Canaveral Reaches Terms with Norwegian and Royal Caribbean
Cruise Line Contracts Set for Board Consideration in March
Canaveral Port Authority next month expects to sign contracts with Norwegian and Royal Caribbean cruise lines after recently reaching terms that expand commitments from both companies.
The agreement with Norwegian Cruise Line (NCL) is a multi-year deal that would continue port of call visits from the Breakaway and Gem for the next three years, with options for two additional years. In addition, NCL also will homeport a ship at Port Canaveral in 2015-2016 for a partial-year deployment.
A new letter of intent with Royal Caribbean Cruise Line (RCCL) outlines a 10-year contract with two five-year options and financial guarantees. The current agreement expires on the last day of this year and is valued at $7 million. Under the new terms, minimum passenger fees increase to $9.7 this year and grow to $16.7 million by 2024. The cruise line also will provide an additional $48 million during the next decade in an added terminal facility fee to become the priority berth user of the new Cruise Terminal 1 currently under construction in the Cove area of Port Canaveral. Royal Caribbean will continue some use of the cruise terminal, which is scheduled to open in November. Royal Caribbean also will continue some use of Cruise Terminal 10.
Total combined value is an average of almost $20 million per year in minimum passenger fees during the next 10 years. Ship deployments are flexible and RCCL will decide and announce new deployments when appropriate.
Currently, Enchantment of the Seas and Freedom of the Seas sail year round from Port Canaveral. This winter, Explorer of the Seas and Grandeur of the Seas are scheduled for port of call stops at Port Canaveral and the new Quantum of the Seas will start making transit calls starting this November. Also in November, Explorer of the Seas will homeport at Canaveral, offering 26 sailings of nine- and 5-day cruises.
“These agreements are the results of hard work and pencil sharpening to finalize 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.”
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