BUILDING BREAkAWAY

The global guide to passenger shipping
PLUS: Building and refurbishment | Marine operations | Onboard experience | Ports and destinations
Spring/Summer 2013 £12.50
PORT RESOURCES
Facilities that attract and service global cruise lines
HEDGING BETS
Securing the right fuel bunkering deal
Building
Breakaway
Norwegian Cruise Line counts down to
the birth of a new breed of ship
INTERVIEW
Gerry Cahill on the
economy, the US
cruise market and
Carnival Sunshine
ALWAYS ON
Siemens CMT’s
Oliver Schwartz
on cruise ship
connectivity
Sponsored by:
foreword
ICFR is affiliated with:
The Florida-Caribbean Cruise Association is
a not-for-profit trade organisation composed
of 14 member cruise lines operating more
than 100 vessels in Floridian, Caribbean
and Latin American waters.
www.f-cca.com
CLIA is the world’s largest cruise
association and is dedicated to the
promotion and growth of the cruise
industry. CLIA was formed in 1975 in
response to a need for an association to
promote the special benefits of cruising.
www.cruising.org
Interferry is the only shipping association
representing the ferry industry worldwide. There are currently 220 members
(representing approximately 500
individuals) from 34 countries.
www.interferry.com
Safe return to growth?
his time a year ago, representatives
of the cruise industry gathered
in Miami under the cloud of
Concordia. It has been a year of
unprecedented activity in many
areas of safety, from the global level – as
IMO speeded up the progress of various
regulatory measures – to regional and
corporate moves to improve practices and
safeguard the reputation of cruise as one of
the world’s safest forms of tourism. Cruise
industry body CLIA, in partnership with
the major cruise lines, has been integral to
many of these important strides forward.
One year on, the risks associated with
operating today’s mega cruise ships are once
more painfully present in the minds of cruise
decision makers following the Carnival
Triumph engine fire and its consquences. In
this case, the knock-on effects are primarily
in the financial implications of having to take
a ship out of service and human tragedy was
thankfully sidestepped during the ship’s slow
(and, in the final analysis, safe) return to port.
No doubt, the debates over safety and
ship maintenance will be front and centre at
CSM this year and beyond. This issue of the
magazine has a safety theme running through
it, with articles on fire prevention and engine
maintenance as well as a look at how the UK
Maritime and Coastguard Agency ensures the
security of shipping around the country’s shores.
In our keynote interview, Carnival Cruise
Lines president and CEO Gerry Cahill talks
about fleet developments, economic recovery
and growth – and what keeps him motivated
in one of the most stressful jobs in the cruise
sector. We also hear from Norwegian Cruise
Line CEO Kevin Sheehan about his company’s
newbuild plans and, for the first time, we
feature an as-yet-undelivered ship on our cover
with an early image of what Breakaway will
look like. An interview with Royal Caribbean
Cruise Lines’ Brian Rice completes this issue’s
insights into the factors enabling the bullish
ship orders from the industry’s three biggest
companies in early 2013. We are also proud to
present our supplement, Onboard with... Royal
Caribbean International, which features indepth conversations with key executives at the
company about all aspects of operations.
This is our biggest issue yet, which is
testament to the resilience of the industry
in tough times. Topical subjects covered
include the challenge of sourcing affordable
fuel, the need for enhanced port facilities to
support cruise, recent breakthroughs in mobile
connectivity at sea, and sustainability in the
F&B supply chain. Our Yard Focus takes a
tour of river cruise ship specialist Shipyard
De Hoop, while our refurbishment section
is bigger than ever, with a special focus on
outfitting challenges.
I hope you enjoy reading the magazine. C&F
Michele Witthaus
Editor
contributors
Bill
Becken
Based in Los
Angeles, Bill
writes on the
travel industry,
transportation
and energy for
the travel trade.
He is a graduate
of Claremont
McKenna college
and Yale University.
Donald
Crighton
Donald was a
Marine Engineer
for 30 years and
served as CEO of
UK ship repairer
London Graving
Dock. He also
founded Edinburgh
Drydock in Leith,
Scotland.
Justin
Merrigan
Justin has worked
for Stena Sealink
Line and in port
agency services
at Dublin Port.
His ferry industry
experience
includes 10 years
in PR for Incat in
Tasmania.
David
Mott
David has been a
print and broadcast
journalist for
consumer and
trade titles for more
than 40 years,
latterly specialising
in the cruise and
ferry industries.
Tony
Peisley
Tony has been
writing about
passenger
shipping since
1974 for various
publications and is
also the author of
a series of research
reports on the
cruise industry.
Susan
Parker
Susan has been
writing about the
shipping industry
since 1990 and
was editor of
Lloyd’s Cruise
International until
2008. She is a
freelance cruise
shipping specialist.
Mark
Webb
Mark has been
interviewing
business leaders
and writing about
business issues for
30 years, including
in the transport,
manufacturing and
technology sectors.
3
contents
International Cruise & Ferry Review
Spring/Summer 2013 sponsored by:
upfront
Future in focus
marketwatch
Following a period of demands and pressures on Carnival Cruise Lines’
operations, along with some impressive high points in the company’s
newbuild and refurbishment activities, Gerry Cahill, Carnival Cruise
Lines president and CEO, talks about his priorities going forward
Seabourn confirms newbuild as Windstar purchases three of the
line’s ships, WSF partners with DNV to manage LNG fuel risks,
Star Cruises signs ABB contract, AIDA christens latest ship and
NCL introduces indoor cycling on its newest ships... and more
cruise business
Next level
Brian Rice, Royal Caribbean
Cruises Ltd’s executive vice
president and CFO, talks about
the challenges and rewards
of overseeing the company’s
expanding business
HAL at 140
Stein Kruse talks about where
the company is now and what
lies in store for the next
couple of years
ferry business
44 Refuelling the fleet: Decision
makers discuss an
intractable industry problem
51 Right time, right offer:
Kevin Sheehan explains
the thinking behind NCL’s
recent IPOs
64 Rewarding demographic:
Richard Vogel is optimistic
about source market growth
for TUI Cruises in Germany
69 German focus for AIDA: The
more opportunities there are
for guests to cruise from their
own doorstep the better, says
AIDA’s Michael Ungerer
73 Right time for Asia: Pier Luigi
Foschi on the establishment
of Carnival Asia in Singapore
76 Cruise upsurge down under:
Carnival Australia has been
at the forefront of recent
growth. Ann Sherry talks
to Susan Parker about the
way forward
78 Getting it right: Celebrity
Cruises CEO Michael Bayley
about the brand’s positioning
and its future focus
83 Growth curve: COO Neil
Palomba shares his thoughts
on the strategy for MSC
87 Taking classic further:
Princess Cruises is extending
its brand possibilities, says
Alan Buckelew
89 Looking to the long term:
Peter Shanks outlines
the long-term objectives
for Cunard
90 Continuing adventure:
Hapag-Lloyd is
expanding into the Englishspeaking market, says
Wolfgang Flägel
91 Best of Norwegian British:
Mike Rodwell talks about
localising Fred. Olsen fleet
92 Luxury of choice: Ellen
Bettridge on Americas
strategy for Silversea
93 Carving a river cruise niche:
Uniworld’s Guy Young details
how the company gains from
its sister brands
94 Mixed messages in
divergent markets: Signs of
a US recovery prompt
newbuild orders
96 What going global means:
The industry needs to speak
and act with one voice, says
Christine Duffy
Addressing safety
As regulatory pressure intensifies,
ferry operators discuss their priorities
in safeguarding passengers and craft
101 Making a difference: Interferry CEO
Len Roueche describes action on
safety in developing nations
102 Ongoing innovation: Stena Line’s
Dan Sten Olsson reviews 50
years of the Stena brand
106 Knowledge is power: Color Line’s
MD Trond Kleivdal talks about
leading the NSA and issues in
passenger shipping
107 Claims protection: Reducing
costs through early risk
identification
108 Shorter trips, lower costs:
Hurtigruten’s new director, Daniel
Skjeldam, discusses the line’s
future plans
5
contents
building & refurbishment
marine operations
onboard experience
MKN Galley Solution
Top quality on board
MKN Maschinenfabrik
Kurt Neubauer GmbH & Co.
P.O. Box 1662,
D-38286 Wolfenbuettel/Germany
Phone +49 (0) 5331 89-207
Fax
+49 (0) 5331 89-418
e-mail: [email protected]
MKN – Master of Performance
www.mkn.eu
ballast water
management
Plotting the right
course
Sustainability –
seriously
As concerns about the implementation
of ballast water management legislation
continue, global treatment system
suppliers share their thoughts on uptake
and issues on the ground
The technical advances of navigation are
useless without an experienced hand at
the helm. Or has technology developed
beyond the need for officers? ICFR looks
at who, or what, really steers a ship
Logistics providers consider the
implications of the global trend towards
sustainability for passenger supply
chains sourcing food and beverage
provisions for their cruise line customers
114 Managing wastewater efficiently:
Advanced treatment popular
115 USCG compliance: Hyde Marine’s BWT
allows ships to meet regulations
116 Bargain builds: Shipowners look for price
reductions from shipyards short of work
120 Greener with gas: LNG-powered ferries
122 Yard focus: Shipyard De Hoop
126 A perfect drydock: Getting the most out
of logistical and geographical variables
129 Refitting the industry: Blohm + Voss
complete demanding projects
130 New clients, new business: Core
business is growing at Lloyd Werft
132 All-round service: Grand Bahama
Shipyard previews upcoming projects
134 Canadian cruise partner: Refurbishments
at Seaspan Victoria Shipyards
137 Sealing success: Roxtec solutions for
hazards in building and refurbishment
139 Energy-efficient elevators: Kone people
flow solution increases speed
140 Robust refits: The challenges of major
refurbishments
144 Better efficiency, lower costs: Engine
maintenance need fuels trend for packages
146 Energy management technologies:
Efficiency is increasingly important for
ship operators
149 Sailing with precision: Oceanographic
data products offer fuel savings
152 Fighting onboard fires: How ship operators
protect passengers and vessels
154 Taking the EU to cruising speed: EMSA
president Markku Mylly talks about his first
six months in post
156 Cruising to prosperity: Economy and
local business benefit from the Greek
cruise industry
159 Appealing to the ego-conscious:
Consumer poll indicates profit potential in
the German cruise market
160 Cleaning up sustainably: Jamie Sweeting
explains RCCL’s mission to exceed
environmental targets
162 A reformist agenda: The UK’s Maritime and
Coastguard Agency adopts a less rigid
approach to its business, says director
Philip Naylor
166 Synchronising ship and shore: Accessing
information at sea is getting easier with
smart technology
168 Raising the supply chain bar: Process
improvements help keep cruise line
costs lower
169 Streamlining payment processes:
The buying experience is important to
guest enjoyment
170 Cutting cleaning costs: Sustainable
technology helps reduce energy use
171 Cooking at sea: Equipment should be
safe and versatile
171 Optimising onboard logistics: Mobile
containers for faster luggage handling
172 Connecting people: WMS focuses on
building the best network
174 Using technology to increase revenues:
What the smartphone revolution means
for onboard income
176 The Nexus generation: The future of
communications at sea
177 Ahead of the game: Quality is expected
but fun is what guests want
178 Elevating the design ethos: Modern
design is critical to success
7
contents
ports and destinations
Pulling power
Fresh ideas for cruise in Europe
Ports need to win and retain their major cruise visitors as lines
seek convenient and cost-effective visits, but what do they believe
are their most important resources?
Robert Ashdown has been elected secretary general of the European
Cruise Council, taking over from Tim Marking in the key regional role.
He answers ICFR’s questions about his plans and priorities
185 Bright new Baltic Star: Wismar is an
additional opportunity for the Columbus
Cruise Center
187 Simply Seawalk: The idea and the people
behind the first floating pier
188 On the ground: A lot has changed over the
10 years since Intercruises began operating
Northern Europe
193 Nudging the Norwegian north: Lines can
save costs with new ports, says Arthur
Kordt, European Cruise Service
195 Smart growth: Jens Skrede of Cruise Europe
on expanding the organisation while
maintaining intimacy
196 Scottish ports raise their game: Cruise
Scotland offers many benefits cruise operators
198 Celebrating the Irish: Port of Cork prepares
for its busiest season to date
199 Amsterdam dream: Great sea and port
facilities deliver great growth
200 Raising a Spanish profile: Huelva port
invests in emerging cruise market
201 Norway, naturally: Building a brand as the
best nature-based cruise destination
202 Baltic autumn challenge: St Petersburg
looks forward to extended seasons
203 Boosting the Black Sea: Infrastructure
projects will increase popularity
205 Destination diversity: Themed cruises prove
a profile-raiser for Atlantic Alliance
207 The right impression: Le Havre focuses on
regional strengths
209 Challenging traditional: Vigo works with
cruise lines to lower cost and raise revenue
Mediterranean
211 Front runner for the Med: Medcruise eyes the
cruise top spot
212 Corfu uninterrupted: Improvements continue
with new homeporting facilities for 2014
213 Success for SMS: Maltese shore operations
company is noticed by NCL in Miami
214 Small island, big reach: Bumper calls for
Valletta ahead of a challenging season
216 Centuries of success: Port of Piraeus
offers easy access to ancient sites and
landmarks
218 Bigger, better, Balearic: Investment results in
larger ships and more cruise calls
Africa & Indian Ocean
219 African dawn: Anti-piracy measures mean
increased calls for Cruise Indian Ocean
Middle East
220 Middle East cruise hub: Infrastructure
investment heralds a prosperous future
Asia Pacific
222 Access all Asia: Kevin Leong of the Asia
Cruise Association talks about creating
cruise milestones
224 Cracking Malaysia: A long coastline and
incentives for visiting vessels await
226 Advancing Asia: Capitalising on location is
key to success in Singapore
227 Entering the exotic: Kota Kinabalu offers
easily accessible cruise tourist attractions
Canada and Alaska
228 Season of firsts: Trademark quality for
Cruise the Saint Lawrence
230 The Great Waterway: Cruise guests can
expect scenery and, shipwrecks along the
upper Saint Lawrence
232 Bucket list beauty: Alaska remains popular
but protection rules hit lines’ pockets
Central America
233 Guatemala aglow: Antigua to host 2013
FCCA Central America Cruise Conference
235 Attracted to the archipelago: Guadeloupe
experiences its busiest cruise year
North America and the Caribbean
236 Riding the storm: NYCruise emerges from
Hurricane Sandy
237 Conveniently Boston: Minutes from major
highways and airports
238 San Diego rising: Extensive renovations lift
the location
239 Investing in the future: Port Everglades
promotes efficient and welcoming terminals
240 New ships, maiden calls: Top cruise spot
remains with PortMiami
241 Looking further afield: Cruise industry
importance and expansion at Galveston
242 Big easy, big adventure: New Orleans closes
in on the one million passengers mark
244 Exclusive Jamaica: Antonio is an ideal stop
for boutique ships and mega yachts
245 Keeping St Kitts cruising: More berthing
requests mean prioritising infrastructure
246 Aruba in ascent: A record-breaking season
in 2012 with more to come
247 Islands of contrast: Upgraded facilities in
Trinidad and Tobago benefit larger ships
248 Cruise dedication: US Virgin Islands plan
ahead for passengers
250 Caribbean innovation: Keeping ahead of
the competition
251 Bonaire’s bounty: Treasures both on land
and under water
253 Destination relationships: Benefiting ports
and cruise executives
255 Membership power: Unparalleled access to
cruise lines for FCCA Platinum Members
9
Charlottetown, Prince Edward Island,
there’s a photo begging to be captured
around every corner.
Executive Editor Jon Ingleton
Editor Michele Witthaus
Publisher Nolan Andrews
Editorial team Cherie Rowlands, Rebecca Gibson
Editorial contributors Bill Becken, Donald Crighton, David Mott,
Tony Peisley, Susan Parker, Mark Webb, Justin Merrigan
Advertising For advertising enquiries, please contact
Tudor Rose on +44 116 222 9900 or [email protected]
Advertsing sales manager Amandip Singh
Advertising account managers Tatiana Levterova, Benedict Pask
Subscriptions Michael Geraghty, [email protected]
Reprints Stuart Fairbrother, [email protected]
Website development Chris Jackson
Art direction Paul Robinson
Design Bruce Graham, Libby Sidebotham
Creative direction Leigh Trowbridge
Cover photography Supplied by Norwegian Cruise Line
Additional photography www.istockphoto.com
Circulation Ritwik Bhattacharjee
Publishing director Toby Ingleton
Business management Rachael Heggs, Lesley Krotochwil,
Lynn Yates, Richard Pepperman
www.tudor-rose.co.uk
Perfect room
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Follow us: twitter.com/Cruise_Ferry
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ISSN 0957-7696
International Cruise & Ferry Review is the biannual global guide to passenger
shipping. For further information and to subscribe, please visit:
www.cruiseandferry.net
Printed in Great Britain by Acorn Web Offset LTD.
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Views expressed in this magazine are not necessarily those of the publisher.
Acceptance of advertisements does not imply official endorsement of the products or
services concerned. While every care has been taken to ensure accuracy of content,
no responsibility can be taken for any errors and/or ­omissions. Readers should take
appropriate professional advice before acting on any issue raised herein.
The publisher reserves the right to accept or reject advertising material and editorial
contributions. The publisher assumes no liability for the return or safety of unsolicited
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HOTEL SERVICE
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PHOTOGRAPHY: TOURISM PRINCE EDWARD ISLAND - JOHN SYLVESTER, JAMES INGRAM
Cruise_and_Ferry_70x252mm.indd 1
07.02.13 09:24
With unforgettable excursions a stone’s throw away, exploring
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For more information contact:
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Moments after stepping off the ship in the beautiful and historic
city of Charlottetown, you’ll be strolling the same streets the
Fathers of Confederation did before Canada became a country.
Corryn Morrissey
Historic Charlottetown Seaport
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Email: [email protected]
www.historiccharlottetownseaport.com
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Future in focus
It has been a period of extraordinary demands and pressures on
Carnival Cruise Lines’ operations, coupled with some impressive
high points in the company’s newbuild and refurbishment activities.
Michele Witthaus hears from the company’s president and CEO,
Gerry Cahill about his priorities going forward
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y mid-2012, with the sparkling
new Carnival Breeze launched
to an enthusiastic reception
and bookings on the rise across
all its ships, Carnival could
have been forgiven for thinking the tide
had turned for the better following the
Costa Concordia nightmare of early
that year. Offering immersive movie
experiences, giant water slides, suspended
rope courses, miniature golf and outdoor
fitness options, Carnival Breeze put
the focus back firmly on fun and on
Carnival’s ability to keep on taking it to
new levels in its expanding fleet.
There are advantages to being part of
the largest cruise company in the world
and global reach is not the least of these.
Carnival Corporation and plc is the only
group in the world that can boast inclusion
in both the S&P 500 and the FTSE 100
indices. Yet even that power base was rattled
during the course of 2012 by the events of
January, with reports of significant costs to
the company. The continued impact on the
leisure industry of the global recession was
an added complicating factor.
Yet when the year-end results were
announced, the losses to the Carnival
group that had been predicted following
Concordia had failed to materialise to the
expected extent. Revenues for the full year
2012 were US$15.4 billion compared to
US$15.8 billion for the prior year – far
from the disastrous fall some had feared.
The increasing cost of fuel represented a
significant proportion of that drop as the
company dealt with net unrealised losses
on fuel derivatives of US$5 million in
the fourth quarter alone – but even here,
Carnival had turned it around with savings
on fuel consumption (4 per cent) that would
stand it in good stead going forward.
With earnings reduced by US$300 million
compared to the previous year, the company
said stronger than expected revenue yields –
combined with lower than expected fuel costs
– more than offset higher than anticipated
operating costs. All told, the company
appeared to have bounced back from the
financial and reputational shocks it had
received in the dark days of January.
During the fourth quarter, the return to a
feel-good mood was confirmed as Carnival
Corporation and plc announced it had
reached an agreement for the construction
of two new cruise ships – a 2,660-passenger
ship for its Holland America Line brand to
be delivered in 2015 and a 4,000-passenger
vessel (the first in a new class) for Carnival
* Very low acute aquatic toxicity to both fish and invertebrates based on tests of water accommodated fractions.
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13
marketwatch
Upfront
Windstar Cruises’ owner
purchases Seabourn ships
The three Seabourn ships will join Wind Surf and sister yachts Wind Star and Wind Spirit
Xanterra Parks & Resorts buys Legend, Pride and
Spirit, doubling the size of its sailing yacht fleet
WSF and
DNV
manage
LNG fuel
risks
Washington State Ferries has partnered
with risk management company DNV
to ensure that the safety, security and
operational challenges of using LNG to fuel
ships are handled in a responsible manner.
To date, 35 out of 37 LNG fuelled vessels
in the world, including the very first in
2000, have been built to DNV’s standards.
“As the biggest ferry operator in the US
and the third biggest in the world, WSF
can really lead the way for its industry,”
said Kenneth Vareide, director of DNV’s
maritime operations in North America.
“In DNV, we can now clearly see a
tipping point when it comes to global
interest in LNG-fuelled ships. Knowing
that LNG as a fuel helps reduce emissions
and costs, our team of researchers,
engineers and business analysts are
looking forward to assist WSF and other
companies with managing risks related to
their LNG operations.”
Seabourn Spirit will be part of the Windstar fleet
anterra Parks & Resorts, the
owner of Windstar Cruises,
signed an agreement to
purchase three Seabourn ships
on 15 February 2013, doubling
the size of its recently renovated fleet and
increasing the range of its itineraries.
The acquisition will take place over
the next two years with Seabourn
Pride, Seabourn Legend and Seabourn
Spirit entering the Windstar fleet in the
Mediterranean in April 2014, April 2015
and May 2015 respectively. As part of the
Global Windstar project, each ship will be
renovated and renamed before beginning
28
International Cruise & Ferry Review
service, making the company the market
leader in small-ship cruising with 300 or
fewer passengers.
“This expansion is the perfect way to
build on the momentum following our
recent fleetwide renovation, providing us
with the much needed capacity to match
the accelerating demand for our intimate
style of yacht cruising,” said Xanterra
Parks & Resorts CEO Andy Todd.
“Global Windstar enables us to extend our
unique small-ship experience throughout
the world.”
The development allows the cruise
company to offer new Asian and South
American destinations in addition to
the 50 countries in Windstar’s current
itineraries, alongside the line’s return to
Tahiti in May 2014.
“Windstar is proud of its heritage in
sailing, but what our guests are most
enthusiastic about is our intimate, yacht
style of cruising,” added Hans Birkholz,
chief executive officer of Windstar Cruises.
“This style is the core of our brand
experience and the new ships are a perfect fit
to build on that foundation.”
Windstar’s shoreside operations will
continue to run out of the company’s
Seattle headquarters.
Seabourn stated there will be no service
disruption to scheduled voyages throughout the
process, while the company has also confirmed
its intention to order a fourth ship which will
join the remaining three vessels in its fleet.
Seabourn president Rick Meadows said:
“Our three newest vessels, Seabourn Odyssey,
Seabourn Sojourn and Seabourn Quest, have
raised the bar for ultra-luxury cruising and we
intend to add a fourth ship of similar design.
We are already in discussion with shipbuilders
and an order is likely to be announced
within the current fiscal year. The new ship
will allow Seabourn to maintain much of its
current guest capacity.”
“The expansion
provides us with
much needed
capacity to match
the demand for
our style of yacht
cruising”
DNV is partnering with WSF to ensure safety
challenges are handled responsibly
29
interview
Right time,
right offer
Norwegian Cruise
Line has moved
decisively to
position itself for
growth. Kevin
Sheehan explains
to Tony Peisley the
thinking behind
the company’s
recent IPO
shore excursions
turnaround services
port agency
Port & Shore Operations
worldwide
Malta: 27, Birkirkara HIll, St Julian’s, Malta | Tel +356 2577 1111
Miami: 125 NE 9th Street, Miami, FL 33132, U.S.A. | Tel: +1 305 290 3000
[email protected]
With over 60 years experience
in cruise passenger handling in
Malta, SMS International Shore
Operations provides turnaround
and shore excursion services in
over 20 ports including:
Denmark, Italy, Libya, Malta,
Tunisia, UK & USA.
The list keeps on growing
depending on the requirements
of our principals and clients, so
It’s no wonder we are rated as
one of the top shore servicing
companies in the world.
“
here was a small window of
opportunity, we took it and it
worked out pretty well.”
That was Norwegian Cruise
Line’s CEO Kevin Sheehan’s
understated take on the company’s successful
IPO in January. The bold move by the
company saw the estimated initial share price
offer of US$16-US$18 raised to US$19 with
shares then trading (as NCLH) at US$24 on
the Nasdaq within hours and rising again to
US$27 over the next week.
With 3.5m extra optional shares also
bought, the IPO raised US$478m instead of
the original estimate of US$370m and that
is primarily being used to pay down debt,
including that on several ships. About 13
per cent of the equity was sold, leaving the
current owners each with slightly reduced
shares: Genting Hong Kong (43.4 per cent),
Apollo Global Management (32.5 per cent)
and TPG (10.8 per cent).
Speaking a couple of weeks after the
event, Sheehan described the IPO as
‘inevitable’. He said he would have preferred
that it happened a little further down the
line but there were pressing reasons why the
company chose that particular moment.
Previous attempts at an IPO had
been postponed several times before –
under both the current ownership and
management and previous regimes – but
he explained that “a variety of things just
came together. Our own recent financial
performance had a pretty good track
record and investors could see that. Many
also knew me from other places over the
years so there was always going to be a lot
of interest in our offering but the key to
the timing was that Washington had just
managed to resolve a little bit of the tax
situation for consumers. This boosted the
market but we knew we needed to slip in
the IPO before the potential negatives set
in about the debt ceiling and how all the
”The IPO reminded people that the cruise industry
had managed to maintain annual growth of
more than 7 per cent over the last 10 years”
Denmark | Italy | Malta | UK | USA
www.sms.com.mt
51
interview
Cruise Business
A very rewarding source
market
With orders for
two new ships,
TUI Cruises is
optimistic about
regional growth,
Richard Vogel
tells Bill Becken
en or fifteen years ago, cruise
companies addressed the market
as a monolith. Now the industry
targets not just certain countries,
but special demographics and
guest groups, with tailored offerings.
As well it should – considering that,
for example, even demand within the
vaunted European source market varies
widely by region; and that, even within
regions, countries vary widely as to their
market self-differentiation.
A busily self-differentiating country like
Germany, for example, has a cruise market
readily addressable by at least three nativelanguage, native-culture cruise lines. These are
market leader AIDA Cruises, of the Carnival
Corporation & plc family of brands; plus TUI
Cruises and Hapag-Lloyd Kreuzfahrten, both
subsidiaries of TUI AG, a diversified global
tour operator, Hanover, Germany. The latter
two firms offer Germans a premium and
luxury cruise experience, respectively.
In addition, the industry expects the
German market to deliver healthy, rising
demand over the next several years –
especially considering the patchwork
global economic recovery, but also because
Germans are ripe for the kind of nativelanguage, native-culture cruise experience
that the three competing cruise lines
specialise in.
“Simply put, the cruise business is still
booming,” says Richard Vogel, CEO, TUI
Cruises. “According to a DRV (German
Travel Association) study, in 2011 alone
some 1.8 million Germans went on a cruise,
representing a jump of 12 per cent over the
previous year. In Germany, we expect to
see the sector grow 11 per cent by 2015.”
Vogel says today’s cruises offer an array of
choices to would-be cruisers, who form an
increasingly large audience.
Notably for those Germans seeking the
premium experience (and instructively for
the industry), TUI Cruises arose as a joint
venture between TUI AG and global cruise
vacation company Royal Caribbean Cruises
”Simply put, the cruise business is still
booming. In Germany, we expect to see
the sector grow 11 per cent by 2015”
64
International Cruise & Ferry Review
EXECUTIVE roundtable
Ferry Business
Left: P&O Ferries’ Spirit of Britain and Spirit of France were the first ferries
in the world to follow the Safe Return to Port standard
Below: Stephen Fairlie, marine standards superintendent at DFDS Seaways
European
operators
address
safety
As regulatory
pressure intensifies,
ferry operators
consider the priorities
in safeguarding
passengers and
craft. By David Mott
98
International Cruise & Ferry Review
”We carefully select each
vessel on all our routes
to ensure they can safely
accommodate traffic”
ver since the Herald of Free
Enterprise capsized and sank
with the loss of almost 200 lives
more than 25 years ago, the
ferry industry has been acutely
aware of the potential vulnerability of the
through-deck design which is at the very
core of its efficient operation.
So when P&O Ferries brought its two
huge ferries into service two years ago as the
largest on the Channel, it was the built-in
safety features of the Safe Return to Port
(SRtP) standard that were most highly
prized, even though the vessels were also
very green and economic to run.
John Garner, fleet director of the
company, explains: “I suppose that in
some company boardrooms, volunteering
to pioneer new design standards when
commissioning new ships would be a
tough sell. I had to be clear that we would
encounter significant new technical
challenges and an increase in build costs
which was difficult to quantify.”
The SRtP requirements, drawn up by the
International Maritime Organization, are
that in the event of a casualty, basic services
are to be given to everybody on board and
certain systems must remain in operation to
facilitate a return to port. Spirit of Britain
and Spirit of France, which cost a combined
Euros 360 million, were the first ferries in
the world to have the standard.
Garner explains that an added
complication arose because the system was
introduced by the company ahead of the
compliance date. “The safety ethos of P&O
Ferries was that we would not seek to be ‘rule
beaters’ for a period of one year and then
operate ships of a lower standard for the next
24 years. We saw the opportunity to make a
significant safety improvement, so we did.”
The problem was that at that time, nobody
was quite sure what the new standard would
be. “I see it as an example of how we can
choose either to work to the letter of statutory
requirements or embrace the spirit of them,”
says Garner, who is also a great believer
in developing staff beyond the statutory
requirements of the Standards of Training,
Certification and Watchkeeping.
He argues that, quite apart from improved
safety, staff improvement brings other
advantages. “We have a vested interest in
the professional development of our people
beyond their certification requirements. Our
role is to help them raise their skills to another
level so they gain expertise and experience and
at the same time improve their job satisfaction
and inclination to stay with the company and
recommend us to others.”
As a result, P&O Ferries has also
embraced maritime resource management
training. Bridges and engine-rooms, he says,
are managed most effectively by teams of
people working closely together rather than
by an individual, where there is the risk of a
single point of failure.
A somewhat spectacular safety
development is also part of the mix at the
company, says Garner, comprising the
abandonment of davit-launched lifeboats
in certain vessels in favour of aircraft-style
chutes – ‘dry-shod evacuation’, in the jargon
of the industry. In brief, passenger evacuate
from a position under cover down the chutes
and onto life-rafts. He and other staff of the
company cut their teeth on large high-speed
craft where this form of evacuation is the
norm and is incorporated into the High
Speed Codes.
“When we came to convert two large
freight ships into multipurpose vessels,
it was natural for us to challenge the
convention of davit-launched lifeboats and
to propose dry-shod evacuation systems,
drawing on our fast ferry experience.”
Garner adds: “I suppose it would have
been easier to follow the traditional lifeboat
route. But we saw a better way, made our
case and then fitted 100 per cent dry-shod
evacuation when we converted the Pride
of Kent and Pride of Canterbury. We have
carried this forward to our new Spirit-class
ships, Spirit of Britain and Spirit of France.”
So the two biggest vessels on the Channel,
at more than 47,000 tons, are not fitted with
lifeboats, only life-rafts.
Head-to-head rival DFDS, which has
just combined its Channel operations based
in Dover with its North Sea business run
from Newcastle, also puts great emphasis
on the quality of its staff. Marine standards
superintendent, Stephen Fairlie, says every
department, both ship and ashore, has
operating procedures in place to ensure the
safe, secure and efficient movement of high
volumes of passengers and freight vehicles.
“All DFDS staff are familiar with and
fully trained in these procedures,” says
Fairlie. “They are also trained to implement
contingency plans to enable them to
react quickly and efficiently should a
situation arise outside of normal day-today operations.” Bad weather, port and
ferry delays and high volumes of traffic are
the sort of situations that demand special
action, he says.
Route planning also plays a part in the
safety regime. “We have been involved in
planning route navigation around new wind
farm developments in the North Sea. This
includes working with wind farm planners
to outline potential navigation risks and
ways to mitigate them.”
Ship design has an important part to
play: “Some of our ships, such as the
D-class vessels on the Dover-Dunkirk
route, have been specifically designed for
the routes they operate on. We carefully
99
”There is now sufficient technology
choice available to the owneroperators to tailor ballast water
management system solutions
to the specific ship operational
requirements”
Building & Refurbishment
Feature
Getting behind
ballast water
management
Amidst ongoing concerns about the implementation of proposed
ballast water management regulations, global treatment system
suppliers discuss uptake and issues on the ground
n autumn 2012, the International
Chamber of Shipping (ICS) welcomed
governments’ acceptance at the
International Maritime Organization
(IMO) Marine Environmental Protection
Committee that there are significant issues
with implementing the Ballast Water
Management Convention (BWM).
Immediately following that meeting, ICS
secretary general Peter Hinchcliffe said: “It is
good that many governments seem to accept
110
International Cruise & Ferry Review
shipowners’ arguments that it will be very difficult
indeed to retrofit tens of thousands of ships within
the timeline of two or three years after entry into
force as the Convention text currently requires.
IMO has agreed to develop an IMO Assembly
Resolution for adoption in 2013, to facilitate
implementation to work smoothly. It is vital that
we ease the log jam by spreading implementation
over five years rather than two or three.”
Hinchliffe’s concerns were repeated almost
verbatim a couple of months later at the annual
tripartite meeting of the representatives of
the worldwide Association of Shipbuilders,
Classification Societies and Shipowners,
in Busan, Korea in December 2012. ICS
chairman Masamichi Morooka said: “We are in
full support of the IMO and intentions behind
the BWM. However, given where we are today,
we need to re-address both the timeline and
the Approval requirements defined in the G8
guidelines in order to ensure that we achieve
the real intentions of the Convention without
unnecessary costs and unintended compliance
issues. We need to urgently engage with both
the IMO and the individual governments in
order to address these issues.”
Two global suppliers of ballast water
systems – Wärtsilä and GEA Westfalia
Separator Group – offer their thoughts for
cruise ships and ferries in regard to adopting
the D-2 standard by 2017. Wärtsilä ballast
water systems director Dr Joe Thomas
says: “There is now sufficient technology
choice available to owner-operators to tailor
BWMS solutions to specific ship operational
requirements. Some are naturally more
proactive than others. Some passenger ships
already have systems installed and Wärtsilä
is in advanced discussion with a number of
cruise and ferry owner-operators regarding
installation in advance of 2017. In our
experience there is a preference for UV-based
ballast water treatment technology, although
other treatment technologies such as electrochlorination (EC) remain of interest.”
Sven Jadzinski, senior product manager
marine, GEA Westfalia Separator Group,
agrees that adoption depends on the
individual mindset. He says: “GEA has
several clients that are starting now. Others
are waiting until the very last day. There
will be bottleneck in terms of production
capacities, both skilled engineers and bluecollar staff, and for system installation once
the ratification has come into force.
“The major challenge is to establish inhouse competence in order to compare the
technologies available on the market to select
the best fit for the ship. Once this decision
has been taken, a partner must be identified
in order to start the real work: amendments
of ballast water schemas, approval by the
classification society, surveys on ships,
preparation of workshop drawings, system
installation and finally commissioning. All
111
Marine Operations
Feature
Clockwise from left: Building in redundancy to
systems is a key aspect of Autronica’s maritime work;
Everlux supplies high-visibility signs and instructions
that can be seen in conditions of poor visibility
Facing the
fire hazard
challenge
”The increase
in numbers of
large passenger
vessels is likely
to make the
issue of onboard
safety even more
prominent in
the future”
Evolving fire safety
legislation requires
action from ship
operators to protect
passengers and
vessels. Rebecca
Gibson reports
ires can occur in numerous places
onboard passenger ships and
can be highly damaging to both
people and the vessel itself. In the
event of a fire, it is important to
ensure that the crew and ship are equipped
to detect, contain and extinguish the
outbreak as soon as possible to contain the
risk of injury or damage.
In order to guarantee ships are able
to cope with such an emergency, the
International Maritime Organization’s
International Convention for the Safety Of
Life At Sea (SOLAS) Chapter II-2 outlines
a set of requirements for fire prevention,
detection and suppression onboard ships.
The directives were formed in conjunction
with the International Fire Safety Systems
Code and ensure ship operators focus
on the prevention of fire outbreaks and
casualties by installing the latest protection
systems and appliances, as well as adhering
to current safety procedures. The SOLAS
regulations are continually reviewed and
amended, before becoming mandatory for
ship owners.
“Both the cruise and ferry lines have put
the safety aspect at the top of their priority
152
International Cruise & Ferry Review
list, as new rules have been implemented
for both the refit-market and in relation
to newbuilds,” says Jon Arne Simonsen,
regional sales manager, maritime division,
Autronica.
“Ship owners are making a concerted
effort to comply with the latest regulations,
in order to ensure they receive a certification
of operation from the classification
societies,” agrees Tiago Pedrosa, export sales
manager, Everlux.
Recent SOLAS amendments include the
Safe Return to Port (SRtP) regulations,
which stipulate that all essential systems
must remain operational following onboard
fires or flooding, unless the damage exceeds
a pre-defined threshold.
“The SRtP regulation and the SOLAS
policies require a higher level of redundancy
on the fire detection and all other safety
systems onboard a ship, as well as a
main system and a backup system,” says
Simonsen. “Dual Safety technology enables
redundant control of the loop, meaning that
the loss of the main detection system in a
fire zone will not leave the ship unprotected,
as the backup panel system will immediately
take over the coverage and control.”
SOLAS developments have also altered
the types of system used to suppress
onboard fires. “Water Mist is an extremely
effective fire-fighting medium and is
becoming a preferred solution for many
applications in the maritime market,” says
Petter Traaholt, president, Wilhelmsen
Technical Solutions, which acquired
Novenco Fire Fighting in November
2012. “Water mist systems are chosen for
their high flexibility in enclosed spaces, as
well as their limited impact on personnel
and the structure of the vessel. With
the changes in SOLAS requirements,
watermist will be a great option compared
to less environmentally friendly solutions.”
Updated regulations have also increased
the demand for high luminance safety
signs which can significantly reduce the
risk of fire by identifying hazard areas,
highlighting safety equipment and
indicating escape routes.
“Safety signs identifying the location of
all safety equipment, evacuation routes and
designated muster stations are mandatory, as
these will help to extinguish the fire before
it spreads, as well as reducing evacuation
time and minimising the risk of casualties
during a ship abandonment scenario,”
explains Pedrosa.
According to ISO 16069, a Safety
Way Guidance System (SWGS) must be
installed on all ships for the use of crew
and passengers in the case of an emergency.
The system is comprised of signs placed
at three different heights throughout the
ship, all of which play a specific role if an
outbreak occurs.
“Safety signs installed at high location
levels above 1.80 metres allow immediate
identification of the fire fighting
equipment that should be used as first
means of intervention against the fire,
increasing the likelihood of extinguishing
the fire at its source,” explains Pedrosa.
“Signs installed at an intermediate
location level, from 1m to 1.8m in height,
are easy to read and provide information
and instructions to crew and passengers,
including guidance on how to use firefighting equipment.”
In the event of a fire, the accumulation
of smoke reduces visibility and eventually
blocks signs installed at high and
intermediate location levels. A Low
Location Lighting (LLL) System must also
be installed 30cm from the deck. The LLL
system remains illuminated and clearly
marks the escape route, ensuring the safe
evacuation of passengers and crew.
Many of the requirements have been
developed with the aim of avoiding situations
where passengers and crew are forced to
evacuate the ship. “The SRtP and other
SOLAS regulations reflect the notion that it
is better for a ship to become its own lifeboat
during an emergency, rather than abandoning
to external lifeboats,” explains Simonsen.
“This is particularly relevant today as ships are
larger than ever and can accommodate up to
6,000 passengers and a crew of 1,500.”
The increase in the number of large
passenger vessels is likely to make the issue of
onboard safety even more prominent over the
coming years and it is expected that current
legislation will be developed accordingly.
“Ideally, the authorities should be able
to develop safety legislation, which actively
prevents accidents and the loss of lives
at sea,” says Pedrosa. “Unfortunately,
the reality has been that requirements,
standards and legislation are only improved
as a reaction to major accidents and the loss
of lives.”
Pedrosa sees the potential for
improvements to existing SOLAS
directives: “The current minimum
luminance requirements for LLL systems
were set by IMO Resolution A. 752 (18) in
1993, but they should be altered to meet
the higher requirements defined by several
international standards for fire protection
in buildings.”
Simonsen highlights the need for a
focus on the role of the crew: “As the
industry regulations increase and the
onboard safety systems become more
complex, it will become more important
for crews and system operators to be
trained to handle onboard emergency
systems correctly,” he says, adding: “Safety
packages have expanded in order to cover
developments in the SOLAS requirements
and we now offer emergency shutdown,
safety management or integrated safety
emergency management systems as part
of independent fire detection systems.
The advanced systems cover all aspects
related to monitoring and control of all
main emergency systems onboard and
can be used as a digital plotting board or
emergency training tool for the crew.” C&F
153
Commentary: MOBILE communications
Onboard Experience
”Smartphones give the cruise operator
an invaluable way to directly
communicate, when they want to,
with any given guest”
The smart
way to
increase
onboard
revenues
The smartphone
revolution has
redefined the way
people across the
globe communicate
and consume
data. Ole-Kristian
Sivertsen, senior vice
president of business
development and
sales at Maritime
Communications
Partner, looks at
what this means for
onboard revenues
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International Cruise & Ferry Review
Maximising onboard revenue through mobile
communications has never been easier, says
MCP’s Ole-Kristian Sivertsen
f you look at revenues generated
by mobile services onboard cruise
ships to date, then shipowners have
earned more than US$250m through
revenue share agreements. But that
should really just be seen as the tip of
what we believe is a huge iceberg.
Iceberg analogies may not always be
welcome in the world of shipping, but the
potential for maximising wider onboard
revenue through leveraging the power
of smartphones certainly will be. We see
the smartphone as the biggest change in
our communication behaviour since the
personal computer and the latest global
figures on the platform back this view up.
2012 was a watershed year for the
smartphone industry. In October it was
revealed that the number of people using the
devices had surpassed 1 billion for the first
time, with that figure expected to leap to 2
billion by 2015. Over 700 million individual
units were shipped in the last 12 months
(up from 490 million in 2011), with the
biggest manufacturer, Samsung, accounting
for a staggering 213 million handsets
alone. Most developed regions are already
reporting an adoption rate of above 50 per
cent (smartphone penetration currently
stands at over 63 per cent in the UK), with
projections of a 57 per cent uptake amongst
the global mobile audience this year.
What’s more, the market is maturing,
quite literally, with the highest growth
in users among the older, higher-income
demographic. This is substantiated by
numerous surveys conducted onboard cruise
ships, where up to 80 per cent of guests have
smartphones.
So, a lot of people have the devices – that’s
clear – but how can that impact on onboard
revenues? Smartphones have driven up data
traffic over our network exponentially, with
a mobile data traffic increase of 110 per cent
over the last year alone. That translates to
immediate gains in terms of the revenue
sharing model.
However, the potential for smartphones is
so much greater than that – it’s about much
more than simply generating money through
standard usage. We’re empowering our clients
to reach further and gain added value.
The devices really come into their own
as one-to-one marketing tools. MCP’s
network has the ability to identify and
pinpoint every single mobile phone that is
switched on onboard a ship. That gives the
cruise operator an invaluable way to directly
communicate, when they want to, with any
given guest. The possibilities for this are
almost endless.
SMS messaging is one channel ripe for
exploitation. For example, texts can be sent
to targeted customers during off-peak times
at the onboard spa to announce special
offers, or to drive up footfall for discounted
trips to restaurants, or perhaps detailing
‘limited edition’ or selected retail offers.
Research suggest that 90 per cent of text
messages are viewed within three minutes of
being received, giving the cruise operator a
direct insight into the consciousness of the
guest, exactly when it is most needed.
And there’s much more to it that, if
operators adopt strategies such as digital
coupons, QR codes and video content.
Think of onboard gaming or bingo: by
making tickets available on mobile devices,
guests could buy them and even play them
in their cabins. If you want to motivate
them to move into the lounge area to play,
stimulating them to spend money on food
and beverages, then you could customise the
offer so they get two tickets for the price of
one if they are in the lounge. This makes the
marketing context-aware.
Revenues can also be enhanced onboard
for shoreside activities, such as excursions.
A message announcing a trip could be
combined with a video experience, such as
a virtual tour, and targeted promotions to
encourage up-sell. Information could be
delivered to participants before, during and
after the excursion, always connected to a
revenue-generating opportunity.
And of course, if you stop at a port
then missing or late passengers can delay
departures, waste fuel and ruin tight
schedules. However, sending notifications
and departure reminders can combat
this, minimising delays and maximising
efficiencies and revenue.
The onboard potential for cruise operators
is clearly enormous – for example, sending
food and drink menus directly to handsets
and purchasing photos, which can then be
instantly shared via social media platforms
– but the onshore pre- and post-cruise effect
should not be discounted, especially when it
comes to brand building.
Offers can be tailored to enhance the
brand, such as offering limousine services to
pick guests up before travel, or their favourite
champagne on ice, waiting in their cabin upon
arrival. Reduced-price photos post-voyage
could be discounted further if shared through
social networks, which some 84 per cent of
smartphone users access on their handsets,
letting guests do your marketing for you.
Once contact has been made, a new
communication channel has been opened
to consolidate the relationship with the
guest. Short surveys can be sent, timesensitive promotions offered and ‘thank
yous’ dispatched, all enhancing the guests’
perception of a cruise brand that directly
talks (and listens) to them.
There is no reason, for example, that
platforms such as Facebook cannot be utilised
to connect like-minded people prior to travel
so they have ‘friends’ waiting for them when
they step onboard. That kind of connection
or sense of belonging is a great way of turning
one-time guests into loyal, repeat customers.
They’re called smartphones for a
reason – and at MCP, we want to ensure
that ship owners are as switched on as
possible, allowing them to reach further
and maximise their enormous potential for
generating revenues. C&F
175
Ports & Destinations
feature
Pulling
power
Ports need to win and retain
their major cruise visitors as
lines seek convenient and
cost-effective visits, but what
do they believe are their most
important resources? Cherie
Rowlands investigates
hile few will argue
with the enormous
part destinations play
in providing itinerary
planners with reason to
commit their cruise ships to calling, most
would also agree that the decision rests
on much more than an exotic, passengerappealing location.
With ever-changing market forces –
including long-term global issues such as
new Emission Control Area (ECA) rules
effective in 2015 and unpredictable regional
events like the political situation in the
Falklands Islands – finding convenient,
cost-effective and safe stops is paramount.
Ports that provide what their cruise
customers want will ultimately win the day,
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International Cruise & Ferry Review
but what do they believe lines are looking
for and how are they choosing to provide it?
Head of development at the French
Bordeaux Atlantic Port, Laurence Bouchardie
says: “We believe that our destination, what
it has to offer, the location of cruise terminals
and how they enable passengers to easily
enjoy the destination is important, but we
have also invested a lot to maintain a high
level of quality in our port services.”
The authority has recently invested
€600,000 to improve and modernise
its two-berth facility in Bordeaux City
and is currently improving its Le Verdon
terminal infrastructures. It has plans for
infrastructure development in Pauillac,
while pilots have invested in maintaining a
high level of security and quality of service.
Spacious terminals
increase call efficiency
“Gironde pilots have been training for
three years on the €400,000, full bridge
manoeuvring simulator, Transas Navitrainer
5000,” says Bouchardie. “The simulator was
funded by the port authority with assistance
from the Bordeaux City community and
purchased when the new Bordeaux bridge
was built, to define the best way for ships
visiting Bordeaux to get through this new
gate. The way we work together – agents,
tour operators, city council, the Chamber of
Commerce, port authority and pilots – also
ensures smooth visits for cruise lines.”
Corryn Morrissey, marketing manager
at the Charlottetown Harbour Authority
on Prince Edward Island in Canada, says:
“Working closely with our regional partners
to create an attractive itinerary as a whole,
rather than one specific port, is key for us. It’s
important to have high customer satisfaction,
partnered with a full itinerary that cruise
passengers want to visit. To achieve that, we
strive for efficiencies when the ships are in.
You want passengers to get the most out of
their visit, so being able to disembark and
embark the ship efficiently and effectively is
what sets the minds of cruise lines executives
at ease for future visits.”
Nova Scotia’s Sydney Port Authority
cruise marketing and development manager
Bernadette MacNeil says: “Following advice
from cruise lines, safe ports are selected based
on their geographic location as well as on the
port’s ability to provide a quality experience for
the cruise line guests. Cruise ship passengers
have many choices to explore our island in any
one of the many shoreside excursions, while
tour operators in our region are reputable and
have established sustainable and successful
businesses. It is important that ports work
with all parties involved in the cruise
business, including all levels of government,
tour operators, ship’s agents, the destination
marketing organisations, border agencies and
pilotage services, to maintain high standards.”
On the infrastructure front, the Port of
Sydney has invested close to US$10 million
in port redevelopment over the past 10
years. “Cruise lines expect that ports have
basic infrastructure to allow for dockside
efficiency, safety, transportation, and the
delivery of general services,” MacNeil
says. “Our cruise pavilion was designed to
virtually accommodate every need of the
cruise ship passenger, including a private
room for the crew from the ship with free
internet access. Our cruise community
works collectively to welcome the
passengers, which results in our exceeding
expectations in most cases.”
Veit Hürdler, managing director of
Columbus Cruise Center Bremerhaven and
Columbus Cruise Center Wismar, largely
agrees that in certain ports infrastructure
improvements are necessary and can have a
big impact on the decision for future calls,
mainly turnarounds. He says: “Having set up
Columbus Cruise Center Bremerhaven 10
years ago, we feel we are pretty much there,
both within and outside the terminal. Our
busiest day was 6,500 turnaround passengers
from four different ships in one day of
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feature
operation through one terminal. If you can
deliver this level of service smoothly, there are
few improvements needed. For a professional
transit call it is nice to have a terminal like
the Columbus Cruise Center Bremerhaven
(CCCB), but it is not compulsory. In Wismar
– CCCB’s new cruise port location – we are
working with a simple hall and there are
examples in other destinations where a tent
works as well.”
What is essential, Hürdler believes, is that
the operation is a professional one, run by
those who know the business. “This is one
of the key factors in the success of Wismar.
The Bremerhaven team is an extremely
service-minded group that really cares about
the passengers.”
Hürdler also agrees that communication
is crucial, but adds: “Expectations must
be set for both the cruise lines and their
passengers. Transit times for coaches
and capacities at tourist sites must be
calculated on a realistic basis and should
be communicated openly to avoid
disappointment for the cruise line and, more
importantly, its passengers.”
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increases the appeal of a destination by
addressing the cruise lines’ main concerns
regarding guests’ experience and operational
efficiency, agrees ground handling company
Intercruises’ operations director, Olga
Piqueras: “Spacious terminals with an
efficient layout provide flexible embarkation
options, organised baggage drop points,
plentiful guest seating, wheelchair
accessibility and fully equipped lavatories
including baby changing units. Facilities for
crews and ground handlers, such as office
space, internet access and money transfer
services, are important too. Zones outside
the terminal with clear signage are essential,
as guests will encounter an abundance
of activity in this area. A high level of
cooperation is required to ensure smooth
flow as the combination of baggage trucks,
taxis, bus departures, shore excursions and
private party debarks can cause congestion
at the terminal entrance.”
Guest participation in shorex an
important element, says Piqueras. “Port calls
can be challenging if the destination is not
capable of handling the influx of tourists.
Sparse venue options or inflexible opening
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hours cause the destination to become a
bottleneck, which leads to excursion delays
and a detrimental guest experience.”
Illustrating Piqueras’ point, MacNeil says:
“Challenges come with success. Congestion
in our port has resulted in a struggle to meet
the demands of shoreside excursion sales due
to the shortage of tour buses. Conversations
are being coordinated with the city, the
destination marketing organisation and the
tour operators, so we can plan excursions
that are in close proximity to the vessel,
which negates the need for transportation.
Serious consideration is also being given
to the development of a second berth to
increase capacity and will be the main focus
of an upcoming port summit.”
Bouchardie adds: “We notice that more
and more cruise lines want to spend two or
even three days in Bordeaux, because there
is so much to see, so we have to be proactive
and find new solutions to solve problems that
do not occur when cruise ships only stay one
day. Bordeaux is not yet a turnaround port,
but Cruise Bordeaux members are discussing
this idea for the future.”
Morrissey says: “One of the biggest
challenges for us is global competition. It’s
not just a matter of competing with your
next-door neighbour, but being able to set
yourself apart from some of the incredible
places around the world.”
One of the ways ports are differentiating
themselves is through capitalising on new
industry regulations, such as the ECA
requirements that come into effect in 2015.
California is going further by making
shoreside power supply compulsory from by
2014, so that ships not equipped with a shore
connection system will be unable to berth at
any of the US state’s ports beyond 2014.
Global energy company Schneider
Electric has developed a shorepower solution
called the Compact Shorebox system.
“The biggest Californian port in the US
has retrofitted its berths with our system,
while in Europe, Schneider Electric has
provided the onboard equipment for the
five Stena Line ferries that plug into the
Gothenburg port, enabling the company to
cut down fuel costs by around 50 per cent,”
says strategic marketing manager, Lorene
Grandidier.
Given the extent of industry changes and
the level of adaption required to meet new
obligations, it seems there remains plenty of
opportunity for ports wishing to maximise
their marketability or capitalise on emerging
regulatory demands. C&F
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