TT-Line transfers two-ship ropax contract to Rauma due to FSG problems

TT-Line, the Australian ferry company, said it has switched a contract to build two 50,600 gross ton ropax ferries to Rauma Marine Constructions in Finland from the  Flensburger Schiffbau-Gesellschaft (FSG) shipyard in Germany due to the problems at the last named builder.

TT-Line chairman Michael Grainger said the decision was mutually agreed by TT-Line and FSG. “While we respect there has been significant Tasmanian community interest, it was imperative the company followed its legal advice to protect the interests of the state of Tasmania at all times,” he said in a statement.

“The firm advice was that neither TT-Line nor the Government could make public comment regarding the contract details or the status of ongoing conversations with FSG until now. It was critical that we protected the interests of the State of Tasmania at all times. No payments to FSG have been made, and no payments will be made.”

Grainger said TT-Line had been in contact with another shipbuilder, the Rauma Marine Constructions (RMC). “RMC was one of the yards originally short-listed through the extensive procurement process undertaken. Since the cancellation of the contracts with FSG, TT-Line has signed a Memorandum of Understanding with the RMC and will commence contract negotiations and agree final design specifications. This will include finalising a new delivery date, which at the moment is late 2022 for hull 1 and late 2023 for hull 2. Both delivery dates are well within the expected replacement date of 2028,”Grainer continued.

“Importantly, the current Spirit of Tasmania vessels are already emissions compliant as was required by 2020 and can continue to operate safely and efficiently well past 2021.”

Grainger added that the majority of the work undertaken to date on the new vessels by TT-Line and their expert consultants was transferrable and would be utilised in the detailed design phase and contract negotiations with the new shipbuilder.

Cruise shares extend deep losses in early London trade

Shares in cruise related businesses, together wit the wider travel sector, extended deep losses of the past few days in early London trade on Wednesday, exceeding the losses of the wider market, on coronavirus fears.

At around 1030am, after two hours of trading, Carnival plc had lost 2.0% to £25.85, TUI AG that is involved in the cruise and package holiday businesses was 3.9% down at £7.0.

Cruise, travel and financial services group Saga plc had dropped a massive 13.5% to £0.36 and Global Ports Holding plc that is the world’s largest cruise port operator had dived 6.0% to trade at £2.0.

The FTSE100 index of leading shares was 0.8% down at the same time.

RCCL increases coronavirus effect to $0.90 per share – report

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping company, has increased its estimate for the effect of the coronavirus to $0.90 per share, Reuters reports.

On 14 February, the company estimated the effect would be a $0.60 reduction in earnings per share. n its 2019 earnings release that it published earlier this month, RCCL estimated its full year 2020 earnings per share to reach the range of $10.40 to $10.60

RCCL has canceled 30 cruises in southeast Asia following the coronavirus outbreak, Reuters reported.