Mitsubishi Heavy Industries' plan to turn its Nagasaki plant into a cruiseship repair yard has been given an unexpected boost by the coronavirus.
The Japanese shipbuilder has won a contract to repair three Costa Crociere cruiseships after the Italian operator’s favoured Chinese yards were ruled out due to the spread of the disease.
High-cost Japanese shipbuilders would not normally expect to win cruiseship repair contracts in the face of cheaper Chinese competition.
The three ships involved are 2,114-berth Costa Atlantica (built 2000), 4,200-berth Costa Venezia (built 2019) and 3,000-berth Costa Serena (built 2007), which are to be repaired at the Koyagi Shipyard in MHI's Nagasaki industrial complex.
MHI said its health and safety measures related to the outbreak of the Covid-19 strand of coronavirus had helped it win the Costa contract. The shipbuilder said it has been working with government health officials and Carnival Cruises subsidiary Costa to make sure the correct procedures are followed.
“Prevention of Covid-19 virus infection has been the highest priority issue among Costa, Mitsubishi and the relevant Japanese authorities,” MHI said.
“All three vessels were legitimately quarantined by the local quarantine branch when entering Japan, and the repairs and maintenance works are carried out under the strict control of the infection prevention procedures of both Costa and Mitsubishi.”
The company said it will continue to serve customer needs while taking health precautions.
Newbuilding dearth
MHI has only one newbuilding — a VLCC for the Greek Navios group — under construction at its Koyagi plant. It is concerned it is no longer competitive on price in the newbuilding market against Chinese and South Korean yards.
The company is in talks to sell the Koyagi plant to compatriot Oshima Shipbuilding.
However, MHI has ambitions to turn its other Nagasaki-based shipbuilding facility into a cruiseship repair yard.
MHI has experience in building cruiseships at Nagasaki, but after it ran up more than $2bn in losses building a series for Germany's Aida Cruises, it pulled out of the market.
The shipbuilder wants to use its experience to turn Nagasaki into a cruiseship repair yard.
