Carnival invests $400 million for scrubbers

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 22 May 2014 22 May 2014

Carnival Corporation & plc, the world's largest cruise company, today announced plans to significantly increase installations of its industry-first exhaust gas cleaning technology to more than 70 vessels. The expansion covering over 70 percent of its entire fleet represents an increase from the 32 ships announced in September 2013.

Carnival Corporation is investing as much as $400 million to design, build and install the systems, being used for the first time in the restricted space found on cruise ships. The systems will enable Carnival Corporation to meet new regulations that place a cap on sulfur content of fuel oil at 0.1 percent, resulting in significantly reduced air emissions. The systems will help the company meet its environmental sustainability goals, as well as mitigate escalating fuel costs.

The systems, known for their ability to clean – or "scrub" – exhaust from high-sulfur fuel, are scheduled to be installed over the next three years. The current installation schedule initially includes 22 Carnival Cruise Lines vessels, nine Holland America Line vessels, seven Princess Cruises vessels and three Cunard vessels. In addition to those 41 ships, two other Carnival Corporation brands, AIDA Cruises and Costa Cruises, will also install the systems – 10 ships for AIDA Cruises and six ships for Costa Cruises. On May 5, AIDAluna emerged from a nine-day dry dock in Hamburg, Germany, with the first stage of the comprehensive exhaust gas treatment system installed.

The remaining schedule of installations will be forthcoming. In addition, Carnival UK brand P&O Cruises is assessing how the systems can be most effective on its vessels under European Union environmental law.

"This is a key step forward for Carnival Corporation and its 10 brands -- and most importantly for the environment," said Carnival Corporation CEO Arnold Donald. "We believe Carnival Corporation's investment in this industry-leading technology will set a new course in environmental protection and cleaner air for years to come. Increasing environmental sustainability is one of our most important corporate goals, and having the new systems on our ships will be another effective way for us to meet that objective."

In September 2013, Carnival Corporation announced it had pioneered adapting a proven exhaust gas cleaning technology to use on its ships. The system is called ECO Exhaust Gas Cleaning (ECO-EGC™) for its ability to remove major pollutants from the exhaust gases at any operating condition of a ship—at sea, during maneuvering and in port.

The implementation of the ECO-EGC systems has also allowed Carnival Cruise Lines to return ships to homeporting in Baltimore and Norfolk, Va., in 2015.

The International Maritime Organization's (IMO) MARPOL Annex VI places a cap on sulfur within Emission Control Areas (ECAs) at 1.0 percent, which took effect in North America in 2012. In 2015, the limit in North American ECAs will be 0.1 percent. The IMO's global sulfur limits for seas other than specifically designated ECAs are currently 3.5 percent and are expected to drop to 0.5 percent by 2020, so Carnival's advanced ECO Exhaust Gas Cleaning systems have the added benefit of ensuring compliance with both North American and global IMO standards. Carnival Corporation's system combines two established technologies that have been successfully used in shore applications like power plants, factories and vehicles to clean – or "scrub" – the exhaust from high-sulfur fuel. For the first time this combination is being developed to accommodate restricted spaces on existing ships.

Carnival Corporation's plan incorporates a two-pronged system – one to reduce particulates from the ship's engine emissions, and another to use seawater to "scrub" sulfur compounds from the exhaust gases.

Though widely used on land, the system's incorporation in oceangoing vessels is considered a significant advancement in environmental technology.

This news follows the recent Earth Day announcement that Carnival Corporation will meet its goal to reduce its rate of greenhouse gas emissions from shipboard operations by 20 percent. The company has already reduced its emissions by more than 19 percent since 2005 and is on track to meet its goal of 20 percent by 2015.

MSC Cruises and Fincantieri announce two newbuilds plus one option

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 22 May 2014 22 May 2014

Today MSC Cruises signed a contract with Fincantieri for the construction of two new cruise ships, with an option for one more. The two ships will join MSC Cruises’ fleet, currently counting 12 ships.

The signature took place at the Palazzo Chigi in Rome between MSC Cruises and Fincantieri in the presence of the Executive Chairman of MSC Cruises Pierfrancesco Vago, the CEO of MSC Cruises, Gianni Onorato, and the CEO of Fincantieri, Giuseppe Bono.

The new prototype will be named “Seaside” and will be the largest cruise ship ever built by Fincantieri. Its innovative features will make it unique in the shipbuilding industry. The two ships will lead the way for a new generation of cruise ships that will be completely different from an architectural point of view.

"From the moment we started talking with Fincantieri, we had in mind to design and build two completely new ships, revolutionary in their structure, unlike anything that exists on the market today," said Pierfrancesco Vago, Executive Chairman of MSC Cruises. "Seaside is a futuristic prototype because of its structure, shape and versatility. Working closely with Fincantieri we are getting ready for the new and compelling challenge that the construction of these ships represents. It will be a real revolution in the world’s cruise market, an excellent product for its unique and innovative architectural features and cutting-edge technology.”

The two new ships will cost €700 million each, and will be funded with the support of the insurance and financial company SACE. The two ships will be delivered to Gianluigi Aponte’s company at different times: the first in November 2017, the second in May 2018. With a length of 323 metres, a width of 41 metres and a height of 70 metres, the new ships will have a gross tonnage of 154,000 tons and will accommodate up to 5,300 passengers plus 1,413 crew members. The ships will boast 2,070 guest cabins, 759 for crew members, and 43,500 square metres of public areas available. Innovative in design and versatility, the new ships will be able to dock in any port around the world.

Giuseppe Bono, CEO of Fincantieri declared "This is a special day for us. Today is the start of an ambitious and new adventure with our friends from MSC, a group that prides itself on its quality and Mediterranean style. These ships, which represent a genuine design challenge, will be developed entirely by Fincantieri, confirming our technological supremacy over other shipbuilders globally. Our commitment to innovation covers all high value-added sectors, thanks to the involvement of more than 2,000 technicians and 160 employees dedicated to basic research, as well as a partner network of Italian and European centres of excellence. This core asset is what makes our group unique in its kind in the world, and allows us not only to reaffirm our leadership in a sector as complex as the cruise one, but also to count on a substantial order backlog that bodes well for a full recovery in our business."

"Today, MSC Cruises adds the last piece to its new industrial plan that will allow us to double the capacity of our fleet by 2022. With the arrival of the new ships we will reach a capacity of about 80,000 passengers a day" said Gianni Onorato, CEO of MSC Cruises. "As of today we have launched an investment plan of over €5 billion that includes new builds, ordered in Italy and France, and the conversion of four ships already in the fleet."

The Seaside prototype presents unique features such as a sea-level promenade that circumnavigates the sides of the ship with outdoor spaces, shops and restaurants. In addition, Seaside will also feature a splendid and spacious theatre, a terraced balcony and panoramic lifts with sea views.

Furthermore, the ship will boast numerous technological innovations that will, among other things, further reduce fuel consumption by 25% and advanced safety systems that go beyond what is required by international regulation.