Commissioners voted 5-0 on Thursday to approve the homeporting of the second ship starting as early as April next year. The neoClassica would join BPCL's Grand Celebration in operating sailings every other day to Freeport, Grand Bahama Island.
The agreement has a 10-year term with two five-year renewal options.
Costa Cruises reported the sale of neoClassica earlier this month.
Grand Celebration currently carries 480,000 passengers annually, and the two ships, at 60% capacity utilization, could carry 765,000 passengers a year. Over 10 years, net income to the port could rise from $39.2m with just Grand Celebration to $54.3m with both Grand Celebration and neoClassica, at 60% occupancy, or to $62.9m with the two ships at 70% occupancy.
BPCL's net income guarantee to the port is $40.2m over 10 years, up from $19.5m with the one ship.
According to the presentation reviewed by port commissioners, direct annual spending related to BPCL totals $37.8m a year, including the purchase of food, supplies and fuel, hotel rooms, Bahamian spending, local spending, valet parking, pier employment and pilot fees. Spending related to a second ship is estimated at $35.8m. So the two-ship operation is estimated to entail spending of $73.6m, and 70 new jobs would be added to the 115 already generated by the port's cruise terminal.
The Port of Palm Beach projects $18.3m in direct expenditures over 10 years to serve the ships, including $5.7m by Riviera Beach for water and police services, with the balance for security and janitorial services.
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