Assembling the Anthem

Dispatch, Meyer Werft shipyard: Assembling the Anthem

By Tom Stieghorst
Tom StieghorstTravel Weekly Cruise editor Tom Stieghorst is on a tour of the Meyer Werft shipyard where Royal Caribbean’s Quantum of the Seas, about two months from completion, is getting the finishing touches prior to its launch in November in New York. Read his dispatch here.

PAPENBURG, Germany — Imagine putting together a jigsaw puzzle five football fields long and 25 stories high.

That’s the impression generated by a trip through the assembly shed here at the Meyer Werft shipyard.

Anthem of the Seas under constructionAt the moment, the Royal Caribbean International ship Anthem of the Seas is the project that occupies most of the sprawling 450,000 square meters of enclosed space at the yard.

The complexity of the task is mind-boggling.

On a tour for media and a small group of travel agents put together by Royal Caribbean, we got to see firsthand how a ship is transformed from a pile of steel plates into a fully formed vessel.

The early stages involve cutting and welding thousands of plates together into sections, which in turn are welded together into blocks to form the ship. For each massive 30-by-30-foot section, pipes and ducts are added to the ceiling while the section sits upside down, which is easier than working overhead. The sections then are flipped over into proper position by overhead cranes.

Workers can finish about 25 sections a week, with 100 employees working three shifts a day. The process is speeded along by cuts preprogrammed into robotic lasers.

Once the sections are joined, they move into the massive block-assembly hall. Meyer Werft is the only cruise yard that builds its ship indoors. Managers believe that NASA’s space shuttle is the only vehicle built indoors that can rival a cruise ship in size.

Anthem of the Seas under constructionAbout 60 blocks go into a ship the size of the Anthem. Once the blocks are built, it is easier to see how the parts will fit together as a whole. The bow and stern are especially recognizable, as is the ship’s bridge. The ship’s name is discernable in raised letters on the side and rear.

The giant, 300-ton blocks are built wherever there’s space. Later, huge overhead traveling cranes will lift each block into its proper position to give the ship its overall structure.

Along the way, 2,090 prefabricated cabins will be trucked from a nearby factory and bolted into place.

When that is done, the basin of the assembly shed is flooded and the ship is floated outdoors for interior fitting so that work can begin indoors on the next ship. The Anthem’s sister ship Quantum of the Seas was floated out of the building two weeks ago and is being prepped for delivery in November.

In final form, each 16-deck ship will measure 1,141 feet in length and 136 feet in width. In all of its complexity, the construction of a ship such as the Anthem takes less than a year and a half. The first steel for it was cut in August 2013; the ship is expected to be ready for guests in April.

Chinese travel agency buys Celebrity Cruises ship

Chinese travel agency buys Celebrity Cruises ship

By Jerry Limone
Celebrity CenturyRoyal Caribbean Cruises Ltd. (RCCL), parent of Celebrity Cruises, has agreed to sell the Celebrity Century ship to Ctrip.com International, the largest online travel agency in China.

Ctrip is acquiring the ship through a holding company called Exquisite Marine Ltd., a subsidiary of Skyseas Holding International. Skyseas was founded by Ctrip and other investors to offer cruises to Chinese customers.

Ctrip and RCCL said that they have entered into a memorandum of understanding to form a joint venture to manage the operations of the acquired cruise ship “and potentially broaden the relationship.”

“Ctrip will capitalize on our strong brand, large customer base and superior service quality, as well as our partner’s extensive cruise operating experience, to generate great value to our customers and shareholders,” Ctrip President Min Fan said in a statement.

The 1,815-passenger Century will sail for Celebrity Cruises until April 2015. After that, the ship will be renovated, Ctrip said.

The Century’s final Celebrity cruise has been altered. A 15-night Dubai-to-Rome sailing departing April 5 is now a 14-night cruise from Dubai to Singapore.

Guests have the option to cancel and receive a full refund or take another cruise and receive an onboard credit as well as compensation to cover air change fees.

RCCL said that the sale of Celebrity Century will result in a noncash loss of approximately $20 million. The ship entered service in 1995 and is now the oldest and smallest ship in Celebrity’s fleet.

RCCL Chairman Richard Fain called the ship’s sale “an excellent business opportunity for both Royal Caribbean and Ctrip.”

RCCL aims to double earnings per share over next three years

By Tom Stieghorst
Royal Caribbean Cruises Ltd. (RCCL) set a dual goal of boosting its return on invested capital to double digits and doubling its 2014 earnings per share over the next three years.

The “Double-Double” program was announced in its second-quarter earnings report, which showed net profit soared to $137.7 million, up from $24.7 million a year earlier.

In publicly announcing its financial targets, RCCL said “articulating clear and specific goals helps guide internal decision-making as well as better informing investors of the path of the business.”

Net yields for the quarter were up 2.6%, at the top of RCCL’s guidance, driven by strong booking trends for Europe and China sailings. There was continued softness in the Caribbean.

RCCL said that because of the strong quarter, it was boosting 2014 projected profit by $22 million to a range of $755 million to $777 million.