Corsica Ferries went shopping in the Baltic, again

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  • Corsica Ferries agreed to buy AMORELLA from Viking Line.
  • Ship to be delivered in October 2022.
  • Sales price EUR 19,1 million
  • Book value as of 30 June 2022 was EUR 3.2 million
  • Crew to be offered work on Viking Line’s other vessels
  • Viking Line says it is not abandoning the Helsinki – Stockholm route, but it will continue the traffic with one ship during the winter and evaluate strategic alternatives for the continuation of the route

SAAREMAA 1 on the way to replace fire-damaged HOLIDAY ISLAND

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A replacement ferry for HOLIDAY ISLAND could carry passengers between Prince Edward Island and Nova Scotia by mid-August. HOLIDAY ISLAND suffered an engine room fire in July (see video).

SAAREMAA 1 left Trois-Rivières, Quebec, and will be tested in Caribou, Nova Scotia, Northumberland Ferries Ltd said. in a press release.

The evaluation is expected to take up to 10 days. If “everything fits,” it should arrive at Wood Islands shortly thereafter, PEI MP Lawrence MacAulay said.

CapMan Infra exits its stake in Norled to CBRE Investment Management

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CapMan Infra and CBRE Investment Management (CBRE IM), which each acquired a 50% stake in Norled AS in 2019, have now entered into an agreement for CBRE IM to acquire the entire stake managed by CapMan.

The exit is the first from the CapMan Nordic Infrastructure I fund.

CBRE IM is making the investment on behalf of a fund it sponsors as well as some of its separately managed accounts.

Norled’s current management team, led by CEO Heidi Wolden, will continue to run the day-to-day operations.

Voyager IP delivers always-on Xiplink solution to Irish Ferries

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Following a successful trial,  the Xiplink™ solution is now being used on two Irish Ferries vessels, W.B. YEATS and ULYSSES.

From the user perspective, the biggest benefit of the new Xiplink™ service is the substantially improved quality of experience enjoyed when accessing the internet.

From the perspective of Irish Ferries, it also offers QoS data management, thus affording the most important connections the highest priority throughout.

Brian Short, Information Security Manager at Irish Continental Group, said “Managing the bandwidth demands of multiple data and voice services has been a challenge. The traffic management and bandwidth optimisation features offered by Xiplink have been instrumental in enhancing the onboard experience for our customers, while also protecting revenue-generating services.  Our partnerships with Voyager IP and Telenor have been vital to the success of this project, and we look forward to working with them to further develop our use of Xiplink.”

GLEN SANNOX on the move

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  • GLEN SANNOX has returned to Port Glasgow from a brief but essential stay at dry dock in Greenock.
  • The vessel – one of two dual-fuel ferries being built at Ferguson Marine (Port Glasgow) – has spent three weeks at Dales Marine for essential works on its propulsion systems, seals and bow doors. She was also given a fresh coat of paint. The dry dock period is a normal and scheduled part of the build programme.
  • Delivery is between March and May 2023.
  • Sister vessel, Hull 802 is expected to be delivered between October and December 2023.

Polferries: Gdansk and/or Gdynia?

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In an interview, Andrzej Madejski, president of Polska Żegluga Bałtycka (Polferries), said the following:

  • A serious economic effect of the war in Ukraine is the increase in fuel costs, which has a strong impact on Polferries. The company increased the fares, but it still does not cover the total bunker
  • Since January last year, fuel prices have increased by 100%, while the company’s budget assumed a 20-30% increase.
  • Hesitation about the move from Gdańsk to the new ferry terminal at the Port of Gdynia, as announced last year.
  • Moving to Gdynia could happen in autumn 2022.
  • Desire to keep Gdańsk too. Because Polferries is the only operator there and because of the easy connection with the motorway.
  • Advanced talks to charter a new ship
  • Design works are also underway on the ferry, which will be built for Polferries by the Remontowa shipyard under a contract signed with Sedina 2 – a subsidiary of Polskie Promów.

XRTC report 2022 for the Hellenic Coastal Shipping (summary)

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Optimistic is the outcome for the Hellenic Coastal Shipping according to the recent XRTC 21st annual ferry report 2022 which was published under the title: “Hellenic Coastal Shipping 2022: In a new Cycle of Development and Opportunities”.

The main points of the report are the following:

  • The Hellenic Coastal Shipping today faces a series of problems and challenges that have not been seen in recent decades (effects of the pandemic, catastrophic drop in transport demand in 2020 and 2021, extremely high fuel costs, difficulty of new investment schemes and financial organizations to enter the market).
  • The biggest weakness of the ferry market in the last 14 years, especially since the start of the Greek debt crisis, is the lack of business models that will bring new capital to a market that has to be profitable to justify new investments.
  • A positive mark in the market, is the introduction of the three newbuilding Aero high-speed crafts of the Attica Group (HSW), which may also can be seen as a signal of the start of a fleet renewal.
  • For the summer season 2022, 100 ferries are active and serve daily 115 islands
  • In total, the three largest ferry companies in Greece operate 43 ships and carry 5,776,000 passengers, 1,215,000 cars and 585,000 trucks.
  • Attica Group operates 30 ships, transports 4.4 million passengers, 870,000 cars and 370,000 trucks.
  • Minoan Lines operates 4 ships and transports 724,000 passengers, 162,000 cars and 82,000 trucks.
  • ANEK LINES operates 9 ships and transports 652,000 passengers, 183,000 cars and 133,000 trucks.
  • The medium size ferry operators are three. SEAJETS (20 high-speed crafts – 4 conventional ferries), FAST FERRIES (3 conventional ferries plus 1 high-speed craft) and LEVANTE FERRIES (4 conventional ferries plus 2 under conversion).
  • The small ferry operators are 22 and operate in total 21 ships.
  • The total debt obligations of the two larger ferry groups of the Hellenic Coastal Shipping (Attica Group and ANEK LINES) are increased by 9% (EUR 742 million in 2021 from EUR 683 million in 2020). The third major player, Minoan Lines (Grimaldi Group), has zero bank borrowing after paying off its bond in full.
  • The major challenge for the Hellenic Coastal Shipping is the fleet age. The Hellenic Coastal fleet operates 43 ships with an average age the 23 years, which steadily rises
  • Around 70% of the fleet is over 20 years old, which means that the needs of fleet renewal are imperative for all sizes of ships.
  • Passenger and vehicle traffic in 2021 was increased by 47% and 37% respectively compared to 2020.
  • Despite the large increase in the traffic in the years 2021 and 2022 compared to the disastrous 2020, the financial results of the companies were not and will not be satisfactory mainly due to the excessively increased fuel costs
  • The negative financial results of the sector question the viability of several ferry companies, but also create a negative environment for mergers and acquisitions without significant losses for shareholders and investors
  • The analysis of all the signs of the market, including the Strengths and Weaknesses but also the Opportunities and Threats, certify that the Greek Coastal Shipping is now at the beginning of a new cycle of development and opportunities within a transparent environment and with respect to the institutions and the international financial rules.