ABB wins contract to power Genting’s Universal-class cruise vessels
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 13 December 2019 13 December 2019
ABB has secured a €157 million contract to supply power, propulsion and digital solutions for Genting Hong Kong’s six Universal-class vessels that will bring global hotel brands to sea
The new vessels will be designed to the highest safety and environmental standards and will be powered by ABB’s Azipod electric propulsion, which has become the cruise industry standard since its launch in 1990.
Each of the 286-meter vessels will be propelled by twin Azipod units, with a combined power of 30 MW (40,230 HP) and will run on low-emission liquified natural gas. The vessels will be built by the Genting-owned shipbuilding company MV Werften with sites in Wismar, Rostoch and Stralsund in Germany. The vessels are due for delivery in 2023-2024.
The six vessels will bring luxury cruising experiences to its guests and feature high-end amenities, and will have a passenger capacity of 1000 to 4000 passengers depending on the Luxury, Premium or Contemporary class. Each cruise ship will have a total of 15 decks. Genting will operate these vessels for global hotel brands that want to enter the marine industry but are facing constraints related to most shipbuilding slots being occupied at present.
The vessels will have the capability to be connected to ABB Ability Collaborative Operations Center infrastructure, which monitors the performance of ABB technology on board and remotely connects operators with ABB experts.
“These vessels represent the next generation of cruising with their high flexibility, sustainable profile and highest safety and efficiency standards. ABB’s Azipod electric propulsion, known for its unparalleled performance, environmental credentials and reliability, has been a natural choice for these vessels,” said Gustaf Gronberg, Executive Vice President, Marine Operations & Newbuilding, Genting Hong Kong.
“With these vessels, we enter a new era of sustainable cruising, and we are pleased to collaborate with ABB, who through the years have proven to be a reliable solution provider enabling us to deploy advanced technology that defines the future of cruising,” said Peter Fetten, President and CEO of MV Werften.
“Sustainable technologies are at the heart of what we do at ABB, and we are truly honored to continue our long-standing relationship with MV Werften and Genting to see our technology chosen for these ships that seek to redefine modern-day cruising,” said Peter Terwiesch, President of the Industrial Automation business at ABB, which offers solutions for a wide range of industries, including marine.
Cruise travelling is becoming more popular for holidaymakers and according to industry body Cruise Lines International Association (CLIA), 30 million passengers are expected to cruise the seas in 2019 – a 6% increase year-on-year. In addition to rising numbers of cruisers, CLIA reports that travelers are becoming more mindful than ever, expecting sustainable technology on board vessels.
“Azipod propulsion has become an industry benchmark for environmentally-friendly cruise technology, with its proven ability to cut fuel consumption by up to 20% compared to traditional shaftline propulsion systems,” said Juha Koskela, Managing Director, ABB Marine & Ports. "Fuel savings of over 900,000 tons have been made in the cruise segment alone due to the selection of Azipod® propulsion.”
The Azipod propulsion system, where the electric drive motor is in a submerged pod outside the ship hull, can rotate 360 degrees to increase maneuverability and operating efficiency. Due to minimal noise and vibration, Azipod propulsion also improves passenger and crew comfort.
CLIA expects 32 million passengers in 2020, spots six trends
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 13 December 2019 13 December 2019
Cruise Lines International Association (CLIA) expects the number of ocean cruise passengers carried by its member lines to grow to 32 million next year from 30 million in 2019 and 28.2 million in 2018.
“Newly released data shows 32 million passengers are expected to set sail in 2020. To meet ongoing demand, CLIA Cruise Lines are scheduled to debut 19 new ocean ships in the upcoming year, resulting in a total of 278 CLIA cruise line ocean ships projected to be in operation by the end of 2020,” the organisation said in its 2020 outlook report.
In addition, it said six trends would hallmark thie industry in the near future.
Environmental Sustainability: The development and identification of new technologies and cleaner fuels is a top priority for the cruise industry, which continues to make substantial investments in reducing environmental impact. CLIA’s most recent Environmental Technologies and Practice Report shows significant progress towards the adoption of new and innovative practices, while the industry continues to explore new ways to increase efficiencies.
Liquified Natural Gas (LNG) – 44% of new build capacity will rely on LNG fuel for primary propulsion
Exhaust Gas Cleaning Systems (ECGS) – 68% of global capacity currently utilizes EGCS, while 75% of non-LNG new-builds will have EGCS
Advanced Wastewater Treatment Systems – 100% of new builds will have these systems in place
Shore-side Power – 88% of new build capacity will have or be configured to add this ability.
Additional Areas of Focus – battery propelled vessels, advanced recycling practices, reduced plastic use, energy-efficient lighting, solar energy, and fuel cell.
Destination Stewardship: With increased demand and growth in the cruise industry comes responsibility to foster respect and cooperation with cruise destinations. In collaboration with local communities, the cruise industry is exploring new and creative ways to manage the flow of visitors and implement the highest standards of responsible tourism including:
Partnerships with local governments
Staggered arrivals and departures
Excursion diversification
Shoreside power
Local passenger spending
Cruise and Stay: The State of the Cruise Industry Outlook found more travellers are spending time in and near cruise ports. In fact, 65% of cruise passengers spend a few extra days at embarkation or debarkation ports.
Reduce Single-Use Plastic: Travellers are taking sustainability to the seas. The study found that more than eight of ten cruise passengers recycle (82%) and reduce using single-use plastics (80%) while travelling. Seven out of ten cruisers also forego plastic straws.
Generation Cruise Positive: The attitude around cruising is changing, no matter the generation. More than 66% of Generation X and 71% of Millennials have a more positive attitude about cruising compared to two years ago.
Lone Cruisers: Marriage rates are declining and the number of single adults is growing globally. As a result, cruise lines are responding to the shift in passenger demographics by offering studio cabins, single-friendly activities, eliminating single supplements and solo-lounges.
Micro Travel: Trip durations are continuing to change, with many travellers looking for quick trips. Cruise lines are offering bite-sized cruises over a three-to-five-day period offering shorter itineraries to a variety of destinations.
GPH losses widen, issues profit warning as cargo ports extend drag
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 11 December 2019 11 December 2019
Global Ports Holding (GPH), the world’s largest operator of cruise ports, has reported a much wider nine mont loss than last year and issued a profit warning by saying that its cargo facilities continue to underperform and outweigh the positive development of its cruise facilities.
“As a result of the weakness in our Commercial ports, we now expect the Group to deliver for the full year a decline in Consolidated EBITDA in percentage terms of mid-single digit against 2018,” said the company that is headquartered in Istanbul and listed in London, in a statement.
Group net loss in the first nine months of the year widened to $14.8 million from $0.1 million year-on, while revenes fell by $3.0 million to $91.5 million.
“During Q3 2019 we announced that in light of the emerging opportunities in our cruise business that we were undertaking a strategic review of the Group. The process is currently expected to conclude in Q1 2020, however there can be no certainty as to the final outcome. A further announcement will be made when it is appropriate to do so,” GPH said.
Although the company has not explicitly said so, the review could result in disposal of the cargo ports that hurt the company’s performance for some time now.
Revenue from the cruise operations of the company rose by 11.2% to $46.2 million and EBITDA by 13.9% to $32.6 million in the first nine months, year on.
Revenue from the two cargo facilities, however, fell by 14.4% to $33.7 million and EBITDA by 19.5% to $33.7 million in the first nine months of the year.
“Our Cruise business continues to perform well in Q4 2019 and looking into 2020 and 2021, organic growth is expected to be strong driven by a significant increase in passengers at both Ege and Bodrum. The recent addition of Nassau and Antigua cruise ports to our cruise portfolio is a truly transformational for the group. Cruise passenger volumes for 2020 will increase by close to 100% and we expect to deliver in excess of $85m of EBITDA from our Cruise business by 2022, a growth rate of in excess of 100% from 2018 levels,” GPH stated.
“As expected, macro-economic factors such as trade tariffs continued to negatively impact our Commercial business in Q3, particularly Port Akdeniz. Throughput container volumes were once again weak in the period and this sustained weakness has continued into Q4. Longer term an agreement to end the current escalation of trade tariffs involving China and a general improvement in Chinese GDP are, we believe, the most likely catalysts for a meaningful improvement in container throughput volumes,” the company said.
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