Norwegian Cruise Line Holdings To Raise Another $500 Million

Norwegian Cruise Line Holdings announced today that it is proposing to sell $500 million aggregate principal amount of its senior notes due 2026 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).

The company expects to use the net proceeds from the offering for general corporate purposes. The Notes will be guaranteed by certain subsidiaries on a senior unsecured basis.

The company’s fourth-quarter estimated cash burn is $175 million per month.

CELEBRITY CRUISES ANNOUNCES EUROPE 2022 DEPLOYMENT

Celebrity Cruises has announced its deployment for Europe 2022, including Celebrity Apex, Edge, and the newly "revolutionized" Celebrity Silhouette sailing in the region.

Together, the six ships will visit nearly 100 destinations and offer an expanded overnight program in cities including Bordeaux, Istanbul, Jerusalem, Lisbon, Reykjavik, St Petersburg, Russia, and Venice.

 

Wi-Fi, drinks, and tips are now “Always Included” in a Celebrity cruise purchase. In addition, the line’s “Cruise with Confidence” program provides flexible cancellations and “best price guarantees”.

 

Apex, the second ship in Celebrity’s new Edge series, will sail Scandinavia and Russia and the Norwegian Fjords from the new homeport of Amsterdam. It will also offer Iceland, Ireland, and British Isles itineraries, ending the season with special Holy Land sailings roundtrip from Rome.

 

Edge meanwhile will sail from Rome and Barcelona on 7-night Mediterranean itineraries to culturally rich and romantic destinations in Italy, France, Spain, Turkey, and the Greek Islands.

 

It will end the season with some longer itineraries from Rome before returning to its homeport in Fort Lauderdale for the winter.

 

Silhouette will sail from Southampton, beginning in April 2022, to transport guests to a wide variety of popular European destinations from the Norwegian Fjords to Spain, Portugal, and the Italian Mediterranean. It will finish its Europe season in the Canary Islands in September and October.

 

Other Celebrity summer 2022 European offerings include:

 

- Celebrity Constellation sailing an array of 9- and 10-night Mediterranean itineraries between Venice, Rome, and Barcelona.

- Celebrity Infinity discovering the best of the Mediterranean on a special series of 7-night sailings between Venice, Lisbon, and Barcelona beginning in April 2022.

- And Celebrity Reflection treating guests to 10- and 11-night itineraries exploring Italy, Turkey, Croatia, Montenegro, and the Greek Islands from its new homeport of Rome.

 

The launch is supported by toolkits and guides on Celebrity Central and trade webinars hosted by sales and training teams so travel partners can become experts in all things Celebrity Cruises in Europe 2022.

CRUISE CHIEFS: 'WE'VE DONE EVERYTHING GOVERNMENT HAS ASKED US'

UK cruise chiefs believe they are working with the government on “the last pieces of the jigsaw” to enable a restart to sailings next year.

Speaking on a panel at Clia’s virtual showcase on Thursday (10 December) Royal Caribbean Group’s vice-president of government relations Stuart Leven said talks around new protocols were “pretty much done”.

 

Saga Travel chief executive Nick Stace said the sector had set a target of seeing the Foreign Office (FCDO) advice against ocean cruising “revised or removed” by the new year, adding he believed the industry had “literally done everything government has asked of us”.

 

“We’re pushing as hard as we can through all agencies of government - even right up to Number 10,” he said. “I think we’re making good progress.”

 

Stace revealed officials from the FCDO, Department for Transport and Public Health England had met with cruise sector leaders during a “summit” onboard Saga’s Spirit of Discovery in July.

 

“We literally put everything out on the table to understand what we needed to do in order to resume,” he explained, branding the FCDO advice in its current form as “a tremendous block” on bookings and being able to bring crew into the UK.

 

Leven said learning from the summer summit was: “never send anything to the government unless it’s got a pretty picture and an arrow on it. Don’t expect for one second they know everything about our industry."

 

He said the resumptions of MSC, Costa, and Tui in Europe in recent months had enabled UK lines to “talk about the actuality” of protocols.

 

“We’ve been unable to show with those 200-plus cruises that have been operating that you can offer a great guest experience but at the same time, a safe one. You can then evidence that to the UK government who aren’t cruise experts – it makes life easier for us.”

Four MSC Ships to Cruise in Europe for Winter 2021-2022

MSC Magnifica

MSC Cruises announced that four ships will be deployed for the winter season in Europe for 2021-2022.

The MSC Grandiosa will sail from. Genoa as well as Barcelona and Marseille. In addition to these homeport options, the ship will call in the Palermo, Civitavecchia for access to Rome, and Valletta, Malta.

The MSC Fantasia will also sail a classic seven-night itinerary with the choice of multiple embarkation ports in MSC Cruises’ most visited destinations, Barcelona, Marseille, and Genoa, as well as Italian cultural highlights, including La Spezia and Naples, before calling in Palma de Mallorca.

The MSC Magnifica will offer extended 11-night cruises with two different itineraries. The first starts in Genoa and then to Greece, calling Katakolon, Piraeus, and Rhodes before reaching Haifa in Israel where the ship remains overnight allowing a full day to discover ashore, then on to Heraklion, Civitavecchia and back to Genoa.

The second itinerary visits five countries – starting in Genoa, Barcelona in Spain then on to Casablanca in Morocco for an extended stay, Santa Cruz de Tenerife, Funchal in Portugal, Malaga in Spain, and then Italy with Civitavecchia and Genoa.

The MSC Poesia will offer 5- and 10-night cruises out of Genoa before embarking on the 2022 World Cruise from Genoa on 5 January.

Here Are All Of Carnival Cruise Line's Homeports For 2021

Carnival Legend

Big Thank you to https://www.cruiseindustrynews.com/ 

Carnival Cruise Line has the most U.S. homeports of any cruise brand, plus a seasonal operation in Europe and year-round cruising in Australia.

Here's a look at the company's planned homeports for 2021:

Port Canaveral

Ships:

- Carnival Breeze (March to April);

- Carnival Elation (March to December);

- Carnival Liberty (March to December);

- Carnival Magic (November and December);

- Mardi Gras (April to December).

---

Miami

Ships:

- Carnival Conquest (March to December);

- Carnival Freedom (October to December);

- Carnival Horizon (March to December);

- Carnival Sunrise (March to December).

---

Jacksonville

Ships:

- Carnival Ecstasy (March to December).

---

Tampa

Ships:

- Carnival Paradise (November and December);

- Carnival Pride (November and December).

---

Galveston

Ships:

- Carnival Breeze (May to December);

- Carnival Dream (March to December);

- Carnival Freedom (March to April);

- Carnival Vista (March to December).

---

Mobile

Ships:

- Carnival Sensation (March to December).

---

New Orleans

Ships:

- Carnival Glory (March to December);

- Carnival Valor (November and December).  

---

Baltimore

Ships:

- Carnival Legend (November and December);

- Carnival Pride (March to October).

---

Charleston

Ships:

- Carnival Sunshine (March to December).

---

San Diego

Ships:

- Carnival Miracle (March and April/October to December).

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San Francisco

Ships:

- Carnival Miracle (April to September).

---

Seattle

Ships:

- Carnival Freedom (April to September).

---

Long Beach

Ships:

- Carnival Panorama (March to December);

- Carnival Radiance (November and December).

---

Europe

Ships:

- Carnival Legend: Barcelona (May and October), Dover (June to August), and Civitavecchia (August to October).   

---

Australia

Ships:

- Carnival Spirit: Brisbane (June to December);

- Carnival Splendor: Sydney (March to December).

Queen Mary 2 Takes Center Stage in HBO Max Film Let Them All Talk

The Queen Mary 2 is among the stars of the new film  "Let Them All Talk," directed by the award-winning Steven Soderbergh, streaming on HBO Max.

As Meryl Streep's character, Alice, steps out of the taxi upon arriving at the Brooklyn Cruise Terminal, she gazes in awe at Cunard's Queen Mary 2. This is one of the opening scenes of the new film, according to a press release as Streep's character is sailing aboard the Cunard ship as a special guest of the voyage's enrichment program, Cunard Insights.

The three-time Academy Award winner Streep is joined by fellow acting royalty, two-time Academy Award winner Dianne Wiest, and five-time Emmy Award®winner Candice Bergen. Supported by Academy Award nominee Lucas Hedges and actress Gemma Chan, the film is set aboard the storied Transatlantic Crossing, amidst the backdrop of the ship.

In fact, the majority of the film was shot on board in some of the vessel's spaces: the Art Deco Commodore Club, the Queens Grill suites and dining room, the Royal Court Theatre, and the 9,000 volume library, among others. 

As the film was captured aboard a live voyage, many onboard guests had a chance to grab their moment in the spotlight when they were cast as extras in the film.

"We were absolutely delighted when Steven Soderbergh approached us to film his next feature onboard Queen Mary 2," said Simon Palethorpe, President, Cunard. "While Cunard and our flagship are accustomed to hosting luminaries from all over the globe, it was quite something to welcome Steven, Meryl, Dianne, Candice, Lucas, and Gemma for this very special and unique opportunity. We are very excited about the film, its witty and engaging story, and how lovingly Steven captured the essence of our flagship and the Transatlantic Crossing experience."

Commenting on his experience aboard Queen Mary 2, Soderbergh said: "Color me well impressed. I have never seen an enterprise on this scale of complexity run so beautifully. Every Cunard staff member we interacted with was committed to providing the best possible experience for their guests, which in this case included our cast and crew. And I can confirm without question that as stunning as Queen Mary 2 looks on camera, she's even more stunning to the naked eye."

What We Know About Royal Caribbean’s Free Test Cruises

Thanks to https://www.cruiseindustrynews.com/ 

Significant demand was born as a result of Royal Caribbean International’s announcement for the search of volunteers to go on its first test sailings prior to returning to sea in the U.S.

So much that a form has been created to sign up, which saw more than 150,000 hopeful cruise lovers leave their details.

“It's a good feeling knowing that so many people want to get back on ships,” said Vicki Freed, senior vice president for sales, trade support, and service at Royal Caribbean International, on Dec. 8 in response to the demand.

The company has also launched a website for potential volunteers to sign up.

Cruise Industry News breaks down what is known about the sailings. 

What are they?

The test sailings are part of the new Conditional Framework by the CDC, which came in place of the "No Sail" order. They will include the company having a number of trial cruises using employees and volunteers as stand-in passengers to test safety and health protocols. 

Trial sailings are said to be monitored by company officials, a third-party class society, as well as the CDC.

When will they take place?

Likely the first quarter of 2021, possibly even January. Here’s a quote from Freed at Virtually Yours forum organized by Cruise Planners:

“We don't know exactly when the test sailings are going to happen – we think in Q1, and we're hoping for January.”

Which vessels will be taking part?

Industry sources previously stated that they expect the Mariner and Navigator of the Seas, the company's recently-refurbished "short Caribbean" ships, to be the vessels pressed into service.

On what itineraries?

Freed said in November that the first cruises will be short sailings to CocoCay, which would allow the company to operate in a bubble on its own private island.

Who gets to go?

More than 150,000 people signed up, according to Royal Caribbean International, so it will be tough to choose from them. Apart from cruise line workers and CDC staff, the cruise line is likely to choose volunteers among its most loyal customers.

"We haven't figured out our protocols yet for the volunteers but certainly loyalty status will be a key selector," said Michael Bayley, Royal Caribbean Cruises’ president, and CEO during the International Cruise Summit that took place on Dec. 1-2. “Our top tier has the name of Pinnacle and they've cruised with us a gazillion times … they'll be amongst the first to receive the invitation."

Freed said on Dec. 8 that the company’s travel partners will be invited, too.

What about safety?

Royal Caribbean is working on ensuring they are conducted safely and in compliance with the regulations.

“While we review the requirements proposed by the CDC and consider when we can host our simulated trial sailings, we are gathering information from those who have shown interest on our Volunteers of the Seas Facebook page. Our priority is to ensure that we can exercise our comprehensive set of measures in a safe and healthy manner while making sure we provide a memorable vacation experience,” Royal Caribbean said in a statement.

Yet a lot of information is still to be released about the sailings.

“We will be announcing more as we get more information,” Freed said. “So, we look forward to it; we're looking forward to it.”

NCL INTRODUCES NEW FLY-CRUISE BOOKING TOOL

Norwegian Cruise Line has launched a new booking platform for fly-cruise itineraries.

The line claims NCL Air will transform the way agents make bookings of this type.

 

NCL Air offers real-time access and current pricing to flights from the UK and Ireland to departure ports around the world.

 

Agents earn “a minimum 10% commission on the entire flight package”.

The line said: “With NCL Air, agents can offer flight options from a wide variety of regional gateways and can opt for exclusive NCL-contracted fares, which give guests greater flexibility, or restricted fares at more attractive pricing that are subject to payment and cancellation restrictions. It also allows for easy upgrades to premium economy, business and first-class flights.”

Fares include checked baggage and airport and port round-trip transfers as well as a pre-cruise hotel night, can be added.

 

All cabin classes and airlines bookable through Amadeus, including British Airways, Jet2.com, Virgin Atlantic, EasyJet and KLM are available.

 

To mark NCL Air’s introduction, NCL is giving agents the opportunity to win a fly-cruise for two onboard Norwegian Epic or Norwegian Dawn. Agents will be entered into a prize draw for every fly-cruise booking they make using NCL Air before 31 December 2020.

 

As an alternative prize, NCL is offering tickets to hit musical Six, which will tour the UK in 2021.

“This new air tool is precisely what we’ve been looking for as a great addition to the tech made available to us by NCL”, said Dave Mills, vice president global supply director of Iglu.

 

“These days, more than ever, being able to offer customers both choice and reassurance that the holiday they’ve been looking forward to for so long can be tailored exactly to their requirements is a huge benefit. Agents are going to love it."

Fincantieri places US$150M propulsion order for newbuilds

Italian shipbuilder Fincantieri has placed an order with ABB worth US$150M to supply Azipod propulsion systems for five cruise ship newbuilds

Each cruise ship will be powered by twin Azipod units, bringing the total ordered propulsion power for the five newbuilds to 178 MW. Part of the order includes the largest and most powerful Azipod propulsion units ever to be installed at Fincantieri, rating at 20 MW each. The vessels will enter service between 2023 and 2026.

More than 100 cruise ships have been equipped with Azipods since their introduction three decades ago, with the first units installed at Fincantieri in the late 1990s. With the ability to rotate 360 degrees, the podded drives significantly increasing manoeuvrability and operating efficiency of a vessel and cutting fuel consumption by up to 20% compared to conventional shaftline systems, according to ABB.

ABB estimates that Azipod propulsion has saved a total of over 900,000 tonnes of fuel in the passenger cruise segment alone.

Each cruise ship newbuild at Fincantieri will also feature ABB’s integrated electric power plant setup, encompassing generators, drives, switchboards, propulsion transformers and a remote-control system to manoeuvre the Azipod units from the bridge. Combining Azipod propulsion with the electric power plant allows configuring all relevant equipment for optimised performance, resulting in increased efficiency and sustainability of operations.

These vessels will have the capability to integrate the ABB Ability Collaborative Operations infrastructure and centres for remote equipment monitoring and data analytics to enable predictive maintenance, planned interventions and remote technical support.

Norwegian Will Become Employer of Choice for Theater Performers

Rock of Ages.

The long pause in theatre operation in the West End and on Broadway may lead to a shift of the theatre hotspots to cruise ships, said Senior Vice President for Entertainment and Cruise Programs at Norwegian Cruise Line, Richard Ambrose.

“The labour market for performers and those in the entertainment – musicians, technicians – are clamouring for work. They've been unemployed for almost over a year now. And there's really no end in sight right now. Broadway is looking at late summer of 2021, the West End is trying to open… And it just doesn't happen,” Ambrose said.

“The cruise industry, and especially the Norwegian Cruise Line, is going to be the employer of choice, which is great,” he added.  

According to Ambrose, speaking recently at a virtual press conference, Norwegian has around 2,300 to 2,600 people working in the entertainment department across its 17-ship fleet, which makes the cruise line “the world’s largest regional theatre.” 

“Internally, we call ourselves the world's largest regional theatre. And it really is true. Because if you look at us and what we're doing from the Broadway, West End production series, the shows that we get prior to Broadway… If you look at Six, the musical – we had two productions on our ships before even touched Broadway, which is a huge coup. Not only for Norwegian Cruise Line but for the industry,” he said.

“It really means that the entertainment industry is taking us seriously, but they also really respect what Norwegian Cruise Line is doing.”

Norwegian Cruise Line is working on compiling its health and safety regulations to ensure that its return to cruising is safe, Ambrose said. One thing he revealed about its theatre operations when cruising resumes is that theatre guests will be sat in a “checkerboard” way.

“We only have to be a meter apart right now, so it's going to be every other seat. And we also have to have space before and after a guest. You won't have somebody sitting in front of you, you won't have somebody sitting behind you. It's like a big checkerboard if you consider it that way,” he said, adding that social distancing will also be observed between the cast and the guests.

Costa Forced to Cancel Christmas and New Years Cruises

Costa Diadema.

Costa has cancelled its holiday cruise program, citing a request from the Italian government. 

"This is a temporary stop that, as stated by the Government itself, has never questioned the reliability of the health protocols adopted in collaboration with the Italian authorities," the company said, in a press release. "Those protocols represent a unique model in the tourism sector at an international level, and have proven their full effectiveness in the last 4 months of operation in Italy."

Costa said that during the holiday period, its ships would be in various ports and it would offer a special food donation program. 

Costa also said, in a prepared statement: "The cruise suspension does not only affect the Company but the entire ecosystem that depends on cruises, such as travel agencies, shipyards, ports and local activities of destinations visited by ships the ports and local activities of the destinations visited by the ships, that the Company helped to restart in the second half of the year.

"The cancellation of Christmas and New Year's Eve cruises, among the most popular of the year, therefore represents a further economic sacrifice for Costa Cruises and the entire industry, in a period that was already very difficult for the entire sector, that relied on these operations."

Costa said it will resume service with the Costa Smeralda on January 7, 2021, with the one-week itinerary, dedicated exclusively to Italy, that can be divided into two short cruises of three and four days each, departing from Civitavecchia. The four-day mini-cruise sails to Central and Southern Italy, with stops in Naples, Messina and Cagliari. The three-day cruise voyages to Central and Northern Italy, and includes visits to Civitavecchia, La Spezia and Savona.

MSC Pausing Cruise Operations in Europe

MSC Grandiosa.

MSC Cruises today said that it will temporarily pause the operation of the MSC Grandiosa later this month per a directive from the Italian government.

MSC also said it will move the planned restart of MSC Magnifica to January as a result of new travel measures introduced by the Italian government for the Christmas and New Year period.

The new rules include extensive restrictions to people’s mobility across the entire country that will severely impact the ability of future guests - Italian residents, plus those from overseas - to reach any of the ships’ embarkation ports in Italy, the company said.

The Italian government has said it will tighten the movement of its residents between regions, cities and towns in its efforts to combat the pandemic ashore between 21 December 2020 and 6 January 2021, which will also restrict the ability of holidaymakers from abroad to travel to, through and from Italy.

This has caused the cancellation of three future planned voyages of MSC Grandiosa and three sailings of MSC Magnifica.

The MSC Grandiosa will temporarily pause her current program of seven-night voyage sailings on Dec. 20 in Genoa, Italy and will resume her Western Mediterranean cruises on Jan. 10, 2021, also from Genoa.

The MSC Magnifica, which was due to re-start 10-night voyages in the West and East Mediterranean on Dec. 18 from Genoa, will now commence its sailing programme on Jan. 15, 2021, following the cancellation of three previous sailings.

Princess Adds More Touchless Technology On Cruise Ships

As part of its Medallion Class upgrades, Princess Cruises is rolling out a number of new touchless guest experiences when its fleet returns to service in 2021.

TrulyTouchless Arrival and Embarkation

Embarkation day will leverage OceanMedallion technology to reduce friction, remove a contact, and avoid crowds, streamlining arrival and check-in, as well as completely reinventing the traditional muster drill.

OceanReady

All guests will now be required to become OceanReady before leaving home, creating a touchless, expedited arrival experience and embarkation. Guests will use the MedallionClass app to upload travel documents and complete a health questionnaire in advance as well as provide important emergency information and form of payment, take a security image, personalize their Medallions and order accessories to be shipped to their home or ready for pick up upon arrival.

Simplified Safety Training

A new approach to the safety assembly on embarkation day lets guests watch an important safety video on their mobile device anytime on embarkation day via their stateroom TV and verify their designated muster station with a quick, contactless check-in at their convenience anytime between boarding and sail away. The OceanMedallion system provides the verification needed by the ship’s captain to confirm muster drill check-in while strengthening safety and security operations onboard, safeguarding guest and crew health, and increasing operational efficiency.

Stateroom Entry

Access to staterooms is now said to be a seamless experience where each guest is securely validated as their cabin door automatically unlocks as they approach. The do-not-disturb sign also becomes a thing of the past as the feature is integrated with the personalized portal outside each cabin, allowing guests to request privacy or designate their room for service by touching the display or using the MedallionClass app.

TrulyTouchless Commerce

MedallionPay is now and eliminates the need to carry cash and credit cards onboard and in Princess Cays, the line's private island.

The system allows for "effortless" payment when purchasing anything on the ship – food, beverages, merchandise, excursions, even laundry tokens. 

OceanNow Service On-Demand

Food, beverage, retail orders and service are delivered directly to a guest’s location. 

Guests can place orders using their smart device, their stateroom TV or with a crew member, as the Medallion continuously ensures great service wherever a guest may go onboard.

Carnival Cruise Line Cancels February Sailings, More Adjustments

Carnival Vista.

Carnival Cruise Line announced today that it is informing guests and travel agents that it has cancelled select itineraries for specific operations in 2021, as it implements its plans for the resumption of cruising in 2021, including cruise operations in February from Miami, Port Canaveral and Galveston and moving the inaugural sailing of Mardi Gras until April 24, 2021.

“We apologize to our guests but we must continue to take a thoughtful, deliberate and measured approach as we map out our return to operations in 2021,” said Christine Duffy, president of Carnival Cruise Line. “Our commitment to the health and safety of our guests, crew and the communities we visit is at the forefront of our decisions and operations.”

The Mardi Gras will operate from Port Canaveral and start cruising in April; Carnival will take delivery of the ship from the Meyer Turku shipyard in Finland later this month and eventually sail to the U.S. and meet the requirements of the U.S. Centers for Disease Control & Prevention (CDC).

Carnival is also cancelling the remaining itineraries scheduled to operate from Miami, Port Canaveral and Galveston through Feb. 28.

Cruise lines will need agents “more than ever”

Cruise lines will need agents “more than ever”

Cruise lines will need agents “more than ever” as the sector emerges from the Covid-19 pandemic over the next year.

Martin Alcock, director at Travel Trade Consultancy, said that cruise “would take a bit longer to bounce back” from the crisis than other parts of the travel industry.

 

But he added there was significant growth potential as cruise still represents just a “small portion” of the overall holiday market.

 

“It’s always been a complicated product to sell and cruise lines will need agents more than ever,” said Alcock during Barclays’ Travel Industry State of the Nation online event. “There will be more commission and more in the way of overrides.”

 

Alcock said that one of the “upsides” to this year’s crisis was that it had “accelerated” the retirement of older vessels which would reduce worldwide cruise capacity by 8%-10% in 2021. Fleets will also be more efficient and sustainable as they comprise more modern ships.

 

“The 10% reduction in capacity will help from a price perspective,” he added. “There’s plenty of opportunities to grow.”

 

Alcock said that while the cruise industry’s core demographic had been “more affected” by the pandemic than other age groups, they were also likely to be “inoculated more quickly than other demographics”.

“Cruise has unfairly had a disproportionate share of bad press but I don’t think it’s terrible news. It’s not a total disaster,” he added.

 

Alistair Pritchard, travel and aviation lead partner at Deloitte, said the extra complexities created by a combination of Covid and Brexit would lead to more consumers looking to the trade for advice and support.

 

“They [agents] will need to help support customers across the whole journey – not just when booking,” he added. “They [customers] want advice just before travelling and whilst they are abroad. That’s where the consumer wants to support.”

New Royal Caribbean Ship Leaves the Building Hall

There is more construction progress on the Odyssey of the Seas as Royal Caribbean International's latest megaship left the covered building hall at Meyer Werft on Saturday.

This is a key milestone in the construction progress of the Quantum-Ultra class ship, as now the ship will be positioned at the yard's outfitting pier and most work will now turn to finishing hotel items aboard the ship.

The Odyssey of the Seas is a sister to the China-based Spectrum of the Seas and is due for delivery from Royal Caribbean this coming spring.

Fincantieri Reveals Plans for Major New Shipyard in Yucatan, Mexico

Italian shipbuilding group Fincantieri has revealed plans to manage a major new shipyard in Mexico’s Yucatan state capable of servicing some of the world’s largest cruise vessels, cargo ships and oil and gas vessels.

Fincantieri this week signed a letter of intent related to the project with the Yucatán Government offering Fincantieri a 40-year concession for the exclusive management of a new ship repair, conversion and maintenance yard at the Port of Progreso, the state’s main port located about 35km from the capital city of Merida. Fincantieri will also take part in the design and construction of the site.

The company said plans are to have two masonry dry docks, said to be “the largest in the Americas,” which will be able to hold ships up to 400 meters in length, “particularly cruise ships, large cargos and Oil & Gas vessels, which need complex operations,” Fincantieri said in a press release. The yard will also have a lifting platform for units up to 150 meters in length, about 1,000 meters docks, cranes, workshops, special equipment, offices, and warehouses, it said.

Construction is scheduled to begin in the first half of 2021 with completion by 2027 “after various steps,” the company said.

The government is expected to directly manage the initial work through a special purpose company that will handle the dredging and construction of infrastructure. “Fincantieri is to provide advice from the very beginning, to carry out the later stage, also involving other partners, building the advanced facilities, notably workshops and lifting equipment, and installing the equipment and finally starting activities,” the company said.

“Mexico exports close to 400 billion dollars of goods every year, importing around 350 billion dollars. A considerable volume of this import/export is made through shipments by sea. Not to mention, the significant cruise traffic along the coasts of the United States, in the Caribbean and in the Gulf of Mexico, where there are the renowned settlements of the Maya civilization.

“The new Progreso shipyard will be strategically placed to serve the merchant operators of this area, benefiting from the near Yucatán navigation channel, a natural outlet to the Atlantic Ocean. The Gulf is also a region with a strong concentration of Oil & Gas related operations, with offshore exploration, production and storage of oil and natural gas,” Fincantieri said.