American Classic Voyages Co News

Finnish technical consultancy Deltamarin, in characteristically innovative style, is breaking new ground with the development of new computer-based services encompassing safety simulation and risk assessment, knowledge management and life-cycle support. Its latest endeavors form the basis of what it describes as contemporary configuration engineering and management, and extend the role and business scope of a practitioner of the latest technology tools in marine design, engineering and production. Armed with new methodologies and products, which offer a seamless link from the design and construction period into the post-delivery stages…

Finnish technical consultancy Deltamarin, in characteristically innovative style, is breaking new ground with the development of new computer-based services encompassing safety simulation and risk assessment, knowledge management and life-cycle support. Its latest endeavors form the basis of what it describes as contemporary configuration engineering and management, and extend the role and business scope of a practitioner of the latest technology tools in marine design, engineering and production. Armed with new methodologies and products, which offer a seamless link from the design and construction period into the post-delivery stages…

Litton Ship Systems' Ingalls Shipbuilding division, located in Pascagoula, Mississippi, has signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc., based in Hollywood, Fla. Under the MOA, Litton and SeaAmerica will develop a ship design leading to contract negotiations for the construction of two 42,000-ton, 1,000 passenger cruise ships. The program will include options for two additional ships. Construction of the cruise vessels would utilize both of Litton Ship Systems' production facilities — Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in metro New Orleans, La., and maximizing the resources and experience of both shipyards to achieve operating synergies.

American Classic Voyages Co., which is currently engaged in a high-profile effort to build cruise ships in the U.S., recently provided financial information on its expansion plans and its outlook for 2001. The 1,212-passenger ms Patriot, the first ship in American Classic Voyages' United States Lines fleet, just completed a $21 million refurbishment at Cascade General Shipyard in Portland, Oregon. The ship is in Los Angeles for the beginning of a series of inaugural activities that will introduce 6,000 travel agents to United States Lines. The ms Patriot will begin its permanent seven-night Hawaiian Island itinerary with its inaugural cruise on December 9.

American Classic Voyages Co., which is currently engaged in a high-profile effort to build cruise ships in the U.S., recently provided financial information on its expansion plans and its outlook for 2001. The 1,212-passenger ms Patriot, the first ship in American Classic Voyages' United States Lines fleet, just completed a $21 million refurbishment at Cascade General Shipyard in Portland, Oregon. The ship is in Los Angeles for the beginning of a series of inaugural activities that will introduce 6,000 travel agents to United States Lines. The ms Patriot will begin its permanent seven-night Hawaiian Island itinerary with its inaugural cruise on December 9.

American Classic Voyages Co. subsidiaries Delta Queen will trim its upcoming cruise schedule by a combined total of 27 cruises. Delta Queen Coastal Voyages will eliminate three cruises in 2001. Also, the 2002 summer and fall schedule of the 174-passenger Delta Queen will be enhanced to meet passenger demand for more variety. Moody's Investors Service confirmed the A2 senior ratings of Carnival Corporation, but changed the rating outlook to negative reflecting the uncertain economic and industry conditions that the company faces in the wake of the attacks on the U.S. Moody's believes the events of September 11 will further stress industry conditions that were already suffering from price weakness.

The Ship of the Year Award honors a vessel that has made or is making a major contribution to the purpose of the society. The winner of the 2000 award is the Independence of American Hawaii Cruises, which is now nearing her 50th anniversary in service. After serving on the Atlantic for 17 years, Independence has spent the last 21 years successfully sailing in the Hawaiian Islands. Independence, and her sister Constitution, was the American alternative to the Italian Line ships that dominated the New York to Italy service in the 1950's. Independence was built for the American Export Line in 1951 at the Bethlehem Steel Company yard in Quincy, Mass. She was built with a gross tonnage of 30,293, a length of 683 ft., width of 89 ft. and a service speed of 23 knots.

Litton Ship Systems' Ingalls Shipbuilding division, has signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc. to develop a ship design leading to contract negotiations for the construction of two 42,000-ton, 1,000 passenger cruise ships. The program will include options for two additional ships. Construction of the cruise ships will utilize both of Litton Ship Systems' production facilities - Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in metro New Orleans, Louisiana, and maximize the resources and experience of both shipyards to achieve operating synergies. "SeaAmerica anticipates receiving MARAD Title XI financing for our new program,'' said David W. Turner, SeaAmerica chairman and chief executive officer.

American Classic Voyages Co. has appointed Scott G. McGinnis vice president of marketing for its Delta Queen product group, which includes Delta Queen Steamboat Company and Delta Queen Coastal Voyages. McGinnis is responsible for all marketing activity on behalf of Delta Queen Steamboat Company's four riverboats, which cruise throughout the U.S. Heartland, South and Pacific Northwest, and Delta Queen Coastal Voyages' two ships, inaugurating 12 coastal vacation itineraries throughout the Americas this year. McGinnis joins AMCV after six years with the travel agency consortium Virtuoso, where he most recently served as the managing director for member relations.

Compelling design and operational arguments in favor of podded electric drives can be expected to transcend any negative impressions formed from the recent clutch of problems and complications experienced with such systems in certain cruise ship and ferry applications. Experience has shown that technical innovation in the maritime field has invariably been accompanied by early setbacks in some shape or form. In an industry where conservatism is the order of the day, and understandably so where assets are subjected to the rigors of the elements as well as the vicissitudes of the markets, those operators willing to be the standard bearers with new technology provide a beacon for the wider maritime community.

Ingalls Shipbuilding division of Litton Industries, Pascagoula, Miss., and American Classic Voyages Co. (AMCV), Chicago, have signed a contract for the construction of the first major cruise ships to be built in the U.S. in more than 40 years. Under the terms of the "Project America" contract, which has a potential value of $1.4 billion for three ships, Ingalls will initially build two 1,900 passenger cruise ships for AMCV, with an option for a third vessel. As many as six ships could ultimately be built in the Project America program. These will be the largest cruise ships ever built in the U.S., with the first scheduled to enter service in early 2003. Ingalls delivered the last American-built large cruise ships, SS Brasil and SS Argentina, both of which are still in service.

KCI Konecranes has won the contract to supply one of the world's largest cranes to Ingalls Shipbuilding, Pascagoula, Miss. The crane, in a category known as Goliath due to its massive size, is one of fewer than 100 in the world. Eighty percent of the Goliath cranes built in the past decade have been built by KCI Konecranes. Ingalls has announced a major facility refit program that will directly benefit a variety of shipbuilding programs for Ingalls military and commercial customers. The shipyard recently was contracted to build the first cruise ships in the U.S. in more than 40 years for American Classic Voyages, Co. Under the terms of the contract, with a potential value of $1.4 billion for three ships, Ingalls will initially build two 1,900 passenger cruise ships.

The Maritime Port Council of Greater New York and Vicinity has jointly honored Philip Calian, CEO of American Classic Voyages Co. (AMCV), and Jerry St. Pé, COO of Litton Ship Systems, with the Council's Man of the Year Management Award for 1999. Calian and St. Pé were recognized for their roles in returning the construction of major, ocean-going passenger ships back to the U.S. Litton Ingalls Shipbuilding, Pascagoula, Miss., is building two 1,900-passenger state-of-the-art cruise ships for AMCV in the Project America program, with an option for a third vessel. The new cruise ships will sail under AMCV's new brand United States Lines, one of the most storied names in the history of ocean-going passenger transportation. The program has a total potential value of $1.4 billion.

First Wave/Newpark Shipbuilding, in Galveston, Texas, has had a busy spring. First, the company was awarded a contract by Diamond Offshore Drilling to install a crane and perform annual survey work on Ocean Lexington. That contract was completed in March. Next, the company won a contract from Smit Americas, Inc. for drydocking of Ocean Hercules. The vessel was drydocked on the shipyard's 7,500-ton drydock for general maintenance and conversion from a seismic vessel to a telecommunication cable laying vessel. Finally, First Wave drydocked Pride Louisiana for Pride Offshore. The rig was docked in the Galveston Ship Channel, utilizing a heavy lift barge for an annual survey. The rig will depart upon completion of the survey.

Litton Ingalls Shipbuilding signed a Memorandum of Agreement (MOA) with SeaAmerica Cruise Lines, Inc., based in Hollywood, Fla. Under the MOA, LSS and SeaAmerica will develop a ship design leading to contract negotiations for the construction of two 42,000-ton, 1,000-passenger cruise ships. The program will include options for two additional ships. Construction of the ships would utilize both of Litton Ship Systems' production facilities, Litton Ingalls Shipbuilding in Pascagoula and Litton Avondale Industries in New Orleans, and would maximize the resources and experience of both shipyards to achieve operating synergies. Accommodations will include 87 percent outside cabins (most with private balconies)…

The Department of Transportation Office of Inspector General (OIG) issued its Report on the Audit of the Title XI Loan Guarantee Program The audit examined whether proper procedures were followed and the impact of recent bankruptcies. As of December 2002, the Title XI portfolio totaled approximately $4.3 billion in executed loan guarantees and loan guarantee commitments. The report discussed the impact of the American Classic Voyages Co. (AMCV) bankruptcy ($1.3 billion in loan guarantees) and potential problems with loan guarantees to companies that are subsidiaries of Enron Corporation ($122 million in loan guarantees). The OIG recommends…

"Very poor weather, major repairs to a lock on the Gulf Intracoastal Waterway and rapidly escalating fuel prices, not lower business levels, are the factors causing Kirby to revise its first quarter forecast," were a few reasons that Joe Pyne, Kirby Corporation's President CEO, cited for the company's lowering of its earnings guidance for the 2003 first quarter to $.26 to $.30 per share from previous guidance of $.36 to $.40 per share. Navigational delays due to fog along the Gulf Coast, both high and low water issues on the Mississippi River, and major repairs to a critical lock on the Gulf Intracoastal Waterway, have resulted in increased transit times. Navigational delays increase transit times, which reduce revenues and increase operating expenses.