|
Viking River Cruises Chairman Tor Hagen is
following through on his plans to start operating on the Mississippi River,
revealing plans to base six river ships in New Orleans starting in late 2017 for
his first voyages in North America.
Louisiana Gov. Bobby Jindal and Hagen announced that Viking will build the
vessels in U.S. shipyards at an estimated cost of $90 million to $100 million
per vessel, which will be staffed by U.S. citizens.
The new Mississippi River operation will launch in late 2017 with two boats
deployed per year for a total of six new boats in the first three years.
They will operate on the Mississippi River from New Orleans to stops in St.
James, East Baton Rouge and West Feliciana parishes in Louisiana, continuing
upriver to Memphis, St. Louis or St. Paul, Minn., depending on the season. The
riverboats will accommodate up to 300 passengers.
Viking River Cruises is a major player on the rivers of Europe, adding as many
as 18 new vessels there at once, as it did in 2014, for a total of 60 ships this
year. Viking also is starting up a new ocean-going operation this year and plans
to christen its first ship, the 930-passenger Viking Star, on May 17.
Viking’s move puts it in direct competition with American Cruise Lines and
American Queen Steamboat Company, both of which operate paddlewheel vessels on
the Mississippi. American Cruise Lines is adding a second vessel to the
Mississippi River, the 150-passenger American Eagle, in March in New Orleans.
Last year, Hagen said his Mississippi River ships would not be paddlewheelers,
though it isn’t clear if they would be similar to the sleek, modern
190-passenger Viking Longships that operate throughout Europe.
Viking’s river operation will be based at docking facilities near the French
Quarter in New Orleans. Louisiana Economic Development (LED) estimates Viking’s
new service will result in the creation of 416 new direct jobs for
Louisiana-based operations and vessel crews, with an average salary of $40,000,
plus benefits, as well as an additional 368 indirect jobs.
LED began discussing expansion possibilities with Viking in November 2013. To
secure the project, the State of Louisiana offered an incentive package that
includes a $4.5 million performance-based grant for site preparation at the
docking locations. The company also will work with the state’s workforce
development program, LED FastStart, which will include partnerships with the
Louisiana Workforce Commission and local educational institutions.
In January, Jindal and Hagen met at Viking’s operational headquarters in
Switzerland to discuss the new itineraries and the impact the project will have
on New Orleans and the region.
The vessels will be owned by Tennenbaum Capital Partners, a Los Angeles-based
alternative investment management firm, and time-chartered to Viking in full
compliance with maritime laws.
“We’re proud to welcome Viking River Cruises to New Orleans,” Jindal said. “This
investment will not only bring great new jobs to our state, but it will also
showcase Louisiana and the Mississippi River to the rest of the world.”
“We are excited about the prospect of bringing modern river-cruising to the
Mississippi, a river that has been traveled by explorers for centuries,” Hagen
said. “We know our passengers will enjoy the rich history, culture and cuisine
of all the great cities and towns along the Mississippi River from New Orleans
to St. Paul. Together with our U.S. partners, we take great pride in the
economic benefit that river-cruising provides to the regions our guests visit,
from the shipbuilders to the local businesses.” |
