2/2017 www.cruisebusiness.com C R U IS E B U SIN ES S R EV IE W 2/ 20 17 S H IP S IN T H IS IS S U E M EIN SC H IFF 6 n M SC M ER A V IG LIA n N O RW EG IA N JO Y CRUISE BUSINESS REVIEW ?????? ? ? ? ? ? ? Viking Cruises From upstart to leader in 20 years archipelago Creating new cruise destinations Kyushu and the Japanese yards One step closer? MSC Meraviglia A ship for all seasons Cruise ships from Chinese w 424x297_CBR 217 kansi.indd 1 25.8.2017 12.23
Follow the Sun SunStone currently has 10 vessels in its managed fleet, and has ordered four new INFINITY class vessels with options for an additional six. As the largest tonnage provider for the expedition market, SunStone offers vessels on charter to cruise companies, tour-operators and travel companies World-Wide. SunStone specializes in commercial management of passenger ships and is responsible for the buying, selling and chartering of the SunStone fleet. Embark on a never-ending exploration of the globe, with the direction and hands-on experience of SunStone Ships. Introducing INFINITY, a brand new class of expedition cruise vessels joining the SunStone fleet starting in 2019 Wherever Your Destination… SunStone Can Take You There. www.sunstoneships.com M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V VICTORY II The Best Way To P redict The Fu ture Is To C reate It M/V SEA SPIRIT M/V OCEAN ATLANTIC M/V SEA ENDURANCE M/V OCEAN NOVA M/V OCEAN ADVENTURER M/V SILVER DISCOVERER M/V VICTORY I G U I D A N C E • I N N O VAT I O N • S E R V I C E THE EXPERTS IN MARINE ELEVATORS AND ESCALATORS Find out more at www.kone-marine.com or contact us at marine.info@kone.com 424x297_CBR 217 kansi.indd 2 25.8.2017 12.23
CONTENTS MAIN FEATURES Cruise Business Review 2/2017 5 20 DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS Arnold Donald has been President and CEO of Carnival Corporation & plc since 2013. He talks with Fran Golden about the company’s turnaround and what’s next for the cruise giant. 27 LUTOFF-PERLO PREVIEWS CELEBRITY EDGE Celebrity Cruises is introducing its first new ship design in 10 years. President and CEO Lisa Lutoff-Perlo discusses the radical new Edge class with Fran Golden. 41 GIBRALTAR HOSTS 50th MEDCRUISE GENERAL ASSEMBLY MedCruise convened in Gibraltar in June for its 50th General Assembly. Kalle Id reports on the latest developments in the Mediterranean cruise market. 52 CHINESE-BUILT CRUISE SHIPS ONE STEP CLOSER Susan Parker interviews Fincantieri China CEO Fabrizio Ferri about the company’s part in establishing cruise shipbuilding in China. 69 NORWEGIAN JOY AND BLISS ELEVATE BREAKAWAY-PLUS PLATFORM Publisher Teijo Niemelä reviews the Norwegian Joy, NCL’s first purpose-built ship for Asia, and previews the Norwegian Bliss, the largest cruise ship to be deployed in Alaska to date. CRUISE BUSINESS REVIEW 2/2017 Upcoming Marine Exhibitions EUROPORT 2017 KORMARINE 2017 MARINTEC CHINA 2017 ASIA PACIFIC MARITIME 2018 OTC 2018 POSIDONIA 2018 SMM 2018 SMM 2018 wulffentre.com | sales@wulffentre.com +358 10 6335 500 Premium Exhibition Services 3-7 sisa?lto?.indd 3 28.8.2017 11.50
TECHNICAL 52 Chinese-built cruise ships one step closer 64 Jan Meyer on the future of Meyer Turku 66 New bridge design incorporates human factor International Registries (Far East) Limited in affiliation with the Marshall Islands Maritime & Corporate Administrators committed to the quality of the world fleet We are committed to upholding the values of safety, security, and environmental protection. This is evidenced through the quality of our fleet and outstanding port State control record as the only major international flag to remain on the United States Coast Guard’s Qualship 21 roster for 13 consecutive years. We achieve this goal through 24/7 service provided from 27 offices, staffed with experienced personnel, located in major shipping and financial centers around the world. hongkong@register-iri.com | blog.register-iri.com | www.register-iri.com 3-7 sisa?lto?.indd 5 28.8.2017 11.50
8 Cruise Business Review 2/2017 Publisher’s Letter HOW TO CONTACT ME ??? editor@cruisebusiness.com twitter.com/cruisebusiness youtube.com/cruisebusinessreview A s the major European cruise shipbuilders are enjoying record-strong cruise ship order books – with newbuilding deliveries reaching as far as 10 years into the future – several suppliers, smaller shipyards and designers have increasingly started to partner with Chinese shipyards. It was the Italian yard Fincantieri and Carnival Corporation & plc that paved the way toward developing complex cruise shipbuilding in China, starting with memorandums signed in November 2014. Carnival, which is a major cruise operator in the Chinese market, wanted to establish a sound foundation for cruise shipbuilding in China. Therefore, partnerships were formed between Carnival, Fincantieri and China State Shipbuilding Corporation. More about this can be read on page 52 of this issue, where Susan Parker interviews Fincantieri China CEO Fabrizio Ferri. Beyond this “mega-deal,” additional partnerships have been formed during 2017. In March, SunStone Ships, Inc. and China Merchants Industry Holdings Co., Ltd. (CMIH) signed a framework agreement for the construction of four expedition vessels with options for an additional six ships. The partnership includes Norway-based Ulstein Designs & Solutions, which will supply the vessel’s design and equipment package and supervise construction of the vessels. CMIH has also entered into an agreement with Finland-based Mäkinen, which will establish a cabin-assembly plant and interior workshop at the shipyard’s facilities. Another Norwegian company, Fosen Yard, announced a partnership with China’s Hantong Shipbuilding in July to form a joint venture for building ropax, roro and cruise ships. Fosen has previously built up-market passenger ships including the residential passenger vessel ms The World. Fosen possesses market-leading resources, know-how and technical and operational solutions to enable the joint venture to undertake a full scope of advanced projects within the roro, ropax and cruise sectors. Hantong will dedicate a modern shipyard facility to the joint venture. The partnership will be marketed as “Fosen Hantong” and projects shall, as per the agreement between the parties, be managed by Fosen. For an initial period of eight years, Hantong will cooperate exclusively with Fosen for all business that falls within the above described segments. Meanwhile, Viking Line, which raised eyebrows by contracting its next LNG-powered cruise ferry for its Finland-Sweden service from China’s Xiamen Shipbuilding Industry Co., Ltd., will receive extensive engineering and construction services from Finland’s Deltamarin Ltd. Deltamarin itself is part of AVIC Group, a listed Singapore company. W hen the China Cruise Shipping Conference (CCS12) convenes in Sanya, Hainan, on November 5-7, one of the hot topics will be cruise ship construction in China. Panel discussions and case studies will examine the path and strategy of cruise ship construction in China and analyze the failure of Japan’s Mitsubishi Heavy Industries to re-enter the business. Mitsubishi delivered the heavily-delayed second AIDA newbuilding to AIDA Cruises earlier this year, and reportedly has not sought further cruise ship projects. The CCS12 conference will also look at opportunities in China for European manufacturers and suppliers – many of them having already established a foothold in this important emerging market. Teijo Niemelä August 2017 EUROPEAN SUPPLIERS JOIN WITH CHINESE PARTNERS IN CRUISE SHIPBUILDING Teijo Niemelä photographed at the marina of Chestertown, Maryland. Chestertown is the newest U.S. cruise destination and currently also the home base for Cruise Business Review Ph ot o cr ed it: Ca ro ly n Sp en ce r Br ow n 8-9 pa?a?kka?ri.indd 2 25.8.2017 7.05
8-9 pa?a?kka?ri.indd 3 25.8.2017 7.05
10 Cruise Business Review 2/2017 HEADLINES Marine ASSA ABLOY Hospitality www.assaabloyhospitality.com/marine Mobile Access Cruise ship naming ceremonies in the usual and less traditional locations The Mein Schiff 6, the fourth newbuild from Germany’s TUI Cruises, was named in Hamburg on June 1 with the iconic new Elbphilharmonie concert hall as a backdrop. The head organist of the Elbphilarmonie, Iveta Apkalna, had the honor of breaking the traditional champagne bottle. MSC Cruises may change the location of its inaugural activities, but one thing that doesn’t change is the godmother. Screen legend Sophia Loren had the privilege of naming the MSC Meraviglia in Le Havre on June 4. With a gross tonnage of 171,598, the MSC Meraviglia is the largest cruise ship from a European shipowner and the largest to enter service in 2017. Palma de Mallorca on June 30 hosted the naming of the AIDAperla, the second 124,500 gross ton newbuild for AIDA Cruises from Japan’s Mitsubishi Heavy Industries. Godmother model and TV host Lena Gercke cheered with Captain Boris Becker after successfully breaking a 12liter bottle of Moët & Chandon champagne. 10-11.indd 2 25.8.2017 11.01
12 Cruise Business Review 2/2017 HEADLINES Viking Cruises’ third ocean ship – the Viking Sky – was christened during a public celebration in Tromsø, Norway, during the summer equinox on June 22. Located above the Arctic Circle, Tromsø was one of the more unusual locations for a cruise ship naming ceremony this season. Christening the vessel was the Viking Sky’s godmother Marit Barstad (right), sister of Viking Cruises Chairman Torstein Hagen (middle). The Majestic Princess, the first newly built Carnival Corporation cruise ship tailored for the Chinese market, was named in Shanghai on July 9. Yao Ming and Ye Li served as godparents and officially named the vessel during an inaugural ceremony. Yao Ming and his wife, Ye Li, were born in Shanghai and were both members of China’s national basketball teams. Yao Ming is an icon – one of the world’s best-known athletes, a global ambassador of basketball, an eight-time NBAAll-Star and, most recently, an inductee into the NBA Hall of Fame. Also attending the ceremony were Arnold Donald, President and CEO of Carnival Corporation & plc; and Jan Swartz, Group President, Princess Cruises and Carnival Australia. Norwegian Cruise Line celebrated the official naming of its first ship custom-built for China in Shanghai at the end of June. Executives from Norwegian Cruise Line Holdings Ltd., along with the Norwegian Joy’s godfather Wang Leehom and hull artist Tan Ping, took the stage during a gala ceremony. At 167,725 gross tons, the Norwegian Joy has a capacity for 3,883 guests and offers many innovations introduced for the first time on a cruise vessel. 12-17 headlines.indd 2 29.8.2017 7.20
16 Cruise Business Review 2/2017 ? Ranked one of the top cruise ports in the world, Port Everglades offers the speed, service and efficiency to help your business sail smoothly — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. SMARTER, FASTER, FRIENDLIER • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing is available. port.everglades | @porteverglades | PortEvergladesFL PEG798_Cruise Business Review_dolphin_FP_mech.indd 1 6/6/17 6:57 PM HEADLINES The Marina Bay Cruise Centre Singapore (MBCCS) celebrated its fifth anniversary with a bang on May 26. In its five years of operation, the MBCCS has achieved two other milestones: Welcoming its two-millionth passenger and handling its 500th ship call. From left are Sean Treacy, Managing Director Asia Pacific of Royal Caribbean Cruises, and Shirlene Ng, Sales Manager of Carnival plc (Singapore branch), receiving a plaque from Lionel Wong, CEO of SATS-Creuers (MBCCS terminal operator). The Asia Cruise Awards ceremony was part of the opening festivities of the Asia Cruise Forum Jeju on August 25. Awards were given in six different categories: Best Cruise Line went to Royal Caribbean International, Best Cruise Ship went to Princess Cruises for the Majestic Princess and Best Port-of-Call went to Okinawa. The Brodosplit shipyard in Split, Croatia, celebrated the first cut of steel for the Hondius of Dutch Oceanwide Expeditions. It will be the first vessel to be built to class LR PC6, meeting the latest and highest standards of Lloyd’s Register for Polar Class 6 vessels – the highest Polar Class notation for ice-strengthened ships. The Hondius will be 107.6 meters long, 17.6 meters wide and equipped with two main engines totaling 4,260kW, generating a speed of 15 knots. Passenger capacity will be 196 accommodated in 85 cabins. Meyer Werft and Royal Caribbean International marked the official start of construction for RCI’s new Quantum Ultra ship with the cutting of the first piece of steel in mid-August. The ship will officially be named the Spectrum of the Seas. Set to debut in 2019, the Spectrum will be designed specifically for guests in China and the Asia-Pacific region, with new features and amenities. ? ? ? 12-17 headlines.indd 6 29.8.2017 7.20
Ranked one of the top cruise ports in the world, Port Everglades offers the speed, service and efficiency to help your business sail smoothly — and your passengers smile wider. Visit porteverglades.net or call 800-421-0188. SMARTER, FASTER, FRIENDLIER • Our modern, efficiently operated terminals make transit a breeze. • We move passengers from curb to ship in just 15 minutes. • We’re fully scalable — accommodating any size ship or passenger volume. • Just two miles from FLL International Airport and minutes from world-famous beaches for easy access. • Our Harbormaster Office is a one-stop concierge open 24/7. • Year-round berthing is available. port.everglades | @porteverglades | PortEvergladesFL PEG798_Cruise Business Review_dolphin_FP_mech.indd 1 6/6/17 6:57 PM 12-17 headlines.indd 7 29.8.2017 7.20
Solutions for saving costs and compliance with emission regulations FUELLING CLEANER SHIPPING Blue Ocean Solutions was established in 2010 with a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. blueoceansoln.com BOS Emulsi ed Fuel System is a practical solution to save costs and comply with emission regulations providing more e cient fuel consumption (2-5%) and cleaner emissions. The system is capable of handling multi-fuels like HFO, IFO, MDO and MGO without use of chemical additives. The reference installations include cruise ships, bulk carriers, container ships, tugboats, tankers, Ro-Ro ferries and car carriers. The results have been independently veri ed by classi cation societies and engine manufacturer. BETTER FUEL EFFICIENCY 2-5% fuel savings BE N EF IT S MRV / GHG R EG U LA TI O N S MDO/MGO Reduced OPEX 2-5% fuel savings Less maintenance C O M PL IA N C E & PR O FI TA BI LI TY SMALLER SCR The system reduces up to 20% NOx at source Smaller CAPEX Smaller OPEX LESS CO2 Reduced OPEX 2-5% fuel savings Less maintenance The system is MRV integrated SCRUBBER More than compensate for any reduced fuel efficiency Soot, smoke and PM are reduced at source NOx TIER III For new build SULPHUR CAP REDUCED NOx up to 20% Cooler combustion CLEANER ENGINE & IMPROVED OPACTITY Less soot, smoke and PM Note: Emission factors 1t of HFO = 3.1144t of CO2 1t of MDO/MGO = 3.2060t of CO2 Note BE NE FI TS RE GU LA TI ON S CO M PL IA NC E & PR OF IT AB IL IT Y BLUE OCEAN SOLUTIONS YOUR PARTNER IN SUSTAINABLE SHIPPING Blue Ocean Solutions has a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. Blue Ocean Solutions is a subsidiary of Keppel O?shore & Marine, one of the largest o?shore and marine groups in the world with a global network of yards and o ces. It is the leader in o?shore rig design, construction and repair, ship repair and conversion and specialized shipbuilding. BEYOND FUEL SAVINGS BOS EMULSIFIED FUEL SYSTEM Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: contact.us@blueoceansoln.com Finland Fredrikinkatu 61, 6th oor, 00100 Helsinki t: (358) 30 6363716 e: contact.us@blueoceansoln.com The only system in Emulsi ed Fuel Technology that runs on HFO and MGO/MDO without chemical additives. Blue Ocean Solutions May 2017_A4 20/04/2017 10:40 Page 1 2020 Emulsified MDO/MGO/ COMPLIANT FUEL Reduced OPEX ? 2–5% savings on high cost fuel Emulsified HFO and SCRUBBER Reduced OPEX ? 2–5% fuel savings ? Less maintenance Reduced soot, smoke and PM at source emulsified fuel supports scrubber and compliant fuel Finland Fredrikinkatu 61, 6 th ?oor, 00100 Helsinki t: (358) 30 6363716 e: bos@blueoceansoln.com 0.5% Sulphur Cap Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: bos@blueoceansoln.com 18 Cruise Business Review 2/2017 ???? ???????????????????? (MBCCS) ???? ??????????????????????MBCCS??? ???????????500?????? ??????????????????????????Sean Treacy????????????? Shirlene Ng ?? MBCCS? ??????SATS-Creuers???????????????? ???????????? ??“???”??????? ???????????? ???????????? ???????????? ???????????? ???????????? ??3883??? 167725? ??????????? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? “ ? ? ? ? ? ” ? ? ? ? ? ? ? ? ? ? ? “???? ?” ?Quantum Ultra Class?? ??????? ? ? ? ? ? ? ????2019 ??????? ??????? ? ? ? ? ? ? ?? ????? “????” ? ? ? ? ? ? ? ? ? ? ??????????? ??????????? ??????????? ??????????? ??????????? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????????Arnold Donald? ?????? ??????????? Jan Swartz ?????? ?? ? 18-19 .indd 2 25.8.2017 10.58
Solutions for saving costs and compliance with emission regulations FUELLING CLEANER SHIPPING Blue Ocean Solutions was established in 2010 with a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. blueoceansoln.com BOS Emulsi ed Fuel System is a practical solution to save costs and comply with emission regulations providing more e cient fuel consumption (2-5%) and cleaner emissions. The system is capable of handling multi-fuels like HFO, IFO, MDO and MGO without use of chemical additives. The reference installations include cruise ships, bulk carriers, container ships, tugboats, tankers, Ro-Ro ferries and car carriers. The results have been independently veri ed by classi cation societies and engine manufacturer. BETTER FUEL EFFICIENCY 2-5% fuel savings BE N EF IT S MRV / GHG R EG U LA TI O N S MDO/MGO Reduced OPEX 2-5% fuel savings Less maintenance C O M PL IA N C E & PR O FI TA BI LI TY SMALLER SCR The system reduces up to 20% NOx at source Smaller CAPEX Smaller OPEX LESS CO2 Reduced OPEX 2-5% fuel savings Less maintenance The system is MRV integrated SCRUBBER More than compensate for any reduced fuel efficiency Soot, smoke and PM are reduced at source NOx TIER III For new build SULPHUR CAP REDUCED NOx up to 20% Cooler combustion CLEANER ENGINE & IMPROVED OPACTITY Less soot, smoke and PM Note: Emission factors 1t of HFO = 3.1144t of CO2 1t of MDO/MGO = 3.2060t of CO2 Note BE NE FI TS RE GU LA TI ON S CO M PL IA NC E & PR OF IT AB IL IT Y BLUE OCEAN SOLUTIONS YOUR PARTNER IN SUSTAINABLE SHIPPING Blue Ocean Solutions has a mission to help ship owners to improve their fuel e ciency and reduce environmental impact. The core expertise of Blue Ocean Solution is in emulsi ed fuel technology. Blue Ocean Solutions is a subsidiary of Keppel O?shore & Marine, one of the largest o?shore and marine groups in the world with a global network of yards and o ces. It is the leader in o?shore rig design, construction and repair, ship repair and conversion and specialized shipbuilding. BEYOND FUEL SAVINGS BOS EMULSIFIED FUEL SYSTEM Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: contact.us@blueoceansoln.com Finland Fredrikinkatu 61, 6th oor, 00100 Helsinki t: (358) 30 6363716 e: contact.us@blueoceansoln.com The only system in Emulsi ed Fuel Technology that runs on HFO and MGO/MDO without chemical additives. Blue Ocean Solutions May 2017_A4 20/04/2017 10:40 Page 1 2020 Emulsified MDO/MGO/ COMPLIANT FUEL Reduced OPEX ? 2–5% savings on high cost fuel Emulsified HFO and SCRUBBER Reduced OPEX ? 2–5% fuel savings ? Less maintenance Reduced soot, smoke and PM at source emulsified fuel supports scrubber and compliant fuel Finland Fredrikinkatu 61, 6 th ?oor, 00100 Helsinki t: (358) 30 6363716 e: bos@blueoceansoln.com 0.5% Sulphur Cap Singapore (Headquarters) 51 Pioneer Sector 1, Singapore 628437 t: (65) 6558 8445 e: bos@blueoceansoln.com 18-19 .indd 3 25.8.2017 10.58
20 Cruise Business Review 2/2017 INTERVIEW n GLOBAL CRUISE OPERATIONS ? Cruise Business Review: Last time we talked back in 2014, you were about six months on the job and full of ideas. What are you most proud of having accomplished since then? Arnold Donald: Two things, parallel: Continuing to exceed guest expectations across all of our 10 brands and the way the organizations have come together and aligned around common objectives; the way our brands have begun to communicate, collaborate and coordinate with each other. When I came in, the brands largely operated on their own. Now they’re working much more closely together, accelerating best practices, innovating together, legitimately leveraging the scale of all the diverse thinking we have as well as the scale of the assets we have. CBR: Yet brands such as Carnival Cruise Line, Holland America Line and Princess Cruises continue to differentiate themselves? Donald: In fact, they are much clearer on what their identities are than they were when I first came in. They’re much more focused on staying true to servicing the guests that they most resonate with. DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS DONALD LEADS CARNIVAL TO CHINA, CUBA AND RECORD EARNINGS Under the leadership of Arnold Donald, Carnival Corporation and plc last year achieved its highest full-year earnings in the company's 44-year history. Donald talked with Cruise Business Review's FRAN GOLDEN about the tremendous turnaround since he was named President and CEO of the company in 2013 and what’s next for the cruise giant. SOLUTIONS BEYOND YOUR WILDEST DREAMS? merima.fi Tatti 10, 00760 Helsinki, Finland +358 9 350 9300 Since 1987 , our mission has been to realise cutting-edge marine interior solutions that inspire and amaze. We offer complete solutions from design to the implementation. Whether new buildings or conversions , our top project management guarantees the finest quality and flexible solutions. Don’t hesitate to be creative and challenge us. 20-25 .indd 2 17.8.2017 7.30