Norwegian Encore floated out from the building dock at Meyer Werft
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 18 August 2019 18 August 2019
Norwegian Cruise Line's latest ship, Norwegian Encore, has successfully completed a major construction milestone, when it emerged for the first time from the Meyer Werft ship building dock in Papenburg, Germany.
Norwegian Encore will remain in the shipyard port for the final phase of construction, before her conveyance up the Ems River and towards the North Sea at the end of September. At nearly 1,100 feet long, with a gross tonnage of almost 170,000 and a guest capacity of 3,998, the ship will be delivered to the cruise line on Oct. 30, 2019. She will be christened in Miami on Nov. 21, 2019 and will commence seven-day voyages to the Caribbean on Nov. 24, 2019.
“To see the ship emerge from the shipyard is always one of the most exciting construction milestones,” said Andy Stuart, president and chief executive officer of Norwegian Cruise Line. “Our partners at Meyer Werft have been committed to our vision for not only Norwegian Encore, but for this industry leading class of ships, supporting our dedication to delivering our guests the best cruise vacation at sea.”
Taking the brand’s exclusive, stand-out attractions to the next level, Norwegian Encore will feature the world’s longest race track at sea at 1,100 feet with four high-speed curves extending up to 13 feet over the side of the ship; the largest outdoor laser tag arena at nearly 10,000 square feet with the addition of augmented reality elements; and new immersive escape room and interactive theatre experiences in the 10,000-square-foot Galaxy Pavilion.
In addition to featuring many of the highly rated restaurants and lounges that have made the Breakaway Plus class one of the most innovative and successful in the company’s history, Norwegian Encore will debut a new elevated Italian dining experience, Onda by Scarpetta, in collaboration with LDV Hospitality. The Tony Award-winning musical, “Kinky Boots” will headline the world-class entertainment on board, with returning guest favorites “The Choir of Man,” “Happy Hour Prohibition: The Musical” and the rocking Beatles cover band of The Cavern Club.
Launching this fall, Norwegian Encore will offer seven-day voyages to the Eastern Caribbean from Miami beginning Nov. 24, 2019; Bermuda, and Canada and New England itineraries from New York City beginning Apr. 22, 2020; voyages to the Western Caribbean from Miami beginning Dec. 12, 2020; and in the spring of 2021 will make her West Coast debut and sail to Alaska from Seattle.
[Norwegian Encore will be featured in Winter 2019/2020 issue of CruiseBusiness.com Magazine]
Financing package structured for implementation of the MV Werften building programme
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 16 August 2019 16 August 2019
An international consortium led by KfW IPEX-Bank has structured a €2.6 billion financing package for two Global-class cruise ships following guarantees issued by the German Federal Government and the Federal State of Mecklenburg-Western Pomerania. This will strengthen the long-term development of MV Werften Group in Mecklenburg-Western Pomerania and Germany’s status as a shipbuilding nation.
MV Werften has more than doubled its workforce to about 3,000 in the last three years, creating over 1,600 additional industrial workplaces and taking on more than 300 new trainees. Its future as well as the national added value are secured in the long term with the financing package.
The Economics Minister of Mecklenburg-Western Pomerania, Harry Glawe, stated: "Genting Group is consistently following the course it has started and proving to be a reliable partner, actively fulfilling its promises. With the Global ships and other ship newbuilding projects of Genting Group, employment at MV Werften is safeguarded well into the next decade. New jobs can be created, and existing jobs secured locally, with value added at the yard locations being further increased. MV Werften is one of the most important employers in the region.” The German Federal Government and State of Mecklenburg-Western Pomerania are supporting the financing of the first two Global-class ships during construction with guarantees totalling €750m.
To support the long-term strategy of transforming MV Werften to be one of the most modern cruise shipyards, Genting Hong Kong has invested €300m in new investment programs that have already been largely implemented. Including the purchase price of the yards and start-up losses during three years of design and development, Genting has invested around €840m in MV Werften.
“In view of the shortage of shipbuilding slots for cruise ships in the next ten years, we made a conscious decision to invest in MV Werften in order to receive ships for our three cruise brands in good time,” explained Tan Sri Lim, Chairman and Chief Executive Officer of Genting Hong Kong Ltd. “We were impressed by the quality of the German shipyards’ workmanship and their network of thousands of experienced suppliers, subcontractors and workers in building cruise ships.”
KfW IPEX-Bank has worked with Genting Group for about 20 years. KfW IPEX-Bank has organised the overall financing for the Global-class ships in close cooperation with Genting since the latter’s acquisition of MV Werften three years ago. “KfW IPEX-Bank's structuring expertise has also proven to be extremely valuable in this transaction. The financing means additional momentum for MV Werften and the completion of the ships,” noted Chairman Tan Sri Lim Kok Thay.
Construction of the first Global-class ship is already well advanced. “We thank the Federal Government, the State of Mecklenburg-Western Pomerania and not least KfW IPEX-Bank for their confidence in us and their support. We are highly motivated in our work on the projects,” said Peter Fetten, CEO MV Werften.
About the financing package
The financing package comprises around €2.6 billion with a total investment volume of just under €3.1 billion. The structure will be backed by export credit guarantees of the Federal Republic of Germany and the Finnish export credit agency Finnvera, as well as by a guarantee from the state of Mecklenburg-Western Pomerania. It also benefits from the CIRR (Commercial Interest Reference Rate) for ships in accordance with the OECD consensus.
In addition to KfW IPEX-Bank the banking consortium includes BNP Paribas, Citibank, Crédit Agricole, Credit Suisse and DNB. A substantial portion of the loan amount will be further syndicated to more than 10 other German and international banks.
TUI AG’s cruise operations continued strong performance in third quarter
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 14 August 2019 14 August 2019
The cruise operations of TUI AG, the German travel company that is listed in London, continued their strong performance in the third quarter of the company/s financial year.
Turnover increased by 15.1% to €256.3 million in the quarter, year on, while underlying EBITDA rose by slightly less, at 14.4%, to €101.5 million.
“All three brands continue to deliver growth. In Q3 2019, all three cruise brands operated by the Group continued their growth roadmap and delivered a significant increase in their operating results. With the launch of Hanseatic Nature and Marella Explorer 2 in May 2019, TUI’s cruises fleet grew to a total of 17 ships,” the company said in a statement.
The average daily rate per passenger of TUI Cruises, of which the company owns 50% and which operates o the German market, fell by €10 to €190. Marella Cruises in the UK recorded an increase in the figure to £144 from £138, while the luxury and destinational brand Hapag-Lloyd Kreuzfahrten enjoyed a €13 increase in the daily rate, to €584.
In the first nine months of its financial year, TUI’s cruise operations increased their turnover by 9.9% to €680.9 million, while underlying EBITA grew significantly faster, at 14.0% to €182.4 million.
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