Top Headlines

Cunard appoints SMC Design for Queen Mary 2 refit

Details

Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 15 September 2015 15 September 2015

Cunard has appointed SMC Design to lead the development of Queen Mary 2's interior spaces in preparation for her forthcoming major refit in 2016. The Cunard flagship will undergo a multi-million 25-day (27 May – 21 June) extensive refurbishment that will see new interior designs and new guest experiences introduced on the most iconic ship in the world as she begins the next chapter in what has already been an illustrious career.

This announcement follows on from the recent well-received news that Queen Mary 2 will gain 15 new single cabins and an additional 30 Britannia Club cabins during the refit and that the very popular kennels will be expanded to cater for the high demand this unique facility already attracts. Today’s announcement about the appointment of SMC Design will be the first of several unveilings the company has planned underlining the importance of the work to be undertaken on Queen Mary 2. SMC Design was founded in 1994 and is a London-based design consultancy that specializes in the maritime sector.

The design team has worked on many ships from small luxury yachts to some of the largest ships ever built. The company also has a history of working with Cunard ships past and present, leading previous refit projects of QE2, Cunard Countess and Cunard Princess while also being involved in the designs for its current fleet: Queen Mary 2, Queen Victoria and Queen Elizabeth. SMC’s Managing Director Andy Collier was in fact part of Queen Mary 2’s launch design team at the beginning of the Century when she was the first Atlantic liner to be built for over 35 years.

The new Queen Mary 2 designs will focus on updating iconic art deco lines and subtly introducing classic Deco touches inspired by Cunard's rich heritage. The original Art Deco masterpiece Queen Mary has been one of the sources of this inspiration with the new interior designs bringing Cunard’s decorative and glamorous past into the 21st Century.

The new designs aim to give the interior spaces clear identity and character with some strong traditional Cunard colours introduced as features and off-set against more neutral Queen Mary 2 tones. With new signature colour schemes, new carpets, new furniture as well as more decorative fixtures and fittings installed throughout the largest ocean liner in the world, the design approach is set to ensure the flagship retains her leading position.

“Cunard has a unique rich heritage in both the nautical and design fields and we have researched into these and looked to incorporate aspects of pattern and design into our plans,” said Andrew Collier, SMC Managing Director. “Particular attention has been paid to taking inspiration from the original Queen Mary and our aim is to enhance existing designs as well as implement a decorative overhaul, looking to emphasize the feeling of understated elegance. Clean lines and simple designs will instill as sense of glamour and relaxation. We are very excited to be part of the project to bring a new look and style for the world’s most famous ship,” Collier added.

And it's not just design experts who are helping to shape the future of Queen Mary 2. Over the last eighteen months Cunard has been consulting and testing different ideas with thousands of past and future guests across the world. These ongoing consultations are an important element of the work being undertaken in preparation for refit and the valuable opinions from the people who know Cunard and Queen Mary 2 better than anyone is actively being incorporated into the exciting and extensive development plans that will be revealed over the coming months.

“Queen Mary 2 is the pride of the Cunard fleet. With SMC’s proven maritime design expertise, invaluable input from thousands of Cunard’s discerning, international guests, and 175 years of history as our foundation, we look forward to even more exciting design innovations on the already legendary Queen Mary 2,” said Richard Meadows, president, Cunard North America.

Celestyal Cruises in charter deal with Clipper Group

Details

Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 15 September 2015 15 September 2015

Celestyal Cruises, part of the Cyprus based Louis group, has chartered the 1992 built cruise ship Gemini for three years from Clipper Group, the Bahamas based shipping group, and plans to introduce it in the eastern Mediterranean as Celestyal Nefeli next year, the company said in a statement.

The ship, which has gross tonnage of about 19,000, will be refurbished before it will take up an as yet unspecified cruise programme in the eastern Mediterranean. Celestyal, which has two other ships, plans to focus on smaller ports of call in the region. It will operate from Turkey and replace another charred ship.

Celestyal Cruises was known as Louis Cruises until the company was renamed last year. Celestyal Nefeli started life as Crown Jewel of the now defunct Crown Cruise Line, while the Celestyal Olympia of 1982 and of some 38,000 gross tons first sailed as Song of America of Royal Caribbean Cruises Ltd. (RCCL). Celestyal  Cristal, which is about 26,000 gross tons, was originally Sally Albatross that was built in 1992.

Clipper Group, which is a major dry bulk carrier operator, has been shedding non-core activities, which include ownership of cruise vessels to be operated by third parties.

Seatrade Europe coverage - Appetite for financing ocean and river cruises has returned

Details

Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 15 September 2015 15 September 2015

Alan Lam reporting from Hamburg

During the session on finance for ocean and river cruises at this year’s Seatrade Europe, held in Hamburg, the panellists from various leading maritime finance institutions and consultancies in Europe declared that appetites for financing cruise shipping had returned after the recent financial meltdown.

The funds for financing newbuildings and new companies are once again in place. Not only there are a number of ways of financing a new cruise enterprise or initiative, there are plenty of private and public investors interested in and willing to investing in the sector, which is no longer deemed as a “grey” investment, but a “white” one; by this it means that the industry is now a reliable and established business for investors who can legitimately expect healthy returns.

The money is there, we are told, and there is plenty of it. “Banks are ready to finance shipping again,” said Dr. Dieter E. Jansen of Dr. Jansen Newsmedia AG & EXXECNews. “Unbelievable amount of money is deposited in private bank accounts from which they generate no return. They [the account holders] are looking for investment opportunities. They are hungry for return. Anything more than 0% is a big deal today.”

The traditionally popular oil and gas market is not performing well either. Investors are now eager to put money elsewhere, such as in cruise businesses.

The financing options seem limitless, too. Besides bonds and shares issues, there are other tools like exports credits, direct state lending, combine bank and public financing, direct and indirect financing. In the USA, SPACs (Special Purpose Acquisition Companies) have emerged and available to finance cruise enterprises.

Banks are more willing to take risks in cruise enterprises, which are now considered to be a more stable industry. They continue to form consortium, often made up of 10-15 banks, to finance bigger and bigger projects. The German bank KfW, for example, is currently financing 47 newbuildings on Viking River Cruises.

As a tribute to the efforts made by the industry in recent years in promoting the economic and social benefits of cruise business, there is now also a growing appetite among governments to finance cruise shipping. There are a handful of 100% state financed projects currently underway in various parts of the world.

This is an immense opportunity on offer for the sector at the moment. While major cruise lines can relay on their own liquidity and shareholders to fund their schemes, smaller companies and new start-ups can rely on public and private financing.

Seatrade Europe addressing multiple issues

Details

Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 10 September 2015 10 September 2015

Seatrade Europe, the bi-annual cruise industry gathering in Hamburg, was kicked off this morning (9 September) with the State of the Industry address by the eloquent Pierfrancesco Vago, Chairman, CLIA Europe & Executive Chairman, MSC Cruises. He sounded a positive note by highlighting the immense growth that had been achieved by the cruise industry in Europe. But the growth has been faltering in the last two years due to a number issues.  

The pressing issue

The most pressing issue is finding a way of reversing the slowdown in European cruise business. Only 0.5% growth in passenger numbers and 2% increase in revenue were recorded between 2013 and 2014. A lot of this, according to Pierfrancesco Vago, was due to the 11.2% reduction in capacity deployed in the Mediterranean, which, in turn, was due to geopolitical issues and the unfavourable exchange rates.

In his view, Europe could return to the golden years of growth if all the necessary frameworks were in place and the issues plaguing the industry were properly addressed. These issues included patchwork applications of the EU Sulphur Directive and the inadequacy of port reception facilities. “How can we grow if we have only a handful of ports that can discharge waste water?” he asked.

The industry also needed to source passengers from outside of Europe. This suggestion once again brought to fore the stringent visa policy exercised by the Schengen member states. Visa reform was not happening quick enough, according to Dominic Paul, SVP International, Royal Caribbean International, Celebrity Cruises & Azamara Club Cruises, and Managing Director, RCL Cruises Ltd., who cited a survey suggesting that about 20% of Asians were dissuaded from coming to Europe during the visa application process.


But Michael Thamm, CEO, Costa Group, looked at the visa issue from another angle. “Is visa really our number one priority?” he asked. “What about the low penetration rate? Only 1% of the population in Europe is cruising. We ought to look at the potentials closer to home.” Europe certain has no shortage of opportunities when it comes to growth.  

The geopolitical issue

The cruise industry seemed to have learned to cope with geopolitical conflicts better in recent years, to the point that it no longer sees them as an issue. “We have been able to absorb the fallout from Tunisia,” said David Dingle, Chairman, Carnival UK & Vice Chairman, CLIA Europe. “The industry is getting more used to geopolitical conflicts. We are now very good at finding alternatives; we are good at opening up new ports; and we are also good at encouraging Europeans to cruise beyond Europe.”

Geopolitics has also become less of an issue for the industry’s customers. “People are well informed of the reality,” said Manfredi Lefebvre d’Ovidio, Chairman, Silversea Cruises. “They still go to France, for example, despite what happened there recently.”

“We have not noticed any of our passengers cancelling for geopolitical reasons,” said Wybcke Meier, CEO, TUI Cruises GmbH. “Our passengers depend on us and trust us to keep them safe.”

“One of the big advantage of our industry is that we are able to re-group and re-deploy,” said Karl J. Pojer, CEO, Hapag-Lloyd Cruises. “We think very carefully what we do. Our passengers are becoming more and more informed. They follow world affairs and they know what is going on.”

Driving the objectives

Various suggestions were put forward in an effort to address other issues, such as port congestions, logistics, local resistance to cruise business and environmental protections. “Much depends on the level of engagement we have with ports and help them understand the value of cruise industry,” said David Dingle. “The onus is on the cruise industry to drive its objectives harder.”

Cooperation and dialogue were again highlighted as the way forward for the cruise industry in Europe. “Only by working together can Europe remain a cruise powerhouse,” said Pierfrancesco Vago. “We face some big challenges; CLIA and the cruise industry will do whatever is necessary to overcome them.”

“There is a fundamental issue here in Europe,” concluded David Dingle, “that is, Europe is very good at regulating, but not good at spotting opportunities. CLIA will engage and address this issue through dialogues between all interested parties.”

The conference continues …