September, 2010 ECC Discussion European Port Costs John Tercek September, 2010.
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Transcript of September, 2010 ECC Discussion European Port Costs John Tercek September, 2010.
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September, 2010
ECC Discussion
European Port Costs
John Tercek
September, 2010
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Overview of Presentation
• Industry Outlook: New ship construction• Survey of Operating Costs for a Panamax
Ship on a Transit Call (not a Homeport)(Celebrity Millennium Class; 90,000 GRT;
2,000 Pax)• Northern Europe-Baltic• Eastern Mediterranean• Western Mediterranean
• Observations
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Port Demand: Growing Fleet of Ships, Expanding Operating Theaters
• Current world fleet 250+ ships built since 1980• 30 ships under construction for delivery thru
2012.• Few ships are retired; most cruise ships ever
built are still sailing; every ship stops in at least four ports weekly plus a homeport.
• Over 50,000 port calls annually, increasing +/-2,500 additional calls annually with new builds
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Cruise Industry World Deployment 2010
• Operating Theater % Capacity million bed days
• Caribbean 35% 40.9• Mediterranean 25% 29.5• Asia/Australia/India 10% 11.8• Baltic & UK 9% 10.1• Mexico Pacific/Hawaii 6% 7.2• Alaska 6 % 7.2• South America 5% 5.5• Bermuda/New England 3% 3.1
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Port Operators
• Northern Europe almost exclusively government or “quasi government” owned and operated cruise port facilities, “Port Authorities” including Scandinavian, German, Baltic, Benelux and UK ports.
• Southern Europe still predominantly government operated ports, (Port Authorities) with gradual privatization (or “quasi privatization”)
• (“Quasi” means PA still owns significant %, or shareholders include Airport Authority, Chamber of Commerce, etc.)
• Some “privatized” European cruise ports (or cruise operating concessions) include:– Malaga, Barcelona, Marseille, Valletta, Savona, Livorno, Civitavecchia,
Napoli, Venice, Ravenna, & (St Petersburg, Tunis, Kusadasi)
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Typical Port Costs Categories & Payees
• Basic “Head Tax” per passenger charge- Terminal Operator (TO)• Harbor Dues per GRT- to Port Authority (PA)• Dockage Fees per Length Overall- PA or TO• Light/Anchorage Dues- sometimes an annual fee per each ship- PA• Lines Fees- paid to stevedores for tying up the ship- TO• Tug Boat Fees- per GRT, rarely compulsory today- direct fee (D)• Pilots Fees- World’s most powerful local monopoly- direct fee (D)• Security Fees per passenger (ISPN add-on)- TO• Customs Fees- Federal Government (FG)• Luggage Movement- stevedores- per passenger charge• Miscellaneous Government taxes and fees (FG)• Service expenses to suppliers:• Agency Fees, Garbage Take Off, Water Supply, Tender Operations
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Typical Port Costs Categories & PAYORS
• Basic “Head Tax” per passenger - Individual Customer (Ind Cust)• Harbor Dues per GRT- Cruise Company Maritime Operating Expense
(Cruise CO)• Dockage Fees per Length Overall- Cruise CO• Light/Anchorage Dues- Cruise CO• Lines Fees- paid to stevedores- Cruise CO• Tug Boat Fees- per GRT, Cruise CO • Pilots Fees- Cruise CO • Security Fees per passenger- Indv Cust• Customs Fees- Indv Cust• Luggage Movement- stevedores- Indv Cust• Miscellaneous Government taxes and fees Cruise CO & Indv Cust• Service expenses to suppliers: Cruise Co• Agency Fees, Garbage Take Off, Water Supply, Tender Operations
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Typical Port Charges to Each Individual Customer
• Basic “Head Tax” per passenger - Individual Customer (Ind Cust)• Security Fees per passenger- Indv Cust• Customs Fees- Indv Cust• Luggage Movement- stevedores- Indv Cust• Miscellaneous Government taxes and fees Cruise CO & Indv Cust
• Cruise Lines generally wrap these items into a category of:
“Non-Commissionable Government Taxes & Fees”
An add-on to the cruise ticket price.
Example: 7 day Med Cruise out of Barcelona Ticket: E799
Non-commissionable Govt Taxes & Fees E65
Total Ticket Cost E864
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EUROPEAN Transit Call Head Tax Tariffs 2010
• MED PORTS BALTIC PORTS• Barcelona 4,35€ Bergen 2,88€ • Toulon 1,50€ Warnemunde 5,26€
• Villefranche 4,68€ Helsinki 0 €• Livorno 4,73€ Stockholm 3,03€
• Civitavecchia 4,90€ Tallinn 1,72€
• Naples 2,38€ Oslo 2,50€
• Ajaccio 3,08€ Amsterdam 5,80€
• Malta 5,98€ Copenhagen 1,50€
• Messina 1,14€ Brugges 1,02€
• Venice 5,93€ • Athens 0,92€ • Santorini 0,40€
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Brugges, Belgium
Bergen, Norway
Warnemunde, Germany
Copenhagen, Denmark
Oslo, Norway
Amsterdam, Holland
Helsinki, FinlandStockholm,Sweden
Tallinn, Estonia
Northern European Port Call Costs
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Northern European Port Call Costs: Millennium (Panamax) Ship (90,000 GRT,
2,000 pax)
Port of Call Head Tax Transit Call
Dockage Fees & Security Fees
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs Total
Fees per Call
Bergen, Norway
5.770€ 7.250€ 2.270€ 14.420€ 29.710€
Warnemunde, Germany
10.530€ 7.690€ 10.200€ 2.070€ 5.600€ 36.080€
Helsinki,
Finland
2.080€ 6.110€ 41.110€ 3.460€ 52.760€
Stockholm, Sweden
6.080€ 19.980€ 19.440€ 8.680€ 54.180€
Tallinn, Estonia
3.450€ 6.180€ 3.540€ 5.560€ 18.730€
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Northern European Port Call Costs: Millennium (Panamax) Ship (90,000
GRT, 2,000 pax)
Port of Call Head Tax
Transit
Call
Dockage Fees & Security Fees
Harbor Dues
& Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs Total
Fees per Call
Oslo, Norway
4.990€ 5.490€ 1.920€ 33.000€ 45.400€
Amsterdam, Holland
11.620€ 2.010€ 8.090€ 4.020€ 4.650€ 30.370€
CopenhagenDenmark
2.960€ 350€ 37.650€ 1.870€ 2.100€ 44.930€
Brugges, Belgium
2.040€ 16.750€
1.110€ 6.590€ 26.490€
AVERAGE of 9 Northern ports
5.222€ 2.555€ 11.555€ 8.440€ 9.330€ 37.250€
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Pilots Charges !!
• Oslo: E33,000 per call. Even if the pilot stayed on the ship for the entire 9 hour visit (which he doesn’t), if he works only the summer cruise season of about 100 days, that works out to E3,000,000 for the season!
• Northern Europe average daily pilot fee is E9,300, or nearly E1,000,000 for a 100 day season.
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Ajaccio, Corsica
Venice, Italy
Livorno, ItalyVillefranche, France
Lisbon, Portugal
Barcelona, Spain
Valletta, Malta
Messina, Italy
Toulon, France
Naples, Italy
Civitavecchia, Italy
Western Mediterranean Port Call Costs
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Western Mediterranean Port Call Costs: Millennium (Panamax) Ship (90,000 GRT,
2,000 pax)
Port of Call Head Tax
Transit
Call
Dockage Fees & Security Fees
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs Total
Fees per Call
Barcelona 8.690€ 6.790€ 2.270€ 2.140€ 19.980€
Toulon 3.000€ 2.890€ 5.080€ 2.380€ 5.050€ 85€ 18.570€
Villefranche 9.370€ 2.080€ 11.450€
Civitavecchia 9.180€ 120€ 890€ 1.980€ 3.420€ 16.220€
Naples 4.770€ 4.010€ 370€ 2.600€ 11.760€
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Mediterranean Port Call Costs: Millennium (Panamax) Ship (90,000
GRT, 2,000 pax)
Port of Call Head Tax
Transit
Call
Dockage Fees & Security Fees
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs Total
Fees per Call
Ajaccio 6.160€ 1.500€ 7.660€
Valetta 11.960€ 420€ 1.230€ 1.980€ 15.590€
Messina 2.270€ 1.880€ 3.490€ 200€ 7.840€
Livorno 9.470€ 470€ 4.400€ 4.150€ 18.500€
Lisbon 6.890€ 6.790€ 1.750€ 4.150€ 19.580€
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Venice, Italy
Istanbul, Turkey
Kusadasi, Turkey
Dubrovnik, Croatia
Athens, Greece
Valletta, Malta Santorini, Greece
Messina, Italy
Civitavecchia,Italy
Naples, Italy
Eastern Mediterranean Port Call Costs
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Eastern Mediterranean Port Call Costs: Millennium (Panamax) Ship (90,000 GRT,
2,000 pax)
Port of Call
Head Tax
Transit
Call
Dockage Fees & Security
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs/ Total
Fees per Call
Venice 11.870€ 3.590€ 450€ 2.850€ 4.020€ 11.770€ 34.550€
Dubrovnik 8.230€ 5.770€ 1.080€ 15.080€
Athens 1.850€ 360€ 4.090€ 380€ 1.820€ 920€ 9.410€
Santorini 780€ 360€ 170€ 1.310€
AVERAGE of 14 Med Ports
6.140€ 1.360€ 1.860€ 1.640€ 2.570€ 1.240€ 14.850€
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Comparison Port Call Costs: Millennium (Panamax) Ship (90,000 GRT, 2,000 pax)
Port of Call
Head Tax
Transit
Call
Dockage Fees & Security
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs/ Total
Fees per Call
AVERAGE of 9 Northern ports
5.222€ 2.555€ 11.555€ 8.440€ 9.330€ 37.250€
AVERAGE of 14 Med Ports
6.140€ 1.360€ 1.860€ 1.640€ 2.570€ 1.240€ 14.850€
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Comparison Port Call Costs: Millennium (Panamax) Ship (90,000 GRT, 2,000 pax)
Port of Call Head Tax
Transit
Call
Dockage Fees & Security
Harbor Dues & Govt Fees
Light Dues Anchorage,Navigation, Lines, Dues
Pilots Fees
Tugs/ Total
Fees per Call
AVERAGE of 9 Northern ports
5.222€ 2.555€ 11.555€ 8.440€ 9.330€ 37.250€
AVERAGE of 14 Med Ports
6.140€ 1.360€ 1.860€ 1.640€ 2.570€ 1.240€ 14.850€
St. Martin, Caribbean
11.540 € 160 € 3.090 € 195 € 912 € 15,900 €
St. Thomas, Caribbean
17.990 € 3.120 € 340 € 20,450 €
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Euro Port Issues: Who is Responsible for What?
• Port Costs are generally very local: Port Authority, Terminal operator, Stevedores, Pilots, Tugboats.
• Customs & Immigration Issues appear to be Federal (insufficient agents or inconvenient logistics)- mostly affects international crew movements.
• Port Regulations are generally EU mandated (Low Sulfur Fuel)
• Services costs such as garbage or water are competitive between ports.
• Congestion Issues are local and Federal: managing the process of creating more and larger facilities. Associations could possibly manage bookings calendar.
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Euro Port Costs: How can we manage costs?
• “Head Tax” per pax- Negotiate w/Terminal Operator (TO) Volume incentives, seasonal variances; tariffs must be public & standard
• Harbor Dues per GRT- Neg w Port Authority (PA); cruise ship tonnage debate
• Dockage Fees per Length Overall- PA or TO, generally standard for all vessel classes
• Light/Anchorage Dues- neg w/ PA or Ministry- is GRT the correct formula? • Lines Fees- Neg w TO or stevedores; volume incentives• Tug Boat Fees- per GRT, rarely compulsory today- insurance style?• Pilots Fees- World’s most powerful local monopoly- ask gov't help• Security Fees per passenger (ISPN add-on)- TO typically per pax fee• Customs Fees- Federal Government (FG)- arbitrary government fiat• Miscellaneous Government taxes and fees (FG)- arbitrary• Service expenses to suppliers:• Agency Fees, Garbage Take Off, Water Supply, Tender Operations
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Euro Port Costs: How can we manage costs?
Panel Discussion!
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September, 2010
ECC Discussion
European Port Costs
John Tercek
September, 2010