Issue link: https://maltatoday.uberflip.com/i/664438
maltatoday, SUNDAY, 10 APRIL 2016 II Shipping MSC Cruises orders new ships from STX FRENCH shipyard STX has secured an order for up to four more ships from MSC Cruises, in a 3.6 billion- euro deal announced on Wednesday. MSC Cruises, part of privately owned shipping group MSC, has in recent years been the main customer for STX France, which is based at the Atlantic port of Saint-Nazaire. The two companies signed a letter of intent for the order at a ceremony on Wednesday at the Elysee Palace in Paris, reflecting the importance placed on the investment by French Presi- dent Francois Hollande who is strug- gling to bring down unemployment. STX France, which is 66 percent owned by South Korea's STX Corp and 33 percent by the French state, built MSC Cruises' 12 existing ships between 2003 and 2013. But the future of the shipyard that employs 2,500 workers had been uncertain before the cruise opera- tor began ordering further ships from 2014. The latest order comprises a firm order for two ships and an option for another two, and will involve MSC Cruises' largest-ever vessels, the company said. The cruise operator now has up to 11 ships on order, of which eight are due to be built by STX France, in a 9 billion-euro investment will almost double its current 12-strong fleet. "There is a huge potential in our main market, which is Europe," MSC Chief Executive Officer Gianni Onora- to said, adding that the company also wanted to expand in North America, where it currently has a relatively small part of the market, as well as tap into rising demand in China. The company's strategy is focused on attracting younger customers who have not gone on cruises before, by offering more technology and on- board entertainment, he said. Regarding security threats linked to terrorism around the Mediterranean zone, Onorato said ships could be moved quickly in response to risks, and that MSC Cruises was not cur- rently stopping in Egypt, Tunisia or Turkey. MSC Cruises is the fourth largest cruise company in the world, after Carnival Corporation, Royal Carib- bean Cruises and Norwegian Cruise Lines with a 5.2 percent share of all passengers carried in 2015. In 2015, MSC Cruises had four new ships on order from STX France and Fincantieri, with options for three more. The first two ships are due to be delivered in May 2017 (MSC Mer- aviglia) and November 2017 (MSC Seaside). Singapore gears up for annual maritime week amid industry headwinds THE Singapore maritime industry is gear- ing up for a week packed with maritime events and activities from 17-22 April, where the 11th edition of the Singapore Maritime Week (SMW) 2016 will feature events including the annual maritime lecture and a high-level offshore industry forum. This year's SMW theme, Positioning for Future Growth, came at a time when the broad shipping and offshore sectors are facing headwinds due to softening global economic growth, lingering oversupply of tonnage and depressed freight rates. Andrew Tan, chief executive of Maritime and Port Authority of Singapore (MPA), said at a SMW media briefing in Singapore on Friday that the industry needs to adjust to a 'new normal' of slowing trade growth, with consolidation being the "order of the day for those whose businesses are not diversified enough." SMW 2016, which features 31 events out of which 16 are new, has been designed to address the critical issues impacting the maritime industry. Anchoring the eventful week is the annual Singapore Maritime Lecture, going into its 10th edition. This year the keynote speaker will be Kristian Siem, chairman of Siem Industries. He will lead a panel discussion of luminaries such as Andreas Sohmen- Pao, chairman of BW Group, David Carbon, managing director of economic and currency research, DBS Bank, and Teo Siong Seng, managing director Pacific International Lines (PIL), on the morning of 18 April. The second Offshore Marine Forum, jointly organised by Seatrade and Singa- pore Maritime Foundation (SMF), is an exclusive half-day, high-level industry fo- rum happening on 19 April. Top leaders of the offshore industry will come together to share and discuss their views and outlook of the industry. MPA's Tan noted that despite the reces- sion in the offshore market, there is still a lot of interests shown by players, particu- larly on how to rationalise their business and prepare themselves for the eventual upturn. Apart from the business events, the week will also see public outreach activities such as the MPA Learning Journeys, the Amaz- ing Maritime Challenge, the OSV@Vivo, and paintings exhibition titled 'Memories of City Port Scenes'. "This year's SMW is an off-cycle year for Sea Asia. In years like this we try to give more attention on maritime outreach to the public," Tan said. Sea Asia is a biennial event which will return next year for its 6th edition on 25-27 April 2017. In a new survey data by Sea Asia in the lead up to Sea Asia 2017, results show that maritime leaders are calling on the industry to adopt new technology as a way to capitalise on opportunities and navigate today's increasingly complex environment. Other events during SMW 2016 include the Moore Stephens - BNP Paribas Singa- pore Shipping Forum 2016, an inaugural Maritime Administrators' Forum, SMI Semi- nar 2016: Smart Ships, Maritime Cyber Security Seminar, and TOC Asia 2016. Tan said: "Given the uncertain market outlook, SMW 2016 will be about sharp- ening competitiveness in the industry by addressing the economic challenges and identifying unexplored areas for growth. "By creating awareness, building interest in the sector and enhancing understanding vis-a-vis our line-up of events, we hope to foster a stronger, more cohesive maritime community that will weather the headwinds and be well-positioned for growth oppor- tunities that are inevitable when the tide turns."