Page 41: of Maritime Reporter Magazine (February 1999)

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CRUISE SHIPPING REVIEW • Dollars & Cents

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Maritime Reporter/Engineering News

Princess Cruises Helps

Steady P&O In '98

While the general shipping mar- ket took a considerable beating during the past year — due in large to perennially low freight rates in the oil transport, drybulk and container sectors —

Peninsular & Oriental Steam

Navigation Co.'s diversification, particularly its Princess Cruises

Division, helped maintain a sem- blance of stability. As of December 31, 1997, the Princess Cruise

Division accounted for 26 percent of the group's net operating assets, a figure which is anticipated to increase.

It was quite a year for Princess, marked by the introduction of the world's largest cruise ship (for now, at least) in the spring. Although

Grand Princess' debut was slightly delayed by last minute, customer- mandated modifications, it has made quite a splash in an industry which is notorious for its one-ups- manship. The $430-million ship helped increase Princess Cruises' capacity in the third quarter of 1998, as it ran 100% filled (2,600 berths) for the entire quarter. 3rd Quarter Year to Date 1998 1997 1998 1997

Princess Cruises 1,230,506 1,129,768 3,234,654 3,041,868

P&O Cruises (U.K.) 352,382 362,840 1,058,186 1,115,160

Capacity Achieved (pbd's) 3rd Quarter Year to Date 1998 1997 1998 1997

Princess Cruises 1,245,733 1,130,586 3,246,027 3,035,783

P&O Cruises (U.K.) 356,366 366,490 1,036,035 1,076,510

Load Factors (%) 3rd Quarter Year to Date 1998 1997 1998 1997

Princess Cruises 101.2 100.1 100.4 99.8

P&O Cruises (U.K.) 101.1 101.0 97.9 96.5 pbd = passenger berth days.

Growing The Goliath

Led by the ubiquitous Richard

Fain, Royal Caribbean has embarked on a fleet expansion of historic proportions, as it will add four ships and 10,000 berths in the first two years of the new millenni- um, including the world's first gas turbine powered cruise ship.

It will soon add to its line-up the world's largest cruise ship, regain- ing the title held by Princess

Cruises.

The $500-million Voyager of the

Seas, measuring 1,020 ft. (311 m) and 142,000 tons, is currently under construction at Finland's

Kvaerner Masa Yards' Turku facil- ities and appears to be on schedule for an October 1999 delivery. The company currently has firm con- tracts for two additional Eagle class ships, but has indicated that its Eagle fleet could number six.

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