Connected cruisers

Photo Credit: Illustration by Shutterstock/Pavel L Photo and Video

Cruise shipbuilding versus ship refurbishments

Cruise Ship Building yardUnlike the scheduled cruise ship refurbishments, major refits may include even a cruise ship lengthening, like in the case of Royal Caribbean ship Enchantment of the Seas lengthened in 2005 (see the photo below). The Enchantment ship lengthening cost ~ US$55 million, it was a process of cutting the ship in two and inserting a whole new 73 ft (22 m) 3,500 tons midsection, pre-built at the Aker Finnyards. The month-long dry-dock at the Keppel Verolme shipyards (Rotterdam, The Netherlands) resulted in adding 151 brand new cabins, a 50% bigger Pool Deck area, a new kids area, a teen center, several new bars and lounges, an expanded main dining room, a new specialty restaurant. This “refurbishment cost” record was recently beaten by the CCL line and the US$155 million Carnival Destiny refit 2013 producing a brand new ship named Carnival Sunshine!

The average cost of building a cruise ship is around US $450 for mid-sized vessels and up to $800 million for bigger cruise ships. These prices, along with the current economy status force many cruise lines to hold off from building new ships – the biggest expense of all. As a rule, all new cruise ships on order/currently under construction are by contracts signed years ago when the dollar had a good rate.

cruise ship builders and refurbishment companies (firms)Cruise ship building prices are high enough to not meet the return requirement. Even the mighty Carnival Corporation (the largest cruise company in the world) puts its ship building plans on hold. Royal Caribbean is one of the few companies continuing to place orders for new ships – and not any ships, but the ever largest, the most innovative, the most expensive in the world. Still, most passenger ship lines are trying to keep their current fleet fresh and good looking. Two of the best examples are Holland America with its $450 million SOE program for ship renovations, and Carnival investing over $250 million to fully refit and refurbish 8 of its oldest vessels.

Costa Cruises orders two 6,600-passenger LNG-powered cruise ships

In June Carnival Corporation announced it had ordered four of the largest cruise ships ever built based on maximum passenger capacity. 

Two will be heading to AIDA Cruises and now it has been revealed the remaining pair will be joining the Costa Cruises fleet.

The ships on order form part of the previously announced Memorandum of Understanding with shipbuilders Meyer Werft and Fincantieri S.p.A for nine new ships between 2019 and 2022.

The four ships on order (for AIDA Cruises and Costa Cruises) will feature a revolutionary “green design” and will be the first in the cruise industry to be powered by Liquefied Natural Gas (LNG), the world’s cleanest burning fossil fuel.

The two ships destined for Costa Cruises will be built by Meyer shipyard in Turku, Finland, with delivery expected in 2019 and 2020. Each ship will exceed 180,000 gross tons and will include more than 2,600 passenger cabins, accommodating approximately 5,200 passengers based on double occupancy with a maximum capacity of 6,600 passengers.

Michael Thamm, CEO of the Costa Group said “These ships will expand the leadership position for the Costa Group, the market leader in all the major continental European markets. The multi-billion dollar contract with Meyer mirrors our strategy to constantly innovate our vacation offers and to deliver an unmatched cruise experience to our guests.”

Neil Palomba, President of Costa Cruises  said “The two Costa ships are a real innovation for the market, setting new standards for the whole industry: they will be the first green ships powered with LNG and they will offer an extensive number of guest-friendly features. Furthermore they will be an expression of the new positioning, Italy’s finest. The order also confirms that the Costa brand will continue to grow, becoming even stronger and keep on generating a positive economic impact in the main countries where it operates, including Italy”.