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Carnival Pbl Agreement optimises fleet lifecycle efficiency CASE STUDY: CARNIVAL PBL “A 1% IMPROVEMENT OF AN ANNUAL BILLION-DOLLAR FUEL BILL REPRESENTS A MASSIVE TEN MILLION DOLLARS IN SAVINGS.” A comprehensive, 12-year performance-based agreement CHALLENGE has been signed between Wärtsilä and Carnival Corporation. z Ensuring safe, reliable and efficient customer operations The agreement covers the safety, reliability and fuel con- sumption of all the company’s cruise ships covered by the SOLUTION agreement. z 12-year performance-based agreement for 79 of Carnival’s “As the cruise industry is continuing to grow rapidly, vessels it has become more and more critical for us to ensure that the operations of our fleet are safe, reliable and efficient. BENEFITS z Savings in fuel costs (tens of This is good for both our business and the market,” says millions of dollars per year) Mr. Bill Burke, Chief Maritime Officer at Carnival Corporation. z Increased safety and reliability Carnival Corporation & plc, the world’s cruise line brands attract nearly 11.5 largest leisure travel company, was million guests annually. founded in 1972 and has its head- quarters in Miami, Florida, USA. WHY OPTIMISE SHIP LIFECYCLE Carnival operates a fleet of 102 ships, EFFICIENCY? visiting more than 700 ports around One of Carnival’s key focus areas is the world. The company employs over fuel consumption improvement. Their 120,000 people worldwide and its 10 large fleet of 102 ships means that even the smallest improvements in reliability, we can concentrate on our knowledge and experience for Car- fuel efficiency add up to big savings. core priority – providing great cruise nival Corporation’s benefit and lays – For example, a 1% improvement vacations for our more than 11 mil- the groundwork for future opportuni- of an annual one-billion-dollar fuel bill lion annual guests. Best of all, it also ties for the two companies to work represents a massive ten million dol- delivers superior fuel efficiency, says together. lars in savings, states Mr. Burke. Mr. Burke. – Our Carnival Corporation brands Another key focus is to avoid ser- sail to nearly 750 ports around the vice interruptions. Everything needs PREDICTABILITY AND world, and there are not many suppli- to be up and running at a high level. INCENTIVES ers that could support our ships in so If maintenance interruptions can be Carnival Corporation accounts for many locations, Mr. Burke points out. minimised and uptimes increased, approximately 50% of the cruise – This 12-year contract will keep along with fuel savings, the benefit will industry, which means a huge engine us together for a long time if all goes go to both Carnival and their passen- volume. Wärtsilä engines can be well. We might have to amend the gers. found in 79 ships of their fleet. The contract, since there may be things In January 2017, the performance- long-term performance-based agree- we haven’t thought of, and the col- based agreement was signed to ment provides predictability of costs laboration may lead to some by- strengthen the partnership between and incentives for both companies products or spin-offs from the main Wärtsilä and Carnival. The agreement as remuneration is based on how the deal. If we can make this contract includes Wärtsilä’s Dynamic Mainte- equipment performs. Carnival Cor- work well, there will be many more nance Planning (DMP) and Condition poration will benefit from the predict- opportunities. However, the continu- Based Maintenance (CBM). Simpli- ability of having an expert overseeing ous monitoring and analysis of engine fied, Wärtsilä will take care of engine maintenance, which will allow their efficiency and fuel consumption will maintenance and monitoring, sched- staff to put more time and energy lead to savings in fuel costs measured uled or not. Wärtsilä will also have the into the business side of things. For in tens of millions of dollars per year, responsibility to safely extend over- Wärtsilä, the predictability makes it concludes Bill Burke. haul intervals where possible, as they possible to put more effort into R&D, will be closely monitoring the ship’s manufacturing and other functions to engines. create products and solutions that are CBM and DMP both receive data even better and more efficient. CARNIVAL CORPORAtion’S from individual engines, which is – If Wärtsilä does well, they get CRUISE BRANDS analysed by Wärtsilä’s specialists. As paid more, and our pain is Wärtsilä’s such, real-time optimisation of the pain, as they pay a penalty if our z Carnival Cruise Line, Fathom, equipment is enabled to predict op- operational need is impacted, says Holland America Line, erational and maintenance demands. Mr. Burke. Princess Cruises and Seabourn in – This means that data will be – Burke clarifies, If we buy an North America transmitted ashore every 30 seconds, engine for a ship, Wärtsilä has been z P&O Cruises (UK) and Cunard and we’ll have direct around-the- more than happy to sell us parts and in Southampton, England clock feedback on any actions taken. services, but this deal gives Wärt- z AIDA Cruises in Rostock, Germany For example, this allows us to see silä an incentive to keep everything z Costa Cruises in Genoa, Italy how changes in components im- up and running at a high level. By z P&O Cruises (Australia) in Sydney. proves our fuel consumption, explains minimising spare parts and services Mr. Burke. to increase uptime and fuel savings, With approximately 400 Wärtsilä both companies will ultimately benefit. engines covered under the agree- And fewer service interruptions make ment, even the smallest improve- for happy cruise passengers, too. ments in vessel fuel consumption add up to significant annual savings in LONG-TERM PARTNERSHIP fleet operational costs. The agreement will generate a data – With Wärtsilä maintaining the treasure that does not exist in the world today. From Burke’s perspec- engines under our agreement and 04.2017 / Bock´s Office ensuring a high level of safety and tive, this agreement unlocks Wärtsilä’s www.wartsila.com WÄRTSILÄ® is a registered trademark. Copyright © 2017 Wärtsilä Corporation. Specifications are subject to change without prior notice..
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