Argentina and Uruguay seek to develop closer cruise ties with Chile

Alan Lam reporting

The port authorities of both Argentina and Uruguay have begun a bilateral cooperation aiming primarily at re-enforcing their cruise business relations with Chile.

In the light of the recent declines in cruise traffics to and from ports situated in the River Plate region (which suffered a 6.4% fall in calls and 4.1% reduction in passengers and crew during the last season), the authorities of both countries are keen to seek out new opportunities. They have recently reached an agreement intending on establishing stronger cruise port ties with Chilean ports from the 2016-2017 season onward.

In practice, they aim to link ports in and around River Plate - such as Montevideo, Buenos Aires, Colonia, and Punta del Este - with Chilean ports such as Punta Arenas, Puerto Montt, and Valparaíso, creating a so-called “cruise circuit” (circuíto de cruceros) among them, stretching from the Atlantic to the Pacific.

A meeting was held in Buenos Aires in late August, attended by key representatives from both Argentina and Uruguay, to discuss strategies; but, interestingly, formal negotiations with Chilean authorities have yet to take place.

This initiative speaks as much about ameliorating the cruise business relations between Argentina and Uruguay as it does about cooperation with Chile. “Strengthening the cooperation with Uruguay,” said Gonzalo Mortóla of Argentine Port Administration (Administración General de Puertos de Argentina), “is fundamental to maximizing the links with the rest of the region and with the world.”

The cooperation among these Southern Cone countries will have a limited effect on cruise business without a substantial increase in capacity deployment and a corresponding improvement in the macro-economic outlooks of Argentina and Brazil - the two key source markets of the region. But the vibrancy of the expedition cruise market does work in their favour.

Global Port Holdings appoints Stephen Xuereb COO

 Global Port Holdings (GPH), the world’s largest cruise port operator, says it has appointed Stephen Xuerenb as Chief Operating Officer (COO) of the company that operates 11 ports in eight countries. He joins his new position from that of General Manager of Malta Cruise Port, one of GPH group members. Xuereb has been employed in the cruise industry for the past 15 years, GPH said in a statement.

Liverpool approves £950,000 feasibiity study for larger cruise terminal

Authorities in Liverpool have approved a £950,000 feasibility study into a proposed new cruise terminal development. “The west coast UK port has long held ambitions to expand its offer with the construction of a purpose built facility capable of attracting additional turnaround business and handling up to 3,600 passengers,” Cruise Liverpool that promotes the city for the cruise industry said in a statement.

“A footprint for the planned development has already been identified. It will require demolition of a former timber landing stage, which once handled Liverpool’s transatlantic services until the late 1960s, and construction of a platform in the river to accommodate the new terminal. It is envisaged that this building will be on two levels built on reclaimed land,” it added.

Liverpool’s existing cruise berth opened nine years ago with the aim of securing day calls. A temporary passenger facility was subsequently added in 2012 and the city now attracts turnaround as well as transit business.

The River Mersey terminal is this year scheduled to handle 61 vessels and 76,000 passenger who are able to disembark directly onto the city’s world famous, UNESCO World Heritage Site waterfront.

A report to the City Council’s ruling Cabinet set out next steps in the development plan and the need for detailed investigations, impact assessments and surveys. Councillors gave the go ahead to the work which will be led by a consortia of technical specialists including Ove Arup & Partners, Royal Haskoning DV, Tuner and Townsend and KKA Architects.

 

P&O Cruises to base Oceana at Malta in 2017

The new Malta to Malta cruise itinerary of P&O Cruises’ 77,441 gross ton Oceana which is due to commence in 2017 has been announced during a press conference held at Valletta Cruise Port.

The Minister for Tourism Edward Zammit Lewis explained that this development is exciting for the tourism sector and that he looked forward to enhancing further the relationship with P&O Cruises, the UK focused contemporary market unit in the Carnival Corporation & plc group, considered a leader in the cruise industry this year celebrating 180 years of globetrotting adventures.

The Minister remarked that during 2017 over 100,000 passenger movements will be handled through this fly and cruise programme on 27 calls, with a further 10,000 passenger movements on five further calls visiting Malta on port of call. Moreover, additional port calls are planned for 2018.

‘It is primarily thanks to such initiatives that Malta’s cruise sector has been successfully evolving and growing from one which was exclusively a port-of-call, to one which now includes home-porting that benefits the Maltese tourism industry in various ways’, said the Minister in a statement.

He further explained that cruise passengers who fly to Malta to start a cruise on a home-porting vessel increase passenger flow at the airport and support airlines in achieving even higher seat factors, thus contributing to the long-term sustainability of the various airline routes into Malta. Furthermore, a number of cruise passengers even opt to add a few nights in Malta before or after their cruise adding further to the economic benefits for all the tourism operators and the economy in general.

The Minister for Tourism also remarked that the cruise market also breathes new life into the Maltese harbours and assists urban regeneration. He said that cruise liners expose the charms of our archipelago to about half a million cruise passengers every year. Eventually a substantial number of these first time visitors also come back to the Maltese Islands for a longer stay, therefore generating even further business.

Furthermore, the Minister referred to official cruise passenger data released recently. Everything indicates that the record success registered by the cruise industry last year will continue also into 2016. According to latest published figures by NSO, Malta registered nearly 240,000 cruise passengers during the first half of this year, an increase of 6.2% on 2015. There were 125 port calls between this January and June in our Grand Harbour, 8 more than that recorded in the same months last year. Looking forward, according to projections we will reach the absolute record of 700,000 passenger traffic, an increase of 4.4% over last year.

"These results reflect the concerted and co-ordinated drive by all stakeholders, including Valletta Cruise Port, Mifsud Brothers Ltd., the Malta Tourism Authority and the Malta International Airport, to develop our product and promote Malta’s increasing attractiveness and popularity as a leading cruise destination in the Central Mediterranean, in what is a highly competitive market," added the Dr Edward Zammit Lewis.

 

 

 

 

Meanwhile Ivan Mifsud, Managing Director of Mifsud Brothers Ltd. (Malta Cruise Services) stated: ‘We are delighted that P&O’s “love affair” with Malta which started way back in 1837 when Peninsular Steam Navigation Co., which started as a mail service from London to Malta has now blossomed to a turnaround operation which will start next year to coincide nicely with the 180th Anniversary since P&O started calling in Malta.

Port of Buenos Aires to reduce tariffs for cruise ships

Alan Lam reporting

It seems that the authorities in Argentina is finally responding to long-standing calls from the cruise industry. In a press conference held yesterday (11 August) - chaired by Guillermo Dietrich, the Minister of Transport, and Gonzalo Mórtola, the head of the port of Buenos Aires - it was announced that a tariff reduction for cruise vessels calling at the port will be implemented from 2017.

It has been a well-established fact that Buenos Aires has hitherto levied the heaviest tolls on ships using its ports. Cruise operators such as MSC Cruises and Costa Crociere have been lobbying local authorities for a reduction for years. Recent economic crisis and decline in cruise activities in the region seem to have prompted the decision.

As a measure to improve competitiveness and attract more tourists to the country, the Ministry of Transport and the port administration yesterday jointly announced this cruise-specific tariff reduction.

Effective from 2017/18 season, it is understood that the reduction will be in the form of progressive discount, depending the number of passengers. From October 2017 to April 2018, cruise lines bringing in up to 350,000 passenger will be charged at US$45.5 per person; thereafter for every 10,000 passenger there will be a US$0.50 per passenger discount.

“We are working closely with the sector to create a condition that will make Argentina a competitive destination,” said Guillermo Dietrich. “We want to see more cruise ships and more tourists coming to our country.”

“This tariff reduction represents a great effort made by the port,” said Gonzalo Mórtola. “We are convinced that this measure is necessary to make us more competitive in the market.”

The reduction does not appear to have gone far enough; nevertheless it is a step in the right direction. Considering the fact that the port of Buenos Aires only received a total of 329,600 cruise passengers in 2015, the threshold for discount is set unrealistically high.

Cruise lines’ reponses are yet to be heard.