Bigger ships, more passengers. Who will attract attention in the cruise market in coming years? Everything points towards China as a country with massive potential, but which is also a challenge
”There is definitely optimism in the industry, with 33 new ships due to be launched in the next five years accommodating 100,000 passengers,” says Claus Bødker.
”We are confident there will be growth in the cruise industry,” says Claus Bødker, director of Cruise Baltic Network and Cruise Copenhagen Network.
And such optimism might well come in handy, just a few years after the financial crisis. In the course of the next five years, 33 new cruise ships will be launched globally, with a total of 100,000 berths and an overall price of USD 26 billion. That money has to be recouped again, and one of the ways in which the industry is anticipating doing that is by building bigger and bigger ships.
23 million people are expected to sail with a cruise ship in 2015. To put that into context, Las Vegas has 30 million visitors per year, and Turkey is visited by 40 million tourists. Where will the growth take place in terms of destinations and customer base? ”The Caribbean is still the major cruise destination, attracting one third of the global capacity. The numerous small island states are the classic destination, which started the whole thing, and which particularly attract passengers from the USA. The situation for the destinations in Europe is unchanged, while destinations in Asia and Australia are growing,” says Claus Bødker.
China’s middle class is expanding explosively”When we consider the distribution of passengers by nationality, then everybody is talking about China. The income and purchasing power of the Chinese middle class, and thus also their interest in travelling, will grow explosively up to 2022.”
According to an analysis from McKinsey Quarterly, China’s middle class, which has an income of 9,000 to 34,000 USD, is expanding from 4% in 2000, to 68% in 2012 and over 75% in 2022. By 2022, over half of them will have an income in the upper half of the range, and China’s purchasing power will be in line with Italy or Brazil.
”With 1.3 billion inhabitants, it won’t need many of them to take a cruise before they are the largest group of passengers, and global capacity will be sold out.”
The Chinese are starting with cruises in their own locality and will subsequently look towards the Caribbean and Europe, and all destinations will position themselves to compete for the Chinese. China’s influence can also be seen in that Quantum of the Seas, which was launched in November 2014, will be moving from New York in May this year and will have its home port as Shanghai.
On a smaller scale, the Australians have now overtaken the Americans when it comes to percentage of citizens that have been on a cruise. They have been sailing in their own waters for many years, and would now like to see other parts of the world as well. Up to now, the USA has represented 3½-4%, but it has now been overtaken by the Australians, though in terms of numbers there are far less of them.
However, the industry is also already talking seriously about congestion. The most popular destinations have reached the point where there are enough cruise liners. ”At Easter I was on a cruise to St. Thomas and St. Martens in the Caribbean, and when we arrived at St. Martens there were already six large ships, with about 25-30,000 passengers going ashore on that day. On an island which has around 10,000 inhabitants and where everything revolves around tourism. On the other hand, we are also observing that the growth is now moving to destinations such as Asia and Australia.”
# 2 2015
More arrivals in MalmöCruise traffic in Malmö is expanding in 2015 to accommodate 17 arrivals. The approximately 34,000 cruise tourists will provide an extra boost for shops, hotels and restaurants. Read more
Reliable partnerCruise liners need service and support in relation to everything from spares to logistics. Cruise-Aid-Logistics Europe is always on site to resolve problems and provide assistance. Read more
Hard work has delivered resultsCMP is a key player within cruise traffic in Northern Europe. ”Behind the successes lies hard work”, says Arnt Møller Pedersen, head of the operation. Read more
CMP’s new cruise terminal in Copenhagen is now welcoming passengers for yet another season. The modern, efficient terminal is also appreciated by our collaborative partners.
CMP – a core portThe EU has previously designated CMP as a so-called core port. This means that the facilities in both Copenhagen and Malmö are considered to be of major importance for Europe’s transport network. In May the EU’s transport coordinator Pat Cox visited Malmö for talks on CMP’s ambition to develop as a core port. Read more
Increasing focus on On
Board Check In
Interest is now growing in On Board Check In. More shipping companies are choosing to focus on this service, where passengers can check in luggage and have their boarding card printed on the ship. Read more
Practical service from CMPImprove your planning, request
e-mail or SMS prior to Cruise ship arrivals.
IN THIS ISSUE
Future focus on China
Cruise liners are both increasing in number and getting bigger. In the next five years, 33 new ships will be launched throughout the world. At the same time interest is increasing in China, which might be the next major growth market. Read more
“The terminal has been really well received by our guests. CMP is a friendly port, and the porters provide an excellent service for the guests”, says Christopher Blanchard.
Christopher Blanchard deals with thousands of passengers every year at CMP, and he is delighted about the improvements that have been made to the new cruise terminal at Ocean Quay.
A modern and efficient terminal
Goodbye to teething troubles and welcome to a new season. In its second season, CMP’s new cruise terminal at Ocean Quay will fulfil the expectations of shipping companies and passengers, and much has been done to improve issues such as traffic conditions, which were criticised last year.
Christopher Blanchard is Managing Director of International Shore Operations (ISO), a company which arranges excursions and turnarounds for cruise operators in Europe and the USA. This year ISO has 36 turnarounds in Copenhagen for Norwegian Cruise Line, Holland America Line, Seabourne and Disney.
”There was an urgent need for a new cruise terminal in Copenhagen, and now we have a modern and efficient terminal. I like the fact that arriving and departing passengers are separate, and that all three terminal buildings are identical, so no shipping company can say that it has the ”old” terminal.”
”I would have liked to have had air bridges from the terminal to the ships, but as there is no first floor to the buildings, it is not possible.”
Better traffic flow”The major problem last year was the access conditions from the terminal to the city centre. There were lots of lorries taking earth to landfill sites and only one left turn lane at the exit from the port. It could take our buses long time to leave the port, but I think it’s flowing better now as an additional left turn lane has been put in at the exit.”
”However, the terminal has been really well received by our guests. CMP is a friendly port, and the porters provide an excellent service for the guests. They are friendly and patient. ”
”Copenhagen is a very popular city, easy to get around in, and manageable. A city for pedestrians. Holland America Line managed to fly their guests in on the same day as their ship departed, but then they didn’t have time to see Copenhagen. The shipping company has changed that now, so that they arrive the day before and have time to experience the city. The shipping company has really listened to their needs,” says Christopher Blanchard.
The ships’ indispensable partner in Nordhavn
Always present and ready to resolve the customers’ needs. Even the ad hoc ones, which often arrive at the last minute before – or during – an arrival. This is the working day for Cruise-Aid Logistics Europe, which, with a base in Nordhavn supplies provisions, spare parts and logistics to cruise ships which call into Copenhagen. The same goes for its sister company, American Cruise-Aid Logistics, which works out of Cape Canaveral, Florida.
”The benefit of being located in both the USA and Denmark is that we are always present in the customer’s time zone. They don’t have to wait for an office on the other side of the world to open for their demands to be resolved,” says Janne Meinertz, President of Cruise-Aid Logistics Europe and American Cruise-Aid Logistics.
Cruise-Aid Logistics Europe opened its office in Nordhavn in 2014, based on Janne Meinertz’ experiences from 21 years in shipping and cruises in USA, where she set up American Cruise-Aid Logistics. With a team of experienced staff – Peter Olsen, Director, Michael Ehlers, Logistics Coordinator, and Kim Gunthel, Warehouse Manager – the Danish office has done well from the outset, with Disney Cruise Line as the latest contract.
Disney Magic, which accommodates 2,400 passengers, has now become an established visitor. The ship came to Copenhagen for the first time two years ago, but from 2015 has CMP as turnaround port.
”We are delighted that Disney will have seven turnarounds in Copenhagen. We were informed that the agreement was in place while we were at Seatrade in Miami earlier this year. The fact that Disney is now also using Copenhagen as its home port is a big thing.”
Disney Cruise Line is a highly consistent brand based on Disney’s universe, and the ships are painted in Mickey Mouse colours – black, red and yellow – and have his image on the chimneys. And it is not just families with children that take cruises with Mickey Mouse and his friends, the ships also have a loyal adult public. Besides Copenhagen, Cruise-Aid also has Disney’s arrival in Barcelona, which is handled from Florida via a local agent.
”However, we also work with other shipping companies here from Copenhagen,” says Peter Olsen. ”For example, this year is the fourth season with Norwegian Cruise Line, and the third season that we are handling Norwegian Star with its home port in Copenhagen. Our supply department also delivers provisions to cruise ships on Greenland, Svalbard, the Faroe Islands and Iceland.”
The more curious last-minute requirements that Cruise-Aid handles might be anything from 26,000 eggs to a new popcorn machine. For delivery on the same day. A turnaround in CMP can comprise deliveries which fill up to six 40-foot containers, ten large lorries and three-four small lorries. It can be congested on the quays, so a good network is incredibly important for everything to work.
”Cooperation is fantastic here at CMP – customs, stevedores, vets, dog patrols. Anything can be achieved when there are good people all the way through. We work it out together,” says Janne Meinertz.
Cooperation at CMP is fantastic – including customs, stevedores, vets, dog patrols, says Janne Meinertz.
Cruise-Aid Logistics Europe meets the cruise ships’ requirements for logistics, provisions and spare parts, including the unexpected ones. Disney is the newest contract for Cruise-Aid in CMP
Janne Meinertz and Kim Gunthel with cargo for the Norwegian Star in Cruise-Aid’s warehouse in Nordhavn.
The expectation is that this year more shipping companies and airlines will participate in On Board Check in, which was introduced at CMP in 2014
The luggage is driven directly to the airport, and the passengers have already checked in to their flight before they leave the ship.
More ships able to provide On Board Check In
On Board Check In had its European premiere at CMP in August 2014, with passengers on-board Emerald Princess and Eurodam having the opportunity to check in for their flight home with SAS, before the ships arrived at Copenhagen.
This year it is anticipated that even more cruise guests will benefit from the system, which provides a more relaxed journey home after the cruise.
The opportunity to offer On Board Check In is being unrolled to more shipping companies and more airlines via a common software platform, which has been developed by the American firm Bags. The plan is that more of the major cruise lines will take up the opportunity so that the processes are optimised and the passengers have an even better experience.
”We are expecting that more shipping companies and more arrivals will be served by On Board Check In this season. There is also room for more airlines to join the collaboration, however, it will probably be only SAS and Lufthansa that will use it this year,” says Arnt Møller Pedersen, COO Cruise & Ferries in CMP.
On Board Check In has the major benefit that passengers can check in on-board and have their boarding pass printed at their leisure while still on the ship. They put their luggage outside their cabin the evening before they disembark, and it is collected by the ship’s staff and placed in a safe room until the ship is in the port, after which it is taken in sealed trucks directly to the airport.
”This gives the passengers more time for sightseeing in Copenhagen before they have to fly home, and they can go directly to security when they arrive at the airport,” says Arnt Møller Pedersen.
CMP has started the 2015 cruise season, which offers numerous first-time arrivals.
“On really busy days such as 6 June and 1 August, we have six arrivals, and this places major demands on staff and partners for precision and service”, says Arnt Møller Pedersen.
New ships in 2015
Copenhagen: Serenade of the Seas, MSC Sinfonia, Celebrity Silhouette, Brittania, Caribbean Princess, Regal Princess, Corinthian, Coasta Favolosa, Magellan, Mein Schiff 4, Viking Star.
Malmö: AIDAcara, Europa 2, Hamburg, Seven Seas Voyager.
CMP has started the year’s cruise season, which can look forward to 302 arrivals at Copenhagen and Malmö. For Arnt Møller Pedersen, COO Cruise & Ferries, it is last year’s hard work that has produced the results he observes when he visits the ships on a daily basis.
”I start a normal working day by visiting the quays and terminals which have cruise arrivals. This gives me a sense of how things are going, I say good morning to all the stakeholders, guides, incoming- & ship agents, our own staff and not least the passengers, from whom I receive very good feedback. I visit all the quays two-three times in the course of a day. It really gives me a lot, and it makes me more hands-on.”
”We have several arrivals almost every day in the summer season, and many of the arrivals are turnarounds. On really busy days, for example 6 June or 1 August, we have six arrivals, of which the three at Ocean Quay are turnarounds. This places major demands on logistics, precision and service, and is only possible through the excellent cooperation with all our partners in the Copenhagen Cruise Network.”
Fewer ships on the marketCMP has a lot of first-time visits this year – in all, 15 ships will be visiting either Copenhagen or Malmö for the first time.
”We will be seeing a lot of new ships, even though in total we have fewer arrivals this year than last year. Among other things, this is due to the growing market in the Far East, which is reducing the tonnage in other markets. It is also the case that not enough new ships have been built in the last 3-5 years as a result of the financial crisis, however the good news looking forward is that shipbuilding is underway again. Furthermore, the new SECA rules mean that from 1 January this year some of the older ships are no longer able to sail in our waters.”
”So all in all, the number of ships has fallen, both in the Baltic and in Norway, but on the other hand, we can observe that the number of new ships under construction is once again rising, and increasingly so, and providing room for more passengers. The number of passengers will consequently rise again from 2016,” says Arnt Møller Pedersen.
Ready for new ships and guests in Copenhagen and Malmö
PHOTO: Johan Ramberg
“During this year’s season, 34,000 cruise tourists will be visiting Malmö and its surroundings. To ensure that they feel well received, comprehensive efforts are being made including information and guides”, says Anna Wittgren at Malmö Turism.
The 2015 cruise season is looming, and Malmö is ready. More arrivals than ever before are expected in the city.
PHOTO: Malmö Stad
At Malmö Turism they have been carefully preparing for the season.
“We have focused a bit more on the reception side of things this year. This includes a course to train German-speaking guides, which is currently in progress. This year a total of six ships will be arriving with Germans on-board. We have previously run a guide course in Spanish, as well as a general one”, says Anna Wittgren, business area manager for private travel at Malmö Turism.
“We are going to have a tourist office outside the terminal in a booth which is normally located at the Christmas market in Malmö”, she continues. The fact is that not all shipping companies utilise the terminal. We are also going to put a sign up on the terminal wall with various bits of information that might be of interest to visitors.
A specially produced mini-guide for taxi-drivers has just arrived from the printers as a way of helping the tourists find the top 10 in Malmö.
“We have invited the taxi companies to work with us. They has accepted our offer and we have therefore produced a small folder about Malmö so that the taxi-drivers can be prepared when the tourists ask questions. In Sweden we take taxis to get around, while in other countries people often travel by taxi as a form of sightseeing”, Anna Wittgren says.
Examples of the top 10 are Western Harbour with Turning Torso, Malmö’s Museums and Emporia.
“We also have a mobile tourist guide - Arrival Guide – and inform the passengers about it directly on the quay. The guide is really good as it enables people to discover things on their own. We have excellent download figures in Malmö. People should feel welcome and at home in Malmö, even if they are not going on any excursions”, Anna Wittgren continues. We produce specific shopping material for the visitors who want to buy something Swedish. Glass and handicrafts are a big thing. And Åhléns and Formargruppen are opening earlier on Saturdays for the sake of the cruise tourists, which is fantastic.
Tourists spend a total of SEK 6 billion per year in Malmö. Everything from HM to Kosta Boda are popular, according to Anna Wittgren.
However the competition for tourists is fierce. And the challenge is to find out why tourists should choose Malmö and its surroundings over other places.
“It is about finding out what is of interest to the shipping companies. For example, Pullman is extremely pleased with how turnarounds operate in Malmö. We have no ”people pollution” in Malmö and it is close to most things in the city. For example, cruise tourists can get into Malmö in quarter of an hour. Furthermore, Malmö Airport is a small and flexible airport.
34,000 cruise tourists also produce a number of overnight stays in the hotels in Malmö as some them decide to stay on.
Malmö is ready for the
Shops are opening up for cruise passengers
Better bus service for Ocean Quay
This year’s cruise season is looking bright for Malmö. Fully 17 arrivals are planned, which represents some 40,000 cruises passengers. Both Åhléns and Formargruppen have consequently decided to open their shops earlier on certain days. Anna Wittgren has been business area manager for private travel at Malmö Turism since the summer. She is looking forward to the forthcoming cruise season with confidence.
“We are extremely happy that, for example, the German cruise liner AIDA-cara is coming to Malmö five times in the coming season”. A course to increase the number of German-speaking guides has consequently been coordinated during the year.
The Spanish company Pullmantur decided to use Malmö for turn arounds in the 2012 season, as a result of which trade in the city centre has increased. This year, Åhléns and Formargruppen have consequently decided for the first time to open their shops earlier on those Saturdays when Pullmantur calls in to Malmö.
“Shopping plays an important role for the majority of cruise passengers and a survey two years ago showed that Pullmantur’s passengers spend around SEK 6.6 million in Malmö”. Besides Germany and Spain, the cruise passengers mainly come from France, the UK and Russia.
“The ships stay for an average of 8-9 hours”, says Anna Wittgren. While some of the passengers shop, others choose to make excursions throughout Malmö, Lund and Copenhagen. She says that from this year the tourist office is moving out to the cruise quay.
“It will feel a bit more welcoming. We are now working on providing information for the passengers so that they are better able to discover Malmö, Lund and Skåne on their own. We are also producing a special pamphlet about what is typically Swedish to help our visitors. A lot of them like Swedish design, glass and handicrafts for example.
Passengers from cruise ships will now have a better chance of taking a city bus to the closest stations in Copenhagen. After the temporary service last year, Movia has made the Ocean Quay bus service permanent with a fixed daytime bus connection and a shuttlebus when there is an arrival:
New shuttle bus Line 25: Operates a shuttle service between Ocean Quay and Nørreport Station. The line only runs on days with cruise liners at Ocean Quay, and beyond this only stops at Østerport Station and Nørreport Station.
New bus line Line 27: New line, which runs between Østerport St. and Ocean Quay via Dampfærgevej, the DFDS Terminal, Sundkrogsgade and Færgehavn Nord. The latter only runs in the direction towards Ocean Quay. Line 27 runs in the daytime every day of the week, with 4 departures an hour during peak hours and otherwise 2 departures an hour
Line 26 runs unchanged between Ålholm Plads and Østerport St. From Østerport St. the line continues via India Quay to the DFDS Terminal in Søndre Frihavn. The line continues to UN City on Marble Pier everyday until about 10.00.
The reconstruction of Spillepengen improves access to Norra Hamnen.
Spillepengen widened for the future
CMP is the leader in cruises in Scandinavia with both Copenhagen and Malmo as a destination. For more information about cruises and cruise ship arrivals visit CMP website.
Spillepengen in Malmö is full of activity, the reconstruction that has been proceeding for a year must be completed by the end of the year. The objective is to increase accessibility to and from Norra Hamnen.
”We are removing the commuter traffic to and from Malmö by building two parallel bridges over the roundabout. You could say that we are building the key to Norra and Mellersta Hamnen in order to increase capacity to and from the port”, says project manager Conny Ragnarp at the Real Estate Office.
Including retaining walls, the new bridges are together some 600 metres long. However, more than that is taking place in the area. Besides the bridges, there will be two new traffic signals as well as an extension of Borrgatan from Blidögatan to Bjurögatan. Through traffic from Blidögatan to Spillepengen will be stopped, and there will be an unrestricted right lane from Västkustvägen directly onto Spillepengsgatan.
Malmö City Council has ordered the construction works, with co-financing from the Swedish Transport Administration.
”Malmö is a major transit city”, Conny Ragnarp says. “Spillepengen is being widened to accommodate future traffic growth in the port, however it is already cramped as it is. When trains arrive it is like a wall. The same applies when boats are unloaded”.
CMP has been designated a core, i.e. main port, by the EU. This means that CMP constitutes an important part of the EU's infrastructure, but also of the national infrastructure policy. It is of major importance that the Swedish Government prioritises the infrastructure for core ports if the ports are to be able to meet future requirements.
CMP is part of the ScanMed Transport Corridor, which links Scandinavia and the Mediterranean. The route passes through Finland, Sweden, Norway, Denmark, Germany, Austria, Italy, Sicily and Malta.
Pat Cox, coordinator for ScanMed, visited CMP for talks on CMP's ambitions to further strengthen its role as a core port.
"The Scandinavian-Mediterranean Core Network Corridor is the spine in European transport. It connects seven Member States and crosses regions, which generate more than 27 % of EU's GDP. The Copenhagen Malmö Port is one of the Core Ports on this Corridor. During my visit, I expect to learn more about its needs and challenges, supported by practical examples. We must secure our ambitious European goals of competiveness, sustainability and development, by investing in the best possible sea- and land connections”, says Pat Cox, European coordinator for the ScanMed Corridor.
The flows of freight are absolutely decisive for flexible and cost-effective transportation. The ScanMed Corridor utilises the existing infrastructure effectively, taking into account both local shipping and ocean-going vessels.
"We are naturally very pleased that Mr. Cox has made it a priority to discuss with us CMP's conditions in terms of future contributions to the development of the European transport system. With our geographic location in combination with other important aspects such as the fact that we have the potential to expand, we can adapt to the requirements of the surroundings in the future too. It strengthens our role as a core port. It creates major opportunities, not just for us, but also for Malmö, Copenhagen and for the Baltic region as a whole”, says Johan Röstin, CEO of CMP.
Besides Pat Cox and Menno van der Kamp representing the European Commission, Johan Röstin, CMP, Marina Fransson, Ministry of Enterprise and Innovation, Gert Nørgaard, CMP, and Björn Larsson, CMP, also participated during the visit.
Consolidating development opportunities and objectives for the European transport system was on the agenda when Copenhagen Malmö Port, CMP, received Pat Cox from ScanMed. Being a core port further strengthens CMP's role in the development of Europe's infrastructure.
Björn Larsson, CMP, Marina Fransson, Ministry of Enterprise and Innovation, Johan Röstin, CMP, Pat Cox, ScanMed, Gert Nørgaard, CMP and Menno van der Kamp, ScanMed on a study visit in Norra Hamnen, Malmö.
its role as a core port
On Board Check In increasing
Growth market China
Read more about CMP at www.cmport.com
As in previous years, cruises are the obvious theme for this year’s second issue of CMP News. The arrival of spring has also brought the arrival of cruise ships at CMP. This year it involves a total of 302 arrivals, confirming our position as a leading cruise destination in Northern Europe. The fact that we are still a leader is also borne out by the awards that both CMP and Copenhagen have won – most recently in 2014 when we were named ”Port of the Year” and ”Best Baltic Port”. The awards feel especially stimulating as 2014 was also the year when we opened our new cruise terminal in Copenhagen.
After the initial year, it is accordingly time to welcome new passengers and crews to our modern and efficient facilities, which we say more about in this issue of CMP News. The new features include the fact that the traffic situation in and around the terminal area is being improved in 2015. For example, Ocean Quay has gained a fast, new bus connection which will enhance accessibility.
Our cruise operation makes us part of a network of professional actors which – with their respective specialist services – contribute to making the shipping companies, crews and passengers feel at home and happy to return to Copenhagen and Malmö. We meet some of these specialists in this issue. In different ways they provide a pointer to all the facilities and services that enable the complex cruise tourism to function smoothly. We also say more about the On Board Check In concept, which was launched last year and which even more shipping lines have decided to go for in 2015. In recent years, Malmö has also established itself as a cruise destination. This year the number of arrivals is increasing, with 34,000 cruise tourists visiting Skåne’s capital. We are proud that we can offer more destinations and continue to put a lot of energy into refining and further developing the cruise operation in both Copenhagen and Malmö.
Enjoy the read!
Johan Röstin, CEO of CMP
CMP News is distributed by Copenhagen Malmö Port AB (CMP).
Editor: Johan Röstin.
Writers: Nils Francke, Kajsa Jacobsson, Fredrik Lilieblad and Lotta Solding.
Contact address: CMP, Terminalgatan 18, Box 566, 201 25 Malmö, Sweden.
CMP, Containervej 9, Box 900, 2150 Nordhavn, Copenhagen, Denmark.
Cruise tourism – a sure
sign of spring
CMP News is distributed by Copenhagen Malmö Port AB (CMP).
Editor: Johan Röstin.
Writers: Nils Francke, Kajsa Jacobsson, Fredrik Lilieblad and Lotta Solding.
Contact address: CMP, Terminalgatan 18, Box 566, 201 25 Malmö, Sweden.
CMP, Containervej 9, Box 900, 2150 Nordhavn, Copenhagen, Denmark.