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.

MSC adopts new rebating and cancellation policies

MSC Divina at her home port, Miami.

MSC Cruises has instituted new rebating and cancellation policies that take effect May 1.

No travel agencies can advertise, market or sell a cruise or cruise package at a price below MSC’s published or contracted pricing.

Agencies may continue to offer value-adds such as onboard spending credits and prepaid gratuities. The value-add cannot be cash, a gift card or other items that reduce the base price of a cruise.

Agencies that violate MSC’s rebating policies will be “subject to written warning, a reduction in the co-op support provided by MSC Cruises and other actions such as, but not limited to, a reduction in the base commission paid on all future cruises booked by that agency,” MSC said.

For all new bookings made beginning May 1 for all sailings departing in April 2017 and forward, MSC has adjusted its cancellation policy.

MSC Seaside

For cruises less than 15 nights, guests lose their nonrefundable deposit if they cancel between 89 and 61 days before departure; lose half the fare if they cancel 60 to 46 days out; lose 75% of the fare if they cancel 45 to 16 days out; and lose 100% of the fare if they cancel with 15 days or fewer before departure.

For cruises more than 15 nights, they lose their nonrefundable deposit if they cancel between 109 and 61 days before departure, half the fare for 60 to 46 days, 75% of the fare from 45 to 31 days, and 100% if they cancel 30 days out or fewer.  

Also, MSC Cruises said it will continue transfer a direct booking to a travel agent upon request of the customer when the appropriate forms are submitted by the customer to MSC Cruises. Bookings may only be transferred to an agent up until 60 days from creation if the request is made outside of final payment period and the booking is not paid in full. 

Magic mirrors on new MSC Cruises smartships show passengers how clothes will look on them in 3D

Water wonder: CGI of MSC Meraviglia – ‘marvel’ in English – which comes into service in June 2017
Three next-generation vessels get an array of hi-tech innovations including an indoor promenade with an LED roof – two newest ships also get first art museums at sea.
 
It’s the question women having been asking for years when they try on clothes – ‘does my bum look big in this?’
 
But when passengers on four new next-generation super-smartships are in the on-board outfitters, technology will come to the rescue – with 3D magic mirrors that show whether that dress really is flattering or not.
 
MSC Cruises has just commissioned two more ships for its upcoming Vista class – to be constructed at the STX France shipyard in St Nazaire, Brittany, and designated “Meraviglia-Plus” – which, like the initial two ships in the Vista project, will feature industry-leading innovations on board, thanks mainly to a tie-up with South Korean technology titans Samsung.
 
Gianni Onorato, MSC’s chief executive, said the hi-tech marvels will include interactive digital mirrors in the on-board clothes shops which will show customers (including men of course!) a 3D view of how attire will look when they wear it.
 
Cool pool: CGI of the sun deck on MSC Meraviglia
Other smart innovations also include in-cabin interactive flat screen HDTVs that link to guests’ devices, 300 digital interactive signs in public areas, Near Field Contact geolocation of children, and hi-tech medical centres that can send scans to hospitals on shore for analysis.
 
But if all that technology gets too much, there’s a device-free digital detox room with no wi-fi or mobile signal.
 
In addition to modern human ingenuity, the two new Plus ships will also feature mankind’s artistic creativity with cruising’s first ever fine art museums at sea.
 
Mr Onorato said the museums would comprise classic and contemporary masterpieces from around the world – loaned from public institutions and private collections – and it should see works from leading establishments in Italy, France and the USA put on display as the ships cruise the oceans.
 
He added MSC had been approached by museums to try putting art and museum pieces on show at sea. ”Let’s see how it works,” he said, “we need a little courage to do something like this.’
 
Show stopper: CGI view of the main theatre on MSC Meravigliva

Entertainment on board the Vista ships will be showcased by exclusive performances from Cirque du Soleil staged in purpose-built dining and entertainment venues.

The two new 1,092ft Plus ships will have some of the largest passenger capacity in the world at up to 6,300 – just a hundred or so less than Royal Caribbean’s upcoming Harmony of the Seas – but with a more modest gross tonnage of 177,100 against Harmony’s 227,000. They will debut in 2019 and 2020, two years ahead of the original construction schedule when they were yet-to-be-confirmed options.

The announcement of two more ships on the order books was made by MSC executive chairman Pierfrancesco Vago at the Brittany STX yard where the line’s first two Vista class smartships, Meraviglia and Seaside, are being built.

He said: “The two Meraviglia-Plus vessels will be even larger and longer as well as richer in features and amenities, thus confirming MSC Cruises as the industry’s boldest innovator when it comes to ship design and experiences we create for our guests.”

The 167,600 ton, up to 5,714 passenger Meraviglia – lead ship of MSC’s Vista vessels – will come into service in June next year, followed by sister ship Seaside in December, and was undergoing the traditional, centuries-old coin ceremony where shipyard workers place a coin deep in the ship’s 1,039ft hull for good luck.

Steak and ships: CGI of the steakhouse restaurant on MSC Meravigliva

Besides magic mirrors in clothes shops, her revolutionary technology will see the creation of an 317ft long indoor promenade at the heart of the ship with an arched 5,400 sq ft LED roof which can project blue skies, migrating birds, starry skies or images of destinations (there will a 366ft long version on the two bigger Plus ships).

Seating around 600 but with ample room for more passengers to stroll around, the indoor prom will have shops, cafes such as a venue from US celebrity pastry chef Jean-Philippe Maury with his signature chocolate fountains, restaurants and an English pub, karaoke bar and 24hr TV studio.

Other facilities on board will see the installation of a full size bowling alley and Formula One racing car simulators.

Outside there’s a sleek, contemporary look for the pool areas and an array of slides in a water park.

Mocked up cabins were on view at STX too and they exuded the cool chic of a modern boutique hotel.

Chic sleep: mock-up of a cabin on MSC Meravigliva at the French shipyard

Sister ship Seaside will have many of the same on-board offerings but will not feature the indoor promenade. Instead she will get a more traditional outdoor wrapround walkway much lower down than on most other modern ships so passengers are nearer the water to get the feeling of being on a quayside at sea, with shops, bars and restaurants lining the area.

She will home port in Miami year round to discover the Unesco world heritage sites of Cuba and other Caribbean hotspots. Mr Onorato said she will be “the ship that follows the sun”.

Meraviglia will be christened at Le Havre on June 1, 2017 and spend her inaugural season in the Mediterranean, home porting in Marseille.