By
David Mott |
The buoyant Geneva-headquartered cruise line, which some now view as the industry’s ‘third force’, has spent no less than €6 billion over the last 10 years to raise fleet capacity 800 per cent. In 2003 there were just 127,000 passengers; this year’s figure is expected to be 1.4 million, with 1.5 million forecast for 2013.
As part of this expansion, MSC took over a 3,400-berth vessel originally ordered by the Libyan regime. “When we took over MSC Preziosa earlier this year, 43 per cent of the vessel had been built. In structure she is a sister of the MSC Divina, but the interior has been changed to meet our standards,” says Pellegrino.
Though Italian, MSC operates worldwide and Pellegrino thinks the fundamentals for European growth are strong. “There is less than 1 per cent market penetration compared with 3 per cent in North America. Up to 43 per cent of the 22 EU countries with a sea border live in coastal regions,” he observes. Europe also has generous annual leave and public holidays compared with North America, and is an “incredibly promising market,” he adds. “However, we have planned new growth in North America, too, and will position the new MSC Divina in Miami for the 2013/14 winter season. This will be the first time one of our large resort ships (4,345 berths) has homeported in North America.”
The MSC managing director concedes that the European economy is going through a “challenging phase” and spending power is being reduced with less money allocated for holidays. “But the cruise industry business model remains strong and the industry has risen to this challenge before by illustrating the cost-effectiveness of cruising which, adjusting for inflation, is cheaper than 10 years ago.”
MSC Cruises has a reputation for being a very clean and environmentally friendly line, which aims to reduce the use of all types of plastic onboard its ships. Where feasible, plastic containers are being replaced with cardboard or glass.
The cruises arm is part of the MSC Group, which houses the second largest container carrier in the world. This operation uses 335 ports in 145 countries, an obvious advantage to the cruise line. “A significant number of MSC Cruises staff and crew gained their sea experience in the cargo line,” says Mr Pellegrino.
MSC Cruises currently has a dozen ships, most of them under 10 years old and the largest being a shade under 140,000 tons. There are three classes of ship – four Lirica-class ships of about 59,000 tons; three Fantasia-class vessels of over 130,000 tons; and four Musica class ships of 92,500 tons. The oldest ship, the 36,500-ton Melody, was built 30 years ago. When the Preziosa is delivered next year, the company will have overall berth capacity of over 40,200 berths/day.
Though the pace of new cruise ship orders has slowed because of the recession, Pellegrino admits that MSC Cruises is “looking into” a new prototype vessel. Progress on this front will be watched with interest by the industry.