Top Headlines

UPDATE: Star Cruises contracts newbuilding from Meyer Werft; delivery in October 2016

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 October 2013 07 October 2013

UPDATE – Meyer Werft statement: Meyer Werft will deliver Flag Ship for Asia in Fall 2016

Star Cruises, the leading cruise company in Asia, has placed a contract with German shipbuilder Meyer Werft for a new cruise ship – adding to its existing fleet of six ships. The order is still conditional on financing. The 150,000 gross ton new building will have 1,680 cabins and is scheduled for delivery in fall 2016.

This order will increase the shipyard's order book from six to seven large cruise ships up to the year 2017. Meyer Werft's management and staff are very pleased that this new ship will be built in Papenburg/Germany. “We are very happy to continue our long lasting partnership with Star Cruises. It is a great challenge to create a state of the art cruise vessel specifically for the Asian market. Therefore we are very thankful that Star Cruises gave us again the confidence to create this special cruise vessel with them," says Bernard Meyer, managing partner of the shipyard.

About 3,100 direct employees of Meyer Werft as well as about 20,000 employees of supplier companies and partners in Europe participate in working on this project.

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UPDATE: Cruise Business has learned from a Star Cruises' source that the vessel in question will have a gross tonnage of approximately 150,000.

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Genting Hong Kong, parent company of the Malaysia based Star Cruises released the following stock exchange announcement on October 7:

"The Board is pleased to announce that on 7 October 2013, the Buyer (an indirect wholly-owned subsidiary of the Company) and the Company (as guarantor for the obligations of the Buyer under the Shipbuilding Contract) entered into the Shipbuilding Contract with the Builder in relation to the construction and delivery of the Vessel at a contract price of Euro 707.2 million (equivalent to approximately HK$7,465.2 million) including an allowance in the amount of Euro 57 million (equivalent to approximately HK$601.7 million) for Buyer’s Items.

As one or more of the applicable percentage ratios (as set out and calculated under Rule 14.07 of the Listing Rules) in respect of the transactions contemplated under the Shipbuilding Contract is more than 25% but less than 100%, the entering into of the Shipbuilding Contract constitutes a major transaction of the Company and is subject to the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Listing Rules.

A circular containing, amongst other things, further details of the Shipbuilding Contract and the transactions contemplated thereunder together with a notice of SGM to approve the Shipbuilding Contract (provided however no SGM will be convened in the event that written Shareholders’ approval in lieu of holding such SGM pursuant to Rule 14.44 of the Listing Rules is obtained by the Company, which the Company will promptly announce) is expected to be despatched to the Shareholders on or before 18 November 2013.

As the Shipbuilding Contract shall only become effective subject to satisfaction of a number of Conditions, the construction of the Vessel may or may not proceed. Shareholders and investors should exercise caution when dealing in the Shares."

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Star Cruises, the Far East focused cruise shipping company in Genting Hong Kong group, is rumored to be close to an order for a $960 million ship at Meyer Werft in Germany.

Trade Winds, the Oslo based shipping weekly, says on its website “Genting adds $960 million ship." Peter Hackmann, head of press information at Meyer Werft in Germany, told Cruise Business Review: “We never comment on orders or projects until a deal has been signed. So, let’s see what the next few hours or days may bring, but at this point, the comment is no comment.”

Meyer Werft is a leading builder of cruise ships and it built two 75,000 gross ton vessels for Star Cruises in the late 1990s. The company then embarked on a project to build a further pair of 112,000 gross ton vessels at the same yard, but the project was abandoned after Star Cruises acquired Norwegian Cruise Line group at the turn of the millennium.

Top management change at Crystal Cruises

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 04 October 2013 04 October 2013

Crystal Cruises announced today that Gregg Michel has resigned as president, effective October 15, and cruise industry veteran Edie Bornstein will join the Los Angeles-based ultra-luxury line as its new president and chief operating officer on October 16.

Bornstein brings to Crystal more than 30 years of experience in the global cruise, travel and technology industries. She was senior vice president of marketing and sales at Azamara Club Cruises, the upscale division of Royal Caribbean Cruises Ltd. (RCL), where she worked from 2009 until recently. It was under her leadership that she and her team re-launched the young brand as Azamara Club Cruises. Previously, she was vice president of business development and strategic partnerships for Carnival Cruise Lines, and has also served as a senior officer at Cunard and Seabourn Cruise Lines, where she developed strategic plans and led partnerships with several respected luxury brands. Prior to her in-house positions with the cruise lines, Bornstein was vice president of cruise and specialty sales, marketing and customer support for Amadeus Global Distribution System. At Amadeus, she was instrumental in the implementation of automation solutions for the cruise industry and numerous other projects.

Michel joined Crystal Cruises as senior vice president, finance and administration in 1988 and was promoted to president and chief operating officer in 2001. A past chairman of CLIA (the Cruise Lines International Association), Michel has helped develop safety and security policies for the industry during his role as part of CLIA’s Executive Committee.

“NYK (Nippon Yusen Kaisha), Crystal Cruises’ parent company, and the Crystal family greatly appreciate the efforts and accomplishments of Gregg Michel during his presidency, his service on our Board of Directors, and his contributions as a founding member of the management team,” said Nobuyoshi Kuzuya, chairman and chief executive officer of Crystal Cruises. “During his tenure, Crystal Cruises has maintained an enviable reputation in the luxury market, offering an unparalleled cruise experience. Besides his contributions to our own company, he has been a great champion of environmental efforts that have supported the cruise industry.

“Edie Bornstein is joining Crystal at a very positive time when we are growing our revenue, increasing the global agencies with whom we are working, and introducing so many new guests to Crystal Cruises. As we look to the future, we are very pleased that Edie is bringing her vast branding experience, technology expertise and passion to Crystal Cruises.”

“Like so many in this industry, I’ve admired Crystal from afar,” said Bornstein. “I always thought the line was ahead of the luxury curve with so many innovative programs and product features. I’m so proud to begin a new story with Crystal Cruises and join this team at sea and on land, who should feel so proud of this incredible brand. I look forward to building on this stellar reputation, growing our travel agent partnerships, and leading Crystal into the future.”

Bornstein and her fiancé Tom Rodriguez will reside in Los Angeles.

Port Everglades approved for $16.5 million in state funds for cruise and cargo berth expansion

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 04 October 2013 04 October 2013

The Florida Seaport Transportation and Economic Development (FSTED) Council approved $16.5 million in allocations to Port Everglades to lengthen a cruise berth and to extend the port’s Southport Turning Notch to allow for more cargo berths. These allocations, which were approved under two different state funding sources, will become part of the Florida Department of Transportation (FDOT) 2014/15 Work Program that comes before the Florida Legislature for approval this next legislative session.

"Both projects will create construction jobs in the short term and support permanent jobs once completed," said Port Everglades Chief Executive & Port Director Steven Cernak. "Florida’s investment in seaports and other infrastructure demonstrates a commitment to making our state a global leader in international trade."

FSTED allocated $1.85 million to lengthen Slip 2, which includes Berth 4 and is used for cruise ships, by 250 feet westward to accommodate today’s larger cruise ships. Once completed in September 2016, Slip 2 will be 1,150 feet long and 42 feet deep. The Broward County Commission awarded planning and design to Bermello Ajamil & Partner, Inc. on October 1, 2013.

In addition to the Slip 2 lengthening, the corresponding Cruise Terminal 4 is being updated as part of an estimated $13.4 million renovation project. This will be the first building Port Everglades will apply for LEED certification. Groundbreaking for the Cruise Terminal 4 renovation is slated for May 2014, with completion expected before the following cruise season in fall of 2014.

FSTED allocated $14.7 million under the new Strategic Port Investment Initiative within FDOT for Port Everglades’ Southport Turning Notch Extension. This project will lengthen the existing deepwater turn-around area for cargo ships from 900 feet to 2,400 feet, which will allow for up to five new cargo berths.

Viking Cruises to operate in the Mediterranean also on winter 2015-16

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 02 October 2013 02 October 2013

Viking Cruises (www.vikingcruises.com) yesterday announced the full slate of 2015 Mediterranean itineraries for the new Viking Star, as well as select 2016 sailings. The move will keep Viking Star in the Mediterranean, offering additional sailings to some of Europe’s most beautiful and historic cities, from Rome to Barcelona. Responding to the overwhelming demand for Viking Star’s maiden voyages in the Mediterranean offered earlier for the spring and summer of 2015, the new winter cruises will allow guests to explore the vibrant cultures and sites along the Mediterranean in the quiet season, in keeping with Viking’s promise to provide guests with a unique cruise experience. Due to the popularity of the nearly-sold out 2015 maiden voyages, select 2016 itineraries for Viking Star are now also available for booking.

"We are pleased to announce additional cruises in the Mediterranean that will allow guests to experience some of the most beautiful cities in Europe during the quiet season the way the locals do," said Torstein Hagen, Chairman of Viking Cruises. "Our Mediterranean ocean itineraries have sold at an unprecedented rate; consumers are responding enthusiastically to this attractive region and the carefully-designed itineraries that offer our guests the opportunity to explore this historically fascinating region by letting them get closer to the historical sites, people and traditions in ways they have never experienced before."

New Mediterranean itineraries

The overwhelming popularity of Viking Star’s maiden voyages resulted in the addition of the winter 2015 Mediterranean itineraries. By highlighting more unique locations, such as Malta, Sicily, Sardinia, and Algiers – and crafting experiences that take advantage of the post-tourist season – the new itineraries showcase the Mediterranean in a way that many travelers have never witnessed. By sailing in the winter months, Viking Star’s guests will see an entirely different Europe – quieter and more contemplative, all while soaking up the splendor of the region during this special time of year.

– Romantic Mediterranean (8 days; Barcelona – Rome) – While sailing along some of the most beautiful coastlines in the world, this itinerary offers a perfect mix of glamour, rustic pleasures and memorable landscapes with visits to Toulon, Corsica and Monte Carlo, France; the Tuscan region of Italy; plus overnights in Barcelona and Rome. Introductory 2-for-1 pricing starts at $1,999 per person with discounted airfares from $595 per person.

– Mediterranean Getaway (8 days; Rome – Barcelona) – Explore historically significant sites and vibrant cities of the southern Mediterranean with destinations that include Rome, Naples (and Pompeii), Sicily and Sardinia in Italy; Tunis, Tunisia (and Carthage); and Palma de Mallorca, Valencia and Barcelona in Spain. Introductory 2-for-1 pricing starts at $1,999 per person with discounted airfares from $595 per person.

– Mediterranean Explorer (15 days; Barcelona – Barcelona) – Combining the Romantic Mediterranean and Mediterranean Getaway, this itinerary features fabled ancient cities, medieval wonders and iconic sites that include Toulon, Monte Carlo and Corsica in France; Tuscany, Naples (and Pompeii), Sicily and Sardinia in Italy; Tunis, Tunisia (and Carthage); Palma de Mallorca and Valencia in Spain; plus overnights in Barcelona and Rome. Introductory 2-for-1 pricing starts at $3,849 per person with discounted airfares from $595 per person.

– Grand Mediterranean Tour (15 days; Barcelona – Barcelona) – Sun-kissed shores and new places to discover await on this voyage that begins with an overnight in Barcelona and includes an overnight in Rome. Stops include Monte Carlo, Toulon and Corsica in France; Tuscany and Sardinia in Italy; Tunis, Tunisia and Valencia, Spain; plus off-the-beaten path visits to Valletta, Malta and Algiers, Algeria. Introductory 2-for-1 pricing starts at $3,849 per person with discounted airfares from $595 per person.

Viking’s Ocean Cruises

In May 2013, Viking Cruises announced the launch of its ocean cruise product line, which will begin sailing in May 2015 with the brand-new Viking Star embarking her maiden voyages in Scandinavia and the Baltic; and then she will also sail in the Western and Eastern Mediterranean. The launch affirmed Viking Cruises’ continued commitment to providing unique cruising journeys for the experienced traveler. Viking’s ocean cruises offer a small-ship experience via an intimate, custom-designed vessel that allows travelers to get closer than ever to their destinations. As well, the line offers itineraries highlighting history, art and culture while giving maximized time in port, privileged-access excursions and onboard experiences that truly immerse guests in the local culture. Since announcing itineraries for the 2015 Viking Star maiden voyages, cabins have sold at a rapid rate, due to overwhelming interest in Viking’s small-ship, destination-focused ocean cruises.

SATS to acquire Singapore Cruise Centre for S$110 million

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 26 September 2013 26 September 2013

SATS today announced that it has through its subsidiaries, SATS Airport Services and SATS-Creuers Cruise Services (SATS-Creuers), entered into a share purchase agreement to acquire the entire issued share capital of Singapore Cruise Centre for S$110 million from Temasek.

Singapore Cruise Centre is a Singapore-based terminal operator which manages and operates the award-winning international cruise terminal and regional ferry terminal at HarbourFront Centre, along with the two ferry terminals at Tanah Merah and Pasir Panjang. It has a strong cash-generative and profitable business, reporting revenue of S$45 million and profit before tax of S$16.7 million for the financial year ended 31 March 2013.

SATS-Creuers is a 60:40 joint venture formed by SATS Airport Services, a wholly-owned subsidiary of SATS, and Creuers del Port de Barcelona (Creuers), to manage and operate the Marina Bay Cruise Centre Singapore.

Mr. Tan Chuan Lye, SATS President and Chief Executive Officer said: "This transaction represents a unique opportunity, both for SATS and for Singapore. Singapore Cruise Centre has a compelling fit with our existing cruise handling and terminal operations. Together with our strong partnership with Creuers, this transaction will enable us to grow our gateway services business, which in turn will benefit the cruise industry here as a whole."

"The future is bright for the cruise industry in Asia Pacific. The combined entity can leverage our regional airport presence to facilitate and provide a seamless travel experience for Fly-Cruise passengers. This will bolster Singapore’s position as an attractive regional cruise hub and homeport for cruise lines which in turn will benefit the economy."