Top Headlines

Oasis decision on Tuesday – can Finland save its shipbuilding industry?

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 17 December 2012 17 December 2012

Finland’s Prime Minister Jyrki Katainen was tight-lipped about possible government financial help for STX shipyard in Turku to help to win the order for a new ship from Royal Caribbean’s Oasis-class. The cruise line has requested from the Finnish government a loan of 50 million euros (to cover the cost of construction during the building process), which would help it secure an order for a cruise ship.

Royal Caribbean Cruises Ltd has said that it would like to order a new Oasis-class vessel from Turku STX Shipyard. In return, STX has asked the Finnish government to lend it the 50 million euros it needs to be able to complete the cruise ship. Ultimately, each ship in the class bears a price tag of 970 million euros, according to Yle. In shipbuilding, the customer, which in this case is Royal Caribbean, typically doesn’t ante up for construction costs until the ship is actually delivered.

Katainen, as reported by Yle, has been coming under considerable pressure to respond to the request and in fact Finland’s shipbuilding industry recently lost a major order from RCCL to the German Meyer Werft as a result. The Finnish Maritime Industry earlier sent the Prime Minister a confidential letter saying the whole sector was at risk, if the order cannot be secured. Later on Sunday, the powerfull Finnish Metalworks’ Union urged a favorable decision on the matter.

Being quizzed on the matter on Yle’s Prime Minister’s radio interview programme, Katainen criticized the competition in shipbuilding, saying that normal market economy rules had long been distorted here, Yle reports.

“South Korea and European countries, among others, support big projects in different ways. It’s not so much the different players in the field that are competing; rather, it’s states competing with each other. What’s at issue is what kinds of risks each state is willing to take with tax payers’ money,” Katainen said.

According to the Prime Minister, Finland needs to formulate a consistent, long-term stance on government financial support, which should take into account the interests of both tax payers and business.

"We cannot think that the weaknesses of some company be compensated with tax payers’ money. Also, any support should not distort competition or put others into difficult situations," the Prime Minister explained in Yle.

Katainen would not directly comment on possible financial support to help STX get the Royal Caribbean order, as this involved trade secrets.

The Government is working to secure the contract to Finland with similar measures as have been used with earlier ventures, Katainen revealed, adding that there has been dialogue with sector representatives. According to the Prime Minister, the government has not experienced intimidation or threats relating to the matter.

"We’ve told the shipyard what’s possible and what’s not," Katainen said.

The government is expected to make its decision on Tuesday.

Sembawang and Royal Caribbean in long term refit and maintenance contract

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 11 December 2012 11 December 2012

Sembcorp Marine’s wholly-owned subsidiary Sembawang Shipyard has been awarded the Favoured Customer Contract (FCC) from Royal Caribbean Cruises Ltd. (RCCL) to provide ship-repair, revitalisation, upgrading and related marine services for its fleet of 41 cruise ships.

"This milestone long-term maintenance and refit contract with Royal Caribbean will further boost Singapore’s status as a major Asian cruise hub and reinforce Sembawang Shipyard’s reputation as one of the world’s leading shipyards in the highly specialised segment of cruise ships repair, refurbishment and conversion,” Sembawang said in a statement.

The contract commits the repairs, revitalisation and upgrading of RCCL’s fleet of passenger ships cruising in the Singapore region to Sembawang Shipyard. It also commits to joint planning, information and experience sharing, thus leveraging complementary resources to achieve sustainable targets in the areas of HSE (Health, Safety and Environment), logistics management, quality, cost-efficiency and on- schedule deliveries, which are key performance indicators for high quality cruise vessels maintenance.

Deilmann raises €50 million in five year note issue

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 December 2012 07 December 2012

MS “Deutschland“ Beteiligungsgesellschaft mbH, the shipowning entity in the German cruise shipping group Peter Deilmann Reederei, has raised €50 million through an issue of five year notes.

The notes carry a coupon of 6.875% and all the notes were sold well in advance of the closing date of the offer that had been scheduled to be 14 December. The company did not say at what price it sold the notes.

The proceeds would be used to refinance existing debt and to general corporate purposes. The notes will be listed on the Frankfurt Stock Exchange, the company said.

Ten new Longships on order for Viking River Cruises

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 06 December 2012 06 December 2012

Viking River Cruises today announced it has placed an order for 10 additional Viking LongshipsTM, bringing the total number of new ships launching next year to 10 and the number launching in 2014 to eight. The launch plan will easily surpass the industry record Viking set in 2012 with the introduction of six new ships in a single season. By the end of 2014 the company will have introduced a total of 24 new ships in a three-year period, a fleet expansion unprecedented in the cruise industry.

"The river cruise segment is rapidly growing, as more travelers are inspired to experience old destinations in a new way," said Torstein Hagen, Chairman of Viking River Cruises. "Because of the overwhelmingly positive response we have seen from our passengers in the first season of our revolutionary new Viking Longships, we are pleased to continue our expansion to meet that demand."

Viking plans to inaugurate the first eight Viking Longships of 2013 in a first-of-its-kind simultaneous christening ceremony in late March in Amsterdam. The two newest ships, Viking Baldur and Viking Magni, will join the fleet in late August and September, respectively. Both vessels will sail Viking's 15-day Grand European Tour (Amsterdam-Budapest), with Viking Baldur also sailing the 8-day Rhine Getaway (Amsterdam-Basel) and Viking Magni also sailing the 8-day Danube Waltz (Passau-Budapest). The eight new ships in 2014 will also sail Viking's most popular itineraries in Europe.

Recently named Best New River Ships of 2012 in Cruise Critic's Editors' Picks Awards, Viking Longships integrate patent-pending design and cutting-edge technology with comfortable amenities that reflect guest preferences and current travel trends. These new features include a revolutionary new all-weather indoor/outdoor Aquavit Terrace that reinvents the onboard lounge experience by bringing the panoramic outdoor river scenery indoors with retractable floor-to-ceiling glass doors and allows guests to enjoy the views and dine al fresco.

Accommodating 190 passengers in 95 staterooms, Viking Longships feature two Explorer Suites – the largest river cruise suites in Europe – as well as seven two-room Veranda Suites with a full-size veranda in the living room and a French balcony in the bedroom, 39 Veranda Staterooms with full-size verandas and 22 French Balcony Staterooms. Additionally, Viking Longships have sustainability upgrades, such as onboard solar panels and organic herb gardens, as well as energy-efficient hybrid engines that reduce vibrations for a remarkably smooth ride. Viking has applied for a number of patents for various aspects of the Longship design.

The new ships will be built at the Neptun Yard in Germany, part of the Meyer Neptun group.

IMO to incorporate cruise industry's recommendations to safety treaty

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 05 December 2012 05 December 2012

Cruise Lines International Association (CLIA) and the European Cruise Council (ECC) say they are pleased with the International Maritime Organisation’s (IMO) decision to approve incorporation of the cruise industry’s recommendation for the mandatory muster of passengers prior to departure from port in the International Convention for the Safety of Life at Sea (SOLAS). This anticipated regulatory change would be incorporated in SOLAS, which provides comprehensive mandates on safety equipment and procedures for ships. The global cruise industry announced this measure with immediate effect on 9 February 2012, as part of the global cruise industry Operational Safety Review that was launched in January.

Additionally, the IMO’s maritime safety committee (MSC) incorporated three other policies from the global cruise industry Operational Safety Review during its meetings in London, held between 26 and 30 November. The three policies address the loading of lifeboats by crewmembers for training purposes, the recording of passenger nationality, and the common elements of musters and emergency instructions. They are now included in IMO guidance specific to passenger ship safety and have been implemented via industry-wide policies.

Christine Duffy, president and CEO of CLIA, said: “The global cruise industry appreciates and shares the unyielding commitment of the IMO, its secretary-general, the maritime safety committee and the 170 IMO member states around the world to continuously enhance the safety of passengers and crew — our industry’s number one priority. Ongoing innovation in safety has been a hallmark of the cruise industry for decades. We remain fully committed as an industry to building on our rich heritage of leadership in improvement of shipboard operations and safety.”

Manfredi Lefebvre d'Ovidio, ECC chairman, said: “We welcome the decision by the IMO to incorporate key recommendations from the global cruise industry Operational Safety Review into the SOLAS. The IMO’s decision to incorporate our recommendations into SOLAS, including our February 2012 decision to introduce on a voluntary basis the mandatory muster of passengers prior to departure from port, is an endorsement of the cruise industry’s approach to continuous safety improvement. It demonstrates how we as an industry are proactively achieving concrete, practical and significant safety dividends in the shortest possible time. We look forward to continuing to work with the IMO to secure further safety improvements in the future wherever there is scope to do so.”