Ferries in Spain: a Big Industry Managing Pax Distress Calls P&O Ferries

YEARS 1965 - 2017 FERRY, CRUISE, RO-RO AND HIGH-SPEED INFORMATION FOR PROFESSIONALS 52 • JULY / AUGUST 2017 • NO.7-8

FERRIES IN SPAIN: A BIG INDUSTRY MANAGING PAX DISTRESS CALLS P&O FERRIES’ JANETTE BELL SARONIC FERRY SERVICES CALANTHE OKUSHIRI SEABOURN ENCORE QUICK Q&As: ALAN KLANAC

FERRY AND CRUISE ON ORDER CONTENTS

EDITORIAL 01 On overcrowding

INSIDE STORY 04 Managing pax distress calls 4 08 Mitsubishi to review shipbuilding business

THEME 11 Ferries in Spain: A big industry 12 A comprehensive portrait of Spain's ferry industry 16 A bird's eye view of ferry companies operating in Spain 20 In conversation with key Spanish ferry industry personalities

MIDSHIPS 25 News 11 44 Statistics 48 Projects and conversions 49 Fleet changes 50 On order: ferry 55 On order: cruise

PROFILE 60 Janette Bell – P&O Ferries' MD 66 Saronic ferry services

JUST DELIVERED 69 CALANTHE OKUSHIRI 60 72 SEABOURN ENCORE

QUICK Q&AS 76 Alan Klanac, D.Sc., President of the Management Board, Jadrolinija

69 PHOTOS: WOLFRAM SCHEID, FRANK LOSE, P&O FERRIES, TSUYOSHI ISHIYAMA COVER: MIKE LOUAGIE

2 SHIPPAXINFO – JUL/AUG 17 THEME FERRIES IN SPAIN: A BIG INDUSTRY

Spain’s ferry industry is among the biggest and most comprehensive in Europe. The country has an ideal maritime geography for short-sea passenger and freight transport operations. The demand for ferry services is steady and growing tangibly. There are a number of well-established domestic and international ferry companies serving and competing in this market. The industry is complimented by the country’s experienced shipyards, which are at the cutting edge of shipbuilding tech- nology revolution and are building the next generation of ro- pax vessels. Above all, the industry is supported by the government and a modern landside infrastructure. Shippax commissioned Jose Rodríguez, an industry expert, to undertake a panoramic appraisal of Spain’s ferry industry.

With 30 years of experience in the transport sector, Jose Rodríguez is the CEO and Managing Partner of the Spain-based The Maritime Consulting Group. Since 1987, he has held several senior management positions in Spain and Latin America in various companies specialising in passenger and freight transportation. His experiences extend from surface transportation to supply chain management, warehousing, and tourism. Currently he is dedicated to his own strategic consulting business, aiming at providing innovative IT and business intelligence to the passenger shipping industry. MIKE LOUAGIE MIKE PHOTO: PHOTO:

JUL/AUG 17 – SHIPPAXINFO 11 A COMPREHENSIVE PORTRAIT OF SPAIN’S FERRY INDUSTRY TEXT: JOSE RODRÍGUEZ

Spain’s ferry transport infrastructure is among the most comprehensive systems in the world. It encompasses an immense number of ports for a relatively small country, as well as serving a large number of routes and users. In support of the industry, the government operates an inclusive subsidy scheme for both travellers and ferry operators. To complete the picture, the country also has well-established passenger shipbuilders that are embrac- ing new ferry technologies.

pain’s infrastructural develop- able to the Ministry of Public Works for reform, akin to what was recently ment in general has beneﬁtted and Transport, which is responsible for approved in Italy, as Spanish ports are Sfrom the country’s membership of implementing the government's port facing radically changing dynamics of the European Union. Its seaports and policies. maritime business. Ideally, the Puer- airports, in particular, have seen major Broadly speaking, 55% of Spanish tos del Estado should be devolved and investments in the last three decades, ports are located in the Mediterranean, decentralised into ten diferent entities. as well as its 200,000km of roads. The 27% on the Cantabrian coast, and 8% This suggestion is now under discussion country’s 3,000km high-speed rail in the Canary Islands. Collectively they and debate. The need for reform is also network is the largest in Europe and host around 130,000 ship calls annually, recommended by the European Union. second only to that of China. This is an handling 85% of the country’s imports In the light of continuous introduc- enviable achievement for a country of and 60% of its exports. The ports di- tion of new laws and requirements, 46 million people, 505,990km2 of ter- rectly employ about 35,000 people and especially those concerning the environ- ritories, and a nominal GDP of a little 110,000 indirectly, contributing about mental protection, ANAVE (Asociación over USD 1.23tn. 1.1% of Spain’s GDP, representing 20% de Navieros Españoles), the Spanish Spain today has one of the most ad- of the transport sector turnover. Shipowners’ Association, has recently vanced and efcient transport networks The port management is based on requested the public administration for in the world, perfectly complementing the so-called ‘landlord’ model, whereby more cooperation, consultation, and its rapidly modernising ferry industry. the port authority’s responsibility is lim- transparency in adopting new rules that The country is a strategic shipping hub ited to being a provider of infrastructure may afect the port sector. The progres- connecting Europe, Africa, the Mid- and land, regulating the use of the pub- sive regulatory framework so far has dle East, and Latin America. It is also a lic areas, maintaining fair competition, been costly to the industry. ANAVE logistics platform for Southern Europe. and ensuring quality in the provision of therefore has proposed that no new This is particularly epitomised by its services, which are mainly delivered by rules should be implemented without port system. private operators under a concession or allowing a reasonable period of grace authorisation. for shipowners to properly prepare for PORTS IN PERSPECTIVE Aside from other forms of deep-sea its impact – a clement request that fell and short-sea cargo ships, these ports rather short of demand. Among European Union countries, also handle a myriad of cruise, ferry, and Against this ever-evolving back- Spain has the longest coast line, about ro-ro trafcs efectively. Ports such as ground, Spain’s ferries of all shapes, 8,000km in total, spanning from the Barcelona, Palma de Mallorca, and Santa ages, and sizes set sail every day, and Atlantic coast in the Bay of Biscay to the Cruz de Tenerife are now major global every night. Western Mediterranean and all the way cruise terminals as well as being key down to the Canary Islands, encompass- regional ferry ports. VARIETY OF FERRY LINKS ing 46 state-owned ports and managed Strictly managed and controlled by by 28 port authorities, controlled and the agency in Madrid, Spain’s maritime Apart from the extensive domestic coordinated by the government agency port system is widely deemed to be far ferry and ro-ro networks connecting known as Puertos del Estado (State too centralised in the interest of fair the mainland with the Balearic Islands, Ports) – an independent body answer- competition. Many now openly call Canary Islands, and North Africa, Spain

12 SHIPPAXINFO – JUL/AUG 17 also has regular ferry and short-sea MILLIONS OF PASSENGERS visited Spain, a 10.3% increase on the freight services to the UK, Ireland, previous year. Incredibly, Spain attract- France, Italy, Greece, and beyond. Major Spain’s railways, airports and seaports, ed more foreign tourists than the USA ferry passenger trafc is concentrated in under the control of Ministerio de did last year. Not surprisingly, according the Strait of Gibraltar, where there are Fomento (Ministry of Development and to the World Economic Forum, Spain’s several links between Spanish main- Transport) – the so-called Fomento tourism industry has been repeatedly land ports and various North African Group – handle about 725 million topping the World Tourism Competi- ports, including the Spanish enclaves of passenger-journeys each year. tiveness Index year after year. Ceuta and Melilla. The competition in This ﬁgure is partly supported by On the whole about 465 million tra- this region is intense, with a few ferry the huge number of tourists the country vellers used Spanish trains last year, rep- companies engaged in tit for tat route attracts. In 2016, 75.6 million people resenting a 40% increase in four years; expansions in recent years. In the Balearic Islands and Canary Islands, there are companies engaged in vibrant inter-island ferry services, where competitions are equally cut- throat. Much of the country’s transport system depends on its domestic and international maritime networks. Spain’s ferry operators include well-known names such as Trasmediterránea and Baleària, both of which also have expanding international presence. Foreign ferry and ro-ro companies such as Brittany Ferries and Grimaldi Lines, too, operate to and from Spanish ports such as Santander, Bilbao, and Barcelona. MIKE LOUAGIE MIKE PHOTO: PHOTO:

JUL/AUG 17 – SHIPPAXINFO 13 about 230 million passengers passed through the country’s airports, an 11% Fred. Olsen Express’s Austal-built trimaran BENCHIJIGUA rise over the previous year, which was EXPRESS has been a huge success in the Canaries. FRANK LOSE already a record.

Compared to these huge numbers, PHOTO: the Spanish ferry sector, which carried 23.8 million travellers in 2016, is a relatively minor league player. The ocean cruise trafc ﬁgure to and from Spanish ports is even smaller, at 8.6 million. The total seaborne passenger number rose by just 4.48% between 2015 and 2016, a relatively slow march. It is widely believed that the sector’s lacklustre per- formance is due mainly to Spain’s recent economic woe and competition from budget airlines.

GENEROUS SUBSIDIES... FOR AIRLINES

Like in several other European countries, because of its social and geograph- ical nature, Spain’s public transport “Strictly managed and controlled by the agency services, including ferries, are still heav- ily subsidised by the state. It amounts in Madrid, Spain’s maritime port system is to EUR 450m annually: the biggest widely deemed to be far too centralised in portion of which, totalling EUR 355m, the interest of fair competition.” is awarded to air travels; the maritime sector receives EUR 95m. The subsidies are given mainly to non-mainland residents, especially to those who require inter-island transport and travelling between outlaying islands and the Directorate General of Mer- awarded contracts and concessions to and mainland Spain. In 2016, about chant Marine. provide services in the interest of the 5.3 million seaborne passengers took The scheme also favours large public, especially on non-profitable advantage of this scheme. Residents of families in proportion. Last year 769,000 routes. These subsidies are awarded the Canary Islands, Balearic Islands, and Spanish families of this category ben- based on safeguarding and promoting Spanish North African enclaves of Ceuta efitted from discounted domestic air free movements between the Spanish and Melilla are principal beneficiaries and sea travels. mainland and outlaying territories; they of these subsidies, which are run by the The Spanish government also ofers serve to ensure territorial continuity Ministry of Development and Transport subsidies to ferry companies, which are and social unity.

SOROLLA and FORTUNY both serve the Spanish enclave of Melilla from the Spanish mainland. The 1992-built DENIA CIUTAT CREATIVA is the former SCANDOLA. RICHARD SEVILLE RICHARD SEVILLE PHOTO: PHOTO: PHOTO:

14 SHIPPAXINFO – JUL/AUG 17 The conditions for these subsidies development programme in association using LNG as fuel. There is now a na- are very specific, governing service with its international partners. tionwide plan for further developing the schedules, ship’s passenger and vehicle Spanish shipyards are at the cut- LNG infrastructure. capacities, age of the vessels, the maxi- ting-edge of ferry building revolution. mum tarif allowed, ship registry, and Unfortunately, like most other builders COMPLETING THE PICTURE vessel speeds, etcetera. in Europe, they are chasing a diminish- Currently, Spain’s two main ferry ing number of new orders and are facing Spain has also a relatively young ferry operators, Trasmediterránea and the headwind of increased competition fleet serving regular and stable ferry Baleària, are awarded substantial sub- from builders in Asia, especially those in routes. Its ferry companies are perform- sidies for services linking the Spanish China, which are winning contracts to ing better compared to their contempo- mainland with the Canary Islands/ build large-scale LNG-powered vessels raries in Italy and Greece, for example. Ceuta/Melilla. for European owners. These companies are expanding, in Spanish shipyards are still mainly some cases reaching out globally. WELL-ESTABLISHED SHIPBUILD- building ofshore and fishing vessels. At At the end of the day, it is, we ING INDUSTRY the end of 2015, only 20% of their orders believe, the comprehensive nature of were for passenger ships. the industry – which encompasses a Spain’s ferry business is supported by its Having said that, Spain has one other viable port system, routes, government well-established, century-old ship- distinct advantage in connection with policies, and experienced shipbuild- building industry. Most of the country’s the next-generation LNG ferries. It has a ers – complemented by the country’s ferries are built domestically. Shipyards relatively more advanced infrastructure, modern and efcient transport network like Barreras, LaNaval, Astilleros experience, and decisive geo-strategic that sustain and nurture Spain’s ferry Armon, and Astilleros Vulcano are position to provide LNG bunkering business. This will continue to serve actively engaged in ferry building and services to ships. Seven of Europe’s 22 the industry well in the coming decade refitting. This is undoubtedly a major LNG re-gasification plants are situated when the Spanish ferry industry will strength of the country’s ferry industry. in Spain, with 36% storage capacity. undergo a technological revolution, It completes the picture. In addition, Spanish ports also ofer accompanied by a possible structural At the time when many other Euro- 50% discount on port charges for ships transformation. pean ferry operators are looking east, to China in particular, for their newbuild- ings, Spanish companies are still reso- Algeciras ferry port with VRONSKIY and POETA LOPEZ ANGLADA. lutely contracting domestic shipyards to build their ships. All three of the nation’s top conventional ro-pax operators – Trasmediterránea, Baleària, and Armas – are building new ships in Spain. In the case of Baleària, the company has a major, 56,000-gross-ton new ferry coming on stream in 2019. This ship will be LNG-powered, the first one of its kind in the Mediterranean, and built by LaNaval, a shipyard that is currently engaged in an intensive LNG vessel RICHARD SEVILLE The Visentini-Class VISEMAR ONE serves

Palma de Mallorca from Valencia. PHOTO:

In 2016 Africa Morocco Link entered the fray on the Gibraltar Strait. RICHARD SEVILLE FRANK BEHLING RICHARD SEVILLE PHOTO: PHOTO: PHOTO: PHOTO: PHOTO:

JUL/AUG 17 – SHIPPAXINFO 15 A BIRD’S EYE VIEW OF FERRY COMPANIES OPERATING IN SPAIN TEXT: JOSE RODRÍGUEZ

The natural characteristics of the Spanish geography mean that the country’s domestic and international transport system depends, to a large extent, on ferry and ro-ro services. It is therefore not surprising that Spain has a large and progressive ferry industry. There are currently more than ten ferry operators of various shapes and sizes serving this market, including a few renown and well- established brands.

TRASMEDITERRÁNEA and maritime stations in Barcelona, Va- the 2016 financial year, compared to that lencia, Las Palmas de Gran Canaria, and of 2015, to EUR 61m, according to José Operating a fleet of 23 vessels on 40 Cadiz. The company’s network stretches Manuel Entrecanales, Chairman of Ac- routes, Trasmediterránea is arguably to the Balearic islands of Ibiza, Mal- ciona Group. Spain’s biggest ferry company and in lorca, Menorca, and Formentera, as well In 2016 the group as a whole many ways one of the top 20 biggest as to the Canary Islands, Ceuta, Melilla, achieved an EBITDA of EUR 1.2bn, 1.5% ro-pax operators in the world. As a part Morocco, and Algeria. higher than in 2015. In relation to this of the Acciona group, the company cel- One of its main objectives is to ofer figure, Trasmediterránea closed the ebrated its 100th anniversary this year. a complete experience to its travelling financial year with a revenue of EUR It is the oldest ferry company in Spain, customers by adopting and pioneering 431m, 1.65% higher than the EUR 424m established in November 1916 through the use of new technologies. The com- attained a year earlier. a fusion of four shipowners and began pany has signed a Good Environmental The operator carried 2,508,535 pas- operation in January 1917. Practices agreements with eight port sengers in 2016, a 2.3% increase on the The line currently operates pas- authorities, aiming at carrying out a se- previous year, a total of 575,991 vehicles, senger and freight services between ries of measures to protect the environ- the Spanish mainland and the Canary ment and marine life, accompanied by Armas’ inter-Canaries VOLCAN DE Islands, Balearic Islands, and North periodic awareness campaigns. TABURIENTE and the high-speed craft Africa. Until recently, Trasmediterránea VOLCAN DE TIRAJANA. Throughout the century, the com- was considered by its holding company, pany’s fortune has been changing in Acciona, as a ‘non-strategic asset’ that accordance to that of the nation. It has was not profitable. It was put up for sale also evolved organically in the market. but as no proper buyer was found, the In 1978, Trasmediterránea was company embarked on a restructuring nationalised, became a state-owned process instead. At the last AGM, held entity until it was privatised in 2002. It on 18 May 2017, Acciona proclaimed that was sold to a consortium consisting of the restructuring had been successful, Acciona Logística, Caja de Ahorros del as Trasmediterránea now accounted for Mediterráneo, Compañía de Remolca- 5% of the group’s EBITDA. dores Ibaizábal, Agrupación Hotelera The continuous process of reorgani- Dóliga, Suministros Ibiza, and Naviera sation and efciency drives, combined Armas. Acciona alone has 60% control- with a relatively more favourable exter- ling interest in the company. nal economic environment and lower Headquartered in Madrid, Trasmed- fuel prices, allowed Trasmediterránea iterránea also operates its own terminals to increase its EBITDA by 50% during

16 SHIPPAXINFO – JUL/AUG 17 Trasmediterranea’s chartered Coraggio-Class TENACIA connects the Spanish mainland with Palma de Mallorca.

VOLCÁN DE TAUCE and VOLCÁN DE TEJEDA, built by Barreras in Vigo. At USD 22m per vessel, at the time these ships represented a significant investment for the company. It marked the beginning of a new era of expansion for Armas. Under its “Fleet Plan 2003/2006”, the company had four more vessels built by the same yard: VOLCÁN DE TIN- DAYA, which serves the Playa Blanca- Corralejo route; VOLCÁN DE TAMA- SITE, serving the Las Palmas-Morro MIKE LOUAGIE MIKE Jable route; VOLCÁN DE TIMANFAYA, serving the Tenerife/Gran Canaria-Lan- PHOTO: PHOTO: zarote route; and VOLCÁN DE TABUR- an increase of 5.7% over that of 2015, By current standard, Armas operates IENTE, which connects Tenerife with and 5,780,966 lanemetres of rolling a fleet of relatively newer ships, com- La Gomera and El Hierro. These four cargo for 1,143 customers, representing pared to other contemporary European ships were the largest single investment an increase of 2.3% from the previous ro-pax operators of the similar size. It made by the company so far. The Las year. has one ship under construction at Astil- Palmas-based operator also spread its leros Armon; the 35,587 gt unit is due for wings outside its core Canaries region NAVIERA ARMAS entering service in 2018. and entered the competitive market In 1975, the company introduced across the Alboran Sea. Family-owned Naviera Armas cel- its first roll-on/roll-of vessels to the ebrated its 75th anniversary recently. Canary Islands with the acquisition of BALEÀRIA Established in 1941, the company has a two minor units. The next major step major presence in the Canary Islands, taken by Armas was in 1995 when it de- The Dénia-headquartered Baleària is competing principally with Fred. Olsen cided to enter the passenger and freight the youngest among the top players. Express for inter-island services. market by introducing two new ferries, Established in 1998, the company is a

The 2009-built MARTIN I SOLER has been built for the Balearic trade but

also had a spell on the Gibraltar Strait, illustrating the ship’s ﬂexibility. FRANK LOSE PHOTOS: PHOTOS:

JUL/AUG 17 – SHIPPAXINFO 17 2005-built BENCHIJIGUA EXPRESS The Incat-built BENTAGO EXPRESS at Santa Cruz de Tenerife. Fred. Olsen ofers services on six routes throughout the Canary Islands: Tener- ife-Gran Canaria, Tenerife-La Gomera, Tenerife-La Palma, Gran Canaria- Fuerteventura, La Palma-La Gomera and Lanzarote-Fuerteventura. It is in direct competition with Armas. The company recently bought the 2011-built LEONORA CHRISTINA from Færgen A/S, the Danish ferry company, which had lost its Bornholm service concession to Mols Linien. The ship will join the Fred. Olsen ﬂeet at the end of 2018 when its current service contract expires.

FRANK LOSE LESSER PLAYERS PHOTO: PHOTO: Beside the top four domestic companies, major force in the Spanish ferry scene. had established a service on the same the Spanish ferry market is served by a Baleària is also the Spanish ferry route last year. number of other local and international company with the most global presence. Baleària employs 1,500 people and operators: some of whom are major Its Caribbean ferry service connecting deploys 25 vessels. It has an annual international players, such as Grimaldi Fort Lauderdale in Florida with Free- turnover of EUR 300m; it carries about Lines, Brittany Ferries and GNV, but port on Grand Bahama is most notable 3.5 million passengers and five million they normally link Spain with interna- in this context. Its international ex- lanemetres of cargo in 2016. Compared tional destinations. pansion continues under its ambitious to its nearest rival, Trasmediterránea, ‘internationalisation’ programme, which Baleària appeared to carry more passen- began in 2011. gers but less cargo. Corresponding to specific market requirements, the company operates a FRED. OLSEN EXPRESS mixed fleet of conventional ro-pax and “Beside the top four high-speed vessels. Including options, The Tenerife-headquartered Fred. domestic companies, the Baleària expects up to four newbuild- Olsen Express, a high-speed ferry ings by the end of 2019. Built by Visen- specialist was established in 1974. Spanish ferry market is tini of Italy and LaNaval of Spain, these Like the UK-based cruise line of the served by a number of four ships, if all built, will comprise of same name, the company is owned other local and interna- two dual-fuel and two LNG units, with by Norway’s Olsen family, which has the latter being 56,000 gt each, which been involved in the shipping business tional operators.” will be the biggest and the first-ever since the 19th century. Its first contacts LNG-powered ferries in the Mediter- with the Canary Islands were made in ranean. 1904 when it started ofering shipping Baleària is owned by Adolfo Utor, the services between the Canaries and chairman of the company, who holds a mainland Europe. In 1974 the family 57.5% interest, and the Matutes group, established a company called Ferry On the purely domestic front, one which controls the remaining 42.5%. Gomera S.A. This was changed to Fred. smaller operator is worth noting: the The company specialises in pas- Olsen S.A. in 1994. 40-year-old, Ibiza-based Trasmapi. senger and rolling cargo transport in The family also controlled the The family-owned company, under the the Balearic Islands and it is also one Ganger Rolf group, which merged with control of Insotel Group, operates seven of the largest players in the Strait of Bonheur ASA in 2016. Listed on the generally pax-only fast ferries between Gibraltar. Currently the line operates Oslo Stock Exchange, Bonheur is now the Balearic Islands of Ibiza and For- routes from Barcelona, Valencia, and the Norwegian holding company of the mentera. The passenger capacities of its Dénia to the Balearic Islands, as well Olsen family business empire. It has vessels range from 189 to 413. Trasmapi as inter-Balearic island services. In the numerous energy, shipping, and real es- also operates one 1977-built, 1,117 gt south, it operates the Algeciras-Tangier tate subsidiaries under its control. The ro-pax unit – CRISTOBAL COLON DE Med and Algeciras-Ceuta routes – east group also owns hotels, restaurants, a IBIZA. In all, the company carries about of the Gabraltar Strait it also connects complex of villas and apartments, a golf a million passengers per year. Almeria and Malaga with Nador as well course, and agricultural plantations in In the Strait of Gibraltar, The as Valencia with Mostaganem in Algeria. the Canaries. German-owned FRS Group has been In June this year, it also started the With its fleet of six modern high- operating ferry service from the Spanish Almería-Nador service, thus entering in speed vessels, including the world’s mainland to Morocco and Ceuta since direct competition with Armas, which first commercial trimaran fast ferry, the 2000, using both high-speed and con-

18 SHIPPAXINFO – JUL/AUG 17 ventional ro-pax ferries. The group has also signiﬁcant pres- TANGER EXPRESS crosses the Gibraltar Strait in ence in the Middle East. For more than a 90 minutes (Algeciras-Tangier Med). decade, FRS has focused its eforts on its RICHARD SEVILLE internationalisation plan, transforming

itself from a regional ferry operator to PHOTOS: an active international business group, with over ten branch ofces spreading throughout Europe, Africa, the Middle East and the USA, ofering ferry transport services for vehicles, passengers, excursions, and freight. Other international operators also play major roles in the Spanish ferry market. In the Mediterranean, two Italy- based companies, Grimaldi Lines and GNV, are most noticeable in their presence. They dominate international ferry and ro-ro connections from Barcelona and Valencia (Grimaldi Lines only) to various ports in Italy and North Africa, ofering services to Civitavecchia, Porto Torres, Cagliari, Savona, Genoa, Livor- Competition is ﬁerce and Inter Shipping’s chartered NOVA STAR no, Salerno and Tangier (Med). GNV equally connects Algeciras with Tangier Med. recently added the Barcelona-Nador service to its ofering. Africa Morocco Link, a joint Moroc- can bank BMCE (51%)/Attica Group (49%) operation, ofers up to eight services a day between Algeciras and Tangier Med. Its nearest comparable competitor, Inter Shipping, a newly emerged company now ofers comprehensive high-speed, ro-pax and ro-ro services on Algeciras-Tangier Med and Tarifa-Tangier Ville routes. On the Bay of Biscay coast, Brit- tany Ferries operates the long-standing Santander-Portsmouth and Bilbao Ports- mouth routes.

SATURATING THE MARKET

With a stagnating market and new AML is a joint-venture between BMCE (51%) and the Attica Group (49%) players emerging, it does appear that serving Algeciras and Tangier Med with up to three ferries. the Spanish ferry market may be in danger of over-saturation, if not already, especially in the Strait of Gibraltar where the competition is most intense and the battles are often internecine. For years now the elephant in the room has been the overcapacity question concerning nearly all Spanish domestic routes. It is unlikely that there will be any major passenger and freight volume increase on most Spanish ferry routes in the near term. In the medium to longer term, it is inevitable that the ferry industry in Spain will need to consolidate or rationalise, especially when larger operators are planning expansions and capacity increases.

JUL/AUG 17 – SHIPPAXINFO 19 IN CONVERSATION WITH KEY SPANISH FERRY INDUSTRY PERSONALITIES TEXT: JOSE RODRÍGUEZ

On behalf of Shippax, Jose Rodríguez was in conversation with a number of key executives of the Spanish ferry business in his probe into the state and direction of the ferry industry in Spain. The extracts from these dialogues shed interesting light onto the thinking behind various strategies and planning of the sector.

MIGUEL PARDO GIL-ALBERDI – personalised service to each customer, CCO OF TRASMEDITERRÁNEA through CRM (Customer Relationship Management), satisfaction surveys, and Jose Rodríguez: What are the keys to focus groups. Trasmediterránea’s continuous and Spain has a huge ofer of cheap TRASMEDITERRÁNEA successful growth? ﬂights to its islands, so we have focused

Miguel Pardo: First of all, we can’t ig- PHOTO: on the ferry customer niche: families nore the fact that the number of tourists with cars, groups on tour with buses, coming to Spain has reached a record. passengers with bulky baggage, and In this scenario, our aim has been to stay travelling with pets. close to our customers by first listen- Another advantage we have over air ing to their requests and then analysing transport is travelling by night, which our strengths and weaknesses. We have allows passengers to save money on realised that passengers appreciate our hotels at destination. For this reason, work, but they need better service from we have doubled our capacity on the our part, both before and during the Barcelona-Mallorca route that allows travel. both tourists and Mallorca residents to We started working on this early travel by night in both directions, every last year and we can already see some day. of the results from our eforts. Our On other routes, airlines are not strategy is based on improving the Miguel Pardo Gil-Alberdi competitors to the same extent, such customer experience, which in turn as Algeciras-Ceuta where there are is based on three maxims: first, prod- no air links. In this case we have uct quality, i.e., ship refurbishment hassle-free travel experience, from buy- increased our frequencies to ofer an and upgrading facilities on board and ing tickets to checking-in, boarding, early departure from Algeciras, at 6:55, entertainment; second, end-to-end and disembarking; and third, to aford to Ceuta, and we enjoy a good occu- pancy rate. The same applies to the Alcudia-Ciutadella and Gandía-Sant Antoni routes, which we have recently “Spain has a huge ofer of cheap flights to started. Even though there are airports nearby, the short ferry trip, about two its islands, so we have focused on the ferry hours, competes well with airlines, as customer niche: families with cars, groups the overall air travel time, including getting to the airport, security checks, on tour with buses, passengers with bulky and boarding, make the trip lasting up baggage, and travelling with pets.” to three hours, point to point. I hope our customers notice these Miguel Pardo, CCO of Trasmediterránea changes and continue to trust our services for the next 100 years.

20 SHIPPAXINFO – JUL/AUG 17 IN CONVERSATION WITH KEY SPANISH FERRY INDUSTRY PERSONALITIES TEXT: JOSE RODRÍGUEZ

about having a unique ﬁle on each client, eforts and resources. We are carrying which can be consulted and updated out a multitude of changes on board, by any point of contact of the company including implementation of digital and (ticketing desk, call centre, web, mobile interactive signage to provide better in- app, ships, social networks...), contain- formation to our passengers, new digital TRASMEDITERRÁNEA ing information about demographics entertainment platforms, technological

PHOTO: PHOTO: data, trips made, and tastes, etcetera, innovation to improve the pets’ travel so that we can provide better services, experiences, and adopting the advanced personalising customer care, and car- transformation right now in ePoS, sup- rying out uniform follow-ups from all plied by Carus Ferry. channels. These are just examples of the new 2. Improving sales channels - In May IT projects on which we are work- 2016 we launched our new website ing and are part of a broad strategic (www.trasmediterranea.com). It is an plan, the objective of which is to turn attractive and modern website that, Trasmediterránea into the leading ferry among other improvements with re- company of technological innovation. spect to the previous site, highlights the adaptation to multi-device, more clear ALBERTO VALL IBARROLA – SALES and efcient search engine and sales & MARKETING, LANAVAL process, private user area for personalised management and marketing of Juan Manuel Caballero Paton Jose Rodríguez: What can you tell us new products. A couple of months later about newbuilds? a new version of our TarsmeFerry App Alberto Vall: Since the founding of the was born, with new features such as ex- company more than 100 years ago, JUAN MANUEL CABALLERO press purchase that remember an earlier LaNaval has been dedicated to the PATON – CIO OF TRASMEDITER- trip and reuse the saved information to design and construction of sophisti- RÁNEA book another trip with just a few clicks, cated vessels, which add values to their private area for customising the experi- owners. Today LaNaval is focusing Jose Rodríguez: What can you tell ence in the App, and issuing the board- not only in the dredging and ofshore us about the technological and IT ing pass that will allow access to the markets but also in the ro-pax/ferry innovations that Trasmediterránea is vessel without a check-in at the counter. market, which has been very active currently developing? We are also currently working on a new in the last few years. The delivery of Juan Manuel Caballero: website for travel agents; we will have it TEXELSTROOM – which won the Trasmediterránea is currently engaged ready by the end of the year. Shippax Award 2016 for its unique in a technological and digital transfor- 3. Communications as backbone of CNG/diesel hybrid propulsion system mation supported by four fundamental transformation - Our aim in this regard and the innovative T-shaped cross sec- pillars: is ambitious, as we want to be the ship- tion allowing for a higher car intake – is 1. Customer centric - Putting the ping company in Europe with the best a good example. This is a new genera- customer at the centre of our activity communications at sea and on land. We tion of vessel in the market, equipped is much more than a project for an IT have made a great efort to ofer Wi-Fi with the latest technologies, a break- department, since it involves a whole service on board at a price well below through in energy consumption, and cultural change that afects the pro- the standard levy of the sector. We are environment stewardship. The ship is cesses and organisational structure of also in a process of updating all terres- powered by diesel oil or CNG, assisted the company. Within the scope of my trial communications that will allow us by batteries. This, as well as building a responsibility, the eforts concerning to establish a necessary basis to be able DP3 cable-laying vessel with dual-fuel this transformation are focused on ef- to implement all these technological propulsion, puts LaNaval in an unbeat- ficiently using the information we have changes. able position as the best choice to build for the benefit of our client. Therefore, 4. Technological innovation on Baleària’s LNG vessel. Baleària’s new one of the main initiatives in this part is board - As a shipping company, this is ‘smart ferry’ will be the first to run the implementation of CRM with 360º a part which I personally feel proud on natural gas in Spain. It will also be vision of our passengers. Basically it is and in which we are dedicating lots of among the largest in Europe and the

JUL/AUG 17 – SHIPPAXINFO 21 biggest [ro-pax] ever built in a Spanish shipyard. LA NAVAL

JR: What is the key advantage of PHOTO: PHOTO: LaNaval? AV: The clients can be sure of working hand in hand with our team from the very beginning of the project, giving them the option to modify the designs during the building processes. In fact we are working like this on our NB348 with Baleària right now.

MANUEL CARLIER – CEO OF ANAVE (SPANISH SHIPOWNERS’ ASSOCIATION)

Jose Rodríguez: Are you positive about the future of the ferry sector in Spain? Alberto Vall Ibarrola representing LaNaval at an exhibition. Manuel Carlier: Absolutely! The Spanish ferry industry is important and could grow further. In 2016, the ferry industry in Spain between mainland ports (Barcelona, second is the large ro-pax market share carried 23.8 million passengers. Taking Valencia and Dénia) and the Balearic of the cargo trafc between Italy and into consideration both passenger and islands, where daily ro-pax services Spain. In the last five years, maritime cargo trafcs, the Spanish ferry industry are so efcient and reliable that the services moved more than 45% of the is the third largest in the EU in terms of logistics companies have not felt the total cargo trade. Obviously, this big volumes, only behind Italy and UK. need to keep storage facilities on the share could not be maintained if the There are two interesting trades islands – freights are discharged early consistency and efciency of the ferry that demonstrate the high quality of in the morning on self-propelled ve- services were not in place. the ferry services ofered in Spanish hicles, which then are re-embarked in Taking into account the quality ports: first, the national cabotage trade the evening back to the mainland; the of service, the sizes of the Spanish economy and population (ranked fifth in the EU on both accounts), inhabit- ants on outlaying islands and North African enclaves, the large numbers of “It can be concluded that the ferry industry in Spain ports and tourists, it can be concluded that the ferry industry in Spain is prob- is probably undersized and could well grow further.” ably undersized and could well grow Manuel Carlier, CEO of ANAVE further. ANTONIO ARMAS – VICE PRESIDENT AND OWNER OF NAVIERA ARMAS ANAVE Jose Rodríguez: Last year Naviera Ar- PHOTO: PHOTO: mas celebrated its 75th anniversary. With a track record of success, new routes under consideration, and new ships under construction, how would you define your daily responsibilities in running a company that bears your name? Antonio Armas: For me it is a pride to represent the ferry company that bears my name, a company founded by

Manuel Carlier of the Spanish Shipowners’ Association meets with the author of the theme articles.

22 SHIPPAXINFO – JUL/AUG 17 my grandfather and reinvented by my JUAN IGNACIO LIAÑO – FLEET JR: What is your current fleet compo- father. My day-to-day responsibility is MANAGER OF FRED. OLSEN sition? immense. For the company to work, you EXPRESS JIL: Fred. Olsen Express currently has have to navigate 24 hours a day, seven five high-speed ships: two of them built days a week, and 365 days a year. It is a Jose Rodríguez: What is your view on by Austal and the other three by Incat. well-known fact that “an idle ship does the evolution of the passenger mar- One of them is the BENCHIJIGUA not generate revenue”. To keep the ship ket in the Canary Islands during the EXPRESS, the first trimaran in the sailing requires a maximum dedication Fred. Olsen era? world purpose-built for commercial ser- and attention, from the smallest detail to Juan Ignacio Liaño: Fred. Olsen has rev- vices, which is capable of carrying heavy the biggest decision. olutionised shipping since its inception cargo, and its pioneering design greatly in 1974, by implementing the strategy improved the comfort of passengers. JR: Personally and professionally of linking the Canary Islands’ nearest what do you think has contributed to ports with ferries to complement dif- JR: What can you tell us about the the Armas success story? ferent types of markets (passengers and new projects? AA: Professional maturity, sense of cargo). Moreover we also pioneered the JIL: We will soon receive a small vessel responsibility, having a clear vision of streamlining of port operations consid- of about 28 metres in length, with a timely expansions, and investment in erably using simple loading/unloading service speed of about 20 knots, built new projects are key factors contribut- systems such as ramps to bow and stern. in Dalmau Shipyard in Barcelona. The ing to success. This model, initially introduced on the vessel will serve the interior route of La Gomera-Los Cristianos route, quickly La Gomera. At the end of 2018 we will JR: What can you tell us about the spread to the rest of the archipelago, re- receive LEONORA CHRISTINA, the new projects on the Peninsula? sulting in an efcient inter-island trans- vessel we’ve acquired from the Danish AA: We are very focused on our cur- port model that has led the ferry sector shipping company Færgen A/S, another rent routes in the south of Spain, where to retain about 70% of the inter-island high-speed craft built by Austal. The we connect Huelva with the Canary passenger market; the airlines carry the ship is chartered to its former owner un- Islands, Motril and Almería with remaining 30%. til the end of 2018. Melilla, Nador, and Alhucemas, and of course the inter-island services in the JR: What can you tell us about Fred. Canary Islands, where we connect the Olsen’s commitment and experience seven islands daily. in fast ferry operations? JIL: In 1999, the company opted to spe- JR: What can you tell us about new cialise in high-speed operations by com- FRED. OLSEN EXPRESS FRED. OLSEN developments in the high-speed ser- pletely renewing its fleet. In less than

vices? five years we replaced all the conven- PHOTO: AA: After the acquisition of the two tional vessels with high-speed ro-pax fast ferries, VOLCAN DE TENO and units. After this switch, and choosing to VOLCAN DE TIRAJANA, we have join the nearest points between islands, learnt that a mixed fleet of conventional both passengers and freight are served and fast ferries is the one that best suits more efciently through considerably our particular circumstances. We have reducing the sailing time. a new fast ferry under construction at With this change of approach, the Incat in Australia and a conventional ro- company improves its competitiveness pax at Armon Shipyard in Gijon. against other transport models. Having We have not changed our course, obtained very positive results, we were nor are we going to bet on a very large able to ofer competitive pricing and a fleet of fast ferries, but we do believe in higher service frequency, akin to that of a mixed fleet. airlines. Juan Ignacio Liaño

See you onboard COLOR MAGIC 18-20 April 2018

24 SHIPPAXINFO – JUL/AUG 17