Davie completes purchase of the assets of Helsinki Shipyard

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Written by Teijo Niemelä Teijo Niemelä

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Published: 03 November 2023 03 November 2023

Davie today announced it has finalized the acquisition of the assets of Finland’s Helsinki Shipyard Oy (HSO).

The historic transaction combines the skills, experience and capabilities of two leaders in Arctic shipbuilding and other high-value products. While the Canadian and Finnish shipyard will be separate legal and operating entities, the business headquarters will remain in Québec. The transaction will create opportunities for employees, encourage collaboration, facilitate the transfer of know-how, provide access to resources, and stimulate export potential.

While the details of the business purchase agreement are confidential, the transaction was made possible by a combination of Davie’s own funds and by €77 million ($110 million) of financing from the Québec government consisting of an equity investment of €30 million ($43 million) and a loan of €47 million ($67 million). A significant proportion of the funds will go to ensuring the shipyard has working capital while it gets up and running and secures new business.

Importantly, the Canadian government has looked favorably on the potential synergies resulting from the transaction for the construction of icebreakers under the National Shipbuilding Strategy.

Together, Davie and Helsinki Shipyard will deliver critical expertise for government and commercial customers. Both shipbuilders, renowned for their leadership and expert knowledge in clean energy solutions, will contribute to the creation of a greener and more sustainable ocean-going fleet.

The completion of the transaction is the culmination of a series of milestones, beginning in December 2022. In March 2023, Davie exercised an exclusive option to purchase the assets of HSO. This was followed in April by the signing of a business purchase agreement, and on July 4 Davie secured a new 50-year land lease from the City of Helsinki.

James Davies, Davie President and CEO, and Co-owner said, “We are delighted to bring two historic and highly complementary businesses together. It would not have been possible without the support of Québec, the City of Helsinki, Finland and Canada. We are confident our talented people and world-class supply chain will quickly form the preeminent global centre of excellence for green Arctic shipbuilding, and other specialized products. Empowered by Helsinki shipyard’s unique know-how, Québec can also more efficiently deliver Canada’s polar icebreaker order book, which is the western world’s largest.”

Alex Vicefield, Inocea Chairman and CEO, and co-owner added, “Linking together the capabilities, capacity and expertise of the two global leaders in ice-class vessel and icebreaker construction is a strategically important development for the western world. The Arctic is critical for future security, trade, navigation and the environment and Inocea is proud to be at the forefront of this next frontier.”

Pierre Fitzgibbon, Québec Minister of Economy, Innovation and Energy commented, “The collaboration established through this acquisition will benefit both the Davie Group and its multiple suppliers throughout Quebec. As a result, the Davie Group is well positioned to secure contracts around the world. This is a win-win transaction for both sides of the ocean.”

Jean-Yves Duclos, Canada Minister of Public Services and Procurement: “It is with great pride that we see Davie acquire a world-class shipbuilding jewel, boosting the efficiency of icebreaker and ferry construction as part of the National Shipbuilding Strategy. This acquisition will bring a clear advantage in terms of supply chain cost management through increased purchasing power, while maximizing the long-term economic impact for Canada and the greater Québec City region. Finally, the transaction will also open up new international markets for the local supply chain. This is yet another step towards making the Québec City region a world-class maritime hub.”

Wille Rydman, Finland Minister of Economic Affairs: “Thanks to the new owner, the future of the shipyard and the entire Finnish marine industry looks brighter. It is also very positive for the Finnish state that the change of ownership took place on market terms.”

Juhana Vartiainen, Mayor of Helsinki: “We have gained a strong, stable and competent operator from a reputable country for our shipyard operations. Versatile and vibrant business activity enables the success of Helsinki and enhances the well-being of our people. This is very welcome and happy news for all Helsinki residents.”

Kim Salmi, Managing Director, Helsinki shipyard: “This is the best possible news for Helsinki shipyard, our talented workforce and our supply chain. After months of planning, our top priority is to rapidly return this business to what it does best – designing and building world-class ships quickly, efficiently and cost effectively.”

Photo: Helsinki Shipyard photographed two years ago, when it was outfitting SH Minerva of Swan Hellenic. Credit: Teijo Niemela

New proposal to save the United States ocean liner

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 02 November 2023 02 November 2023

The SS United States, America’s Flagship, could return home to New York as a transformative economic development project unveiled today by the SS United States Conservancy, the owner of the famed vessel.

The plan, developed in conjunction with two prominent New York firms, RXR and MCR Hotels, would repurpose the legendary ocean liner as a unique, mixed-use destination, including a 1,000 key hotel, numerous food and beverage destinations, multiple event venues, acres of public green space, and a world-class museum. The project could be a capstone to a decades-long effort to protect and revitalize the Hudson River waterfront, create thousands of new jobs, and generate millions in tax revenue annually.

During her storied service career, the SS United States smashed the transatlantic speed record in 1952 using only two-thirds of her power, a record that has never been broken. From her Hudson River berth, she carried more than one million passengers, from celebrities and royalty to immigrants and tourists. She was also a top-secret convertible troop transport that could rush 14,000 troops 10,000 miles without refueling.

The release of a redevelopment plan comes at a time when the SS United States is in peril. The ship faces possible eviction from her current pier in Philadelphia. The vessel’s landlord doubled the Conservancy’s rent without notice during the coronavirus pandemic, placing significant financial strain on the organization. The Conservancy is presently in litigation on the matter, with a trial date slated for early December.

The conceptual plan for a privately funded, commercial redevelopment identified Manhattan’s Hudson River as the optimal “home port” for the vessel, due to its proximity to transportation and pedestrian access to the Javits Convention Center. The project would entail the redesign and reconstruction of adjacent piers, which would create acres of new public green space aboard the vessel and adjoining areas. The ship’s transformative potential is not restricted to New York. Other locations and port cities could benefit from the ship’s commercial revitalization and iconic status.

RXR and MCR developed full schematic design drawings, extensive engineering and construction feasibility diligence in consultation with U.S. shipyards, a financial analysis to demonstrate the project’s commercial viability, and an assessment of the permitting and regulatory requirements to advance the redevelopment program. The project diligence team included Gibbs & Cox, the vessel’s original design firm, Perkins Eastman and HLW architects, and local land use and regulatory counsel.

The overall program was informed by MCR and RXR’s extensive experience redeveloping iconic, historic properties in New York, including Eero Saarinen’s landmark 1962 TWA Flight Center and hotel at JFK Airport as well as Manhattan’s historic Pier 57.

The Conservancy is now seeking state and local interest from New York or other potential cities to advance its plan at a host pier location. The nonprofit organization and its development team are prepared to donate the ship and the design and engineering work completed to date to expedite progress in securing a prime location for the vessel’s revitalization.

“The SS United States symbolizes the nation’s ambition and innovation. Our development partners have embraced the patriotic and economic significance of this monumental project. Through their extensive due diligence, they have created a bold and exciting plan that preserves the ship’s history and activates the vessel’s commercial potential,” said Susan Gibbs, president of the SS United States Conservancy, the national nonprofit organization that has worked tirelessly to save it for more than a decade.

The ship was once a global ambassador of her namesake nation, and her red, white, and blue funnels were a source of pride and inspiration following the devastation of WWII. Although the Jet Age silenced her engines in 1969, the SS United States continues to represent an inspiring synthesis of post-war technological innovation, mid-century modern design, as well as the nation’s enduring ambition, resilience, and optimism.

“The Conservancy’s partners and passionate supporters from across the country and around the world have created a viable path forward to save the SS United States,” added Gibbs, the granddaughter of the ship’s original designer. “But we are quickly running out of time. We know this can be a viable, transformative project. Let’s rally together to secure a home for America’s Flagship.”

Disney Cruise Line embarks on inaugural season from Australia

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Written by Teijo Niemelä Teijo Niemelä

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Published: 29 October 2023 29 October 2023

Disney Cruise Line reached a new milestone on October 28, setting sail from the shores of Australia for the first time and embarking on an inaugural season of ‘Disney Magic at Sea’ cruises for families in Australia and New Zealand.

The special sailings aboard the Disney Wonder range from 2 to 6 nights and depart from four home ports: Sydney, Melbourne and Brisbane, Australia, as well as Auckland, New Zealand, through February 2024. ‘Disney Magic at Sea’ cruises offer guests the opportunity to explore new destinations along with the unique spaces, immersive dining and world-class entertainment that define a Disney Cruise Line vacation.

In fall of 2024, Disney Cruise Line will return to Australia and New Zealand for a second season of vacations after a set of bucket-list itineraries. The Disney Wonder will sail from Vancouver, Canada, to Honolulu, Hawaii, in late September 2024 with stops on the islands of Kauai, Maui and Hawaii before arriving in Oahu. From Hawaii, families will set sail on a transpacific voyage to Sydney, Australia, that will take them through the South Pacific to visit once-in-a-lifetime destinations such as Fiji, American Samoa and New Caledonia.

Carnival Jubilee scheduled to leave Papenburg on October 30

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Written by Teijo Niemelä Teijo Niemelä

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Published: 29 October 2023 29 October 2023

Meyer Werft's newest cruise ship, the Carnival Jubilee, is scheduled to leave Papenburg on Monday 30 October 2023 and will be transferred to Eemshaven (Netherlands) on the river Ems. Arrival in Eemshaven is scheduled for early Tuesday morning, October 31. After the technical and nautical trials, the Carnival Jubilee will set course for Eemshaven again.

The Carnival Jubilee is the first cruise ship built in Germany for Carnival Cruise Line. Within the Meyer Group, it is also the third ship of the Excel class: the Finnish shipyard Meyer Turku already delivered the Mardi Gras in 2020, followed by the Carnival Celebration in 2022. All three ships are equipped with low-emission LNG. The highlight for passengers is a roller coaster on board for the first time.

The following schedule applies to the Ems conveyance, which may be postponed at short notice according to weather and tidal conditions:

Monday, October 30, 2023

from approx. 09:30am Ship in waiting position (Papenburg)

approx. 12:00pm Passing the dock lock (Papenburg)

approx. 4:35pm Passing the Friesenbrücke (Weener)

approx. 7:45pm Passing the Jann-Berghaus-Bridge (Leer)

approx. 11.15pm Arrival at the Ems barrage (Gandersum)

Tuesday, October 31, 2023

approx. 01:30am Passing Emssperrwerk

approx. 03:15am Passing Emden

All information is subject to wind and weather conditions, water levels and therefore without guarantee. Time shifts are also possible at short notice!

Carnival Jubilee will sail the Ems towards the North Sea again backwards and with the support of two tugs. This way of transfer has proven to be successful due to the better maneuverability.

The transfer of the ship will again be carried out by the team of the pilot brotherhood Emden. The Ems pilots have been performing the maneuvers for many years. The team uses state-of-the-art technology to prepare for a realistic simulation of the Ems river passage in Wageningen (Netherlands).

The passage of Carnival Jubilee down the Ems will take place with the support of the Ems barrage. The duration of the passage will always be kept as short as possible so as not to interfere with navigation on the Ems.