ILO Maritime Labour Convention 2006 to take effect 20 August

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Written by Kari Reinikainen Kari Reinikainen

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Published: 19 August 2013 19 August 2013

The International Labour Organisation's (ILO) Maritime Labour Convention 2006 comes into force on 20 August, when it will replace 40 existing conventions and 29 regulations. Its aim is to provide seafarers with fair terms of employment and guarantee them safe, secure and decent living and working conditions on board ship, ILO says

Once the Convention is in force all ships which trade internationally must meet its requirements, whether their flag States have ratified it or not, ships will be subject to inspection. Inspectors’ powers are the same as those under ISM or MARPOL, including the power to detain ships that do not comply.

The Convention is comprehensive and sets out, in one place, seafarers' rights to decent working conditions. It covers almost every aspect of their work and life on board including:

minimum age

seafarers’ employment agreements

hours of work or rest

payment of wages

paid annual leave

repatriation at the end of contract

onboard medical care

the use of licensed private recruitment and placement services

accommodation, food and catering

health and safety protection and accident prevention and

seafarers’ complaint handling

Isabella sale gain keeps Viking Line in black in first half

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Written by Kari Reinikainen Kari Reinikainen

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Published: 17 August 2013 17 August 2013

Viking Line, the Finnish cruise ferry group, has posted a first half 2013 pre tax profit of €1.9 million compared to a loss of €14.9 million in the same period a year earlier. However, the fresh figure includes a gain of €22.8 million related to the sale of the cruise ferry Isabella to Tallink. Revenues rose 9.5% to €233.1 million.

In the second quarter, the company made a pre tax profit of €17.6 million compared to €0.9 million a year earlier. Revenues rose 6.4% to €140.3 million.Again the sale of Isabella improved the fresh figure.

"Competition in Viking Line’s service area remains tough and implies continued pressure on prices. Market growth is very low, but service on the Viking Grace is expected to continue its positive performance. The Group has an ongoing action programme to improve the efficiency of its operations," Viking Line said in a statement

"The Board of Directors believes that operating income excluding capital gains will improve in 2013 compared to operating income in 2012. Income before taxes, excluding the capital gain related to the sale of the Isabella, is expected to be at about the same level as last year.

The number of passengers on Viking Line’s vessels during the six month report period increased by 87,012 to 3,015,144 (2,928,132). The Group had a total market share in its service area of approximately 34.4% (33.8%). Viking Line’s cargo volume was 59,364 cargo units (61,494). Viking Line achieved a cargo market share of approximately 20.8% (20.6%).

 

Tallink reports first half loss on tax bill, reintroduces dividend

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Written by Kari Reinikainen Kari Reinikainen

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Published: 16 August 2013 16 August 2013

AS Tallink, the Estonian ferry company, has posted lower profit for the second quarter and a loss for the first half the year due to a tax bill that wiped out the positive effect of slight increase in revenues, the company said in a statement

 In the second quarter, net profit fell to €9.2 million from €19.9 million while revenues rose to €249.0 million from €244.8 million. A tax bill of €9.1 million hit the bottom line.

For the first half, the group reported net loss of €8.2 million compared to a profit of €1.0 million a year earlier. Revues rose slightly, to €4389.6 million from €438.6 million. Again, the tax bill caused the weaker bottom line.

The Group carried a total of 2.4 million passengers in the second quarter which is 1.0% less compared to the same period last year. The number of cargo units transported amounted to 79.8 thousand, which is 10.9% more than in the same period last year.

The number of passengers increased on the Estonia-Finland route by 3.1% but decreased between the Finland-Sweden route by 8.3%, where the competition situation has changed and the Group has decreased its capacity.

In June 2013 the Group successfully completed the private placement of a NOK 900 million (€118 million) senior unsecured bond issue. “The proceeds of the bond issue were used for the refinancing and strengthening of the Group’s financial position, increasing financial flexibility. Accordingly €100 million old loans were pre-paid,” the company said.

“One important strategic milestone in the Group’s lifecycle was reached in May 2013 when the shareholders annual general meeting decided to pay a dividend of €0.05 per share. The total dividend amount of €33.5 million was paid out in the beginning of July 2013 (third quarter),” Tallink said.

Norwegian Cruise Line plans to develop eco-friendly destination in Belize

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Written by Teijo Niemelä Teijo Niemelä

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Published: 15 August 2013 15 August 2013

Norwegian Cruise Line has announced that it has purchased approximately 75 acres in Southern Belize for the planned development of an eco-friendly cruise destination. The land, called Harvest Caye, is made up of two adjoining islands in the Stann Creek and Toledo districts that had previously been approved for a resort development with an air strip. Norwegian plans to invest $50 million in the project.

"As our fleet continues to grow to 15 ships by 2017, we expect that we will double the number of guests sailing on our Western Caribbean itineraries and, once this new destination is complete, bring four times as many guests to Belize than we do today," said Kevin Sheehan, Norwegian Cruise Lines president and CEO. "In our quest to continuously look for new and exciting destinations for our guests, we plan to develop a cruise destination focused on sustainable design and eco-friendly principles that will retain the natural beauty and local culture of this tropical paradise."

Norwegian has retained IDEA Inc. of Orlando, Florida to design the destination and bring the project to fruition. IDEA is an industry leading designer of branded ports of call and branded destinations for the hospitality, entertainment and tourism industries. IDEA has worked with private developers, government ministries, and independent agencies to create branded destinations in Alaska; Florida; St. Lucia; St. Maarten; Mexico; St. Kitts; Honduras; Bahamas; and Jamaica.

"This project will set a new standard in the development of an eco-friendly destination. Rather than an imposed plan, we are focused on a design approach that is determined by the local environment to ensure that the unique surroundings and features of the area will be protected and showcased for all to enjoy," said Hugh Darley, president of IDEA, Inc.

"At Norwegian, we have a strong commitment to the environment through our Eco-Smart Cruising philosophy. We will continue that commitment as we develop the Belize project and ensure that we are socially responsible in everything we do," said Colin Murphy, vice president, destination and strategic development for Norwegian Cruise Line.

While the master plan for the 75 acres is still under development, the vision is to create a world-class cruise destination, consisting of two locations: an island destination with docking/tendering facilities and a mainland connection point for inland tours. Major components of the project are anticipated to include a floating pier, island village with open-air structures on raised platforms, marina, transportation hub for tours to the mainland, a lagoon for a variety of water sports and a relaxing beach area. The goal is to design an authentic experience grounded in the storyline of nature, ancient culture, art, adventure and music that celebrates Belizean, Mayan and Garifuna history and culture.

The Government of Belize and Norwegian have signed a memorandum of understanding on the development that calls for adherence to Belizes environmental standards, creation of jobs for Belizeans, as well as significant economic impact, among other items. 

Belizes Prime Minister Dean Barrow has said that Belize needs to decentralize cruise tourism in an effort to reduce overcrowding and improve the visitor experience. Prime Minister Barrow also expressed confidence in Norwegian Cruise Lines commitment to responsible development that will have a positive economic impact while maintaining the integrity of natural resources.

The new destination is expected to benefit Belize directly with significantly increased head tax revenues, and at a local level with up to 1,000 new jobs. The creation of the new destination will also help relieve cruise tourism pressures in Belize City which has been called for in Belizes National Sustainable Tourism Master Plan.

Norwegian plans to employ a majority of Belizeans in the construction and operation of the destination in Belize. The company has also created a hiring program specifically for Belizeans who want to work in the immediate future on its vessels while the project is under development. Once the destination is ready to open, those Belizeans will have priority preference for the numerous staff positions needed to run the day-to-day operations.