Could LNG controls spell trouble ahead for Aida Cruises?

AidaPrima refueling in Hamburg

Aida Cruises faces LNG challenges due to local restrictions and regulations. Its LNG-fuelled AidaPrima cannot receive this fuel at Rotterdam port, while the LNG-power supply barge used by AidaSol for cold ironing is battling bureaucracy in Hamburg.

First LNG dual-fuel cruise ship AidaPrima can use LNG in all its ports of call except for Rotterdam, where it is still awaiting approval from regulatory authorities.

Carnival (Aida Cruises’ parent company) senior vice president for maritime affairs Tom Strang, told PST at a small press gathering after a recent Cruise Lines International Association regulatory briefing: “That is a little bit more challenging, mainly because Rotterdam has a different set of regulatory requirements, as the port is right in the centre of the city.”

However, he seemed optimistic that this obstacle would soon be overcome, and pointed out that while there were a number of steps to go through to reach approval, Carnival has “a great relationship” with the Port of Rotterdam.

But challenges are also afoot in Hamburg. AidaSol is supplied with electricity when in port from an LNG power supply: Becker Marine Systems (BMS) offers electric power generated using LNG-fuelled diesel engines mounted on an unpowered barge at Hamburg’s HafenCity cruise terminal. AidaPrima is also equipped for this cold ironing.

BMS’ barge Hummel has been contributing to improved air quality in Hamburg for more than a year, BMS managing director Dirk Lehmann said in a statement.

But he said: “Due to some restrictions making the work more difficult, we are continuing to seek a mutual solution together with the relevant authorities.”

Mr Lehmann told PST’s sister publication LNG World Shipping that the most severe restrictions are due to the conditions set out in the barge’s operating permit, notably “the condition to have an expensive harbour tug with running engines on standby during energy supply for cruise ships, and the condition to move the barge back to a night-time berth outside the Hafencity area after every energy supply operation”. This last also requires tug operations.

BMS is negotiating with the authorities to try to improve this situation and Mr Lehmann’s statement showed a very clear warning and emphasised just how crucial these talks were: “This would then enable Hummel to supply environmentally friendly power to cruise ships during their layovers at port beyond the current year.”

These teething difficulties will no doubt get solved – but the cruise sector will be watching with interest as Carnival and its company Aida Cruises pioneer the use of LNG both as a fuel and for cold ironing.

MSC Cruises Plans to Build World’s Largest LNG-Powered Cruise Ships for $4.5 Billion

Laurent Castaing (R), President of French shipyard STX France, shakes hands with Mediterranean Shipping Company (MSC) Chairman Gianluigi Aponte (L) as French President Francois Hollande (C) looks on after signing a letter of intention for the order of four more ships from STX France in a 3.6 billion euro ($4.1 billion) investment, during a ceremony at the Elysee Palace in Paris, France, April 6, 2016. REUTERS/Charles Platiau
Laurent Castaing (R), President of French shipyard STX France, shakes hands with Mediterranean Shipping Company (MSC) Chairman Gianluigi Aponte (L) as French President Francois Hollande (C) looks on after signing a letter of intention for the order of four more ships from STX France, April 6, 2016. REUTERS/Charles Platiau

Swiss-based MSC Cruises has revealed major plans to build up to four new LNG-powered cruise ships exceeding more than 200,000 gross tons.

The announcement was made as the company, the largest privately-owned cruise line in the world, signed a letter of intent (LOI) for the construction of the ships with STX France at the company’s shipyard in Saint-Nazaire, France.

The four ships provided under the LOI include two firm orders and two options with delivery planned in 2022, 2024, 2025 and 2026. MSC Cruises confirmed that the new order would represent a nearly $4.5 billion investment, which would bring the company’s 10-year investment plan to an “unprecedented” $10.2 billion and eleven next-generation newbuilds by 2026.

The vessel’s, to be known as the “World Class”, will be based on a new next-generation LNG-powered prototype featuring a GRT in excess of 200,000 tonnes, more than 2,700 staterooms and approximately 5,400 lower berths occupancy, making them the biggest LNG-powered cruise ships planned to date and the most environmentally friendly.

A ceremony for the signing of the letter of intent was held at the Élysée Palace in France and attended by French President Francois Hollande François Hollande, as well as MSC Group’s Founder and Executive Chairman, Gianluigi Aponte, and STX France’s CEO Laurent Castaing.

“Today’s announcement is further proof, if needed, of our view that this industry presents significant opportunities for additional growth going forward for both our brand and product, as well as of our firm commitment to be best-positioned to capture them to the fullest,” said Pierfrancesco Vago, MSC Cruises Executive Chairman. “For this reason, our ten-plus year investment plan now encompasses up to eleven new MSC Cruises ships, coming into service between 2017 and 2026. It is also a reflection of our constant commitment to innovation, as we will partner with STX France to design yet again a completely new prototype – already the sixth in our history.”

Including the four ships announced Wednesday, a total of 20 ships will have been designed and built by STX France in Saint-Nazaire for MSC Cruises.

MSC Splendida (Fantasia Class)

“We have just signed an unprecedented agreement with MSC Cruises which will give us a vision of our industrial capacity for the next ten years! We have had a good relationship with MSC Cruises for many years now, and this new agreement strengthens this further,” commented Laurent Castaing, STX Frances Chief Executive Officer. “We have already designed four different classes for MSC Cruises – Lirica, Musica, Fantasia and Meraviglia – each with four ships, and now we are working together on this new generation of “World Class” ships.”

MSC Cruises informs that in addition to the four ships just ordered, its current investment plan includes orders with STX France for two Meraviglia and two further Meraviglia-Plus Class ships as well as orders with Fincantieri in Italy for up to three next-generation Seaside Class ships. The plan also includes the $227 million Renaissance Program, in which four ships out of 12 of the company’s fleet were enhanced and enlarged at the Fincantieri shipyards.

MSC Cruises’ announcement follows some big cruise industry news over the weekend as Carnival Corp. finalized its contracts with Italian shipbuilder Fincantieri to build five new cruise ships costing more than $3.4 billion. Delivery of those ships are scheduled for 2019 and 2020.

In June 2015, Carnival became the first to order ocean-going cruise ships powered by liquefied natural gas, the world’s cleanest fossil fuel, with its order for four ships. Those ships will be built by Meyer Werft and split between their yards in Papenburg, Germany and Turku, Finland. Carnival Corporation, the world’s largest cruise company, currently has a total of 16 new ships scheduled to be delivered across several of its portfolio of brands between 2016 and 2020.