BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Carnival inks 12-year deal with Wartsila, targets fuel savings

25 Jan 2017 12:06 GMT

Wartsila to handle all engine maintenance and monitoring work for 79 of Carnival's ships.



Wartsila and Carnival Corporation & plc announced on Wednesday that they have signed a 12-year agreement for Wartsila to handle all engine maintenance and monitoring work for 79 of Carnival Corporation's vessels.

The value of the long-term agreement is approximately EUR 900 million. The expected revenues for 24 months, approximately EUR 150 million, are to be included in Wartsila's order book for the first quarter of 2017. As the contract becomes effective as of 1st April, Wartsila's expected revenues for 2017 from the contract are EUR 56 million.

The deal includes Wartsila's Dynamic Maintenance Planning (DMP) and Condition Based Maintenance (CBM). These services are based on capturing digitalised data streams from every engine, after which this data is analysed by specialists. This is designed to provide real-time optimisation of the equipment while predicting operational and maintenance demands. With the DMP and CBM in place, vessel and fleet operations are optimized and engine overhaul intervals potentially extended.

With approximately 400 Wartsila engines covered under the agreement, the Finnish manufacturer points out that even the smallest improvements in vessel fuel consumption can add up to significant annual savings in fleet operational costs.

"Potential savings in fuel costs are counted in tens of millions of dollars per year," Wartsila said.

"Our agreement with Wartsila extends our cooperation to a strategic partnership," commented Bill Burke, Chief Maritime Officer for Carnival Corporation. "With Wartsila maintaining vessels under our agreement and ensuring a high level of safety and reliability, we can concentrate on our core priority - providing great cruise vacations for our more than 11 million annual guests. In addition to reducing our costs, the long-term agreement increases safety and operational efficiency - two critical advantages in the fast-growing cruise market."

The long-term performance-based agreement model is designed to provide predictability of costs and incentives for both companies as remuneration is based on how the equipment performs, with the companies sharing exposure based on outcomes. Wartsila believes the strategic partnership encourages increased focus on research and development, manufacturing and other functions to make its products even better and more efficient.

"We are very excited to develop our long-term partnership into a more strategic direction. Both Wartsila and Carnival Corporation are committed to investing significantly in this partnership as well as to develop our cooperation in the long run. We are confident that working closely together, we can improve performance in both organisations," remarked Pierpaolo Barbone, President, Services & Executive Vice President, Wartsila Corporation.

Wartsila stresses that further improvements in energy efficiency will be a significant focus area within the agreement and a key driver for the cooperation between the two firms. Engine efficiency and fuel consumption are to be measured on a regular basis, with improvements to fuel efficiency based on continuous monitoring and data analysis.






Related Links:

Carnival's bunker costs drop 27% in 2016, expects $315m rise next year
Shell signs deal with Carnival to supply world's first fully LNG-powered cruise ships
Carnival's Q3 bunker costs drop 23.2%
Carnival orders three LNG-powered cruise ships
Carnival's bunker business at Port Everglades secure until 2030

Latest News:

Furukawa Battery certified as approved supplier of marine batteries
Quadrise: Fuel production system commissioned in Saudi Arabia
Is oil heading for the 70s or lower 60s?
Oil and fuel oil hedging market update
FIS expecting strong HSFO paper liquidity 'right up to deadline day' in 2020 and beyond
GTT hails 'great start to the year' with LNG tank orders
Rotterdam posts lowest calendar year bunker sales of the 2010s
Bomin to launch physical supply of ULSFO in ARA region
Viking Line's bunker costs jump 18.3% in 2017
Vopak's net profit dips 12% in 2017
Odfjell posts rise in FY and Q4 2017 bunker costs
Oil and fuel oil hedging market update




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events