Cordelia Cruises plans expansion as larger cruise lines look to sell smaller ships

The Indian cruise line Cordelia Cruises has announced plans for immenent expansion of its one-ship fleet as larger cruise lines put in orders for ever-larger ships and look to offload smaller vessels.

The plans to increase the fleet by at least two ships were announced following a board meeting in Mumbai. The new vessels, purchased second-hand, will have a capacity of around 2,000 guests, according to the line.

Cordelia Cruises did not announce which cruise lines it was in talks with, but its current vessel, Empress, is the former Royal Caribbean cruise ship Empress of the Seas, and Royal Caribbean International has been planning for some time to replace its smaller Vision class vessels with a new design platform.

Norwegian Cruise Line is another big operator that has several older ships in the 2,000-guest range, and is actively expanding the fleet with larger, more advanced vessels. The line recently confirmed an order for four 200,000-plus gross ton mega-ships on-par with Royal Caribbean’s Oasis class.

Neither cruise line has confirmed plans to sell ships, and on the open brokerage market there are dozens of cruise vessels for sale in the 2,000 passenger range from a range of operators. 

Cordelia will raise up to US$92 million for the expansion, suggesting plans to purchase a fairly advanced second-hand vessel, and comments following the board meeting suggest it is specifically looking to buy from cruise lines with orders for larger ships.

“The board further decided, subject to regulatory approvals, to raise funding/capital through appropriate means of financing including an Initial Public Offering (IPO) to raise approximately Rs. 800 Crores (US$92 million) in the Indian capital market by issuing equity to institutional and other eligible investors,” the company announced.

“We are in discussions with major cruise companies from the US & Europe, who are looking to divest ownership of their smaller ships with passenger capacities ranging between 2,000 to 2,500 guests per ship, as they transition to newer vessels with capacities of 5,000-7,000 guests,” said Jurgen Bailom, President & CEO, Cordelia Cruises.

“We have multiple offers from existing cruise lines as they upgrade their fleets with larger ships. Given the current market dynamics, it is an opportune time for us to expand our fleet,” Bailom added.

The Indian government, like Saudi Arabia and the UAE, has designated cruise tourism as a priority sector for growth, and Cordelia Cruises says that India’s cruise industry is poised to substantially boost both domestic and international tourism, generating significant employment opportunities.