Carnival in talks to build new Miami terminal

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FORT LAUDERDALE — PortMiami is in talks with Carnival Cruise Line to build a new terminal that would serve a ship with capacity of up to 6,000 passengers, a port official said.

The terminal would be the eighth and probably last terminal at the busiest cruise port in the world.

PortMiami has six terminals now, and Royal Caribbean Cruises Ltd. has just broken ground on a seventh that is scheduled to be finished by November 2018.

The new terminal for Carnival would be built directly east of the RCCL terminal, on ground now used for cargo operations.

“We’re in discussions with Carnival Cruise Line at present to build what may be the last terminal at the port for a ship that could carry up to 6,000 passengers, said Kevin Lynskey, deputy director of PortMiami.

Lynskey spoke as part of a panel discussion at the Seatrade Cruise Global convention.

The $200 million RCCL terminal is being built and financed by RCCL under an arrangement that is essentially a land lease for the port, Lynskey said. The Carnival terminal may be financed the same way, he said.

PortMiami projects that it will exceed 6 million passenger movements by 2018-19 fiscal year, the first full year of operation for the 170,000-square-foot RCCL terminal, to be called the Crown of Miami.

Both RCCL and Carnival Corp., the parent of Carnival Cruise Line, have their global headquarters in Miami.

Cunard and a compelling story of immigration

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The Three Queen’s in Liverpool.
Cunard Line has put together a new video of Micky Arison talking about how Carnival Corp. came to own the storied brand, and it’s worth seeing if you can get the opportunity. Among other things, it sheds some light on the immigration issue that is prominent in the current political debate.

The video begins with Arison reminiscing about coming to the U.S. on Cunard’s Mauritania. It was 1954. Arison’s father, Ted, who founded Carnival, moved the family from Israel to New York where he thought there would be better business opportunities. Micky, who was 5, recalls going to school in New Jersey and being driven along the West Side Highway past the trans-Atlantic liners at the pier.

Little did he imagine at the time, Arison said, that he would grow up to play an important role in the cruise industry.

Arison said he got the idea for a liner like the Queen Mary 2 after seeing the film “Titanic,” with the nostalgic, romantic gloss it put on the ill-fated ship. The 1997 film was the first film to gross more than $1 billion.

In 1998, Carnival bought 68% of Cunard for $425 million, buying the rest later.

Arison said it is often misunderstood that Carnival conceived of the Queen Mary 2 after deciding to buy Cunard. The reality is (one of Arison’s favorite phrases) that Carnival conceived of the ship first and only bought Cunard because It needed the historic brand to make the concept work.

Ted Arison came to the U.S. via Cunard when immigration was at a low ebb. It had been 30 years since the restrictive Immigration Act of 1924 had been passed “to preserve the ideal of American homogeneity,” according to a State Department history. It would be another 10 before the law was liberalized by Congress after President Kennedy’s death.

America was as homogeneous as it would ever be in 1954. Yet it still had room for Ted Arison, born in Tel Aviv when it was part of British Palestine. That’s to America’s credit.

Open immigration is a blunt instrument. Some immigrants may turn out to be criminals. Most are ordinary like the rest of us. But some, perhaps a disproportionate number, are extraordinary, like Ted Arison. Is there any doubt that the U.S. economy is better off with Carnival Corp. headquartered in Miami instead of Tel Aviv?

Josh Leibowitz, senior vice president of Cunard North America, said the Arison video wasn’t created with the idea it would be widely distributed. But if there’s a Cunard sales event in your town, it will probably be shown. If you make time to see it you won’t be sorry.

Wärtsilä and Carnival Ink 12-Year, $1 Billion Partnership Agreement

Carnival Dream

Carnival Corporation, the world’s largest cruise company, has signed a 12-year agreement with Finnish engine manufacturer Wärtsilä valued at nearly $1 billion and covering all engine maintenance and monitoring work for 79 of Carnival Corp.’s vessels.

The two companies said the agreement builds on their existing partnership and is aimed at maintaining the highest possible levels for cruise ship safety and reliability. The agreement is performance-based and provides for shared financial incentives and exposure based on outcomes for both companies.

“Our agreement with Wärtsilä extends our cooperation to a strategic partnership,” said Bill Burke, Chief Maritime Officer for Carnival Corporation. “With Wärtsilä maintaining vessels under our agreement and ensuring a high level of safety and reliability, we can concentrate on our core priority – providing great cruise vacations for our more than 11 million annual guests. In addition to reducing our costs, the long-term agreement increases safety and operational efficiency – two critical advantages in the fast-growing cruise market.”

The long-term value of the agreement is said to be approximately EUR 900 million.

Wärtsilä says the expected revenues for 24 months, approximately EUR 150 million, will be included in its order book for the first quarter of 2017, with expected revenues of EUR 56 million in 2017. The contract will become effective as of April 1.

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According to the agreement, all engine maintenance and monitoring work for 79 of Carnival Corporation’s vessels will be handled by Wärtsilä, and ongoing planning will be a collaboration between both companies.

“The agreement includes Wärtsilä’s Dynamic Maintenance Planning (DMP) and Condition Based Maintenance (CBM),” Wärtsilä said in a press release. “These services are based on capturing digitalised data streams from every engine, after which this data is analysed by specialists. This allows real-time optimisation of the equipment whilst predicting operational and maintenance demands. With the DMP and CBM in place, vessel and fleet operations are optimized and engine overhaul intervals potentially extended. With approximately 400 Wärtsilä engines covered under the agreement, even the smallest improvements in vessel fuel consumption add up to significant annual savings in fleet operational costs.”

For Wärtsilä, the strategic partnership is expected to encourage increased focus on research and development, manufacturing and other functions to make its products even better and more efficient.

“We are very excited to develop our long-term partnership into a more strategic direction. Both Wärtsilä and Carnival Corporation are committed to investing significantly in this partnership as well as to develop our cooperation in the long run. We are confident that working closely together, we can improve performance in both organisations,” says Pierpaolo Barbone, President, Services & Executive Vice President, Wärtsilä Corporation.