Line to build six new river ships that will homeport in New Orleans and sail on the Mississippi River
By
Rebecca Gibson |
The Port of New Orleans is to serve as the homeport for Viking River Cruises’ first-ever North American river cruise itineraries.
Viking, which already operates 60 river cruise vessels across Europe, Russia and Asia, will deploy two new river vessels on the Mississippi River per year from late 2017. In total, it plans to deploy a total of six newbuilds over the next three years. The ships, which will be built at US shipyards at a cost of US$90-100 million each, will be owned by Los Angeles-based alternative investment management firm Tennenbaum Capital Partners and time-chartered to Viking.
“We are excited about the prospect of bringing modern river-cruising to the Mississippi, a river that has been travelled by explorers for centuries,” said Torstein Hagen, Viking’s chairman. “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 US 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.”
The 300-passenger newbuilds will sail from docking facilities near the French Quarter in New Orleans along the Mississippi River, calling at St. James, East Baton Rouge, West Feliciana in Louisiana; Memphis, Tennessee; St. Louis; or St. Paul, Minnesota, depending on the season.
“We are thrilled by the choice of the Port of New Orleans as Viking’s initial entry into the North American market,” said Gary LaGrange, Port of New Orleans president and CEO. “Viking is one of the premier cruise brands throughout Europe and Asia. Its worldwide reputation underscores New Orleans as a destination city for both international and domestic leisure travellers.”
Viking’s new service is expected to create 416 new direct jobs for Louisiana-based operations and vessel crews, while Louisiana Economic Development (LED) estimates that the project will result in an additional 368 indirect jobs. It is also expected to boost business at local hotels, restaurants, museums and other attractions. Forecasts estimate that more than 90% of sales created by the project will come from out-of-state customers.
“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,” said Louisiana Governor Bobby Jindal. “With today’s announcement, the picturesque Mississippi River and the beauty of New Orleans, Baton Rouge and other great cities of the American South will join the list of the company’s journeys. Viking could have chosen another port anywhere in the world, but chose Louisiana because of our state’s outstanding business climate, workforce and port infrastructure.”
LED has been in discussions with Viking since November 2013 and the State of Louisiana has provided an incentive package that includes a US$4.5 million performance-based grant for site preparation at the company’s docking locations in Louisiana. Viking will also receive customised solutions as part of the LED FastStart workforce development programme.