Opportunity along America’s riverbanks

Last week’s announcement that Viking River Cruises is planning to build six new vessels for the Mississippi River signaled more than just continued growth of the river cruise industry: The move opens up additional economic opportunities for the communities along America’s most fabled inland waterways.

In Europe, the booming river cruise industry contributes about $1.1 billion in passenger revenue to Western European economies annually, according IG River Cruise, an association of river cruise lines based in Basel, Switzerland.

Imagine if the small and large towns along the Mississippi River began to see even a fraction of that contribution?

Michelle Baran
Michelle Baran

In fact, they have already been experiencing a boost. The cities on the banks of the Mississippi River System have been witnessing something of a tourism economy revival since Mississippi River cruising was resurrected in 2012 with the relaunch of the 436-passenger American Queen and the christening of American Cruise Lines’ 150-passenger Queen of the Mississippi.

For instance, when the Great American Steamboat Co. decided to make Memphis the homeport of the American Queen in 2012, the deal created 250 new jobs as well as the promise of $1.5 million in annual taxes and fees to Memphis, 10,000 filled hotel rooms each year and $90 million in annual economic impact for the city, the Memphis-based Riverfront Development Corp., which was overseeing the revival of the city’s waterfront, projected during the relaunch of the American Queen.

And Louisiana is hoping that the addition of not just one, but six new Viking vessels that will call New Orleans home will indeed give its tourism economy — which has been making significant recovery strides since Hurricane Katrina — yet another bump. Viking’s new venture is expected to result in the creation of 416 new jobs for Louisiana-based operations and crews, and an additional 368 new indirect jobs, for a total of more than 780 new jobs in southeast Louisiana, according to the Louisiana Economic Development (LED).

“Viking’s project will generate major opportunities for our citizens, boost our tourism industry, and continue to turbocharge the Port of New Orleans,” New Orleans Mayor Mitch Landrieu said in a statement.

With Viking’s plans to build six vessels on the Mississippi, starting with two in 2017, and American Cruise Lines having unveiled its own ambitious strategy to begin building a fleet of modern river cruise vessels alongside its existing and forthcoming paddlewheelers, the Mississippi is about to see a significant increase in capacity.

And according to Bruce Nierenberg, CEO of United Caribbean Lines, who served as president of former Mississippi River heavyweight the Delta Queen Steamboat Co., that could mean awesome opportunities for the smaller towns along the rivers if they work together with the river cruise lines to really develop interesting and innovating on-shore experiences and programs and highlight this country’s culture and heritage.

“I hope that Viking and the others really start to spend a lot of time developing the stories in the cities and the towns [along the Mississippi],” said Nierenberg. “There’s a tremendous amount of relationship between the birth of this country and the river. If you can really tap into that … there’s an opportunity there.”

As to whether U.S. river cruising can ultimately be as successful as European river cruising, Nierenberg said, why not?

“There are no Vienna opera houses on the Mississippi,” said Nierenberg, “but there are a lot of things that you wouldn’t find anywhere else in the world.”

Viking to Launch American River Cruises from New Orleans

ON 24 FEBRUARY 2015.

Today, Governor Bobby Jindal of Louisana and Viking Cruises Chairman Torstein Hagen announced the selection of New Orleans as the homeport for Viking River Cruises’ first North American river cruise itineraries, starting in late 2017.

The Mississippi River cruises will operate from docking facilities near the French Quarter in New Orleans. According to the Governor, Viking’s new service will result in the creation of 416 new direct jobs for Louisiana-based operations and vessel crews, with an average salary of $40,000, plus benefits; and the Louisiana Economic Development (LED) estimates the project will result in an additional 368 new indirect jobs, for a total of more than 780 new jobs in the Southeast Region of the state.

Plans call for the construction of six new vessels over the next three years at an estimated cost of $90 million to $100 million per vessel, all of which will be built in U.S. shipyards and crewed by U.S. citizens. The vessels will be owned by Tennenbaum Capital Partners, a Los Angeles-based alternative investment management firm, and time-chartered to Viking.

Viking River customers are expected to travel to New Orleans from across the U.S., Europe and beyond, and bring new business to hotels, restaurants, museums and other attractions in the city, expanding sales for local merchants. More than 90 percent of sales created by the project are expected to come from out-of-state customers.

With the launch of cruise operations on the Mississippi River in late 2017, two boats will be deployed per year, for a total of six new boats in the first three years. Cruises will take passengers on a journey along the Mississippi River from New Orleans to itinerary stops in St. James, East Baton Rouge and West Feliciana parishes; continuing upriver to Memphis, Tennessee; St. Louis; or St. Paul, Minnesota, depending on the season.

The specialty-built riverboats will have a full complement of luxury amenities and host up to 300 passengers.

Viking to Launch American River Cruises from New OrelansLED began discussing expansion possibilities with Viking in November 2013. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes a $4.5 million performance-based grant for site preparation at the company’s docking locations in Louisiana. The company also will receive the customized solutions of the nation’s No. 1 state workforce development program, LED FastStart®, which will include partnerships with the Louisiana Workforce Commission and local educational institutions.

“Having the top river cruise company homeport in New Orleans will be an outstanding chance to tell the story of the Louisiana renaissance to the world,” said President and CEO Michael Hecht of Greater New Orleans Inc. “Viking River Cruises choosing greater New Orleans is a testament not only to our culture and river, but also to our outstanding teamwork at the state, regional and local level. GNO Inc. is proud to have been an integral part of the team that met with Viking on two continents to bring them to New Orleans.”

“We are thrilled by the choice of the Port of New Orleans as Viking’s initial entry into the North American market,” said Port of New Orleans President and CEO Gary LaGrange. “Viking is one of the premier cruise brands throughout Europe and Asia. Their worldwide reputation underscores New Orleans as a destination city for both international and domestic leisure travelers. The Board of Commissioners of the Port of New Orleans has worked with the Viking team for nearly two years to determine the proper venue for the new ships within the port and along the Mississippi River, and we couldn’t be happier to add Viking to the port’s cruise portfolio.”

“Viking River is an exciting and compelling addition to the opportunity-rich New Orleans destination,” said President and CEO Stephen Perry of the New Orleans Convention and Visitors Bureau. “They will bring a diverse domestic and international clientele drawn not only to enjoyment of the river through cruising, but to the New Orleans part of their visit in this historic capital of American music and food as well.”

“It was an honor to be part of Governor Jindal’s recent economic development trip to Europe, encouraging companies to locate in our great state,” said Chairman Greg Rusovich of the Louisiana Board of International Commerce.

“The decision to locate Viking’s North American homeport in New Orleans speaks to the operational capabilities of our port, the expertise of our hospitality workforce and the increasing popularity of river cruising around the globe,” said executive board Chairman Henry Coaxum of the New Orleans Business Alliance. “We welcome Viking to the New Orleans business community and look forward to its success.”

Emerald Waterways to build fifth vessel

Emerald Waterways will construct a fifth river cruise ship, the 182-passenger Emerald Belle, for 2016.

The new vessel is currently under construction in the Netherlands with an expected launch in early 2016. Its debut will come on the heels of the 2015 launch of its 182-passenger Emerald Dawn and Emerald Sun.

Emerald Waterways is one of the newer lines to have come onto the river cruise scene, having been launched by Australian company Scenic Tours as a four-star, all-inclusive river cruise operator in 2014.

Like the four ships before it, the Emerald Belle will be part of Emerald’s Star Ships class of vessels and will be built in the same configuration as its four sister vessels, although the company stated that it is still deciding on possible new innovations and enhancements.

All of the Star Ships house 72 suites and 20 staterooms, including two cabins built for solo occupancy. Staterooms will feature a floor-to-ceiling panoramic window that with a push of a button drops down to create a French balcony.

Emerald Belle will feature a heated swimming pool with a retractable glass roof that transforms into a movie theater in the evening; and two restaurants — Reflections, the main dining room, and The Terrace for breakfast and lunch.

Emerald ships also feature an onboard hairdresser, massage therapy room and fitness area.

Emerald Waterways has not yet said where the Emerald Belle will sail.