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

Cruise Ship Trends

Holland America Line Wins Sparkie Award

At a March 5 reception at the Seattle Waterfront Marriott, Holland America Line was presented with a Sparkie Award by the United Way of King County, Washington.

Costa Concordia Used For Mafia Drug Smuggling

The doomed Costa Concordia was carrying a huge shipment of Mafia-owned cocaine when it set off on its final voyage, AP reports quoting investigators who have collected evidence.

Viking Enters Ocean Cruise Industry

Viking Ocean Cruises has announced it took delivery of Viking Star, marking the company's official arrival into the ocean cruise industry.   The delivery ceremony

Finance

MOL President Reports Slack Performance

MOL President, President, Koichi Muto reported that the performance of the company was slack. Presenting his report he stated:  I am sad to report that our business performance fell short,

Holland America Line Wins Sparkie Award

At a March 5 reception at the Seattle Waterfront Marriott, Holland America Line was presented with a Sparkie Award by the United Way of King County, Washington.

Knightsbridge Shipping, Golden Ocean Merger wrap up

Knightsbridge Shipping Limited has completed its previously announced merger with Golden Ocean Group Limited. In connection with the closing of the merger,

Salvage

Costa Concordia Used For Mafia Drug Smuggling

The doomed Costa Concordia was carrying a huge shipment of Mafia-owned cocaine when it set off on its final voyage, AP reports quoting investigators who have collected evidence.

USCG Rescues 9 from Canadian Tall Ship

Coast Guard search and rescue crews from Station Gloucester, Air Station Cape Cod and the Coast Guard Cutter Ocracoke rescued nine crewmembers from the Canadian

Smoke: Cruise Ship Evacuates Passengers

A number of passengers and crew members were evacuated after smoke was spotted billowing from the front section of Carnival Liberty cruise ship docked in the Dutch Caribbean nation of St Maarten.

Casualties

WaPo: Two German CEOs Launching Own Mediterranean Rescue

The Washington Post has a story today about two German men who are launching their own rescue mission to save migrants crossing the Mediterranean.   Harald

USCG Rescues 9 from Canadian Tall Ship

Coast Guard search and rescue crews from Station Gloucester, Air Station Cape Cod and the Coast Guard Cutter Ocracoke rescued nine crewmembers from the Canadian

U.S. Oil Train Traffic mostly from Midwest to East Coast

U.S. oil trains delivered more than 13.5 million barrels of crude oil from the Midwest to the East Coast in January, according to government data that gives a first

News

Largest Vessel to Call ICTSI, Rijeka

Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.’s (ICTSI) container handling facility in the Port of Rijeka, Croatia,

MOL President Reports Slack Performance

MOL President, President, Koichi Muto reported that the performance of the company was slack. Presenting his report he stated:  I am sad to report that our business performance fell short,

Holland America Line Wins Sparkie Award

At a March 5 reception at the Seattle Waterfront Marriott, Holland America Line was presented with a Sparkie Award by the United Way of King County, Washington.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1951 sec (5 req/sec)