In February, the impact of the pandemic on the Port of Barcelona's results was made public, amounting to 34 million euros, of which 13 million are attributable to the paralysis of the cruise industry in 2020 (almost 40% of the total).
Article from CruisesNews magazine no. 57 – June 2021
In 2020, total revenue fell to €139 million, reaching levels not seen in 14 years, a 20% decrease compared to the previous year. Profit reached €17 million, 63% less than in 2019. Total cargo traffic at the Port in 2020 was 59.5 million tons, an 11.9% reduction, returning to levels seen four years prior. Passenger numbers plummeted by 81%, from 4.6 million in 2019 to 858,000 in 2020.
Regarding infrastructure investments, they reached 20 million in 2020 and in 2021 the Port of Barcelona plans to undertake works worth 50 million, mainly logistics and rail, but also environmental.
The Port of Barcelona's Dock Electrification Plan
: In January 2020, the Port of Barcelona's board of directors approved the drafting of the Dock Electrification Plan, with the goal of electrifying all docks within seven years. This plan details the actions to be taken to electrify, among others, the docks used for cruise ship traffic, an objective with a preliminary cost of around €60 million. This project is the Port of Barcelona's response to the current climate situation and will result in ships no longer using their diesel engines to generate electricity on board when docked.
Previously, the Port of Barcelona had requested a high-voltage (220 kV) connection from the Spanish Electricity Network (REE) to provide approximately 80,000 kW of power to serve docked ships, separate from the existing electricity distribution network. Half of this power would be available at the Moll Adossat dock for cruise ships.
In March 2021, Red Eléctrica confirmed the construction of the Ronda Litoral Substation with a connection to the Port of Barcelona, a necessary step towards implementing the Dock Electrification Plan. This project, driven by the autonomous port authority, will reduce CO₂ emissions from port operations by 50% over the next decade, achieving the goal of becoming a carbon-neutral port by 2050, with an investment of nearly €60 million. As a result, all cruise ships will be able to connect to the newly created electrical grid once docked, using clean energy with 100% renewable origin certification.
A new substation in the Port of Barcelona will be supplied from the Ronda Litoral substation of Red Eléctrica Española via a high-voltage underground cable, enabling the development of a medium-voltage network for the port area to meet the new electricity consumption needs. The projected consumption of cruise ships at the Moll Adossat is 30,000 MWh/year, which will be supplied via a submarine cable from the Ronda Litoral. The electrification of the main docks in the Port of Barcelona will eliminate approximately 100,000 tons of greenhouse gases (GHG) or CO₂ annually, as well as significantly reduce emissions of other particles that affect air quality, such as NOx, SOx, and particulate matter (PM).
Other improvements at the Port:
During the months when cruise activity has been suspended, the Port of Barcelona has taken the opportunity to carry out improvement works in the Adosado Wharf area designated for this traffic. €2.6 million has been invested in upgrading the mooring system at the cruise terminals to increase berthing safety. Accessibility to the area has also been improved by widening Gate 2 to the Adosado Wharf, doubling the access control points, and relocating and remodeling the traffic distribution roundabout at all cruise terminals. These works represent an investment of €1.22 million.
The Port anticipates a better 2021 than 2020, although the impact of the pandemic will continue. Cargo traffic is growing, but cruise traffic will only resume in the second half of the year, and incentives for businesses worth €24 million will remain in place.
Furthermore, regarding the expansion of the Adosado Wharf, the consolidation of the third phase was carried out between February 2020 and April 2021. This work enables the construction of the new cruise terminal awarded to MSC Cruises at the last Port Authority Board meeting, located on the final section of the wharf, in the space currently occupied by Terminal Port Nou. The purpose of the work was to place a pre-fill of earth on part of the fill and caissons that make up the new wharf line, corresponding to the third phase of the Adosado Wharf expansion. The investment in this case was €2.6 million.
Regaining its leadership as a cruise homeport.
On Saturday, May 29, a resolution dated May 27, 2021, from the Directorate General of the Merchant Marine was published in the Official State Gazette (BOE). This resolution repealed the resolution of June 23, 2020, which had established restrictive measures for cruise ships to address the health crisis caused by Covid-19. That June 23 resolution prohibited passenger ships on international voyages from calling at Spanish ports. The lifting of restrictions in Spain occurred on June 7. Since then, announcements of the return of cruise ships to Barcelona have multiplied.
The progress in vaccination across Europe has been a decisive factor in leading authorities to lift the ban on cruise lines operating in their ports. Furthermore, the Ministry of Health has approved the document outlining the requirements that all cruise lines must meet to operate in ports throughout Spain. However, to offer an attractive cruise, an itinerary is essential. In this regard, Italian ports were already open, and French ports reopened on June 30th.
MSC Cruises was the first to announce its return to Barcelona. On Saturday, June 26, the MSC Grandiosa set sail from Barcelona, offering a seven-day itinerary with stops in Genoa, Civitavecchia, Naples, Palermo, Valletta, and back to Barcelona. A ship will depart from Barcelona every Saturday, and starting July 30, another voyage will also depart from Valencia, with an itinerary that includes stops in Barcelona, Genoa, La Spezia, Civitavecchia, Rome, and back to Valencia. MSC Cruises' newest ship, the MSC SeaHorse, will also begin calling at Barcelona in September, with an itinerary that includes Marseille, Genoa, Naples, Messina, Valletta, and back to Barcelona.
Eliminating 100,000 tons of CO2 annually from the port is equivalent to eliminating the annual emissions of almost 50,000 inhabitants of Barcelona, according to data from the Barcelona City Council.
Another Barcelona customer that will soon return to the Catalan capital is Costa Cruises, in this case starting July 5th with its flagship, the Costa Smeralda, with stops in Palma, Messina, Civitavecchia, Savona, Marseille, and a return to Barcelona. Later, it will be joined by the Costa Firenze, an ultramodern ship initially intended for the Chinese market, but which, starting September 17th, will offer a seven-night route with stops in Barcelona, Marseille, Savona, Civitavecchia, and Naples. Meanwhile, the Costa Diadema will offer two itineraries from Barcelona: the first, a 14-day cruise, will begin on September 26th, heading to the Eastern Mediterranean with stops in Istanbul and Izmir; and the second, starting November 12th, will include stops in Savona, Marseille, Malaga, Cadiz, Lisbon, Gibraltar, and Valencia.
Another company resuming operations is Aida Cruises with the AIDAPerla, which also has Palma de Mallorca as its home port. It offers two alternative itineraries from Palma de Mallorca/Barcelona from July 10th to October 30th, 2021. The first route calls at Cádiz, Málaga, Cartagena, and Barcelona, while the second stops at Alicante, Ibiza, Valencia, and Barcelona. Another German cruise line, TUI Cruises, will begin operating in Barcelona from June 29th with the Mein Schiff 2, its most modern ship, and like Aida, will also be based in Palma de Mallorca, offering interporting services.
Another long-standing client of the Port of Barcelona, Royal Caribbean International is making a strong commitment to the city by assigning the Harmony of the Seas, the world's largest cruise ship, to the Catalan capital starting August 15. The ship will offer seven-night cruises in the Western Mediterranean, with stops in Palma de Mallorca, Marseille, La Spezia, Civitavecchia, and Naples. Its rival, Norwegian Cruise Line, will return to Barcelona with the Norwegian Epic starting August 30. The ship will also offer seven-night itineraries in the Western Mediterranean, with stops in Livorno, Civitavecchia, Naples, Cagliari, and Palma de Mallorca.
Viking Ocean Cruises, the fastest-growing upper-premium cruise line in recent years, is also investing in Barcelona. The Viking Star will offer departures starting August 3rd, with Valletta serving as a home port. The itinerary includes stops in Valletta, Messina, Naples, Civitavecchia, Livorno, and Genoa.
Growth expectations for the current year.
In any case, despite the confidence shown by shipping companies in Barcelona, the results for 2021 will still be far from those of 2019. Large ships began arriving in Barcelona in April, so four months of the peak season have been lost. The vaccination campaign in Europe is still ongoing, and Covid-19 passports are yet to be tested, so all eyes are on 2022, when shipowners anticipate a rebound in cruise activity thanks to the increase in air connections, the completion of vaccinations, and the relaxation of restrictions at key cruise ports of call.
In the second half of 2021, all cruise ship owners who are long-standing customers of the Port of Barcelona have already confirmed that they will resume operations from its docks.
Spain will remain one of the most attractive cruise destinations in Europe and the Mediterranean after the pandemic, and it is expected that cruise lines will not return to normal operations until 2022. Barcelona is at the forefront of this recovery, and its docks will return to their usual levels next winter (2021-22): MSC Cruises will keep the MSC Grandiosa in port next winter, reinforced by the MSC Fantasia; Costa will operate the Costa Toscana; Aida will call at ports with the Aida Prima and the Aida Stella, and so on.
In summer 2022, the Norwegian Epic will return in April, and the Costa Toscana, Costa Fascinosa, and Costa Smeralda (upon its return from South America) will once again offer cruises from Barcelona. MSC Cruises will offer cruises from Barcelona with the MSC Fantasia, MSC Grandiosa, and MSC Seaview. Aida will maintain the Aida Stella and will launch the new Aida Cosma from Barcelona, which will compete with the Mein Schiff 2, which will remain based in Barcelona throughout the summer. The Allure of the Seas will also return for a second consecutive season from Barcelona. Marella Cruises, Oceania Cruises, Celebrity Cruises, Princess Cruises, and many more—the list of cruise lines returning to Barcelona is endless.
New terminal for MSC Cruises
But the Port of Barcelona's main bet to revive the cruise industry has been the approval of the new MSC Cruises terminal, pending since 2017 and which represents an investment of 33 million euros in a building designed by Ricardo Bofill, according to the initial plans, which anticipated having it inaugurated this 2021.
The Port of Barcelona took the first step towards this terminal in 2017 with the extension of Dock 2B to the south, constructing a 476-meter-long berth with a 12-meter draft, as well as infrastructure dedicated to handling roll-on/roll-off cargo ships. This freed up the space occupied by Terminal Port Nou and enabled the construction of the terminal.
But the real starting signal was given on May 31, 2021, when MSC Cruises received final approval from the Board of Directors of the Port of Barcelona to build and operate an exclusive cruise terminal. This concession involves constructing an innovative 11,670-square-meter terminal spread over three levels, which MSC Cruises will operate and manage for a period of 31 years. The project is estimated to represent an investment of €33 million by MSC Cruises. The new terminal is expected to enter service in 2024.
Pierfrancesco Vago, CEO of MSC Cruises, stated: “We are particularly pleased to have been awarded this new multi-year concession for the terminal. Barcelona is not only an important homeport for the Cruise division, but also for the entire Group and its shipping business. As such, the new terminal is further proof of the MSC Group’s long-standing commitment to the city of Barcelona and the entire region of Catalonia. It is also an honor to partner with the renowned Ricardo Bofill and his company for this project. Together, we will build a new, state-of-the-art terminal that will become another landmark for the beautiful city of Barcelona.”.
The Dock Electrification Project reaffirms the Port of Barcelona's commitment to sustainability.
“And more importantly, the new terminal will allow us to expand homeport operations, which will bring direct and indirect economic benefits to the city and the wider region. These benefits will come from increased local spending by our international passengers flying to or from Barcelona Airport, who are likely to spend more time in the city and its hotels with their companions. Homeport operations will also allow us to dedicate more new ships to Barcelona, including the MSC World Europa, which is currently under construction and will become one of the world’s most environmentally friendly ships when it enters service.”.
The new MSC Cruises terminal will be equipped from the factory with power outlets that will allow the diesel engines to be switched off while the cruise ships are docked, as well as for LNG refueling. This includes MSC World Europa, the brand's first LNG-powered cruise ship, which is currently under construction in France and will enter service in 2022.
This project will allow MSC Cruises to consolidate its presence in Barcelona and expand its operations as a home port. This will bring direct and indirect economic benefits to the city and its surrounding area, especially due to the arrival of a greater number of international travelers who will spend more time in the city before or after their cruise. In 2019, MSC Cruises made a total of 163 port calls in Barcelona, including 44 by its most modern ship, the MSC Grandiosa.
For this project, MSC Cruises has partnered with the world-renowned Catalan architect Ricardo Bofill and his studio. Together, they hope to build a state-of-the-art terminal that will become another landmark for the city. Bofill is the designer of Terminals 1 and 2 at El Prat Airport, the Málaga Airport terminal, the Savona cruise terminal, the Palacrociere, developed by Costa Cruises, and the W Hotel, whose sail-like shape dominates the Barcelona port skyline.
New health measures:
Health authorities, together with the Ministry of Transport, Mobility and Urban Agenda, have approved the requirements that all cruise ships must meet to call at our ports, especially in the Mediterranean. The Port of Barcelona has been working for over a year at the local, national, and international levels to ensure safe port calls at its docks.
In 2019, the Port of Barcelona awarded €831,000 in environmental bonuses to eco-friendly cruise ships
The document outlines three main sets of measures that ships must implement to ensure the safety of passengers and crew: general guidelines, specific guidelines, and an internal protocol for action in case of infection on board. The Port of Barcelona, in collaboration with the shipping companies, guarantees in its protocol the requirement to present a negative PCR test taken within 72 hours of boarding, or alternatively, a vaccination certificate. Temperature checks will be conducted at the terminals, and all luggage will be disinfected. There will be designated isolation areas at the terminals. Port of Barcelona employees work in bubble groups with a designated COVID-19 coordinator for each shift.
