Trend of bigger cruise ships visiting Singapore favours SATS: analyst
- POSTED: 14 May 2014 17:57
Cruise ships visiting Singapore are getting larger, and this development favours airport and cruise terminal services facilities operator SATS, said Phillip Capital.
SINGAPORE: Cruise ships visiting Singapore are getting larger.
This development favours airport and cruise terminal services facilities operator SATS, which manages the Marina Bay Cruise Centre, said Phillip Capital in a report on Wednesday.
This is because Singapore's other main cruise centre -- the HarbourFront Cruise and Ferry Terminal -- may not be able to accommodate larger ships due to height restrictions imposed by the cable car line, analyst Richard Leow wrote in a report.
SATS earlier this week announced that it had jettisoned plans to acquire Singapore Cruise Centre (SCC) for S$110 million from Temasek Holdings -- about seven months after the proposed deal was made public -- citing "market developments in Asia".
SCC owns HarbourFront Cruise and Ferry Terminal as well as the Tanah Merah and Pasir Panjang ferry terminals.
With the trend of larger ships, SATS would likely not be able to realise the returns that was previously envisaged through the investment in SCC, Phillip Capital said.