1/2017 www.cruisebusiness.com – CRUISE BUSINESS REVIEW 26th Year of Editorial Excellence Caribbean Developing next-generation ports Northern Europe Breaking the winter barrier Expedition ships Placing high demands on technology MSC Cruises Doubling down on Miami Untitled-1 1 1.3.2017 13.40
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CONTENTS MAIN FEATURES Cruise Business Review 1/2017 5 16 MADRID CRUISE SUMMIT Alan Lam attends Madrid Cruise Summit, where the main focus was finding passengers for new ships. 30 SILVERSEA’S MARTINOLI TALKS GROWTH Fran Golden talks with Silversea CEO Roberto Martinoli about the company’s new ship Silver Muse and growth in expedition cruising. 50 MSC CRUISES DOUBLES DOWN ON MIAMI Jason Leppert visits Fincantieri Monfalcone shipyard, where the new MSC Seaside is on the outfitting stage. MSC Seaside will be home-ported in Miami year-round. 53 NEW INNOVATIONS SHAPE THE MEGASTAR Kalle Id and Kenny Leong sails on the the new LNG-powered Megastar cruise ferry, which provides luxurious passenger areas for a short crossing between Helsinki and Tallinn. 62 HEADLINES 2016 – FORECASTS 2017 Kari Reinikainen glance back at last year and look ahead to see what’s in store for cruise business. CRUISE BUSINESS REVIEW 1/2017 5-6 uusi.indd 3 27.2.2017 10.27
10 Cruise Business Review 1/2017 Publisher’s Letter HOW TO CONTACT ME editor@cruisebusiness.com twitter.com/cruisebusiness youtube.com/cruisebusinessreview W hen I was a kid in the 1980s living in my native country of Finland, my family had a tradition of taking a cruise from Helsinki to Stockholm every December between Christmas and New Year’s. Cruise ferries, such as the ms Finlandia and ms Silvia Regina of Silja Line or the ms Viking Saga and ms Viking Song of Viking Line, became very familiar to us and helped pave the way for me to become a journalist covering the passenger shipping industry. During the 1980s and later in the 1990s, the cruise ferry industry was pioneering. Operators in the Baltic had created an onboard product that attracted both Finnish and Swedish passengers for short getaways, no matter whether it was the summer or winter season. The ships in those days were already fitted with multiple dining and entertainment options, saunas, swimming pools and so on. The accommodations were comfortable enough for a two-night mini-break (although if the cabin booked was below the car deck, nights were sleepless due to the noise of the ship breaking through the ice). Meanwhile, the cruise vacation business at that time was very much centered in the Caribbean and just a few other warm-weather destinations, and most cruise ships were designed to be operated in the Caribbean. During the 1980s, both Carnival Cruise Lines and Royal Caribbean Cruise Line were operating solely in the Caribbean. What we can learn from the success of short cruises offered by Baltic ferry operators is that winter (or should we say year-round) cruise operations in Northern Europe can become a sustainable business. Cruise guests from source market such as Germany can easily reach the embarkation ports without boarding a flight, and ships can be built with yearround operations in mind. The cities in Northern Europe offer the same sights and attractions (with a few exceptions) as during the summertime, but are less crowded during the winter months. As it is said, there is no weather that’s too cold – just the wrong clothing. W ith this history in mind, I was excited – over 30 years later – to embark the new ms AIDAprima in Hamburg at the end of January. AIDA Cruises, which celebrated its 20th anniversary last year with the introduction of its new flagship, has always been at the forefront of innovation. The AIDAprima and its sister ship the ms AIDAperla – to be introduced in summer 2017 – have been designed to operate year-round in Northern Europe. During its inaugural season, the AIDAprima sails weekly from Hamburg on a “European Metropolises” itinerary, drawing its passengers from the German source market and calling at Southampton, Le Havre, Zeebrugge and Rotterdam. Hamburg is easy to reach by private car, train or plane, and there is ample parking at the new Cruise Center Steinwerder for passengers arriving in their vehicles. But here is what’s most important: AIDA Cruises has created a product that is attractive year-round. The ship itself works well during all four seasons. There are multiple dining and entertainment options both indoors and outdoors, the spa is massive in size and two indoor waterparks offer family-fun for all ages no matter what the weather conditions. The sailing distance between ports-of-call is short and time in port is generous, which allows for shore excursions to capital cities such as London, Paris and Brussels. But not surprisingly, as modern cruise ships have become destinations unto themselves, many guests on the AIDAprima choose to spend their day in one of the waterparks onboard even when in port, rather than in taking shore excursions. Teijo Niemelä February 2017 THE WINNING CONCEPT OF WINTER CRUISING Publisher Teijo Niemelä visiting at the Port of Hakata in Japan during December 2016. Hakata is currently among the most popular ports-of-call in Japan catering mostly cruise ships arriving from China. On the background is Princess Cruises’ Sapphire Princess. Japanese ports will be more in our focus during the entire year of 2017 P h ot o cr ed it : R yo ji M ae sh im a
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The year 2016 marked a rapid expansion for Genting Hong Kong, which culminated in the christening of the brand-new Genting Dream in November – marking the start-up of an entirely new upmarket cruise line, Dream Cruises. Earlier in the year, Crystal Cruises (the ultra-luxury cruise operator Genting acquired in 2015) unveiled its Crystal Luxury Air product and began river cruising in Europe. However, perhaps Genting’s most daring step was to acquire Nordic Yards in Germany. Consisting of three newbuilding yards in Rostock, Stralsund and Wismar, the new MV Werften is expected to fulfill the future newbuilding requirements of Genting, whose portfolio also includes Star Cruises. Puan Sri Cecilia Lim (pictured above), the wife of Tan Sri Lim Kok Thay (pictured below), Chairman and Chief Executive Officer of Genting Hong Kong, acted as the Genting Dream’s official godmother. PICTURE OF THE YEAR 2016 Cruise Business Review 1/2017 13 12-13ndd.indd 3 20.2.2017 11.44
14 Cruise Business Review 1/2017 PICTURE OF THE YEAR – RUNNERS UP What other news photos made headlines during 2016? There was no other cruise ship naming ceremony with more glitz, glamour and royalty during 2016 than the christening of Regent Seven Seas Cruises’ new Seven Seas Explorer in Monte Carlo. Her Serene Highness Princess Charlene of Monaco delivered the traditional maritime blessing before the bottle of champagne broke against the ship’s hull, officially christening the vessel, while President and COO Jason Montague, the ship’s Captain and Norwegian Cruise Line Holdings Ltd. President and CEO Frank Del Rio witnessed the event. The Crystal Serenity completed a 32-day and 7,297nautical-mile journey through the famed Northwest Passage – a first for a large cruise ship. During 2016, Arctic cruises increased in popularity and several cruise operators entered into agreements to build new tonnage for polar operations. The Adonia of Carnival Corporation & plc’s newly-founded Fathom brand became the first cruise ship in decades to sail from the U.S. to Cuba. Since June, U.S.-to-Cuba cruising has evolved to now also include, among others Carnival Cruise Line, Norwegian Cruise Line, Oceania Cruises, Regent Seven Seas Cruises, Royal Caribbean International and Pearl Seas Cruises. In September, a joint venture between Carnival Corp., China State Shipbuilding Corporation (CSSC) and Fincantieri announced a landmark memorandum of agreement to build cruise ships in China. In late February 2017 the agreement was updated, further expanding the cooperation between the three parties to include two firm orders and four options for 133,500 gross ton newbuilds. 14-15indd.indd 2 24.2.2017 12.38
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16 Cruise Business Review 1/2017 CONFERENCE REPORT EUROPE MADRID SUMMIT FOCUSES ON FINDING PASSENGERS FOR NEW SHIPS With the cruise industry’s orderbook bursting at the seams and confidence at an all-time high, the focus of the Madrid International Cruise Summit 2016 was firmly on how to source more passengers to fill this additional capacity. By Teijo Niemelä and Alan Lam From left: Massimo Brancaleoni, Richard Vogel, Chris Coates and Kerry Anastassiadis 16-23 .indd 2 20.2.2017 11.53
Cruise Business Review 1/2017 17 I n a presentation by Cruise Business Review correspondent Alan Lam , the extent and implication of the industry’s orderbook were clearly demonstrated. As it stood in November 2016, including options, more than 80 units of cruise ships were on order, representing over 9.5 million gross tons and above 242,000 lower berths, driven mainly by the vibrancy of the Asian market – China in particular. In his presentation, Lam compared the current optimism with that of the container-shipping sector a few years earlier. He spelled out the risks and highlighted the fact that the cruise industry’s confidence is almost entirely based on the recent performance of and prognosis for the Asia market, because growth elsewhere is, at best, moderate. In fact, this confidence is based almost solely on China – on Shanghai and its surrounding area in particular – as most international cruise lines are based there. Outside of this region, the market is still imponderable. Royal Caribbean Cruises Ltd. (RCCL) recently reported a softening of the Shanghai market. During the summit, major cruise lines in attendance were asked if any of them were making money from China. The silence in the conference hall conveyed a resounding “no!” In addition, there are so many other uncertainties in the world today, ranging from Brexit to terrorism, eurozone crises and geopolitical issues, that cruise business development is at risk of being derailed by unforeseen events. More new orders are being continuously added. If this newbuilding boom continues, it is believed that by 2026, more than 50% of current capacity will have been added to the global fleet. To avoid a possible disastrous future overcapacity scenario, as experienced by the container-shipping sector right now, the industry will need to ensure, first and foremost, a steady and continuous increase in passenger numbers corresponding to the increase in newbuilding capacity. More passengers needed This target is, in fact, achievable if the current rate of growth continues. t ti b C i B i Alan Lam 16-23 .indd 3 20.2.2017 11.53
More opportunities sought In its unrelenting effort to find new source markets, the industry is urged not to overstate the challenges, but to see them as opportunities. Indeed, certain pioneering segments of the cruise business have chosen to act counterintuitively in their efforts to source passengers for their ships. While most cruise lines abandoned Turkey on account of the perceived geopolitical threat, Celestyal Cruises headed in the opposite direction. “We decided to focus on the Eastern Mediterranean,” said CEO Anastassiadis. “The reality is that there is Turkey with 80 million population. We simply cannot and will not ignore this market. The [cruise market] penetration there is infinitesimal. For the Turkish, there is no geopolitical issue. We focus on serving this market, and we see it as an opportunity rather than threat. We go where nobody else goes. We can turn it into an advantage.” It would appear that there are opportunities everywhere, even in Turkey. Celestyal has always had that pioneering spirit. “We were the first to re-enter Cuba when everyone else pulled out,” Anastassiadis said. “Cuba for us is a very interesting market.” This different approach appears to have paid off. Today, Celestyal is among the best performing 18 Cruise Business Review 1/2017 Seven percent may seem like a small, achievable figure. Yet this can be an uphill struggle for the traditional markets in Europe. – Pierfrancesco Vago – There is Turkey with 80 million population. We simply cannot and will not ignore this market. – Kerry Anastassiadis – to create a strong brand positioning in the Asian market. This forms part of a pioneering MedCruise project that commenced in 2014 and promotes the attractiveness of MedCruise destinations to the Far East, in a strategy aiming to transform Asia into a key passenger source market for cruises in the Med” – thus further qualifying the MedCruise strategy. “Realistically,” said Kerry Anastassiadis , CEO of Celestyal Cruises and the new Chairman of CLIA Europe, “the maximum the cruise industry can grow is 7% per year, owing to shipbuilding constraint, which means by 2030 we will still be infinitesimally small compared to other holiday industries.” Therefore if the current trend continues, a containershipsector-style disaster can be averted. But a great deal of marketing and sales effort is needed to fill these ships in order for the industry to remain viable, not to mention profitable, in the future. If all the ships on the current orderbook are delivered according to plan, a corresponding percentage increase in overall passenger numbers will be key. In other words, by 2026 at least 36 million annual passengers are needed; that is to say an average increase of 1.2 million per year must be achieved for the next ten years just to maintain the current level of supply/demand ratio. And price pressure must be eased at the same time. To do this, marketing and sales efforts must be redoubled and must be more effective. There are numerous challenges ahead. Seven percent may seem like a small, achievable figure. Yet this can be an uphill struggle for the traditional markets in Europe. Spain, for example, peaked in 2011, according to Pierfrancesco Vago , Executive Chairman of MSC Cruises and the incumbent Chairman of CLIA Europe; in 2015 it only managed 3% growth, less than half of the anticipated 7%. So the main engine is undoubtedly China, and China must continue to deliver. More marketing required Marketing is central to driving future passenger growth. The focus of the summit was firmly on China-targeted campaigns and seeking new opportunities elsewhere, which also meant increasing penetration in traditional markets that require innovative products and a change of perceptions. As in all other cruise-related professional gatherings in recent years, sooner or later China became the focal point of discussion. In Madrid, this was no exception. It soon became apparent that much of the industry’s marketing efforts have been China-oriented. “In 2017, China will represent 20% of global passenger count, with 21 ships [deployed],” said Massimo Brancaleoni, Senior Vice President Global, Costa Crociere. “The business is there. Then there is Chinese coming to Europe, which is of more interest to me. Their spending per capita is in the range of $800-$1,000. They now account for up to 85% of duty-free sales. We are offering them packages with strong shopping potentials built in.” There is one other important aspect of pursuing the Chinese clientele. “I can understand cruise lines are always looking for new markets,” said Richard Vogel , the new President & CEO of Pullmantur Group. “They are looking for sustainable growth. In comparison to India, China is relatively more sustainable.” Indeed, sustainability is an important element in investing in a new market. It is therefore natural that organizations such as MedCruise have a clear vision concerning China. “Two years ago, we saw the potential in China,” said Kristijan Pavic , President of MedCruise. “We work with Chinese travel agents. We approach Chinese companies to build business strategy on China. Through WeChat, we are communicating with that market. Outside of Asia, the Mediterranean is their [Chinese travelers] next destination. We are discussing through our board, what is the next step to take for the Chinese market? We are already thinking and communicating with our members about how we can approach this market. We need promotion of destinations as well.” Later, in a press release, he added, “Since July 2015, MedCruise has worked Pierfrancesco Vago 16-23 .indd 4 20.2.2017 11.53
The leading cruise port in the Mediterranean 16-23 .indd 5 20.2.2017 11.53
small-size cruise lines, and it is expanding its capacity while other cruise lines, such as those operated by the All Leisure Group, have fallen victim to geopolitics. In its search for new passenger sources, the industry now recognizes the role that independent travelers play in filling its cabins. “We are all becoming more independent travelers,” said Clare Ward , Senior Commercial Planning Manager, Fred. Olsen Cruise Lines. “We all want to tailor our experiences and not be herded into a bus.” The industry has finally recognized this longstanding fact, and its response is to become more f lexible. “We need to differentiate our products by personalization,” she added. “Flexibility is important. Independent travelers are here to stay. We should be looking at how we cater for them. So we must embrace the trend; we can’t fear them.” She pointed out that some destination management companies tend to give independent travelers a hard time so they will book tours. This, for her, was not the right way to go. “If independents are served poorly, the ports will get poor ratings and the port will be dropped.” The industry is now fully aware of the need to be inclusive. “Quite often we treat independents as second-class citizens,” said Shirley Henderson , Manager Shore Excursions, Carnival UK. “We need to look at how to include them and make a bit of money out of them as well. Guests want personalized, authentic experiences. We can provide that through small groups. But small groups are expensive; we need to look at how to overcome this.” More challenges for ports More than half of the capacity on order will come from megaships of over 150,000 gross tons. This is transforming the cruise industry, and it will present a major challenge particularly to itinerary planners and ports as they strive to source more passengers. To fill these ships, cruise lines will need to revolutionize their products. This becomes difficult because the size of the ships will restrict the number of ports-of-call, thus impacting the variety of cruise itineraries offered and making this holiday option less appealing. On the other hand, the dominance of megaships also presents an opportunity for smallership operators that 20 Cruise Business Review 1/2017 through small groups But small groups In 2017, China will represent 20% of global passenger count, with 21 ships [deployed]. – Massimo Brancaleoni – can call at twice as many ports, at least, as their bigger competitors – unless port infrastructure upgrades can keep pace with newbuilding deliveries, which is unlikely. Here also lies the opportunity for smaller ports. The speed and size of newbuildings coming into service has overwhelmed ports. Bigger ships and more passengers mean bigger needs. The effort to find more passengers for tomorrow’s ships will come to nothing if landside development does not keep pace. “It is inconceivable for the industry to continue to grow without working with the ports,” said Celestyal’s Anastassiadis. Here lies the biggest challenge: It is virtually impossible for the ports to keep up at present. “The pace of change on ships is not kept up by ports,” said Captain Michael McCarthy , Chairman of Cruise Europe. “It takes years for them to apply for planning permissions, overcome local opposition and sort out environmental issues, etc. We simply cannot keep up the pace. Besides, how can you justify investing €20-€30 million without guaranteed ship calls?” There seems to be a stalemate on this issue. But cruise lines are forever seeking new ports and new destinations in their Massimo Branceleoni Kristijan Pavic 16-23 .indd 6 20.2.2017 11.53
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22 Cruise Business Review 1/2017 effort to attract more passengers. This is a perennial issue that is raised over and over again: The ports cannot meet the needs of the cruise lines and vice versa. “Looking at the global growth, there is a pressure point on marquee ports,” said Chris Coates , Commercial Director, Cruise & Maritime Voyages (CMV). “We operate small ships, so we do not totally rely on marquee ports.” But CMV does have an issue with berth allocations. “We now plan our programs much earlier,” he went on, “in order to get the berths we want. We are already planning 2019 itineraries. As we add capacity next year, we are looking for new destinations.” CMV is by no means alone in this struggle. “We now not only face port congestion, we also face destination congestion,” said Jacqui Nobile , Port & Shore Excursions Operations Manager, TUI Travel plc. “We have a topline fiveyear plan, similar to other cruise lines.” Congestion will become increasingly an issue, as the trend of more and more megaships calling at fewer and fewer ports continues. For large cruise groups, this problem often can be solved by entering into exclusive port concessions and developing private resorts, as all of the industry’s four top players have done. It is hard to overstate how this disharmonized development between cruise lines and landside facilities will affect the future growth of the cruise business, as it directly impacts upon customer experience. “One of the biggest challenges is creating an end-to-end experience,” said Fred. Olsen’s Ward, “making sure the experiences are all jointed up for our guests, making sure we offer the same experience on shore as well as on ships; otherwise there is a mismatch.” This is one of the main reasons major cruise groups take control of the port experience where possible. More questions raised Whether or not the industry will be able to fill the unprecedented number of new ships expected in the future will continue to be a subject of speculation and debate. In this process, more questions are raised – forcing the industry down the path of soul-searching and self-examination. “If customers are not buying from us,” asked Niamh McCarthy , Managing Director, Excursions Ireland, “is it because we have not changed, doing the same thing over and over again? So they buy from someone else. Twenty years ago, cruise passengers were overwhelmingly older. Now there are so many families. How do we satisfy everybody? Why would anyone choose a cruise line tour if it is so simple to choose an independent operator? We are in the business of making people’s dream come true. Are we still doing that?” These are stark and daring questions that are utterly relevant in their context. Even the idea of the Mediterranean being a year-round destination was challenged. “Is the Med still a year round destination?” asked Pullmantur’s Vogel. “I am not so sure now it is the case.” He raised this question as a ref lection of landside service availability during the winter months. CMV’s Coates saw this as a challenge to overcome, if the industry is to fill those ships. “The world is a global village,” he said, “a shrinking village. The challenge is filling the ships in the winter. Everyone can fill ships in the summer. How do we fill our ships during colder months?” As yet no one has offered a solution, other than calling for cooperation. More action needed Aside from recognizing the challenges and opportunities, the industry itself, above all, needs to change if it is to fill all its new ships sustainably. “We need to communicate the value of our product to the public through various channels, including the social media,” said Helen Panagos , Vice President Marketing and Sales, Crystal Yachts, Residences and Crystal Air Cruise Destination Experiences. In the end, it all boils down to cooperation. “What we need to do is get organized and see how to deliver this to the guests,” said Virginia Quintairos , Regional Director Mediterranean, Intercruises Shoreside & Port Services. “How to differentiate? How to work with cruise lines, agents and ports to deliver this experience together?” The loudest calls for action at the summit were those concerning change and differentiation among cruise products that are too rigid and uninteresting. “If you look at the web,” said Mario Sennacheribbo , CEO of BC Agency, “it is copy-and-paste with a variation [in terms of products].” This is, in fact, an accurate observation that is not often mentioned. “We have to look at our product and see what can be changed,” said Carnival UK’s Henderson, “and we need to create different price points. We don’t need to have the same product on all our ships.” Change was a theme that ran through the summit. “Passengers’ expectation changes all the time,” said Huguette Lubrano , Excursion and Land Programs Manager, Star Clippers. “We need to match that.” Marketing and distribution channels need to change as well. In the age of social media and the internet, it seems that cruise lines still cannot free themselves from dependence on travel agents: Carnival Cruise Line recently abandoned direct sales in the UK and became 100% trade-only. “We need to look at the distribution channels,” said Juergen Stille , Director Business Development, Continental Europe, Norwegian Cruise Line. “A lot of travel agents are still not confident enough to sell cruise products. We need to focus on training our agents and bring them onboard. Selling cruise is not always in the minds of travel agents. This is still the situation today. Filling 70 or more new ships in the future, for me, the key is training travel agents.” While there is no guarantee of finding enough passengers to fill future capacity, the industry’s former enthusiasm and optimism seems to have been sobered a little. It is now perceivably more cautious. “There needs to be a sizeable shift on marketing by cruise lines,” said CMV’s Coates. “More money needs to be spent on marketing through various channels, including call centers, etc. There needs to be a stronger focus on early booking. That can be achieved through education, which is absolutely vital in trying to get them to book early,” he concluded. effort to attract more passengers. This is one of the main reasons major cruise o c A o a n m p i V C A t s V M P t t s a u i S c o o Helen Panagos 16-23 .indd 8 20.2.2017 11.53
CANARY ISLANDS MADEIRA ISLANDS SPAIN AFRICA FRANCE UNITED KINGDOM PORTUGAL 20ªW 40ªN 20ªN T R O P I C O F C A N C E R CABO VERDE 16-23 .indd 9 20.2.2017 11.53
24 Cruise Business Review 1/2017 Roberto Martinoli E ntering the office of YSA Design at the Kongen Marina in Oslo, one can feel change in the air – quite literally, as the first thing I encountered on my visit was a room undergoing renovation. With five long-time employees having joined the ranks of owners last year, YSA is now in an enviable position of being able to draw from the decades of experience of its founders, Petter Yran and Bjørn Storbraaten , but with the new owners permeating the company with new enthusiasm and new energy. As exemplified by the renovation carried out at the Kongen premises, YSA’s expanded ownership base has brought with it new investments. These are not limited to the office building, as the company is acquiring the latest hardware and software to stay abreast of technical development, while hiring young professionals with cutting edge skills. During my visit to Kongen, I was allowed a peek inside YSA Design to see how it creates the wonderful designs sailing on the seven seas and to learn how last year's re-organization came to pass. A brief history “I had a sister that Petter fell in love with, and that was the start of the company, so to speak,” Bjørn Storbraaten explains COMPANY PROFILE SHIP DESIGN YRAN & STORBRAATEN EVOLVES INTO YSA DESIGN YSA Design – previously known as Yran & Storbraaten Architects – has undergone a reorganization and rebranding, with five of the company’s long-time employees joining the ranks of owners. Infused with new energy while drawing from decades of experience, the company looks to the future with new enthusiasm. By Kalle Id when asked about the origins of YSA. Petter Yran had already been working on maritime projects and had developed a keen interest in not only ship interiors and exterior design but also in optimizing the general arrangements, which he felt drew too heavily from ocean liners of old and were poorly suited for cruise use. Storbraaten, meanwhile, had been working for an architect’s office specializing in land-based public buildings, but by 1985 he was looking for new challenges – just as Yran was starting his own office and needed help with additional cruise ship projects. Initially, Storbraaten was not very keen on the partnership, knowing Yran to be a workaholic who could work until four in the morning, but in the end he accepted the challenge. Initially, their office was located in the Aker Brygge shipyard’s premises (which have since been redeveloped into a fashionable residential area). Storbraaten remembers that there was no heating, and the fuses could not cope with the load caused by the number of heaters needed to bring the temperature to a tolerable level. In early 1986, the office relocated to the current location at Kongen, and soon afterwards secured a contract to provide the concept, architectural, interior and exterior design for the first ships of Seabourn Cruise Line, firmly setting the new practice on the path of specialists in luxury cruise ship design. Many new talents joined the office in subsequent years, including the new owners, many of whom have been with the company for over two decades. Through the years, clients from across different cruise market segments and from the ferry sector have been keen to secure Yran & Storbraaten’s services. Central to the development of the company was Disney Cruise Line, with whom YSA has been involved since DCL’s first newbuildings in the 1990s. Gunnar Aaserud (who was made partner in 2006) recalls that these ships required the office to change its whole way of working to be more efficient. Disney has been a rewarding company to work with, as Jan Krefting explains: “The Disney ships have been large projects with an owner that really wants to work everything through in detail. They do the projects with huge enthusiasm. That also gives you energy as a designer.” Aaserud concurs, saying, “I’ve never had so many Eight YSA partners photographed on Kongen’s roof terrace. From left to right: Jan Krefting, Tov Arne Svalestuen, Einar Jungård, Trond Sigurdsen, Gunnar Aaserud, Anne Mari Gullikstad, Petter Yran and Bjørn Storbraaten P h o to cr ed it : K a ll e Id 24-29 .indd 2 20.2.2017 11.57
Member of 23-24 May 2017 MEGARON GREECE ATHENS INTERNATIONAL CONFERENCE CENTRE www.PosidoniaSeaTourism.com Silver Sponsors Bronze Sponsors Reinventing Cruising in the East Mediterranean 24-29 .indd 3 20.2.2017 11.57
26 Cruise Business Review 1/2017 adrenaline kicks as when I started the first Disney project.” When the terrorist attacks on New York and Washington in 2001 upset the hitherto quite steady growth of the cruise business, Yran & Storbraaten was in a very good position, as the firm was established as architects and interior designers on dry land. Land-based projects such as hotels, offices, apartments and shopping centers form an enduring part of the YSA portfolio to this day alongside the marine projects. The downturn was not without effect, however, as Yran & Storbraaten’s Miami branch, which had existed since the early 1990s, was closed down in 2001 and operations were again concentrated in Oslo. Changing of the guard The company was reorganized last year when five long-time employees – Anne Mari Gullikstad , Trond Sigurdsen , Einar Jungård , Jan Krefting and Tov Arne Svalestuen – were taken in as new partners alongside Yran, Storbraaten and Aaserud. At the same time, the company was renamed YSA Design. “Bjørn and I are getting too old. Bjørn is 74, I’m 73,” Yran says, while Storbraaten adds: “It was a necessary step forward. Petter and I cannot live forever.” Thus, steps had to be taken to ensure the continuation of the company under expanded ownership, lest its accumulated skills and legacy be lost when the original owners retire. “The process of the generation change started a few years back,” Gullikstad explains. “About two years ago we [the new partners] gave our proposal to them. A lot of discussions followed, until the final agreement last June. Petter and Bjørn will step down within the next three years.” Yran and Storbraaten are both pleased to have younger forces join the group of owners and assume the responsibility of day-to-day running of the company. “I think it’s fantastic!” Storbraaten enthuses. “I don’t have the responsibility, I can just concentrate on doing the things I love.” Isabel Johannsdottir, the company’s administration and marketing coordinator, agrees. “From the employees’ point of view, there is even more enthusiasm and positive energy now. A lot of exciting things are happening,” she says. “We have a good blend of people,” Sigurdsen adds, “and a lot of accumulated know-how, but we also need some fresh input – bring additional competence in, update our equipment and software right to the cutting edge, and make sure we stay abreast of all the latest developments. Increase our efficiency and capability of doing large projects even further. We always call on the experience and know-how from Petter, Bjørn and Gunnar to make the best projects we could ever do. It’s a hard job to fight the competition, but Petter and Bjørn have done that successfully for decades. We need to carry on and sharpen our pencils even more, because there are a lot of new companies coming into the business.” The YSA difference When asked about the YSA Design philosophy, Gullikstad is quick to reply, “To understand the client’s wishes, dreams and needs – and the market. We can do basically anything asked of us.” Storbraaten emphasizes YSA’s versatility. “We are not only interior architects. We can do a ship from scratch. To come to us first is, in my opinion, a very smart move. We can do the conceptual development; then, the owner can go to different yards for price indications and choose the one to work with. After 35 years in this business, we have unique understanding of ship design.” A look at YSA’s reference list is a testament to this. In the majority of the entries, the company has participated in numerous different fields, from the conceptual design and general arrangement down to the detailed interior design, while several of the most impressive vessels of the past decade are listed with the deceptively simple description “total design.” YSA’s understanding of layouts and general arrangements means it is able to optimize ships to an impressive degree. An outstanding example of this is the Viking Longships, which Storbraaten remembers as a particularly enjoyable challenge. He realized that, as river cruise ships do not meet high waves, the bow could be entirely redesigned allowing for more cabins YSA provided total design for Seabourn’s successful Odyssey-class, including – naturally – the very attractive exterior design P h o to cr ed it : K a ll e Id P h o to cr ed it : K a ll e Id YSA offices are decorated with both models and drawings of ships the company has worked on. Due to the ongoing renovation efforts, the office was in something of a ‘from chaos comes creativity’ mode 24-29 .indd 4 20.2.2017 11.57
and revenue-earning spaces onboard. “I could push everything six meters forward,” Storbraaten explains, “so that the ships could have eight cabins more.” While eight cabins might not sound like much, within the dimensions imposed by the Rhein-Main-Danube Canal such a development was extraordinary and gave Viking River Cruises a clear edge over its competitors. “We can take a project from an owner’s vision to completion,” Aaserud points out. “For the interiors you need certain kind of people, for negotiations you need different kind of people, for the general arrangement you need certain kind of people – and we have all these people.” YSA employs not just architects and interior designers, but also textile designers, industrial designers and even 3D specialists for the impressive renderings that will give customers a life-like view of the future ship. The most important thing in YSA’s way of doing things is getting to know the client, understanding their product, their goal and – most importantly – their passengers. “Typical for our office is that while we may be recognized for a certain flair and style, we have so many different design groups here that we’re quite eclectic,” Sigurdsen explains. “We focus on really seeing the client, building on their brand, and the result is very different from one client to another. We create tailormade spaces to the clients’ commercial frame,” Storbraaten says. “Although some customers see us as a Scandinavian interior architect office, we can do any kind of interior styles, from rococo to modernism. We do the style the customer will have the best payback with,” he adds. Collaboration is vital to the YSA way of working, Sigurdsen continues. “We try to find a common ground for what will make the best result. In this business, you can’t just arrive with your drawings and expect things to be done your way. It’s all about finding good solutions with qualified professionals, who know so much more about how to build things than we do,” he says. “It’s all about being a little bit humble,” Gullikstad adds. “There are a lot of restraints and challenges in ship design, and the subcontractors we work with are very professional and eager to find solutions that work.” It is also important to understand the strengths and weaknesses of the various parties involved to make the best result. “Every company is different,” Sigurdsen says. “Some are very good in plasterwork and others prefer to do metalwork instead. It’s all about trying to get the maximum out of everybody in the system for the best possible result.” Sums up Johannsdottir: “At the end of the day, the main goal is for the ship to sail with satisfied and pleased passengers. They are, of course, at the front of our mind through the entire process.” Not just cruise ships While YSA is best known as designers of cruise ships, the company has an impressive portfolio of land-based buildings, particularly hotels and offices. “The reason why we are successful on land is because we can utilize space – we’re really trained on how to see the maximal space, coming from a ship-design history,” Gullikstad notes. As an example, in the Riga G20 hotel in Oslo, completed in 2010, YSA was able to increase the number of rooms from 73 to 96, while maintaining the same building height. Another field that YSA has expertise in but has not been known for in recent years is ferries. The company's reference list includes impressive vessels such as the ms Silja Serenade and ms Silja Symphony of Silja Line, and the equally groundbreaking early ships of Superfast Ferries. This is a market segment that YSA is actively working to re-enter. “We see ferries as a very interesting, expanding market,” Aaserud says. “Especially the cruise ferry.” The future of cruise ship design In order to predict future trends of cruise ship design, it is vital to understand future passengers. “The people who are now in their 20s are the customer to come,” Gullikstad states. “The millennial generation has totally different focus from the older generations, be they European, American or Chinese. They are more environmentally conscious, and as such, it will be important to sell your product as something that’s good for the Earth.” Sigurdsen agrees and points out that this is a megatrend Cruise Business Review 1/2017 27 Bjørn Storbraaten’s scetches for Viking River Cruises’ Longships, which gave the line a competitive edge on Central European rivers P h o to cr ed it : Y S A D es ig n Despite the restricted dimensions of a river cruise ship, YSA was able to create an unusually spacious atrium for the Viking Longships P h o to cr ed it : Y S A D es ig n 24-29 .indd 5 20.2.2017 11.57
28 Cruise Business Review 1/2017 the cruise industry cannot ignore. “All land-based industry is going green. We need to go greener.” At the same time, the destination is likely to come even more into focus. Johannsdottir points to a “bigger focus on authenticity of the experience [with] passengers really wanting to learn about the new destination they are going to.” Aaserud observes that while authenticity and focusing on the destination have been spoken about for a long time, they will become more important in the coming years, with the destination playing a bigger role in the onboard product. “Lectures, culture, food, these kind of experiences can be experienced prior to arrival. Hurtigruten already does this. They change the menus as they move up and down the Norwegian coast, getting fresh, local ingredients.” This focus on authenticity and personal enrichment is already evident in the growth of the expedition market, in which YSA is involved in several projects. The growth of this market niche, specializing in smaller vessels, also highlights a second future trend: A higher degree of personalization and the desire for more intimacy onboard. Sigurdsen sees this as the guiding light of future interior design even on large ships, such as what YSA has done with Holland America Line’s Pinnacle class, where the lido deck is broken into smaller areas creating personalized niches. The future will likely see an increased focus on segregated areas for different passenger groups, as is already seen in the separate areas for suite passengers. However, instead of re-creating the class system of the past, Sigurdsen foresees a more multi-faceted division based on individual preferences: “It’s all about catering to specific needs,” he says, “doing specialized packages for different groups. Some will go for a cultural package instead of a luxury one. Family packages are, of course, another obvious one.” At the same time, emerging new markets mean cruise ship designers have to learn about other cultures. “We are doing ships for the Chinese market,” Gullikstad reveals. “They expect totally different interiors from the Americans. Because of that, we need to think different, we need to learn and understand this new market. The new, younger Chinese are moving away from the gambling traditionally associated with East Asian cruising – though, of course, it will remain a part of the Chinese cruise experience. It’s important to pick up all these signals.” Making a mark on the future While the passenger-ship design industry is getting more competitive with new companies entering the business, YSA’s impressive collection of skills and the ability to do more than just interior design gives it a clear competitive edge. Thus, it is no wonder that the company's owners, both old and new, look to the future with optimism. “I see a very bright future with the energy and optimism our new partners have,” Storbraaten says. “I know they have some of the best skills in the industry.” Gullikstad interjects: “We have been in a school with you,” to which Storbraaten adds, “Yes, the best school.” The future looks good for two reasons, Storbraaten continues. “First of all, we see our orderbooks filling up. That is, of course, the most important thing. At the same time, we are very positive to the change that we have done. The new management group is full of energy. We really want to try to do some adjustments that make a difference.” Adds Krefting, “Our full orderbooks mean we can hire young people with good knowledge about all the latest programs – energetic young people seeing things with young eyes. Of course, with the good orderbooks we can give them things like study trips to stay up to date, have the best programs and the best courses – and have fun! I’ve been here for 30 years, but I still look forward to getting to work in the morning. Having fun is important, to get the energy out of people.” Sigurdsen echoes the sentiment. “Our aim is that we should have even more fun in the years to come. Do even more spectacular projects and have even more satisfied clients,” he says. With a blend of personnel who have decades of experience combined with young, skilled professionals, all working with state-of-the-art equipment, YSA Design can look forward to, in Aaserud’s words, “making a mark on the future of the cruise industry” with invigorated confidence. The cabanas on the sides of Koningsdam's lido pool area are an example of the trend towards more personalized areas onboard larger vessels 24-29 .indd 6 20.2.2017 11.57
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30 Cruise Business Review 1/2017 INTERVIEW ULTRA-LUXURY SEGMENT SILVERSEA’S MARTINOLI TALKS GROWTH Well-known industry veteran Roberto Martinoli joined Silversea Cruises last fall as Chief Executive Officer, based at the company's headquarters in Monaco. Martinoli has been a board member of the line since 2013. He is also retaining his role as Chairman of Mediterranean ferry company Grandi Navi Veloci, a position he has held since 2010. At Silversea, he reports to Executive Chairman Manfredi Lefebvre d’Ovidio. Martinoli talked with Cruise Business Review’s Fran Golden about Silversea’s plans for growth in both luxury and expedition cruising. Roberto Martinoli 30-35 .indd 2 20.2.2017 12.00
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32 Cruise Business Review 1/2017 Cruise Business Review: Let's start with what’s new. Tell me how the Silver Muse will wow the luxury world? Roberto Martinoli: Silver Muse, which just came back from very successful sea trials, will most definitely be the state of the art of luxury cruising. We will have on that 596-passenger vessel eight different dining options, which for this type and size of ship is definitely the best in the market. You will see of course a more modern design still maintaining our style of European luxury, but with little different colors and little different, improved layouts in the suites. There will also be more generous spa space compared to the Silver Spirit, our last newbuild, and very nice open deck spaces. CBR: There is no main dining room, correct? Why that decision? Martinoli: We have eight dining venues each with a different variety of cuisine, each with a distinctive menu. So you will make your choice of the different restaurants you want to go to. CBR: The restaurants will include Italian, Asian, French and a grill. Will the restaurant menus change each day? Martinoli: No, guests will change restaurants; the menus won’t change. CBR: With Silver Spirit, there was a sort of old-fashioned, classic touch in the décor. Is Silver Muse going to be all about modern décor? Martinoli: Of course. About eight years have gone by since Silver Spirit. The color scheme is going to be different, the wood accents in the cabins are going to be different, and bathroom marbles will be different colors, definitely. And this is going to set the standard for the rest of the fleet. We are going to do a complete renovation of the Silver Cloud in Q4 of this year to convert her to expedition, and she will also get the same type of colors, décor and everything that will be on the Silver Muse. Starting with the Silver Muse, whenever we touch an area with any other vessel, we will go from that same standard. CBR: Why was the decision made to re-launch Silver Cloud as an expedition ship? Martinoli: With expedition we started back in 2008 and were among the first to do it, and certainly we are the only one in the luxury space to do it. The demand in that area is quite strong, and there is a very interesting increasing demand for expedition, and you see that many people are now looking into it. So we thought it was good for us to make this conversion for Silver Cloud to expedition, to strengthen the hull to ice-class and refurbish the entire ship. She will be the most luxurious expedition vessel and also the biggest. CBR: Expedition is a wide area. How do you define expedition? Martinoli: What we mean by expedition is to go to very remote areas, have your Zodiacs onboard, have a very experienced crew of naturalists, zoologists, biologists, that will take you around and explore fantastic places, to show you wildlife and nature in a very unique way and in places that you would not be able to reach otherwise. CBR: Obviously expedition is a growing market. Is luxury growing the same way? Martinoli: We have as we speak two more options for sister ships to the Muse, and hopefully, we'll be announcing the confirmation of the first one quite soon. In no way are we going away from luxury, which is our core business. The majority of our revenues are coming from there. But we also like expeditions. Our intention is to grow both sides. The division is currently about 75% coming from luxury and 25% from expeditions. We are not going to go that far from there. If you are looking at statistics, the expedition business in general is growing a bit faster than luxury. But we feel quite strongly about both segments. CBR: Could you see building a ship larger than the 596-passenger Silver Muse? Martinoli: No. Less than 600 passengers are what we are looking for. CBR: Are you looking at converting any of the other Silversea ships to expedition? Martinoli: Not at this moment. We are looking to maybe and possibly build a new expedition vessel. A newbuilding. It would maybe be for the end of 2019 or 2020; that would be the earliest possible. We are just starting the exercise, inquiring with the yards, and seeing what the chances are. CBR: What size would that be? Martinoli: You need to stay within 200 passengers so that you will be able to visit the most interesting areas. There is a limitation of the number of passengers, and you don’t want to exceed 150 meters in length. Silver Muse is currently at the outfitting stage in Fincantieri's Sestri shipyard 30-35 .indd 4 20.2.2017 12.00
30-35 .indd 5 20.2.2017 12.00
CBR: Later this month (February) Silversea will become the first cruise line to visit ports in Bangladesh. Are there any other cruising regions that you are not in that you would like to be in? Martinoli: There is none [laughs] you need to know. We are calling at more than 850 ports around the world. We cover all the seven continents. There is not an area of the world that we do not touch, except for very small places here and there. If you look at our itineraries you have a very wide choice, and we are very proud of that. No one else can claim they call at 850 ports on seven continents. We by far exceed any of our competitors on that. CBR: How focused are you on China, particularly in terms of passenger sourcing. And could you see having a ship dedicated to the Chinese market? Martinoli: I was just there late last year, taking a cruise on Silver Shadow and spending a few days. We are looking to the distribution market in China to source people for our itineraries. We do have Asia itineraries and touch China certain times of the year. But my take is that is that in our segment, luxury, the Chinese people who want to take these types of experiences are more likely to go outside of China and visit the rest of the world. We see that there is demand for them to be on our itineraries as they are today, rather than maybe cruising around China, which would be more like for the mass-market type of ships. So to have a ship dedicated to the Chinese market for the time being is not something we are looking for. CBR: You and Manfredi (Lefebvre d’Ovidio) have been friends since you were teenagers. Was it a hard sell for him to get you back into the business? Martinoli: Not at all. Manfredi and I go back a long time. We were in the college of the Italian Navy getting our high school degrees together. Later we were working in the same sector for many years. One day in Miami, we got in touch and saw each other after some time, and we went out and started talking about business. We were always thinking about me working for Manfredi, but the timing was never right until lately when I completed my task in the ferry business in Italy. He said, ‘How about now?’ and I said ‘Why not?’ and we did it. I was a board member for a number of years, of course. CBR: What did you and Manfredi discuss as far as long-term goals for the company? Martinoli: He feels very strongly about this business, and we really believe that there is a great opportunity for further growth and this is what we are working on. We feel that we are quite privileged to be in these two segments of the market, luxury and expedition, which will continue to grow quite considerably. Our plans are for further growth, building new ships and increasing the size of the fleet. CBR: Could you foresee moving into other segments such as luxury river ships? Martinoli: No, no, no, no, no. We believe we know how to do expedition and luxury well, and we really want to concentrate on that, and make sure we do the best we can in those two areas. CBR: Silversea has been a private company. Why was the decision made to do a public bond issue? Martinoli: The market is very liquid now, and bonds are one source of financing like many others. This company is very much capital intensive, so you want to have a good financial position all the time to be able to continue your growth. And we found this opportunity, and we took it. We are quite happy with that. We just concluded the deal. We consider it to be a very positive thing for us. We just cashed the money. We raised $550 million. CBR: It’s no secret other lines have sniffed around over the years and looked at buying Silversea. Is Silversea on the market to the right buyer? Martinoli: Silversea is probably the last cruise company of a certain importance owned privately, so of course it’s an easy target to spot if you intend to do investment in the cruise area. I know Manfredi likes this business a lot. He is listening to people. Would he be a seller? I don't know. You should ask him and not me. CBR: Conversely, could you foresee Silversea buying existing ships or even another cruise company? Martinoli: If the right deal would come available, why not? CBR: So back to you, are you at Silversea to stay? Martinoli: I am, for sure. Absolutely. Manfredi is a good friend. We know each other for a long time and get along very well together. So yes, I am here for the long haul. 34 Cruise Business Review 1/2017 Silver Cloud will be transformed into expedition vessel 30-35 .indd 6 27.2.2017 7.36
We are cool with the ice. Welcome to Norway, the ultimate nature-based cruise destination. Our long stretched coastline offers unique possibilities for cruising in both summer and winter. Norway offers vibrant cities, picturesque villages, awe-inspiring fjords, unique islands and the Top of The World. We have the spectacular Northern Lights in the winter and the midnight sun in the summer. Throughout the year, Norway offers something for everyone. CRUISE NORWAY The Ultimate Nature-based Cruise Destination VISIT US AT SEATRADE CRUISE GLOBAL FT. LAUDERDALE BOOTH 1521 Photo: Anne Olsen-Ryum / www.nordnorge.com / Hasvik Trym Ivar Bergsmo / www.nordnorge.com / Alta Photo: Konrad Konieczny / www.nordnorge.com / Tromsø 30-35 .indd 7 20.2.2017 12.00
36 Cruise Business Review 1/2017 INTERVIEW EXPEDITION SEGMENT F or Lindblad Expeditions Holdings, Inc., the venerable pioneer of marine-oriented adventure travel, the past few years have represented a period of unprecedented growth, expansion and investment. It completed a merger with Capitol Acquisition Corporation II and entered into the public markets, which has enabled the company to tap into significant capital for expansion. It parlayed that into the acquisition of a majority share in Natural Habitats, Inc., a land-based adventure travel and ecotourism company. To bolster its Galapagos product, Lindblad acquired the ship ms Via Australis for $18 million and invested another $10 million into refurbishment. In addition, the company expanded its roster of itineraries beyond its well-known Arctic, Antarctic, Galapagos, Alaska and Mexico’s Sea of Cortez cruises to include Cuba and French Polynesia. Perhaps most significantly, the New York-based company – which operates seven vessels (and markets Lindblad-centric experiences via other lines’ ships, such as Sea Cloud Cruises and Delfin Amazon) – re a ch e d a n o t h e r s i g n i f i c a n t m i l e s t o n e by ordering t wo n e w builds, the first ever for the company. The 100p a s s e n g e r ms National Geographic Quest and ms National Geographic LINDBLAD UPS THE ANTE FOR EXPEDITION CRUISING Venture will debut in June 2017 and June 2018, respectively. Currently under construction at Nichols Brothers Boat Builders on the state of Washington’s Whidbey Island, they’re the first purpose-built expedition ships to be fully designed and built in the U.S. Expedition travel’s tipping point Lindblad’s rapid expansion mirrors the growth in the once-sleepy niche of expedition travel. French line Ponant, acquired in 2015 by Artemis, will add four newbuilds to its existing f leet of four 244to 264-passenger adventure vessels (as well as a sailing ship). The 180-passenger quartet is now under construction at Norway’s Vard shipyard. They’re expected to debut beginning in 2018. Crystal Cruises is building its first-ever expedition ships, two more are on order for Hurtigruten and Hapag-Lloyd Cruises, respectively, and Scenic is entering the niche with its ms Scenic Endeavor. Later this year, Silversea Cruises will transform the 296-passenger cruise ship ms Silver Cloud into a 260-passenger expedition vessel with a major refit and refurbishment. There’s room for everybody, at least for now, says Sven-Olof Lindblad , the company’s Chief Executive Officer. “The world more broadly could absorb more expedition,” he tells Cruise Business Review. The impetus for this unprecedented period of growth, says Lindblad – whose company celebrated its 50th anniversary in 2016 – may be found in the changes to the world around us. “There’s been quite a shift in what people care about. There is a rather significant migration away from people valuing material things and a migration more to the value and importance of experiences. People are realizing that with certain kinds of experiences they understand more about things that matter on a broader global level, they have more stories to tell. Social media has played a big role – photography is more important, there’s an explosion of interest,” he adds. “You combine that with the largest, wealthiest generation in the history of the world – 75 million strong – and there’s a profound chemical reaction. There’s this inherent desire to do things that are unique; it’s an investment in your character and ability to be relevant to others.” In the end, he says, “expedition is a broad term, a relationship between geography, activity and the human community. Is 21st century exploration dead? The reality is, it’s far from dead. The reality is that it may be entering its most vibrant phase, shifting to how our understanding of the world can be applied to create healthier systems, improve our relationships, define places.” What defines luxury, expedition-style? Travelers no longer have to rough it to see some of the world’s most remote places and, indeed, can do so without sacrificing butlers, caviar-on-demand and a range of restaurants onboard ships. Still, Lindblad, which has rebuilt numerous vessels but never designed its own newbuild before now, is very clear that the additions – while 45% larger than the ships they’ll replace (with only 40 extra passengers) – will represent an evolution rather than a revolution for the brand. Size has been a huge issue. Sven-Olof Lindblad P h o to cr ed it : L in d b la d E x p ed it io n s 36-37 .indd 2 20.2.2017 12.03
SCANSHIP TOTAL CLEAN SHIP SYSTEMS Total solution for shipboard environmental compliance and energy efficiency • Efficient and compliant operations according to the highest international environmental standards • Proven technology with more than 100+ systems in operation • MED B, MED D and MED F certificates according to MEPC 227(64) chapter 4.2 • New solutions for Exhaust Gas Management and Waste to Energy • • Ne New w so solu luti tion ons s fo forr Ex Exha haus ustt Gas Management and Waste to Energy www.scanship.no Exhaust Gas Managment System Scanship SST Scrubber Sludge Treatment Wastewater Pur ation Waste Management Scanship AWP Advanced Wastewater Pur ation ® Scanship Food Waste Processing System ® Scanship Waste Recycling System ® Scanship WRU Water Reuse Unit ® Scanship Bio-sludge Treatment ® Scanship Waste to Energy MAP ® Scanship Incinerator System ® Scanship SWP Scrubber Water Foodwaste Grey & Black Water Reuse up to 20% Garbage Energy Recovery Glass & Tins Scrubber Wash Water Says Lindblad, “what we’ve learned is, how do you use space more effectively? We don’t want to get too big because it will limit our ability to do what we want to do.” Each newbuild will cost about $47 million and Lindblad’s team also includes Jensen Maritime, which is the naval architect, and Tillberg Design International, which will provide the interior design. Key elements of the ships, according to Lindblad, include larger cabins “but not too much larger,” an evolution of the concept of public areas, more efficient processes for launching passengers into Zodiacs and improved access to viewing areas. “These will not be massive technical evolutions,” he says. “We’re not putting helicopters on them. We’re taking what’s basically a very successful formula and tweaking it, with the advantage of being able to build from scratch.” One last thing, he notes “The new ships will be very, very nice, but I don’t want to set up an expectation that they’ll be groundbreaking. At the end of the day the ship is hardware, it has to do its job. You’ll still want to anchor close to shore, get people on and off quickly, navigate into fjords and bays. If a ship is too long to access one bend in one channel that is essential to get to a critical place with extraordinary opportunity to view grey whales, the passage is no longer possible.” P h o to cr ed it : L in d b la d E x p ed it io n s/ W a lt D en so n 36-37 .indd 3 20.2.2017 12.03
38 Cruise Business Review 1/2017 TECHNOLOGY EXPEDITION SEGMENT By Kari Reinikainen T he expedition cruise sector continues to grow with new orders and major upgrades to existing tonnage. The environment where many of these ships will operate for at least part of the year will set requirements very different from those that mainstream cruise liners face, and this will have to be taken into account when it comes to both the design and the operation of these vessels. Niels-Erik Lund , CEO of SunStone Ships in Miami that operates expedition cruise ships and which has produced the concept for a new design, says that a key issue with expedition cruising is that the ships need to have a long range of operation. Tank capacity for both fuel and water has to be substantial, while desalination plants must be able to make sufficient amounts of fresh water to cover the consumption onboard, as supplies from ashore are not available every few days. Dry stores, refrigerator and freezer capacity will to have to be enough to store food for passengers and crew for 20 days, he told Cruise B u s i n e s s Review. TOUGH CONDITIONS, LONG VOYAGES SET HIGH DEMANDS ON EXPEDITION SHIPS Waste management is another issue that has to be looked at with a magnifying glass, said Henrik Badin , CEO of Scanship in Norway. “The passengers on these ships are not the regular crowd on Miami-based ships that want to have a party in the Bahamas,” he pointed out. “They want to see the engine room to make sure that there is no pollution from there. The passengers on expedition ships are very concerned about these matters,” he said, referring to conversations he has had with owners of this kind of tonnage. Solid waste will not be incinerated, but rather sorted, disinfected and then frozen and stored onboard for delivery ashore once the ship reaches a port that can handle waste properly. This means that the vessel will have to have enough space to keep it onboard until the ship reaches such a port, and the frequency of such calls can be significantly lower than in the case of mainstream cruise ships. Badin said that the regulations still leave room for individual owners to decide what type of equipment they want to choose for their newbuildings. He added that it was not just a matter of regulations, but the fact that owners are aware of the concerns that many cruise passengers have about the environment which drives green technologies forward. Scenic Eclipse cutting edge Scenic, the Australian company that is building the 16,500 gross ton expedition mega-yacht ms Scenic Eclipse in Croatia, says in a presentation video that the ship’s wastewater management system ensures zero emissions into the waters where it will operate, while the engines are designed to exceed the demands of new pollution regulations that are to be introduced. It will have four engines in two separate engine rooms for safety; everything should function normally with just one engine room in use. All key functions will be duplicated for safety, and the ship will have a twin hull to prevent pollution in case of an accident. Food storage and preparation will be in separate compartments, while a second bridge will be provided to serve as a backup as well. As anchoring can damage the seabed, the ship will be fitted with a Dynamic Positioning System (DPS) together with stabilizers that eliminate movement when the ship is not moving, which should ensure the comfort of those onboard when the ship is stationary Henrik Badin Niels-Erik Lund P h o to cr ed it : S u n S to n e S h ip s 38-43.indd 2 20.2.2017 12.16
rolls-royce.com Propulsion systems optimised for the mission and the environment Rolls-Royce is widely recognised for its propulsion system solutions for a broad range of vessel types. These comprise propellers and thrusters, diesel and gas engines, stabilisers, rudders, steering gear, automation and control systems. We have a strong focus on research and development and our hydrodynamic research centre offers a unique resource which enables us to deliver system solutions fully optimised for the vessel´s operation. Trusted to deliver excellence C& P_ Pr op ul si on _1 _1 _0 12 01 6 38-43.indd 3 20.2.2017 12.16
New range of propellers Technology in the Arctic shipping sector is moving ahead with new products coming to the market every now and then. But it is not just cruise shipping that is looking at the high latitudes as a new business opportunity – cargo shipping and offshore oil and gas production are eyeing their prospects in the Arctic as well. Propellers for ships that operate in harsh ice conditions must, obviously, sustain quite a lot of punishment without losing blades or being otherwise damaged. Traditionally, these propellers have been made of steel rather than bronze, which is the material used to make propellers for open-water conditions. However, steel propellers cost more than ones made of bronze, which is a disadvantage. Tevo Oy, a Finnish company, has introduced a range of bronze propellers that are designed for use in ships that operate in harsh ice conditions. Following a major research-and-development project, the company has introduced this new range of propellers that has been tested in the northern Baltic Sea. It meets the requirements of the Finnish-Swedish iceclass 1 A Super and the Polar Code iceclass 6, which are the highest levels in each respective category. Each propeller is purpose-made for the ship in question and optimized for either energy-efficiency or the ability to cope with ice conditions. In tests that were conducted in the northern parts of the Baltic, the test ship faced ice ridges estimated at more than seven meters high and solid ice that was 80 centimeters thick. When the test ship sailed astern, the loads on the propeller were much higher than in normal conditions when the ship sailed ahead, which meant that the bronze propeller could be exposed to extremely challenging conditions. The results showed that the bronze propeller’s energy efficiency and lower noise levels compared to a steel propeller could be proven, the company said in a statement. ICE-NAVIGATION TRAINING ICE-NAVIGATION TRAINING 40 Cruise Business Review 1/2017 The Aboa Mare Training Center in Finland has provided training in ice navigation since 2007. During 2016, several new training courses and workshops were added to the training portfolio. For example, training for polar waters is now available. This training fulfills the requirements of the International Code for Ships Operating in Polar Waters, also known as the Polar Code, which took effect on 1 January 2017. CHRISTER GORSCHELNIK, a Captain by training himself, dropped in to find out what this training actually includes. Tevo has introduced a range of new propellers Although technology itself is important, it must be fair to say that a simulator can only be as good as the training staff P h o to cr ed it : J a n i V u o ri o 38-43.indd 4 20.2.2017 12.16
Aboa Mare Maritime Academy and Training Centre Juhana Herttuan puistokatu 21, 20100 Turku, Finland Ice Navigation Courses in Accordance with the Polar Code Explore more courses and sign up >> e Explo Bridge Simulators at the Training Centre: e.g. Sperry & Platinum e: • Polar Code Courses For ships operating in ice covered waters. The basic level and advanced level courses are three-day courses. In addition, we offer a combined • OSC Course The course is focusing on coordinating SAR tasks • Theory and simulator exercises focusing on the bridge resource management. Active task based training where communication makes the difference. • Participants will gain an essential understanding and casualties. • Advanced Shiphandling Course Challenging manoeuvring exercises in simulator environment. Training can be done with Azimuthcontrols and tug boat exercises are possible. Cruise Business Review 1/2017 41 A boa Mare is one of the most advanced centers in the world for training seafarers to operate vessels in severe ice conditions with the Azipod propulsion system. The Aboa Mare simulator systems allow using from one to three such propulsion units in training situations. I had an opportunity to follow ice-navigation training Captain Magnus Winberg, an instructor at Aboa Mare, as he trained six deck officers on two simulator bridges to operate a 300-meter-long and 50-meter-wide LNG tanker, designed to carry natural gas from Sabetta in Russia to Europe and the Far East. The vessel has a double-acting function, which means that it can also proceed stern first, significantly improving its ice-breaking capability compared to steaming bow first. As a result, the vessel has two bridges, one facing forward and another astern, both of which have identical navigation and other equipment. The vessel does not have side thrusters, which are not required, because the Azipods also perform the function of thrusters. At the beginning of the training session, the trainees had difficulty in synchronizing the performance of the Azipods so that their position and power would be optimized to make the vessel proceed in the intended direction. After almost an hour of practicing, arrivals in port and departures from them started to go well, although Winberg from time to time increased the demands on his trainees. This is because in real life, surprises can arise and then the master will have to make quick decisions and put them into practice. The purpose of the training session was to give the masters the tools they need to solve problems as they occur. Aboa Mare ice-navigation simulators The above-mentioned simulation training was performed using the NTPro 5000 ship simulator, which includes an ice-navigation module. Aboa Mare is, through the ASTP-project (Arctic Simulator Training Program), involved in developing a new type of ice-navigation simulator in cooperation with Aker Arctic Inc.’s simulator development team, Simulco Oy and Image Soft Oy. This simulator is expected to be the foremost ice-navigation simulator when it is completed. It has already been used for training officers of the new Finnish icebreaker Polaris, built by Arctech Helsinki Shipyard, on how to operate their groundbreaking new vessel. Aboa Mare has more than a decade's experience of ice-navigation training. Every member of its training staff involved in ice-navigation training is a captain who has long-term personal experience from operating vessels in ice conditions aboard both icebreakers and merchant vessels. Consequently, the staff is fully versed in the capabilities of the simulators, which are being further developed to present even more challenging conditions. Finland has a lot of competence related to operating ships in ice conditions. However, the ice on the coasts of the country is single year and therefore not as hard and thick as multi-year ice, which seafarers will encounter in the Arctic and Antarctic. The simulators allow for adjusting the thickness of the ice to the size of the vessel, the handling of which is being simulated. Ice behaves in the same way in all parts of the world, and the thicker the ice, the more power and displacement you will need to proceed through it. The equipment allows for the simulation of encounters with solid ice, ice ridges, icebergs, growlers and drifting ice fields that cause ice pressure against the hull of a ship, plus a situation in which the bow of the vessel is stuck in solid ice and the stern in a drifting field of ice. Vessels with inadequate engine power and insufficient ice-strengthening have been badly damaged by ice pressure. There have even been cases where ships have been lost, as vessels stuck in ice have sunk as masses of ice have risen on the deck and caused the vessel to founder. The simulators also make it possible to create more challenging conditions by mimicking snow storms and icing in hard wind and below-freezing conditions (icing results from the spray of water in heavy weather conditions at below-freezing temperatures.) This will quickly result in ice formation on the superstructure of a vessel. A significant ice load will reduce the stability of the vessel concerned, and it may even result in loss of stability and capsizing of the vessel unless the ice is removed from decks on time. “On icebreakers, 38-43.indd 5 20.2.2017 12.16
42 Cruise Business Review 1/2017 decks are kept free from snow and ice by placing panels heated by electricity to places where the crew frequently go,” said Esko Mustamäki, Managing Director of the Arctech Helsinki Shipyard. Officers must be aware of the dangers of icing when their ship sails in heavy weather conditions with the temperature well below the freezing point. During my own time at sea I have faced icing, and I must say that it was not a pleasant experience. Ice-navigation level of training Chapter 12 of the Polar Code sets the levels of manning and training that are required. Its goal is to ensure that ships operating in polar waters are appropriately manned by adequately trained and experienced personnel. The Polar Code certificate is mandatory for all officers sailing in Arctic and Antarctic waters, while the level of training depends on ice conditions in the area to be operated. Ice conditions and level of training Ice-free: No training required. Open water: Basic training for master, chief mate and officers in charge of navigational watch. Other waters: Advanced training for master and chief mate; basic training for officers in charge of navigational watch. The Polar Code also stipulates that deck hands must be trained to handle their responsibilities in ice-covered regions at high latitudes. This includes keeping the decks free from ice and ensuring that all equipment is working even when temperatures fall well below freezing. Local legislation dictates whether an icebreaker should accompany the vessel and whether an ice pilot, with a good capability to analyze ice fields in the path of the vessel, should be carried onboard. Those who have operated vessels in northern waters are usually well acquainted with navigating a vessel through ice, and therefore, they know how to deal with simulated events. Other trainees, who only have experience with open-water navigation, will face several situations that they probably had not encountered at all prior to the start of training. Consequently, the training staff will have to dedicate a lot of time to improving the skills of these trainees. The Polar Code course of Aboa Mare allows simulating and practicing events on various types of ships. The training can include icebreaker assistance to free a merchant vessel that is stuck in solid ice or an ice ridge or a ship that is being pressured by ice. Simulations can also include sailing in a convoy in the wake of an icebreaker and towing of a merchant vessel by the icebreaker. A towage operation in particular is very challenging for most trainees, both the officers and crew, and this is especially true for those that have not experienced this before. The icebreaker will pull the merchant vessel to the towing fork in its stern by a powerful winch. This makes the two ships almost like one unit and is one of the most effective ways to get a vessel that has been stuck in ice on the move again. Training with Azipods Training for ice navigation with Azipod propulsors has been developed together with ABB Marine and Ports, partly using knowledge and skills acquired in delivering specialized training for Azipodequipped cruise ships since 2010. Experience has shown that Azipods are at their most effective in ice conditions in the doubleacting mode, when you sail the vessel stern first through thick ice, ice ridges and all kinds of heavy ice conditions. Then the propellers will cut and flush their way through the ice much more efficiently than if you ram the ice wall bow first. “Our experience shows that a vessel fitted with Azipods can be operated much more efficiently, and lowering the maintenance costs, provided that you know how to adjust the pods correctly in relation to the direction of the vessel. This too will be practiced in the simulator,” Winberg said. It is impor tant to train officers to operate a vessel that has Azipods, even in open-water conditions, because of the handling qualities of these vessels. “In narrow fairways, a ship fitted with pods handles differently in turns than a traditional vessel that is fitted with a rudder,” said Mikael Hildén, who is a Captain with experience operating large cruise ships of both types. “The center point of the vessel, around which it turns, is located at a different point compared to a ship with a traditional propulsion system, in which it lies halfway between the bow and stern. When there is a turn in the fairway and you alter direction, pods will push the stern of the vessel to the side of the midpoint of the fairway. During Tevo propeller on a full-scale tests on the Gulf of Bothnia 38-43.indd 6 20.2.2017 12.16
Cruise Business Review 1/2017 43 the turn, the stern does not follow the bow in the midpoint of the fairway; in other words, the stern of the vessel will be significantly off the center line of the fairway on one side, even at the time when the bow has reached the midpoint of the fairway on a new course,” he continued, adding that this should be taken into account; otherwise, there is a risk that the stern may touch the side of the fairway. Polar regions are environmentally sensitive, and in this writer’s opinion, when a cruise ship reaches a place in polar waters where it will stop, it would be better to rely on a Dynamic Positioning (DP) system than on dropping the anchors. This will prevent damage to the seabed. However, Winberg said that in drifting ice conditions, the DP system will probably not work. It quite simply cannot deal with ice, an element that it does not know, and therefore semi-automated operations must take over. The DP system would react to ice as if it was influenced by wind and/or current, trying to keep the ship stationary. However, the only way this would work is if the ship is turned bow first into the drifting ice. If the ship is at even a small angle, the force of the ice would overwhelm the system, it having not enough propulsion power to keep the ship sideways (not to mention that the hull of the ship is not designed to being pushed sideways in the ice). It is unlikely that cruise ships will be built with such powerful DP systems in the future so that they could employ them to remain stationary under ice conditions. Winberg, who is well acquainted with the rules of the Polar Code, pointed out that requirements increase the further into cold regions that you want to sail. In addition, Canada has introduced very tough requirements of its own. Chapter 8 of the rules say, among other things, that adequate thermal protection shall be provided for all persons onboard, taking into account the intended voyage , the anticipated weather conditions – temperature and wind – and the potential immersion in polar water, where applicable. All equipment must be certified according to the Polar Code. Detecting ice conditions In polar regions, there will be many kinds of weather during the winter season, and authorities of coastal states follow the movement of ice and its thickness, both by using satellites and flight reconnaissance. This information is then passed on to ships, and weather forecasts also include warnings about the risk of icing. In the past, icebreakers used to conduct their own short-range reconnaissance using helicopters, which are likely to be replaced by drones due to their lower cost. There is good radar equipment on the market that is capable of detecting ice, and a specialty software package can be linked to ice radar, which can analyze the ice and detect ice ridges and drifting ice. Infrared cameras are also a good tool for navigating in ice conditions. Open water is warmer than frozen water, and thin ice is warmer than thick. This equipment can also detect growlers. However, it is the master and officer of the watch that will have to analyze the information gathered from various sources and act accordingly. Despite the sophisticated equipment onboard ships these days, the master's experience plays the greatest role in navigation in ice-bound waters. Ben Lyons, CEO of EYOS Expeditions, commented on the situation regarding training by saying: “I think getting junior officers that are qualified – in that they have taken the course – will be able to be met, but of course you’d like to see more practical experience than just a course. The real crunch will be with senior officers. You really need captains and senior officers on expedition ships that understand ice, that have been to these anchorages before and that have seen all the challenges that polar regions can throw at you. A course is not sufficient, and I think those senior officers with the appropriate level of practical experience will be in very high demand indeed.” Niels-Erik Lund, CEO of SunStone Ships in Miami, added: “There is a lack of ice masters, so we do have a training program to get more ice masters for our fleet.” The heavily iced front of Finnjet, in its time the fastest cruise ferry in the world with a 30.5-knot cruising speed, during the very hard ice winter of 1986-87 in the Baltic Sea. Photo: Silja Line 38-43.indd 7 20.2.2017 12.16
TECHNOLOGY SCRUBBERS I ndeed, Bud Darr , Senior Vice President of Technical & Regulatory Affairs for Cruise Lines International Association (CLIA), told Cruise Business Review that the most important factors to consider regarding scrubbers are effectiveness, reliability and the size of components. When it comes to retrofitting existing older tonnage, he said smaller systems might be installed “as long as there is time to cover the costs.” The fact that each system has to be modified for a particular ship makes standardization difficult and hence has an impact on pricing – unlike the more standardized advanced wastewater treatment systems. Tom Strang , Senior Vice President of Maritime Affairs for Carnival Corporation & plc, had this to say: “We have gone through the development phase, we need to enhance the reliability. We have done a lot, but there INTEREST IN EXHAUST SCRUBBERS GROWS INTEREST IN EXHAUST SCRUBBERS GROWS The International Maritime Organization (IMO) decision to implement a global limit of 0.5% sulphur on all ships come 2020 will give further impetus to the development of scrubbers/exhaust-gas abatement systems. It may even bring new suppliers into the market. In terms of the cruise ship industry, a number of companies have been working on and installing these systems for a few years, but there is plenty of room for continuing innovation and expansion. By Susan Parker 44 Cruise Business Review 1/2017 Valmet exhaust outlet Langh Tech closed loop water treatment system 44-47 .indd 2 21.2.2017 10.09
WATER fuelling cleaner shipping BOS Emulsified Fuel System (EFS) Beyond proof of concept Find out who are already saving fuel with BOS EFS, go to www.blueoceansoln.com Less NOx meeting TIER II Less Particulate Matter PM 2-5% fuel savings Cleaner engine is still a lot to be done.” One thing that he is very keen to see happen is for the E u r o p e a n U n i o n t o resolve its i s s u e r e g a r d i n g o p e n l o o p systems and agree that they can be used. “The regulations allowed for open-loop when they came out, but the legislation from an EU perspective was lacking in clarity. We have [now] demonstrated that we meet all the existing requirements, and we would like to see clarity about using open-loop in port. We have provided a lot of data, and now we need to move on.” When it comes to suppliers, Yara Marine Technologies (YMT) explained to CBR that it was the first exhaustgas cleaning company to offer the inline scrubber in 2011 (and this was to a cruise ship). It has installed about 100 systems since, which includes 60 to cruise ships, and continues to do so. Peter Strandberg , CEO of YMT, commented, “We therefore have considerable experience compared to suppliers that came into the market at a later stage. We have more than 500,000 running hours proving our patented inline concept. We continue to focus on new product development, and we have always found ourselves a few steps ahead as the scrubber market has developed gradually over the last decade. The decision for global regulations from 2020 did not come as a surprise to us. We have been prepared for some time and feel we are ready to embrace the increased market for SOX scrubbers.” Laura Langh-Lagerlof , Commercial Director for Langh Tech Oy Ab (LT), said, “The [IMO] decision has increased the interest towards scrubbers, and as result of this, markets are clearly picking up again. The company is strengthening its organization in sales and marketing, in R&D and in manufacturing as well as in commissioning engineering in order to being able to supply and commission more projects during the year.” Meanwhile Valmet Technologies (VT) is employing new people to secure its ability to serve customers “when the now-increased interest towards exhaust scrubbing actualizes into delivery projects in significantly larger volumes than today,” said Juha Laukka , VT’s Product Manager, Emission Abatement Environmental Systems Business Unit. “We are also continuously seeking new possibilities by ‘tuning’ our scrubber system design to meet sometimes very detailed demands from individual customers.” The company continues to develop its worldwide network of equipment suppliers. “We don’t work with suppliers whose ability to perform is in doubt. We do help our good suppliers to grow with us.” Significant amount of investment While no figures were stated, it is clear that a significant amount of money is being invested to gear up for this latest challenge. Wärtsilä, for example, says that being a large organization, it has the capability of “ramping up.” With proven experience in delivering these systems, it also stated that it has a number of subsuppliers to call on should increased supply be necessary. Research and development is obviously key for VT, which has executed several R&D projects in this field during the past 10 years that have included actual real-life testing with equipment installed onboard marine vessels. “We continue on this path that has proven to be effective and highly valued by our returning customers,” Laukka said. YMT also has large resources to adapt to increased demand. “The biggest and most critical investment YMT is putting into this is continuous product development,” Strandberg said. “In 2016, we made Tom Strang 44-47 .indd 3 21.2.2017 10.09
46 Cruise Business Review 1/2017 some important new winnings that have continued to keep us in front of the competition. As the first company, we were able to develop, produce and certify an inline, multi-engine inlet scrubber that allowed one inline scrubber to clean the exhaust gas from multiple engines. The footprint reduction of this technological development is significant. In addition, as the first company we were able to combine an inline scrubber system with our own SCR system cleaning both the ships’ SOx and NOx. In our experience, continuous focus on R&D is key to succeed in this industry, and we must never stop to make improvements to our technology, listening to our customers and making sure we do everything in our power to understand what they need.” LT has moved into the cruise industry through demonstrating the quality and reliability of the technical solutions it has installed on cargo ships. It has put a big effort into product development “in order to match the needs of the cruise industry even better,” explained LanghLagerlof. “For the cruise ships, we have further developed the scrubber system to be as energy efficient as possible, and a new version of the scrubber towers has been designed to fit into the slim casings of the cruise vessels.” As well as further improving energy efficiencies, it will “develop the water-treatment units to be even more compact in size and simultaneously increase their capacity.” The company’s scrubbers and related closed-loop water-treatment systems have already been delivered to eight cruise vessels, both for retrofits and newbuildings. Half are fully commissioned, with the remainder being put in place this year and in early 2018. In the order backlog, there are three additional newbuildings to which the components will be delivered between 2017 and 2019. Its present customers are Norwegian Cruise Line (NCL) and Royal Caribbean Cruises Ltd. (RCCL). Meanwhile, VT said its total project base (cruise and cargo) so far includes 40 marine scrubbers treating exhaust gas from 90 engines, approximately 870mW of total engine power. It has delivered several projects to cruise companies including to RCCL and TUI Cruises. “We have also participated in development programs, which were initiated for a new vessel class even before the vessel order from the shipyard was signed,” Laukka said. YMT tops the bill on numbers supplied for both newbuildings and retrofits (60). Its customers include NCL, STX, MSC Cruises and Meyer Werft. Wärtsilä has installed or has on order about 55 scrubbers for cruise ships for companies such as RCCL and others. “We are working with most of our customers to make further improvements and to serve them as well as possible,” commented Heidi Paulsrud , General Manager EGC Sales Environmental Solutions, Wärtsilä. What type of scrubber? What type of scrubber will become the most popular was one of the questions CBR asked. In all the projects where LT is delivering the complete scrubber system or related closed-loop water-treatment system, it is a question of hybrid installations. However, Langh-Lagerlof noted, “We think that the closed-loop scrubber will become the most popular simply because it is the most environmentally-friendly solution, as all the washed particles from the dirty exhaust gas are first recovered and then taken to waste disposal ashore.” The company’s closedloop water-treatment system is based on membrane filtration and is also available to be combined with other manufacturers’ scrubbers. The amount of waste that is left over is very small, according to Langh-Lagerlof, as the company’s solution manages to extract almost all water from the scrubber sludge and the end result is dry black waste. “The highly concentrated dry sludge is unitized in IBC containers or barrels. The waste disposal is effortless and cost-effective. The trend is that always bigger engine loads are requested to be operated with the scrubber running in closed-loop mode. This is a logical development, as the cruise vessels many times sail in environmentally-sensitive areas where operating the scrubber in closed-loop mode is a sustainable solution,” she said. VT has delivered all types of scrubbers – closed-loop, open-loop, hybrid, dual-water hybrid – with each design tailored to a specific installation. However, Laukka commented, “We believe the versatility of different hybrid scrubbers will be the leading edge. The residual waste from the closed-loop process can be a challenge to many. We can offer solutions that keep the residue as pumpable sludge for easy hook-a-hose delivery to port. We can also provide solutions which convert the scrubber residue into recycled fuel for land-based industrial power plants. We believe the hybrid will remain the most popular,” he said, adding, “We clean the water and collect the waste in our system. The waste is delivered to an onshore facility by vessel operator. We have open-loop, closed-loop 44-47 .indd 4 21.2.2017 10.09
Cruise Business Review 1/2017 47 and hybrid scrubber systems in our portfolio. All three systems can be delivered with an I-SOx scrubber [inline version] or a V-SOx scrubber [u-type].” Although YMT can deliver all types of scrubbers, it sells mostly the hybrid system, which allows for both openand closed-loop depending on where the ship sails. “We predict that the hybrid system will be the most-sold system going forward,” Strandberg predicted. “The disposal of residual waste is done by removing the sludge from a special tank and shipping this to special waste containers on shore. These special waste areas are found in all ports. We use the latest membrane technology that significantly reduces the amount of sludge in the wastewater tank. The size of these systems brings challenges, especially when retrofitting into existing spaces.” LT said its system was originally developed for small cargo vessels where the space was very limited. As Langh-Lagerlof explained, “As a result, all the closed-loop water-treatment components are already very compact in size, and the scrubber tower has been further developed to fit in narrow engine casings in the cruise vessels.” In each case, the scrubber and water-treatment components are partly tailored individually, as each vessel has its own characteristics. VT is always trying to find the best fit for each vessel. “Our ability to design tailor-made solutions plays a key role in that,” Laukka explained. Wärtsilä states that it is always working towards minimizing footprint and power consumption. The largest system it has delivered is for 80mW and the smallest 8mW, but it can deliver systems down to 1mW. “We have one of the smallest footprints, designed for retrofitting. We have even retrofitted during operation of the vessel,” Paulsrud said. YMT markets itself as the provider of the smallest scrubber system. “We are always looking at ways to reduce the size of the scrubber systems, as we are very aware of the space issue on all vessels but especially cruise vessels and ro-pax,” Strandberg stated. “Both the 2016 launch of the multi-engine inlet and mini scrubber are examples of ways we have reduced the size even further. We are also the only scrubber manufacturer who can deliver scrubber design that uses magnesium oxide as alkali in closedloop. The amount of MgO needed compared to the hazardous caustic soda is a quarter less, and this also reduces the space needed for storage of the alkali. We also install our scrubber systems in the space where the silencer originally is placed, and as the scrubber works as a silencer also, this further saves space for the vessel,” he further explained. Who will dominate the market? In what is becoming an even more highly competitive arena, CBR asked each of the suppliers why a cruise line would choose them over a competitor. LT’s LanghLagerlof said, “The LT scrubber has several competitive advantages. One is the small diameter in-line scrubber tower, which is always tailored to fit in to the project in question. The company offers an efficient and a reliable closed-loop water-treatment system that cleans the water discharge to fulfil MARPOL Annex VI regulations. The scrubber results in a low operational cost, as there are no chemicals used in the water-cleaning [membrane filtration] phase, and the amount of sludge is very little after the sludge de-watering phase.” Meanwhile, VT’s Laukka said, “We can offer a system with a good fit at a competitive price. Together with Valmet marine automation, we can offer additional benefits for ship operators. We are a major player in this field, and thus we can secure a reliable delivery for complete vessel series as well as for individual ships. This is thanks to our technological know-how, our existing capacity and our reliable supplier network.” For Wärtsilä, experience and presence are the key factors, Paulsrud said. “We also see how we in Wärtsilä can combine our knowledge to optimize the product for our customer, for example the integration of NOx, SOx, PM and CO2.” Last but not least was YMT, which pointed to all the developments made making it “a great choice for any shipowner that is concerned about space requirements and having a simple and easy system to operate.” To this, the company’s CEO Strandberg added: “In addition to always having a strong and dedicated focus on continuous product development, we also produce our scrubber in the highest quality stainless steel. That means we can offer extended guarantees on the scrubber tower.” All YMT scrubbers have the capacity to clean exhaust gas (sulphur content up to 3.5%) down to the strictest ECA requirements of 0.1% which makes them in full IMO compliance with the worldwide ECAs as well as being ready for the 0.5% global cap. Easy integration • Small size scrubber tower replacing the silencer • No need for sludge tank • No need for holding tank Reliable system • E?cient membrane ?ltration cleans the process water beyond the regulations • Automatic control system is easy to operate • Water treatment system proven in land based and marine applications Low operational cost • Minimal amount of dry sludge waste to be disposed ashore • No chemicals used in the water cleaning phase (membrane ?ltration) • High energy e?ciency through the small scrubbing water ?ows • Low fresh water consumption in closed loop mode Langh Tech Oy Ab Alaskartano, 21500 Pikis Finland, +358 2 477 9400 Aiming for blue seas and bright sky SOx Scrubbers Wartsila scrubber system on a tanker 44-47 .indd 5 21.2.2017 10.09
BOLIDECK GLOW OFFERS A LUMINOUS DECK SOLUTION 48 Cruise Business Review 1/2017 B olidt, has launched a unique glow-in-the-dark decking solution for the cruise industry, whose luminosity by night employs solar energy stored during the day. The decking and flooring specialist has released Bolideck Glow to coincide with Seatrade Cruise Global 2017, the largest cruise event on the passenger shipping industry calendar. The new solution, launched following a two-year research-and-development project at Bolidt’s Henrik Ido Ambacht innovation center, can be integrated with the Bolideck Select and Bolideck Future Teak decking systems that are already used extensively on cruise ships worldwide. Jacco Van Overbeek , Director of Bolidt’s Maritime Division, explains, “We are the first company in the world to develop a luminous decking material for the cruise industry. Bolideck Glow is another example of the way Bolidt allows ship designers greater scope to create exciting new concepts that can be installed within any pattern they have in mind. Now, they can extend their thinking to take in the effects luminous flooring can create in the dark.” As well as being eye-catching and aesthetically striking, Bolideck Glow offers energy-efficiency savings by reducing lighting requirements. When used outside, it can store solar energy generated by day that can be converted into exterior lighting at night. It could also bring safety benefits, Bolidt points out, by illuminating escape routes and signage, as the luminous material ensures decking areas remain highly visible in the dark. Already, a contract for Bolideck Glow has been placed by Royal Caribbean International for some of its newest vessels. RCI will fit the material on both ms Harmony of the Seas before the end of 2017 and aboard the fourth ship in the Oasis class – likely to be named ms Symphony of the Seas and due for delivery in spring 2018 from STX France. In both cases, the product will be installed in a 350-square-meter area at the top of the 10-deck Ultimate Abyss slide, which will be available for passengers to use at night as well as during the day. “RCI’s request for a glow in the dark material has coincided with our development of Bolideck Glow,” adds Van Overbeek. “This demonstrates how our long-term customers look to us for new decking solutions, while our continuous development program means we are ready to respond. It’s perfect timing, and highlights how we can help designers to convert the wishes of owners into new concepts and innovative features.” The new luminous decking product is suitable for use in numerous areas onboard cruise ships, including jogging tracks and as signage, as well as around key features and attractions to ensure they make maximum impact. Bolidt points out that Bolideck Glow can also be poured into a variety of shapes and designs used for Bolideck Future Teak and many other systems available from the company. 48-49 .indd 2 22.2.2017 12.02
Cruise Business Review 1/2017 49 F ounded in 2002, Finnish-based Team Electric has grown rapidly based on its core values of being innovative, confident, trustwor thy and easy to do business with. “And we always deliver on-time,” stresses Team Electric’s Managing Director Martin Pedersen. The company’s multinational workforce has a wealth of experience in electrical installation on some of the most famous ships in the world, both newbuilds and retrofits. Simply put, Team Electric does all the electric work. “We like to get in at a very early stage of a project and discuss with the owner and architects and influence lighting decisions; for example, as on the Mein Schiff class,” comments Pedersen, adding that Team Electric also worked on ms Mein Schiff 2 in Germany as a retrofit. In the complicated passenger shipbuilding world, Team Electric is the electrical subcontractor. “Most turnkey contractors when they get a project like cabins or public areas want to co-operate on the electrical part, as it can be complicated with so many different systems, all integrated to ships’ systems,” Pedersen explains. “With our lean organization, we are flexible and can do full electrical turnkey project packages covering design, procurement and installation ranging from small to large projects worldwide. As we work with a large number of Finnish and international turnkey contractors, yards and shipowners – who know us well – know [that] once we are contracted, they can forget about the electrical segment and get on with their own area of expertise. They know the electrical part will be ready on time, on budget and to standard, even if it would cost us extra – it is very important for us to keep a promise.” Team Electric is currently involved with eight different newbuildings from super-yacht, mega-yacht and expedition ships to some of the biggest cruise ships being built in the world for customers like Hapag-Lloyd, Carnival, Costa, MSC, TUI and private owners. All is controlled from Finland with various site offices at the biggest work sites. As a result of its worldwide marine partnership with Desinfinator – the maker of products for the removal of bacteria, mold, yeast, airborne particles and odors from indoor air – Team Electric is working directly with shipowners who are retrofitting the systems into galley hoods to create less grease and into casinos to remove the smell of smoke and create fresh air from a mix of reused air. While less glamorous, retrofits are no less important, and Team Electric has traveled the globe to where the main retrofit hubs are located in the Bahamas, Singapore, and Cadiz, but often Team Electric works onboard ships while they are in service. A typical scope would be adding more cabins to existing ships or renewing existing areas like galleys, restaurants, casinos, suites and cabins. As shipbuilding subcontracting is a cyclical business, Team Electric must adapt to conditions, and the company has built up a network of professionals it can call on in addition to its own workforce. “For some projects, we have had up to 250 electricians on the same project at the same time, but we also have projects where only one electrician is needed. But we are very project-based, and a mix of employees plus contractors depends on the project size,” Pedersen says. GETTING WIRED BY TEAM ELECTRIC MKN Maschinenfabrik Kurt Neubauer GmbH & Co. KG Phone: +49 (0) 53 31 89-207 km@mkn.de | www.mkn.eu MKN Galley Solutions TOP QUALITY ON BOARD Enjoy Cooking with FlexiChef and FlexiCombi. 48-49 .indd 3 22.2.2017 12.02
50 Cruise Business Review 1/2017 SHIP PREVIEW NORTH AMERICA MSC DOUBLES DOWN ON MIAMI Currently under construction at the Fincantieri shipyard in Monfalcone, Italy, the MSC Seaside will soon become one of Miami cruising’s next big things when MSC Cruises makes the ship its first to be christened and launched in Florida on December 21, 2017. With the MSC Seaside joining the MSC Divina sailing year-round from the homeport, MSC is not only doubling down on the North American market but tripling down, as it was also announced that a Meraviglia-class ship would be added come 2019. By Jason Leppert A t a coin ceremony and traditional keel laying event for the Seaside’s sister ship the MSC Seaview, Pierfrancesco Vago , MSC Executive Chairman, said, “MSC Cruises will deploy three cutting-edge ships in North America in the 2019/20 winter season, including a Seaside and Meraviglia class ship… This way, our most advanced vessels will be deployed there, in the world’s most important cruise market, ready to welcome U.S. and international travelers alike.” That means three distinct classes of MSC cruise ships will set sail from Miami: a Fantasia-class ship, a Seasideclass ship and a Meraviglia-class ship. While the ms MSC Seaside is dubbed by the line as “the ship that follows the sun,” the Meraviglia vessels are specifically designed as an all-weather class of ships, and there is research being conducted to determine where the vessels might also potentially be deployed in the future, such as Canada/New England or even Alaska. Before then, the MSC Seaside is set to shake things up in the Caribbean. When interviewed individually, MSC Cruises CEO Gianni Onorato said, “In the past, MSC was very much focused on Europe and the Med, thanks [to] God because we became [a] market leader for these, but we’ve always not been in the right way present in the North American market, and I think this can be the ship that in the Caribbean marks the different way – a different presence – for MSC.” Now sailing roundtrip from Miami is the ms MSC Divina, which features a decent amount of deck space and a single waterslide, but the MSC Seaside is poised to raise the bar much further on behalf of sun worshipers and thrill seekers alike. While many other megaships have lost sight of the sea, the Seaside is set to better feature it. At the shipyard, a select group of journalists were given a tour of the ship while still being built, and already the outdoor promenade deck and upper areas are impressively expansive. In fact, 3.2 square meters of open deck space will be available per guest onboard, and the promenade alone is seven meters wide. Wrapping 270 degrees around the ship, the boardwalk will accommodate al fresco dining and entertainment opportunities with completely uninterrupted views. Half of the waterfront’s width extends entirely above the lifeboats and davits, and two infinity bridges will span the forward and aft promenade with glass-f loored catwalks f lanking the ship’s glass-enclosed atrium. Pierfrancesco Vago 50-51 .indd 2 20.2.2017 12.20
Cruise Business Review 1/2017 51 Culinary options Among the culinary options for passengers will be a range of regional cuisines. “[Restaurants range] from Asian, Pan-Asian, typical sushi or teppanyaki to a typical North America or typical American steakhouse, Butcher’s Cut – which obviously is not being designed or managed by us, but we have asked the help of experts in America,” Onorato said. “We have a fish restaurant – Mediterranean typical fish restaurant – with fish flown over from Europe every week.” In another change of pace, there will be two buffets onboard, one at the promenade level and another at the top of the ship. At the stern, the promenade will step down a deck to a pool, and two glass express elevators will quickly connect the lower boardwalk to the sun deck above. Only the suites in the ship’s dramatic condo-like aft tower section inbetween will be able to call the cars as they ascend and descend. Even just as bare steel for now, the circular and oval shaped sun decks cantilevered over the superstructure below create an unmistakably massive platform for plenty of sunbathers to soon lounge about. Allowing better distribution of venues as well as shipboard weight is a centrally located smokestack and engine room which creates a symmetry of mechanical systems and better guest f low overall. Behind the funnel will be a shaded waterpark complete with four waterslides, including a slide-boarding variety that will combine aquatic thrills with video game interactivity and scores, and above it all will be a pair of 120-meter-long ziplines returning back to the stern. Indications of modern design Inside, very little is complete thus far. All the blocks are in place, but the ship is primarily still a shell for the time being. Scaffolds fill the atrium and theater volumes, and interior partitions are beginning to be outlined – with some walls starting to take shape in the spa facility. Cabins are beginning to be installed as well, and a warehouse mockup was presented to better illustrate final private accommodations plus some public decor fixtures, columns and surface paneling, all of which indicate a modern design. What’s more, MSC Cruises has been developing its own app-based solution similar to Carnival Corporation’s recently announced Ocean Medallion technology, but its fully-integrated interactive guest experience enhancements will roll out prior to those coming to Princess Cruises. Its smart device and wearable equivalent will first launch on the ms MSC Meraviglia in Europe in June 2017 and will also be available on the MSC Seaside in December 2017. The unnamed technology – being created in collaboration with the likes of Samsung – will encompass check-in at embarkation, a flexdining model, immersive photo gallery, kid locating and wayfinding, multimedia tables for kids and a digital daily program accessible via mobile app, tablet app, crew tablet app, iTV, digital signage, browsers and wearables. There will also be facial-recognition cameras positioned throughout the ship designed to identify and service guests according to their personal preferences. The end goal for Onorato is as follows: “We want to be an additional choice for the customers, giving a different product. The product is made not only by a different ship, but also by more international clientele – although this ship more than others is specifically addressed to the North American clientele – and [to] give an opportunity to really be an experience much closer to the sea. This very low promenade embracing the ship, with all these restaurants in and out, will give a sort of Mediterranean, European flavor – but at the same time you’re in the Caribbean.” MSC Seaside is currently under the outfitting stage at Fincantieri's Monfalcone shipyard A model cabin 50-51 .indd 3 20.2.2017 12.20
www.meyerturku.com Meyer Turku and Meyer Werft are the forerunners in innovative, energy ef?cient and environmentally friendly cruise ships and ferries. Tallink Megastar – an LNG powered fast ferry with record braking speed and power ef?ciency level was delivered ready to the seas in January 2017. Innovation and Technology 52-61 .indd 2 24.2.2017 12.56
Cruise Business Review 1/2017 53 SPECIAL REPORT MEGA Star MEGA Star MEGA Star Tallink’s new Helsinki-Tallinn ferry Megastar has introduced numerous innovations to short sea ferries. Cruise Business Review spoke to representatives of both the shipyard and the interior designers about the ship. By Kalle Id NEW INNOVATIONS SHAPE THE P h o to cr ed it , a ll p h o to s: K en n y L eo n g 52-61 .indd 3 24.2.2017 12.56
54 Cruise Business Review 1/2017 D elivered in January, the ms Megastar is the first newbuilt ship to enter service on the Helsinki-Tallinn route in nine years. It is also the largest fast cruise ferry on the line by some margin, with a gross tonnage of 49,134, a passenger capacity of 2,824 and a lane meter capacity of 1,970. The ship features an array of new innovations that sets it apart from older competitors. Technical innovations Kari Toivonen , the ship’s Project Manager at Meyer Turku, describes the Megastar as “a significant ferry project, representing a modern and environmentally friendly fast passenger ship.” While the Megastar is a new design, it was shaped by numerous older ferries built by Finnish yards. “We used experience of previous Tallink newbuildings, especially the Star [the Megastar’s running mate] as a reference for the conceptual design of various technical solutions,” Toivonen explains. “Furthermore, we have been able to draw from the experiences of using LNG fuel onboard the Viking Grace and the border patrol vessel Turva when designing and building the Megastar.” Important new innovations include the hull form, which has been refined for economic operations, including sailing through winter ice while maintaining the 27-knot service speed required for a two-hour crossing time. To meet the strict SECA restrictions in effect on the Baltic, the Megastar is equipped with five LNG/MGO dual-fuel engines from Wärtsilä. Unlike on the previous Turku-built LNG-powered ferry ms Viking Grace, on the Megastar the LNG tanks are inside the hull below the car decks, rather than on the outer decks aft. The automated control systems for not only the power plant but the entire vessel are Valmet DNA, delivered by Valmet AS. These monitor and control the machinery systems and electric power management, while a separate emergency shutdown system is also based on Valmet DNA technology. SPECIAL REPORT The twin-level Traveller Superstore is without a doubt the most impressive space onboard Directly adjacent to the entrance lobby are the extra-cost Business Lounge (pictured) and Comfort Lounge Kari Toivonen 52-61 .indd 4 24.2.2017 12.56
Cruise Business Review 1/2017 47 WÄRTSILÄ CONNECTS THE DOTS Wärtsilä is the world leader in shipping, with the only complete marine offering. It includes all the electrical and automation solutions you may possibly need. Because we know how all the parts are made, we are the best at integration as well. We are very serious about fun – and know how to ensure the optimal experience at sea or on land. THANKS TO WÄRTSILÄ FUNA, FRED DANCES FOR THE FIRST TIME SINCE 1984 WÄRTSILÄ HAS ALL THE ELECTRICAL AND AUTOMATION SOLUTIONS YOU NEED WE ARE THE RELIABLE INTEGRATOR WITH COMPELLING AUDIO AND STUNNING VIDEO SYSTEMS We take fun seriously Read more at wartsila.com/funa Meet us at SEATRADE CRUISE GLOBAL, 13 16 March 2017, Florida, USA, Stand 407 52-61 .indd 5 24.2.2017 12.56
www.antti-teollisuus.fi | tel. +358 2 774 4700 The guests and crew sleep exceptionally well behind our doors, which are the quietest on the market. They are also safe, stylish and of high quality. ANTTI doors guarantee that you wake up refreshed and ready for the new day on all the oceans of the world, from deluxe cruise ships to offshore applications. For the first time on the Helsinki-Tallinn route, both cars and lorries can be loaded and unloaded simultaneously on two levels, saving time while in port. In addition to the Megastar being built for twin-level loading, its running mate the ms Star has also been retrofitted with the same capability. As a novel feature, the Megastar has a separate garage, which passengers can freely access while the ship is underway thanks to additional safety precautions and limiting the number of cars to just 100 (when the space could accommodate 150 cars fully loaded). The lower level of the onboard shop has direct access to the garage, doing away with the need for passengers to carry their heavy purchases for the duration of the journey. SPECIAL REPORT The Chef’s Kitchen à la carte restaurant shares the same entrance with the buffet restaurant At the more casual end of dining options is the Fast Lane cafeteria, the sitting areas of which have been divided into smaller segments with the use of different color schemes 52-61 .indd 6 24.2.2017 12.56
In a feature similar to the ms Spirit of Britain and ms Spirit of France, built by what was then STX Europe’s Rauma yard, the state-of-art “all-MES” solution provides the safety level equivalent to that reached by traditional prescriptive requirements. Interior design Reflecting the fact that Finns make up the largest passenger group on the Helsinki-Tallinn line, the Megastar was not only built at a Finnish yard, but its interiors are the product of two Finnish interior designers, dSign Vertti Kivi & Co and Aprocos. While neither is a stranger to maritime in52-61 .indd 7 24.2.2017 12.56
terior design, Aprocos has been the most prolific Finnish ship interior designer of the 21st century, whereas the Megastar is only the third maritime project for dSign, whose designers were eager to challenge the traditions of ferry interior design. “Tallink are passionate about renewing the ferry business and doing things in a different way,” said Samuli Hintikka , Head of Design at dSign, which was responsible for not only the interiors of most public spaces but also their layouts. “They wanted wild, new ideas.” dSign shared this passion and wanted to update the ferry and its offerings following the model of contemporary on-shore venues such as shopping centers, cafés and the like. All this had to be designed while remembering the constraints placed by the service, as Hintikka elaborates: “The two-hour crossing was the most challenging part of the design work. How do we get the basic layout to work so that people don’t stay in just one spot, but are stimulated to walk around the ship and do different things?” This has been solved by turning the entrance area into a crossroads, with passageways leading to different areas. As the route caters to various market segments, ranging from businessmen to blue-collar workers to tourists, different parts of the ship are designed to appeal to different customer groups. “We have several different ‘experience areas,’ which people will hopefully find interesting and will entice them to return,” Hintikka explains, adding that there is no overarching design theme to the ship, except perhaps being a “a bridge between two cultures, a meeting place between Finland and Estonia.” Of course, a ship’s primary purpose is to make money for its owners, and well-designed interiors can help with this. “Although for many the trip is a so-called booze cruise, maybe they can still be inspired by the surroundings. If you're buying a beer but the venue is inspiring, why not make it a nicer moment and go with sparkling wine instead? It's my belief that this is what we can do with interior design – stimulate the customer to use a bit more money or choose different kind of products.” A practical example of this is the placement of the Chef’s Kitchen à la carte restaurant adjacent to the buffet restaurant entrance in order to entice passengers planning to dine at the buffet to upgrade their experience to the highclass option. The buffet restaurant (Delight Buffet) also features dSign’s signature SpaceAlive concept for multifunctional spaces, which has previously seen only limited use in the company’s marine output. While the buffet is a large, singular space, it has been subdivided into smaller niches, which can be closed off on less busy departures, creating a more intimate atmosphere. Alternatively, the partitioning can also be used to create private cabinets for groups if needed. The (extra cost) Comfort Class lounge also makes use of the concept, featuring three smaller rooms normally used as lounge seating that can be partitioned into private meeting rooms if needed. Apart from these, there is only one dedicated conference room, with Tallink continuing the precedent of the ms Star and ms Superstar of not competing with the other fast ferry operators on the route for conference guests in major numbers. In addition to the Delight Buffet and Chef’s Kitchen, options for eating include the Fast Lane and Coffee & Co cafeterias, alongside a Burger King restaurant – a popular feature introduced on the Star last year. Snacks are also available in the Business and Comfort Class lounges. For the short two-hour crossing, entertainment does not play an important role. There are just two bars onboard: Victory Bar, 58 Cruise Business Review 1/2017 SPECIAL REPORT Victory Bar is the ship’s contemporary rendition of a classic sports bar 52-61 .indd 8 24.2.2017 12.56
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which Hintikka describes as “kind of a sports bar, but we wanted to take the concept a few degrees further – a modern, fresh, active venue for socializing with drinks,” and Sea Pub, which will offer live entertainment on selected departures. Possibly the most impressive space onboard is the Traveller Superstore, which covers the aft half of Deck 8 and extends down to the deck below via an impressive staircase. This was designed by Aprocos, which has been working with Tallink since the comSPECIAL REPORT pany’s first newbuilding, the ms Romantika, in 2002. Charged with turning dSign’s visions into reality was Kaefer Finland, which provided turnkey installation of all dSign-designed areas. Janne Sirviö , the Managing Director of Kaefer Oy, noted that the collaboration with both the shipyard and dSign was exceedingly smooth, despite the somewhat challenging schedule. While the Megastar is primarily a day ferry, the ship also offers 47 passenger cabins with a total of 186 berths. These were designed by Aprocos, while the beds were supplied by SBA Interior of Sweden, which also provided the B-15 classed wall panels, inspection doors and hatches for corridors, staircases and technical areas. Adjacent to the cabin areas on Deck 10 is the freight drivers’ lounge. The dSign team has certainly reached its goal of upgrading the Megastar’s interiors compared to other ships on the Helsinki-Tallinn line, with several fellow passengers I spoke with after the maiden voyage even suggesting that the fine interiors go to waste on a short two-hour hop. Sister ship? While the Megastar remains a unique design for the time being, Tallink Grupp’s CEO Janek Stalmeister told the Finnish newspaper Turun Sanomat in January that should the new ship be favorably received by passengers, his company could be interested in a sister ship. Meanwhile, Meyer Turku are looking into options that would allow them to maintain a position in the ferry-building market, even with the yard’s orderbook filled with cruise ship contracts far into the next decade. The Megastar’s hull form and propulsion have been optimised to maintain the two-hour crossing time between Helsinki and Tallinn even in icy conditions The Sea Pub is quickly becoming a trademark space onboard Tallink Grupp’s vessels. Like on the other ship, the Sea Pub on the Megastar features live entertainment 52-61 .indd 10 24.2.2017 12.56
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62 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 THE YEAR IN RETROSPECT Top headlines from cruisebusiness.com from January to December 2016 JANUARY Three cruise lines unveiled major f leet upgrade programs: Princess Cruises, part of the Carnival Corporation & plc, said it would spend $450 million over a period of several years to upgrade its existing ships, while Norwegian Cruise Line started a $400 million program to enhance the facilities onboard its vessels. Regent Seven Seas Cruises, also part of Norwegian Cruise Line Holdings Ltd. (NCLH), said it would invest $125 million to upgrade its fleet. NCLH cancelled calls in Turkey for all its ships. Political unrest in the eastern and southern parts of the Mediterranean had become a constant concern for the cruise industry as a result of terrorist attacks. FEBRUARY Hurtigruten resigned from Cruise Lines International Association (CLIA). The company said CLIA represents the mainstream cruise industry, whereas Hurtigruten wanted to focus on the expedition market and membership in the organization was therefore no longer key to the company’s business strategy. Crystal Cruises launched a study to look into the viability of rebuilding the ocean liner the United States, built in 1952 as a luxury transatlantic liner. The plan was abandoned later in the year. It was one of many such reviews that had been made over a span of several decades since the vessel was taken out of service in 1969. The Norwegian group had acquired the ship at the turn of the millennium, but also gave up its plan to reactivate the vessel. Genting Hong Kong said it would buy the shipyards at Warnemunde, Wismar and Stralsund in Germany for €230 million. These would later be grouped together as MV Werften. Genting said it had found it difficult to find slots at established yards and by setting up its own shipbuilding business, it would gain control of the supply of tonnage its three brands – Star Cruises, Dream Cruises and Crystal Cruises – would need in the future. In the spring, Genting placed orders for 10 ships at the yard group, but delivery details changed as the year progressed. UK-based Cruise & Maritime Voyages (CMV) acquired the 1989-built ms Pacific Pearl from P&O Cruises Australia. The 63,786 gross ton ship would be the largest in the sea fleet of the company that was founded in 2009, which comprised four-deep sea and three river ships. The Pacific Pearl would replace the much smaller Astoria. Fresh data from CLIA showed that the growth of the European cruise market had accelerated 3.1% to 6.8 million passengers in 2015 after a mere 0.5% increase the previous year. Oceania Cruises' Sirena was one of the year's second-hand acquisitions. Norwegian Cruise Line Holdings purchased the vessel from Carnival Corporation & plc P h ot o cr ed it : Te ij o N ie m el ä 62-67.indd 2 24.2.2017 12.07
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64 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 Fincantieri said it had teamed up with the Huarun Dedong shipyard in China to dry dock cruise ships. The Italian shipbuilder also entered into agreements with Chinese principals to build cruise ships in China. APRIL Thomson Cruises in the UK would be rebranded as TUI over the next 18 months, the parent company TUI UK said. This was part of a strategic review of the operations of the Anglo-German group that also resulted in the sale of a business unit which included Intercruises, the shore-side services provider to the cruise industry. MSC Cruises said its 200,000 gross ton newbuildings on order at STX France in St. Nazaire would use liquefied natural gas (LNG) as fuel, joining both the Carnival and Royal Caribbean groups in placing orders for LNGpowered vessels. LNG was first used on a major passenger vessel in 2013, when the Finnish cruise ferry ms Viking Grace entered service. MAY Royal Caribbean Cruises Ltd. (RCCL) sold 51% of the shares in Pullmantur, the Madrid-based cruise operator, to Spanish principals. In 2015, RCCL had to book an impairment charge of about $411 million against Pullmantur, which had suffered from weakness in the Spanish economy and the virtual collapse of the Brazilian source market. RCCL retained the ownership of the Pullmantur fleet. Lindblad Expedition Holdings, Inc., acquired 80.1% of the shares in tour company Natural Habitat, Inc. JUNE New CLIA figures showed that the cruise industry’s economic output in Europe maintained a 2% growth rate in 2015 and reached €40.95 billion. CLIA also forecasted that the global cruise market would grow to 23.2 million passengers in 2016, up from an earlier forecast of 23.0 million. JULY Costa Crociere said it would homeport a ship in Mumbai, India, and celebrated 10 years since its arrival in China. Fincantieri said it had set up a joint venture with the China State Shipbuilding Corporation (CSSC) to build cruise ships for the Chinese market. It later signed a contract with a joint venture between the Carnival group and its Chinese partners to build up to four 133,500 gross ton vessels for the local source market. Silversea said it would invest $170 million to upgrade its fleet as it prepared to take delivery of the ms Silver Muse, a newbuilding, in 2017. Costa Crociere acquired a 33% stake in the Marseillebased ship repair yard Chantiers Naval de Marseille, which it intended to use as a repair and refit facility. SEPTEMBER MSC Cruises said that the MSC Splendida, a unit in the Fantasia class of about 137,000 gross tons, would operate from China starting in May 2018. Royal Caribbean Cruises Ltd. sold 51% of its Pullmantur brand. It also decided to close its French subsidiary Croisieres de France P h ot o cr ed it : Te ij o N ie m el ä 62-67.indd 4 24.2.2017 12.07
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66 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 Viking Cruises said it had received a $150 million equity injection from TPG Capital and the Canada Pension Plan Investment Board. The same month, two people died as a Viking Cruises’ ship hit a bridge on the Rhine-MainDanube canal in Germany. The privately owned German shipbuilding group Luerssen said it would acquire Blohm + Voss shipyard in Hamburg from UK-based investors. OCTOBER Virgin Cruises, the new cruise line promoted by Sir Richard Branson , renamed itself Virgin Voyages and confirmed an order for three 110,000 gross ton ships with Fincantieri. Ms Genting Dream, the first ship of Dream Cruises, the Asia Pacific-focused premium cruise brand from the Genting Hong Kong group, entered service after delivery from Germany’s Meyer Werft. Carnival Corporation & plc signed an agreement with Shell, under which the Anglo-Dutch company would supply LNG to fuel the Carnival group’s ships operating in Northern Europe and the Mediterranean. NOVEMBER Crystal Cruises said the introduction of the first ship in its Exclusive class would be postponed to 2021 from an earlier planned date of 2019. Since the project was unveiled in 2015, both the delivery schedule and the planned size of the 1,000-passenger vessels had been changed several times. DECEMBER Princess Cruises was fined $140 million for polluting waters in the U.S. and the UK. This marked the largest fine any cruise line had incurred to date for violations of environmental rules. Carnival Corporation & plc unveiled a net profit of $2.7 billion, its highest ever, beating a previous record from 2008 by $300 million. Pullmantur said it would close down the Croisieres de France operation in Paris. This signaled the final chapter for the only contemporary cruise brand targeting the French-speaking market in Europe. RCCL and NCLH were granted licenses to operate cruises to Cuba. Meanwhile, Carnival Corp. announced it would wind down its Fathom brand, which had pioneered cruises to Cuba. Fathom’s sole vessel, the Adonia, would return to P&O Cruises UK in 2017. Fincantieri emerged as the favored bidder to acquire 66% of the shares in STX France from the collapsed STX Offshore & Shipbuilding group in South Korea. All Leisure Group, with three boutique cruise brands, collapsed. Two of the brands of the UK-based company – Hebridean Island Cruises and Swan Hellenic – were acquired by other investors and would remain in business. Voyages of Discovery had not found a buyer as of early 2017. Genting Hong Kong took delivery the Genting Dream from Meyer Werft, which also marked the launch of new up-market cruise line tailored mainly for Asian clientele P h ot o cr ed it : M ey er W er ft 62-67.indd 6 24.2.2017 12.07
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68 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 T he three largest cruise shipping groups in the world enjoyed a record year in 2016 in terms of net results. The three, as indeed the wider industry, continued to grow, mainly in the contemporary market sector, which is becoming increasingly dominant in results generation. Record year for Carnival – at last Carnival Corporation & plc, the world’s largest cruise shipping group, enjoyed a record year in the 12 months to 30 November 2016 when it came to net profit. This took a leap of 58% from the previous financial year and reached $2.78 billion. At first, this could be seen as perfectly outstanding performance and without a doubt, it is very good. However, a closer look at how the group has fared in the past decade paints a somewhat different picture. MAJOR CRUISE GROUPS ENJOYED RECORD 2016 The previous record result for the group of $2.40 billion was set way back in 2007. Not only was this before the infamous Costa Concordia and Carnival Triumph incidents of 2012, this was also before the outbreak of the financial crisis that occurred in the autumn of 2008. But there is more: In the year 2007, Carnival needed to generate total revenue of $13.03 billion in order to achieve the net profit of $2.40 billion. In the financial year to the end of last November, it needed 23% more revenue to produce a net profit that was a fraction under 16% higher than that of the previous peak year. And there is still more to that. In 2007, the price of oil averaged $74.44 per barrel in 2016 dollars. Last year, the figure was just $34.13, according to figures on inflationdata.com. To sum up, Carnival’s profit recovery has been primarily based on volume growth rather than margins. In 2007, the group’s ships carried 7.76 million passengers, who each generated on average $1,698 in gross revenue and $315 in net profit. In 2016, the number of passengers had soared to 11.55 million, but each only produced on average $1,422 in gross revenue and $241 in net profit. At first, these figures may seem odd, but a closer look at what has happened in the cruise industry in the past decade – and what is going on at the moment – shows that the massive waves of investment which have taken place have focused heavily on high volume, contemporary market brands. In the case of the Carnival group, this means Carnival Cruise Line, Costa Crociere, Princess Cruises, AIDA Cruises plus P&O Cruises UK. Meanwhile, P&O Cruises Australia has expanded – and Carnival Corporation & plc enjoyed a record fiscal year P h ot o cr ed it : Te ij o N ie m el ä 68-75.indd 2 24.2.2017 13.28
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70 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 continues to do so – by receiving second-hand units from other members of the Carnival group. A look at the present orderbooks of both the Carnival group and of the industry as a whole reveals that most of the capital to be committed in new vessels will go to contemporary market brands. Consequently, the industry will have to continue to expand its customer base as substantial numbers of new berths will have to be sold in the years to come. Deletions of ageing tonnage will not materially affect the picture, because the vessels that will be phased out will be much smaller than the ones that replace them. However, the development just described has at least a further implication. In the case of the Carnival group – but also its two listed multi-brand competitors, Royal Caribbean Cruises Ltd. (RCCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) – the luxury-market brands at the top of the scale play an increasingly marginal role in terms of the development of results for the groups they belong to. Seabourn Cruise Line of the Carnival group, Azamara Club Cruises of RCCL and Regent Seven Seas of NCLH can be profitable, and they may expand in the future too. Although they charge much higher per diems than contemporary market brands, the numbers of berths they offer are so minimal that in the scheme of things, their performance can hardly have a significant impact on the financial result of their respective parent group. In between these two are the premium market brands, such as Holland America Line (HAL) and Cunard Line of Carnival, Celebrity Cruises in the RCCL group and Oceania Cruises in NCLH. Both HAL and Celebrity have a fairly large number of ships, so they cannot be discounted from the picture when it comes to their ability to affect the result of their respective parent group. However, they are not in the driver’s seat, and it is not they that set the pace: Their future volume growth will not match the expansion of the respective contemporary market brands in these groups. RCCL’s billion-dollar year The year 2016 will go into the books of Royal Caribbean Cruises Ltd. (RCCL), the world’s second-largest cruise shipping group, as the first one when its net profit exceeded the $1.0 billion mark. In fact, this would already have happened in 2015 had the group not been forced to book a $411 million impairment charge related to Pullmantur, the Spanish company that it owned in full since 2006, but of which it now only retains 49%. The vessels that Madrid-based Pullmantur operates remain fully owned by RCCL. Consequently, the jump in RCCL’s 2016 net profit – it almost doubled to $1.28 billion – looks more dramatic than what it actually is. However, the group performed very well last year as the increase in underlying profit, excluding extraordinary items in 2015, amounted to about 25%. Commenting on the group’s performance, Richard Fain , Chairman and CEO, said in a statement that books were at record levels, the preference of the group’s brands was at an all-time high and guest satisfaction had reached record levels. Adding to that, he noted that costs had been well managed. Royal Caribbean has continued to invest in China. Quantum of the Seas pictured in Nagasaki, Japan P h ot o cr ed it : Te ij o N ie m el ä 68-75.indd 4 24.2.2017 13.28
Cruise Business Review 1/2017 71 Despite growth of its fleet that continued in 2016, the group’s fuel bill decreased to $713 million last year from $796 million in 2015, reflecting a benign cost environment that has benefitted RCCL as well as the industry as a whole. The price of oil that hit a high at $114 per barrel towards the end of 2014 plummeted to a recent low of just under $30 early last year. It has since risen to trade in the lowto mid-$50s, reflecting a trend in many other commodities, whose prices have also turned higher after bottoming out last year. This should mean gentle upward pressure on the fuel and food cost sides in the future, but RCCL forecasts its net cruise costs, including fuel, to remain flat per available passenger capacity day in the present year. Inflationary pressures certainly do not give reason for concern at the moment. In relative terms, RCCL’s performance has been better than that of the Carnival group, in the sense that its previous record result dates back to 2014 – Carnival’s was in 2007. The problems at Pullmantur that prevented RCCL from setting another record in 2015 also caused a dip in 2012—the same year that the Costa Concordia and Carnival Triumph incidents hit the industry. Norwegian continues strong performance At the time of writing, the full-year result for Norwegian Cruise Line Holdings Ltd. (NCLH), the third-largest company in the cruise industry, had not yet been released. However, the group has continued its strong performance of the past several years, and its net profit for the first nine months of 2016 exceeded that of the full year 2015. Cruise operating expenses that combine commissions, fuel, food, payroll and other onboard costs rose by 7.9% to $2.16 billion over the same period a year earlier, but total revenue grew by almost one-and-half times that rate, at 13.3% to reach $3.75 billion. Net profit leapt by some 44% and reached $560.8 million – this would be the highest full-year profit the company has ever posted. Despite its rapid expansion, NCLH’s total liabilities actually decreased a fraction, to $8.40 billion at the end of September from the same date a year earlier. Long term debt rose a little, to $5.82 billion from $5.77 billion, in the same period. Strong results, high pace of growth The three major cruise shipping groups posted very strong results for 2016 and at the same time are investing heavily in renewing and expanding their fleets. It is hardly surprising that they should do so given the strong demand for their products. The Chinese source market is attracting additional capacity and North America continues to do well. Europe continues to have its many problems, but even there the industry is prepared to inject new capacity into the market, and the three majors are leading the way in this. P h ot o cr ed it : Te ij o N ie m el ä Norwegian Cruise Line Holdings has substantially invested refurbishments of its fleet, including Seven Seas Navigator 68-75.indd 5 24.2.2017 13.28
72 Cruise Business Review 1/2017 H EA D LI N ES 20 16 FO RE CA ST S 20 17 The growth of expedition cruises will bring new tonnage to the market in the next few years and probably broaden the appeal of cruising further in the years to come. However, the early part of 2017 has shown that T he year 2016 ended on a strong note and moving into 2017, the outlook remains promising with lots of new tonnage coming onto the market, while the expedition cruise sector continues to develop and reshape the shipbuilding landscape. But possible reasons of concern also remain on the horizon. The two largest cruise shipping groups, which had published their 2016 results at the time of this writing in early February, seem to have quite different expectations for the present year. Carnival Corporation & plc, the world’s largest cruise ship operator, predicts f lat revenue yields on an as-reported basis, whereas Royal Caribbean Cruises Ltd. (RCCL), the industry number two, sees substantial improvement. While Carnival is forecasting stable earnings per share (EPS), RCCL expects a substantial increase (see table below). Generally speaking – and admittedly in a subjective assessment – the ships of RCCL tend to be more innovative than those of its larger rival, which raises the question of whether this is part of the reason why RCCL is more optimistic about the development of yields and EPS for the present year than its larger rival. Shipbuilding transformation continues All in all, the cruise industry remains, it seems, hugely optimistic. As 2016 produced the best results the major listed companies have ever booked, it is hardly surprising that they continue to invest a large part of their cash in growing capacity. MSC Cruises and Genting Hong Kong are expanding more than what is their curit is not smooth sailing for everyone. The All Leisure Group (ALG) in the UK, with three boutique brands, collapsed after a long streak of deep losses, for which the management blamed geopolitical events in the Eastern Mediterranean. Two of the brands, Hebridean Island Cruises and Swan Hellenic, will continue trading. Voyages of Discovery, meanwhile, will not. The two last named brands operated mainly 14-night cruises of open-ended itineraries that ranged in scope from South America to the Far East. Flights were included in the fares, which meant the management had little control over a major cost item. Also, one may ask to what extent did Swan Hellenic and Voyages of Discovery compete against each other? OPTIMISM AND UNCERTAINTY rent share of the market, so the landscape of the cruise industry is changing too. It is certainly changing as far cruise shipbuilding is concerned. Mitsubishi Heavy Industries has decided to exit the scene after booking massive losses in connection with its two newbuildings for AIDA Cruises. The China State Shipbuilding Corporation (CSSC) has entered the sector, with an order for up to six 133,500 gross ton ships for a Chinese brand set up with the Carnival group, which together with Fincantieri is assisting CSSC to build the ships. A controlling interest of about 64% in STX France is likely to end up in the hands of Fincantieri, which also controls the expedition cruise shipbuilder Vard, although its bid to assume full control of the Singaporelisted company failed. It seems that Fincantieri, with yards in Italy and France, and Meyer, with ones in Germany and Finland, share most of the pie. Last but not least, Genting Hong Kong has set up MV Werften to build cruise ships for its own brands at the three German yards that form the group. However, start-up costs of the business were among the reasons why Genting Hong Kong issued a profit warning, saying that it expects to book a net loss of $500 million to $550 million for 2016. Cruise shipbuilding requires huge amounts of working capital, so it will be interesting to see how matters evolve in the future. In Genting's defense, it must be said that securing slots at other cruise shipbuilding yards would, most likely, be difficult indeed. As could be seen already last year, the rapidly expanding expedition cruise market is providing a platform for newcomers to enter the cruise shipbuilding business and for one to return after a long break. Vard, which is benefitting from its membership in the Fincantieri group, can use synergies from this set-up to its benefit. But not all expedition cruise shipbuilders have such backup, and given the fact that the Polar Code – which sets technical and other requirements for ships that operate in high latitudes north and south – only took effect from the start of this year, the challenges in building these ships may be many. The rules are known, but how will various authorities interpret them? CARNIVAL* RCCL NET REVENUE YIELD Flat +3.3% to +5.3% NET CRUISE COSTS 1.5% to +1.0% EPS $3.30 to $3.60 $6.90 to $7.10 EPS 2016 $3.45 $6.08 Sources: Carnival Corporation & plc, RCCL *Carnival estimates for financial year to 30 November 2017 68-75.indd 6 24.2.2017 13.28
Cruise Business Review 1/2017 73 2050. China will see its share grow by two percentage points to 20%, while India is expected to leap from 7% to 15% of the global GDP from 2016 to 2050. Leading developed economies are also forecast to march at very different speeds. Britain, thanks to its openness to the rest of the world and higher proportion of working-age people, should expand by 2% per year, while Japan's ageing population should generate a growth rate of less than 1% over the review period. In Germany, the rate is expected to be 1.5%, and in the U.S., just under 2%. In 2050, the list of largest economies in the world is expected to read as follows: China, India, the U.S., Indonesia, Mexico, Russia, Japan, Germany, the UK, Turkey, France, Saudi Arabia, Nigeria and Egypt. Only Egypt and Nigeria are newcomers on that list, replacing Italy and South Korea. But the rise of what are called emerging economies to the top of the list from lower echelons is phenomenal. In fact, PwC forecasts that by 2040, the E7 comprising Brazil, India, China, Indonesia, Mexico, Russia and Turkey could be twice the size of the G7 of traditional, rich industrialized countries in terms of GDP. But while the world is full of uncertainty, one trend is clear: Populations around the world are ageing and there are fewer workers at the bottom to pay for the Long-term shift of economic gravity looms Cruise industry executives have often talked about the positive effect of demographics for the business. In these discussions, the story of ageing baby boomers with lots of money to spend has been a major driver in the growth of the business. The industry may be less confident when it comes to winning the hearts and minds of millennials, probably with good reason. However in the longer run, demographics are poised to dramatically change the world in which not just the cruise industry operates but in which we all live, according to a major study carried out by PwC, the business consultancy. The key message of the study is that working-age populations are ageing rapidly in developing economies, while in emerging countries like Nigeria they will continue to grow until the end of the century, according to current projections. This will have a profound impact on the economic landscape of the world. The U.S. currently generates 16% of the world's GDP adjusted for purchasing power parity (PPP); in 2050, the figure is forecast to have dropped to just 12%. The EU, excluding Britain (which has voted to leave the union), will see its share fall from 15% last year to just 9% in AIDAprima is the first cruise ship built by Mitsubishi Heavy Industries over a decade P h ot o cr ed it : Te ij o N ie m el ä 68-75.indd 7 24.2.2017 13.28
H EA D LI N ES 20 16 FO RE CA ST S 20 17 74 Cruise Business Review 1/2016 pensions of those retiring at the top. The outlook is bleaker among major advanced economies, which PwC expects to grow at a “markedly slower” average rate of 1.6% per year between now and 2050, compared with the global average of 2.6% per year. What does this means to the cruise industry? At least one thing seems clear: Apart from China, the cruise industry is currently focusing on countries where the expansion of economies is forecast to lag behind faster-growing countries and regions. This again requires a caveat: GDP in Germany may grow at a slower rate than in Nigeria over the next three and a half decades, but in absolute terms, Germany’s GDP per person is at a much higher level than Nigeria’s and is likely to remain so for quite some time. Consumer habits are another aspect to look at. The concept of a cruise is only sold in emerging markets such China and Brazil, with at least some success so far. The rest of the new, expanding economies are virtually untouched terrain by the business. Geopolitics and other uncertainties remain Of course, such long-term projections are subject to many variables and if anything, the world has become increasingly uncertain during the past 12 months or so. In early 2016, the idea of Donald Trump in the White House and Britain about to leave the European Union seemed rather remote. While it is beyond the scope of this publication to discuss whether these events have been welcome or not, it must be fair to say they have increased uncertainty, at least if we define that as how the future looked when seen from the perspective of early last year. Speakers at the annual conference of the International Chamber of Shipping in London in September said that following Britain’s departure from the EU, the country will probably set its own agenda when it comes to new regulations at the International Maritime Organization (IMO). At the moment, it remains subject to efforts of the European Commission to have all EU member states present a single stance towards new regulatory matters. The European Union remains mired in the euro crisis, and the prospect of renewed major problems in Greece over the debt of that country was back in the headlines at the time of this writing. Massive demonstrations were held in Romania against a government that had planned to legalize corruption. General elections will take place in Germany and the Netherlands later this year, and a new incumbent at the Palais d'Elysee will be elected by the French as well. Political analysts suggest that the political middle ground is starting to look increasingly deserted in Europe. China continues to push its military claim to the South China Sea, a policy that worries not just other countries in the region, but the U.S. as well. Russia, under Vladimir Putin , violated the principle established after World War II whereby borders in Europe should not be changed by force when it invaded the Crimea in 2014. Geopolitics is firmly back on the agenda. And the southern and eastern shores of the Mediterranean remain largely off limits to the cruise industry after the Arab Spring failed to produce political reform in the region. An attempted coup in Turkey in July has added that country to the list of ones with security concerns from a tourism point of view. The list of potential concerns goes on. MSC Meraviglia is the next newbuild of MSC Cruises. She will be christened in Le Havre on June 3 68-75.indd 8 24.2.2017 13.28
Cruise Business Review 1/2017 75 Main sponsor: Leading sponsors: Organizer: Partner: T H E L E A D I N G M A R I T I M E E V E N T W E E K 68-75.indd 9 27.2.2017 11.32
76 Cruise Business Review 1/2017 N orway has long been one of the most popular cruise destinations in Europe, particularly during the summer months. The various Norwegian ports are continuing to develop their product and infrastructure, while an increased number of cruise guests – particularly from Europe – are choosing to visit the country in the offand shoulder seasons. The past year saw cruise passenger numbers for Norway return to growth after a brief decline. For 2017, an even better result is expected, as Cruise Norway’s Managing Director Sandra Diana Bratland tells Cruise Business Review. “The number of cruise passengers is expected to increase by 13.5% from 2016, resulting in around 3 million day-visitors to Norway in 2017,” she says. “Should the prognosis hold, the record from 2013 with 2.8 million day-visitors will be exceeded.” The biggest individual increase is expected to come from the village of Eidfjord in Hardangerfjord – also known as “Queen of the Fjords” – with an expected 64% increase over 2016. Eidfjord, together with nearby Ulvik, benefits from new investment at the Vøringsfossen waterfall, making the area safer while DESTINATION UPDATE NORTHERN EUROPE NORWAY BREAKS THE WINTER BARRIER improving the natural experience. The works are expected to be completed in 2020, with the waterfall remaining open for visitors during the entire time. Tromsø is forecast to enjoy equally impressive growth of 47%. This is a welcome development after a somewhat disappointing 2016. Located far north of the Arctic Circle, Tromsø is investing heavily in new infrastructure, as Harriet Willassen , Marketing Manager for the Port of Tromsø, explains. “We are building a new passenger terminal in the city center. This will open in 2018 and house Tromsø visitor center, etc. When the terminal opens and Hurtigruten’s ships will be moved to the quay right outside the terminal, we can take larger cruise ships to the quay Hurtigruten are German-speaking visitors. At the same time, the number of calls during the autumn is also increasing. Bratland notes that while in 2016 there were just two cruise calls in October, this year 27 are expected. While nature has always been Norway’s major selling point as a cruise destination, for winter cruises it plays a somewhat different role. “The uniqueness of the experience is the huge selling point,” Bratland observes. “The hope to see the illusive Lady Aurora dancing across the sky, sitting on a sled behind a pack of huskies or just having fun in the snow and feeling the cold air against your face.” Kim Andre Angeltveit , General Manager of Nordic Gateway AS, notes that not only is the experience different from the summer, but cruise guests are also willing to pay a premium for it. “We using at present.” At the same time, new attractions will be opened in the coming years: An Ice Bar in 2018, the expansion of the Polaria Experience Center in 2019 and the new High North Museum in 2019/20. Meanwhile, Bergen remains Norway’s most popular cruise destination, with 296 cruise calls bringing in 490,546 passengers in 2016. For 2017, the numbers are expected to increase to 320 calls with approximately 550,000 guests. Growth outside the summer season “Winter cruising in Norway has been a great success,” Cruise Norway’s Bratland notes. “From the first winter cruise in 2009, Norway welcomed 14 winter cruises in 2014, ten in 2015 and five in 2016. In 2017, we expect 12 [winter] cruises.” Previously, winter cruises were primarily aimed at British guests, but this season AIDA Cruises joined the ranks of companies visiting Norway during the winter, thus bringing an increased number of are looking at 100% participation in the ‘hot’ winter destinations; these are numbers we have never seen during summer. It is obvious that guests want to experience something exotic, something that is not so easy to do on your own during winter.” Active tours are the current trend, Angeltveit notes, both in summer and winter. With the focus on snow and aurora borealis, it is no wonder that the “hot” winter destinations are ports like Tromsø, which expects 11 cruise calls during this winter season (an increase from just five in 2016). Exciting possibilities for winter cruising are offered as well by the North Cape Turnaround Port in Lakselv. Previously a tender-only port, a new seawalk will be completed in May of this year. Use of the port makes it possible Norway is known for its natural beauty, and an increasing number of cruise passengers are opting for the unique experience of seeing it outside the summer season. For 2017, a record number of cruise passengers are expected to visit the country, with autumn and winter cruises taking the lead in growth. By Kalle Id Tromsø's new passenger terminal will be opened next year P h o to cr ed it : P o rt o f T ro m sø 76-77 .indd 2 24.2.2017 12.41
Cruise Business Review 1/2017 77 for cruise guests to arrive directly in the land of snow and aurora borealis. “The location offers fantastic opportunities for exciting itineraries in the high north,” Bratland says. Winter cruises also benefit Norway’s more southern destinations such as Bergen, where ships may call enroute to the main attractions. “The cruise season is increasing every year, which is enabling visitors to enjoy the city in spring, summer, a u t u m n a n d winter,” reports Helen Hovland , M a r k e t i n g Manager Cruise for the Port of Bergen. For Geirangerfjord – probably Norway’s best-known destination for natural beauty – growth is currently only possible outside the summer season, as the number of cruise calls during the June through August high season has been capped due to environmental concerns. “The current environmental debate is largely dominated by strong opinions based on assumptions and speculation,” says Rita Berstad Maraak, Port Director of Geirangerfjord. “Landbased tourist traffic in the area is significantly higher than sea-based traffic, and it is primarily in this area that action must be taken.” A report examining the effect of sea-based traffic on the environment is due to be ready in April. Investment in infrastructure benefiting cruise ships will continue in Geirangerfjord, with future projects currently in the planning stages. Meanwhile, the new Loen Skylift will open in May this year, which Cruise Norway’s Bratland enthuses about. “The Skylift is a cable car bringing visitors from fjord level to 1,011 meters above sea level,” she says. “After six to seven airy minutes you arrive at the Mountain Station and the restaurant, where you will have a 210-degree panoramic view overlooking the surrounding scenery.” Despite its increasing popularity and the number of destinations available, Norway still has plenty of new things to offer and thus more potential for growth. “There is still a lot of beautiful places to be explored. Norway offers so many scenic places, and we will offer these places to more cruise ships,” Nordic Gateway’s Angeltveit concludes. n assumptions an and d sp spec e ulaita Berst stad ad rt Dir ire ecto orr fjjor ord d. “La Landst traf affic in in siig gnificantl tly y n n se s a-based d is is p pri r marily t B B a ll s y t The Northern Lights Cathedral in Alta P h o to cr ed it : A n n e O ls en -R yu m /w w w .n o rd n o rg e. co m Reindeer sleighing near Tromsø P h o to cr ed it : K o n ra d K o n ie cz n y/ w w w .n o rd n o rg e. co m 76-77 .indd 3 24.2.2017 12.41
78 Cruise Business Review 1/2017 DESTINATION UPDATE CARIBBEAN NEW PORTS, CUBA AND EXPANDED CANAL SHAPE CARIBBEAN’S FUTURE The Caribbean has for years battled to keep its share of the growing global cruise market. The long-awaited resumption of U.S.-to-Cuba cruise service, new port developments and the opening of expanded locks in the Panama Canal are all helping the Caribbean to re-invent itself. Carnival Corporation’s Amber Cove in the Dominican Republic and Norwegian Cruise Line’s Harvest Caye in Belize are recent examples of cruise lines investing in their own port facilities. By Teijo Niemelä C arnival Corporation & plc made history in early May 2016, when the company’s Fathom brand sailed from Miami to Cuba, marking the first such departure from the U.S. in 50 years. The easing up of restrictions on travel from the U.S. to Cuba has subsequently paved the way for other cruise lines to offer cruises to Cuban ports as well. Cuba is a perfect destination for smallerand medium-size cruise vessels, as it cannot accommodate larger megaships. In February, Carnival Corp. further announced that Cuba had granted approval for its Carnival Cruise Line brand to begin sailing there starting in June 2017. Tortola Pier Park 78-79 .indd 2 27.2.2017 7.21
Cruise Business Review 1/2017 79 To help meet strong demand from U.S. travelers to visit Cuba, Carnival Cruise Line will offer a full series of sailings in 2017 aboard the 2,052-passenger ms Carnival Paradise, expanding Carnival Corp.’s total sailings to Cuba in 2017 and providing more travelers with the opportunity to visit the Caribbean’s largest island. In similar moves, Norwegian Cruise Line Holdings Ltd. and its three brands – Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises – and Royal Caribbean Cruises Ltd.’s Royal Caribbean International brand announced a series of sailings from various Florida homeports to Cuba. Cuba has also provided an opportunity for smaller lines to call, including Pearl Seas Cruises, Victory Cruise Lines and Viking Ocean Cruises. Meanwhile, European lines such as Celestyal Cruises and MSC Cruises have ships homeported in Havana. Of these, Celestyal now operates yearround. Next generation ports-of-call Less than two years ago, Carnival Corp. opened its $85 million Amber Cove project on the northern coast of the Dominican Republic. The port is visited by major Carnival-owned lines, such as Carnival Cruise Line, Holland America Line, Princess Cruises and European sister brands AIDA Cruises, Cunard Line and P&O Cruises. Carnival Corp. has previously invested in cruise terminal and port facilities in Roatan (Honduras), Grand Turk and Mexico’s Cozumel. Meanwhile, Norwegian Cruise Line in November opened its highly-anticipated Harvest Caye in southern Belize. Located just one mile offshore, Harvest Caye offers Caribbean travelers an authentic Belizean experience that highlights the country’s nature along with resort-style amenities including a sprawling pool and private luxury beach villas. Recreational options include a variety of eco-activities and interactive wildlife programs and a cross-island zipline. With its close proximity to the mainland, Harvest Caye also offers guests easy access to a wide variety of adventure excursions. These recent port developments represent the latest trend in the Caribbean, whereby privately owned, master-planned facilities are turning into cruise destinations unto themselves. This trend has yet to pick up outside of the Caribbean, although a few exceptions exist such as Icy Strait Point in Alaska and Sir Bani Yas Island in Abu Dhabi. Reportedly, Royal Caribbean Cruises Ltd. is looking at a private port development in Japan. Meanwhile, elsewhere in the Caribbean, the Tortola Pier Park is the newest development in the British Virgin Islands, offering an enhanced cruise pier facility and a new shopping center. With the capacity to now compete with other regional ports, the Tortola Pier Park cruise pier can berth two large ships alongside with a maximum gross tonnage of 180,000. The shopping center houses over 54 retail stores. Panama Canal expansion Last summer, Panama celebrated the opening of a third set of locks in the Panama Canal. This has now doubled the waterway’s capacity, allowing neoPanamax ships to transit between the Atlantic and the Pacific. Most cruise ships still use the old locks due to cost concerns, but the new locks will allow cruise lines to more effectively deploy larger tonnage between cruise regions. Among the first large cruise ships scheduled to transit the new locks will be Norwegian Cruise Line’s 164,000 gross ton ms Norwegian Bliss, which is currently under construction at the Meyer Werft shipyard in Germany. The vessel will spend her inaugural summer season in Alaska next year, before returning to the Caribbean in the fall – a deployment pattern that used to be the norm. 78-79 .indd 3 27.2.2017 7.21
80 Cruise Business Review 1/2017 V iking Ocean Cruises has quickly become one of the largest ultraluxury cruise lines in the industry, although it’s been only two years since the company introduced its first oceangoing cruise ship – the 47,800 gross ton and 930-passenger ms Viking Star. Last year, it was followed by the identical ms Viking Sea. This year, the ms Viking Sky has already joined the fleet and the ms Viking Sun will follow before the year is over. All these ships, with the exception of the Viking Star, have been built at Fincantieri’s Ancona shipyard in Italy (the Viking Star was built at Fincantieri’s Marghera yard). COMPANY UPDATE ULTRA-LUXURY MARKET VIKING CRUISES CONTINUES OCEAN EXPANSION Viking Cruises continues to expand with its third ocean cruise vessel, the Viking Sky, delivered in January. The company is slowing down its growth on European rivers – as in March it will introduce only two new Longships – but with new investors in house, Viking still has plans to launch river service on the Mississippi. Cruise Business Review met with Viking Cruises Chairman Torstein Hagen last October, when the Viking Star arrived in New York for the first time. By Teijo Niemelä 80-82 .indd 2 27.2.2017 7.23
Cruise Business Review 1/2017 81 BRAX SHIPPING +46 (0) 31 183200 www.braxship.com brokers@braxship.com P h o to : M ik e L o u a g ie S&P Newbuilding Charter Valuations Shipbrokers specialised in the sale and purchase of cruise ships and ferries/ropax TRUSTED WORLDWIDE New Expedition Cruise ship design 2017 Currently, there are three more ocean ships on order. The keel of the fifth vessel, the ms Viking Spirit, was recently laid in Ancona. The sixth ship (still un-named) will be handed over in 2019. By then, Viking Ocean Cruises expects to be the largest small-ship cruise line with 5,580 beds (based on double occupancy) – larger than Oceania Cruises, Crystal Cruises or Silversea Cruises. Viking began offering river cruises just 20 years ago, but it has become the largest operator in the river sector with 59 ships plus two more coming in March. Fifty-four of those river ships operate in Europe, and Viking’s fleet is the youngest in the market with an average age of just two years old. And while its growth rate on European rivers is now slowing considerably, the company says it is still interested in launching U.S. operations on the Mississippi River System. Private ownership Viking Cruises has been privately owned, but it recently added equity partners TPG Capital and the Canada Pension Plan Investment Board, which contributed a $150 million investment to support further growth. According to Chairman Torstein Hagen , the company employs 5,000 people and carries 350,000 passengers a year generating $2 billion in revenue. In the North American source market, Viking River Cruises has grown faster than its competitors. Viking estimates that the size of the market in 2015 was 497,000 passengers, with Viking holding a 49.1% share. For its European river cruises, Viking sources 88% of passengers from North America, 10% from the UK and 2% from Australia. The Living Room 80-82 .indd 3 27.2.2017 7.23
82 Cruise Business Review 1/2017 When designing its new oceangoing product, Viking took many of the popular elements from its river cruises and moved them onto its new ocean ships. The company’s philosophy is “not to be everything for everybody.” Instead, Viking is focused on Englishspeaking passengers with curious minds and an interest in history, culture and geography. It is a destination-oriented line that tries to avoid sea days, but provides extended hours in ports-of-call. Its highly inclusive product avoids nickel-and-diming passengers; for example, Viking provides a free shore excursion in each port, free WiFi throughout the ship and complimentary wine and beer during lunch and dinner. There are no extra charges to use the spa or self-service laundry. Despite its short presence in ocean cruising, Viking has already garnered many awards. The latest came in February, when the company received a new set of accolades from the popular online cruise resource, Cruise Critic, whose users selected the Viking Star and Viking Sea for top honors in 10 categories in the Cruise Critic 7th Annual Cruisers’ Choice Awards. Expanding deployments Northern Europe is “Viking territor y,” Hagen declared. The line’s 15-night Viking Homelands itinerary offers 23 departures a year between April and November, originating in Bergen, Norway, or Stockholm, Sweden. During the winter season, Viking has operated in the Mediterranean, when the weather is ideal for touring the region’s attractions, which are otherwise crowded during the summer season. A natural expansion to North America took place this winter, when the Viking Star crossed the Atlantic and after a short season in Canada/New England re-positioned to San Juan, Puerto Rico. With close sailing distances from this centrally located Eastern Caribbean homeport, Viking can avoid sea days and offer a very port-intensive itinerary. Its 11-night cruises run from October through February. To underline Viking’s Norwegian heritage, the Viking Sky will make her way to officially be christened under Norway’s “midnight sun” on June 22 in Tromsø. With the future deliveries of the Viking Sun and Viking Spirit, the cruise line will be able to further extend its reach around the globe. In December 2017, the Viking Sun will depart for a 141-night world cruise beginning from PortMiami and ending in London’s Greenwich. In 2019, the Viking Spirit will offer a 93-night cruise from Auckland to Vancouver. This itinerary will call, among others, in Sydney, Bali, Bangkok, Hong Kong, Yokohama and Petropavlovsk before crossing the Pacific Ocean. Summer 2019 also will mark Viking Ocean Cruises’ entry into the suddenly vibrant Alaska market. Serving Mandarin-speaking clientele In a new twist for the line’s river product, which until now has concentrated on serving English-speaking passengers, Viking River Cruises has dedicated two of its Europeanbased Longships to a Mandarin-speaking clientele. Both vessels feature Mandarin-language signage, Mandarin-speaking staff and provide authentic Chinese food. Viking hired Chinese chefs to create regional cuisines such as Szechuan and Cantonese. One of these Mandarin-dedicated Longships sails a Rhine River itinerary between Amsterdam and Basel, while the second one operates on the Danube River. “We are the first 100% Mandarin-speaking hotel in Europe,” said Viking Cruises executive Jeff Dash in October onboard the Viking Star. Induction & Simulator Courses COMING SOON 3rd Generation Cargo Handling Simulator Contact: Mr Pasi Leino (NI Certified Instructor) pasi.leino@ekami.fi, +358 44 754 9854 Contact: Mr Simo Knutas simo.knutas@ekami.fi, +358 400 559 191 Dynamic Positioning KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKooooooooootttttttttttkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkaaaaaaaaaaaaaaaaaaaaaa M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M M Maaaaaaaaaaaaarrrrrrrrrrrrrrrrrrriiiiiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttiiiiiiiiiiiiiim m m m m m m m m m meeeeeeeeeeeeeeee CCCCCCCCCCCCCCCCCCeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnntttttttttttttttttttttrrrrrrrrrrreeeeeeeeeeeeeeeeeeeeeeee KKKKKKKKKKoooooooottttttttkkkkkkkkkkaaaaaaa M M M M M M M M M M Maaaaaaaaaarrrrrrriiiiiiittttttttiiiiiiiim m m m m m m meeeeeee CCCCCCeeeeeeennnnnnnttttttttrrrrrrrreeeeeee www.ekaoy.fi/kmc The Aquavit Terrace 80-82 .indd 4 27.2.2017 7.23
Cruise Business Review 1/2017 83 FOUR TAKEAWAYS FROM AIDAPRIMA AND CARNIVAL VISTA Cruise Business Review Publisher TEIJO NIEMELÄ recently sailed aboard AIDA Cruises’ AIDAprima and Carnival Cruise Line’s Carnival Vista. Both ships represent the latest design for their respective brands and home markets, Germany and North America. Here, we examine four design aspects from both ships that are innovative and could become trendsetting. 83-90 .indd 3 1.3.2017 7.01
84 Cruise Business Review 1/2017 C arnival Corporations’ two new flagships are strikingly different, but share many qualities as well. The AIDAprima is the first of two 124,000 gross ton and 3,286-passenger ships ordered from Japan’s Mitsubishi Heavy Industries, and the vessel has taken AIDA Cruises for the first time beyond the 100,000 gross ton threshold. Meanwhile, the 133,596 gross ton and 3,934-passenger Carnival Vista – built at Italy’s Fincantieri – represents the next stage in Carnival Cruise Line’s popular and proven “Fun Ship” concept, albeit with several enhancements and additions. As these ships’ interiors were designed by the same architectural firm, PartnerShip Design, both offer striking tropical color schemes. ATRIUM VS THEATRIUM The layout of the Carnival Vista is based on previous generations of the line’s Destiny, Conquest and Dream classes, but several enhancements were added to the general layout. The expansive 10deck atrium fitted with panoramic elevators found on earlier generations was eliminated and replaced by a smaller, more intimate three-deck atrium. The eye-catcher is a large sculpture with LED screens that changes colors constantly. A large bar in the center and a large dance f loor make the atrium the hub of the Carnival Vista’s social life. As there is no dedicated disco onboard, the atrium also serves as the location for occasional latenight dance parties. The show lounge at the forward end is also smaller in size than on previous Carnival ships, occupying just two decks instead of three. Meanwhile, AIDA Cruises – which has always been innovative with regard to ship design – has replaced the entire show lounge and atrium with a combined space that it calls a Theatrium. Occupying three decks and featuring large glass walls on both sides, this is the focal point of the AIDAprima, with multiple bars and ample seating. There are constant activities going on in the Theatrium throughout the day, including gatherings for shore excursions, daily quizzes, bingo and evening shows. The area is enhanced with multiple video screens, allowing a better view of the goings-on even for those sitting in areas without direct lines of sight. AIDAprima Theatrium Carnival Vista Atrium Lobby 83-90 .indd 4 1.3.2017 7.01
To us it is obvious that the leading luxury cruise line chooses the global mobile operator at sea We are proud to announce our cooperation with Silversea Cruises. Since its inception in the early 90s, Silversea Cruises has been recognized as the gold standard in luxury cruising. With a passion for cruise planning today to meet the demands of tomorrow. That is why they have chosen Telenor Maritime to provide a mobile ecosystem for the entire fleet. Visit telenormaritime.com or meet us at Booth 3605 to see how we can enhance your guest experience, enable your digital transformation and increase operational ME ET US AT BO OT H 36 05 83-90 .indd 5 1.3.2017 7.01
86 Cruise Business Review 1/2017 LANAI DECK Carnival Cruise Line was the first company to offer a Lanai promenade concept on the ms Carnival Dream in 2007. The idea was to offer more outdoor deck areas, as sun decks are usually congested in warm-weather destinations. This concept on the Carnival Vista has been enhanced with more activities and various seating options, including outdoor seating available at extra-fee restaurants such as Bonsai Sushi and Fahrenheit 555 Steakhouse. An entirely new feature of this concept is an area of Lanai cabins at the aft of the ship, which have access to the Lanai deck and exclusive use of an outdoor space with its own Jacuzzis and a swimming pool. Although the Lanai wraps around the entire ship, the aft part is only accessible by a Lanai cabin key card. AIDAprima promenade pictured from the Skywalk AIDAprima Concierge Lounge outdoor area Carnival Vista Havana Pool 83-90 .indd 6 1.3.2017 7.01
FULL CRUISE CONTROL WITH Sika? oor® Marine SOLUTIONS High-performance systems for acoustic ? ooring, primary deck covering, visco-elastic damping and A-60 ? re rated ? oating ? oors. SIKA SERVICES AG Tueff enwies 16 · CH-8048 Zurich · Switzerland Phone +41 58 436 40 40 · Fax +41 58 436 55 30 www.sika.com/marine T H E B E S T G U A R A N T E E T H E M A R K E T C A N O F F E R Quality & Service Guarantee DOBEL® IN N O VA TI VE COA T I N G DESIG N SIN C E 1973 Metalcolour Sverige AB Emaljervägen 7 SE-372 30 Ronneby Phone: +46 457 781 00 info@metalcolour.com Metalcolour A/S Agrovej 6 DK-4800 Nykøbing F. Phone: +45 5484 9070 info@metalcolour.com Metalcolour Asia Pte Ltd 17 Tuas Avenue 4 SG-639368 Singapore Phone: +65 9030 5157 info@metalcolur.com DOBEL® F 105 For Exclusive Interior Design Freedom in design. DOBEL® F 105 allows designers to be creative in form while retaining the functional properties. The combination of metal properties (strength and shapeability) together with design properties in foils gives a versatile material applicable to many areas of use. Imagine a product so strong that it can be bent, stretched, stressed and used for years without any loss of performance or looks. DOBEL® F 105 is Approved according to IMO. www.metalcolour.com KL AS IF IE D. se JA N UA RY 20 17 83-90 .indd 7 1.3.2017 7.01
88 Cruise Business Review 1/2017 Meanwhile, the Lanai promenade concept is becoming popular with other cruise lines as well, and the AIDAprima offers the most versatile solution. AIDA’s Lanai is much wider than on Carnival, Costa or Norwegian Cruise Line ships. However, it does not encircle the entire vessel, as is the case on the Carnival Vista. The AIDAprima’s generous-size spa also provides an outdoor area with relaxation areas and Jacuzzis. In addition, the AIDAprima’s Lanai deck is the first in the industry that descends one deck down at the ship’s stern. Also aft, there are two glass-enclosed elevator towers providing a panoramic elevator experience with sea views – similar to such a design on the rms Queen Mary 2. At the top of these towers are two Skywalks with glass f loors offering views down to the Lanai. Designed for winter operations in Northern Europe, the outdoor Lanai Bar is a popular gathering spot even during the winter months, as it is fitted with heat lamps. WATERPARKS VS. SUN DECKS As the Carnival Vista is intended to sail year-round in the Caribbean, Carnival Cruise Line opted to eliminate the sliding glass roof over the pool area, as was found on some of the line’s earlier classes of ships. It has, however, added activities to the sun deck on the Carnival Vista: The WaterWorks waterpark is one of the largest at sea with spiraling waterslides and a splash zone. The Carnival Vista also features an improved ropes course, which is much more exciting and more difficult than on its sister ship, the ms Carnival Breeze. In an industry-first, the top deck also houses the SkyRide, where guests can pedal on hanging cycles along an 800-foot-long track. This is a popular feature, and waiting times on sea days can be up to an hour. The biggest “wow” factor on the AIDAprima is its dual waterpark concept. While the two-deck Beach Club is Carnival Vista WaterWorks Carnival Vista SkyRide AIDAprima Beach Club AIDaprima Four Elements 83-90 .indd 8 1.3.2017 7.01
Pilkington Marine is the specialist marine glazing unit of Pilkington Automotive Finland Oy. Pilkington Marine is offering to customers an integrated service from design to installation. Pilkington Automotive Finland Oy is a part of Japanise NSG Group with approximately 27,000 employees globally, principal operations in 28 countries and with sales in over 130 countries. In glass construction deliveries we pay attention especially to energy efficiency and sustainability. Our strengths are innovation, continuous improvement, R&D, agility and good reputation in the markets. Special Glass structure deliveries to Aida Prima and Aida Perla : • Sliding doors for cabin balconies • Foldable doors for cabin balconies • Automatic hinged doors for handicap cabin balconies • Hinged cabin balcony doors integrated with sea blinds for high sea pressure Pilkington Automotive Finland Oy Pilkington Marine Laitila www.pilkington.? www.nsg.com Cruise Business Review 1/2017 89 more conservative, it provides an indoor/outdoor swimming pool, a bar and nightly music such as rock concerts. It has a fixed glass roof that makes swimming enjoyable even during inclement weather. The Four Elements behind the funnel is a more versatile all-day activity center, which houses waterslides and a ropes course (the first indoors on a cruise ship). A large LED wall is used to show movies during the evenings and for other presentations as well. BREWING BEER ONBOARD Carnival Cruise Line has borrowed an idea from its sister line AIDA for brewing its own beer onboard. The Carnival Vista brews its Thirsty Frog Red Ale at its RedFrog Pub & Brewery, which itself can be found fleet-wide on Carnival ships. The pub provides both indoor and outdoor seating on the Lanai and also provides live music, brewing tours and various pub activities such as darts. AIDA was the first cruise line to build a brewery on some of its Diva-class vessels and has now expanded this concept on the AIDAprima. The Brauhaus is part of the ship’s restaurant offerings and serves a full lunch and dinner with an atmosphere reminiscent of Germany’s favorite celebration, Octoberfest. There is also live dance music, which makes the Brauhaus a lively evening spot. Carnival Vista brewery 83-90 .indd 9 1.3.2017 7.01
90 Cruise Business Review 1/2017 C arnival Corporation & plc announced in January that it has developed the world’s first interactive guest experience platform capable of transforming vacation travel into a highly personalized and elevated level of customized service for millions of guests. The company unveiled the Ocean Medallion, a first-of-its-kind wearable device that enables a personal concierge by bridging the physical and digital worlds to deliver a new level of personalized service not previously considered possible – including sophisticated wayfinding, food and beverage on demand, an array of interactive gaming, personalized entertainment experiences and more. The quarter-sized, 1.8-ounce disc can be accessorized with jewelry, clips, key chains and bands or simply carried in a pocket or pocketbook. Powered by proprietary technology developed by Carnival Corporation that features an Internet of Things (IoT) network of intelligent sensors and experiential computing devices, the Ocean Medallion revolutionizes guest service not only for the cruise industry, but the broader vacation industry. It was officially introduced by CEO Arnold Donald on January 5 when he became the first travel industry executive to deliver the opening keynote address at CES, the world’s largest annual consumer technology trade show. The Ocean Medallion goes well beyond the growing number of wearables used by theme parks and other vacation companies by leaving behind the required action of “tap” and ushering in a new paradigm for guest interactions. Some of its benefits will: – streamline and expedite the port embarkation and disembarkation process – allow guests to access their staterooms as they approach the door (no keycard required) – locate friends and family around the cruise ship – enable guests to purchase merchandise without any transaction, cards or paper – deliver enhanced dining experiences based on food and beverage preferences – power an array of interactive gaming and immersive entertainment experiences – significantly enhance interactions with crew members and guests. "With this interactive technology platform, we are poised to have our global cruise line brands at the vanguard of forever changing the guest experience paradigm – not just in the cruise industry but in the larger vacation market and potentially other industries," said Carnival Corporation’s Donald. “Our focus is on exceeding guest expectations every single day and consistently delivering great experiences, and we do that extremely well. Now we are in prime position to take the guest experience to a level never before considered possible and build on cruising's popularity and value as the fastest growing segment of the vacation sector.” The Ocean Medallion is the only accessory needed to elevate the guest experience before, during and after each cruise in what the company is calling Ocean Medallion Class. The Ocean Medallion pairs with an optional personalized digital concierge called the Ocean Compass, a digital experience portal available online, on smart devices, on kiosks in home ports, on stateroom TVs, on interactive surfaces located throughout the cruise ship and on devices carried by all guest service hosts. Both innovations combine with an invisible network of proprietary sensors and computing devices embedded throughout the ship, home ports and destinations that collectively form the “Experience Innovation Operating System” – xiOS. The proprietary xiOS uses a guest-centric, Internet of Things approach to enable guests to maximize their experiences in real-time based on their choices and preferences – delivering enhanced personalization across every aspect of their cruise vacation. The xiOS seamlessly leverages hardware and software to enable all experiences including access, lodging, food and beverage, entertainment, retail, navigation, payment and media. The new guest experience platform will debut on Princess Cruises’ ms Regal Princess in November 2017, followed by Royal Princess, Caribbean Princess and Island Princess in 2018. The new Medallion Class on Princess Cruises will be rolled out over multiple years on the entire Princess Cruises fleet. The guest experience platform is a key element of O·C·E·A·N or One Cruise Experience Access Network, a bold new effort by Carnival Corporation focused on expanding the cruise vacation market through guest experience innovation, the development of original experiential media content that includes new TV programs airing on national TV, and expanding its portfolio of exclusive and unique destinations. TECHNOLOGY GUEST SERVICES CARNIVAL CORPORATION INTRODUCES OCEAN MEDALLION 83-90 .indd 10 1.3.2017 10.10
Words simply can’t describe the experience of sailing through the Inside Passage from Vancouver to Alaska. Guests begin their journey in one of the most beautiful and vibrant cities in the world before travelling along British Columbia’s majestic coastline. With so much to see, it’s hard to say what your guests will talk about more – the journey or the destination. Make Vancouver your Alaska cruise homeport. Visit portvancouver.com to learn more. How’s the Alaska cruise from Vancouver? Give your guests more to talk about. Untitled-1 1 1.3.2017 13.42
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