Tags: Carnival | Million | safety | incidents

Carnival Will Spend Up to $700 Million on Safety After Incidents

Wednesday, 17 Apr 2013 01:58 PM

Carnival Corp., the cruise operator beset by mishaps at sea this year, will spend $600 million to $700 million to enhance emergency procedures across its entire fleet, including 24 Carnival Cruise Lines ships.

Carnival will increase emergency generator power across its cruise ships and all 101 vessels in its fleet. The company will invest in the newest technically advanced fire-prevention, detection and suppression systems, according to a statement from the Miami-based company today. Carnival Cruise Lines is also creating a Safety & Reliability Review Board, where outside experts will provide advice.

This month the cruise ship Triumph broke loose from a dock in Mobile, Alabama, under heavy winds and two people were tossed into the water when a guard shack blew over. The ship was under repair after a fire and engine failure in February left 3,100 passengers adrift of the Mexican coast without working toilets and electricity. The Triumph mishap was the first of at least three incidents this year involving separate ships.

“Clearly safety is our highest priority,” Howard Frank, vice chairman and chief operating officer, said at the company’s annual meeting today. “We’ve learned much in the past several years and we continue to learn.”

Carnival, which had about $2.3 billion of capital expenditures last year, will spend more than $300 million on upgrades to its namesake cruise line, according to today’s statement.

Carnival said this week it would reimburse the government for help responding to accidents aboard the Triumph and Splendor liners. U.S. Senator Jay Rockefeller, a West Virginia Democrat who heads the Senate Committee on Commerce, Science and Transportation, had asked the company in a March 14 letter whether it would pay $4.2 million in rescue and investigation costs incurred by the U.S. Coast Guard and Navy.

Carnival fell 0.4 percent to $33.19 at 11:11 a.m. in New York. The shares had dropped 9.4 percent this year through Tuesday compared with a 10 percent gain for the Standard & Poor’s 500 Index.

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Carnival Corp., the cruise operator beset by mishaps at sea this year, will spend $600 million to $700 million to enhance emergency procedures across its entire fleet, including 24 Carnival Cruise Lines ships.Carnival will increase emergency generator power across its...
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Wednesday, 17 Apr 2013 01:58 PM
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