The Cape May Light and the Cape Cod Light,
two coastal cruise vessels commissioned by the now-defunct American
Classic Voyages, may have a new owner after five years in storage
and a combined five months on the water.
Hornblower Marine
Services, an Indiana-based company that provides marine operations
for ferries, casino boats and cruise vessels, said it would
purchase the identical 224-passenger vessels, which have been
property of the U.S. Maritime Administration since AMCV went
bankrupt in 2001, unable to recover from the blow the 9/11 attacks
dealt the travel industry.
Ships to serve Great Lakes
John Waggoner,
president and CEO of HMS, said that he expects the transaction to
close in late October.
Michael Lomax,
managing director of business development for HMS, joined the
company six months ago as a consultant to the deal.
Once it goes
through, he said, he will outline strategy, itineraries and product
development for the ships, under a yet-to-be named cruise
brand.
Lomax, a small-ship
industry veteran, had his eye on the ships for a while. When he
heard HMS was interested, he saw a partner.
"With their
expertise in marine operations and my background in small ship
cruise launching and marketing, I saw a great opportunity to bring
them back into operation," he said.
Lomax said the
ships will operate three-, five- and seven-day itineraries
primarily in the Great Lakes.
"It's a new
frontier for small-ship cruising. When you consider the cities that
surround the Great Lakes, there's tremendous culture and history
that will complement the thematic design of the ships."
The ships were
built at Jacksonville's Atlantic Marine shipyard to resemble
turn-of-the 19th-century steamers.
The 1,580-ton
coastal vessels have had almost no sea time. The Cape May Light
operated for only five months, and the Cape Cod Light had not been
delivered when AMCV declared bankruptcy and suspended operations on
Oct. 19, 2001.
Upgrades planned
HMS and MARAD would
not disclose the terms of the agreement, but the price was
certainly below each ships' $45 million construction cost. MARAD
tried to auction the ships for $12 million each a year ago and did
not find a buyer.
"We got a good
value, but there's a cost to refurbish and get them up to operating
standards," Lomax said. "The investment is substantial."
He said the vessels
will be upgraded to offer premium service and amenities. MARAD kept
the ships in very good condition, he added, and they are still
essentially brand new.
"The ships were not
purchased in five years for good reason," Lomax said. "There hasn't
been a company with the expertise to take on the project. HMS's
expertise is in knowing how to get them back into service
quickly."
Rod McLeod was the
president of AMCV when it went under in 2001. He said last week
that this is a "perfect time" to bring the small, American-flagged
ships back.
"What I'm seeing is
the big ships are doing great, but the small ship business is doing
wonderfully well," he said. "It would be nice to see those ships
return to service. They deserve a good home."
To
contact reporter Johanna Jainchill, send e-mail to [email protected].