Wärtsilä and Carnival Corporation announce 12-year performance-based partnership
Wärtsilä to perform engine maintenance and monitoring work for 79 of Carnival Corporation's vessels in a deal worth approximately €900 million
Wärtsilä and Carnival Corporation, the world's largest cruise company, have signed a comprehensive, 12-year agreement that strengthens their existing partnership and joint continuous improvement efforts to maintain the highest possible levels for cruise ship safety and reliability. The performance-based agreement provides for shared financial incentives and exposure based on outcomes for both companies.
The value of the long-term agreement is approximately €900 million. According to the agreement, all engine maintenance and monitoring work for 79 of Carnival Corporation's vessels will be handled by Wärtsilä, and ongoing planning will be a collaboration between both companies.
“Our agreement with Wärtsilä extends our cooperation to a strategic partnership,” said Bill Burke, Chief Maritime Officer for Carnival Corporation. “With Wärtsilä maintaining vessels under our agreement and ensuring a high level of safety and reliability, we can concentrate on our core priority - providing great cruise vacations for our more than 11 million annual guests. In addition to reducing our costs, the long-term agreement increases safety and operational efficiency - two critical advantages in the fast-growing cruise market.”
The agreement includes Wärtsilä's Dynamic Maintenance Planning (DMP) and Condition Based Maintenance (CBM). These services are based on capturing digitalised data streams from every engine, after which this data is analysed by specialists. This allows real-time optimisation of the equipment whilst predicting operational and maintenance demands. With the DMP and CBM in place, vessel and fleet operations are optimized and engine overhaul intervals potentially extended. With approximately 400 Wärtsilä engines covered under the agreement, even the smallest improvements in vessel fuel consumption add up to significant annual savings in fleet operational costs.
“We are very excited to develop our long-term partnership into a more strategic direction. Both Wärtsilä and Carnival Corporation are committed to investing significantly in this partnership as well as to develop our cooperation in the long run. We are confident that working closely together, we can improve performance in both organisations,” said Pierpaolo Barbone, President, Services & Executive Vice President, Wärtsilä Corporation.