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Port of Seattle inks 'historic' 15-year lease with Norwegian Cruise Line Holdings

Port of Seattle inks 'historic' 15-year lease with Norwegian Cruise Line Holdings

The Port of Seattle signed what it termed a 'historic' 15-year lease with Norwegian Cruise Line Holdings. The deal secures the company's ships in Seattle for the full term of the lease and provides passenger volume guarantees estimated to bring $73m of revenue to the port.

'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,' NCLH ceo Frank Del Rio said. He added that with primary use of the Pier 66 facilities, the company can further customize pre- and post-cruise experiences for Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.

'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.'

In addition NCLH will make tenant improvements to the Bell Street Cruise Terminal estimated at $30m which will significantly expand the portion of the Pier 66 facilities used for processing cruise passengers. Under the new lease NCLH will manage the cruise operations at Pier 66 and will have priority rights to the cruise 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 NCLH. The 15-year business commitment is estimated to generate more than $2bn in total business revenue for the region, nearly 900 jobs and over $65m in state and local taxes.

The agreement also includes language that will establish a Project Labor Agreement between the tenant’s general contractor and the building trades.

Seattle’s cruise business—currently leading all cruise homeports on the US West Coast in passenger volume—is responsible for more than 3,600 jobs, $441m in annual business revenue, and $17.2m annually in state and local tax revenues.

According to the port, each homeport vessel call generates $2.5m for the local economy.

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