Karen Obeck

Cruise Business 2019

05 December 2019

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Seaspan Shipyards Cruise Ship Business

• Victoria Shipyards & Vancouver Drydock are supporting the Cruise Ship Business• Both yards have a proven track record of superior on-time delivery of cruise vessel repair contracts• Victoria Shipyards capabilities:

– Graving dock, length 1100 ft. and width 128 ft.• Vancouver Drydock capabilities:

– Floating dock (Panamax), length 660 ft. and width 150 ft.– Floating dock (Careen), length 440 ft. and width 110 ft.

• Seaspan Shipyards has executed over 50 cruise vessel contracts in the last 20 years• Seaspan Shipyards can provide technical and engineering services to support cruise vessel projects• Ideally located shipyards because very often cruises are ending in Seattle or Vancouver • Competition on the West Coast of Americas is in Seattle and Portland (Vigor Industries)• The Canadian Dollar conversion rate is attractive with regards to the competition (USD vs. CAD)

Seaspan Shipyards

VictoriaShipyards

Vancouver Drydock

VancouverShipyards

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Cruise Ship Business Vancouver Drydock 20193 Cruise ships repaired in Drydock in 2019

• Silver Explorer (emergency docking) for Silversea Cruises• MS Regatta (planned docking) for Norwegian Cruise Lines• MS Roald Amundsen (emergency docking) for Hurtigruten

2 Cruise ships repaired at Canada Place in 2019• Le Soleal for PONANT France• Silver Muse for Silversea Cruises

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The MS Regatta ProjectSeptember 2019

• Arrived September 6, 2019• Departed from yard September 22, 2019• Remodelled 385 state rooms• Remodeled all restaurants and other common

spaces• New laundry machines • Completely new coating system on the hull• New propulsion units• Stabilizer maintenance• Additional mechanical work

$10 Million CAD direct and indirect benefits to the economy.

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The MS Regatta ProjectQuick Figures

• Nearly 3,000 employed • 2689 Crane Lifts• 334 Waste bins out• 375 20 ft. sea containers unloaded on board• 900 Mattresses replaced• 385 Staterooms refurbished

• Local companies supporting this project:o Waste Control Services in Coquitlamo Richmond Steel in Richmondo Terrapure in North Vancouvero Petrokleen in North Vancouver

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The MS Regatta ProjectAbout the Floatel

• Floatel vessel called the Grand Classica• The home port is West Palm Beach, FL• Owned by Bahamas Paradise Cruise Line• Specially chartered by Norwegian Cruise Lines for

this refit project• Coastal Trade Act approval obtained• Grand Classica can accommodate 1800

passengers• Full meal service • Required for logistical reasons

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Why a floatel was used for the MS Regatta refit project?• Vancouver Shipyards was awarded this project in July 2019, which is shorter

notice than is typically received on similar projects• Project required accommodation for around 1800 people• A minimum of 1000 hotel rooms were required (double occupation)• Limited availability of hotel accommodations on the North Shore and on the

lower mainland, more broadly• In parallel, 3 conferences were underway in Vancouver in September 2019• A local company was used to obtain Coasting Trade License (J.B. Ellis)• Two weeks objection notice was implemented and no objections were received • Close connection with Transport Canada Marine & Security Department• Final Coasting Trade License was received on September 5 2019

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Cruise Ship Business Vancouver DrydockFuture Outlook

• Over 100 cruise vessels are on order globally • An increased number of cruise vessels will visit Vancouver in 2020• Cruise season 2020 begins in April • Expedition cruise vessels are gaining in popularity • Vancouver is ideally situated as a repair and refit location to meet the requirements of the cruise ship

industry • Cruise companies are in need of local service providers• The cruise business is an important growth area for Seaspan Shipyards

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Questions?