By
Rebecca Gibson |
Canaveral Port Authority is set to sign contracts with Norwegian Cruise Line and Royal Caribbean Cruise Ltd after recently reaching terms that expand service commitments from both companies.
Norwegian is expected to sign a multi-year deal that would include port of call visits from Norwegian Breakaway and Norwegian Gem for the next three years, with the option to extend for two more years. In addition, the line will homeport a ship at Port Canaveral in 2015-2016 for a partial-year deployment.
While Port Canaveral’s current US$7 billion agreement with Royal Caribbean expires on 31 December 2014, a new letter of intent outlines a ten-year contract with two five-year options and financial guarantees. Under the new terms, minimum passenger fees will increase to US$9.7 million this year and grow to US$16.7 million by 2024. In total, the combined value of minimum passenger fees over the next ten years will be an average of almost US$20 million per year.
Royal Caribbean will also provide an additional US$48 million during the next decade in an added terminal facility fee to become the priority berth user of the new Cruise Terminal 1. The terminal is currently under construction in the port’s Cove area and is scheduled to open in November. The line will also continue to use Cruise Terminal 10.
Currently, Royal Caribbean’s Enchantment of the Seas and Freedom of the Seas sail year round from Port Canaveral, while Grandeur of the Seas is scheduled for port of call stops this winter. The line’s newbuild Quantum of the Seas will also begin offering transit calls from the port this November, while Explorer of the Seas will homeport at Canaveral, offering 26 sailings of nine- and five-day cruises. The line will confirm any intended new deployments when appropriate.
“These agreements are the results of hard work and pencil sharpening to finalise the costs and terms and our board looks forward to considering these contracts during our meeting next month,” said Tom Weinberg, chairman of the Canaveral Port Authority Commission. “We applaud the efforts of our staff and are delighted that our cruise line partners see the value of expansion and long-term commitments to Port Canaveral from which our community will continue to experience the economic benefits.”