Tag Archives: Fincantieri shipyard

Cruise Giant Increases Megaship Order

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By Michelle Howard
File MSC Preziosa (Courtesy MSC Cruises)
MSC Preziosa (Courtesy MSC Cruises)

MSC Cruises has moved to increase its order of megaships from Italian shipbuilder Fincantieri to two ships, with an option for third. At a cost of AUD $3.2 billion, this investment signifies a confidence that the cruise holiday industry will only continue to strengthen.
The Italian-Swiss shipping company currently operates 12 cruise liners, running numerous different sea routes simultaneously. The two new ships, currently nicknamed Project Seaside I and Project Seaside II, from Fincantieri are larger in terms of gross tonnage than any of the company’s current liners.
Alongside these recent purchases, MSC Cruises also has two even larger ships in production by STX Europe at the moment.
MSC Cruises chief executive officer Gianni Ornato said that the orders fitted into MSC’s fleet development plan: “Today, MSC Cruises adds the last piece to its new industrial plan that will allow us to double the capacity of our fleet by 2022,” he enthused. “With the arrival of the new ships we will reach a capacity of about 80,000 passengers a day.”
Cruise1st reports that Project Seaside I and II are scheduled to make their maiden voyages in November 2017 and May 2018 respectively. Like all MSC liners, the two megaships will sail under the Panama flag.
ImageBoth of the ships will utilise cutting edge design, architecture and technology, affording the ship unusually large amounts of deck space for the passengers to enjoy. Additionally, a unique sea-level promenade will be incorporated, utilising cantilever technology and featuring a large theatre, terraced balcony and panoramic views from an external passenger lift to the upper deck.
UK and Ireland Managing Director, Giles Hawke, explained: “The idea is to bring passengers closer to sea level so they feel as if they are at the beach.”
Other technologically advanced features include glass deflectors and tunnel technology that will give diners indoors the experience of dining al fresco. This has been implemented to take advantage of the warm weather routes that are being targeted by MSC for the two new liners.
Weighing in at 154,000 tonnes each, the 323 metre-long ships will be able to cater for up to 5,300 passengers in 2,070 cabins. The two ships represent a giant leap forward for MSC Cruises in terms of project size and technological ambition.
MSC Cruises executive chairman Pierfranscesco Vago said, “From the moment we started talking with Fincantieri, we had in mind to design and build two completely new ships, revolutionary in their structure, unlike anything that exists on the market today.”
“Seaside is a futuristic prototype because of its structure, shape and versatility. We are getting ready for the new and compelling challenge that the construction of these ships represents. It will be a real revolution in the world’s cruise market, an excellent product for its unique and innovative architectural features and cutting-edge technology.”

Carnival CEO downplays MSC growth but sees pricing risk

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Donald - Impact of MSC newbuilds depends on how they're positionedDonald – Impact of MSC newbuilds depends on how they’re positioned

Addressing how the big MSC newbuilds may reshape the competitive climate, given they are headed to ‘the most sought-after warm weather destinations in the Mediterranean, South America and Caribbean,’ Carnival chief Arnold Donald first downplayed the impact then conceded there may be risk for pricing.

‘It’s four ships. We have 102. In the scheme of things, you’re looking at a tiny percent impact, depending how they’re positioned in the market,’ the Carnival Corp. & plc CEO said Thursday, shortly after MSC’s orderbook went from two to four big ships, all above 150,000gt.

MSC ordered today at Carnival’s traditional builder of choice—Fincantieri—and broke the news just as Donald headed into the second informal media call of his tenure as CEO.

After his initial remarks, Donald was pressed on the potential impact to the Caribbean business of large capacity increases. And how can pricing go up for Carnival if it constrains capacity growth but competitors don’t?

Cruising’s major players have reported lower net yields in the industry’s most important region this year. Recently Norwegian Cruise Line CEO Kevin Sheehan singled out MSC Divinaas a big factor in the softer Caribbean rates.

The Caribbean issues weren’t due to one new ship, Donald told reporters, adding: ‘It was a 20% increase in a market that’s highly saturated anyway’ and coming during a period of recovery from incidents.

Yet Donald allowed there is the ‘risk of a psychological impact’ on customers. If they see very low pricing they may think ‘cruises only cost so much and I’m not going to pay more.’

Also, the Carnival chief said MSC, or any single brand that adds new ships, risks ‘cannibalizing’ its existing vessels.

‘On a positive note,’ he added, ‘I’m sure they will be nice ships’ and newbuilds create ‘energy and excitement.’

As for Carnival’s strategy to raise pricing, the company is looking at best practices of all the brands for ways to push up on-board and ticket revenue. Given its scale, if Carnival can do so by even a small amount, ‘we will generate extraordinary returns,’ Donald said.

At the same time the company will leverage its scale to cut costs. As an example, Carnival is the fifth largest purchaser of airline travel in the world yet ‘we never behaved like that. We behaved like 10 brands.’

The greater focus, though, is on revenue. ‘Best practices across brands will lift us a dollar, 2 dollars or 3 dollars. An extra few dollars on cruise tickets means a lot with 78m cruise days,’ Donald said.

These efforts are needed to get back to double-digit returns, ‘where we should be.’

MSC Cruises signs contract for two ‘revolutionary’ ships

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By Juliet Dennis MSC Cruises signs contract for two 'revolutionary' ships

MSC Cruises is to build two “revolutionary” cruise ships for 2017 and 2018, and has an option for a further ship.

The cruise line today signed a contract worth up to €2.1 billion with Italian shipyard Fincantieri for the new prototype project, codenamed ‘Seaside’.

They will be the largest cruise ships ever built by the shipyard and feature a “revolutionary architectural style” which MSC believes will lead the way for the next generation of cruise ships.

Features include a sea-level promenade that circumnavigates the ship with outdoor spaces, shops and restaurants, a spacious theatre, terraced balcony and panoramic lifts with sea views.

The two new ships will cost €700 million each, with the first scheduled for delivery in November 2017 and the second in May 2018, with an option for one more ship.

The deal follows MSC Cruises’ letter of intent with STX France, signed in March this year. It will allow the cruise line to double the capacity of its fleet to around 80,000 passengers a day by 2022. The line currently has 12 ships.

The ships will be 323 metres long, 41 metres wide and 70 metres in height, with a gross tonnage of 154,000 tons and accommodating 5,300 passengers plus 1,413 crew. The ships will also reduce fuel consumption by 25%.

They will boast 2,070 passenger cabins and 43,500 square metres of public space. According to the cruise line, it will be able to dock at any port worldwide thanks to its design and versatility. Construction will be funded with the support of insurance and financial company SACE.

MSC Cruises executive chairman Pierfranscesco Vago said: “From the moment we started talking with Fincantieri, we had in mind to design and build two completely new ships, revolutionary in their structure, unlike anything that exists on the market today.

“Seaside is a futuristic prototype because of its structure, shape and versatility. We are getting ready for the new and compelling challenge that the construction of these ships represents. It will be a real revolution in the world’s cruise market, an excellent product for its unique and innovative architectural features and cutting-edge technology.”