CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Winter 2020 ICS 2019 advocates new thinking NORWEGIAN MARITIME INDUSTRY races against time NORWEGIAN MARITIME INDUSTRY races against time GREG MORTIMER overcomes barriers for on-time delivery GREG MORTIMER overcomes barriers for on-time delivery MEGASHIP DELIVERIES Carnival Corporation & plc took delivery of three new megaships during the fall of 2019. One of them was the Sky Princess, seen here in a photo by Len Kaufman sailing from Port Everglades. The debut of the Sky Princess marked the first MedallionClass newbuild powered by the OceanMedallion – the global hospitality industry’s most advanced wearable device. Kansi winter20.indd 1 3.2.2020 16.54 Untitled-1 1 10.2.2020 13.50
E X P L O R AT I O N OTHER VESSELS www.sunstoneships.com Wherever Your Destination, SunStone Can Take You There. As you explore farther and farther into the frontier, we’re there to support you. Our clients and partners depend on SunStone’s innovation to facilitate their ongoing exploration and expansion. Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. M/V OCEAN ATLANTIC M/V SEA SPIRIT M/V GREG MORTIMER M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V QUEST M/V OCEAN NOVA IS THE ENGINE THAT DRIVES INNOVATION. — EDITH WIDDER, O CEANO GRAPHER — Follow The Sun. M/V OCEAN ADVENTURER OCEAN DISCOVERER Delivery September 2022 AURORA II Delivery September 2021 OCEAN EXPLORER/ODYSSEY Delivery Jan. 2021/Mar. 2022 INFINITY-CLASS VESSELS | OCEAN VICTORY, Delivery October 2020 OCEAN ALBATROS Delivery October 2022 wulffentre.com | sales@wulffentre.com | +358 10 6335 500 Wulff Entre is an exhibition and event service house. We are trade show specialists providing event consulting, stand design and project management services to help our customers to exceed their expectations. We are specialized in maritime and offshore industry events, helping our clients to build networks, make money and be visible in their target shows around the world. One world – One partner. Partnering with us will provide you more time to focus on your exhibition strategy to get the best results, don’t let your investment go to waste! ? Show selection service ? Space booking ? Exhibition strategy ? Stand design and ideas to fit your budget ? Project management ? Visitor engagement ? Onsite service (freight, catering, staff...) ? Business events As an ISO 9001:2008 certified company, we are driven by customer satisfaction and our processes are streamlined to provide you the best service, quality and experience possible. Wulff Entre is a member of the UN Global Compact and is committed to supporting and implementing the ten fundamental principles relating to human rights, labour standards, the environment and the fight against corruption. Kansi winter20.indd 2 3.2.2020 16.54 Untitled-1 2 10.2.2020 13.50
E X P L O R AT I O N OTHER VESSELS www.sunstoneships.com Wherever Your Destination, SunStone Can Take You There. As you explore farther and farther into the frontier, we’re there to support you. Our clients and partners depend on SunStone’s innovation to facilitate their ongoing exploration and expansion. Our INFINITY class vessels are a leap forward in technology, design, safety and cost. Join us as expedition cruising enters the INFINITY-era. M/V OCEAN ATLANTIC M/V SEA SPIRIT M/V GREG MORTIMER M/V OCEAN DIAMOND M/V OCEAN ENDEAVOUR M/V QUEST M/V OCEAN NOVA IS THE ENGINE THAT DRIVES INNOVATION. — EDITH WIDDER, O CEANO GRAPHER — Follow The Sun. M/V OCEAN ADVENTURER OCEAN DISCOVERER Delivery September 2022 AURORA II Delivery September 2021 OCEAN EXPLORER/ODYSSEY Delivery Jan. 2021/Mar. 2022 INFINITY-CLASS VESSELS | OCEAN VICTORY, Delivery October 2020 OCEAN ALBATROS Delivery October 2022 When your guests cruise in and out of Port Everglades, they’ll save time getting to their ship and starting their cruise vacation. We’re just 3 minutes from Fort Lauderdale Hollywood International Airport (FLL), and we’re easily accessible from South Florida’s major highways. Plus, our newly renovated modern terminals are designed for ef? ciency. That all adds up to less time traveling and more time cruising. Visit porteverglades.net or call 800-421-0188. SAY BON VOYAGE SOONER PEV116_Cruise Biz Review_FP_Cruise Lounge_Mech.indd 1 11/21/18 10:52 AM 2-3-4-5-6-.indd 3 3.2.2020 9.53
wulffentre.com | sales@wulffentre.com | +358 10 6335 500 Wulff Entre is an exhibition and event service house. We are trade show specialists providing event consulting, stand design and project management services to help our customers to exceed their expectations. We are specialized in maritime and offshore industry events, helping our clients to build networks, make money and be visible in their target shows around the world. One world – One partner. Partnering with us will provide you more time to focus on your exhibition strategy to get the best results, don’t let your investment go to waste! ? Show selection service ? Space booking ? Exhibition strategy ? Stand design and ideas to fit your budget ? Project management ? Visitor engagement ? Onsite service (freight, catering, staff...) ? Business events As an ISO 9001:2008 certified company, we are driven by customer satisfaction and our processes are streamlined to provide you the best service, quality and experience possible. Wulff Entre is a member of the UN Global Compact and is committed to supporting and implementing the ten fundamental principles relating to human rights, labour standards, the environment and the fight against corruption. 2-3-4-5-6-.indd 6 6.2.2020 14.15
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 7 CONTENTS – WINTER 2020 8 Editor’s Commentary 12 Upfront 16 Sakata cruise port 20 Madrid Summit sees industry reaching maturity 24 Smeralda marks quantum leap for Costa 32 Sky Princess – evolution of Royal-class 34 Norwegian Encore completes Breakaway Plus Class 40 Greg Mortimer emerges from China 46 Ferries – test beds for technology 52 Scrubber retrofits present opportunity and challenge 54 Norway races toward zero emissions 58 Viking enters expedition segment 62 MedCruise stresses working together Iconic Sankyo warehouse is one of the many attractions of cruise-friendly Sakata in Yamagata, Japan. Read more from page 16. Ph oto cre dit : Te ijo Ni em elä 7 .indd 1 10.2.2020 11.15
Editor Teijo Niemelä Publisher Cruise Media LLC Copy Editor M.T. Schwartzman Sales and Production Christer Gorschelnik Art Director Julle Järvinen, Julle Oy COMPANY ADDRESS Cruise Media LLC 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 E-mail cruisemediallc[a]gmail.com SALES OFFICE FINLAND ChrisGo Consulting Pahtankatu 10 as 10 FIN-21200 Raisio, Finland Telephone +358-440-159 554 E-mail christer.gorschelnik[a]kolumbus.fi SALES OFFICE USA Teijo Niemelä 209 N Queen Street Chestertown, MD 21620 USA Telephone +1-609-751-2344 cruisemediallc[a]gmail.com FEATURED PHOTOGRAPHER Based in Hollywood, Florida, between PortMiami and Port Everglades, travel photographer Len Kaufman is famed for the dramatic images he has made in 90 countries. His advertising photography has been featured by cruise lines, airlines and tourism destinations around the world. A specialty is still and video aerial photography. His YouTube channel has over three-quarters of a million views. PRINTED IN FINLAND – PUNAMUSTA OY, HELSINKI www.cruisebusinessmagazine.com S hipbuilders have enjoyed an unprecedented boom of orders for new cruise ships during the last few years. Meanwhile, a lack of building slots has prompted several inexperienced shipyards to enter the field – especially in the small-ship sector. At the same time, cruise operators have been looking for more state-of-the-art technological solutions, whether it be LNG or battery power, just to name two. The race to become established cruise shipbuilders, however, has not been smooth sailing for all of the new entrants. The influx of new cruise shipbuilders has helped new and smaller operators to order their first newbuilds or to enter the cruise business as newcomers. Last year, Scenic struggled with ongoing challenges to get its expedition yacht, the Scenic Eclipse, completed at the Uljanik Shipyard in Croatia. Later, Mystic Investment postponed the inaugural of its first expedition ship due to last-minute technical problems. The Ritz-Carlton Yacht Collection’s first newbuild, the Evrima, has faced significant delays and a budget shortfall at the Barreras Shipyard in Spain. Hurtigruten’s battery-powered Roald Amundsen suffered several delays amid the financial challenges of the Kleven Shipyard in Norway. As a result, Hurtigruten offered a lifeline to the builder by purchasing it. At press time, the cruise operator had reached an agreement to sell the yard to another newcomer in cruise shipbuilding, Croatia’s Brodosplit. Reflecting on these developments, we are not surprised that SeaDream Yacht Club recently canceled its newbuilding project, the SeaDream Innovation. With the current cruise shipbuilding boom and shortage of suppliers, it likely would have faced delays and cost overruns that could have been fatal for a small cruise operator. Meanwhile, in EDITOR’S COMMENTARY this issue we can learn from the experience of SunStone Ships in China. The company took delivery of the first-ever Chinese-constructed cruise vessel, the Greg Mortimer, 24 days ahead of schedule, and, despite facing challenges during construction, SunStone is satisfied with the quality provided by China Merchants Shipyard. G ermany’s MV Werften is another newcomer to cruise shipbuilding, and it recently introduced an interesting concept. Genting Hong Kong acquired three facilities in Northern Germany in order to provide shipbuilding capacity for its own cruise brands, including Crystal Cruises, Dream Cruises and Star Cruises. Initially, the shipyards constructed three river cruise vessels for Crystal. Now MV Werften is close to completing the expedition yacht Crystal Endeavor as well as the Global Dream—a 208,000 gross ton behemoth that will be the largest cruise ship ever constructed in Germany. In December, MV Werften, together with its owners, announced the 88,000 gross ton Universal class. While it can be tailored to suit any of Genting Hong Kong’s cruise brands, ships of the Universal class will also be made available to other hospitality brands that are interested in entering the cruise business, but that lack construction or operational expertise. In a nutshell, this concept reminds us of what SunStone is doing in the expedition market, but on a larger scale: The Universal platform can be tailored for 4,000 guests in the mass market, 2,000 guests in the premium segment or 1,000 guests in the luxury segment. We eagerly await the first unit of the Universal class, which is scheduled for delivery by the end of 2022. Teijo Niemelä JANUARY 2020 HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA instagram.com/niemelateijo CruiseBusiness.com Magazine 8 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 NOT SO SMOOTH SAILING FOR SHIPYARDS Mobile Access VingCard Locks Elsafe Safes TrioVing Cylinders A trusted partner for the marine industry. Learn more today at assaabloyglobalsolutions.com/marine At ASSA ABLOY Global Solutions, innovation is nothing new. We have been leading the industry in security and access technology for over 40 years, since inventing the world’s first card lock. As part of the ASSA ABLOY family, Marine provide service and support worldwide from our dedicated offices in Norway, Spain, Singapore and the USA. We offer advanced security solutions and peace of mind for both hospitality providers and their guests and crew. 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HOW TO FOLLOW US Twitter.com/cruisebusiness facebook.com/CruiseBusinessUSA instagram.com/niemelateijo Mobile Access VingCard Locks Elsafe Safes TrioVing Cylinders A trusted partner for the marine industry. Learn more today at assaabloyglobalsolutions.com/marine At ASSA ABLOY Global Solutions, innovation is nothing new. We have been leading the industry in security and access technology for over 40 years, since inventing the world’s first card lock. As part of the ASSA ABLOY family, Marine provide service and support worldwide from our dedicated offices in Norway, Spain, Singapore and the USA. We offer advanced security solutions and peace of mind for both hospitality providers and their guests and crew. Our advanced solutions include: VingCard electronic locks, mobile access, gangway control, Elsafe safes, printers and encoders, cylinders and keys and mechanical stainless steel locks. Visit us at Booth # 2401 8-11 .indd 3 31.1.2020 13.41
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Carnival Cruise Line celebrated the naming of the Carnival Panorama in Long Beach, California, on December 11, with Vanna White of TV’s Wheel of Fortune serving as godmother. The Panorama is the first new “Fun Ship” on the West Coast in 20 years. At 133,500 gross tons, the Panorama represents an evolution of the Vista class with some tweaks – among them the Carnival Kitchen, a firstin-fleet culinary experience, and new restaurants created by master chefs Emeril Bagasse and Rudi Sodamin, respectively. UPFRONT Norwegian Cruise Line Holdings Ltd. took delivery of the Norwegian Encore, the last of four Breakaway Plus vessels from Meyer Werft. This ceremony also marked the occasion of Norwegian Cruise Line President and CEO Andy Stuart passing the company torch to new President Harry Sommer (right). The delivery ceremony was also attended by Meyer Werft Managing Director Tim Meyer and the ship’s chief engineer and captain. At 181,000 gross tons, the MSC Grandiosa became the largest-ever MSC Cruises’ vessel to enter service. Named in Hamburg, Germany, in a festive event by serial godmother Sophia Loren, the Grandiosa is the first of three slightly larger Meraviglia Plus ships. Additionally, MSC Cruises has commissioned four 208,000 gross ton LNG-powered vessels, with the order for the last two announced in January. MSC Cruises and Chantiers de l’Atlantique have also agreed on a framework for a next-generation newbuilding program through 2030. 12 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 12-15 .indd 2 3.2.2020 10.04
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 13 Hurtigruten made history when it celebrated the naming of the first hybrid electric-powered expedition cruise ship in Antarctica. The company had selected polar pioneer Karin Strand as the godmother of the Roald Amundsen, pictured here with Hurtigruten CEO Daniel Skjeldam and Captain Kai Albrigtsen. Princess Cruises chose the theme “Reach to the Sky” – in tribute to the pioneering women of the U.S. Space program – to christen its newest Royalclass newbuild, the Sky Princess, in December. From left are Holland America Goup’s CEO Stein Kruse, Sky Princess Chief Security Officer Susan Morgan, Engineer Poppy Northcutt (one of two godmothers), Captain Heikki Laakkonen, Princess President Jan Swartz, Captain Kay Hire (godmother), Carnival Corporation & plc Chairman Micky Arison, Second Officer Kerry Ann Wright and Carnival Corporation & plc CEO Arnold Donald. Viking entered a new phase on January 15, when it announced the launch of Viking Expeditions. The company, which now operates on rivers, oceans and – starting in 2022 – in Antarctica, also simplified its name to just Viking. At the celebratory event, which took place in Beverly Hills, Norwegian singer Sissel Kyrkjebø also officially christened the Viking Jupiter – the company’s sixth ocean vessel. The Viking Jupiter is currently sailing in South America. 12-15 .indd 3 3.2.2020 10.04
UPFRONT 14 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 The float-out of the upcoming flagship of Carnival Cruise Line, the Mardi Gras, was celebrated at Meyer Turku shipyard on January 24. The 180,000 gross ton ship will be the largest in the Carnival fleet upon its delivery later in 2020. Opening the valve from left are Meyer Turku CEO Jan Meyer and Ben Clement, Carnival’s Senior Vice President of Newbuilds. The Port Authority of Jamaica’s newly built Port Royal Cruise Port received its inaugural ship call by Marella Cruise Line’s Discovery 2 on January 20, 2020. The introduction of cruise shipping to Port Royal and by extension Kingston, represents an achievement of an objective which was first contemplated over 25 years ago. Port Royal joins Montego Bay, Falmouth, Ocho Rios and Port Antonio and it is anticipated that the new complement of five cruise ports of call will further strengthen Jamaica’s cruise shipping product and enhance the Cruise Jamaica brand. 12-15 .indd 4 3.2.2020 10.04
UPFRONT Crystal Endeavor was successfully undocked in Stralsund on December 21. The luxury yacht is now berthed for final outfitting at the shipyard. The expected delivery for the 20,000 gross ton and 200-passenger PC6 polar class newbuild is August 2020. Sir Richard Branson, founder of the Virgin Group, and Virgin Voyages CEO Tom McAlpin made a special visit to the The Maritime Skills Academy Simulator Centre Solent on 15th September to open the centre officially with a ribbon cutting ceremony. During the visit, Branson tested the simulators for himself and met some of the crew who will be sailing and training at the centre for Virgin Voyages. Royal Caribbean Cruises Ltd. and Chantiers de l’Atlantique executives raised the signed commemorative ship cut-out at the ceremonial steel-cutting for Celebrity Beyond on January 30,. From left to right: Richard D. Fain, Chairman and CEO, RCCL; Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises; Harri Kulovaara, Executive Vice President, Maritime and Newbuilding, RCCL; and Laurent Castaing, General Manager, Chantiers de l’Atlantique. With the second-in-class Celebrity Apex set to arrive in Southampton in April 2020, the brand expects delivery of Celebrity Beyond in fall 2021. CRUISEBUSINESS.COM MAGAZINE WINTER 2020 15 12-15 .indd 5 3.2.2020 10.04
16 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 J apan is one of the few destinations in the world that offer an abundance of ports-of-call, from bustling cities to historic world heritage sites and beautiful landscapes. For travelers, Japan is easy to explore by cruise ships that circumnavigate the various islands. For cruise lines, Japan offers an almost endless number of both marquee and new destinations. Sakata Port in Yamagata Prefecture is one of Japan’s new cruise-friendly ports. It provides a gateway to the historic sites of Sakata or natural landscapes like the Three Mountains of Dewa and natural wonders such as the Mogami River. Cruise lines can offer several different half-day or full-day tours. Sakata is located on the coast of the Sea of Japan and north of Tokyo in Honshu, which is Japan’s largest island. It faces Busan in South Korea and Vladivostok in Russia, so it lies within easy reach of foreign port-of-calls. Sakata is usually included in circumnavigations of Japan and can accommodate almost all of the largest cruise ships operating in Asia up to 160,000 gross tons. International visitors to Sakata have included Princess Cruises’ Diamond Princess, MSC Cruises’ MSC Splendida, Costa Crociere’s Costa neoRomantica and Silversea Cruises’ Silver Muse, which will call in 2021. Logistics Sakata’s Kominato Wharf has three docks with a combined length of 455 meters and a water depth of up to 13 meters. The turning basin spans 696 meters and has a water depth of 14 meters. The dock is large enough to accommodate 120 buses for sightseeing and shuttle service. Sakata Port provides shuttles to the city center, which can be reached by a short 10-minute drive. SAKATA CRUISE DESTINATION SPONSORED CONTENT 16-19 .indd 2 10.2.2020 13.34
S akata has a variety of tourist attractions that can accommodate a range of cruise lines, from contemporary to luxury. Cruise passengers can explore Sakata on selfguided walking tours, or a combination of sights can be included in shore excursions organized by the cruise lines. These are the major attractions to experience in Sakata: Homma Museum of Art The Homma Museum of Art and Seienkaku Guesthouse offer a glimpse into the lifestyle of an affluent Japanese family. The circuit-style Japanese garden, set against the backdrop of Mount Chokai, was built with stone lanterns and precious rocks brought from Osaka and Tokyo. The Homma family, who were among the richest landowners in Japan, also built the guesthouse, which accommodated Emperor Hirohito on his visit to Sakata. The Homma Museum of Art was created in 1947 to bring hope and beauty back to the Japanese people after the Second World War 1It was the first private art museum in Japan. 18 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 SAKATA TOURIST ATTRACTIONS Sankyo Soko Yamagata Prefecture is historically an important rice-producing region, and Sankyo Soko (meaning Sankyo Warehouses), built in 1893, was an important rice marketplace. Today, it houses the Shonai Rice History Museum, which tells the story of agricultural life in Yamagata Prefecture. The adjacent tourist center sells souvenirs such as sake, candy and rice delicasies produced locally. Ken Domon Museum of Photography Ken Domon became celebrated for taking news photos, portraits and snapshots of both famous and ordinary people in postwar Japan. To carry on his name, the first museum solely dedicated to photography was built in his hometown Sakata in 1983. The museum houses 70,000 pieces of his work, and its displays change often. 16-19 .indd 4 10.2.2020 13.34
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 19 B eyond compact and easily-accessible Sakata are more natural and cultural attractions within easy reach: Three Mountains of Dewa The Three Mountains of Dewa include Mount Haguro, Gassan and Yudono. These were named a Japan Heritage Site in 2016. The 414-meterhigh Mount Haguro can be reached by walking the Avenue of Cedar Trees. It is 1.7 kilometers long and includes 2,446 stone steps, to be exact. The forest houses national treasures such as the Mount Haguro five-story pagoda, which is said to be the oldest tower in the Tohoku region. Atop Mount Haguro is located the Dewa shrine. A traditional lunch of Shojinryori cuisine serves up tasty vegetarian dishes, with menus changing seasonally. All ingredients, such as plants and bamboos, are picked locally from the forests of the mountains. ATTRACTIONS BEYOND SAKATA Somaro and Maiko dance shows Formerly operating as a restaurant, the historic Somaro provides a chance to learn about local culture. The Maiko performances demonstrate traditional Japanese dance and music. Sanno Club handicrafts The Sanno Club, formerly a restaurant built in 1895, is a preserved cultural building. Today, it houses a museum featuring hanging ornaments known as Kasafuku. Kasafuku were originally regarded as divine objects. Visitors can try their handicraft skills at making their own Kasafuku. Kano Aquarium jellyfish The Kano Aquarium features the world’s largest collection of jellyfish. Located in Tsuruoka City, a 40-minute drive from the port, the aquarium also offers sea lion shows and includes a world-class restaurant. Mogami River boat ride The Mogami River, a 60-minute drive from the port, offers a glimpse of Japanese nature with waterfalls and changing colors of the seasons – cherry blossoms in spring and fall foliage in autumn, with accents of red and brown. www.yamagatakanko.com/translation 16-19 .indd 5 10.2.2020 13.34
20 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 MADRID SUMMIT SEES INDUSTRY REACHING MATURITY Most segments of the cruise industry are showing signs of maturation. Speakers at the latest edition of the Madrid International Cruise Summit (ICS 2019) encouraged new thinking and fresh perspectives in an effort to ensure continuous growth. By Alan Lam A s delegates convened in Madrid for the annual International Cruise Summit, it was looking very likely that 2019 would be another record year in terms of cruise passenger numbers and revenue. According to Alfredo Serrano, Director of CLIA Spain, the overall global growth for the year would be about 5.3%, while Europe expected an impressive 8.3% increase for the same period. He noted that this trend would continue into 2020 when a 7% capacity increase was expected. The industry was poised for accelerated growth thereafter, judging by projected capacity expansion. It was now in a very different place from where it had been just a few years earlier. It is rapidly maturing. With this comes increased complexity and challenges to the sector. With the industry coming of age, it is attracting the attention of expert thinkers, academics, and business strategists who have systematically anatomized the cruise business in recent years. ICS 2019 was a platform for one such personality, Professor Alexis Papathanassis, Chairman of the Cruise Research Society and CoDirector of the Institute for Maritime Tourism, Bremerhaven University of Applied Sciences, who shared his observations and offered recommendations to the industry. “In the last 20 years,” he told the conference, “we have seen consolidation, emergence of megaships, and democratization of cruising. Currently we are seeing most of the source markets reaching maturity. This mean the growth rate will start to decrease.” Papathanassis highlighted the fact that in such a consolidated business, it was difficult for newcomers and marginal players to succeed. “Some people are wondering that while we have growths why our numbers are down,” he said. “This is because it is becoming increasingly difficult for smaller players to compete. One of their strategies is moving into an entirely different segment of the market. This is what is happening in the cruise industry.” He praised the industry’s innovative spirit, especially in its adoption of the so-called “Blue Ocean Strategy” instead of a head-to-head, often internecine 20-23.indd 2 31.1.2020 13.50
? CRUISEBUSINESS.COM MAGAZINE WINTER 2020 21 MADRID SUMMIT SEES INDUSTRY REACHING MATURITY competition known as “Red Ocean Strategy.” The industry aims to create demand by attempting to capture uncontested markets through exploring new demand sources and product differentiation, thus rendering competition irrelevant. “Today’s cruise business does not compete; it innovates,” said Papathanassis. It has become increasingly difficult to compete on ticket prices. So cruise lines have shifted their emphasis onto onboard revenues, for example, where they have a virtue monopoly and do not have to compete with other land-based businesses. Smaller lines, on the other hand, choose to specialize and accentuate their individualities. These are clear Blue Ocean strategies in action. “More and more companies are segmenting the market. This allows the market to grow in different directions,” said Massimo Brancaleoni, Senior Vice President Global Sales, Costa Cruises. While cruise lines steamed ahead in pursuit of this quintessential Blue Ocean Strategy and further expansion, Papathanassis warned that ports and destinations must follow closely. “So the port needs to change,” he said. “It needs a strategy that goes beyond the next election. We need to move away from political opportunism.” As mostly state-control entities, port developments are often hindered by the vicissitudes of local politics. Holidays, not just cruises Aside from the Blue Ocean Strategy, a new, unfettered perspective of the industry is needed. Until now, the cruise business has been far too insulated. This could be the reason why it has such low market penetration. “The opportunity to break the traditional demographic barrier of the market is something really exciting about this industry,” said Chris Hackney, Managing Director of Marella Cruises. “We need to be talking about our products as ‘holidays,’ not just as ‘cruises.’ It is important to break down this barrier.” In a way, Norwegian Cruise Line has been a pioneer in this initiative. “Our concept is ‘Freestyle Cruising’,” said Kevin Bubolz, Managing Director Europe, Norwegian Cruise Line. “It is all about breaking Massimo Brancaleoni Chris Hackney 20-23.indd 3 31.1.2020 13.50
22 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 down barriers of traditional cruising. We have been doing this for twenty years. It is about choice and flexibility; it is about having things on board for all different types of customers.” As a veteran of the industry, Richard Vogel, CEO and President, Pullmantur Cruises, has always been known for his original and insightful thinking. On this occasion his perspective on the maturing industry again struck a note with many. The industry has been active in promoting and developing technologies in order to minimize environmental impact, increase earnings and raise the stake of the game for any potential new entrants. Vogel had a broader perspective on this: “We can talk about technologies; we can talk about LNG; but there is something else that is just as important,” he told the conference. “We need to think about when ships become bigger and bigger, where do we get the employees from? Where do we get qualified staff from? Not just officers and waiters, we need carpenters, electricians, doctors, tailors and so on.” In Vogel’s view, there needs to be a fundamental change in approach. “We have to think about our existing business model,” he said. “At the moment, we deal with one supplier. We don’t know if this supplier can grow with us. So why not have more suppliers. Why not open the field up a bit.” Another sign of a maturing industry is its perspective on older tonnage. In this, the conference delegates were urged not to value a ship by its age, but by its quality. “We should not be talking about old ships and new ships,” said Vogel. I am 64 years old. Should I be replaced by a younger guy because of my age? As long as they are accepted by our guests and as long as they are in good condition, we use them. I have seen some fantastic 30-year-old ships. They offer a different kind of experience. Older ships are smaller and they can get to ports new ships can’t. In some new source markets, it is better to have an older ship.” Blue sky thinking As if specifically supporting this stance – and at about the same time as Vogel was delivering these words of wisdom – news of UKbased Cruise & Maritime Voyages having acquired two older ships, the 1991-built Pacific Dawn and the 1994-built Pacific Aria, from P&O Cruises Australia began to spread. Amidst the rush to build new ships, perhaps for the first time the value of older ships was being defended vehemently. “We tend to talk about old and new ships,” said Clare Ward, Director of Product & Customer Services, Fred. Olsen Cruise Line. “It is about how you take care of the ships. All four of our ships are cleared to call at Bergen where environmental regulation is among the most stringent. It is not about old or new ships; it is about how you work with them. The benefit of having older tonnage is that you have to be more inventive and you have to invest in them.” Added Norwegian’s Bubolz, “There is certainly much demand for older tonnage. “People always want to buy ships from us. But we keep them for ourselves.” Above all, in a mature industry there needs to be a new culture in everything it does. Emre Sayin, CEO of Global Ports Holding, spoke of “coopetition” as way forward. Instead of just competition, there also needed to be a degree of cooperation among competitors. He said he believes there are synergies that could be harnessed for the common interest. “I really believe in culture, you can only go so far with procedures and processes,” he said. To take the cruise business to the next stage of maturation, much blue sky thinking was called for at ICS 2019. Despite the maturation and headline-generating expansion, the industry still found itself in the undesirable position of not being properly understood, and for this reason, often under attack from the environmental lobby. Speaker after speaker at the conference urged the stakeholders to “tell the true story of cruising,” especially about the sector’s sustainability record. “The cruise industry is the leader in environmental protection within the shipping sector,” said CLIA Spain’s Serrano. “To put things in context: the average vessel age of the commercial fleet is 20.8 years, while that of the cruise fleet is 14.6 years. This number is coming down as new ships are introduced. Many of the things said against us are based on information that lacked scientific vigor. We have done a lot for sustainability. We will defend our freedom to operate. We will not tolerate what we consider as criminal taxation against our industry.” Sustainability and data Indeed, the industry’s effort and investment in sustainability has been unrelenting. “We are completely reliant on the ocean and the environment,” said Tony Roberts, Vice President UK & Europe, Princess Cruises. “All the cruise lines are doing many things. There are still many more things to do. It is important that we tell the story of what we do. Our products are excellent.” At the same time, the entire sustainability issue has not been properly understood even by the industry itself. “There is a misconception that sustainability efforts will increase costs. This is not quite true,” said Marella’s Kevin Bubolz Richard Vogel Emre Sayin 20-23.indd 4 31.1.2020 13.50
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 23 Hackney. By cutting down on waste and improving efficiency, the opposite is often the case. While telling the story of sustainability is crucial, so is another dimension of this modern and maturing industry that is emerging and growing in complexity – the data that has become an indispensable tool for charting the course of the industry’s future. Until recently, CRM (customer relationship management) was at the heart of data usage. This has evolved and expanded. Data now permeates all area of the cruise business. “Data help us identify current and potential upcoming issues,” said Esther Arnalte, IT Manager, Intercruises Shoreside & Port Services. “It also helps us explore why a problem occurs or why a particular tour didn’t go well.” As the industry continues to mature and increase in complexity, an entire cruise-specific data analytic industry is mushrooming. “We are gathering information all the time on what our guests are doing, where they are, and what they have ordered,” said Princess’ Roberts. “The crew now know where you are on a ship at any given time. Using this data, they also know when to clean your cabin without having to disturb you. Data also helps us to think about how to design ships in the future by understanding the flow of people. And there is also a huge safety aspect to this, too. Data is hugely powerful and important.” Ironically, the importance of data is supported by the data itself. “Data-driven organizations are twenty-three times more likely to acquire customers, six times more likely to retain them, and nineteen times more likely to be profitable, according to McKinsey Global Institute,” said Ian Richardson, CEO and co-founder of TheICEway. The new gold The industry is investing in data technology to the delight of a whole host of suppliers that specialize in data gathering and analytics. “Data is expensive,” said Ignacio Barrios, CEO of Kido Dynamics, an IT start-up based in Switzerland. “Managing data is complex and requires skills. It moves very fast and pushes you to make decisions on a daily basis.” Data technology could become the next major investment of the cruise industry. It certainly has uses that go far beyond the traditional CRM sphere. Equally, it can be said that everything the industry does is customer relationship management. “It costs a lot of money to build a cruise terminal,” said Adam Sharp, Head of Business Development EMEA, Royal Caribbean Cruises Ltd. “Data can help us build a more effective terminal using less space by indicating how the guest flow can be better managed.” Cruise lines today are constantly generating, analyzing and using data. “Basically, data is the new gold of today and the future,” said Luca Pronzati, Chief Business Innovation Officer of MSC Cruises. “We are investing heavily in artificial intelligent and machine-assisted learning technologies.” Having said that, the importance of data to the future of cruise industry is as yet unquantifiable, and at this juncture, one is reminded of what Sir Richard Branson, Chairman of Virgin Group, said recently: “While data and analytics present us with many opportunities to take calculated risks, increase efficiency and guide decisions – don’t forget about human instinct.” The future of Virgin Voyages, for one, will not be guided solely by data. Whatever view one may hold of the cruise industry and its future, it is clear that the shape and complexity of today’s cruise business are dramatically different from what they were five to ten years ago. One fact that ICS has always highlighted is that the industry has become conspicuously more complex from one year to another, and at ICS 2019 that was no different. Its message has always been one of new perspectives and new thinking – aided by innovation, technology, as well as careful and sustainable management. n Tony Roberts Virgin Voyages is one of the most anticipated newcomers this year 20-23.indd 5 31.1.2020 13.50
T elenor Maritime is the leading global communication operator at sea, being at the forefront of developing and defining security standards for the maritime business since 2004. Carnival Corporation brands have been serviced by Telenor Maritime continuously since 2006. We are delighted to further extend our long-time partnership, being the exclusive onboard cellular provider for AIDA, Costa, Cunard, and P&O (UK) cruise ships. Every day serving their close to 135.000 passengers with mobile voice, texting (SMS) and mobile internet coverage while at sea. Costa Smeralda is the latest and largest member of the Costa Cruises fleet, and will surely give it’s passengers a cruise-experience of a lifetime. We enhance that experience by enabling them to communicate in social media, sharing moments and updating friends and relatives when something extraordinary takes place. On telenormaritime.com you can explore how we can enhance your guest experience and increase operational efficiency and revenues. When we say we are enabling the best mobile experience at sea, we mean it! Come visit us at Seatrade Cruise Global 2020, booth # 1843 Equipped with connectivity for the future 0,012-0,2 Mbit/s 2004 0,128-5,0 Mbit/s 2012 30-40 Mbit/s 2016 5000-7000 Mbit/s 2022 SENSOR NETWORKS AUTONOMY & REMOTE OPERATIONS HUMAN MACHINE INTERACTION MONITORING AND OPERATION SMART SHIP CONNECTIVITY EVERYWHERE Leading the Evolution of Secure Connectivity at Sea 24-31 .indd 2 31.1.2020 14.08
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 25 ? SHIP REVIEW T elenor Maritime is the leading global communication operator at sea, being at the forefront of developing and defining security standards for the maritime business since 2004. Carnival Corporation brands have been serviced by Telenor Maritime continuously since 2006. We are delighted to further extend our long-time partnership, being the exclusive onboard cellular provider for AIDA, Costa, Cunard, and P&O (UK) cruise ships. Every day serving their close to 135.000 passengers with mobile voice, texting (SMS) and mobile internet coverage while at sea. Costa Smeralda is the latest and largest member of the Costa Cruises fleet, and will surely give it’s passengers a cruise-experience of a lifetime. We enhance that experience by enabling them to communicate in social media, sharing moments and updating friends and relatives when something extraordinary takes place. On telenormaritime.com you can explore how we can enhance your guest experience and increase operational efficiency and revenues. When we say we are enabling the best mobile experience at sea, we mean it! Come visit us at Seatrade Cruise Global 2020, booth # 1843 Equipped with connectivity for the future 0,012-0,2 Mbit/s 2004 0,128-5,0 Mbit/s 2012 30-40 Mbit/s 2016 5000-7000 Mbit/s 2022 SENSOR NETWORKS AUTONOMY & REMOTE OPERATIONS HUMAN MACHINE INTERACTION MONITORING AND OPERATION SMART SHIP CONNECTIVITY EVERYWHERE Leading the Evolution of Secure Connectivity at Sea SMERALDA MARKS QUANTUM LEAP FOR COSTA On a grey December day, the Costa Smeralda sailed from the Meyer Turku shipyard in Finland for the warmer waters of the Mediterranean, marking the entry into service of the first LNG-powered ship in the fleet of Costa Crociere. The ship is significant from a technological point of view: It is only the second really large cruise ship to use LNG for fuel and also marks a quantum leap in the size of ships operated by the line. Unlike most other cruise majors such as Royal Caribbean Cruises Ltd. (RCCL), MSC Cruises and Genting Hong Kong, the Carnival group had up to this point chosen not to build ships of more than 200,000 gross tons. By Kari Reinikainen Savona is one of the Costa Smeralda’s embarkation and disembarkation ports 24-31 .indd 3 31.1.2020 14.08
? 26 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 T he delivery of the Costa Smeralda was postponed twice, suggesting that building an LNG-powered vessel of this size is a major challenge, even if the yard in question had built two large LNG ferries before – the pioneering Viking Grace in 2013 and MegaStar four years later. The 182,700 gross ton ship is the first of two similar vessels for the Italian unit of the Carnival Corporation & plc group; the Costa Toscana is due to follow in October 2021. The ship is the second unit of a class based on a platform shared by four Carnival group companies: Costa Crociere will have two ships and Carnival Cruise Line is also due to have two ships from the Finnish builder. AIDA Cruises in Germany took delivery of the AIDAnova, the lead ship of the class, in late 2018 from Meyer Werft in Papenburg, Germany, and has two more vessels due from the same builder. P&O Cruises in the UK is due to receive the Iona, the first of its two ships of this class, from the German builder in the summer. Although the ships feature the same basic design and technical equipment, there are significant differences in the passenger areas and design of public spaces and cabins, which are tailored to each brand. These differences are not just cosmetic: On the AIDAnova, the spa was placed forward on deck 7 so that it reached the forepeak; on the Costa Smeralda, this area is not in use for passengers. The design of the Costa Smeralda and its sister ships does not include large indoor promenades or other spectacular areas that would take up lots of space, although the three-deck-high atrium is expansive thanks to the ship’s beam of 42.0 meters. This approach is probably one of the reasons why the per lower berth price tag of the Costa Smeralda compares quite favorably with those of some other very large vessels currently on order. PRICES AND COST PER LOWER BERTH (LB) OF SOME LARGE CRUISE SHIPS SHIP OWNER GROSS TONS PAX PRICE PRICE/LB Costa Smeralda Costa 185,010 5,224 $1.10bn $210,556 Wonder of the Seas RCCL 225,862 5,400 $1.40bn $256,256 MSC Virtuosa MSC 177,100 4,842 $850m $175,547 MSC Europa MSC 205,700 5,264 $1.13bn $214,665 Global Dream Genting 208,000 4,700 $1.10bn $234,042 Source: Shippax Info, December 2019. Per lower berth cost calculated by CruiseBusiness.com Trasvetere Campari Bar Gran Bar 24-31 .indd 4 31.1.2020 14.08
Discover the silence of the seas Be it in deluxe cruise ships or offshore platforms, all voyagers and crew members deserve unparalleled safety and comfort. Our marine doors are custom designed to insulate rooms from noises and to block off external disturbances so that the only thing your guests or crew can nd behind the door is an unforgettable experience. www.antti-teollisuus. | tel. +358 2 774 4700 Large numbers of smaller public venues The ship has 20 decks and 2,612 cabins, 16 restaurants and a total of 10 bars and cafes. The general layout follows a wellestablished pattern, whereby the principal indoor public areas are located on the boat deck and immediate above and below it. The cabins are located on decks 4 and 5 below the principal public areas, on decks 9 to 14 between the public areas and principal outdoor spaces, and forward on decks 16 and 17. The theatre is located forward on decks 5 and 6 and only runs through two decks. The largest restaurants are located at the stern of decks 5, 6 and 7, while several smaller venues alternate with bars and other public areas on deck 6. A pizzeria and a buffet are located on the uppermost level of the atrium midships on deck 8, with more dining options on deck 16. Cruise ship designers have started to focus more on outer deck space, and on the Costa Smeralda, a bar is located at the stern on deck 7 and on the deck above. A mezzanine also has been provided on both sides of the atrium with dining areas there. A three-deck-high, glass enclosed space that has no roof called Piazza di Spagna – a reference to the Spanish Steps in Rome – is one of the visually catching features of the vessel. The spa and the adjacent gym occupy most of the area aft of the midships pool area on deck 16. A ship of this size requires efficient links between the various decks, and the Costa Smeralda has three stair towers. The forward and midship ones feature eight lifts, while the aft one has six. All three run through decks 5 to 16. ? Museum Ristorante Rugantino 24-31 .indd 5 31.1.2020 14.08
? 28 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 FREEDOM OF DESIGN WITH PROVEN SOLUTIONS INTERIOR AND EXTERIOR DECORATIVE SOLUTIONS Seamless, durable and flexible artificial PUR deck system, the new Sikafloor® Marine Deco Comfort and Teak. Contact us now Sika Services AG, Tueffenwies 16, 8048 Zurich Tel. +41 (0)58 436 58 01, www.sika.com/marine Sikafloor® Marine Deco Teak Sikafloor® Marine Deco Comfort € 6 billion investment program The ship’s engine areas were built at the Meyer group’s Neptun shipyard in Germany as large, floating blocks and towed to Finland for insertion into the structure of the vessel. The dieselelectric power plant uses four Caterpillar engines that develop a total of 57,200kW. Two Azipods that deliver a combined output of 37,000kW give the vessel a speed of 21.5 knots. The LNG is stored onboard at a temperature of -162 degrees in three tanks that have a combined capacity of 3,620 cubic meters. Before liquefaction, the gas is treated to remove particles plus nitrogen and sulfur oxides. Particle matter can be eliminated by 95% to 100%, while in emissions of nitrogen oxides there is an 85% direct reduction and in CO2 a reduction of up to 20%. The Costa Smeralda is part of the Costa Group’s fleet-wide expansion plan, with a total of seven new ships slated for delivery by 2023 and an overall investment worth over € 6 billion, according to a company statement. Five of these ships will be fueled by LNG. “The Costa Group was the first cruise operator in the world to introduce this ground-breaking innovation in favor of sustainability, which is set to substantially reduce the whole fleet’s environmental impact,” Costa said. The Italian cruise company intends to achieve a 40% reduction in its fleet’s CO2 emissions by 2020, some 10 years ahead of the target laid down by the International Maritime Organization. On account of its environmental performance, which meets current regulatory requirements, the Costa Smeralda has been awarded the Green Plus, the highest additional voluntary notation assigned by the Italian classification society RINA. In addition, most single use plastic items on the Costa Smeralda have been replaced by products made of alternative materials in the bars and restaurants. Once this has been extended fleet-wide, there will be a reduction in consumption of over 50 metric tons of plastic a year. Buffet Sagra dei Sapori The Beach Club 24-31 .indd 6 31.1.2020 14.08
WE SET THE STANDARD! Better and lighter quality onboard! B-0 JMC 4 wall panel; only 16 mm thick A-60 BOX; wall & ceiling A-60 lightweight bulkhead panel 50 mm and 25 kg/m 2 B-15 JMC 1 wall panel B-15 JMC 1 Inspection Door B-15 Extension Screen USPH galley panel Floating Floor Pullman Bed; B-0/B-15 ceiling Pullman Bed, Sofa Bed and fixed bed for passenger and crew cabins. Engineering NEW! Steel sheet printing! New factory address: SBA Interior Ltd Hangontie 940 10300 Karjaa Finland www.sba.fi FREEDOM OF DESIGN WITH PROVEN SOLUTIONS INTERIOR AND EXTERIOR DECORATIVE SOLUTIONS Seamless, durable and flexible artificial PUR deck system, the new Sikafloor® Marine Deco Comfort and Teak. Contact us now Sika Services AG, Tueffenwies 16, 8048 Zurich Tel. +41 (0)58 436 58 01, www.sika.com/marine Sikafloor® Marine Deco Teak Sikafloor® Marine Deco Comfort 24-31 .indd 7 31.1.2020 14.08
32 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 SHIP REVIEW S ince the introduction of the Royal Princess in 2013, Princess Cruises has expanded its fleet solely with additional units in the Royal class. Following the namesake Royal Princess, the Regal Princess was delivered in 2014 and the Majestic Princess – tailored for the Asian market – was introduced in 2017. Two more sister ships – the Enchanted Princess and Discovery Princess – will join the Princess fleet in 2020 and 2021, respectively. All of the Royal-class ships have been built (or are being built) at Fincantieri’s Monfalcone shipyard in Italy. The Sky Princess is slightly larger than the namesake of the class in terms of gross tonnage, registering 145,281 tons. It is 330 meters long with a beam of 38.4 meters. Its passenger capacity is slightly larger, too, at 3,660 (double occupancy). The vessel is fitted with 2 x 14,400 kW Wartsila 12V46F and 2 x 16,800 kW Wartsila 14V46F SKY PRINCESS – THE EVOLUTION CONTINUES Princess Cruises introduced its fourth Royal-class newbuild, the Sky Princess, in October 2019. This newest ship from the fastest-growing premium cruise line in North America has new features and enhancements that distinguish it from previous vessels in the series. Three-deck Atrium houses many bars, restaurants and shops 32-33 .indd 2 10.2.2020 11.19
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 33 engines, generating a maximum speed for the ship of 22 knots. During its inaugural season, the Sky Princess sailed in the Mediterranean before repositioning to its winter homeport, Fort Lauderdale’s Port Everglades, in November. After a winter season of 7-night Caribbean cruises, the Sky Princess will return across the Atlantic for a summer season in the Baltic Sea, sailing out of Copenhagen. What’s new The Sky Princess is the first ship in the Princess fleet to have arrived from the shipyard “Medallion ready.” This refers to the line’s OceanMedallion, a complimentary wearable device that promises to deliver a hassle-free, personalized vacation. In its accommodations, the Sky Princess features a new suite category. Two Sky Suites have the largest continuous private balconies ever, Princess claims. Measuring 1,012 square feet on the starboard side and 947 square feet on the port side, the Sky Suites’ furnished balconies provide a private vantage point for viewing the ship’s Movies Under The Stars on a big outdoor screen. The two suites offer 270-degree panoramic views and have a sleeping capacity for up to five people. As far as new dining options are concerned, the Sky Princess debuted a new French restaurant, La Mer, by three-Michelin-star Chef Emmanuel Renaut. This new specialty restaurant is located on the top level of the atrium and replaces the Crooners Bar. La Mer serves casual French Bistro-style dining with a modern twist. Alfredo’s, the popular pizzeria on the Royal-class ships, has also been relocated to the top level of the atrium, and for the first time offers al-fresco seating on the outdoor promenade. Altogether, the Sky Princess has a total of 25 restaurants and bars onboard. These, of course, include the line’s signature specialty dining options: the Crown Grill Steakhouse and Sabatini’s Italian restaurant. n Crown Grill Bar features new, lighter color patterns Retreat Pool and Bar is reserved for adults Lido pool area has been re-designed 32-33 .indd 3 10.2.2020 11.19
? 34 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 T he November 2019 introduction of the Norwegian Encore marked the competition of Norwegian Cruise Line’s fourship Breakaway Plus class and its Freestyle 2.0 initiative that expanded the resort-style approach to cruising. After stops in Southampton, England, and New York City, the Norwegian Encore arrived in Miami for her christening festivities. In an odd quirk of fate, American singing star Kelly Clarkson, who rose to fame seventeen years ago after winning a TV singing competition, became godmother to the seventeenth ship in Norwegian’s fleet. Considered the crowning glory of the Breakaway Plus class, Norwegian had much to celebrate as its newest ship entered service. First launched in 2015, the class has been the most successful in the 53-year history of the line, harkening back to NCL’s earlier successes: in the 1960s as a pioneer in the modern cruise industry; and 1980 when the company launched the mega-ship era with the ss Norway. Speaking to the investment community about the launch of the Norwegian Encore, Frank Del Rio, President and CEO of Norwegian Cruise Line Holdings Ltd., described her as “the brand’s newest, largest and most innovative ship to-date.” Building on the success of the previous ships of the class and the two predecessor Breakaway ships, Del Rio told the financial community, “Encore is the best booked, highest price Caribbean introduced ship in Norwegian’s history.” SHIP REVIEW NORWEGIAN ENCORE COMPLETES BREAKAWAY PLUS CLASS Norwegian Cruise Line completed its four-ship Breakaway Plus class with the introduction of the Norwegian Encore. The highly successful ships advanced Freestyle Cruising and the renewal of Norwegian as a significant competitor in the contemporary market. CruiseBusiness. com Magazine looks at the Norwegian’s largest ship and the continued design enhancements and innovations introduced on its newest ship. By Allan E. Jordan Ph oto cre dit , all ph oto s: NC L or Al lan E Jo rd an 678 Ocean Place is the focal point of Norwegian Encore 34-39 .indd 2 31.1.2020 14.01
NORWEGIAN ENCORE COMPLETES BREAKAWAY PLUS CLASS 34-39 .indd 3 31.1.2020 14.01
36 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 Increased Space Ratio Norwegian sees this ship as a showcase of its Freestyle Cruising approach, according to the line’s incoming President, Harry Sommer. It offers a wide range of activities, dining, entertainment, and accommodations to ensure that it has a broad appeal to travelers. Interestingly, though, unlike most cruise lines, Norwegian continued to make alterations in the design to each ship in the class resulting in four unique layouts. Most significantly, and bucking one of the prevailing business trends, Norwegian reduced capacity of the later ships in the Breakaway Plus class. “There are two ways to approach ship design,” explains Sommer saying that they could “maximize the number of guests or maximize the guest experience.” The Norwegian Escape, the first of the class, maximized passengers accommodating 4,266 passengers double occupancy, while the Norwegian Encore has a double-occupancy capacity of 3,998 passengers. Among the significant elements of the redesign, Norwegian working with the builder Meyer Werft moved the bridge one deck lower on the later ships creating space for one of the largest observation lounges at sea. First introduced to rave reviews on Norwegian Bliss, the Observation Lounge is also aboard Norwegian Encore. Creating this space which is unique in Norwegian’s market segment, required sacrificing 16 outside and 9 inside cabins on Deck 14 and an additional 60 outside cabins on Deck 15. Similarly, in the private suite enclave known as The Haven, Norwegian sacrificed four forward-looking suites to create a two-story observation lounge for the suite passengers. Robin Lindsay, Executive Vice President of Vessel Operations for Norwegian Cruise Line Holdings, points to these changes as part of the evolving philosophy of the line, creating a marketing advantage by increasing its passenger space ratio. The Norwegian Encore is 16% larger (nearly 23,500 more gross tons) than the Norwegian Breakaway, yet accommodates roughly the same number of passengers. The first Breakaway Plus ship, the Norwegian Escape, has a space ratio of 38.7 while Norwegian Encore’s ratio increased to 42.4. Other new ships in the contemporary category have a space ratio between approximately 34 and 40. Lindsay hints that this is a trend that will continue both in the forthcoming Project Leonardo on order from Fincantieri and in the class that will follow the Leonardo ships. Elevated Decor “That’s the difference when the design is done by people passionate about the passenger experience,” says Sommer. He explains that the team lead by Del Rio and President and CEO Andy Stuart worked very hard to create the onboard experience featured on the Norwegian Encore. “Frank is our secret weapon. He has a passion for design and he is really good at it.” Main pool area The Local is the casual restaurant Fleet mates Norwegian Escape and Norwegian encore meets in New York 34-39 .indd 4 31.1.2020 14.01
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 37 ? While the Norwegian Encore is largely a sister ship to the Norwegian Bliss, a number of changes were nonetheless incorporated into the last ship of the class. Norwegian, Lindsay explains, had previously changed to the largest Azipods available to provide extra power and speed for the later ships of the class and a ducktail was incorporated into the design as they added the go-cart racetrack and other elements. They explored further changes, including adding a new structure aft on Deck 17 to house the Galaxy Pavilion with a host of virtual reality games. According to Lindsay, it was only introduced on the Norwegian Encore after a year working to recalculate the stability of the vessel. The added stern weight was partially off-set by removing the Spice H20 adults-only deck area with its water feature and large projector screen, but Norwegian relocated the outdoor laser-tag course to the stern and enlarged the racetrack. Lindsay says there are a few other structural changes, such as increasing the deck height in The Haven Restaurant, which required raising the Vibe Beach Club up one step, but those were largely for passenger comfort on the Norwegian Encore. Another subtle change that is visible around the Norwegian Encore is the contemporary designs and color schemes in the décor. According to Sommer, it is part of a conscious decision to elevate the décor to land-based standards across the fleet. Sommer believes that Norwegian’s competition, and growth, will come from the travelers at land-based resorts and as such the ships must reflect those standards. Externally, the Norwegian Encore continues the line’s style of hull art with a colorful work by one of Spain’s leading artists Eduardo Arranz-Bravo stretching the length of the 1,094-foot-long hull. For the interior styles, Norwegian continued to work with three leading design firms, Studio DADO of Miami, SMC Design of England and Tillberg Design of Sweden. The firms had executed earlier designs for the Breakaway Plus class, as well as other cruise ships, but instead of repeating all of soft goods and furnishings, new designs were selected for areas around the Norwegian Encore. In the Observation Lounge, for example, which features blues and grays on the Norwegian Bliss, you will now see a soft green, silver grey and beige color scheme. The new décor was even extended into areas such as the stair towers and elevator lobbies. Popular elements of the Breakaway and Breakaway Plus class ships continue to be found on the Norwegian Encore includOnda by Scarpetta Q Texas Smokehouse 34-39 .indd 5 31.1.2020 14.01
38 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 ing 678 Ocean Plaza that interconnects the public spaces with a sweeping staircase and openings between decks. Similarly, first introduced on the Norwegian Breakaway, the promenades on Deck 8 feature a combination of outdoor dining venues, extensions of the lounges and bars, and spaces for lounging collective known as The Waterfront. Indeed, this design was at the forefront of the industry’s current efforts to reconnect passengers to the sea with more outward facing designs and open-air areas. The Norwegian Encore, like the other ships of the class, has 20 different dining options, as well as an array of nightly entertainment including an adaptation of the Broadway show Kinky Boots and the musical Choir of Man. Smaller musical venues include a Beatles cover band and a multi-purpose nightclub that doubles as a comedy club. Andy Stuart’s passion for the onboard experience also shaped some of the changes found aboard the Norwegian Encore. The Galaxy Pavilion, which offers a broad range of virtual reality experiences, ranging from a racecar simulator to hang-gliding and a roller coaster, reappears on the Norwegian Encore after being introduced on the Norwegian Joy. The onboard experience team lead by Vice President, Guest Experiences and Innovation Simon Murray, however, has added some new elements such as a 45-minute escape room game that starts with a virtual reality movie. The racetrack was also lengthened to nearly 1,150 feet with a new shape that extends 13 feet over the sides of the ship as well as a new spectator’s area. The fee-based Vibe Beach Club, a relaxed deck area with hot tubs, a bar, and private cabanas, was also expanded in response to its popularity. The downside of these changes, however, is that public outdoor deck space that was already somewhat limited on the Breakaway and Breakaway Plus ships is further reduced. The Norwegian Encore also continues the efforts to elevate the onboard experience with the introduction of Onda by Scarpetta, an upscale Italian restaurant replacing the previous La Cucina. The Norwegian Encore also has a Starbuck’s as well as a decadent sweet shop named Coco’s and other returning Vibe Beach Club Galaxy Pavilion The Maltings 34-39 .indd 6 31.1.2020 14.01
STUDIO DADO CREATES ENCORE SPACES Norwegian Cruise Line’s newest ship, the Norwegian Encore, was launched in November 2019 with designs from South Florida-based, boutique interior design firm Studio DADO. Studio DADO was responsible for the design of two brand-new concepts onboard the Encore: Q, a Texas roadhouse-style barbeque joint; and Onda by Scarpetta, which brings the iconic New York City restaurant to the high seas through an adaptation of its brand. Other new designs include The Social Comedy Club, Teppanyaki and the Galaxy Pavilion. Leading the project were two of Studio DADO’s founding partners, Yohandel Ruiz and Javier Calle. The award-winning firm, which recently debuted on Interior Design magazine’s “100 Rising Giants” list for 2019, brought its uncomplicated and collaborative design approach to the Encore to create these transformative spaces. Having worked with NCL on several previous vessels, DADO understood that as the last ship in the class, the Encore needed to provide guests with an unparalleled experience. “Understanding client expectations and their desire for the traveler experience is key to successful design. This is especially so when we have nuanced projects that require a great deal of thought as to not only how guests will use the space, but how they feel in the space,” says Yohandel Ruiz. “When design is done right, the guests are transported into another time and place.” Studio DADO’s philosophy is exemplified by its interpretation of a Texas roadhouse-style barbeque joint, Q, an authentic experience with its time-worn and textured look. The use of raw, distressed materials purposefully creates a space that feels as if it just came together over time. Meanwhile DADO’s work on The Social Comedy Club takes guests on a journey through the evolution of comedy with a black-andwhite palette evoking an old Hollywood feel and whimsical touches that pay homage to iconic sitcoms from the 1950s and ‘60s. For the Onda by Scarpetta reinterpretation, led by Javier Calle, Studio DADO has created an onboard aesthetic that combines elegant old-world charm with the sophistication of a Manhattan eatery. Utilizing its specific, customized approach, Studio DADO captured the ideal balance of high energy and effortless elegance while preserving a communal and comfortable atmosphere. DADO applied natural materials such as walnut and calacatta gold marble to create a contemporary, minimalist Italian aesthetic. The result not only provides a memorable experience for guests, but represents the pinnacle of chic and effortless modern design while staying true to the aura that is Scarpetta. “Working with Studio DADO has been one of the most efficient design processes I’ve ever been a part of. We had instant chemistry and spoke the same language,” says John Meadow, Founder and President of LDV Hospitality. “Our visual aesthetics were in line since day one. They listened and executed immaculately.” n favorites including Cagney’s Steakhouse, Ocean Blue, Le Bistro French Restaurant, Los Lobos and Food Republic. While providing passengers an expanded range of options and experiences during their cruise, similar to the land-based resorts that Sommer cites as their competition, each of these elements also contributes to Norwegian’s industry-leading performance in onboard yields. In 2018, for example, onboard and other revenue accounted for 30% of Norwegian Cruise Line Holdings’ consolidated revenue. Aboard Norwegian Encore, passengers can buy day or cruise passes for the Vibe Beach Club, per ride, hourly or cruise passes for the virtual reality games, and per game/ ride fees for the raceway and laser tag. There are numerous additional extra expense options from food treats to the gift shops, photos, alcohol and wine, the casino, and spa treatments or the relaxation room. Specialty dining features a la carte menus with pricing similar to shore side. Based on the positive response to the ship during the trade previews in New York and Miami, and the solid advance bookings, the Norwegian Encore will be another strong addition to the fleet. During the previews, management was referring to her as “Andy’s ship,” acknowledging Andy Stuart’s vision during his five years as CEO of the line. After 31-years with the company, Stuart recently announced his retirement, but his influence on the industry will continue to be felt for many years to come with these popular ships. The culmination of the class and Norwegian’s resurgence, it is not only a fitting legacy for one of the most popular executives in the cruise industry, but also sets a new standard for the contemporary segment of the cruise industry. n CRUISEBUSINESS.COM MAGAZINE WINTER 2020 39 ALWAYS TO BE TRUSTED We take pride in the relations we build with our customers, and we take pride in the products we deliver. This gives us the confidence to state that we are always to be trusted. www.jetsgroup.com Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway – Tel.: +47 70 03 91 00 – E-mail: post@jets.no Observation Lounge 34-39 .indd 7 31.1.2020 14.01
40 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 SHIP REVIEW W hen SunStone decided to build a series of small exploration ships, beginning with the newly inaugurated Greg Mortimer, a Chinese shipyard was not the obvious choice, but – as it turns out – SunStone President and CEO Niels-Erik Lund is more than satisfied with the result. At the beginning, SunStone negotiated with conventional cruise newbuilding shipyards. “In my opinion Meyer Werft is number one for building cruise ships. That was our wish, but we ran into issues on financing in Germany and also on timing,” Lund commented. This led the company into some hefty negotiations with a choice of shipyards in Norway (Ulstein), Spain and Croatia, all of which had little if any experience in the sector. Alongside these European yards were two in China including China Merchants Heavy Industries (Jiangsu). In the end, what it came down to was a choice of European shipyards with “very limited resources” in terms of people and those in China which, Lund explained, have “huge capacities in dry docks, steel production, people and equipment offering.” So Sunstone opted for China. “Our decision was that if there was a delay in building because of lack of experience, European yards would take a long time to catch up. We decided to go with China based on the main GREG MORTIMER EMERGES FROM CHINA Niels-Erik Lund, President and CEO of Miami-based SunStone Ships Inc., talked to CruiseBusiness.com Magazine’s Susan Parker about building in China – its benefits, challenges and the learning curve experienced by both his company and the shipyard in overcoming language difficulties and other issues. 40-45 .indd 2 3.2.2020 10.10
reason of their capacities/resources, but also because we could have a contract there where we were very, very much in control of the building processes,” Lund said. In this respect, he explained that the Chinese builders accepted that SunStone had Ulstein doing all the basics such as tank tests and so forth, as well as being the equipment supplier. “Everything on our makers’ list from engines to stabilizers to radars was European, from companies which had delivered to the cruise industry for 15 years.” Everything was purchased by Ulstein, delivered to the yard, and then Ulstein supervised the technical installation on the ship. “This was very, very important to us. We wanted equipment onboard that can be serviced worldwide.” SunStone also negotiated with the shipyard that after Tillberg Design US had designed everything, Makinen would be the interior contractors responsible for all the interiors. “We ended up building a European ship assembled in China,” Lund observed. In terms of the interiors, some panels for hallways and cabins were manufactured in China, as with cruise ships for other brands being built in European yards. On-site supervision What was obvious early on was that the SunStone supervision team would need to be larger in number than would be required for a yard with prior cruise ship building experience. For the Greg Mortimer there were 22 on site, which has now increased to 32 and will soon be 40. The Greg Mortimer is the first of seven ships scheduled to be delivered, although there are 10 signed for in the contract. Steelwork on the second – the Ocean Victory – is complete, with delivery due this October. Work on the third ship has begun. Lund said he is delighted that the first vessel was delivered on time and is “very, very pleased” with the result. The Greg Mortimer – at 7,400 gross tons – has a length overall of 104.4 meters, a moulded beam of 18.4 meters and a design draught of 5.3 meters. Classed by Bureau Veritas and registered in Nassau, the vessel is Ice Class 1A Polar Code 6 compliant. The maximum number of passengers and crew on board is 275 (80 passenger cabins and 58 crew). Turning to the comparative cost of building in China, Lund estimated that the price was a minimum of 20% below the cost of building in a European yard. Not surprisingly, the costs of transporting all the equipment from Europe to China were much higher, but “the yard takes that into consideration, and that is their responsibility,” he said. As far as SunStone is concerned, a higher cost was clearly incurred by the 40 people needed on site, which would have been “far fewer in Meyer Werft.” However, he added, “Not only do we save on the building price, but we get the ship on time. The cost of delay for others [building in Europe] must be humungous and reputation-wise, it is not good.” ? 40-45 .indd 3 3.2.2020 10.10
42 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 In terms of timing, the production schedule was followed, but there were a few times when the yard had to redo things due to lack of experience. However, with the resources available they just put more people on. “They have the resources, and also they can work shifts. There were times when there were more than 300 people working on this small ship.” In the past, the Chinese yard would have had about 20,000 employees; nowadays, it is nearer to 7,000 with much automation and all the latest welding and cutting machines in place. “It is getting very efficient and on a level with most European shipyards. They could build 25 of our ships in one dry dock,” Lund noted. While there may be a lack of experience in some areas, in terms of steel production, he said, “There is no doubt that it is as good as in European yards.” Language the biggest challenge When it comes to the challenges that were faced in building the Greg Mortimer in China, Lund said that language was the biggest issue. “There is a lot of translating, so it does take more time. It is more complicated, and there are misunderstandings.” However, he added, “Some of our team are Chinese; they are experts in their field, and they know everything in English.” Still, there were bumps in the road. “We and the shipyard have learnt that their supervision was not good enough. There were things that were not done right. The building needed a lot more supervision by the shipyard itself, and that has become much better at the end of the first ship.” Lund continued: “We had to guide them and write and document every article and check it all to see that it is done. They needed to check more that it was right. From a man-hour point of view, they have drastically reduced that for ship number two. Building is much more efficient, and I am sure it will be [even] more on ship number three. I am so pleased we are doing a series of ships. Unlike my colleagues, we can use experiences [on Greg Mortimer] on the next ships.” This inexperience had cost implications for China Merchant Heavy Industries, as well. “We have negotiated a fixed price so it will be better for the shipyard. I don’t know what they [the shipyard] lost on the first ship. Hopefully, they will start making money on the third. From a cooperative point of view, there was never an issue. They always did it right. They corrected it. We will see a major efficiency from the shipyard. It is very keen, and that is the way it should be,” Lund said. From an environmental point of view, Lund said that SunStone has opted for “the best we can think of all the way round.” First up is Ulstein’s patented X-Bow, which is a first on a cruise ship, allowing for more gentle sea crossings, improved comfort and reduced emissions. Another example is that the ships are being built to burn only MGO (560m3 tank capacity) and are being fitted with Tier III engines (two Wartsila 6L26 at 1,200kW) for a maximum speed of 15.5 knots. Also groundbreaking are the zero-speed stabilizers (Aquarius 100/8.1m2) from Rolls-Royce that have been installed, which work whether the ship is moving or not. Lund explained: “Even if sitting at anchor, they will work to keep the ship stable. In Antarctica and the Arctic, when getting in and out of zodiacs, it is not only better but safer.” Beyond Safe Return to Port SunStone has gone beyond regulations in building this ship to Safe Return to Port (SRTP), despite this being a requirement for ships over 125 meters long (the Greg Mortimer measures 104.4 meters). “As we are operating where there are no other ports or ships, we need to introduce SRTP. Every system on board is separate; for example, there are two engines in each engine room. Tanks, pumps, etc., are completely separate – so if there is a fire in one, we have another. We have two complete bridges. One is on top of the ship in our observation lounge. All the equipment is there, although it is not a separate bridge as such.” The ship is equipped to sail for a maximum of 25 days, but from an emergency point of view it has fuel enough to last for 40 days in one stretch and water (160m3 freshwater tank capacity) is made onboard. The potential problem would be in Niels-Erik Lund (right) together with Margaret and Greg Mortimer onboard Dining room Balcony stateroom 40-45 .indd 4 3.2.2020 10.10
food supplies. From a fuel point of view the ship can, for example, sail from Ushuaia to Spitsbergen without stopping and without passengers, but this is a choice for the charterer to make. In the case of the Greg Mortimer, charterer Aurora Expeditions is selling repositioning cruises between north and south except for one leg from the Caribbean to Europe when she will sail without passengers. Being delivered early enabled a 7-day VIP cruise to be undertaken beginning on October 23 for 70 of those involved in building the ship, prior to the maiden voyage on October 31 with fare-paying passengers to Antarctica and back out of Ushuaia. When CBM spoke to Lund at the end of November, the Greg Mortimer was on its fifth cruise, and there had been no downtime. The first season is sold out and the second is almost sold out. In terms of chartering, Aurora is responsible for everything onboard affecting the passenger experience, including hiring the expedition staff. From an operational point of view, SunStone is the provider in terms of deck and engine and the hotel side. With so many expedition ships on its orderbook, Lund agreed that crewing is another challenge. “It is becoming more difficult [to hire marine crew] and will become more so,” he acknowledged. However, he said he believes that SunStone has an advantage from an officer crew point of view, as it has more ships than those companies with only a couple. “It is clearly a major benefit for our officers and crew that we are expanding the SunStone fleet, which gives good opportunities for promotions and getting onboard the newbuildings.” Tomas Tillberg team onboard Greg Mortimer. From left: Richard Louis-Jacques (husband of Nedgé Louis-Jacque), Nedgé Lois-Jacques (Partner and Vice President of Design), Diana Reyes (wife of Carlos Reyes), Margaret Mortimer (the wife of Greg Mortimer), Carlos Reyes (Managing Partner), Nadine GroningTillberg and Tomas TIllberg (Managing Partner) Observation Lounge Lecture lounge CRUISEBUSINESS.COM MAGAZINE WINTER 2020 43 ? 40-45 .indd 5 3.2.2020 10.10
44 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 Interiors by Tillberg The ship’s interiors have been designed by the team at Tomas Tillberg Design & Associates (TTDA) which has been working with SunStone for almost two decades on refurbishment projects. “We know them; they know us and our type of product. They are the designers of the entire series,” Lund said. CBM caught up with managing partner Tomas Tillberg in early December after he had returned from a trip aboard the Greg Mortimer. “Antarctica is absolutely amazing,” he said. “It changes your life, actually.” It is clear that cooperation between the two companies is good, and that each charterer has their own ideas about how they want the ship to look. At the same time, he noted, “there are certain basic configurations [in the GAs] that are the same.” After the interior design, it is the itinerary that is the next important consideration. Aurora Expeditions has been in the business for some time, focusing mainly on the polar regions. Hence, Tillberg explained, “It is very important that the whole focus of the design is to the outside: big windows, platforms to view from. Sometimes it is very cold, so you need to see from inside to outside.” On the Greg Mortimer, TTDA has brought some of the colors and atmosphere from the outside onto the ship. “It is light and fresh, not dark and moody. It is nice and comfortable.” The vessel’s artwork was extremely important for the ship’s namesake and founder of Aurora Expeditions, Greg Mortimer. As Tillberg explained, “Each piece is dedicated to an Australian explorer with information about them, but also pictures from different areas; for example, Antarctica and Greenland as well as wildlife. All the images [380 pieces] are created by Australian photographers. The first thing you see in a cabin over the headboard is a huge high-res image from up north or from Antarctica.” Talking of the cabins, Tillberg was keen to explain how much work went into designing the cabins to make them not only stunning, but comfortable and safe for a ship that can go into weather other ships might avoid. One example was to place grab rails in the bathroom by the toilet and shower, another was to avoid sharp corners on furniture and to ensure that balcony doors open and close properly. The ship’s beds also required special attention. “Most beds today are either put together or moved apart. Because one is movable, it has to be fixed when it is [configured] together so it doesn’t start moving,” he observed. Furniture, too, needed to be secured for the same reason. Facing challenges are a part of everyday life. Thanks to my team and the MKN FlexiChef I’m de? nitely up for any of them. Smart technology guarantees perfectly cooked dishes and takes care of cleaning too. MKN FlexiChef smart cooking. smart cleaning. I MAKE THE RIGHT CHOICE EVERY DAY! #mychoice | WWW.MKN.COM Elephant Island Bar Zodiacs 40-45 .indd 6 3.2.2020 10.11
Facing challenges are a part of everyday life. Thanks to my team and the MKN FlexiChef I’m de? nitely up for any of them. Smart technology guarantees perfectly cooked dishes and takes care of cleaning too. MKN FlexiChef smart cooking. smart cleaning. I MAKE THE RIGHT CHOICE EVERY DAY! #mychoice | WWW.MKN.COM The X-Bow also has beneficial implications for the interior spaces, Tillberg explained. “The GA is a little bit different to a ship with a typical bow. The front of the ship is different, so if you go down to the lower decks, there are cabins much further up front than on a normal ship. You have more space in the front for public areas, for example the main lounge is way up front with big windows and further up you come to the bridge. But also further on above is the observation lounge where you don’t look over the bow but just over the water. For an expedition ship, it is absolutely perfect.” The X-Bow design even impacts the outside view, he noted. “You stand up there in the outside area in front of the observation lounge where there is a glass railing and just look right down into the ice.” Tillberg and his team started designing for Greg Mortimer less than three years ago, which, he said, “was quite a rapid focus.” Building in China was a unique experience, he added. “There are always teething problems [in any yard]. It would be strange if not, but there was nothing that was not surmountable. We have done it.” In terms of sourcing, Tillberg has worked closely with Makinen in the past. “We have worked with them on many other projects, so between us we have a very, very good understanding on what works and what doesn’t work and how we can achieve the best result. They, of course, tried to find things that they can source in China, but basically the original whole outfitting is done with European quality. When we pick materials and fabrics, tiles, etc., we are in cooperation with Makinen to make it easy for them to do.” Why newbuildings? SunStone, which up to this point had only purchased existing ships, made the decision to construct its own newbuildings because, in its opinion, there were no more secondhand ships of quality to be purchased – a situation that will only get worse, according to Lund. “Quite a number of ships worldwide will have to be scrapped in the next four to five years, including some of our ships,” he observed. The company’s philosophy is a little unusual in the cruise sector in that all its newbuildings were chartered out before the building contract was signed. As Lund explained, “We have signed for up to 10 ships. We cannot afford to take the risk of building without a charterer. I think we are the only company like that in the world.” As to the future, Lund said he has no doubt that should SunStone decide to build another series of small ships, it would return to China. His advice to others thinking of following his lead is: “To have a large supervision team. Start by getting the right contract. Be in control as much as you can be in terms of the building processes – everything – so you can step in.” And most of all, he said, be conscious of “the language issue. n CRUISEBUSINESS.COM MAGAZINE WINTER 2020 45 Library 40-45 .indd 7 3.2.2020 10.11
Costa Smeralda is the second cruise ship to use LNG as its fuel. Pictured in Barcelona P.O.Box 55, Suojantie 5 FI-26101 Rauma, Finland Phone +358 30 600 5400 info@RMCfinland.fi www.RMCfinland.fi Building ships for specialist purposes and harsh conditions with skills and enthusiasm trusted for centuries. Seafaring has always been vital to Finns. Shipbuilding at coastal facilities in and around Rauma stretches from 14th century merchant ships to ultra-modern, specialized vessels of the 21st century. Hundreds of ships constructed in Rauma are today sailing and operating all the seas of the world. Rauma’s shipbuilding competence has always been characterized by traditional spirit and pride and recent decades have seen a focus on the successful development of marine and environmental technology. ”A New Beginning” NB6002, Aurora Botnia, The New Ferry for Wasaline NB6003, MyStar, The New Tallink Shuttle Ferry rauma.indd 1 30.1.2020 12:18:16 46-53 .indd 2 3.2.2020 10.21
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 47 ? P.O.Box 55, Suojantie 5 FI-26101 Rauma, Finland Phone +358 30 600 5400 info@RMCfinland.fi www.RMCfinland.fi Building ships for specialist purposes and harsh conditions with skills and enthusiasm trusted for centuries. Seafaring has always been vital to Finns. Shipbuilding at coastal facilities in and around Rauma stretches from 14th century merchant ships to ultra-modern, specialized vessels of the 21st century. Hundreds of ships constructed in Rauma are today sailing and operating all the seas of the world. Rauma’s shipbuilding competence has always been characterized by traditional spirit and pride and recent decades have seen a focus on the successful development of marine and environmental technology. ”A New Beginning” NB6002, Aurora Botnia, The New Ferry for Wasaline NB6003, MyStar, The New Tallink Shuttle Ferry rauma.indd 1 30.1.2020 12:18:16 “T he driver for more environmentally friendly shipping is the public – people just do not want to travel on ships that belch clouds of black smoke from their funnels,” said Hakan Enlund, Executive Vice President, Sales and Marketing, at Rauma Marine Constructions, the Finnish shipbuilder that specializes in ferries. The builder has two such vessels on order at the moment. The Aurora Botnia that is on order for Wasaline will be about 24,600 gross tons and will be fitted with a battery pack to reduce emissions. It will be the first newbuilding on the service between the ports of Vaasa in Finland and Umea in Sweden and the first ferry worldwide with “Clean Design” class notation. At first it will run on LNG, but plans call for the ship to use biogas from a local plant in Vaasa region later on. LNG will also be the fuel used on MyStar, at about 49,000 gross tons a much larger vessel that will be employed by Tallink on its Tallinn-Helsinki shuttle service. Enlund said that not just in shipping but in society as a whole will the question be: What fuels will power economies in the future? “We are talking about electric cars; planes may use elecFERRY TECHNOLOGY TEST BEDS FOR TECHNOLOGY Ecosystems in ferry short sea shipping often lead the way in developing new solutions and sustainability technologies, many of which can be adapted for use in the cruise shipping ecosystem as well. By Kari Reinikainen tricity in the future as well. In shipping, it is obvious that LNG will only be a temporary solution.” It is likely that not just one but several solutions will be used onboard ferries and other ships in the future, depending on the size of the vessel and the duration of the voyage they are expected to undertake. Major considerations regarding fuel In all cases, Enlund said, the marine fuels of the future need to meet requirements arising from two preconditions. “Firstly, fairly large amounts of the fuel will have to be stored onboard. Secondly, the energy should be packed fairly tight to ensure that it does not take excessive amount of space onboard the vessel,” he pointed out. A major consideration in all evaluations of future fuels are the overall merits of each solution, and optimizing the entire supply chain needs to be looked at. “Hydrogen is a green fuel, but it takes up five times as much space as LNG,” Enlund continued. Ammonia is also a green option, but Enlund pointed out that it makes no sense to utilize electricity, even if produced by renewable green sources, if the product – ammonia in this case – only contains half the amount of energy than what was used to produce it. The Aurora Botnia is planned to start using biogas at some point. Buses in the city of Vaasa already use this fuel, which is produced at a plant adjacent to the city’s waste-handling facility. “At the moment, the gas is not pure enough to be used in marine engines. The engines of buses are a bit less demanding. However, these challenges will be overcome,” Enlund said, adding that Vaasa has facilities of technology groups Wartsila, WE-Tech and ABB, both of which have a major foothold in the marine industry and which are also involved in the energy sector. “Aurora Botnia is intended to become the flagship showpiece of these technologies in the region,” he said. Another ferry with a sophisticated propulsion system is the Color Hybrid, a 27,164 gross ton newbuilding delivered last year from Ulstein Verft in Norway for Oslo-based Color Line’s Aurora Botnia will feature new sustainable technologies 46-53 .indd 3 3.2.2020 10.21
48 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 service between Sandefjord in Norway and Stromstad in Sweden. A 5 MWh battery pack allows the ship to sail for 60 minutes at up to 12 knots, enough to take it in and out of the fjord in Sandefjord, which means there will be no emissions to the air. Noise will be reduced as well – 100 meters from the ship, it is equal to the level of two people having a conversation. The ship also features an advanced heat recovery system. Hurtigruten, the Norwegian coastal ferry and expedition cruise ship operator, is using hybrid propulsion in its two expedition cruise ship newbuildings, the Roald Amundsen and Fritdjof Nansen, both about 21,000 gross tons. Stena Line, the large Swedish ferry company, is testing both battery packs and methanol. Scandlines is also using batteries to cover part of the energy needs of its ships, while several ferries of various sizes use LNG as fuel – which was first introduced on a large passenger vessel in 2013 when the cruise ferry Viking Grace entered service. The port-ship interface in particular is very advanced in the ferry sector, and there are some good reasons why this is the case. Most ferries operate just between two ports. The crossings themselves can range from a few minutes in the case of a simple domestic ferry to overnight sailings in the case of large cruise ferries and ropax vessels. Shore power while in port has been widely used in the ferry sector for a long time, said Vesa Marttinen, Head of Cruise, Ferry and Yacht business at the Helsinki-based technology group Wartsila Oyj. Ferries part of infrastructure “The ferry sector is dynamic, because ferries are part of infrastructure and sustainability is a very important aspect in Europe and North America in particular,” he said. While a major cruise ship usually spends a whole day in port for each turnaround, even a large cruise ferry often only has an hour or two for the same operations. This means that passengers, their cars and freight vehicles need to be disembarked quickly, and the load for the next crossing needs to be onboard in a short time as well. Fuel and provisions are also brought onboard during that short time and waste put ashore, and the operations are highly efficient. Ferries are part of the European Union’s surface transportation programs, which has opened funding from that source to testing six or seven different ways to employ wind power onboard. “Such big pilot projects drive forward new technologies,” Marttinen pointed out, adding that in addition to traditional ship systems, the development of heating, ventilation and air-conditioning (HVAC) and galleys have also received public funding in an effort to make these operations more sustainable. Looking ahead, Marttinen asked if waste could be turned into energy in the form of biofuel, so that a circular economy with zero emissions could be achieved. This would only cover part of the energy needs of a ferry, but the rest could come from solar and wind power and other means of power generation. To take the port-ship interface to the next level, Marttinen asked why the catering team on passenger ships – cruise vessels and ferries alike – needs to take care of all food-service functions onboard. “Could there be a pop up restaurant, where a local restaurant could offer its services?” he proposed. This could take part of the food preparation away from the ship, vacate space for other uses, cut energy use onboard and add diversity to the onboard catering offered. An increasingly important aspect of this is that such a move would inject more money into the local economy and thereby resemble an airport, which is a major business enabler in its location. “We need to work on matters like this to find a sustainability win/win situation: What can we do to rely more on local support without sacrificing profitability?” he reasoned. Ferries, thanks to their reliance on two ports in most cases, are in Artist’s renderings of Aurora Botnia public areas Color Hybrid is fitted with battery packs 46-53 .indd 4 3.2.2020 10.21
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 49 Reduced fuel consumption and additional thrust with thruster grids ELOMATIC CELEBRATING 50 YEARS OF ENGINEERING PATENT PENDING a leadership position when it comes to thinking of such new business concepts. There is a strong demand for both cruise ships and ferries at the moment, with orderbooks for the cruise vessels at an alltime high. This has affected the technology landscape, as new shipyards and technology companies have entered the passenger shipbuilding space, yet this has not resulted in a loss of foothold for established companies such as Wartsila. “All face new challenges, all need to think of how to bring new thinking to the ecosystem,” Marttinen said. Destination-designed ships Returning to the question of how ships could better benefit from shore-based facilities, Marttinen asked whether all cruise ships really should be designed for worldwide trading and long-haul voyages, which is the case today. “Could we design destination-dependent rather than worldwide, long-rangebased designs? Alaska and the U.S. West Coast, the Caribbean, Baltics and Norwegian fjords could each have their own design features,” he predicted. ? New Dover-Calais ferries will feature a double-ended design and two bridges 46-53 .indd 5 3.2.2020 10.21
50 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 A further benefit of this approach would be a need to comply only with regulations in the ship’s designated region of operations, rather than worldwide ones. This is becoming an increasingly challenging matter, as many countries and regions have introduced their own regulations, rather than waiting for (or accepting) the International Maritime Organization’s worldwide regulations. A key challenge for technology companies is to drive forward the integration of shipport operations. “The port-ship integration is close in ferries, and the cruise sector should look closer at this as well,” he concluded. While technology onboard ships is an important aspect in making shipping greener – and ferry shipping is at the forefront of this development – a lot can be achieved by a better integration of the port and the ship into a single ecosystem. “You can cut speed at sea if you can make the turnaround in port quicker. If you are allowed to optimize the designs of ship and port, you can save a lot. A $5 million investment in fuel saving onboard can cut consumption by 10% to 15%; but if you redesign the port infrastructure, a $5 million investment could save 25% in fuel consumption,” said Anders Ørgård, Chief Commercial Officer at OSK-Ship Tech in Aarhus. Flexibility in design In this dynamic world, the ferry industry is looking at flexible technical solutions. The two newbuildings that P&O Ferries in the UK has contracted from Guangzhou Shipyard International in China for its Dover-Calais service were developed by the owner and OSK-Ship Tech, the Danish consultant naval architects, with an aim to significantly reduce fuel consumption – and thereby emissions – and to future-proof the investment, Ørgård said. The 230-meter-long vessels will be by far the largest used on the 75-minute crossing that handles millions of passengers each year. “The diesel-electric platform allows the addition of fuel cells, batteries and bio fuels later. Nobody knows today what the future will be like in 15 years from now – you need a solid backbone,” Ørgård pointed out. P&O Ferries, which is part of the DP World group and should not be confused with P&O Cruises that is part of Carnival Corporation & plc, said in a statement that the use of diesel-electric propulsion that includes batteries will cut fuel consumption by 40% and a sophisticated heat recovery system will further enhance the fuel economy of the two ships. The ships are designed with the capacity to be carbon neutral in the future on the twin assumptions that there will be more electric shore charging stations in ports and more batteries. “A double-ended design and two bridges on the ship means that there is no need for it to turn around. The captain and senior officers will simply walk to the other end of the ship and navigate from the second bridge on the return leg,” P&O Ferries said. This may not sound like a major feat, but in fact it will save seven minutes of time on both the outbound and return journeys and one ton of fuel, a sixth of the amount used on the entire 21-mile crossing, the company stated. “If you look at the price and capacity of batteries, you will notice that they follow what is happening in semi-conductors: halving the price and almost doubling the capacity go hand in hand,” Ørgård told CruiseBusiness.com Magazine. There are several installations of batteries onboard ferries – vessels trading between Sweden and Denmark use a 4.6MWh pack that covers roughly half their energy needs on the short crossing. Together with capacity, the life span of batteries is a major consideration, and the two are closely linked. Ørgård said it is about eight years, and as it takes about four years from project start to delivery in the case of a new ferry, this means that their capacity will have increased and the price fallen significantly in the 12 to 13 years’ time when replacement becomes necessary. Cells develop rapidly, stability needs attention Fuel cells are also developing rapidly and at the moment, the largest ones on the market have a capacity of 3 MWh. As they operate 24/7, it makes sense to combine them with batteries because the power needs on a ferry fluctuate during the day. When little power is used, the surplus can be stored in batteries, while at times of high power demand the charge in the batteries can be used to top off the power from fuel cells. Ferries only require full power output for a very small percentage of time, which makes such arrangements worthwhile. The use of batteries allows the reduction in the number of diesel engines, when the electricity is generated this way, which results in lower maintenance costs. Such an arrangement allows the engine to operate at a constant, optimal load, meaning that operating expenses will also decrease. While the ferry industry is very keen to employ new technologies, the realities of the shipboard environment can raise challenges that do not emerge in case of land-based applications. Fuel cells, for example, are quite lightweight compared to diesel engines. As the engines are placed low in the hull, their weight makes a considerable positive contribution to the stability of the ship. If a diesel engine were to be replaced by fuel cells, the stability could be compromised. This could be remedied by building the hull widStena Estrid is the first of five next generation new builds for Stena Line. The ship operates on the company’s Irish Sea routes 46-53 .indd 6 3.2.2020 10.21
er, but this could result in higher water resistance and thereby higher fuel consumption, which goes against the aims of building environmentally friendly ships. “In the case of one ferry, it was decided to use old-style lead batteries that are heavier than modern types. They were cheap and their weight eliminated the need to use fixed ballast,” Ørgård explained. Classification societies become innovation friendly Ferries are often used as test beds of new technologies, and quite often it happens that the rules of classification societies do not cover what is proposed to be installed on a ship, said Peter Albrecht, Senior Advisor at the Finnish consultant engineering company Elomatic. “In such a situation, the classification society in question will carry out a risk assessment of the proposal, it then often presents additional requirements, and when these have been met, grants a green light,” he told CBM. In practice, new technologies also drive the creation of new rules at classification societies: Once the template has been set by a pioneer, it is easier for others to follow in the same footsteps. Albrecht pointed out that the stance of classification societies has changed remarkably in the past two decades or so. In the past, it was very difficult to get an exemption to introduce new technologies. Today they are much more flexible, which has been a significant help in the introduction of new solutions onboard. Ferries have often led the way in this development, and Albrecht said there are several reasons for this: These vessels usually operate between two ports and make relatively short crossings, which allows support functions from ashore to be nearby as well as help, should the need arise. Various suppliers and contractors can also have members of their staff onboard to monitor equipment and gather information on how the various new systems work. “In practice, new technologies are often used on small, shorthaul ferries first. Once it has been established that the technologies work properly, they are then scaled up to larger vessels, such as ropax and cruise ferries,” Albrecht said. By contrast, many cruise ships move from one part of the world to another, which makes such monitoring and gathering of information more difficult. Quite often, they are also much bigger than ferries, which means that the new technologies will have to be mature enough to be scaled up to the required level, which does take time, he concluded. The maritime industry, together with the wider world, is facing major challenges in its efforts to become greener. However, when challenges arise, opportunities can arise too—as they force people to think outside the box. In this respect, the ferry sector will continue be a very important and exciting sector of the passenger shipping sphere for years to come.n Finnlines will introduce new ships on its Finland-Sweden service with an improved passenger comfort CRUISEBUSINESS.COM MAGAZINE WINTER 2020 51 46-53 .indd 7 3.2.2020 10.21
in 2013, Niels Smedegaard, the company’s then CEO, said that on some vessels – the company operates more than 50 vessels comprising cruise ferries, ropax and pure freight ferries there quite simply was not enough space in the required area to fit them. On some others, stability posed a problem, and these vessels could not have an installation fitted onboard either. However, the passenger shipping industry is stepping up its efforts to become greener, largely as a response to expectations of its customers. This is most obvious now in the field of emissions to the air, said Anssi Makela, Senior Manager of Sales & Technology and Marine Emission Control at Valmet, the Finnish engineering group that has long been involved in the maritime sector. Quite often, technologies used at sea have been either tested or used in land-based installations, and this is certainly the case with scrubbers. “Technology to remove sulphur from emissions to the air has been employed on 52 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 W hen DFDS, the Copenhagen-based ferry company, started to retrofit scrubbers onboard its vessels prior to the introduction of the Sulphur Emission Control Area (SECA) in the Baltic and the North Sea from the start of 2015, it soon became clear that the task had its challenges. Speaking TECHNOLOGY SCRUBBER RETROFITS PRESENT OPPORTUNITY AND CHALLENGE New regulations intended to reduce emissions to the air from ships have proven to be technically challenging, but the benefits of installing scrubber technology present new opportunities for improving profitability. By Kari Reinikainen Anssi Makela 46-53 .indd 8 3.2.2020 10.21
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 53 Valmet is a global supplier of automation and SOx scrubber technologies for the marine industry. Our Valmet DNA automation system provides maximum performance for your control and monitoring needs. With our innovative hybrid scrubber system you can ensure cost-e cient and exible compliance with increasingly stringent environmental regulation. More than 40 years of marine innovation has taught us how to help you in navigating your business forward. valmet.com/marine Moving automation, energy management and sustainability solutions forward land-based installations since the early 1970s, and the rules on land regarding particle emissions are much tighter than at sea,” he said. Scrubbers cut out most emissions, but they do not eliminate the micro particles that have been blamed for melting glaciers. Yet with new International Maritime Organization (IMO) rules regarding emissions to the air going into effect from the beginning of 2020, the demand for scrubbers has been strong. New queries about potential installations onboard passenger ships continue to come in, even after the deadline for the rules to take effect has passed. Fuel cost a factor Scrubbers allow the use of much cheaper heavy fuel oil (HFO); without them, a vessel must use higher-grade fuels that command a significant premium in price over HFO. On January 6, IFO380 marine HFO cost $296 per metric ton in Rotterdam, while the price for Very Low Sulphur Fuel Oil (VLSFO) was $593 per ton, so to run a vessel on a lower sulphur content fuel incurs twice the fuel bill over the use of scrubbers. Both the prices and the premium of VLSFO vary from one location to another, according to information on ShipandBunker. com Valmet has recently retrofitted scrubbers onboard Dream Cruises’ World Dream and Genting Dream, both large and modern vessels delivered in 2017 and 2016, respectively. The work was initiated while both ships were in service, which meant that welding work had to be done while the ships were in port, as regulations forbid such work while at sea. New silencers and the scrubbers had to be installed, which was a complicated project due to limited space available at the funnel casing. Makela said that Genting Hong Kong, which owns Dream Cruises, had discussed including scrubbers when the ships were ordered at Germany’s Meyer Werft. The company ultimately decided against installing the equipment at the time of construction, but space was reserved in order to install the scrubbers at a later date. When the ships were on the drawing board, there was speculation that the entry into force of the IMO rules regarding emissions could be delayed from the planned date of January 1, 2020, which could have affected the owner’s decision making. In the end, the date held, and it became necessary to carry out a retrofit. Older ships benefit most Valmet’s involvement with marine scrubber technology started in 2006, as a result of co-operation with the Finnish technology group Wartsila. But even before that, since the middle of 1990s, Valmet (under brand name Metso) had delivered scrubber systems for cutting the sulphur emissions of Wartsila´s land-based diesel power plants. Over the years, Valmet moved on to launch its own product line that subsequently has been installed onboard the Edge-class ships of Celebrity Cruises, several vessels of TUI Cruises and the latest Quantum-class ships of Royal Caribbean International. The retrofit business, meanwhile, includes not only large and modern ships. In fact, scrubber equipment has been installed onboard ships more than 20 years old. “Older ships have higher fuel consumption, because they have less sophisticated engines than modern ships. Therefore, the installation of scrubbers will have an even bigger effect in fuel cost saving on the older ships,” Makela pointed out. The scrubber control and monitoring functions are implemented to Valmet’s own automation system platform, the Valmet DNA. This offers full redundancy and allows integrated automation management of both tracking and reporting. User interface displays can be installed in the engine room and the engine casing near the scrubber towers. Reporting for regulatory purposes is available from the control system, with both exhaust gas and discharge water being continuously monitored to ensure compliance with the respective regulations, the company said. n 46-53 .indd 9 3.2.2020 10.21
54 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 TECHNOLOGY Having suffered the consequences of the abysmal collapse of the offshore industry, Norway’s maritime industry quickly refocused and switched its attention to the booming cruise and ferry sector. In the process, it finds itself confronted by unprecedented and time-restricted zero-emission challenges that require strategic thinking, fast innovation, a global approach and a changing emphasis. By Alan Lam NORWAY RACES TOWARD ZERO EMISSIONS Captain Kai Albrigtsen showing the bridge of Roald Amundsen Lindblad Expeditions will be the second operator after SunStone to offer Ulstein’s X-bow design 54-57.indd 2 4.2.2020 11.19
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 55 ? I n recent years, Norway’s so-called maritime clusters have become major centers of innovation and cooperation, with passenger shipping replacing the offshore business as the biggest segment of its core activity areas. Having evolved from primarily fishing-industry-related undertakings to offshore services before arriving at the current passenger-shipping platform, the industry has also arrived at the age of technological revolution, constantly advancing environmental regulations and mounting global competition. Above all, it now also faces the challenges of meeting increasingly intricate passenger-centered demands. But before all else, it must find a balanced solution by 2026 to the pressing issue of zero emissions and zero discharge from passenger vessels in two of the country’s most iconic destinations. In the wake of the tattered offshore business, Norway’s maritime industry needed to reinvent itself quickly. The country’s progressive implementation of ever-stricter environmental regulations and the booming cruise industry presented fresh opportunities, which it embraced wholeheartedly. Immediately, it started the process of strategic thinking and reorganizing. “We saw pretty early on that we couldn’t focus only on the offshore industry,” said Per Erik Dalen, Head of GCE Blue Maritime Cluster. “Sooner or later, we would need to start building other types of vessels. Right now one of our biggest focuses is on the cruise and ferry [sector].” To do this effectively in the globalized marketplace, first and foremost the industry in Norway needs to have a harmonized approach. Apart from competing with one another, all the players must share a common vision for the greater good of their collective maritime future. “We compete, but we also cooperate,” said Dalen. “There is a need for cooperation among the competitors, even if they do not like each other. We compete for contracts on one hand; on the other, we also need each other. This was a culture already established in the fishing industry of bygone days. At sea, the fishermen competed with one another and at the same time depended on each other for safety.” This is still the basic operating principle of the Norwegian maritime clusters. By bringing all the competitors under one roof, such as the ones located in the Norwegian Maritime Competence Center in Sunnmøre, this interdependence is better expressed and further enforced. “We now have this eco-system,” continued Dalen. “We try to bring more entrepreneurship into this region. We need investors and work with such institutions as MIT in the United States in an effort to find ways of attracting more entrepreneurs to this region quickly.” This is important, as the cluster is not yet whole, especially in regard to the new focus on cruise and ferry. “We are nearly a complete value chain within the offshore segment. One thing about cruise is that we still need to bring in players to complete the value chain. The cluster is moving up a gear and the [focus on] cruise is the reason.” With new players moving in all the time, GCE Blue Maritime Cluster is already a nearly complete campus. It has about 140 members comprising some of the best names in the industry, such as ABB, VARD, Kongsberg and Inmarsat. The center has a global reach, which would serve its purpose well, particularly in the cruise market. “We have one home base here, but we have research centers all over the world. We think globally,” said Dalen. But acting quickly and achieving fast results are of paramount importance at present. Fast innovation Having shifted its focus to the passenger market, the maritime cluster based in Sunnmøre soon found itself facing a major challenge. In 2018, the Norwegian parliament decreed that by 2026 the country’s two cruise tourism magnets – the UNESCO-protected Geiranger and Nærøy fjords – should be free from emissions and discharges of grey and black water from passenger ships. This was perhaps the biggest challenge the government had laid 54-57.indd 3 4.2.2020 11.19
down for the country’s maritime sector, and all components of the industry have responded quickly. More importantly, although there are some lingering doubts, by and large the sector believes this is an achievable target. “When the companies responded, things could happen very quickly,” said Svein Ove Farstad, General Manager, Sales and Marketing, Norwegian Electric System. “If someone had said to me five years ago we would have electric ferries in operation today, I would not have believed it. But it is the reality now.” The philosophy of “quick innovation” was soon adopted and made into a guiding principle for the cluster. “The strategic emphasis is on the innovation speed, especially in regard to business models and value chains,” said Dalen. “We need new knowledge inputs. One of the reasons for the global cluster is to bring in technologies quickly. We will see big changes in the coming years. Things can go much faster when you have to. The Norwegian government is really pushing the industry in this direction. We’ll have a parliamentary election in two years’ time. I think there will be a push to include all fjords in the fossil-fuel ban. There is also a global trend in becoming green. So we have to find a way quickly. The cluster is moving more and more toward cruise. Zero emission is the project for the future. The question is: How will this be affordable and how quickly can this be achieved? I don’t yet have the answer. My view is that we have been too slow to enter the discussion. ‘There is time’ was always the response. But this time there will be no time. A solution must be found.” Accessible attractions Although there is debate in Norway on the subject of whether or not cruise is right for a country that is so environmentally conscious, by and large there is a consensus in society that all the attractions must remain accessible to visitors. “People from all over the world want to see the fjords,” said Dalen. “The fjords are something very special. We need to keep them open to the world. This year and the next we will have discussions on finding a solution to this.” For Dalen, this is also a personal issue. “As a Norwegian, other countries around the world do not deny me from visiting their attractions,” he told CruiseBusiness.com Magazine. “So I do not think it is right for us to prevent their people from visiting ours.” This issue requires very inclusive discussions, as it affects the local communities and other interested parties. “We need to change [in order] to preserve,” said Rita Berstad Maraak, Port Director, Stranda Port Authority. “We need to create a right balance between environmental protection and economic and cultural development. Zero emission means zero cruise ships and zero income for us. We also need to cope with increasingly demanding environmental regulations.” The regulatory environment has already become a major obstacle to Norway’s cruise business. “We need development for this region,” continued Maraak. “We started this process in 2013. Because the government introduced so many restrictions, we have been unable to do anything. This year, we already have 20 cancellations because of the Tier One regulation coming into force.” Evidently, the regulatory environment has already done damage to Norway’s cruise industry, which the stakeholders are keen to repair. “There have been cruise activities in this region since 1889,” continued Maraak. “We think a professional company should be established with transparency in mind and a clear objective of protecting local values.” Hydrogen solution For the moment, at least, a giant leap in technological innovation is the only viable solution to the 2026 deadline – a leap that will make even advanced LNGpropulsion technology look antiquated. Battery, fuel cell and hydrogen technologies are all under intense scrutiny by various research and development departments. Among these choices, hydrogen technology receives the most attention, and it seems to be the government’s preferred option. In the ferry sector, full-electric zeroemission vessels are now a reality. But they cannot go long distances and operationally they are still restricted by the absence of infrastructure. So hybrid propulsion is still relied upon for longer crossings. This is still a long way from zero emissions. For big cruise ship operations, especially, it is unlikely that 100% battery propulsion will ever become a practical reality. From the global perspective, this is even less likely. “I cannot see batteries as a solution for bigger ships, because we need too much landside infrastructure for that,” said Farstad. “I think the future for propulsion of bigger ships is a combination of batteries and hydrogen technology.” Therefore, the industry would need a hydrogen-technology-based solution if the likes of the Norwegian fjords are to remain sustainably accessible to greater volumes of visitors in the future. Unsurprisingly, members of Sunnmøre’s maritime cluster are among the frontrunners in this field, but they are still far away from an operational solution. Despite adopting the “fast innovation” approach, 2026 is still too short a time scale for finding a dependable hydrogen-propulsion solution for cruise ships. “Even the government realizes that it will not be possible to have hydrogenpowered ships by then,” said Dalen. “If you look at the orderbook, you will see no hydrogen-powered cruise ships being built. It is all about LNG at the moment. That is something the politicians in Norway didn’t see. They only see hydrogen as the solution. Just to run the hotel on a big cruise ship, you’ll need eight megawatts of power. That’s enough power for a whole community in Norway. So it will take time to develop hydrogen technology for powering big ships.” But the government is also very supportive of the maritime industry’s efforts. “A lot of support is coming from Enova on the hydrogen scheme,” said Farstad. “We are also working with a company in Japan on this. We need to build hydrogen infrastructure as well. The government in Norway is very ambitious. It wants to develop the technology and export it. We need to approach the market in a different way. We have been very focused on a single product. From now on, we’ll need to be an integrated player and become a supplier of the whole package. Right now, the battery is the best available technology. But we know that hydrogen propulsion will come next, so we need to be prepared for that. We need to develop something better if we are to go the distance.” Going down the path of hydrogen creates additional challenges for the maritime cluster. Producing and transporting hydrogen require other forms of energy, which, in the process, have the potential of increasing environmental footprints, thus defeating the purpose. Norway has two ways of producing hydrogen: using compressed gas or hydro energy. “We have to find a way of generating hydrogen sustainably; otherwise, it is not a solution at all,” said Dalen. There is also the financial burden to consider. All these technological develop56 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 Geiranger is one of the most popular destinations in Norway 54-57.indd 4 4.2.2020 11.19
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 57 ments come at a cost. “In order to build a fleet of zero-emission vessels, we need substantial investments and collaboration with local communities. I believe we will be totally relied on the government for funding,” said Maraak. “The other main thing is how to do this sustainably. Costs will eventually be reflected by passenger ticket prices,” said Dalen. Depending on the state for funding has certain merits, because this will give the government a financial stake in the process, and – more importantly – a better perspective on the extent of the challenges. No one doubts the ability of the maritime cluster to come up with a right solution. The timeline is the only uncertainty. Changing focus On top of all these considerations, by switching its emphasis to passenger shipping, Norway’s maritime industry also finds itself changing focus in another key area. “The old focus was on fishery and offshore; the new is on cruise,” said Bernt Ove Sunde, Commercial Product Manager – SeaQ Control, Vard Electro AS. “The old focus was on ship operations; the new one requires passenger focus.” As a consequence of this change, a whole host of passenger-interface technologies and products have been developed. Sunnmøre’s maritime cluster now includes many suppliers and developers of passenger-centered products. Among them are Vard Electro, the maker of SeaQ Smart Cabin, the multi-award-winning Fora Form, a supplier of deck and cabin furniture and many more. Companies like Saint-Gobain, which offers weightsensitive insulation products and energysaving glass, are extremely proactive in approaching the passenger segment of the shipping industry. As smaller and expedition cruise ships are the main focus of Norway’s ship design and construction industry, passenger comfort has become central to its passenger interfacing products. In this respect, Norway’s maritime industry seems to have made the most tangible progress, although there is still room for improvement. “The cabins on [Roald] Amundsen are wonderful; they are a giant leap for Hurtigruten in the cruise direction,” said Christine Kahrs, Export Manager, Fora Form. “But the interiors of cruise ships still have some ways to go compared with those of land-based hotels.” Beyond providing improved passenger comfort, Norway’s maritime industry is being forced to widen its focus geographically, too. All of a sudden, it finds itself in the position of having to map formerly uncharted ocean floors. “Cruise passengers are becoming more demanding,” said Roger Trinterud, Senior Sales Manager, Passenger Vessels, Kongsberg Maritime. “They want new things, new experiences. They want to go to places where most cruise ships don’t go. The response from the industry is to build smaller vessels. To do that, you need more technologies. Today, only 10% of the ocean floor is properly mapped. Most places these vessels go to are without sea charts. So we develop sonar systems that produce 3D image models to help navigate narrow channels.” Low-emission vessels In the meantime, Norway’s maritime sector is producing a number of vessels that are not quite zero emission, but are fuelefficient, low-emission, hybrid passenger ships. In August 2019, Ulstein Verft delivered the world’s largest hybrid cruise ferry, the Color Hybrid, for the Sandefjord-Strømstad service. Only one more step is needed from this ship to zero emissions. This will require a giant leap, but progress is being made every day. “If you come back this time next year, you will see many more changes,” said Dalen. Indeed Norway’s maritime industry is moving fast in the direction of zero emissions. More than ten low-emission, hybrid expedition vessels are on order in Norway’s shipyards today. They are being built for major cruise brands like Lindblad, Ponant, Hapag-Lloyd, Hurtigruten and Viking. “The reason we chose Ulstein to build our ship is because we wanted something that would be comfortable for our guests” said Reed Ameel, New Build Site Manager, Lindblad Expeditions. “We do not need to cancel our voyage because of bad weather. We are intrigued by the X-Bow concept, something you do not see anywhere else. The X-Bow ship is easier to navigate. It has better visibility. It is designed to navigate the polar passages. We can go to any area with this vessel. We can go earlier in the season, penetrating further and stay longer. I don’t think there is any other ship that can do this at the moment.” There is no doubt that Sunnmøre’s maritime cluster is the global leader in this field, and the next giant leap will occur here. This will not surprise anyone, nor will it be the first time. At one time, about 70% of all advanced sea-going vessels around the world were either designed or built in Sunnmøre. “One of our strengths is innovation. Every year, you will see something new,” said Dalen. “It is a Norwegian strategy to focus on the sea and to strive toward the zero-emission goal.” To this, Sunde added: “Only your imagination is the limit. We can do basically anything,” n ALWAYS TO BE TRUSTED We take pride in the relations we build with our customers, and we take pride in the products we deliver. This gives us the con?dence to state that we are always to be trusted. www.jetsgroup.com Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway – Tel.: +47 70 03 91 00 – E-mail: post@jets.no Hapag-Lloyd has trusted Vard to build its new expedition ships 54-57.indd 5 4.2.2020 11.19
58 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 COMPANY UPDATE VIKING ENTERS EXPEDITION SEGMENT Viking revealed its long-awaited entry into expedition voyages in an exclusive event in Los Angeles in January. With two-purpose built newbuilds, the company aims to start sailing in 2022 to Antarctica, the Great Lakes in North America and the Arctic. In addition, Viking has dropped the word “Cruises” from its name and the website is now just www.viking.com. By Teijo Niemelä 58-61 .indd 2 6.2.2020 14.11
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 59 ? M oving into expedition voyages is a logical step for Viking. Started first as a river cruise line in 1997 and expanded to include ocean cruises in 2015, Viking can benefit from its loyal and affluent customer base. The expedition market is growing rapidly and attracting new operators from up-market companies such as Crystal Cruises, Scenic and Seabourn Cruise Line, just to name a few. Meanwhile, established players such as Hapag-Lloyd Cruises, Ponant and SunStone Ships are replenishing their fleets with new tonnage. Viking has contracted two newbuilds from the Norwegian shipbuilding group Vard, which is part of Fincantieri. Fincantieri has already been a major partner for Viking by constructing its ocean vessels. The new expedition ships are to be named the Viking Octantis and Viking Polaris; the hulls of the ships will be constructed in Romania, and then towed to Norway for final outfitting. Vard has already delivered new expedition ships for both Hapag-Lloyd and Ponant. The Viking Octantis and Viking Polaris will feature many amenities similar to their larger oceangoing counterparts. They will be designed by Rottet Studio from Los Angeles and SMC Design from London – both of which were involved in designing the ocean ships. The Octantis and Polaris will feature straight bows, longer hulls and fin stabilizers, with Polar Class 6 ice-strengthened hulls. Unlike the ocean ships, the expedition newbuilds will be fitted with Azipods – a first for Viking – for better maneuverability. Utank stabilizers will significantly decrease rolling by up to 50% when the ships are stationary. The long and narrow hulls will be designed with the limitations of the St. Lawrence River in mind. With a length of 665 feet and a beam of 77 feet, the ships will register 30,150 gross tons and carry 378 guests. Their homeport will be Longyearbyen in Norway. With these dimenViking’s expedition ships will have long, sleek hulls optimized to sail in the Great Lakes 58-61 .indd 3 6.2.2020 14.11
60 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 Color Hybrid is fitted with battery packs sions, Viking new builds are larger compared the competition is building. Instead of LNG as originally planned, these ships will use Marine Fuel Oil. Scandinavian design The Viking Octantis and Polaris will feature modern Scandinavian design with many of the signature facilities found on Viking’s ocean ships, but also will offer new features not found aboard other vessels in the expedition segment. Passenger facilities will be spread over seven decks. Cabins will be located forward on Deck 2 and almost the full length of Decks 3 and 4. There will be an Owner’s Suite and four Explorer Suites on Deck 6. These top categories will be the only ones to feature traditional balconies. All other accommodations, which will measure between 222 and 322 square feet, will be fitted with what Viking is calling “Nordic Balconies” – a sunroom that can be converted into an al-fresco viewing platform by lowering the top of the floorto-ceiling window, transforming the cabin into a “sheltered lookout.” This innovation is similar to a design found aboard Celebrity Cruises’ Edge-class ships. The Hangar will be the industry’s first enclosed in-ship marina, permitting the launch of small excursion craft through multiple shell doors. The Hangar’s most innovative feature will be an 85-foot slipway that allows guests to embark on RIBs (rigid inflatable boats) from a flat, stable surface inside the ship. There will also be a FerryBox, a set of instruments continuously collecting and displaying data on water quality, oxygen content, plankton composition and more. Viking expedition ships will offer a variety of ways for guests to experience their destination at no extra charge. Complimentary equipment will include a fleet of military pro Zodiacs, a fleet of two-seater Arctictested kayaks and two 12-seater convertible RIBs. Each ship will carry two six-guest submarines appointed with revolving seats and 270-degree spherical windows. Viking plans to provide each guest with a Viking Expedition Kit that will contain boots, binoculars and waterproof pants. However, Viking opted out from having a helicopter onboard, as they would be disruptive for the environment. Another innovative space aboard the ships will be The Aula & Fince Terrace. The Aula is a stunning panoramic auditorium located at the stern with floor-to-ceiling windows and 270-degree views, which will be able to seat half the ship’s guests at one time for lectures and entertainment. Adjacent to The Aula through sliding glass walls will be the Finse Terrace, an outdoor lounge area fitted with couches and warming lava-rock “firepits.” Meanwhile, The Laboratory, being developed in consultation with Cambridge University and Viking’s other academic partners, will be a working research station for a team of Viking Resident Scientists. Dining choices will be modeled after the offerings found onboard the company’s ocean ships. The Restaurant (the main dining room) and Manfredi’s will share an almost equal footprint on Deck 2 amidships. The casual, self-serve World Cafe on Deck 5 will offer a new market concept featuring an open kitchen, bakery and grill. Mamsen’s, serving Scandinavian-inspired fare, will be another venue familiar from the ocean ships. Antarctic voyages starting January 2022 The Viking Octantis is scheduled to sail its first cruises to Antarctica in January 2022. The Hangar’s most innovative feature will be an 85-foot slipway that allows guests to embark on RIBs inside the ship (below) Explorers’ Lounge will span two decks 58-61 .indd 4 6.2.2020 14.11
A 13-day Buenos Aires to Ushuaia (or reverse) itinerary will be offered during January and February as well as in November and December, plus January and February 2023. Inaugural fares start at $14,995 per person. After its inaugural Antarctic season, the Viking Octantis will be re-deployed to the Great Lakes. Its embarkation and disembarkation ports there will include Thunder Bay (Ontario), Milwaukee and Toronto. Inaugural pricing on the Great Lakes starts at $5,995 per person. When the second ship – the Viking Polaris – arrives, the company will introduce a new Arctic program. The Arctic Adventure, a 13-day roundtrip itinerary from Tromsø, will center on Norway’s Svalbard archipelago. Multiple sailing dates will be available in August and September 2022. Inaugural pricing starts at $13,395 per person. Expansion to other areas With the January announcement, Viking continues to increase its presence in the travel industry. In the last eight years alone, the company has introduced more than 60 new river cruise ships and six ocean cruise ships to become the industry’s largest smallship cruise line, with a current fleet of 79 river and ocean vessels operating around the world. In 2020, Viking will launch seven new river ships. Six more ocean sister ships are on order, with options for four additional units. These could bring Viking’s total ocean fleet to 16 ships by 2027. “We invented the concept of modern river cruising when we launched in 1997; then we reinvented ocean cruises and became the ‘World’s Best Ocean Cruise Line’ in our first year of operation, as well as every year since then. Now, in creating ‘the thinking person’s expedition,’ we are perfecting polar expedition cruising, and we will usher in a new era of comfortable exploration in the heart of North America,” said Torstein Hagen, Chairman of Viking. “Our guests are curious explorers. They want to continue traveling with us to familiar and iconic destinations, but they would also like to travel further. We began as Viking River Cruises; then we evolved into Viking Cruises with the addition of ocean cruises. Today we stand singularly as Viking, offering destination-focused voyages on more than 20 rivers and five oceans, visiting more than 500 ports in 100 countries and on all seven continents,” Hagen said. n CRUISEBUSINESS.COM MAGAZINE WINTER 2020 61 Viking newbuilds are large enough to have space for the Nordic Spa, including a thalassotherapy pool Cabin with the Nordic Balcony The Aula & Fince Terrace (below). The Aula is a stunning panoramic auditorium located at the stern with floor-to-ceiling windows and 270-degree views 58-61 .indd 5 6.2.2020 14.11
62 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 I t was a fitting beginning to four days of networking, B2B meetings and conference sessions with topics ranging from trends to challenges in the Mediterranean. Once again, MedCruise brought together representatives from cruise lines, member ports and a host of other suppliers who, on many occasions, talked about the need to work together. Over the years, there has been a subtle change from “us and them” to “together,” which in an industry not always given good or fair press is increasingly important. MEDCRUISE STRESSES WORKING TOGETHER The 55th MedCruise general assembly, hosted by MedCruise French Riviera Ports, was held in Juanles-Pins in France in October. From its inception in 1996, the organization’s membership has grown from 12 to 72 plus 30 associates this year. “The goal and the success of the association is about working together,” stated Airam Diaz Pastor, President of MedCruise, at the opening session. By Susan Parker Costa Smeralda is the second cruise ship to use LNG as its fuel. Pictured in Barcelona 62-66 .indd 2 3.2.2020 11.05
With the forecast for 2019 being 30 million passengers and around 30,000 calls in a region of rich culture and history – but its own set of geopolitical challenges (particularly in the Eastern Med, although there are now signs of growth, see CruiseBusiness.com Magazine summer 2019) – this ethos is not only vital but practical too. This is not a business where individuals can excel. An itinerary needs a number of ports to succeed. Within those ports are suppliers – from shore excursion operators to stevedores to food suppliers – all involved in ensuring, along with the cruise lines, that passengers have a good time. With the orderbook consisting of about 125 newbuildings, representing an increase of 65% in market capacity, and a number of significant regulations coming into force (2020 sulphur cap/2030 CO2 emissions/2050 GHG emissions), President Diaz commented, “We need to be ready for 2030. Twenty-twenty has come suddenly. There are 26 LNG [liquefied natural gas]-powered newbuildings coming, some to the Med. MedCruise is trying to help cruise lines in the challenges we are facing together. We are upgrading our LNG map,” he said, to show ports that can supply LNG. In the first session, Bud Darr, Executive Vice President, Maritime Policy and Government Affairs, MSC Cruises, which has 11 out of its 16 ships operating in the Med, two of these being year-round, said, “We are very optimistic [about the Med] not just for today but for the future. If there is one thought, it is to really work through the challenges. We have to work together to be successful.” Part of this working together, which is increasingly being discussed, is getting the message out to the wider public about what the industry is doing in terms of sustainability. Darr continued: “Cruise lines are making massive investment in new technologies. We need to get the message out there. In Venice we [the cruise industry] bring two million out of 30 million visitors [each year]. Under-managed is our problem, not over-tourism. We need to work together. We cannot let up. It is not a problem that will go away, and it is not unique to cruise tourism. We need to have facilities that match our new hardware.” View of the ports Eric Barrat, Director, Port of Cannes, spoke for many a port when he said, “There is a local pressure. The municipality wants to be involved with what is happening. We are trying to work with the cruise lines on an agreement, in partnership with the city, to make some practices and also highlight what the cruise industry does. What we read in the media is that there is a huge gap between perception and the reality of the community.” Richard Vogel, President and CEO PullCRUISEBUSINESS.COM MAGAZINE WINTER 2020 63 ? 62-66 .indd 3 3.2.2020 11.05
64 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 mantur, added, “I personally believe that the dialogue with the destinations is the major key to solution [of congestion]. It is not only what do we agree and negotiate with the ports, but it is also the people who live there. We may have green ships but what about green buses?” On this particular subject, Livorno is addressing the issue, as Giovanni Spadoni, Technical & Commercial Director, Porto di Livorno 2000, explained, “There is a certain education by the people in Livorno about the environmental problems not only for the ships polluting but also for the bus traffic [shuttle service and excursions] that come into the center of town. In Livorno, the ancient Medici port, located at walking distance from downtown, hosts the smaller cruise ships up to 250 meters long, mainly luxury, and for their passengers the shuttle bus is not necessary. For the bigger ships, the berths are far from downtown and we provide shuttle buses to the center. There is a strong demand from the stakeholders to have the passengers in the heart of the city so that the community can take advantage from the cruise tourism. On certain peak days, there are really many buses because every ship has its shuttle. Three big ships means about 25 buses all day long [but also tour buses],” he said. “We are committed to supply the most environment-friendly buses [Euro 5 and Euro 6 type], but they, mainly in summer, cannot cut the engine from running while disembarking and embarking passengers at the bus stop. The best thing we can do is to improve the quality of the buses. We already have LNG buses. LNG bus state of the art does not allow us to say they are the solution and the development of hybrid or fully-electrical buses has not yet reached the good level necessary to start their industrial production. The problem and perception do not always match up. Communication is very important. We have to stress to the citizens that the cruise ships are the cleanest possible ship. Cargo ships are polluting much more.” When it comes to passenger taxes, Pullmantur’s Vogel said, “I am happy to pay every day € 5 when I know that it is going to good stuff! As long as we have the geopolitical situation and the amount of newbuilds coming, we must face these issues in the future in every major port. One hundred percent, we need to provide ourselves, the ports, the people living there, that we are a friendly, not unfriendly, contribution to their business.” He cited the example of Palma, where cruise passengers may only represent 2% of visitors as a whole but “on a cruise day it is not just two percent.” Speaking for small ship company, Ponant, Americas Brand Chairwoman and Corporate Special Advisor Edie Rodriguez, concurred. “We all have to do a better job to communicate about cruise, involving local citizens in tours. We all have to work out how to communicate that we are not contributing to overtourism.” On the subject of over-tourism, the philosophy in Villefranche is to limit passenger numbers to 5,000 (two ships) on the same day to ensure the city is not overcrowded and the guest experience is not negatively affected. Anne-Sophie Peyran, Marketing Manager Group CCI, Nice Cote d’Azur, said, “Citizens are saying that cruise ships pollute. We need to have a dialogue with them. The idea is that when a ship is free [available], we will invite the citizens for an excursion onboard, to visit the captain, the galleys, the environmental approach, etc. They will pay for it. I think it could be a smart idea – a reverse excursion – and could also be a way of promoting the business. Cruise lines say it is a great idea. They are happy to listen but when we ask for specifics, it seems that it will take a long time to happen.” Representing larger ship brands, Michel Nestour, Vice President, Global Port and Destination Development EuroMed, Carnival Corp & plc, noted, “Each destination is unique. Each resident has a unique idea of what can be contributed. We need to continuously talk to residents. Cruise is only half of tourism. Ports and destinations still want the business.” In this respect MedCruise is actively involved in doing its part. “MedCruise ports are investing a lot,” said the MedCruise president. “Touristphobia, we don’t need to do a blacklist [of ports] but to work together.” To provide LNG or not? One topic high on the agenda at almost every cruise industry gathering these days is whether or not to provide shore power and/or LNG. According to MSC’s Darr, “MSC has invested $5 billion € 4.5 billion] in our LNG ships. It is the best choice available now. Carnival is blazing the trail to get the LNG in place. Getting the fuel to the ships is the hard part. Not all ports Edie Rodriguez, Michel Nestour and Richard Vogel Neil Duncan Edie Rodriguez Airam Diaz Pastor 62-66 .indd 4 3.2.2020 11.05
CRUISEBUSINESS.COM MAGAZINE WINTER 2020 65 ? need to provide LNG.” Pastor once again showed that MedCruise is doing all it can to keep abreast of developments: “We want to adapt our infrastructure to your needs; for example, LNG.” The shore power debate has been on and off the table for more than a decade, making it confusing for ports as to whether or not to invest. It was refreshing to hear Darr ask, “What is the source? If it is not greener than what we are using on the ship, then it doesn’t work. Also is there enough power on the grid?” In total there are only 16 ports worldwide with shore power installed, and each of these can only fuel one ship at a time. The fact that there is now an international technical standard is helpful. Darr advised those considering installation: “Make sure you are building a facility that complies.” Livorno’s Spadoni said, “I think politicians will make cold-ironing mandatory. The electricity power tariff is expensive. I think it is important to lobby the EU on this one.” Tom Boardley, Secretary General, Cruise Lines International Association Europe, said, “Politically it will come but it will not be just for cruise ships. I think, in Barcelona, cruise ships only contribute two to three percent to emissions. It is a complicated issue. In Germany, discussion [is taking place] about tariffs being adapted, so shore power can be delivered in Hamburg.” Working together is also paramount in shore excursions. Vogel put in a plea for later hours so that Pullmantur passengers “don’t have to get up earlier on holiday than when going to work.” For example, ports should make sure that museums are open for tours arriving later in the day. When it comes to the luxury market, Zelika Cimic, Production Development Manager, Ocean Cruising, Scenic, said, “The destination is playing a very, very important role in luxury. I think worldwide the Med is one of the best for luxury because of the number of ports, it is not so weather-dependable, and there is very good product.” While Justin Poulsen, Vice President, Strategic Pricing & Itinerary Planning, Silversea Cruises, said, “We rely on destinations to help us in bringing elements of the destination onboard; for example, prior to arrival having local cuisine on board.” Ponant’s Rodriguez asked for ports and destinations to give future notice of festivals and events so that itineraries can be created around them. “We all need to plan overnights more and more,” she observed. At Star Clippers, Captain Aleksander Bieniek, Vice President, Marine Operations, asked for passengers to be shown “what is very real,” which could be as simple as a historical gas station in Italy. “Tell us what we don’t know,” he implored. Discussing new port possibilities, Neil Duncan, Head of Trading & Planning, Marella Cruises, explained, “We look for two to three new ports in our winter and summer season. If we don’t do that we will lose repeaters.” Silja Eisbein, Itinerary Manager, TUI Cruises, added, “It is really hard to find something new in the Med.” A more unusual request came from Vassilios Gazikas, Marine Operation Director, Celestyal Cruises: “Please build new ports far away from the city so they [the community] don’t blame the cruise lines for over-tourism.” And finally, Silversea’s Poulsen noted that when a cruise line helps to open up a new port it is a little disappointing if they no longer get priority berthing. “It is a big role for us to promote and introduce new ports, which serve to disperse tourism,” he said. Untapped potential While the East Med was featured in the spring issue of CBM, it must be noted here that an improved geopolitical situation in the region will help to take pressure off ports in the Western Med. “The East Med and North Africa are definitely telling cruise lines more about what is there,” said Marella’s Duncan. “For Marella Cruises, being an almost 100% UK and Ireland product, that part of the world is so interesting to our customers. I think there is still a lot of untapped potential in that region. Some of the itineraries there are becoming our most popular again – the Adriatic, etc. Confidence is slowly returning.” Working together is also relevant for the improved relationship between CLIA Europe and MedCruise and Cruise Europe. “It is good to come together; for example, to go to regulators in the EU,” said Pastor. CLIA Europe’s Boardley agreed. “The cruise industry is used as poster child for maritime issues,” he said, “Because it is so photogenic, and it has a high profile. It is often too late for the facts because they already have the story. Ports are asking for more bullets with which to shoot back. Often, it is the port community which is the best voice for the opposition. Our role is to protect the freedom for cruise lines to operate in. The cruise industry has a very good story. We have to be careful how we tell it. The ports are giving the message to the community that it is not damaging to the community.” Investment is another area where working together comes up. MedCruise President Pastor asked, “If a port invests € 20 million in a pier, when will it get a return on investment? A vessel can leave at any time. We need to have some commitment from cruise lines. I think we need to work together on commitment, investment, etc.” TARRAGONA – This year there are 66 calls and 130,000 passengers to the Spanish port. Ships up to 140 meters in length can call the marina while the larger ones, such as those from Costa Cruises on turnarounds, call the Levante breakwater berth. In order to grow, better infrastructure is planned for completion between May and September 2021, and €30 million is to be invested by the port in a wharf with a tent alongside initially, with the ability to accommodate all ships. There is no problem with over-tourism at this UNESCO World Heritage Site. LIVORNO – The privatization of Porto di Livorno has been complete since May. Now, 66% of the shares are in the hands of a private joint venture between Moby Lines and MSC Cruises (75% and 25%, respectively). The remaining 34% is held by the port authority network and the chamber of commerce. While there is now a new president and board, the remaining staff remains unchanged. Despite its investment, MSC (which made 30 calls with the MSC Fantasia this year including partial turnarounds) has no priority booking. There were 370 calls in 2019, bringing 820,000 passengers to the Italian port. Next year’s call numbers remain the same, but passenger numbers increase to 900,000. The port plan is to have four berths for megaships in the next five years and a new terminal for turnarounds for an investment of € 90 million. At present three ships can be accommodated in one day using the commercial piers. TOULON – This year there were 85 calls, of which 95% were transit and 5% turnaround, bringing 170,000 passengers. The main challenge for this French port is that it is not a marquee destination and potential passengers are not so aware of the city. The key is to make a big effort on B2C marketing, not just from the port but from the whole Toulon community, which is in favor of cruise ships. The port is keen to attract mass market ships, having the capacity to accommodate more visitors. Delphine Beudin, Cruise Development Manager Marketing and Promotion Department, Ports of Toulon Bay, CCI Var, said, “Each destination has to find its own balance, but I think we can have more visitors in Toulon before we find that balance.” ZADAR – Zadar in Croatia has grown very quickly, from 50,000 passengers five years ago to 160,000 in 2018. Last year, Global Port Holdings was granted the concession for 20 years. A € 26 million passenger terminal at the new port of Zadar in Gazenica was officially opened Vassilos Gazikas 62-66 .indd 5 3.2.2020 11.05
66 CRUISEBUSINESS.COM MAGAZINE WINTER 2020 in April 2019. In total, € 200 million has been invested by the government. There are 13 berths, five of which are for international cruise ships and ferries. The largest quay is 380 meters in length. In 2017, the city walls and certain fortifications were entered into the UNESCO World Heritage list. It is 10 kilometers from the seaport to the city. BURGAS – This oldest port in Bulgaria is expecting two calls next year from Azamara Cruises and Golden Eyes of Israel. The year after, there will be three including one from Crystal Cruises. This compares to 27 calls and 50,000 in 2014. The facilities offer a berth 320 meters in length and 10 meters in depth. Princess Cruises’ Emerald Princess has been the largest vessel to call so far. The Expo building, a five-minute walk from the city center, is due to be completed next year and will be the venue for the fall 2021 MedCruise assembly. From May to October, flights between Europe and Bulgaria come into Burgas Airport. KOPER – Passenger numbers have risen from zero to 100,000 since 2005, when the Slovenian port entered the cruise scene. There is one dedicated cruise pier of 420 meters in length and 10 meters in depth, located 200 meters from the city center. To really increase volume, there is a need for further berths, but for now all is well and sustainable with no sign of over-tourism. With one ship on any one day, this works well for the community, which welcomes the cruise ships calling. There is great support from the municipality and the national tourist board. Bojan Babic, Cruise Terminal Director, Port of Koper, told CBM, “We will never have 10 ships a day. It is not logical to do it. In the next decade we would like to extend to one more pier, but this is the maximum volume Koper will have in the future.” NAPLES, PALERMO and CASTELLAMARE DI STABIA – There are plans to strengthen and lengthen the berths in Naples, which received 410 calls and 1.3 million passengers in 2019. Dredging is taking place in Palermo (the main port for the Amalfi coast) so the depth will be suitable for medium-size ships. Here there are 60 to 70 calls and 85,000 passengers. At present, Castellammare di Stabia (the port for Pompeii which is 4 kilometers away) is focused on yachts, but the facilities can easily berth small cruise ships. Naples airport offers flights to more than 160 destinations, and this year began direct flights to New York from May through to October. VALENCIA – Currently the only possibility to refuel ships both in Sagunto and Valencia is from trucks, as is already being done with passenger vessels (ferries) from Balearia. There is a project underway, together with the Saggas re-gasification plan in Sagunto, to make refueling there from a fixed installation, but today the project is still in the planning stage. In Valencia, in the second half of 2020, there will be a fixed installation to supply LNG to vessels in the Espigon Turia berth, but only for a small capacity, which is not enough to supply cruise ships. “Ideally, an operator should be able to supply LNG by barge, but today there is not enough demand to justify that investment,” stated the Port Authority of Valencia. VAR PROVENCE CRUISE CLUB – This network of nine ports received 200 calls in 2019 and is not experiencing any congestion problems. Investments have been made in mooring buoys to protect the seabed at Sanary and Le Lavandou, which should be operational in 2020. SaintCyr-sur-Mer is getting its first call next year. A “Cruise Friendly” initiative has been launched encouraging shopkeepers to stay open during a call, to speak English and to give a discount. In return, they will be on a map that is given to passengers, which will increase business and enhance the passenger experience on shore. Launched in Toulon first, this is now being rolled out to the other ports in the network, as well as to ports outside France. For example Reunion island and Yokohama port are also now “Cruise Friendly.” CCI NICE COTE D’AZUR – The region says it will invest € 30 million and € 6 million in Nice to install shore power, mainly for ferries but also for cruise ships that can plug in. In CCI, Nice is the port with berths, while Cannes and Antibes have berths for ships up to 120 meters in length, but are mostly anchorage, and Villefranche is anchorage only. Passenger numbers are not being developed because the ports are already at their maximum in terms of the present facilities, except for Cannes. There has been a strong increase since 2017, and the forecasts for 2020 and 2021 are the same. Cannes is the first port in the Med to require 0.1% sulphur levels in the port area. If cruise lines had not met this standard by January 1 2020, they would not be able to call. So far 21 have done so. Four companies still have to comply. n Ponant’s Le Lyrial in Syros, Greece 62-66 .indd 6 3.2.2020 11.05
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CruiseBusiness.com CruiseBusiness.com REVIEWING CRUISE BUSINESS GLOBALLY Magazine Winter 2020 ICS 2019 advocates new thinking NORWEGIAN MARITIME INDUSTRY races against time NORWEGIAN MARITIME INDUSTRY races against time GREG MORTIMER overcomes barriers for on-time delivery GREG MORTIMER overcomes barriers for on-time delivery MEGASHIP DELIVERIES Carnival Corporation & plc took delivery of three new megaships during the fall of 2019. One of them was the Sky Princess, seen here in a photo by Len Kaufman sailing from Port Everglades. The debut of the Sky Princess marked the first MedallionClass newbuild powered by the OceanMedallion – the global hospitality industry’s most advanced wearable device. Kansi winter20.indd 1 3.2.2020 16.54 Untitled-1 4 10.2.2020 13.50