Port Congestion John Heylan
Published on: Mar 4, 2016
Transcripts - Port Congestion John Heylan
Canada New England
Cruise Symposium 2010
Cruise St Lawrence Cruise Maine Cruise Atlantic Canada New York Boston
John Heylen – Senior Manager, Fleet Operations.
(Congratulations – you are busy !)
– Principal causes – International & Regional
– Some solutions..
– Your ports.
– Future considerations.
Principal Causes –
International + Regional
- Growth in volumes / size of cruise ships
- Delayed response from some ports to increase capacity to meet cruise sector demand / late
implementation of development programmes & projects.
- Disconnect between tourism / port authorities – seeking cruise growth without strategic
port expansion plans.
- Short regional time-span of seasonal attractions / School or Summer vacations.
- Lull period in deployment between peak yielding regions (Alaska / EU peak summer)
- Overspill from neighbouring premium regions to avoid dilution of trade / yields
- Diversification in itinerary deployment due to rapid fleet growth.
- Desire to have turnarounds on key days (weekends).
- Growth in turnaround ports in strategic regions resulting in greater demand for way-ports.
- Modal shift of freight from rail to shipping.
- Increase in container volumes taking larger share of port capacity in favour of less
attractive port revenue streams from cruise business.
- Undesirable effects including poor guest experience, longer term decline,safety/security
Assuming strategic objective is to grow !
- Increase span of season: how? (5years +)
> Joined up approach to create entire itinerary product (Cruise Assn,
> Cruise industry turnaround days + voyage duration to avoid bunching.
> Increase organic value of destinations to attract demand outside normal
period. Shorex + local infrastructure investment to match.
> Long term Port Reservation system coupled with clear policy.
- Weekly smoothing during peak season: how? (1-2years)
> Significant discount on port cost during slack days.
> Publish port schedules on www.
> Cruise lines to collaborate during planning (potential anti-trust, competition
> Increase port throughput by avoiding protracted cruise stays (questionable
value-added to destination)
- Increase port capacity: how? (0-3yrs)
> Cargo berth utilisation.
> Freeing up existing capacity at min cost (dredging, removing sub-
optimum revenue generating streams)
> Anchorages for smaller destinations more cost effective (tides in
> Alternative ports to same destination - gateway ports to 'x'
> Cost effective pier extensions (dolphins)
> Day cruise / night cargo.
> Optimum berth booking policy related to size of vessel.
> Avoid unnecessary investment in terminals – instead, port capacity
> Proper support and engagement of tourism authorities with port
authorities / local council in supporting cruise capacity increase.
• Impact of future Environmental legislation.
• 1st Aug 2012 ECA.
• QM2 7-day ex NYC 10% increase / $80K / $4.40 pbd
• AURORA – St Lawrence 10% increase / $95K / $2 pbd
• Drive towards cost reduction - less speed, less ports.
• Benchmark ship size 320m / 2000pax+ / 8.5m Draft
• Saint John NB
• Potential use of Navy Island Forest Products berth.
• Shuttle bus service / lauch service to central town.
• Shorex infrastructure to grow accordingly (current ly 1800 max? )
• Halifax NS
• Ocean Terminals A – A1 and B facility extension to capacity
• 3-4 berths at 210m – 12m draft.
• Comfotably accommodate 2+1 ships with matching existing infrastructure.
• St John’s NF
• Interchangeable with Corner Brook.
• Portland ME
• AIDA berth extension – asking the question, expands capacity.
• Bar Harbour
• Passenger number cap – the right thing to do.