BRITISH COLUMBIA CRUISE MARKET OPPORTUNITY ASSESSMENT

Vancouver Port Authority / BC Ports and Destinations Group

The TMG team performed an assessment of the market opportunity for development of the cruise industry in British Columbia.  This assessment included an overview of the cruise industry and cruise markets in North America, an assessment of the potential markets for BC Cruises, a review of the competitive and regulatory environments, and a preliminary assessment of the infrastructure in British Columbia.  The project also involved the participation of key stakeholders in the planning process. The opportunities identified for British Columbia include development of a cruise ferry service, as well as expansion of the current Alaska-bound market, the short-duration cruise market, and the eventual development of an exclusively British Columbia cruise product.

NORTHWEST CRUISE PRODUCT PRELIMINARY ASSESSMENT

Vancouver Port Corporation and Port of Seattle           

The Port of Seattle and Vancouver Port Corporation teamed together to assess the potential for the development of cruise itineraries in the Pacific Northwest including southern British Columbia. Itineraries were assessed, including sailing times and port development potential, such as revenue opportunities. Extensive meetings and discussions were held with the major cruise lines to obtain feedback regarding the market potential and the decision-making process used by the cruise lines to assess new itineraries.  The project was to include a secondary level of assessment; however, the results of the preliminary assessment showed great promise with new cruise itineraries and one of the big three cruise lines committed ships based on the preliminary results.

SKEENA LANDING CRUISE TERMINAL PLAN

Port of Prince Rupert, British Columbia

The City and Port of Prince Rupert contracted TMG in developing a marketing and sales strategy for Prince Rupert Port Corporation’s proposed Skeena Landing cruise ship terminal project.   The work included introductions and meetings with major cruise line decision makers and executives, and small cruise ship owners and operators. Passenger shoreside attractions and potential excursions were reviewed, and a competitive structure of facility fees developed.  Comparisons of the Port of Victoria and five major Alaskan cruiseport facilities, including port pricing were researched and evaluated, and suggested tariff recommendations to address competitiveness and project financial feasibility.  To determine interest of cruise lines, introduce port officials to high level executive cruise line cruise decision makers.

CRUISE INDUSTRY ECONOMIC IMPACT IN CANADA

Northwest CruiseShip Association, Vancouver, British Columbia

Employed as one of a team of participating consultants contracted to provide a complete assessment of the economic impact of the cruise industry in Canada.  Responsible for collecting and synthesising expenditure data from cruise lines through extensive interviews with each cruise line serving both the east and west coasts of Canada.  Additionally designed and administered the expenditure survey for cruise ship crews to determine levels, type and volume of crew shore expenditures.  Along with the partner firms, three data sets, including cruise line expenditures, crew expenditures, and passenger expenditures, were compiled and completely analysed to determine economic impacts to all of Canada, and to each of the individual Canadian provinces.

CAMPBELL RIVER CRUISE PIER FEASIBILITY STUDY

Campbell River Indian Band, Campbell River, B.C, Canada

Contracted to evaluate the market and economic potential for the development of a cruise ship facility. Campbell River is a small community located on the Canadian Inside Passage mid-way between Vancouver and Port Hardy.  An engineering assessment was also required and a partner firm for that assessment was subcontracted.  The resulting report outlined the type of market and the possible economic potential, and a step-by-step plan was formulated to develop that potential.  Campbell River has facilities for small cruise ships, and with the study in hand, the developers attracted these vessels to the port.  A pier for large cruise ships has not yet been built at this time; however, several large cruise lines have recently expressed interest and have reviewed the potential for Campbell River port development. 

CRUISE AND FERRYTERMINAL DEVELOPMENT PLAN

Calica, Mexico City

Members of the TMG team were engaged by Calizas Industriales del Carmen, S.A. de C.V. (CALICA), jointly owned by ICA Group of Mexico City and Vulcan Gulf Materials, Birmingham, Alabama, to project revenue potential, develop commercial marketing and financial strategies and review the new international terminal design of the Port of Punta Venado, Playa del Carmen, Mexico on behalf of the private sector port owners.  This study included research for a proposedcruise ferry service between Mexico and Floridato provide transportation for passengers, vehicles, controlled temperature shipments, and drop-trailer freight moving between the Yucatan Peninsula and Florida.  Comparable ports and similar ferry services in Northern Europe, North America and theCaribbean were surveyed and the various tariffs analyzed. In addition to providing port facilities for large cruise vessel calls, the port design was developed to include multiple ferry, dry cargo and bulk vessel operations.

HIGH SPEEDFERRY ROUTE STUDIES & DEVELOPMENT PLAN

Sea Containers Ltd., London

Studied port infrastructure and terminal facilities and developed financial projections and complete business plans for London based Sea Containers, Ltd. for the start-up of high speed and conventional ferry services between Seattle, Washington and Victoria andVancouver, British Columbia; and New Haven, Connecticut and Shoreham, New York. The work included revenue projections, start-up, capital and operating cost estimates, the organisation and labour plan, financial pro-forma’s, and high speed passenger and vehicle vessel, portand terminal inspections, evaluations and design selection.

PHOENIX WORLD CITY LABOUR EVALUATION

World City Corporation, New York, NY

Conducted detailed labour cost comparisons and evaluations, and developed manning scales for the World City Corporation’sPhoenix World City.  This proposed cruise liner, with a staff of 1,800 and accommodations for 6,200 guests in 2,800 cabins, would have twice the capacity of the largest passenger ships ever built.  The project principals are continuing to seek funding for the construction of the vessel.

PORT ECONOMIC IMPACT STUDY

Singapore Port Authority, Singapore

Engaged by the Port of Singapore Authority and worked with Economic Research Associates of San Francisco as consultants in the marine sector to study and analyse the economic impact of the cruise industry on Singapore and nearby ports of Southeast Asia.  Interviews were conducted in Singapore, Kuala Lumpur and Jakarta with shipyards, ground service providers, travel and tour operators, andgovernment officials. Additionally, met with top level cruise line executives in New York, Miami, Los Angeles and Seattle to introduce the planned cruise port expansion.

BAJA MEXICO CRUISES

Goldbelt, Inc., Juneau, Alaska

Engaged by Goldbelt to conduct due diligence management interviews and financial reviews, vessel technical inspections and marine related operational audits for the purchase of Glacier Bay Tours andCruises.  Glacier Bay was eventually acquired and is now a subsidiary of Goldbelt Inc. of Juneau,Alaska.  Additionally employed to assist inintroducing Glacier Bay Cruise Line executives to Mexican government officials in the marine and tourism sectors in Mexico City in regard to a proposal to operate aU.S.flag cruise vessel in the waters of the Seaof Cortez from LaPaz, Baja Sur, Mexico. 

CUNARD LINE OPERATIONAL MANAGEMENT REVIEW

Arthur D. Little, Boston

Assisted major international consulting group in developing a complete management restructuring plan for Cunard Line.  This work included performing executive interviews in the Cunard Line New York and Southampton offices, and conducting underway operational audits and vessel management interviews aboard the cruise liners R.M.S.QueenElizabeth II, the M.V. Royal Viking Sun, and the M.V. Sea GoddessII, and on board inspections of the M.V. Sagafjord and M.V.Vistafjord.  Cunard Line was subsequently purchased by Carnival Corporation, and all proposed recommendations for restructuring were approved and executed by Carnival.

CRUISE LINE DUE DILIGENCE STUDY

Oregon Rail Corporation, Portland, Oregon

EVALUATION OF U.S. FLAG CRUISE OPPORTUNITIES

Various Clients

TMG has evaluated numerous opportunities to place U.S. flagged vessels in operation on domestic routes.  These efforts included detailed inspections of older cruise vessels which are either under U.S. flag, or subject to reflagging as a result of prior congressional action. Specific vessels we have evaluated include the S.S. United States ,the S.S. Independence, the S.S. Enchanted Isle and her sister,the S.S. Universe Explorer.  The latter two vessels, while under foreign flag, had been authorized by Congress to return toUnited States jurisdiction. They were originally constructed in 1958 by Ingalls Shipbuilding Company for Moore MacCormack Line for South America service.

FLORIDA-YUCATAN PENINSULA CRUISE FERRY SERVICE

Americas Seaways, Inc., Golden, Colorado

On behalf of the parent organization, World Class Cruise Lines, TMG completed development for a proposed passenger and vehicle cruise ferry service operating on the route between Tampa Florida and the Mexican ports of Progreso, Yucatan and CALICA, Quintana Ro, located near Playa del Carmen.  Work for this project included independent market research, vessel inspections, technical reviews and selection, and port and terminal inspections, lease negotiations and preliminary agreements, competitor analysis, detailed revenue and cost projections, seasonality forecasts, market research for both passengers and freight, and the analysis and comparisons of similar successful European cruise and ferry operations.  Prepared complete business plan and detailed support presentation material.

WASHINGTON STATE– BRITISH COLUMBIA INTERNATIONAL FERRY

Victoria Line, Ltd., Victoria, British Columbia

TMG affiliate company, Maritime Group Services, Inc.,served as General Agent in the United Statesfor Victoria Line, Ltd., a Crown Corporation of the Province ofBritish Columbia. Victoria Line operated the M.V. Royal Victorian, a cruise ferry vessel with a capacity for 1,050 passengers and 210 vehicles, on the route between Seattle, Washingtonand Victoria, British Columbia with.  The daily international summer service was established in 1994 and operated through 1998. Provided all U.S. ticketing and reservations services, coordinated with U.S. Federal agencies including U.S. Customs, U.S. Coast Guard, U..S.Immigration and Naturalization Service and the U.S. Department of Agriculture.  Additionally managed the operation of the Port of Seattle Pier 48 ferry terminal and provided for all Seattle based vessel support services.

PORT CRUISE LINE STRATEGY DEVELOPMENT

CRUISE SEATTLE NEWS LETTER & INTRODUCTIONS

Port of Seattle, Seattle, Washington 

TMG assisted in the development of the Port of Seattle marketing, promotion strategy and operating plan for the new Bell Street Pier 66 Cruise Terminal.  This work included producing revised cruise vessel itineraries for proposed Seattle based liners and a detailed cost analysis of other West Coast cruise port tariffs and charges.  We also contracted to provide editorial content and articles for the Port of Seattle quarterly newsletter, Cruise Seattle, a publication designed to introduce thePort’s cruise terminal facility to cruise line executives, and to enhance knowledge and information regarding the positive financial contributions of homeport ships to City of Seattle executives, U.S. government officials, local businesses, members of the Seattle Chamber of Commerce and the Seattle maritime community.  We introduced Port of Seattle executives to heads of major cruise lines based in Miami,Los Angeles, Seattle and Singapore.

EXPERT WITNESS

U.K. Port, Local Council owner

TMG to assist, together with an Associate Company, in acting as an expert witness during a public enquiry into a port development infrastructure. This involves gathering information on port civil engineering works, environmental criteria, marine operations and security.

CRUISE-FERRY M.V. STARDANCER

Admiral Cruises, Miami, Florida

The modern cruise-ferry vessel M.V. Stardancer owned by Admiral Cruises, with a capacity for 1,360 passengers and 500 automobiles, was the first private sector passenger and vehicle carrying vessel in service from U.S. and Canadian West Coast ports to ports in Alaska and Mexico.  Captain Cox served as Senior Vice President of Operations for Admiral, and was responsible for the merger of marine operations of Eastern Cruise Line, Western Cruise Line and Sundance Cruises into Admiral Cruises in the mid 1980’s.

ALASKA FERRY M.V. COLUMBIA

Alaska Marine Highway System, Juneau, Alaska

The M.V. Columbia, flagship of the Alaska Marine Highway System, operates a year-round weekly schedule from Bellingham, Washington to major ports of South East Alaska carrying both passengers and vehicles.  This vessel is one of a fleet of nine Ro/Ro vehicle and passenger vessels operated in the State of Alaska and serving a total of thirty–two ports.  This system has been studied extensively by The Maritime Group to develop a potential connecting private sector service between Seattle and Prince Rupert,British Columbia.

DEVELOPMENT OF HIGH SPEED FASTFREIGHT ROUTES

European Consortium

Together with TMG Europe, our United Kingdom based partners, TMG is involved with the development of a number of High Speed freight vessels for dedicated freight routes within Europe. TMG will be involved with the feasibility studies of the proposed vessels and route structures including analysis of business, technical and operational plans. TMG is also acting as one of the facilitators within the Consortium.

SUNDRY TMG EXPERIENCE

 Various additional projects

●  North of Scotland, Land Sale/Evaluation fora new  Container Terminal Development

●  HSC Ro/Pax Catamaran - main engine,crankshaft damage survey on behalf of 

    underwriters.

●  Cargo Ship – Main Engine Turbo Charger failure/damage survey on behalf of

     underwriters.

●  HSC Ro/Pax Catamaran – Risk Assessment Surveyon behalf of Underwriters.

●  General Cargo/Container Vessel – Risk Assessment Survey on behalf of Underwriters.

●   HSC Ro/Pax Monohull – Risk Assessment Survey on behalf of Underwriters.

●   Conventional Ro/Pax Ferry – costs analysis in running/removing a ferry on a

     specific route, to evaluate future market behavior.

●   HSC Ro/Pax – Route Analysis & Feasibility Study for a new Middle East Passenger

     Ferry Service.