MIAMI -- Norwegian Cruise Line acquired the classic liners the
United States and the Independence as part of the line's plan to
expand its U.S.-flag operations.
Both ships already carry a U.S.-flag designation, which fits
them squarely into NCL CEO Colin Veitch's plans to grow the line's
U.S.-flag business beyond Hawaii, where NCL will begin interisland
cruising with the first of its two Project America vessels next
year.
New legislation gave NCL the opportunity to reflag and sail up
to three vessels in Hawaii.
But Veitch plans to position the United States and the
Independence in other U.S. markets, making NCL the only Big Three
cruise line able to sail the continental U.S. without working a
foreign port call into the itinerary.
"We're expecting to have a good, solid market in Hawaii," Veitch
said. "And on the back of that, we believe we can grow our
U.S.-flag business."
Veitch said the expenses of running a U.S.-flag operation --
costs that include U.S. taxes and crew -- can be mitigated by
purchasing an existing U.S.-built ship and placing it in a
itinerary where there is no foreign-flag competition.
He said this deal is separate from the U.S.-flag operations in
Hawaii and elsewhere made possible by recent legislation sponsored
by Sen. Daniel Inouye (D-Hawaii).
"But that [experience] allowed us to think more broadly about
how to expand a U.S.-flag initiative," he added.
The United States, built in 1952, is the fastest liner ever
built, but "the Big U" was laid up in 1969 when the government
stopped subsidizing its operations.
It was towed to Turkey a decade ago for the beginning of an
ambitious renovation, but the project faltered; for the last
several years, the ship has been tied up near Penn's Landing in
Philadelphia.
The Independence, built in 1951, most recently sailed in Hawaii
for American Classic Voyages.
The line filed for bankruptcy in 2001, and the idled ship ended
up with the U.S. Maritime Administration (Marad).
Veitch said NCL purchased the Independence from Marad at auction
for $4.5 million. He did not reveal the price NCL paid to buy the
United States from the estate of New Jersey real estate developer
Edward Cantor. NCL has not yet drawn up renovation plans for either
ship, he said.
But there is much work to be done to make each ship a modern
cruise product.
Veitch said that although it would be "foolish" to ignore the
United States' storied history, NCL will not try to recreate the
liner's glory days.
Robert Hudson Westover, chairman of the S.S. United States
Foundation, which ran a "Save the United States" campaign, said
it's "just a matter of a good sandblasting, painting and rewiring"
to get the faded ship seaworthy.
Westover estimated a complete refurbishment would cost "hundreds
of millions of dollars."
"From a distance, she's still quite impressive," he said.
The refurbishment of the United States' hull and superstructure
must be done at U.S. shipyards in order for the vessel to retain
its status as a U.S.-built ship, but the outfitting can be done
overseas, according to NCL.