Concordia Disaster to Cost Owners More than $2b

Posted by Eric Haun
Tuesday, July 08, 2014
Photo courtesy of the Parbuckling Project

The Costa Concordia disaster, when the cruise liner capsized off Italy more than two years ago, will likely end up costing the ship's owners just over $2 billion (1.5 billion euros), a company executive told a German newspaper.

"So far, our costs are at 1 billion euros. But that does not include 100 million for the ship to be broken up for scrap and the cost of repairing damage to Giglio island," Michael Thamm, chief executive of Costa Crociere - a unit of Carnival Corp and operator of the ship - told weekly Bild am Sonntag.

The disaster dealt a blow to the image of Carnival, the world's largest cruise operator, which in March forecast an annual profit below analysts' estimates as it cut prices and spent more on advertising to attract customers.

Luxury liner Costa Concordia hit rocks as it sailed close to the island of Giglio off Tuscany in January 2012, killing 32 people and setting off a chaotic evacuation of crew and passengers, some of whom jumped into the sea and swam ashore.

The hulk of the 290-metre ship was righted and secured in a complex operation last September and, with the arrival of calm summer weather, is due to be towed to Genoa to be broken up for scrap in the coming days.

"If everything goes well, we can complete this unprecedented salvage project this month," Thamm told Bild am Sonntag in an interview published on Sunday, adding he expected recycling of the ship to take almost two years.

Thamm said Costa Crociere managed to retain 95 percent of its customers following the ship's sinking, thanks in part to "significant" discounts. Some 50 to 60 percent of Costa Concordia's surviving passengers have since taken another cruise with the company, he added.

($1 = 0.7331 Euros)

(Reporting by Maria Sheahan, editing by William Hardy)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Silversea Cruises Plans New Flagship

Cruise operator Silversea Cruises has unveiled its new flagship, the Silver Muse, which will begin sailing the seas in April 2017.    Built by Italian shipbuilding company Fincantieri,

Silversea Cruises Orders Luxury Ship from Fincantieri

Shipbuilder Fincantieri has received an order to build a new luxury cruise ship for client Silversea Cruises due for delivery in April 2017.    At 40,700 grt and accommodating 596 guests,

Confidence Low in Shipping Idustry

Confidence levels in the global shipping market have fallen to a seven-year low as a glut of cargo ships, weak freight rates and excess liquidity continue to batter the industry,

Finance

Grimaldi Orders Three PCTCs

After signing an order for the construction of five new ships two weeks ago, the Italian shipowner  Grimaldi Group has signed another contract for the construction

Caltex Replaces Australian Crew

The 36 Australian crew members of an Caltex tanker refusing to set sail after they were told their jobs would be gone after the next run. MR tanker Alexander Spirit (40,

Teekay LNG Partners Declares Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended June 30, 2015. The cash distribution is payable on August 14,

News

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

AVEVA, DNV GL's Sesam Integration Cuts Cost

Integration of Aveva and DNV GL's Sesam Reduces Costs in Maritime and Offshore Engineering. Engineers designing ship hulls and offshore floaters can now save

FORAN for Pertamina's Future Ships

FORAN has been chosen by state-owned company PERTAMINA to review the design of their future oil product carrier ships, under construction in a shipyard with the FORAN System.

 
 
Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators
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: 0.1305 sec (8 req/sec)