RCI orders, yes, a 6th Oasis class ship!

[HBE4]

18 minutes ago, BillOh said:

I hope I haven't already said this in this thread, but I was writing my congressperson recently and we typing in that she was oblivious of the facts.     As I typed -" Oblivous of the......."  my phone suggested SEAS as the next word.   So the name will be Oblivious of the Seas.    Forgive me for posting that again, I forget where i mentioned it.  

 

Absentmindness of the Seas?

 

Nah, forget it. Doesn't roll off the tongue.

[Biker19]

14 minutes ago, Pratique said:

I am curious how they amortize the capital costs and how many years until a new ship generates a “profit” or revenue toward financing and operating new ships. 

If you have a couple of hours to read through financial statements, the RCI 10K filing with the SEC can provide some answers (though you won't get per ship details, not even per line (all of RCCL (RCI, X, Azmara, Silversea, etc) everything is listed together). Most loans for the ships are in the 10 year range.

Edited March 8, 2019 by Biker19

[Pratique]

35 minutes ago, Biker19 said:

If you have a couple of hours to read through financial statements, the RCI 10K filing with the SEC can provide some answers (though you won't get per ship details, not even per line (all of RCCL (RCI, X, Azmara, Silversea, etc) everything is listed together). Most loans for the ships are in the 10 year range.

Thanks. I figured it was 10 years to "break even" (not including financing costs) and I also very very very roughly figured that the capital cost could be recovered over 10 years at a rate of about $67 per passenger per day for Symphony, which doesn't sound unreasonable. But I know the calculation isn't so simple.

Edited March 8, 2019 by Pratique
Edit to add "per day"

[chengkp75]

1 hour ago, Pratique said:

I am curious how they amortize the capital costs and how many years until a new ship generates a “profit” or revenue toward financing and operating new ships. Price tags in the billions are mind boggling. Two ships may be more expensive but if the market suddenly goes south who’s going to want so many mega ships? I can’t even comprehend who would want to buy these ships when Royal is done using them.

 

23 minutes ago, Pratique said:

Thanks. I figured it was 10 years to "break even" (not including financing costs) and I also very very very roughly figured that the capital cost could be recovered over 10 years at a rate of about $67 per passenger per day for Symphony, which doesn't sound unreasonable. But I know the calculation isn't so simple.

Ships very rarely generate anything towards financing new tonnage.  Once the construction loan is paid off, the maintenance costs start to rise exponentially after 15 years, so this eats up lots of the revenue.  The "book value" of existing ships are used to obtain financing for newer ships.

[Pratique]

So I guess the joke about sailboats being money pits applies to cruise ships too lol.

[chengkp75]

3 minutes ago, Pratique said:

So I guess the joke about sailboats being money pits applies to cruise ships too lol.

It always gets me when I see comments about the "massive profits" that cruise lines make.  If you look at the real indicator of how well a company is doing, return on investment, you'll see that cruise lines are very middle of the road on ROI.  Meaning you could make a lot more money investing in other industries than ship owning.  Ship owning is a capital intensive business, and that capital gets tied up for a very long time.

[Pratique]

I suppose the leasing model that the airlines and railroads use doesn't make sense for the cruise industry. Or does it?

[John&LaLa]

2 hours ago, Pratique said:

That lifeboat capacity includes crew.

 

Crew use rafts

[chengkp75]

11 minutes ago, Pratique said:

I suppose the leasing model that the airlines and railroads use doesn't make sense for the cruise industry. Or does it?

Given the limited amount of "second hand" cruise ship market, shipyards aren't interested in "leasing" (what we call "bareboat charter").  Some shipyards do this for cargo ships and tankers, retaining ownership but chartering the vessel out to the operator for a charter fee that covers the construction cost over the life of the charter.  So,  the operator (cruise line) pays fully for the ship no matter what, but if it were chartered rather than owned, they could just walk away at the end of the charter, and the shipyard would be stuck trying to find a new buyer or operator, or paying to scrap the vessel.  Cargo vessels are different, as there is a vastly larger market, both for new and used tonnage.  Also, unlike an auto lease, a ship operator has to return the vessel to the owner in the same condition it was when it was chartered, so everything has to be repaired, and any "upgrades" added have to either be removed or okayed by the owner.  Whether or not a ship operator buys or charters tonnage depends on their need for tax incentives from depreciating the asset, or whether the shipyard wants the depreciation.

[chengkp75]

Just now, John&LaLa said:

 

Crew use rafts

Those lifeboats on Oasis class are certified for 370 persons (and the number 364 sticks in my head, but you've been on her recently), but there are 16 crew assigned to each boat, unlike the older 150 person boats where only 2-3 crew were assigned.  So, each Oasis boat can only carry 354 passengers (using the 370 capacity).

[Biker19]

4 minutes ago, John&LaLa said:

 

Crew use rafts

Like these?

 

[John&LaLa]

1 minute ago, Biker19 said:

Like these?

 

 

I was thinking of those depth charge looking things that the learn how to use in the pools

[chengkp75]

1 minute ago, Biker19 said:

Like these?

 

Some ships use these, called MES (Marine Evacuation Systems), some even use these for passengers, as these can meet the 30 minute load and launch requirement for passenger evacuation.  Many ships still use the old davit launched 35 man life raft that comes in the "depth charge" canister.  Those, the crew hook onto with a davit arm, swing it out and lower to the promenade deck, and inflate it.  Crew get into the raft at the promenade deck, and then use a handle to lower themselves to the water and release.  The crew then winch the hook back up, and repeat the process with the next raft.

[Pratique]

Chief have you ever ridden one of these? Holy evac Batman

 

[chengkp75]

1 minute ago, Pratique said:

Chief have you ever ridden one of these? Holy evac Batman

 

Yes, many ships use the free-fall boats these days, though I haven't seen one mounted on the side of a ship before.  Typically they are mounted centerline on the stern.  This removes the need for two boats, since listing doesn't affect a boat on the centerline, and therefore the requirement for 100% capacity on each side is also eliminated.  From a ship, this isn't really that much of a thrill, just about 2 seconds of "anticipation".  Everyone but the boat driver is facing backwards and strapped into their seats, the boat driver also has a head strap to keep from leaving his teeth in the gauge panel when the boat hits the water.  These were originally developed for the Norwegian offshore industry, when the rig the Alexander Keilland sank and took 123 lives, when the lifeboats could not be launched.  Those boats are designed to be dropped from about 135 feet, are stainless steel, and become a "submarine" for a couple of seconds.  If you really want to see something, google "worlds highest lifeboat drop", and you will see a boat manufacturer drop a boat from over 200 feet from a crane.

[A&L_Ont]

200 ft, and the word heat strap say it all. That being said, if it’s needed strap me and let’s light it up. 

[ssb]

In an article written by Roger Rees Director and CEO of Port of Galveston, 

he wrote in December 2018 after the signing  - " Royal Caribbean and Port of Galveston signed a Memorandum of Understanding to build a $100,000 million cruise complex at Pier 10 . This terminal will be home port to the world's largest cruise ships in 2021". 

 

Port of Galveston's Rodger Rees and Royal Caribbean International's Michael Bayley sign the MOU (Image: Port of Galveston)

 

# CT3 Terminal.pdf

[ssb]

17 minutes ago, ssb said:

In an article written by Roger Rees Director and CEO of Port of Galveston, 

he wrote in December 2018 after the signing  - " Royal Caribbean and Port of Galveston signed a Memorandum of Understanding to build a $100,000 million cruise complex at Pier 10 . This terminal will be home port to the world's largest cruise ships in 2021". 

 

Port of Galveston's Rodger Rees and Royal Caribbean International's Michael Bayley sign the MOU (Image: Port of Galveston)

 

# CT3 Terminal.pdf

 

The board of trustees at Galveston Wharves and Royal Caribbean Cruises Ltd. (Royal Caribbean) have signed a Memorandum of Understanding (MOU) to build a new cruise terminal at the Port of Galveston in Texas, US.

According to the MOU, the 200,000-square-foot terminal is expected to open in autumn 2021 and will be built on 10 acres of land in the south-east section of the port known as Pier 10. The facility will also include a staging and loading area, space for buses and taxis and a ‘substantial’ number of parking spaces for cruise guests’ vehicles. Work will also be carried out on the pier bulkhead and apron to ensure it can safely accommodate Royal Caribbean’s largest vessels.

The MOU outlines the general terms for developing and operating the terminal, which would be the third at the port. The long-term lease negotiations could lead to a 60-year transaction with Royal Caribbean: a 20-year initial term and four 10-year options.

“This new cruise terminal to be built by Royal Caribbean allows the port to continue investing in our infrastructure while growing our cruise business exponentially,” said Roger Rees, director and CEO of Port of Galveston. “This partnership will bring both larger class ships, as well as more visitors to the city of Galveston and the region. This long-term lease agreement represents Royal Caribbean’s confidence in the Port of Galveston’s efficient cruise operations and the ability to attract passengers on its current and future sailings. Galveston is on course for being a global destination for cruising and we are thankful for partners like Royal Caribbean.”

Royal Caribbean’s brand Royal Caribbean International currently homeports two ships in Galveston – Liberty of the Seas and Vision of the Seas. The port expects that the new terminal will help the cruise line bring an additional one million passengers to Galveston halfway through the term of the contract.

“Over the last 15 years, Royal Caribbean has brought over 2.4 million guests to Galveston driving an economic impact of US$65 million each year,” said Michael Bayley, president and CEO of Royal Caribbean International. “The development of a new terminal is crucial to our continued growth and expansion of the brand in the region. We look forward to continuing our outstanding relationship with the Port of Galveston and are excited about our plans for a state-of-the-art facility with a bold new design and technological advancements that will considerably enhance our guest experience.”

 

An update of progress in January and February 2019

• A Draft Ground Lease document has been received by the Port from RCCL for review.  (Remember RCCL is building the TerminalBuilding )

 

• RCCL has performed an underwater structural inspection of Pier 10 during the week of February 18th.

 

•Port engineering staff is interfacing with the City regarding permit requirements and utilities provision/ interconnection.

 

• A RFQ is currently being advertised for the performance of a topographic and property survey over the Port’s East End, from the Del Monte fence line eastward.

 

• Port engineering staff in contact with electrical utility provider to coordinate actions for the new cruise terminal project

 

 

 

Edited March 8, 2019 by ssb

[Biker19]

On 3/6/2019 at 1:31 PM, Ourusualbeach said:

Yes and was named vice chairman.  

Apparently this is what a vice chairman duties entails:

 

Adam Goldstein, CLIA global chairman and vice chairman of Royal Caribbean Cruises Ltd., told delegates at Cruise360 Australasia in Sydney on Friday that, unofficially, Australia is the world champion of cruising.

Highest global penetration rate

Goldstein referred to Australia once again leading the established cruise markets in penetration rates, with 5.8% of the population taking an ocean cruise in 2018.

He said there has been ‘amazing growth’ in the Australian market and told delegates at Cruise360 they were ahead of the game, just for being there.

At a round table meeting with media during the lunch break, he said the most compelling issue in the industry today is how to attract people who haven’t cruised.

‘Only 2% of the world’s population cruise,’ he said. ‘Increasing that number is an enormous challenge.’

Urgent need for second Sydney cruise terminal

He reiterated once again that Sydney urgently needs to build a second cruise terminal on the eastern side of the Harbour Bridge and said the most recent talks with the government about this had been ‘more positive.’

When asked if Royal Caribbean would partner in the building of a new terminal he said: ‘We have made it clear that we are eager to discuss solutions.’