The Canaveral Port Authority (CPA) Board of Commissioners have approved the terms of a long-term agreement with Carnival Cruise Line, paving the way for Carnival to homeport its newest and largest ship at the port.
The new operating agreement, which begins September 1, 2018, and replaces an existing six-year agreement set to expire next year, provides a 25-year primary term with four additional five-year renewal options.
Under the terms of the agreement, Carnival’s minimum annual guarantee increases from the current fixed USD 7 million passenger fee to USD 14.5 million with annual escalators.
“This agreement is a valuable milestone for the port’s cruise business and a foremost achievement for the entire region’s economy,” Tom Weinberg, Secretary/Treasurer, Canaveral Port Authority Board of Commissioners, commented.
Canaveral Port Authority and Carnival Cruise Line will invest in building and equipping a new two-story 185,000-sq. ft. terminal to accommodate the as-yet-unnamed 180,000-ton Carnival Cruise Line ship, engineered with LNG “green cruising” design platform.
To be built at Meyer Werft in Finland, the new cruise vessel will have a 5,286 lower berth capacity with a maximum capacity of approximately 6,500 passengers.
“The most exciting aspect, and the reason a new terminal is necessary, is that this groundbreaking new class of ship – the largest ever constructed for Carnival Cruise Line – will be home ported at Port Canaveral when it’s delivered in 2020. This ship, which can carry up to 6,500 passengers will be the first LNG-powered cruise ship based in North America,” Capt. John Murray, Port CEO, commented.
Constructing the new CT-3 terminal, plus an adjacent elevated parking facility to accommodate nearly 1,800 vehicles, and related wharf, road and access improvements will total USD 150 million – estimated to be the largest single project in the history of the port. The new terminal is planned for completion by June 2020.
The arrival of the new Carnival ship in 2020 will mark 30 years that Carnival Cruise Line has been sailing from Port Canaveral, the longest of any of the port’s cruise partners.