Back

 

A new thrust to enforce US cabotage law

With NCL America’s struggling to make a go of their Hawaiian itinerary ships U.S. officials are to crack down on foreign-flag Hawaii cruises seen to be in flagrant violation of sabotage law.

Under the new proposals, sailings to Hawaii that make only cursory stops in non-U.S ports like Ensenada, Mexico, will be viewed as violating the Passenger Vessel Services Act. Under PVSA, the foreign stop must be ‘a legitimate object of the cruise.’ PVSA violations levy a fine of $300 per passenger.

Apart from the threat to their Hawaii itineraries, cruise operators appear concerned the crackdown could potentially impact a much wider range of  sailings originating in the U.S., particularly those to Alaska where brief stops are made in a Canadian port.

Foreign-flag ships already have tremendous flexibility in cruising from U.S. ports but when they  went to one-hour, middle of the night, Ensenada port calls in order to circumvent the PVSA and compete against the U.S.-flag ships in Hawaii they overstepped the mark and the Administration has called them on it and is taking steps to keep it from happening in the future.

Alarmed by the "Pride of Hawaii’s" withdrawal from inter-island service with a loss of 1,100 crewmember jobs which NCL America blames mainly on foreign-flag competition from the U.S. West Coast,  the U.S. Maritime Administration asked Customs and Border Protection (CBP) to ensure the enforcement of the PVSA.

CBP in August notified the Cruise Lines International Association and two Hawaii operators of its Ensenada concerns. It is understood that some ships may have changed their practices after the notice. CLIA on Wednesday said it is not commenting on the issue, and individual lines have not commented on the issue.

CBP is proposing that a stop at a foreign port is not ‘a legitimate object of the cruise’ unless the stop lasts at least 48 hours, or, the amount of time spent at the foreign port is more than 50% of the total time spent at the U.S. ports of call and the passengers are permitted to go ashore in the foreign port.

Under CBP’s proposed interpretive rule, ‘any cruise itinerary that does not include a foreign port call that satisfies each of these three criteria constitutes coastwise transportation of passengers,’ in violation of the PVSA.

While the intent of the U.S. action limits the debate to Hawaii – where there is a U.S.-flag operation to defend – public comments filed by CLIA and the American Association of Port Authorities indicate concerns the new interpretation could be extended to other cruise regions.

In remarks to CBP, CLIA and AAPA both seek time beyond the 30-day comment period, which ends Dec. 21. CLIA said the August letter from CBP did not lay out the ‘rigorous criteria’ for allowable Hawaii cruises established subsequently and stated the language of the proposed interpretation ‘could be read to affect virtually all cruise itineraries from U.S. ports.’

AAPA commented that Customs is laying out ‘radical changes to the U.S. cruise industry that would have serious effects on the U.S. port industry.’

CBP’s decision to require a 48-hour stay in a foreign port leaves room for debate since cruises seldom spend more than a day in each port anywhere in the world. Also, historically, ‘technical’ calls have been allowed in some circumstances on other itineraries – but in those cases there may not be U.S. interests to defend.

NCL America in a statement voiced its support for the proposal and the efforts of CBP and MARAD to ‘help realize the goals’ of the 2003 Hawaii Cruise Ship Initiative – the enabling legislation that allowed NCL to reflag foreign-built ships for Hawaii service. Under that bill, NCL America is limited to Hawaii and cannot operate coastwise to Alaska, for example.

NCL America noted it has invested more than $1.3bn ‘in the effort to revitalize America’s cruise industry’ and is subject to U.S. taxation and employment laws while providing more than 4,000 seagoing jobs.

Hawaii Sen. Daniel Inouye’s office did not immediately respond to requests for comment. A Seafarers International Union spokesman also said he had no immediate comment.

Interpretation of the PVSA over decades has been a ‘political football,’ according to an industry source with knowledge of the issue. If foreign-flag operators are now openly circumventing the law, that needs to be addressed, he opined. ‘Very few opportunities exist for U.S.-flag operators to provide service,’ he said. ‘The Hawaiian Islands business deserves to be looked at. I’m surprised it hasn’t been done before.’

RCI release new and extensive South Pacific itineraries
Royal Caribbean International has released a 32-page brochure for Rhapsody of the Seas’ 2008/09 programme in Australia, New Zealand and the South Pacific.

Starting  with a 13-night round cruise from Sydney to Noumea, Poum, Luganville, Vila, Ouvea, Isle of Pines and Lifou on October 19, 2008 which will be followed by another round cruise from Sydney to the South Pacific on November 1 and 11-night cruises to the Great Barrier Reef on November 11 and December 2. She will cruise again to the South Pacific from Sydney on November 22 and December 13, 2008 and April 2, 2009.

On December 23, 2008, Rhapsody will make a 14-night Christmas and New Year round cruise from Sydney to New Zealand’s north and south islands, including a call at Bay of Islands. She will operate three more round cruises to New Zealand from Sydney on January 13, January 27 and February 10, 2009.

On January 6, 2009, Rhapsody makes a seven-night round voyage from Sydney to Tasmania and on February 24 she departs Sydney on a circumnavigation of Australia.

She departs Sydney on April 13, 2009, for a 16-night cruise to Honolulu via Rarotonga, Bora Bora, Moorea, Papeete and Lahaina and on April 28 she leaves Honolulu on her repositioning voyage to Vancouver.
 
The Vision-class ship carries 2,435 passengers and features the company’s signature rock-climbing wall, will return down-under next year for RCI’s biggest presence in the region.

Townsville cruise terminal moves another step forward

Queensland deputy premier and minister for infrastructure and planning, Paul Lucas, hopes work will commence mid-2008 on the Townsville Ocean Terminal following the release of the government’s environmental impact statement (EIS).

The EIS for the A$1bn project that was approved by the then deputy premier (now premier), Anna Bligh, in February last year was unveiled on Saturday. The public consultation period runs from today until February 1.

Lucas said approximately 80 hectares of land currently under shallow water on the seaward side of the Townsville Casino will be developed for the ‘ambitious project’ that includes a terminal for both cruise and military ships up to 260m long, a marina for super yachts and a residential complex.

The terminal is expected to commence operation in 2010
Port Everglades expansion runs into problems
Environmental concerns have at least temporarily derailed part of a $2 billion plan to expand Port Everglades over the next 20 years to handle more cruise and cargo traffic.

Port administrators want to destroy nine acres of mangroves so they can expand a nearby cargo terminal to accept imports of crushed rock needed for construction. But the mangroves are part of 45 acres of tidal wetlands the port agreed in the 1980s to preserve forever in exchange for an expansion project at that time.

Broward County commissioners approved the rest of the long-range plan Tuesday, and signed a deal with Royal Caribbean that is expected to make Port Everglades the world's largest cruise port. Commissioners will discuss the controversial plans for the turning basin in depth within two months.

Environmentalists charged that lengthening the turning notch for extra berths amounted to reneging on a promise — even if the port paid to improve wetlands elsewhere.

"It's a question of whether Broward County will honor its agreement with the state of Florida to protect this land," said George Cavros of the Broward County Sierra Club. "At some point, you have to say enough is enough. How much more do you want to industrialize this county?"

Under the 20-year plan, larger cruise terminals would be built, more berths for freighters opened, the entrance channel deepened and aging bulkheads replaced. There also would be more parking for cruise passengers and connections to nearby rail lines.

Planning is already under way for a key component on the plan that is integral to the Royal Caribbean deal: the $37.4 million renovation of Terminal 18 to handle two mega-ships that the cruise line will base at the port.

The new ships, each of which will carry as many as 6,400 passengers, are the cornerstones of a promise by the cruise line that it will bring 17 million passengers to the port in the next decade.

The first will arrive in mid-2009, with the second a year later.

The Genesis-class ships have been the subject of months of competition between the Broward County port and its Miami counterpart.

The Port of Miami has been Royal Caribbean's base of operations in the region, but the deal creates a major partnership with Port Everglades.

Expanding the turning notch is a key part of the cargo side of the port expansion plans.

Port administrators said the area faces a massive shortage of crushed rock, which is needed to build roads, homes and bridges, because quarries in western Miami-Dade County are being closed. The turning notch would be extended westward to provide the needed space.

Port Director Phil Allen said port would offset the wetlands damage by spending $20 million to buy and improve Deerfield Island and $8 million to improve West Lake Park.

Environmentalists said the mangroves are high quality and critical to the area's manatee population. They said manatees trying to reach the warm water in the discharge area of the power plant, where they like to congregate, use a tidal creek in the area to rest and will be in greater danger of being hurt by passing boats and ships.

The now-defunct Port Authority agreed in 1987 to give the state a conservation easement covering 45 acres of wetlands in exchange for a permit to destroy 18 acres needed for expansion.

While some commissioners said the turning notch plan was vital to port business and the area's economy, others said they were concerned given the history of how the land was preserved.

"It seems to me that it is bad faith to first say you're going to save it and then say you want it for expansion," Commissioner Kristin Jacobs said.

Marina Svetaeva undergoing refurbishment in Shanghai

The 100-passenger Marina Svetaeva, bought by the Australian-owned adventure travel company Aurora Expeditions earlier this year, is undergoing the first stage of an upgrade at Shanghai’s Li Feng Shipyard before the commencement of her 2008 programme.

Aurora Expeditions chartered the ice-strengthened vessel, which was built in Poland in 1989, for polar cruising two years ago. Marketing manager David Mannix said it was operating a ferry run between Japan and Russia for a Sakhalin company when it was purchased by Aurora’s co-founders, Margaret Werner and Greg Mortimer.

Mannix said the temporary helideck that was erected when Aurora Expeditions chartered Marina Svetaeva is being replaced with a permanent twin helideck before the first 2008 Ross Sea voyage from Hobart on January 7.

‘We use helicopters not only for the most fantastic flight-seeing tours in Antarctica, but also for navigating the ice,’ he said.

He said the ship will return to Shanghai for further enhancements to give her ‘the Aurora touch’ before operating a back-to-back voyage around Papua New Guinea from Rabaul on April 18.

She will then become the first Australian cruise ship to operate a voyage around the isolated Kuril Islands and Kamchatka coast when she departs the Japanese port of Kushiro for Petropavlovsk on July 6.

Good start to Dubai cruise tourism season with six new arrivals

Dubai welcomed six cruise ships at its state-of-the-art cruise terminal since the start of cruise season in October. Awadh Seghayer Al Ketbi, Executive Director for Heritage and Cruise at the Dubai Department of Tourism and Commerce Marketing (DTCM) said the cruise tourism season had a good start and several cruise ships from various parts of the world are expected to visit the emirate until the end of the season in April.

The ship-shaped cruise terminal, opened in 2001, measures 3300 square metres and is able to accommodate two ships simultaneously on a 335-metre quay The Dubai Cruise Terminal is the world's first to receive ISO-9002 certification and also the world’s only cruise facility run by the government tourism body, DTCM. The Dubai cruise terminal is able to accommodate two ships simultaneously.

DTCM signed an agreement with Cruise operator Costa Crociere. The agreement marks the creation of a full-fledged partnership between Costa Crociere and Dubai, providing for joint marketing initiatives in the next five years promoting both brands worldwide.

During the current winter season 2007-2008, Dubai expects more than 200,000 cruise passengers to visit the emirate, giving a big boost to the booming tourism industry.

Mr. Al Ketbi said: “Dubai is becoming a popular cruise destination in the world. The arrival of cruise ships speaks volumes about the status that Dubai enjoys on the world cruise tourism map.”

Dubai handled 32,000 cruise passenger movements in 2006, up from 23,000 cruise passengers in the previous year. For the 2006-2007, season, Dubai is expected to play host to over 85,000 passengers. For the 2008 season, the number is expected to reach over 200,000

 

Return to newsletter



 

 

.