Harri Kulovaara bolsters his RCL powerhouse team

Hefty orderbook and ship modernization portfolio

With a $14bn orderbook of 10 ships—16, counting six for TUI Cruises and Silversea—plus $500m in ship modernizations for the 'Celebrity Revolution' program and $900m for 'Royal Amplified,' RCL has an increasingly large and complex project portfolio.

Newbuilds involving the RCL team range from Celebrity Cruises' Edge class at Chantiers de l'Atlantique and Celebrity Flora at De Hoop, to the Quantum Ultra series at Meyer Werft and Icon class at Meyer Turku, to Mein Schiffs at Meyer Turku and Fincantieri, to Silver Muse sisters at Fincantieri. Ship modernizations are carried out at four additional yards, in Grand Bahama, Cadiz, Singapore and Vancouver.

'The scale is different. We want to be more forward-looking, and when the shipyards are so booked, we need to be thinking much longer term,' Kulovaara told Seatrade Cruise News. 'We had strong competence before.' The new team members hold 'highly strategic positions that help me and us to look forward.

'I'm exceptionally proud of being surrounded by this kind of competence and leadership, and sharing the responsibility,' he added. 'We can continue learning and improving and building on what we've done in the past.'

Bo Cerup-Simonsen

As VP newbuild strategy and portfolio, Cerup-Simonsen will support the development and strategic view as to the kinds of ships the company will build, who will build them and where, and the whole supply chain. He'll make sure RCL has the process, people and organization to support the newbuilding program and is prepared to meet any challenges.

'Royal Caribbean has designed a unique way of collaborating with shipyards and suppliers. I will leverage that expertise and, given the growth of the company, it's a question of developing the capabilities to manage this portfolio,' Cerup-Simonsen said. 'This means, from an early stage, creating the vision, and all the way to delivery—on time and on budget.'

'The way we work with shipyards is the key,' Kulovaara elaborated. 'Being able to produce ships that are out of the standard mold requires a strong vision, a strong will and a very seamless way of working, to get one plus one equals three.'

Having built cutting-edge ships like Harmony of the Seas, Celebrity Edge and the new Mein Schiffs, 'We've learned a lot and we believe in long-term relationships,' Kulovaara added. 'We're not looking for one-ship series but a portfolio.'

Cerup-Simonsen most recently directed the Danish Hydrocarbon Research and Technology Centre at the Technical University of Denmark. Earlier roles included head of Maersk Maritime Technology and head of maritime technical consultancy for DNV GL.

Kulovaara and Cerup-Simonsen first met at an International Maritime Organization conference on SOLAS awhile back. 'I was impressed with his vision and the way Bo worked in Maersk. It was very close to [how we work],' Kulovaara said. 'Since then, we've been talking and working together. Bo has been on our maritime advisory board for quite a few years, keeping us focused.'

Tor Svensen

Svensen has been consulting on newbuild projects for RCL following a long career with classification society Det Norske Veritas and, subsequently, DNV GL where he held many key roles, ultimately, group EVP. He is known as a leader in facilitating the development of environmental and safety solutions.

Now in-house as VP maritime technology, Svensen is focused on technical development, 'how we look, scout, innovate, move forward,' as Kulovaara put it. Future technologies, quality assurance and risk management are all part of the job. Energy efficiency and reduced emissions are critical areas, and LNG-powered ships that also use fuel cells are in the company's future.

Svensen will work closely with the project directors, technical managers and shipyards.

'This reflects that we are setting a strong focus on the future and how we're evolving with technology,' Kulovaara said. Technology partners are 'going through a transformation. We have very strong processes but the scaling is very different now. Our portfolio is so large, we need leadership caliber on this level, helping us moving foward.'

When it comes to technological development, 'We can't do this ourselves,' Svensen stressed. 'We will have ideas and special requests. But to realize those, we need partners.'

'Our job is to be the catalyst, the facilitator in this process,' Kulovaara added. 'Today it's all about collaboration.' One key move was building the Innovation Lab at Royal Caribbean headquarters, a hub that brings people together in a focused, high-energy environment to collaborate on myriad projects.

Constantin Ionesco

Fleet modernization is a separate but equally important area. It encompasses modifications, remodels, technical upgrades for better emissions control and energy efficiency, and major revitalizations like this year's Mariner of the Seas, Independence of the Seas and Azamara Pursuit.

As Kulovaara noted, 'This is so large, so complex, we need a person with a long-term, strategic view,' who can ensure the right structure, tools and partnerships for a smooth process.

Before, Royal Caribbean revitalized a couple ships a year. 'Now we're doing three or four ships a year, but it may be double that in the future,' Kulovaara said. 'With the number of ships we have in the fleet today, tomorrow we will have to be way more agile, more disciplined.'

Since RCL acts as the general contractor for these projects, it's directly responsible for 80% of the work, including all interiors, design, preparation and liaising with 15 to 20 subcontractors.

The flow of materials is complex, up to 1,400 containers per ship, with 30 to 40 lifts in a day that have to be in the right order, with the right materials, going to the specific area at the right minute. At the same time, trash needs to go out.

Many efficiency strides have been made. When it comes to staterooms, a sort of assembly-line 'train' process enables the completion of 17 to 18 units a day. 'This is a good example of a tremendously good industrial process,' Kulovaara said. 'We value the team and the process, but the portfolio is growing. We need to think much more forward.'

The ship modernization group has been staffed up to 80 or 90 people, and Ionesco adds greater depth in major project management. He comes from the oil and gas industry, most recently serving as executive director, SNC-Lavalin, a prominent engineering and construction group. Earlier roles were with Veolia Water Solutions & Technologies.

Inoesco said he was drawn to RCL by the opportunity to work in a booming business, for 'icons of the industry, rock stars,' like Kulovaara and RCL chairman and CEO Richard Fain, who are 'revolutionizing' cruising with ships like Celebrity Edge. He looks foward to tackling challenges with solutions that keep every part of the process moving forward.

Expertise and passion

For Kulovaara's part, he's thrilled to have assembled this powerhouse team, with expertise in diverse areas that complements the current leadership.

'How passionate we are about what we are doing! How fortunate we are to have long-term relationships with our partners!' he said, adding, 'We enjoy our work so much. It's fun.'

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