P&O Cruises, Cunard Line cut Baltic, Norway cruises by 28% on emission control rules 2013-15 - report

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Written by Kari Reinikainen Kari Reinikainen

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Published: 07 July 2014 07 July 2014

Carnival UK, which operates Carnival Corp & plc group brands in the country, has warned that cruising in northern Europe “is not sacrosanct” as the shipping industry cranks up pressure against tighter planned international rules on sulphur emissions, a media report says.

Chief executive David Dingle told Travel Weekly that company brands P&O Cruises and Cunard Line have already planned a 28% cut in Baltic and Norway cruises between 2013 and 2015.

Despite a large increase in new ex-UK capacity targeting newcomers to cruise holidays next year, the Baltic region is not a strong draw for new to cruise passengers, suggesting further reductions could be possible.

Dingle spoke after a cross-party group of MPs last week lobbied the government to amend the rules to give the cruise and ferry sectors time to adapt their ships, the report said.

The sulphur content of fuel must fall to 0.1% in January 2015 in the Baltic, North Sea and English Channel to cut pollution.

BC Ferries orders three newbuildings from Poland

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Written by Teijo Niemelä Teijo Niemelä

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Published: 04 July 2014 04 July 2014

Following the completion of an extensive competitive bidding process, BC Ferries has awarded Remontowa Shipbuilding S.A. of Gdansk, Poland contracts totaling $165 million to build three new intermediate class vessels.

The contracts have been approved by BC Ferries’ Board of Directors, as well as a total project budget of $252 million that includes financing and project management costs that would have been incurred regardless of where the vessels were built. The budget also includes $51 million for Canadian taxes and federal import duties. The total project budget is within the capital envelope set by the BC Ferries Commissioner.

"These are design-build, fixed-price contracts that provide BC Ferries with substantial guarantees related to delivery dates, performance criteria, cost certainty and quality construction,” said Mark Wilson, BC Ferries’ Vice President of Engineering.

Other highlights of the contracts include:

– Remontowa assumes all design, construction and delivery risk

– Guarantees are in place for vessel completion dates

– Favourable payment terms with 80 per cent payment upon vessel completion

– Vessel performance guarantees related to speed, carrying capacity, manoeuvrability and fuel consumption

– Warranties above industry standard

– Penalties for late delivery

– Refund guarantee

"As we begin the next phase of our newbuild program, a key objective is to achieve capital and operating cost savings and efficiencies through an overall class and standardization strategy," said Wilson. "Standardization offers greater interoperability and lower crew training and maintenance costs, and also enhances safety. This is a significant step forward in taking BC Ferries from 17 classes of ships to five classes."

The new intermediate class vessels will be the first vessels in BC Ferries’ fleet to operate as dual-fuel capable using Liquefied Natural Gas (LNG) or diesel fuel for propulsion and power generation. “This is an exciting initiative for BC Ferries that can reduce upward pressure on fares due to lower fuel costs for LNG, and reduce the environmental emissions substantially since LNG is a cleaner and greener fuel compared to current alternatives,” said Wilson.

Two of the new ships will replace the 49-year old Queen of Burnaby, which sails between Comox and Powell River and the 50-year old Queen of Nanaimo, which services the Tsawwassen – Southern Gulf Islands route. The third vessel will augment peak and shoulder season service on the Southern Gulf Islands route, plus provide refit relief around the fleet. These new 105 metre vessels will accommodate 145 vehicles and 600 passengers.

The first new intermediate class vessel is scheduled to arrive in British Columbia in August 2016, the second in October 2016 and the third in February 2017. Remontowa is responsible for delivering the vessels to Victoria. The first vessel is expected to be in service in the fall of 2016, following extensive crew training and familiarization.

The Gdansk ship repair and shipbuilding yard Remontowa Shipbuilding S.A , which is one of the world’s leading shipyards with state-of-the-art design and production facilities, is a member of the Remontowa Holding capital group specializing in ship design and construction of new ships, conversions and repairs, offshore units and steel structures. The shipyard was established in 1952 and privatized in 2001.

BC Ferries conducted an extensive competitive bidding process to ensure that the company secured the best bid for its customers and the taxpayers of British Columbia. One shipyard from BC, Seaspan’s Vancouver Shipyard, was among the five shipyards shortlisted and invited to participate in the RFP process, however they decided to withdraw as they indicated they have maximized their available capacity due to commitments with the federal government building vessels under the National Shipbuilding and Procurement Strategy as well as constructing BC Ferries’ new cable ferry.

Criteria for shipyard selection included the design and construction plan, recent experience building intermediate ferries, capability of introducing new technology such as LNG, customer satisfaction (references from other customers), delivery schedule, price and payment terms, financial stability and ability to provide guarantees.

Under contract to the Province of British Columbia, BC Ferries is the service provider responsible for the delivery of safe, efficient and dependable ferry service along coastal British Columbia.

Installation of all sponsons complete; 10 days to possible refloating of Concordia wreck

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Written by Teijo Niemelä Teijo Niemelä

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Published: 04 July 2014 04 July 2014

Installation of the last sponson, P1, on the port side of the wreck of the cruise ship Costa Concordia has been completed as planned this afternoon. Now, ahead of authorization from the Monitoring Observatory, technicians can start to test all the systems for the final refloating of the Concordia.

"Following installation of the last sponson, we can start the countdown to refloating and final departure of the wreck from Giglio Island," said Costa Crociere S.p.A. Group CEO Michael Thamm. "Now all our energies are focused on the successful conclusion of this unprecedented engineering challenge to respect a precise commitment: Remove the Concordia wreck as soon as possible, in compliance with the highest environmental and safety standards."

Thirty sponsons have been positioned on the two sides of Concordia. When the refloating operation begins, the sponsons will be gradually emptied of ballast water by means of a pneumatic system, thereby providing the necessary buoyancy to refloat the wreck. At the end of this operation the wreck will have a draft of approximately 18.5 meters (60.7 feet). The Concordia will then be towed from Giglio Island to Genoa for dismantling and recycling.

The last phases of the Concordia wreck removal project will be explained in detail in the next few days. Information about the progress of operations and details of upcoming media briefings will be posted on the project website: www.theparbucklingproject.com.

P&O Cruises and Cunard temporarily lift agent commission to 13.5% in UK - report

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Written by Kari Reinikainen Kari Reinikainen

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Published: 02 July 2014 02 July 2014

P&O Cruises and Cunard Line, two UK focused brands of the Carnival Corp & plc group, have temporarily increased the commission they pay to travel agents in the UK to 13.5% from 7.5%, Travel Weekly reports.

"The promotion, running through July for Cunard and until the end of August for P&O Cruises, covers cruises departing from September 2014 to June 2015. It comes after the Carnival UK that operates the two companies in the UK cut commission to 5% in 2011, only to restore rates to 7.5% last year," Travel Weekly said.

Agents applauded the brands for “showing the love”, but expressed fears the increased commission would encourage discounting.

Chris Truscott, sales and distribution support director at Carnival UK, urged agents to keep the extra cash themselves rather than pass it on to customers. He was quoted as saying: “I’m hoping agents will take these rewards and reinvest in their businesses to assist their growth and earnings in the longer term.”