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Hurtigruten reorganises Corporate and Sales Nordic functions

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 29 January 2013 29 January 2013

Hurtigruten, the Norwegian company that operates exploration type cruises and a daily service between Bergen and Kirkenes, says it is reorganising and streamlining its corporate and Sales Nordic operations. Annual savings of more than NOK 60 million is expected, with full effect from 2014. ”The change is carried out in order to secure a sustainable profitable company and to ensure the  right use of available resources at a time when the international markets are challenging,” the company said in a statement.

Several changes in the overall structure and working methods will take place:

· General staff reductions within administrative functions

· Centralising activities to a new corporate centre in Tromsø and phasing out of the current operations in Narvik, transfer of duties and personnel to the corporate centre

· Organisation designed to give much more focus to the company's commercial operations

· Increased focus and commitment to hotel and restaurant operations by competence development and improved services

· Establishment of a dedicated manning company for crew

Proposed change of the Company's head office address is submitted for decision by the Annual General Meeting on 17 April 2013. Hurtigruten's new organisation is planned for implementation on 31 March 2013, and results in a general downsizing of 25-30 per cent. The company will ensure continuity with respect to safe operations and emergency preparedness, and business-critical functions when implementing the new structure. The company will continue the efficiency efforts initiated outside the Nordic countries, including the Svalbard operations. Hurtigruten is also in the process of selling non-strategic assets. Financial effects of these processes will come in addition.

Norwegian raised $477.6 million at IPO

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 25 January 2013 25 January 2013

Norwegian Cruise Line Holdings Ltd says it has announced the closing of its previously announced initial public offering of 27,058,824 of its ordinary shares at a price of $19.00 per share. The number of shares sold includes 3,529,412 shares sold as a result of the full exercise by the underwriters of their option to purchase additional shares. The net proceeds of the offering, after deducting underwriting discounts and commissions and estimated expenses, were approximately $477.6 million.

UBS Investment Bank and Barclays acted as bookrunners and the representatives of the underwriters for the offering. Citigroup, Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan also acted as bookrunners for the offering. DNB Markets, HSBC, SunTrust Robinson Humphrey,Wells Fargo Securities and Lebenthal Capital Markets acted as co-managers for the offering.

A registration statement relating to these securities has been filed with, and declared effective on January 17, 2013 by, the Securities and Exchange Commission.

Princess Cruises dramatically expands Japan cruise program in 2014

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 23 January 2013 23 January 2013

Underscoring its commitment to the growing Japanese cruise market, Carnival Corporation & plc today detailed a substantially expanded 2014 Japan cruise program for the Princess Cruises brand, which brings a second ship to the market, features sailings from three homeports and plans to significantly expand the size of the cruise market in Japan to approximately 100,000 passengers.

The Japan-built Diamond Princess will join Sun Princess for a cruise program from three homeports – Tokyo (Yokohama), Kobe, and an industry first, Otaru near Sapporo on Hokkaido. Sailing between April and October in 2014, the two ships will offer 42 departures featuring nine unique itineraries ranging from seven to nine days. The two ships will visit more than 20 ports in Japan, South Korea, Taiwan and Russia.

"We were the first international cruise line brand to offer a full season of cruises designed specifically for passengers from Japan, and we continue to believe there is substantial untapped demand for cruise vacations here," said Alan Buckelew, president and CEO of Princess Cruises. "With a second, larger ship and our ground-breaking itineraries in 2014 we look forward to continuing to help develop the full potential of the cruise market in Japan."

Buckelew added that the economic impact from this deployment will be notable, with a total contribution for the 2014 season estimated to be in excess of 11 billion yen. This includes passenger and crew spending in each port, plus the port and other local costs Princess Cruises pays to bring its ships to Japan.

Diamond Princess will homeport in Tokyo (Yokohama) for an extended season of 9-day cruises that include visits to Taiwan, South Korea, Hokkaido, Russia and 15 Japanese ports, including five new itineraries created especially for the ship. During the popular holiday period of Golden Week, Diamond Princess will feature a special 10-day itinerary that includes opportunities to visit several festivals plus enjoy a special call to Nagasaki, home to Mitsubishi Heavy Industries where the ship was built, to celebrate Diamond Princess 10-year anniversary.

Sun Princess will debut several industry firsts for the Japanese market – including innovative 7-day cruises from the northern coastal town of Otaru, located outside of Sapporo, as well as two new 8-day itineraries from Kobe. These itineraries will offer cruise options to appeal to passengers looking for a week-long cruise vacation, and the northern Hokkaido itinerary will offer a refreshing summer destination. The ship will also make maiden calls in the Japanese islands of Ishigaki, and Amami Oshima, as well as Abashiri and Hualien, Taiwan.

On these sailings, passengers will find the cruise experience substantially the same as that offered by Princess Cruises around the world, providing an impressive array of dining and entertainment options in addition to the lines signature innovations such as its popular Movies Under the Stars poolside theater and The Sanctuary, an exclusive top-deck retreat.

However some changes and enhancements are being made to appeal to the local market such as Japanese-speaking crew members in key passenger-facing positions. Dining room menus will offer international Princess cuisine while additional offerings will cater to Japanese tastes, such as an a la carte sushi bar, Japanese breakfast, noodle bar, regional tea tastings, and special sake menu. A traditional kagamiwari ceremony will be held during the captain's welcome. Specially designed enrichment programs will include an expert lecture series on art, culture and history. Other amenities such as the shopping selection and spa treatments will also be tailored to Japanese preferences, and onboard collateral items and stateroom information will be translated into Japanese.

An extensive array of shore excursions will be available to complement the itineraries so passengers can experience all the ports have to offer.

The 2,670-passenger Diamond Princess was built by Mitsubishi Heavy Industries in Nagasaki, Japan – the first of two Princess ships built in Japan. Diamond Princess and the 2,022-passenger Sun Princess offer passengers a wealth of amenities including Movies Under the Stars and The Sanctuary. The ships feature multiple dining rooms and entertainment venues, many staterooms with private balconies, Lotus Spa, boutiques, and an internet café among other amenities.

The 2014 Japan cruise program opens for sale today.

Finnish pension insurer leaves door ajar to shipbuilding industry stake

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 23 January 2013 23 January 2013

A Finnish pension insurance company has stated that it could invest in the Finland shipbuilding industry, while the head of a working group that set up by the government to look into the future of the maritime cluster in the Nordic country has opposed the idea of government’s participation in the company as shareholder, media reports say.

Harri Sailas, managing Director of Eläkevakuutusyhtiö Ilmarinen said in an interview with the Kauppalehti business daily that the company could invest in the finnish shipbuilding industry. However, he added that an investment in the troubled STX Finland shipbuilding company in its current form is not an option as the risk would be too high.

Meanwhile, Ole Johansson, head of a working group to look at the future of the maritime cluster in Finland, was heard by the Parliament’s economic affairs committee on Wednesday. Johansson had stated thsat the government should not acquire an ownership stake in the clountry’s shipbuilding industry, the national broadcaster YLE said on the Internet.

Earlier, a number of suppliers and contractors to STX Finland had expressed an interest in acquiring a stake in STX Finland on the condition that the government join them. Economic affairs minister Jan Vapaavuori said such participation is an option.

Fincantieri, the Italian state owned shipbuilder, said today it had completed an earlier announced acquisition of a 50.75% stake in STX OSV, the offshore services vessel builder, from STX Finland’s Norway based parent STX Europe,m ewhich again is part of the STX Business Group of South Korea. STX Europe will deposit the NOK640 million it received from the sale with a public trustee for a pending repayment of a bond loan.