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Wärtsilä and Carnival agree €900m vessel optimisation deal Featured

Wärtsilä and cruise company Carnival Corporation have signed a 12-year performance-based agreement worth approximately €900 million, which will see digitalised data streams from vessel engines analysed by specialists for real-time optimisation of the equipment and prediction of operational and maintenance demands.

{mprestriction ids="1,2"}According to the agreement, all engine maintenance and monitoring work for 79 of Carnival Corporation’s vessels will be handled by Wärtsilä, with the deal providing for shared financial incentives based on the outcomes of the programme for both companies.

Wärtsilä's Dynamic Maintenance Planning (DMP) and Condition Based Maintenance (CBM) systems will be applied on the ships to capture the data required, to drive optimisation in vessel and fleet operations while potentially extending engine overhaul intervals.

With approximately 400 engines covered under the agreement, Wärtsilä notes that even the smallest improvements in vessel fuel consumption will add up to significant annual savings in fleet operational costs.

“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."

Remuneration under the contract is based on how the equipment performs, with the companies sharing exposure based on results. Of the expected €900 million long-term value of the agreement, the expected revenues for the first 24 months, approximately €150 million, will be included in Wärtsilä’s books for the first quarter of 2017. As the contract becomes effective as of April 1, the expected revenues for 2017 are €56 million.{/mprestriction}

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