opportunities for each of the areas identified for the collaboration, to analyse the market size and to identify preferential sales channel, to analyse potential partnership among CSSC and Fincantieri group companies or its network of suppliers.

In February 2017 Fincantieri, CSSC and Carnival Corporation & plc signed a binding agreement for the construction of two cruise ships, with an option for additional four, at the Shanghai Waigaoqiao Shipbuilding (SWS) shipyard.

The group also signed a letter of intent (LOI) with CSSC and the Shanghai City’s district of Baoshan for the development of the supply chain mainly dedicated to cruise activities, as well as shipbuilding and maritime, and a comprehensive agreement in the field of ship repair and conversions with Huarun Dadong Dockyard (HRDD), the leading Chinese shipyard specialized in ship repair and refitting activities, aimed at serving the cruise ships based in China.