Singapore’s SembMarine Wins Royal Caribbean Cruises Deal

With the two cruise terminals here drawing in cruise ships from major lines, work has flowed in for the shipyards.

Sembawang Shipyard, a wholly owned subsidiary of Sembcorp Marine, has been given a "favored customer contract" by Royal Caribbean Cruises to repair, revitalize, upgrade and provide related marine services to its ships.

The world's second-largest cruise company operates 41 ships under five lines including Celebrity Cruises, Azamara Cruises and Royal Caribbean International.

The contract will include two Royal Caribbean cruise ships undergoing major revitalization at Sembawang Shipyard and a third ship for drydocking and repairs between January next year to the year after, with total estimated sales ranging from $50 million to $70 million, depending on the scope of repairs and upgrading packages of the ships.

In 2010, it secured a long-term contract with Carnival Corporation, the world leader, to repair and refurbish its ships cruising in the Far East. The contract is still in force.

Sembawang Shipyard has repaired and upgraded more than 150 passenger ships since the 70s and has gunned for fast-growing niche markets such as those for cruise ship repair and upgrades, said Wong Lee-Lin, the executive director of Sembawang Shipyard.

Neeta Lachmandas, assistant chief executive of the Business Development Group of the Singapore Tourism Board, described the contract as a significant milestone for Singapore's cruise industry.