05 December 2019 Cruise Business 2019 Karen Obeck
Seaspan Shipyards Cruise Ship Business Seaspan Shipyards Victoria Vancouver Vancouver Shipyards Shipyards Drydock • Victoria Shipyards & Vancouver Drydock are supporting the Cruise Ship Business Both yards have a proven track record of superior on-time delivery of cruise vessel repair contracts • Victoria Shipyards capabilities: • – Graving dock, length 1100 ft. and width 128 ft. • Vancouver Drydock capabilities: Floating dock (Panamax), length 660 ft. and width 150 ft. – – Floating dock (Careen), length 440 ft. and width 110 ft. • Seaspan Shipyards has executed over 50 cruise vessel contracts in the last 20 years Seaspan Shipyards can provide technical and engineering services to support cruise vessel projects • Ideally located shipyards because very often cruises are ending in Seattle or Vancouver • • Competition on the West Coast of Americas is in Seattle and Portland (Vigor Industries) • The Canadian Dollar conversion rate is attractive with regards to the competition (USD vs. CAD) Vancouver Drydock | Teamwork Builds Ships 1
Cruise Ship Business Vancouver Drydock 2019 3 Cruise ships repaired in Drydock in 2019 • Silver Explorer (emergency docking) for Silversea Cruises • MS Regatta (planned docking) for Norwegian Cruise Lines • MS Roald Amundsen (emergency docking) for Hurtigruten 2 Cruise ships repaired at Canada Place in 2019 • Le Soleal for PONANT France • Silver Muse for Silversea Cruises Vancouver Drydock | Teamwork Builds Ships 2
The MS Regatta Project September 2019 Arrived September 6, 2019 • Departed from yard September 22, 2019 • • Remodelled 385 state rooms • Remodeled all restaurants and other common spaces • New laundry machines • Completely new coating system on the hull New propulsion units • Stabilizer maintenance • Additional mechanical work • $10 Million CAD direct and indirect benefits to the economy. Vancouver Drydock | Teamwork Builds Ships 3
The MS Regatta Project Quick Figures • Nearly 3,000 employed • 2689 Crane Lifts • 334 Waste bins out 375 20 ft. sea containers unloaded on board • 900 Mattresses replaced • • 385 Staterooms refurbished • Local companies supporting this project: Waste Control Services in Coquitlam o Richmond Steel in Richmond o Terrapure in North Vancouver o Petrokleen in North Vancouver o Vancouver Drydock | Teamwork Builds Ships 4
The MS Regatta Project About the Floatel • Floatel vessel called the Grand Classica The home port is West Palm Beach, FL • • Owned by Bahamas Paradise Cruise Line • Specially chartered by Norwegian Cruise Lines for this refit project Coastal Trade Act approval obtained • • Grand Classica can accommodate 1800 passengers • Full meal service Required for logistical reasons • Vancouver Drydock | Teamwork Builds Ships 5
Why a floatel was used for the MS Regatta refit project? Vancouver Shipyards was awarded this project in July 2019, which is shorter • notice than is typically received on similar projects Project required accommodation for around 1800 people • A minimum of 1000 hotel rooms were required (double occupation) • Limited availability of hotel accommodations on the North Shore and on the • lower mainland, more broadly • In parallel, 3 conferences were underway in Vancouver in September 2019 A local company was used to obtain Coasting Trade License (J.B. Ellis) • Two weeks objection notice was implemented and no objections were received • Close connection with Transport Canada Marine & Security Department • Final Coasting Trade License was received on September 5 2019 • Vancouver Drydock | Teamwork Builds Ships 6
Cruise Ship Business Vancouver Drydock Future Outlook • Over 100 cruise vessels are on order globally An increased number of cruise vessels will visit Vancouver in 2020 • Cruise season 2020 begins in April • Expedition cruise vessels are gaining in popularity • Vancouver is ideally situated as a repair and refit location to meet the requirements of the cruise ship • industry • Cruise companies are in need of local service providers • The cruise business is an important growth area for Seaspan Shipyards Vancouver Drydock | Teamwork Builds Ships 7
Questions? Vancouver Drydock | Teamwork Builds Ships 8
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