Port & Destination Association Development

CRUISE BALTICOne Sea – Oceans of adventuresInternational Cruise Summit – Madrid – October 2013 Director Cruise Baltic & Cruise Copenhagen NetworkBo Larsen bnl@woco.dk

Cruise Copenhagen

Cruise Baltic

Agenda

i. NEWS - Skagen- Copenhagen- Malmö

ii. Challenging Legislative Environment - Port Service Standards- Waste Reception Study - ECA 2015

iii. Economic Impact Studies

iv. Guest Satisfaction

NEWS

Cruise Baltic Port number 28

Ocean Quay in Copenhagen

Malmö, Sweden

“Boutique Destination”

5-6 annual calls last 10 years

Interesting tour options

Geographical phenomena

New pier available 2015

Skagen, Denmark Destination number 28

New Pier 2015 Skagen, Denmark

Copenhagen, Denmark New Ocean Quay - 2014

• Width 70 m - operation area 18 m• Water depth 10 m• Parking area for 200 cars • Adequate waste reception facilities

New Ocean Quay – 2014 $ 100 million investment

New Ocean Quay – 2014 1.1 km. new pier7 km. to city hall square

New Ocean Quay – 2014 3 terminal buildings each 3.300 sqm

Malmø, Sweden

Malmø, Sweden

Aarhus, Denmark

Historical Perspective

2008

• 11 new ships • Headlines: Shipbuilding• Dialogue: New exciting destinations• CB: Marketing to travel agents • Baltic: +20.5% - 3.1mill guests

2013

• 6 new ships • Headlines: Regulation• Dialogue: Efficient itineraries• CB: Cruise Line Collaboration • Baltic: +4.7% - 4.3mill guests

Challenging Environment

• New Regulations - Waste Reception - ECA

• Fuel Costs

Cruise Baltic Port Service Standards

Cruise Baltic Port Service Standards

Launched in MarseillesNovember 2012

BackgroundA lot of various “marketing standards” in our industry

Extremely positive feedback as it results in:

- Efficiency among cruise line operators

- Benchmark and competition within Baltic ports

Cruise Baltic Port Service Standards

Launched in MarseillesNovember 2012

BackgroundA lot of various port “marketing standards” in our industry

This tool is different and created to create:- Efficiency among cruise line operators - Benchmark and competition within Baltic ports

Facts: Evaluation of each Baltic pier Made in collaboration with CLIA and operators New updates twice yearly

Cruise Baltic Port Service Standards

Essential – 17 different standards – examples:Pilotage service availableCleared and well signaled entrance / exit and from the pierBunkers available

Desirable – 6 different standards – examples:Designated and marked parking spaces for vehiclesFixed sign / map of the port with directions between port and city

City maps available at pier

Cruise Baltic Port Service Standards

Evaluation of each Baltic pier Made in collaboration with CLIA and Cruise Line Operators New update twice yearly Latest update: pictures of each pier and new rating system

Cruise Baltic Port Service Standards

Reception Facilitiesoperational compliance strategy

Background

• The implications and expectations of new legislation not fully explained

• Revised annex V special area requirements for the Baltic requires information. - Cruise ship operators vs. the port waste reception facilities

• Cruise Baltic as a respected port association should get involved

Potentially become part of Cruise Baltic Port Service Standards

Processexample of the relevant stakeholders

Port Reception Facilitiesoperational compliance strategy

Three phases: 1. Template and information retrieval2. Pilot test on one major port 3. Evaluation on all other ports

Phase OneDetailed information retrieval on the Baltic Ports including but not limited to prior studies, resulting in a template and methodology with questionnaire on adequacy. Phase twoRoll out a template and procedures to one major Baltic port. Any findings and feedback will be examined and if appropriate incorporated in thefinal methodology with questionnaire on adequacy. Phase threeThis will involve ALL other ports within Cruise Baltic, where the methodology will be used to determine the Adequacy and any missing components via a Gap Analysis.

Phase 1 template and information retrieval

Name of Cruise Port

Cruise Terminal Reference

Receiving Station Information

Direct Shore Connection

Maximum Flow Rate

Standard Connection Barge Maximum Flow

RateStandard

Connection Tank Trucks Maximum Flow Rate

Standard Connection Sewage Receiving Bio-Residue

ReceivingFats & Oil Receiving

Food Waste Reject Water Receiving

Copenhagen Gdansk Gdynia Helsinki Helsinki Kalmar

Karlkrona Kemi

Klaipeda Kotka

Malmo Mariehamn

Ronne Rostock

Saaremaa Sassnitz

22 different criteria per pier in each port

Receiving Station information e.g. Administration e.g.

Direct shore connection Port waste management plan

Maximum flowrate Port reception facilities database completed

Standard connection Advanced notification form circ 644a implemented

Barge No special fee system

Tank trucks Inadequacy reported

Sewage receiving………. Inadequacy report cleared……….

Instructions on each of the 22 criteria

Name of Cruise Port

Cruise Terminal Reference

Receiving Station Information

Direct Shore Connection

Maximum Flow Rate

Standard Connection Barge Maximum Flow

Rate

Copenhagen

Insert each individual Terminal

Reference number or name.

Insert Yes or No if the Terminal has

Direct Shore Connenctions

available for the maximum

number of Cruise Ships

Define the lowest of the maximum flow rates from the Direct Shore

Connections avaible at the

Terminal

Insert Yes or No if each Direct Shore Connections have

Standard Connections available in

accordance with MARPOL

Regulation

Insert Yes or No if the Terminal uses Barges as part of

the PRF.

Define the lowest of the maximum flow rates from

the Barge Facilities avaible at the Terminal

GdanskGdyniaHelsinkiHelsinkiKalmar

KarlkronaKemi

KlaipedaKotka

MalmoMariehamn

RonneRostock

SaaremaaSassnitz

StockholmTallinTurkuVisby

Phase 1 - template and information retrieval

Direct Shore Connection

Maximum Flow Rate

Standard Connection

BargeMaximum Flow

RateStandard

ConnectionTank Trucks

Maximum Flow Rate

Inse

rt Y

es o

r No

if th

e Te

rmin

al h

as D

irect

Sho

re C

onne

nctio

ns

avai

labl

e fo

r the

max

imum

num

ber o

f Cru

ise

Ship

s

Defin

e th

e lo

wes

t of t

he m

axim

um fl

ow ra

tes

from

the

Dire

ct

Shor

e Co

nnec

tions

ava

ible

at t

he T

erm

inal

Inse

rt Y

es o

r No

if ea

ch D

irect

Sho

re C

onne

ction

s hav

e St

anda

rd

Conn

ectio

ns a

vaila

ble

in a

ccor

danc

e w

ith M

ARPO

L Reg

ulati

on

Inse

rt Y

es o

r No

if th

e Te

rmin

al u

ses

Barg

es a

s par

t of t

he P

RF.

Defin

e th

e lo

wes

t of t

he m

axim

um fl

ow ra

tes

from

the

Barg

e Fa

ciliti

es a

vaib

le a

t the

Ter

min

al

Inse

rt Y

es o

r No

if ea

ch B

arge

Fac

ility

has

Stan

dard

Con

necti

ons

avai

labl

e in

acc

orda

nce

with

MAR

POL R

egul

ation

Inse

rt Y

es o

r No

if th

e Te

rmin

al u

ses T

ank

Truc

ks a

s par

t of t

he

PRF.

Defin

e th

e lo

wes

t of t

he m

axim

um fl

ow ra

tes

from

the

Tank

Tr

uck

Facil

ities

ava

ible

at t

he T

erm

inal

Stockholm’s 10 different facilities…………..

Direct Shore Connection

Maximum Flow Rate

Standard Connection

No Special Fee System

ImplementedStockholm Bouy1 YesStockholm Frihamnen634 yes 300 Yes YesStockholm Frihamnen638 yes 300 Yes YesStockholm Frihamnen650 yes 300 Yes YesStockholm Nybroviken5 No YesStockholm Nynashamnbouy No YesStockholm Stadsgarden160 Yes 100 Yes YesStockholm Stadsgarden167 yes 300 Yes YesStockholm Skeppsbron106 Yes 50 Yes YesStockholm Värtahamnen523 Yes 50 Yes Yes

Receiving Station InformationName of Cruise

PortCruise Terminal

Reference

Phase 2 pilot test on one major port

Phase 3

• After having evaluated Stockholm, we expect to deliver gap analysis in June 2014

Port Reception Facilitiesoperational compliance strategy

Objective • IMO procedures need to be modified and in alignment with special areas

• Ongoing activities and information retrieval within the ports- through a collective partnership and not through a fragmented methodology.

Port authorities

Regulators Waste

receptioncompanies

Cruise Ship Owners

Deployment impact of ECA 2015

No easy answer…………….

• Many different operators – Many different strategies

Emission Control Area 2015

• Many different operators – Many different strategies:- Different source markets - Fly-Cruise (US, Italy, Spain, France) - EX-UK-Germany-Holland cruising- Large vs. Small operators - Ship efficiency and technology - Destination focused ships - Competitive considerations based on market share/source markets

+ Cost of fuel in St. Petersburg…………..

Emission Control Area 2015statements from operators

“Deployment 2015 is not fully closed yet, but plans are currently similar to 2014 regarding number of port, calls and itineraries”

“We will reduce capacity in NE, but not in the Baltic. We will slow down ships in ECA, but increase length of stay in ports. We have ships that are less effected by ECA and we are still in the process of making that puzzle”

“Not final decision yet. We may remove one ship in 2015, but that decision is not linked to ECA”

“2015 won’t be much different to 2013, 2014. Looking at scrubber solution before we can confirm future deployment”

Emission Control Area 2015

“We may have to skip the Baltic for the 2015 season due to our tonnage. We would like to offer the Baltic to our guests again in 2016 though”

“We will continue with ”X ship” again in 2015, but in addition to our Baltic Sea Cruises we may offer a few Norwegian cruises as well.

We finalize deployment early November”

“We will finalize Baltic itineraries for 2015 at a meeting tomorrow and I expect that the Baltics will come out better than 2014 despite ECA regulations”

“We will certainly be trading in the Baltic in 2015. We have just started the process of scheduling, and I will get back asap with an

indication, since impact of the ECA is still being worked out”

“2015 is still in discussion – i.e. I don’t have proper numbers so far. But I don’t expect major changes in volume”.

Helsinki, Finland

Economic Impact Studiesvital strategic tool

Arendal

Aalborg Riga

Kiel

Outcome:A. SpendingB. Jobs createdC. Guest satisfaction

Results: • Changed political focus• Increased investments in cruise networks• New products • Infrastructure investments

Total Baltic impact study:• Primo 2014

• 80% of the guests have very high (33%) or high (47%) expectations prior to their Cruise Baltic experience.

Satisfaction vs. expectations

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

17% 47% 33%

Guest expectations prior to cruise (Scale 1-5)

Very low Low Neither nor High Very high

4,16

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9% 34% 54%

Guest satisfaction (Scale 1-5)

Very dissatisfied Dissatisfied Neither nor Satisfied Very satisfied

4,40

• 9 in 10 guests are very satisfied (54%) or satisfied (34%)

Recommendation

• 88% of all guests are very likely (59%) or likely (29%) to recommend a cruise in the Baltic Sea.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

9% 29% 59%

Guests’ likeliness to recommend (scale 1-5) Very unlikely Unlikely Neither nor Likely Very likely

4,42

Likelihood of returning2011 vs. 2013

• Increase in proportion of guests who are likely to return on a cruise

2011

2013

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

12%

10%

13%

12%

21%

20%

22%

29%

33%

30%

Likely to return on a cruise (Scale 1-5) Very unlikely Unlikely Neither unlikely, nor likely Likely Very likely

2011

2013

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10%

5%

7%

5%

19%

14%

25%

33%

39%

43%

Likely to return on a holiday to a city (scale 1-5) Very unlikely Unlikely Neither unlikely, nor likely Likely Very likely

3,57

4,06

3,51

3,77

Malmö, Sweden

2013 Season49 Cruise Lines and 86 Ships in 2013

• No major operational issues

• Great guest satisfaction

• High temperatures for North Europe (luxury challenge)

2013 SeasonHighlights

Challenges:• Hop-On Hop-Off products

• Sankt Petersburg and independent Tour Operators

Port & Destination Association Development

CRUISE BALTICOne Sea – Oceans of adventuresInternational Cruise Summit – Madrid – October 2013 Director Cruise Baltic & Cruise Copenhagen NetworkBo Larsen bnl@woco.dk