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$2.8b Royal Caribbean PortMiami deal gets the green light

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Miami-Dade commissioners on Tuesday approved a new development and lease agreement with Royal Caribbean Group worth $2.8b to the county over 50 years.

The deal includes $2.5b from a PortMiami cruise terminal usage agreement and $260m from an amended lease for the Royal Caribbean headquarters campus at the port.

New Terminal G and Berth 10

As earlier detailed, PortMiami will build a new Terminal G for Royal Caribbean Group's exclusive use and Berth 10, where the company will share the new terminal under construction by MSC Cruises.

Terminal G will be able to house Icon-class cruise ships, the world's largest

Higher minimum annual guarantees

In exchange, Royal Caribbean will guarantee progressively higher minimum annual passenger movements. 

These will go from the current 600,000 annual passenger movements during a development period increasing to 1.5m annual passenger movements upon substantial completion of CTG, estimated in early fiscal 2027, and further increasing to 2.1m annual passenger movements from years 11 through the conclusion of the 36-year term.

Once Royal Caribbean reaches 2.1m annual passenger movements plus the company's approximately 1.55m annual passenger movements at its Terminal A, Miami's guaranteed passenger movements will exceed the port's record fiscal year 2019 volumes by 22%.

Completion of expanded campus

In addition, PortMiami will take on the completion of Royal Caribbean's campus expansion. The company will pay the port increased fees in a lease extension there through at least 2072.

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