MSC Cruises Confirms $1.7 Billion Order for New Luxury Ships
February 01 2016 - 9:40AM
Dow Jones News
LONDON—MSC Cruises on Monday confirmed its order for two further
cruise liners worth a combined €1.6 billion ($1.74 billion), as
demand in ocean cruises continues to grow.
Geneva-based MSC Cruises is part of Mediterranean Shipping Co.,
the world's second-largest shipping operator in terms of capacity
after A.P. Mø ller-Mæ rsk A/S. Mediterranean Shipping is mostly
involved in container shipping.
The two cruise ships, now slated to be delivered by April 2020,
will hit the water two years ahead of the original schedule. The
rising demand for luxury sea travel contrasts starkly with the
continued woes of the container and dry-bulk sectors, where a glut
of tonnage and rock-bottom freight rates are forcing owners to
cancel orders or lay up ships for long periods.
The Meraviglia Plus cruisers will be 331 meters (1,086 feet)
long and can each accommodate up to 6,300 passengers. They will be
built at STX France, one of France's biggest shipyards.
Closely held MSC Cruises primarily operates in the Mediterranean
and the Caribbean, pooling passengers mainly from Italy, Germany,
Spain and France.
Chief Executive Gianni Onorato said the company's sales in 2015
were up 10% on the year, with a total of 1.7 million passengers,
and expects revenue to increase by 6% this year.
The cruise industry is dominated by Miami-based giants Carnival
Corp. and Royal Caribbean Cruises Ltd.
The big players, including MSC Cruises, are investing heavily in
new markets like China, where growth is expected to be around
double the rate in other markets over the next few years.
Write to Costas Paris at costas.paris@wsj.com
(END) Dow Jones Newswires
February 01, 2016 09:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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