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Hyundai Mipo shipyard chosen to build new Interislander ferries

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 02 January 2021 02 January 2021

KiwiRail in New Zealand has named Hyundai Mipo Dockyard (HMD) based in Ulsan, South Korea as its preferred shipyard to build the two new Interislander ferries.

KiwiRail Chief Executive Greg Miller said the decision to work with HMD was a significant step forward for the new Interislander project and the culmination of a robust, competitive, year-long selection process.

“Our ship procurement team and the evaluation panel, including naval architects, ship brokers and maritime lawyers, have undertaken a rigorous process to select the right shipyard and this announcement, on schedule, is a great end to the year for our team,” Miller said a statement released just before the Christmas.

“KiwiRail has been working hard at this since first seeking Expressions of Interest in August last year. Based on responses to that process, we undertook a Request for Information in October 2019, followed by Requests for Proposals.

“At all stages we were impressed by the quality of applicants and today’s announcement is the culmination of the selection phase of this important procurement.

“KiwiRail has specified a Makers’ List of components – predominantly American and European, including the engines, propulsion system and navigation system - to ensure the new ships will serve New Zealand well for the next 30 years.

“The two new ferries and the upgraded terminals in Waitohi Picton and Wellington are a major investment in the future of the Cook Strait freight and passenger services, with a significant taxpayer contribution. It’s crucial that we deliver the best outcome for New Zealand and for our passengers and customers and with the selection of HMD shipyard, I am confident we have achieved that.”

Miller said after the technical and commercial negotiations phase, the aim is to have the final shipbuilding contract signed by mid-2021 and construction of the ferries underway by late 2022.

Once commissioned and built, the two new ferries will replace KiwiRail’s three ageing Interislander ferries,which are nearing the end of their working lives. KiwiRail operates around 3800 services a year, transporting about 850,000 passengers, 250,000 cars and up to $14 billion worth of freight, but with significant growth predicted.

New terminals and berths in Waitohi Picton and Wellington are planned to accommodate the new ferries and improve the Interislander service for customers and staff.

HMD is the world’s sixth-largest shipbuilder globally with decades of experience building complex ships, including HMNZS Aotearoa for NZDF.

It is over 20 years since New Zealand introduced a brand-new purpose-built ferry to its fleet. Once built, the two new ferries will be more efficient and support KiwiRail’s goal to reduce carbon emissions by 30 per cent by 2030 and be carbon neutral by 2050. The new ferries will be designed to use different energy sources through their life if these are available in New Zealand, and at day one will provide for battery operations when docking and plug into local power supply at each port.

The Government committed $400 million in Budget 2020 to the New Interislander project, building on a $35 million-dollar investment in Budget 2019.

Massimo Soprano, Ships Programme Manager at KiwiRail, said the selection process had been highly competitive with some of the best shipyards in the world putting in tenders for the contract.

“We have been fortunate to have such high-quality shipyards to choose from. In taking HMD forward into detailed negotiations we know we have a shipyard that can deliver on every front: design, production, quality, and they have a great track record on delivery,” he said.

“For KiwiRail, the quality of build is vital as the Cook Strait route works our ferries hard, and reliable performance across their anticipated 30-year life span is crucial. HMD has recently done work for the New Zealand Defence Force, so we are aware of the high-quality nature of its work.”

Miller said that despite the complexity and number of parties involved in the purchase of the two new ferries and the terminal upgrades in both Waitohi Picton and Wellington, things were progressing well with the new Interislander project.

“We have made good progress with design of the Waitohi Picton terminal redevelopment, we have now settled on our preferred shipyard to enter final negotiations and we are focusing our efforts on the redevelopment at the Kaiwharawhara terminal site in Wellington,” Mr Miller said.

A Letter of Intent (LOI) has now been signed with HMD. A LOI is a non-binding agreement that allows KiwiRail and HMD to progress to more detailed contract negotiations and is a normal step in the procurement process for large-scale ship building.

Crystal Endeavor sale and leaseback falls through

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 28 December 2020 28 December 2020

An agreement regarding the sale and leaseback of Crystal Endeavor, the first of three high end of the market 19,500 gross ton expedition cruise vessels Crystal Cruises has on order, has fallen through, the cruise line’s parent company Genting Hong Kong said in a statement.

The Covid-19 pandemic has led to a significant delay in the construction of the ship at MV Werften, which is also part of the Genting Hong Kong group. This together with constrains for cruise operations to resume led both parties to agree to terminate the proposed transaction.

“Further, the parties agreed that the First Installment to be refunded to the Purchaser under the Acquisition Contract shall be set off against the Subordinated Loan to be repaid to the Seller under the Subordinated Loan Agreement,’ Genting Hong Kong said, adding that its board considers that the terms of the Termination Agreement are fair and reasonable and in the interest of the company and its shareholders as a whole.

New Indian cruise venture emerges

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 28 December 2020 28 December 2020

A new company has emerged in India, which has acquired one ship and says is in the process of looking for a second one.

Called Cordelia Cruises, the new company has acquired Empress of the Seas built in 1990 and of 48,563 gross tons, from the Royal Caribbean Group.

“It gives me immense pleasure to inform you that Waterways Leisure Tourism Pvt Ltd that recently bought over the Jalesh Cruises brand has decided to further capitalise the massive potential of cruising by entering the Indian market, with the Empress of the Seas, that belonged to the Royal Caribbean International until recently,” Jurgen Bailom, President & CEO of Cordelia Cruises said in a statement.

The new venture is part of Waterways Leisure Tourism Pvt Ltd, which has also taken over the Jalesh Cruises brand, which had to cease operations in the wake of the Covid-19 pandemic. It used to operate the 70,310 gross ton Karnika, built in 1990 as Crown Princess for Princess Cruises.

Cordelia Cruises is already in the process of adding a second ship to its fleet, Bailom said.

On 16 December, Royal Caribbean Group said it had sold Empress of the Seas and Majesty of the Seas that was built two years later and which measures at 73,941 gross tons to a buyer based in Asia-Pacific that would release details for future sailings at a later time. As yet, no news has emerged regarding the future of Majesty of the Seas.

Viking Octantis meets water for first time

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 24 December 2020 24 December 2020

Viking has announced its first expedition ship – the 378-guest Viking Octantis – was “floated out,” marking a major construction milestone and the first time that the new ship touches water. Scheduled to debut in early 2022, Viking Octantis will spend her maiden season sailing voyages to Antarctica and North America’s Great Lakes. A second, identical expedition ship, Viking Polaris, is set to debut in summer 2022 and will sail journeys to Antarctica and the Arctic. Viking has also developed a series of short videos about the new expedition voyages, ship design and prestigious scientific partnerships, which can be found on its website here .

“Working with Fincantieri over the last eight years, we have built the world’s most beautiful ocean ships. We are pleased to continue our partnership with Fincantieri’s VARD and celebrate this important milestone in the construction of our first expedition vessel,” said Torstein Hagen, Chairman of Viking. “In creating ‘the thinking person’s expedition,’ we are perfecting polar expedition cruising, and we will usher in a new era of comfortable exploration in the heart of North America. Viking Octantis and her sister ship, Viking Polaris, will allow our guests to explore further – to the ends of the earth as well as closer to home. I would like to thank our partners at VARD and everyone working at the yard for the hard work and dedication on the building of Viking Octantis; we look forward to welcoming her to our fleet in early 2022.”

The float out is significant because it denotes a ship moving into its final stage of construction. The float out ceremony of Viking Octantis took place on December 22; she was then moved to a nearby outfitting dock for further construction and interior build-out. After final outfitting, Viking Octantis will be delivered at Fincantieri’s VARD shipyard in Søviknes, Norway.

Esteemed explorers Liv Arnesen and Ann Bancroft will be honored as ceremonial godmothers to Viking Octantis and Viking Polaris, respectively. Arnesen, a native Norwegian, became the first woman in the world to ski solo and unsupported to the South Pole in 1994. Bancroft is the first woman to successfully ski to both poles. Arnesen and Bancroft also became the first women to ski across Antarctica in 2001. Together they co-founded Bancroft Arnesen Explore / Access Water, an initiative that aims to engage and empower more than 60 million minds to create a sustainable tomorrow.

Royal Caribbean Group announces $40 million travel advisor support programme

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 21 December 2020 21 December 2020

Royal Caribbean Group, the world’s second largest cruise shipping company, has decided to launch a $40 million programme to support travel advisors to weather the Covid-190 pandemic.

Called "Pay It Forward," it is a second phase of its RCL Cares programme to support its travel advisors as they look to rebuild their businesses after a challenging 2020.

“The program makes a $40 million pool of funds available to qualifying travel advisors, who can apply for three-year, interest-free loans of up to $250,000 to keep their businesses focused on a return to growth at a time when the pandemic shows increasing prospects for coming under control,” the company said in a statement

"We know our travel advisor friends are suffering, too, and we will get through this tough period together, just as we always have," said Richard Fain, Royal Caribbean Group's chairman and CEO.

"Our travel partners have stood strong beside us for more than 50 years, and we are determined to be there for them now. We're going to get to the other side of this challenging time together," he added.

The company said details about the application process for the program would be shared directly with travel advisors in January.