Canaveral Port Authority to Sign Contracts with Cruise Lines

Canaveral Port Authority is expected to sign contracts this month with Norwegian and Royal Caribbean cruise lines.

A multi-year deal with Norwegian Cruise Line will continue port of call visits from the Breakaway and Gem for the next three years, with options for two additional years. The agreement will also mean that Norwegian Cruise Line will homeport a ship at Port Canaveral from 2015-2016 for a partial-year deployment.

A 10-year contract with two 5-year options and financial guarantees is outlined in a letter of intent with Royal Caribbean Cruise Line. The current agreement, valued at $7 million, expires on December 31. Under the new agreement, the minimum passenger fees will increase to $9.7 million this year and grow to $16.7 million by 2024. Royal Caribbean will also pay an additional $48 million during the next decade in an added terminal fee, which will allow them to become the priority berth user of the new Cruise Terminal 1, which is currently under construction and scheduled to open in November.

“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,” says Tom Weinberg, chairman of the Canaveral Port Authority Commission.

The combined value of these partnerships is almost $20 million per year in minimum passenger fees, during the next 10 years.

Enchantment of the Seas and Freedom of the Seas currently sail year-round from Port Canaveral. Explorer of the Seas and Grandeur of the Seas are scheduled for port stops this winter. Also in November, the new Quantum of the Seas will begin transit calls and Explorer of the Seas will homeport at Port Canaveral, offering 26 5- and 9-day sailings.