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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Cruise Ship Trends

China Homeport for Latest Giant RCI Cruise Ship

Royal Caribbean International says that its latest cruise ship, 'Quantum of the Seas', will make its home port in Shanghai (Baoshan), China The ship will reposition to China in May 2015,

Holland American Line donates $100,000 to Desmond Tutu Peace Foundation

In honor of Archbishop Emeritus Desmond Tutu’s work to spread peace, justice and democracy around the globe, Holland America Line has made a $100,000 donation to

Cruise Industry Disappointed by Findings of Critical LMU Report

New research by the UK's Leeds Metropolitan University (LMU) claims the cruise industry is ignoring its responsibility to the environments and societies it visits.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
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: 0.1149 sec (9 req/sec)