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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Samil PwC Okays Hyundai's Management Improvement Plan

Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement

Volvo Penta Names Brown Commercial Marine Sales Director

Dave Brown has joined Volvo Penta of the Americas as director of commercial marine sales.   In this new position, Brown will provide strategic and administrative

Romica Manufacturer Secures DNV GL Approval

U.K. winch maker Romica said it is to “redouble its exports drive” after its Romania-based manufacturing partner successfully acquired accreditation with DNV GL.

Cruise Ship Trends

China to Add 8 Cruises to Push Tourism in South China Sea

Three State-owned enterprises from the shipping, tourism and construction sectors will cooperate to equip up to eight cruise liners and offer diversified sightseeing

RINA Awards Carnival Maritime with Environmental, Safety

RINA recently awarded Carnival Maritime GmbH ISO 14001 and BS OHSAS 18001 certificates.   Now the Carnival Maritime office in Hamburg as well as 26 ships in

40% Cruise Ships Use Outdated Sewage Treatment Plants

ACO Marine has welcomed the findings reported in the Friends of the Earth 2016 Cruise Ship Report Card, the annual survey of cruise shipping’s impact on the environment,

 
 
Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Simulators 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: 0.0848 sec (12 req/sec)