Ship Owner Expectations

Sibrand Hassing, Director Fleet Operations Europe, Holland America Group

Workshop “Sustainable Energy Supply & Innovative Solutions for Emission Reduction Improved Ports – Cruise Line Collaboration”, Bergen/Norway

Bergen / Norway, November 8th-9th 2017 Green Port Day – Ship Owner Expectations Sibrand Hassing Director Fleet Operations Europe Holland America Group “Sustainability is not a cost of doing business; it is a way of doing business.” Ship Owner Expectations

Content:

1. What is Holland America Group? 2. Overview of current industry position 3. Current Opportunities/Challenges 4. Shore Power 5. LNG, Project XL, Energy Efficiency Initiatives 6. Conclusions Ship Owner Expectations Holland America Group is part of Carnival Corporation & PLC 1. 9 brands 2.102 ships 3.19 new builds scheduled 4. Employees: 120.000 5. Ports: 700 6. Guests: 11,5 million  Holland America Group consist of 4 brands: 1. Princess Cruises (18 ships) 2. Holland America Line (14 ships) 3. SEABOURN (3 ships) 4. P&O Australia (5 ships) Ship Owner Expectations Any expectation is/will be based upon our Health Environment Safety Security (HESS) Policy:

1. Protecting the health, safety and security of our passengers, guests, employees and all others working on our behalf, thereby promoting an organization that always strives to be free of injuries, illness and loss. 2. Protecting the environment, including the marine environment in which our vessels sail and the communities in which we operate, striving to prevent adverse environmental consequences and using resources efficiently and sustainably. 3. Complying with or exceeding all legal and statutory requirements related to health, environment, safety, security and sustainability throughout our business activities. 4. Assigning health, environment, safety, security (HESS) and sustainability matters the same priority as other critical business matters. “Sustainability is not a cost of doing business; it is a way of doing business.” Ship Owner Expectations Overview current industry position - outlook:

Latest industry information: New building order book 2017-2026:

• 13 deliveries in 2017 • 15 deliveries in 2018 • 20 deliveries in 2019 • 13 are LNG powered Ship Owner Expectations Global Economic Impact (2015)

1. 39 cruise lines domiciled in Europe, 123 cruise ships with a capacity of around 149,000 LB – Another 73 vessels with a capacity of around 100,000 lower berths were deployed in Europe by 23 non-European lines. 2. @ 6.12 million passengers embarked on their cruises from a European port, up 4.6% over 2014. Of these around 5.0 million were European nationals and about 1.1 million came from outside Europe. Ship Owner Expectations

Total Economic Impacts of the Cruise Sector by European Countries 2015:

1. 39 cruise lines domiciled in Europe, 123 cruise ships with a capacity of around 149,000 LB – Another 73 vessels with a capacity of around 100,000 lower berths were deployed in Europe by 23 non-European lines. 2. @ 6.12 million passengers embarked on their cruises from a European port, up 4.6% over 2014. Of these around 5.0 million were European nationals and about 1.1 million came from outside Europe. Ship owner Expectations Current Opportunities/Challenges

• Increasing demand for cruising – Record newbuilding programme – Average ship size increasing – Innovative products

• New destinations – New ships are larger than previous generation – Port infrastructure needs to develop – Congestion

• Regulatory aspects – Particularly environment (global, regional, local) – Increased scrutiny from NGOs and local authorities – Air emissions, water discharges – Lack of cold ironing infrastructure – Limited availability of new fuels (i.e. LNG) Ship owner Expectations Can cruise ships be connected/use Shore Power supply?  YES!!! Criteria to make it successful: • Availability of an adequate supply of electricity at a reasonable cost. • Frequency of calls by cruise vessels equipped to connect to Shore Power. • Availability of the same dock and pier facility for these vessels for every call. • Adequate dock and uplands space for equipment. • Willing partners including –– utility, port and government agencies. Ship Owner Expectations Shore Power (cont’d):

 Technical requirements:

1. Dual voltage transformer that will supply to 11kV or 6.6 kV ships

2. Internal shore side monitoring & protection (protection relays)

3. Flexibility to connect either 11kV or 6.6kV (independent secondary breakers – with Kirk-Key interlocks) 4. Power carried through 5 flexible “Ship cables” 5. Grounding switch works in conjunction with ships automation system to ensure safety & reliability during cable handling Ship Owner Expectations Shore Power (cont’d):

Carnival Group Status:

• Number of ships fitted and ready now for shore power: 36 (two of which are ⇨50Hz)

• Number of ships with partial installation: 8

• Number of new builds on order with (partial) shore power installation: 16

• Number of ports in Europe outfitted for shore power (for cruise): 2 (Hamburg and Livorno) Ship Owner Expectations Carnival Group - Why choose LNG? • LNG is the only fuel that meets all emissions rules post 2020 without abatement or additional equipment • With adoption of IGF code there is regulatory certainty • Offers a significant reduction in GHG emissions • Aligns with sustainability commitments

@20% reduction in carbon 5-100% reduction in emissions particulate matter

85% reduction in nitrogen Zero sulfur dioxide emissions oxides Ship Owner Expectations LNG Journey: 1st experience - LNG power barge (Hamburg) Ship Owner Expectations AIDAprima & AIDAperla – use LNG as fuel in port

LNG by truck when in port in Hamburg, Southampton, Le Havre, Rotterdam, Zeebrugge, Barcelona, Civitavecchia, and Marseilles Ship Owner Expectations Project XL – ONE platform for ANY brand Ship Owner Expectations Energy-savings initiatives 1. Designing ships for greater efficiency: 2. Executing ship operation and maintenance initiatives: • Hull form optimization • Upgrade waste heat evaporators Installation Air Lubricant Systems • • State of the art automation control of • High efficiency propellers HVAC • Use of energy-efficient equipment Introducing differential blasting and hull (LED-lighting) • coating strategies to improve hull • Next generation HVAC-systems • Use of steam-turbines to generate • Hull and propeller performance monitoring electricity from waste heat to determine effective cleaning intervals • Low temperature heat recovery systems to increase the use of waste heat Ship Owner Expectations Energy-savings initiatives (cont’d) 3. Minimizing fuel use and engine 4. Implementing other energy-saving emissions: initiatives: • Optimize diesel generator loading • Design more fuel-efficient itineraries Modification of fuel systems to allow • • Use of voyage optimization tools for operations at optimal efficiency Increase energy use awareness through under port load conditions • education • Condition and performance monitoring • Energy efficiency management training • Use of advance turbochargers courses for engineers • Use of variable speed drives on fan • Energy monitoring for on-board systems and pump motors for on-demand to provide transparency into energy control consumption Ship Owner Expectations Conclusions

• Cruise shipping continues to grow

• Is a major economic contributor to the European and ports

• Continues to deliver innovation and technologically advanced designs

• Continued focus on environmental performance

• Delivering clean and economic operations

• Investment in energy efficiency and emissions reduction has economic benefit

• Engagement with stakeholders critical to our growth Thank you for your attention!