Cruise shipbuilding versus ship refurbishments

Cruise Ship Building yardUnlike the scheduled cruise ship refurbishments, major refits may include even a cruise ship lengthening, like in the case of Royal Caribbean ship Enchantment of the Seas lengthened in 2005 (see the photo below). The Enchantment ship lengthening cost ~ US$55 million, it was a process of cutting the ship in two and inserting a whole new 73 ft (22 m) 3,500 tons midsection, pre-built at the Aker Finnyards. The month-long dry-dock at the Keppel Verolme shipyards (Rotterdam, The Netherlands) resulted in adding 151 brand new cabins, a 50% bigger Pool Deck area, a new kids area, a teen center, several new bars and lounges, an expanded main dining room, a new specialty restaurant. This “refurbishment cost” record was recently beaten by the CCL line and the US$155 million Carnival Destiny refit 2013 producing a brand new ship named Carnival Sunshine!

The average cost of building a cruise ship is around US $450 for mid-sized vessels and up to $800 million for bigger cruise ships. These prices, along with the current economy status force many cruise lines to hold off from building new ships – the biggest expense of all. As a rule, all new cruise ships on order/currently under construction are by contracts signed years ago when the dollar had a good rate.

cruise ship builders and refurbishment companies (firms)Cruise ship building prices are high enough to not meet the return requirement. Even the mighty Carnival Corporation (the largest cruise company in the world) puts its ship building plans on hold. Royal Caribbean is one of the few companies continuing to place orders for new ships – and not any ships, but the ever largest, the most innovative, the most expensive in the world. Still, most passenger ship lines are trying to keep their current fleet fresh and good looking. Two of the best examples are Holland America with its $450 million SOE program for ship renovations, and Carnival investing over $250 million to fully refit and refurbish 8 of its oldest vessels.

Meyer Werft deploys Dassault’s passenger ship design solutions

Meyer Werft deploys Dassault’s passenger ship design solutions

Naval architects can use the 3D Experience platform to design complex cruise ships

German shipyard Meyer Werft has started using Dassault Systèmes’ 3DExperience design and product lifecycle management (PLM) solutions to engineer and build passenger ships. It is using the On Time to Sea and Designed for Sea industry-specific software to improve the efficiency of designing and building cruise ships and ferries, and to enhance the skills of its workforce.

Meyer Werft has deployed Dassault’s programs in its new technology and development centre in Papenburg, Germany. Here the shipbuilder is pooling most of the design and development work from its 500 designers and engineers. Dassault’s software will also support additional teams in Papenburg and at sites in Rostock, Germany and in Finland that are involved in building cruise ships, river cruise ships, ferries and other vessels. The 3DExperience platform assists the complex task of designing and engineering cruise ships, which could have more than 10 million individual parts and assemblies. The complexity, diversity and large volume of data involved require efficient solutions to design and build these ships.

With the software, Meyer Werft’s design and development teams can use a unified digital environment to monitor the entire lifecycle of a ship, from its construction and operation to its decommissioning. Virtual design, engineering and project management applications help seamlessly address complex needs in product development and process requirements. “Thanks to the 3DExperience platform, we can foster collaborative creativity that fulfils the highest technical demands of passenger ship owners worldwide from hull shape, hydrodynamics and fuel consumption, to capacity and onboard comfort and entertainment,” said Meyer Werft technical director Philip Gennotte. “Today’s shipbuilding is a highly modern industry that requires a combination of ideas, knowledge and technology in order to introduce sophisticated, future-oriented touristic concepts.”

Crystal Cruises parent agrees to buy German shipyard

The parent company of Crystal Cruises has agreed to acquire leading shipyard Lloyd Werft in Bremerhaven, Germany.

Global cruise and resort company Genting Hong Kong is to pay €17.5 million for 70% of a new shipbuilding business and a 50% ownership of the shipyard’s land.

The company will complete the acquisition of Lloyd Werft subject to the fulfilment of certain final purchase conditions.

The move follows plans for massive expansion of Crystal Cruises with the introduction of Crystal Yacht Cruises in December, Crystal River Cruises and Crystal Luxury Air in 2017 and new cruise ships from late 2018.

Genting Hong Kong signed a letter of intent earlier this year with Lloyd Werft to build Crystal’s ‘Exclusive Class’ polar-class cruise ships.

Lloyd Werft will also build luxury river yachts to sail to destinations in France, Germany, Switzerland, Holland, Belgium, Austria, Slovakia, Hungary, Croatia, Serbia, Romania and Bulgaria.

Genting Hong Kong chairman and chief executive, Tan Sri Lim Kok Thay, said: “Lloyd Werft has built and lengthened six of the ships owned by an affiliate of the company and has the expertise to build a series of world class cruise ships for the company, which will include the ‘Exclusive Class’ vessels for Crystal Cruises.

“Ownership in Lloyd Werft will enable Genting Hong Kong to leverage on the shipyard’s technical expertise and their well-established and long track record in the shipbuilding industry.”

Crystal president and chief executive, Edie Rodriguez, said: “With such great anticipation for Crystal River Cruises and Crystal Exclusive Class ocean vessels, we are incredibly excited about Genting’s groundbreaking investment in the Lloyd Werft shipyard that will contribute mightily to Crystal Cruises’ expansion.”