World's First Floating Resort Scheduled To Set Sail In 2001

Friday, October 01, 1999
The world's first ocean-going luxury resort is scheduled to be afloat late in 2001 now that Bahamas-registered ResidenSea has secured financing and found a builder, company officials said. The vessel for the rich, dubbed The World of ResidenSea, was conceived four years ago by Norwegian cruise magnate Knut Kloster Jr. "After four years of an uphill struggle...we have finally made it," Henning Oeglaend, chairman of the board of ResidenSea, said at a ceremonial contract signing in Oslo with the ship's Norwegian-based builder, Fosen Mek. Verksteder AS. Flagging cruise line share prices, coupled with turmoil in the world financial market over the past few years prompted the firm to cut the size and cost of the ship to 40,000 tons at $350 million from an initial 86,000 tons at $545 million. "It's no secret financing this project has been a challenge," Oeglaend said. "I have to admit we have had a number of scary moments when [we thought] the whole thing was going to collapse, but the future is great for this product." Oeglaend reiterated ResidenSea was fully financed to cover the $350 million needed, partially by investors from the cruise, shipping and hospitality industries. Additional investment capital would come from U.S.-based Continental Casualty Company, a wholly owned subsidiary of CNA Financial Corp. and an indirect subsidiary of the Loews Corp., as well as from the ultra-deluxe cruise line Silversea Cruises Ltd. The firm in June 1998 ditched a plan to have an initial public offering of $190 million via the Oslo bourse. Oeglaend said that the company was planning a $60 million equity issue but did not specify any details. "Our plan is to list the company, to make it public. We haven't decided when yet but as soon as it is practically possible," he said, adding "it is definitely on the agenda because we plan to build more ships." He said ResidenSea had selected Fosen shipyard for the $262 million building contract over Germany's Howaldtswerke-Deutsche Werft because the German yard could not comply with the scheduled target date for delivery.
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Höegh Names SSL as its Agent in Finland

Höegh Autoliners appointed Scandinavian Shipping & Logistics, which has already worked with the Norwegian ocean carrier in Sweden and Norway for several years, as its agent in Finland, effective Dec.

Volvo Ocean Race Partners with Yacht Racing Forum

The Volvo Ocean Race has agreed a three-year partnership with the Yacht Racing Forum.   "We are delighted to welcome the Volvo Ocean Race as a long-term partner,

Danelec Marine Expands in Brazil

Press release - Danelec Marine has announced that it is expanding its presence in Brazil by naming Telnav Telecomuniçacões Navais a Certified Service Center. With

Cruise Ship Trends

Abu Dhabi Ports Welcomes New Cruise Season

As Abu Dhabi's new Zayed Port cruise terminal opens by the end of this year, the number of cruise ships docking in Abu Dhabi is set to increase by a fifth this season, reports the National.

Cruise Critic Awards Best Cruise Lines of 2015

Online cruise guide Cruise Critic has announced the winners of its annual Editors' Picks Awards for 2015, revealing the industry's top performers in a variety of different categories.

Becker Marine, Kotug Sign MOU for LNG Hybrid Barge

Press release - Becker Marine Systems and KOTUG signed a Memorandum of Understanding to launch a LNG Hybrid Barge in the Port of Rotterdam with effect from June 2017.

Maritime Careers / Shipboard Positions Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1345 sec (7 req/sec)