CCL, ABB Reach Settlement on Propulsion System

Friday, January 26, 2001
Carnival Corp. (CCL) and ABB Industry Oy, Marine Group, a unit of the ABB Process Industries, reached a settlement in December regarding a malfunction in the propeller bearing system of one of the Azipod propulsion units that occurred last July on Carnival Cruise Lines' cruise ship, Paradise. CCL currently has Azipod propulsion installed on three of its cruise ships with similar systems ordered for three additional vessels. Holland America Line has also ordered Azipod systems for five cruise vessels. Carnival Corporations European cruise operator, Costa Cruises, also has Azipod units on the Costa Atlantica with plans for a unit on another vessel, as well. ABB was the first to commercially develop electric azimuthing pod propulsion in cooperation with Kvaerner Masa-Yards of Finland, and currently has an extensive experience with this technology. It has become a standard in the cruise industry and is increasingly being adopted by the marine industry in general. Since its introduction in 1990, various cruise and shipping operators have ordered more than 70 Azipod units.
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