Cruise ports and sustainability Contemporary Issues. DR. GEORGE K. VAGGELAS Department Of Shipping, Trade and Transport, University Of the Aegean
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1 Cruise ports and sustainability Contemporary Issues DR. GEORGE K. VAGGELAS Department Of Shipping, Trade and Transport, University Of the Aegean
2 Why we are interested on cruise? Mul3ple Economic Benefits Total output $ billion Direct expenditur es $52.31 billion employees Taxes Source: CLIA, 2014 Cruise Industry Port Industry and port cities Academia A multifaceted industry with several players each one with each own unique characteristics, interests and pursuits
3 The major player (1/2) What cruise companies are looking for? Berth alloca8on Appropriate port infrastructures (docks) Appropriate areas for passenger handling Adequate parking areas Variety and quality of services to cruise ships and cruise passengers Port efficiency Ability from the port to handle increased traffic (mul8ple cruise calls at the same 8me) Incen8ves
4 The major player (2/2) What are cruise companies looking for? Focus on quality from the port perspec8ve Adequate passenger terminals Fixed port tariffs for a period of >2 years Port environmental profile and efficiency Safety and Security strategy and applica8on Penal8es for non-show.
5 Contemporary challenges for cruise companies Economies of scale Maximiza8on of onboard revenues and of revenues per passenger (shore ac8vi8es) Increase market penetra8on Developing new cruise products Exploi8ng niche markets Ver8cal integra8on Efficiency Lowering port costs Environmental issues
6 Contemporary challenges for cruise ports - Cruise seasonality - Cruise ships gigan8sm - Port-City rela8ons - Maximizing cruise passenger s and cruise company s sa8sfac8on - Security - Added value for cruise ships and cruise passengers - Increase port efficiency - Carrying capacity - Development of cruise port infrastructures (investments, why-how-when?) - Environmental performance
7 Source: MedCruise Cruise ships gigan3sm 2,100 Passengers 1,900 1,700 1,500 1,300 1, ,017 1,058 1,144 1,271 1,366 1,409 1,572 1,657 1,787 1,828 1,855 1,878 VariaGon 1-year: +1,26% 5-years: +13,34% 10-years: +64,16% Average cruise ship size in the Mediterranean ( )
8 Port & the City POOR INTEGRATION Bad for the Port Bad for the City Bad for the passengers Bad for the cruise lines Exacerbated by: No planning by ports Mega liners We are not talking about a port We are not talking about a city We are talking about a DESTINATION!
9 Passenger sa3sfac3on
10 Passenger sa3sfac3on For the port ra+ngs informa+on, I provided the ra+ngs for Piraeus as an example. The scores are on a 1-10 scale with 10 being the best. All of the scores are from our guests who recently called. Upon their arrival home, we send them an on-line survey and ask them to rate the ports they just visited. They rated their overall sa+sfac+on and a number of other criteria such as...
11 Port efficiency standards Cruise passenger perspec8ve Time Flows Queues Spaciousness Friendliness Cruise company perspec8ve Turn around 8me Passenger experience There are several measurable efficiency standards
12 Cruise carrying capacity The case of Santorini Popula8on: Cruise calls 2010 =682 Passengers Result: 1) Every year the island facilitates almost 57 8mes the size of its popula8on from cruise ac8vity only. 2) Average daily passenger traffic: 4250 (31% of the total popula8on). 3) On peak days cruise passengers are visi8ng the island
13 Cruise related port investments A non cruise oriented port usually facilitates cruise: With any available dock By using any building close to the dock Ports adjusted the solu8on based on their available space Cruise port infrastructures without clear opera8onal objec8ves are no longer the case As a result? - Dispropor8on of the opera8onal costs - Low cruise passenger sa8sfac8on There isn t a standard procedure for designing a cruise related port infrastructure and moreover There is a need for specializa8on inside the port
14 Costa Costalina island Disney Cruise Castaway Cay Holland America Half Moon Cay MSC Cruises Cay Levantado Norwegian Cruise Great SGrrup Cay Princess Cruises Princess Cay Royal Caribbean & Celebrity Cruises Coco Cay and Labadee
15 Environmental issues Cold Ironing ECA s Waste recep8on (and also segregated waste) Oil residues LNG LNG bunkering Renewable energy Air, water, noise and visual pollu8on Reduc8on of the cruise port environmental footprint
16 Always have in mind
17
18 Thank you!!!
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