The world’s busiest passenger cruise port is about to get busier. Late last week, Miami-Dade commissioners finalized five agreements for PortMiami terminals expected to generate $5 billion in revenues in the coming decades. According to The Miami Herald,
“The new terminals, funded with a mix of cruise ship revenue and port dollars, are part of a remaking of the world’s busiest cruise port under Gimenez, with industrial-era buildings being replaced by iconic, glass-walled complexes.”
Highlights of PortMiami Plans
Virgin Voyages
Tom McAlpin (photo credit: Virgin Group)
One of the development deals approved is for Virgin Voyages Terminal V.
“There is no Terminal S,T, or U at PortMiami, but there will be a Terminal V to accommodate the cruising hub for Richard Branson’s Virgin Voyages.
The alphabetical reshuffling — renaming Terminal H as Terminal V — is part of a previously announced agreement for a $150 million Virgin terminal at the county-owned port…”
- The new 100,000-square-foot “Terminal V” will be built on 5.1 acres and serve two of Virgin Voyages new ships.
- PortMiami will be Virgin Voyages’s exclusive Florida homeport for the next 10 years, and it’s only state east coast homeport through 2051.
- The 30-year agreement begins upon completion of Terminal V or by Nov. 1, 2021, whichever is earlier. It includes two five-year renewal options.
- The first of Virgin Voyage’s ships, the Scarlet Lady, will port at Terminal F until Terminal V is completed, and will begin sailing to the Caribbean in April 2020.
- Miami-Dade County will cover the $179 million cost of building Terminal V, and Virgin will partially reimburse the county over time with interest.
- The county expects to receive $697 million in cruise-related revenue and capital recovery surcharges through the initial 30-year term. If Virgin exercises both renewal options, the county anticipates it will receive $1.012 billion total.
Carnival Corporation
Carnival Corporation CEO Arnold Donald (photo courtesy: Carnival Corporation)
- Renovation and expansion of Terminal F. Miami-Dade County will pay up to $175 million to upgrade the terminal; Carnival will reimburse $65 million. Construction to be completed October 2022.
- Extended leases for Terminals D, E and F for 20 years from October 2022, plus two seven-year renewal options. If both renewal options are exercised, the county should receive about $921.4 million in gross revenues.
- Miami-Dade County gets “berthing rights” on Mondays and Fridays, from Oct. 1, 2023, to Sept. 30, 2025, for one Disney Cruise Line vessel.
- The county and Carnival will design and build a 5,000-space parking garage and related amenities in an area adjacent to Terminals D, E and F.
Norwegian Cruise Line
- A new 30-year agreement to begin when construction of a new Terminal B is substantially complete or on May 29, 2020, whichever comes first.
- Total project budget for the new terminal and all project-related architecture, engineering and design costs is $239 million. Miami-Dade County will front construction costs and cover $100 million of the project. Norwegian will reimburse the county for the balance, as well as advance any costs over $239 million.
- The terminal agreement was extended for an additional 5 years over the agreement signed last year, and will generate $326 million additional revenue.
MSC Cruises
- MSC will build two new “mega cruise terminals, a parking garage, offices, four gangways and other supportive infrastructure on 20 PortMiami acres. The company agreed to pick up all costs of construction, more than $300 million.”
- When completed in 2022, Terminals AA and AAA will be able to berth two 7,000-passenger ships simultaneously.
- The 62-year agreement is expected to generate $2.03 billion in rent and parking revenue, a 25% share of non-vessel terminal fees and $5.50 per passenger movement fees, and is subject to a compounded 3% increase yearly for the county.
- According to PortMiami Director Juan Kuryla, the deal represents “probably the longest-term deal that we’re aware of in the history of a port and a cruise line.”
- MSC will also relocate its stateside corporate offices from Broward County to PortMiami.
Terminal Link cargo shipper
- Miami-Dade County will spend $100 million to “densify the cargo yard”
- Improvements include electric rubber-tire gantries that provide up to 40% more container throughput on a smaller footprint.
Mayor Carlos Giménez told reporters “the deals with Carnival Corporation, MSC Cruises, Norwegian Cruise Line Holdings and Virgin Voyages, whose terms range from 20 to 62 years, as well another deal in the works with cargo company Terminal Link, will make a $7.8 billion impact here yearly and create 27,500 direct and indirect jobs.”
Updated: October 25, 2019
Sources:
The Miami Herald, “PortMiami creating ‘Terminal V’ for Virgin Voyages cruise ships”, October 19, 2019 –
Miami Today, “PortMiami deals to create 27,500 jobs, mayor says”, October 24, 2019
Miami Today, “Biggest cruise terminals deal ever a public-private win-win”, March 12, 2019
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