PortMiami looks to build $100m terminal for NCLH

The terminal improvements would allow Norwegian to simultaneously berth two 5,000-passenger ships at PortMiami The terminal improvements would allow Norwegian to simultaneously berth two 5,000-passenger ships at PortMiami

Norwegian Cruise Line Holdings may be getting a new cruise terminal at PortMiami by 2020 in a new 20-year agreement.

Miami-Dade County commissioners approved a resolution that would build a new Cruise Terminal B and combine existing terminals B and C into a single Cruise Terminal C. This would allow the simultaneous berthing of two 5,000-passenger ships.

An agreement for the terminal improvements is planned to be presented to the county board of commissioners this summer, including a financial analysis estimated at $100m.

The new facility would go up east of terminals B and C and is estimated by be completed by January 2020.

Miami-Dade County will design, finance and build Terminal B. NCLH may supplement the design of the new terminal beyond the county's budget on a per-person capital fee charged to NCLH passengers.

The company will have preferential berthing rights at the new terminal.

The county will retain preferential berthing rights to the renovated Terminal C on Saturdays from the time Terminal B becomes usable through 2023. After that, NCLH will have the opportunity to regain preferential rights to Terminal C on Saturdays via an increased minimum annual passenger guarantee.

The formula for regaining preferential berthing at Terminal C will be based on 80% of the company's planned year-round additional ship calls, with a minimum of 52 calls per fiscal year. The minimum annual passenger guarantee will be for a ship of at least 3,000 passengers and 136,000gt.

Also, the county will retain preferential berthing rights at Terminal C on Sundays from the time Terminal B enters service through 2030. Subsequently NCLH will have the opportunity to regain preferential berthing on Sundays at Terminal C by increasing its annual passenger guarantee.

In other action, commissioners approved giving NCLH preferential berthing rights at Terminal J for the company's Oceania Cruises and Regent Seven Seas Cruises brands. A minimum of 45 annual calls is guaranteed by NCLH under the newagreement, up from 30 previously.

The company will continue to pay dockage and wharfage according to the port's small passenger vessel tariff rates at Terminal J for the rest of fiscal 2016/17. Starting in October, NCLH will pay full tariff rates. This agreement is expected to general $1.6m in gross revenues during fiscal 2018, an amount that will increase 3% annually.

The Oceania and Regent ships will be included in the calculation of PortMiami's current incentives—for things like marketing, parking revenue sharing and discounts—for Norwegian Cruise Line ships once the two smaller brands begin paying the full tariff rates.

Preferential berthing rights on Sundays at Terminal J will be relinquished beginning this summer, apart from requests already submitted through February 2019, to allow the port to accept ships from other lines there on Sundays.

In further changes, NCLH is to submit berthing requests at least 15 months in advance, up from 12 months currently.

Also, the company will agree PortMiami continues to be the exclusive South Florida homeport for its three brands.

Posted 04 May 2017

© Copyright 2018 Seatrade UBM (UK) Ltd. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade UBM (UK) Ltd.

Anne Kalosh

US editor of Seatrade Cruise Review and Seatrade Cruise News


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