The Global Dream 1 and 2 would be the largest cruise ships in the world. After the insolvency of the MV shipyards, both are threatened with scrapping before completion. How could it come to this? A quest for answers.
The news that an almost finished cruise ship from a shipyard in Wismar and one whose hull is, after all, well advanced, are only worth scrap has shaken many. Has the dream of many vacationers of cruising through the South Seas fallen victim to Corona forever? Are the giants of the sea permanently outlawed as climate polluters? Or was it just a false speculation that led to this development? Here are the answers to the most important questions.
The Global Dream 2 – as it is in the Rostock-Warnemünde building dock – could not even go to another location in its current state to be completed there. Insolvency administrator Tomorrow will therefore try to sell the machinery and equipment while the body is simply sold off. The insolvency administrator hopes to be able to sell the steel colossus bit by bit as scrap goods. He does not want to tell FOCUS Online what amount of proceeds Morgan expects.
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The future of sister ship, Global 1, is less clear. The goal is still “that the Global 1 sails as a cruise ship,” according to the insolvency administrator. The ship is three-quarters finished and at least buoyant Chinese market is intended. In China, an occupancy of four people per cabin is not unusual. Genting has given the production price of the Global 1 at around 1.5 billion euros. It was agreed with the shipyard that the insolvency administration will use the Wismar shipyard hall for the Global 1 until the end of 2023 and the shipyard’s equipment quay until the end of 2024″. A buyer must be found by then.
It was agreed not to disclose the purchase price. And what happens to the employees of MV Werfen? The “recruitment will take place with the corresponding order situation primarily from a transfer company that was set up for the former employees of MV Werften”. In addition, there would be an agreement on, among other things, taking on trainees and setting up co-determination structures. Employees should only be partly comforted by this promise – after all, submarine production is not scheduled to start until 2024, and details have not yet been determined anyway.
The facility in Warnemünde – where Global 2 is located – could be taken over by the German Navy in order to service ships there on its own. In this case, the buyer would be the federal government. According to media reports, the Ministry of Defense was making extensive plans for an offer to take over. The plans envisage that the Federal Agency for Real Estate Tasks (BImA) could take over the infrastructure of the shipyard. The form in which shipyard workers can switch to public service is currently being discussed. A figure of around 400 to 500 employees is mentioned.
In contrast to the Global 1, the Global 2 cannot swim at all and would first have to be further built at the current location, which significantly limits the circle of potential buyers. Also, the luxury ship was designed for use in Asia and a new owner would have to invest a tidy sum to redesign the cabins, deck and propulsion concept if they wanted to use it in other parts of the world.
In addition, the business of the cruise industry – mainly because of Corona – is developing poorly and is associated with great uncertainty. The annual balance sheet of the German Travel Association (DRV) provides a rough indication. Accordingly, the turnover of deep sea and river cruises was 1.1 billion euros and thus 52 percent less than in the first Corona year. “Compared to the time before Corona, sales have fallen by more than 80 percent within two years,” says the association. Globally, last year was just as difficult for the industry as 2020. The big four – Carnival, Royal Caribbean, Norwegian and MSC – together lost about $20 billion, down from $21 billion a year earlier.
The insolvency administrator has the task of managing the insolvency estate, i.e. the incomplete cruise ships, and turning existing values into money in order to be able to distribute the proceeds to the creditors. So if Morgan can’t sell the ships as a whole, he sells the parts and scraps the rest. According to industry insiders, a huge shipment of life jackets has already changed hands. However, most of the Global Dream 2 is likely to be scrap metal. After all, the high steel prices could help with disposal.
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The contribution “Both mega ships scrap? Wasted tax money? Five answers to the cruise fiasco” comes from WirtschaftsKurier.
