MIAMI May 3, 2005 - NCL Corporation ("NCL") today announced a further new ship order with Meyer Werft, in Germany, for delivery in October 2007 to its Norwegian Cruise Line brand. The vessel, currently referred to as hull S.670, will have a capacity of 2,384 lower berths and be a sister to Norwegian Jewel, which is scheduled for delivery in August of this year. Total contract price, including Owner's Supply, is EUR 391 million (approximately $510 million at today's exchange rate).
The new order follows an order announced in December last year with the same yard for an identical ship to be delivered in February 2007, and becomes the fifth ship now in the pipeline for introduction to the NCL fleet during the next 28 months. This new order will be the 10th big new ship to join the NLC fleet since the fleet modernization began in late 1999. Once this 10th ship is delivered in 2007, over 75 percent of NCL's inventory of beds will be on ships less than eight years old.
Commenting on the order, Star Cruises chairman Tan Sri K T Lim said: "This order builds upon the tremendous commercial success of our Norwegian Star and Norwegian Dawn, and continues our strong relationship with the Meyer shipyard. Our investment in the NCL fleet modernization is now close to $4 billion since 2000, which demonstrates the commitment and confidence we have in our strategy."
Colin Veitch, NCL's President and CEO, said: "We are as pleased as can be to announce Number 10. The modernization of NCL's fleet has now gained full momentum and we are well on the way to our goal of having the youngest fleet in the industry. Following the disappointing decision recently to terminate discussions on another ship with another yard, we are very pleased now to have secured our desired second ship for 2007."
The ships now on order for delivery by 2007 are as follows:
-- Pride of America June 2005
-- Norwegian Jewel August 2005
-- Pride of Hawaii April 2006
-- S.669 February 2007
-- S.670 October 2007
They will join the five big new ships built since 1999 and already in service:
* Norwegian Sun
* Norwegian Star
* Norwegian Dawn
* Norwegian Spirit
* Pride of Aloha
Which brings up the question, how many more will NCL build?
At present deployment levels, NCL is using:
3 in Hawaii (Pride of Aloha, America, *Hawaii)
1 New York City (Dawn)
Northern Hemisphere Winter
1 in Houston (Dream)
1 in New Orleans (Sun)
1 in Miami (Jewel)
1 in Charleston (Majesty)
1 in Los Angeles (Star)
1 in South America (Crown)
1 additionally in New York City (Spirit)
11 Ships total in Winter season (Wind not scheduled after fall 2006, which is serving Hawaii this year)
Northern Hemispehre Summer
1 in Vancouver (Wind)
2 in Seattle (Star, Sun)
1 in Boston (Majesty)
2 in Europe (Jewel, Dream)
2 additionally in New York City (Spirit and Crown)
12 Ships total in Summer season.
Bermuda and South America require smaller ships than any of the newer NCL ships. Bermuda for the small entrance into St. George's harbor through the reefs, and for access to the fiords in Chile.
One new smaller ship than what's being built today should be able to handle both the Bermuda and South America cruises.
Therefore one more new large ship is required. Will that be a new build, or a rebuild of the SS United States?
By the time NCL adds two decks to the SS US, it's tonnage should reach 70,000 tons or so. Even if NCL doesn't add two decks, it's 53,300 tons and 101 and 1/2 feet beam is too large for Bermuda and Chile.
So NCL's next news announcement about building a new ship, and how big it will be, will be very interesting!