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Seattle Signs 15-Year Cruise Deal

Seattle

By MarEx 2015-08-13 20:27:47

The Port of Seattle has signed a 15-year lease with Norwegian Cruise Line Holdings parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The deal secures the group’s ships in Seattle for the full term of the lease and provides passenger volume guarantees estimated to bring $73 million dollars of revenue to the port.

“This is a historic deal for the Port of Seattle,” said Port of Seattle CEO Ted Fick.  “A 15-year lease for a cruise terminal is unprecedented on the West Coast.  Norwegian Cruise Line is showing real vision by investing in the economic growth of this region.”

Alaska is a favorite cruise destination for guests on all three of our brands and Seattle, with its incredible culinary offerings, luxurious accommodations and outstanding attractions, makes for an ideal homeport, said Frank Del Rio, chief executive officer for Norwegian Cruise Line Holdings. “With primary use of the world-class facilities at Pier 66, we can further customize our guests’ pre- and post-cruise experience and better align it with the superior service levels offered by our three award-winning brands.”

In addition Norwegian Cruise Line Holdings will make tenant improvements to the Bell Street Cruise Terminal estimated at $30 million which will significantly expand the portion of the P66 facilities used for processing cruise passengers. 

Under the new lease the group will manage the cruise operations at P66 and will have priority rights to the cruise vessel berth during the cruise season. The port will operate the facilities outside the cruise season. 

The capital investment to complete the terminal improvements will be shared between the port and Norwegian Cruise Line Holdings. The 15-year business commitment is estimated to generate over $2 billion in total business revenue for the region, nearly 900 jobs, and over $65 million in state and local taxes.

Seattle’s cruise business, currently leading all cruise homeports on the U.S. west coast in passenger volume, is responsible for over 3,600 jobs, $441 million in annual business revenue, and $17.2 million annually in state and local tax revenues.  Each homeport vessel call generates $2.5 million for the local economy.

Earlier this month, the ports of Tacoma and Seattle formally launched the Northwest Seaport Alliance, the first of its kind in North America. While the ports remain separate organizations that retain ownership of their respective assets, they formed a port development authority to manage the container, breakbulk, auto and some bulk terminals in Seattle and Tacoma. The airport, cruise business and some other facilities will remain outside the alliance.