Circle Line Enjoying a Bounce in Tourism

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The New York Sun

Circle Line has conducted so many cruises around Manhattan, you might think the boats themselves would be dizzy. The company, which is celebrating its 60th anniversary this year, has played host to 60 million travelers (yes – 1 million a year), and is one of New York’s most enduring and popular tourist attractions.


Karl Andren, who came to the United States from Finland in 1962, is chairman of privately held New York Cruise Lines, which owns the sightseeing outfit. From his office at Pier 83 on the Hudson River, he looks out over the docks where the boats of his company are moored, as well as the lines of queuing passengers.


Mr. Andren’s firm also owns some specialty craft, such as a speedboat called The Beast that is guaranteed to loosen your molars and is clearly aimed at young people bored with the idea of a floating history tour. World Yachts, bought in 1988, is also part of the group.


World Yachts currently runs two recently remodeled ships that together serve about 200,000 passengers an upscale dining and cruising experience each year. One boat is dedicated to charter business and is kept busy with events such as wedding receptions and corporate outings. The other offers brunch or dinner sailings, with the food prepared by chefs under the guidance of Marcus Samuelsson. Mr. Samuelsson is best known for his flagship restaurant Aqavit, which is rated among the top 20 restaurants in the city.


Like other tourist businesses in the city, Circle Line was hit hard by the events of September 11, 2001. On that grim day, the company ferried nearly 30,000 stranded workers across the Hudson, and in the following weeks it continued to transport beleaguered commuters. It was a tough time; the company’s business has only recently recovered to the 2000 level.


About one-third of Circle Line’s passengers come from the tristate area, another third from the rest of America, and the balance from other countries. It was primarily the foreign travelers who disappeared from New York after 9/11. Happily, the weak dollar has helped rebuild international tourism, which is forecast by the city to be up 8% this year.


To further the recovery, Mr. Andren insists on nonstop promotion. He recognizes that Circle Line competes with myriad other entertainments for the overbooked tourist’s dollars and time. Consequently, Circle Line ads are to be found all over the city – practically anywhere a tourist might venture.


Happily, Circle Line boats are one of the best-known features of the cityscape, with a recognition factor of 95% – topped only by the Statue of Liberty and the Empire State Building. In part, it is the distinctive look of the Circle Line boats that make them stand out. The boats ride low in the water and are wide enough to accommodate several hundred people.


The profile is utilitarian, but essential. These boats have to meet certain operating requirements unique to their mission, such as the ability to pass below bridges without losing major pieces of superstructure, while also being able to charge against the ferocious currents of the East and Hudson rivers and circumnavigate the island in three hours.


The history of the current fleet would paint these challenges as small potatoes compared to those faced in the past. Most of the boats were converted from World War II landing craft or from Coast Guard cutters. One vessel, called Circle Line X, participated in five landings in the Philippines and then went on to be part of the Reform Yangtzee Patrol in the liberation of Shanghai. Overall, the ship was distinguished by winning three battle stars.


It was not until 1981 that Mr. Andren bought Circle Line. Though as a young man he had thought of following in the footsteps of his sea captain father, two years as a deck hand dampened that interest. Instead, he went to work as a junior analyst covering oil stocks at a brokerage firm called Dominick & Dominick.


He initiated his maritime career in 1974 when he bought Manhattan Oil Transportation, a tug and barge operation. During the oilfield boom, he expanded into the Gulf Coast area by buying Higman Towing in Texas. His biggest venture was the founding of United Tank Containers in 1978. He built a fleet of 500 tank containers for transporting vegetable oil and specialty chemicals worldwide. This operation was subsequently sold in 1982 to Stolt Tankers.


Another venture was his purchase of three sailing vessels in the 1980s, which were the core of Windstar Sail Cruises, an international cruise line. This business, which turned out to have quite a different and more management-intensive dynamic from Circle Line, was sold in 1988 to Holland America Line.


What’s next for Mr. Andren, and for Circle Line? The company currently has three new boats out for bid. Prices are high, due to the huge run-up in steel demand from China, but the company is optimistic. One factor that should boost tourist business is the planned expansion of the Jacob K. Javits Convention Center, and a new convention hotel set to open near Pier 83.


In the meantime, the boats go ’round and ’round.


The New York Sun

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