Hurtigruten chief executive Daniel Skjeldam says he is ready to back Norway’s Kleven with orders, insisting the expedition cruise company is a long-term partner for the shipyard.
The Norwegian shipowner took control of the Ulsteinvik-based shipbuilder in mid-2018 when it ran into financial difficulties, severely delaying work on Hurtigruten’s two 530-passenger expedition cruiseships — the Roald Amundsen and Fridtjof Nansen.
Hurtigruten’s move secured the delivery of the ships but there has been speculation over whether the shipowner would seek to sell the yard once its vessels are handed over. The newbuilding project is valued at about €180m.
Technical performance
Speaking to TradeWinds at the yard, Skjeldam says he is happy with Kleven’s technical performance and that he expects the yard to play a key role in the development of the Hurtigruten fleet.
“Owning a shipyard is not a key business for us,” he says. “But when we decided to buy the operation, it was to secure the competence to build these advanced ships.
“There are not many yards in the world that can build them, and now we have access to a platform that can build these ships.”
Skjeldam says Hurtigruten is likely to take up an option for a fourth vessel at the yard. It recently declared an option for a third ship, which is set for delivery in the second quarter of 2021.
He adds Kleven could help in an ongoing project to convert the Hurtigruten fleet to LNG power.
Going forward, we are going to refurbish, convert and build a lot of ships. I can say, there will definitely be more ships ordered at Kleven
Daniel Skjeldam
“Going forward, we are going to refurbish, convert and build a lot of ships,” he says. “I can say, there will definitely be more ships ordered at Kleven.”
However, he admits work from Hurtigruten alone is unlikely to be enough for the yard, which employs 570 workers.
Offshore projects
Hurtigruten is currently bidding for offshore and passengership newbuilding projects.
“This won’t be a Hurtigruten-only yard,” he says. “We think it has the competency to build a number of advanced ship types it is focused on, taking other types of orders.”
The two Hurtigruten ships under construction at Kleven are heavily focused on sustainability. Powered by a combination of diesel electric propulsion and supplemented by battery power, they are the first hybrid-power ships and have been dubbed the “hybrid car of the seas”.
The vessels are now on schedule for delivery in the first and third quarters of this year, and will operate on exploration cruises in the Antarctic.
Skjeldam said he thinks the vessels will play an important role in leading shipping’s bid to reduce emissions. The company has said it will not burn heavy fuel oil in the polar regions.
“We want to lead the industry in this change,” he says. “These ships are fantastic and we are rebuilding the cruise business.”