News

Carnival and CSSC explore cruise ship building in China

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 15 October 2014 15 October 2014

Carnival Corporation & plc, the world's largest cruise company, announced it has signed a memorandum of understanding (MOU) with the China State Shipbuilding Corporation (CSSC) to explore the possibility of a joint venture aimed at accelerating the development and growth of the Chinese cruise industry, expected to be one of the largest cruise markets in the world with 4.5 million passengers by 2020, according to the Chinese Ministry of Transport (MOT), the company said in a statement.

"Becoming official at a signing ceremony today at the Ninth China Cruise Shipping and International Cruise Expo in Tianjin, the MOU outlines the framework for exploration of a partnership between Carnival Corporation and the CSSC that includes the possibility of forming a shipbuilding joint venture that could become a three-way arrangement involving Fincantieri of Italy, the world's largest cruise ship building company, in support of the Chinese government's plans to grow the cruising industry in China and meet escalating demand for cruises from Chinese travelers," Carnival said

As part of the possible shipbuilding joint venture, Carnival Corporation & plc would work closely with CSSC and Fincantieri to help define the first-ever, world-class cruise ship built in China. "Under the joint venture concept, Carnival Corporation would provide its ship design and shipbuilding expertise to create the vision, definition and overall specifications for the China-built cruise ship," the Anglo-American cruise shipping group said.

"This is really a breakthrough day for all of us at Carnival, as well as our friends at the CSSC and all Chinese travelers who are increasingly turning to cruises for their vacation experiences," said Arnold Donald, CEO of Carnival Corporation. "This landmark agreement enables us to work closely with our partners at the CSSC to fully explore the possibility of forming a joint venture to further develop China into a leading cruise market, supporting local economic development and bringing vacation enjoyment to millions. We look forward to getting to work and lending the expertise of many talented people across Carnival Corporation."

In the past year, the Chinese Ministry of Transport has expressed its strong desire to transform China into a leading global cruise market, including investments in infrastructure and developing a strong domestic cruise presence to help spur growth in cruising as a key component of the expanding tourism industry in China.

The MOT projects China to be the second largest global cruise market after the U.S. in the next several years based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations in China. Partnerships like the relationship being fully explored between CSSC and Carnival support the MOT's pro-growth cruise policies designed to spur new economic development from tourism in China.

UPDATED: Brittany Ferries reported to abandon newbuilding, LNG retrofit programme

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 14 October 2014 14 October 2014

Update: A spokeswoman for Brittany Ferries has confirmed the reported cancellation of a newbuilding and also the cancellation of plans to convert six existing vessels for LNG propulsion and the use of scrubbers instead.

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Brittany Ferries, the French company that operates in the Western Channel, is reported to have abandoned plans to build a 61,000 gross ton LNG fuelled cruise ferry and to plans to retrofit LNG propulsion on six of its ships, BBC reports on its website.

It has not been possible for Cruise Business Online to obtain a comment from the company at this moment.

The retrofit programme would have cost £320 million. Instead, Brittany Ferries will install scrubbers on board the ships to allow it to meet the new emission control rules that will take effect from the beginning of next year.

In January, Brittany Ferries signed an initial contract with STX France to build a LNG driven 61,000 gross ton cruise ferry that would have been 210 metres in length and carried 2,600 passengers plus 650 cars and 40 lorries. It would have been due foe delivery in early 2016.

Drew Madsen appointed Norwegian Cruise Line president and COO

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 14 October 2014 14 October 2014

Norwegian Cruise Line Holdings Ltd., the Miasmi based listed cruise shipping group that recenty acquired Prestige Cruise Holdings, said hospitality veteran Drew Madsen has been appinted as president and chief operating officer (COO) of Norwegian Cruise Line, the group's contemporary market unit. "Madsen brings a strong track record of success to Norwegian with more than 30 years of leadership experience in the hospitality and consumer products industry, most recently as president and chief operating officer at Darden Restaurants, Inc., the world’s largest full-service restaurant company," Norwegian said in a statement. “Having delivered exceptional results during his tenure at Darden, Drew has a wealth of experience to draw upon as he joins Norwegian,” said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “We are at an exciting point in our company’s history. With the upcoming acquisition of Prestige Cruises International, Inc., it is the opportune time to add such a talented individual to our already diversified leadership team to focus on the core day-to-day business. I am confident in Drew as a results-oriented, highly collaborative and thoughtful leader who will continue to propel Norwegian on our positive growth trajectory.” Madsen played an instrumental role in establishing Darden as the most successful multi-brand operator in the full-service restaurant industry, increasing sales from $4.8 billion to $8.6 billion, while delivering a cumulative total shareholder return of 110% that significantly exceeded the S&P 500 by more than 47%. He also had the distinction of having Darden recognized as one of Fortune’s “100 Best Companies to Work For” – a first for the food service industry that was repeated for three consecutive years. Prior to Darden, Drew held leadership and marketing positions at James River Corporation and General Mills, among others. Throughout his career, he has consistently demonstrated an ability to produce results that led to improved operating margins, increased guest satisfaction, superior market penetration and an enhanced level of employee fulfillment. “I am thrilled to be starting the next chapter of my career at Norwegian Cruise Line,” said Madsen. “I am looking forward to ensuring that Norwegian excels in every facet of operation and that we continue to produce industry leading financial results, while also bringing new ideas and ways of doing business that improve guest satisfaction and team member involvement.” Madsen holds a master of business administration with distinction from the University of Michigan and a bachelor’s degree in economics from DePauw University.