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Windjammer Cruises may get a reprieve

Worldwide's sources advise that a private equity company is said to be poised to make a ‘significant’ investment in Windjammer Barefoot Cruises.  TAG Virgin Islands, based in St. Thomas VI, have plans to expand the troubled Miami Beach company's fleet and move into cruise areas beyond the Caribbean.

The situation as it appears to stand is that three of Windjammer’s four vessels are docked, two as a result of labor disputes which a TAG spokesman said were being resolved. Windjammer Cruises operates the tall ships Legacy, Mandalay, Yankee Clipper and Polynesia.

The family-owned company was founded in 1947 by Capt. Mike Burke. In March his son Daniel, the president of Windjammer, was found dead in a Miami hotel.

It is Worldwide's understanding that several potential investment partners have looked at the company over the past year.

With an aged fleet of sailing ships of different eras, we wonder how the overall picture will evolve particularly in view of the stringent requirements for today's passenger carrying vessels.

Falling ice from a glacier injures 17 passengers, two seriously, along with a crew member, on board Aleksey Maryshev.
UK tour operator Discover the World issued a statement confirming a total of 17 British passengers were injured, two seriously, along with a crew member, on board Aleksey Maryshev Wednesday, when ice fell from a glacier whilst the former Russian research vessel sailed off the Svalbard Islands.

Discover the World awaits a report for the ship operators ‘which we understand will follow after the ship’s captain and expedition team have been interviewed by the governor of Svalbard who is also the chief of police.’

Aleksey Maryshev, built in 1990, is chartered by polar water expedition operator Oceanwide, a Dutch company. Discover the World has sub-chartered the vessel, converted for up to 50 passengers, from Oceanwide with which it has worked for more than 20 years in polar expedition cruising.

The ship was near an ice shelf when part of the glacier ‘calved off’, said Discover the World. ‘We understand that some of the smaller pieces of ice and water were washed onto the ship’s deck and some of our passengers were injured. Seven passengers were airlifted from the ship to Longyearbyen Hospital Wednesday evening. Ten other passengers were treated in hospital for minor injuries and have returned to the ship which has now docked in Longyearbyen and will remain there.’

The majority of the passengers are due to fly back to the UK tomorrow.

Discover the World confirmed the ship’s master, Captain George Zhelenin, has been sailing in polar waters for over 10 years.

Discover the World has been in operation for more than 23 years and is a fully bonded and licensed tour operator with the Association of British Travel Agents, the Association of Independent Tour Operators and the Air Travel Organizers License.

Just in - the latest from the ship owners - news

NCL becomes new official line of the PGA Tour

NCL Corp. and the PGA Tour signed a marketing partnership naming Norwegian Cruise Line as the ‘Official Cruise Line of the PGA TOUR and Champions Tour.’ Royal Caribbean Cruises Ltd. previously had a long relationship with the PGA.

NCL’s new three-year agreement gives it the right to use the tour marks in advertising as well as promotional and tournament hospitality opportunities built around both tours. The PGA Tour and NCL will work together on promoting the line’s current Golf Hawaii and Golf Bermuda programs, and on expanding the golf experience with programs that possibly include tournaments and tour members.

The PGA Tour counts more than 105m fans with a demographic that aligns well with NCL’s target audience, said Scott Rogers, NCL’s svp sales and marketing.

Puerto Costa Maya battens down for Dean
Mexico’s Yucatán Peninsula is bracing for dangerous Hurricane Dean, which grazed Jamaica’s southern shore on Sunday and is expected to hit the Mexican coast in the early morning hours Tuesday.

Over the weekend Carnival, RCI and other lines have already diverted from their Western Caribbean paths to more easterly routes.

Hurricane Dean is a fierce Category 4 hurricane with maximum winds near 150 mph/240 km/hr with higher gusts. Forecasters said the storm could potentially reach Category 5 within 24 hours.

Dean’s westward path has shifted slightly south, good news for the Cayman Islands, Progreso and Cozumel, but putting the central part of the Yucatán and Puerto Costa Maya into graver danger.

‘We are all prepared,’ Puerto Costa Maya spokesman Cesar Lizarraga told Seatrade Insider on Monday morning from Mexico. The facilities have been secured, and workers and local residents have been evacuated south to Chetumal, the capital of Quintana Roo state.

‘The facilities will be fine because they are designed for a Category 5 hurricane so we expect no substantial damages to the pier or the facilities,’ Lizarraga said.

However, the nearby fishermen’s village of Majahual faces dangerous conditions, and Hurricane Dean will likely knock out communications to the area, including the port. Nevertheless, Lizarraga estimated cruise operations might be able to resume 48 hours after the storm.

Apollo takes $1bn stake in NCL
Apollo Management, the private equity group, is making a $1bn cash equity investment in NCL Corp. The investment, in the form of common stock alongside NCL’s existing sole shareholder, Star Cruises, is designed to strengthen NCL’s balance sheet and its continued growth.

NCL Corp. president and ceo Colin Veitch said "‘The company is not being sold. Star is retaining all its shares in NCL, To have an investment on this scale by one of the very top names in the private equity world is a huge vote of confidence in the new NCL we have created since Star Cruises became the owner in 2000".

With its $1bn investment, private equity giant Apollo Management will become a 50% owner of NCL Corp. and will name a majority of the NCL board. Star Cruises is retaining all its existing stock in NCL and will be a 50% owner of the recapitalized company.

Including future consideration for NCL America’s Hawaii business, the transaction values NCL’s enterprise at roughly $4bn. Apollo said the $1bn is readily accessible, so the deal should not be affected by the tightening credit environment. The transaction is subject to shareholder approval and expected to close in the fourth quarter.


There will be no change in NCL’s management or day to day operations, according to Steve Martinez, partner of Apollo Management. The company has no immediate plans to increase its stake in NCL nor to combine it with Oceania Cruises, in which Apollo invested $850m earlier this year, he added.

Apollo and Star also agreed to allow time to see if recently implemented actions can turn around the struggling U.S.-flag operations. Meanwhile, Star will continue to underwrite NCL America’s losses, up to $50m, after which the losses will be split by Star and NCL. Should the operation be discontinued, plans include the transfer of one ship to Star and one ship to NCL’s international fleet.

'We believe the NCL brand has significant growth potential over many years to come,’ Martinez said.

The Apollo deal makes NCL a stronger competitor overall and underscores confidence in the cruise sector, analysts and financial experts said.

Today's news follows Star's suspension of its share trading in Asia on Monday, pending the release of price-sensitive information.

Industry insiders for some months have talked of Apollo Management's possible interest in NCL and other cruise operators. Adam Aron, an Apollo associate, led NCL as its president in the early 1990s.

Even though Apollo professes no intent to combine NCL with Oceania -- and Star and Oceania’s non-Apollo investors don’t give signs of bowing out -- AGE’s Conder thinks the deal begs the question whether Apollo in the long term could form a larger cruise holding company to oversee a variety of brands

Negotiation commence as port vie for the new Genesis generation of mega ships
Fort Lauderdale's - Port Everglades opened the bidding in a recent move aimed at trying to secure the home porting of RCI's new generation of mega-ship, the Genesis Class. With a request to the Broward County Commissioners for permission to proceed with further discussions with RCI on the subject.

According to various reports, the Port of Miami and Port Canaveral have also expressed and interest in  having the ship base there.  Other ports around the country might also make a bid for the business, but realistically and historically all news deployment of new ships always takes place in one of the Florida Ports.

The Genesis port choice is also very desirable for the winning port as it would have a significant impact on the local economy.  Figures indicate that a year round presence for one of the ships would create some 3800 new jobs and generate an income of around $172m, just the construction of the new terminal would generate 850 jobs.  A study has predicted that some 562m to 6660m passenger per year would transit the port which would bring in port revenues of about $200m over a 10 year period.

Port Everglades would need to undergo a major construction to accommodate the 220,000 ton ship which is some 40% bigger than than the Freedom Class ships currently in service with RCI.

Port Everglades would be looking at expanding the current terminal 18 a project expected to cost $28.9m. The total cost for the project including dredging and modifications to the dockside equipment , parking and access road will run to $37m this investment is expected to be guaranteed by an initial $4.95 passenger head tax.

Port Everglades feels it has the expertise to handle the additional large number of passengers as one day in last December the port moved 46000 people amongst its 12 terminals.

Caribbean Islands well prepared and spared the worst of Hurricane Dean
With Hurricane Dean moving past the Caribbean region, the Caribbean Tourism Development Company’s (CTDC) Joint Chief Executive Officer Vincent Vanderpool-Wallace praised the organization and preparedness of the  islands in the region who faced the Category Four storm head on, while expressing concern for Mexico and the United States Gulf region which are currently in the storm’s path.

“We continue to monitor the aftermath of Hurricane Dean and offer our sympathies for those adversely impacted by the storm,” said Vanderpool-Wallace. “One thing that stood out, however, was the overall level of preparedness the region showed as the storm approached, as well as the response from the island nations. There is no doubt in my mind that the Caribbean region is better prepared overall today than in years past and we appreciate the cooperation of our guests as well as our hotel, airline, and travel trade partners in helping weather this situation and make what appears will be a strong and quick recovery.”

Vanderpool-Wallace noted that relatively few of the Caribbean region’s islands were directly impacted by Hurricane Dean and that cleanup was already well in progress.

Alec Sanguinetti, Director General & CEO of the Caribbean Hotel Association and Joint Chief Executive Officer of CTDC, noted: “The hotel sector on the few islands that were impacted had withstood the storm and were planning a quick return to normal operations.”

Both Vanderpool-Wallace and Sanguinetti also expressed concern on behalf of the Caribbean region for those who remain in the path of the storm. “Our thoughts and prayers are now with those in Mexico and the United States Gulf region,” said Vanderpool-Wallace. “We hope those areas will be spared significant damage.”