PortMiami Set to Continue Record-Shattering Growth Pace

Discussions are underway for another terminal for Norwegian Cruise Line.
Norwegian Getaway turning in Miami port.

“We do have space. I want that to be very clear, that we have space for growth here at PortMiami,” said Juan Kuryla, port director. “We are growing and need to continue investing.”

Miami is coming off a record year, with 5.3 million cruise passengers, and a similar, slightly better year is expected in 2017-2018. After that, Kuryla is forecasting a continued pattern of record-breaking cruise traffic.

Going from 4.9 million to 5.3 million passengers in a year, the most ever recorded anywhere; Kuryla is juggling multiple projects for a 20 percent bump up in 2019, and even more growth behind that.

“We will likely be at 6.4 million passengers,” he added.

Multiple Projects

The biggest bump up in numbers last year came from Royal Caribbean, with 350,000 more passengers. That figure will grow exponentially when the company opens Terminal A for its Oasis-class ships come 2018.

Talking to Cruise Industry News on a November Monday, there were a staggering seven cruise vessels docked and Kuryla was weeks away from the grand opening of Terminal F, a new facility developed for MSC Cruises and the MSC Seaside.

That terminal is only the beginning, as MSC has bigger plans, including the deployment of the Meraviglia in the Caribbean, sailing from Miami alongside the Seaside in summer 2019.

Discussions are ongoing with Virgin and Norwegian for new terminals.

“Both would be additional to the terminals we have,” Kuryla said. “We are taking some land on the north side from the cargo operations to create a footprint for additional terminals.”

Not to be overlooked, Carnival Cruise Line has been the port’s largest customer dating back to the 1970s and accounted for more than 2 million passenger movements last year. This year the new Carnival Horizon will homeport in Miami after a brief summer in New York.

“We are also in discussions with them on how to work together to accommodate further growth,” explained Kuryla.

‘Total Commitment’

He attributed the growth to a total commitment to the cruise industry not only by the port but by the willingness of elected officials to accept the port’s and cruise line’s recommendations on investments.

New terminal projects must consider not only the space for the terminal, but land infrastructure ranging from parking to utilities, apron needs, traffic patterns and more, Kuryla said.

“The speed at which we need to grow to accommodate new ships is unprecedented,” he continued, “and we are moving quickly.”

Various studies have been conducted on LNG, and the port is moving toward a solution regarding whether bunkering would be a land or water-side operation. Kuryla said he expects Miami to receive its first LNG-powered ship in 2022.

MSC Eyes Larger Piece of North American Market Pie

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MSC Seaside Homeport in Miami.

Gianni Onorato is helping drive MSC Cruises’ ambitious growth plan, covering just about the entire world in 2018 and beyond.

Miami will play an increasingly important role as the company pushes its way into the North American market, part of a strategic long-term plan, according to Onorato, CEO of the cruise brand.

Come winter 2019, the MSC Divina, Seaside and Meraviglia will offer Caribbean itineraries from PortMiami.

“It started with the MSC Divina, that was the biggest change,” Onorato told Cruise Industry News. “It was the first time we broke with the legacy of just having a winter ship (in North America) occasionally.”

With the company hitting its goal to become the largest single brand in Europe, it opened up more assets to be moved into the North American market, starting with the Divina on a year-round basis, which has now been joined by the Seaside.

“Even with the Divina, Seaside and Meraviglia compared to the size of the North American market, this is a little drop,” he said.

The MSC Seaside

“We will reach a 4 to 5 percent market share here. It is a start in the most mature market in the world. It has been a process that has been planned and now we’re in the implementation phase.”

With the Divina and Seaside based in Miami come 2020, MSC plans to rotate the Meraviglia north for a summer season sailing from Manhattan.

“We are looking at New York for summer 2020 with the Meraviglia,” Onorato said. “That is why we are adding a sort of presentation of the ship with a number of cruises in 2019. We are preparing to have the Meraviglia out of New York in 2020.”

It differs from previous attempts to sail out of New York by the company and its European competitors.

Onorato noted the hardware will help drive demand, calling the Meraviglia a newbuild that is very competitive.

“The North American trade and distribution also knows our brand better now. The timing is right because the market is looking for something new and different, which we offer.”

Come 2022, Onorato sees MSC as a key player in North American, although not at the level of the other main North American brands.

“We will have our piece of the cake,” he added.

What the year ahead holds for the industry

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Next Gen. Cruise ship for MSC.

Until recently, expedition cruising was a quiet corner of the ocean cruise business, with occasional new tonnage added to a small fleet of spartan ships sailing to wild and majestic places.

The ships are still small, but some are not so spartan anymore, and the expedition niche in 2018 is trending bigger.

By one estimate, at least 18 new expedition vessels are ready to debut over the next 24 months.

Setting the tone was the transfer in 2017 of the original Silversea Cruises ship, the Silver Cloud, to the line’s expedition fleet after conversion to an ice-hardened vessel capable of visiting both polar regions.

In 2018, the parade of new expedition builds begins in June with Le Laperouse, the start of a new class for the luxury expedition brand Ponant, which will add three more of the 180-passenger vessels by mid-2019.

The French brand will be joined this year by Norway’s Hurtigruten, which is expecting a new prototype, the 530-passenger Roald Amundsen, in August. Soon after, Scenic Cruises will take delivery of the 228-passenger Scenic Eclipse, another expedition-style vessel.

And by year’s end, Quark Expeditions plans to take delivery of a 176-passenger ship, currently under construction in Portugal, capable of polar sailing.

The boom is underway in part because small ships for expedition cruising are easier to finance than the $1 billion behemoths now being ordered by contemporary ocean cruise brands. And there is a greater variety of shipyards able to take on the projects.

Companies like Lindblad Expeditions have gone public and are tapping into public equity to finance expansion.
Expedition cruise lines expect that many consumers who have been introduced to cruise vacations by the larger lines in recent years are now familiar with the concept and will be receptive to trying a different kind of cruising.

New technologies

In addition to a bumper crop of expedition ships, 2018 will also see the advancement of technology on larger ships designed to save time and smooth out the points of friction to make cruising more enjoyable.

The technologies go by disparate names: Royal Caribbean International calls its package Excalibur, MSC Cruises has MSC for Me and Carnival has its Ocean platform, which includes the Ocean Medallion and Ocean Compass app. Luca Pronzati, MSC’s chief business innovation officer, said MSC’s technology will provide wayfinding onboard the ships, a reservations function and a more convenient way to access and personalize an activities agenda.

“You can schedule your day in an easy way,” Pronzati said. “It’s really changing the paradigm.”

Passengers can access the information through smartphones, on their in-cabin TVs or at screens in public areas of the ship. Pronzati said that the current functionality of MSC for Me, which is available on the MSC Meraviglia and the MSC Seaside, is a foundation and that the line is working on expanded capabilities, such as a digital concierge service.

Carnival’s Ocean platform, although it debuted for a limited number of passengers on Princess Cruises’ Regal Princess in November, will be rolled out onboard five more ships by the end of 2018.

Carnival expects its phased activation of the Ocean Medallion and Ocean Compass app onboard the Regal Princess to be finished by the first quarter of 2018, with all passengers being able to use it simultaneously thereafter. The two technologies are designed to give each cruise customer a more personalized vacation. It will, for example, provide suggestions for activities, drinks and meals based on stored preferences and proximity to venues on the ship.

Royal Caribbean’s package of onboard technologies, Excalibur, is expected to be on 15% of its fleet, starting with its most-recently delivered ships, within the first few months of 2018. It will be on a majority of Royal’s 25 ships by the end of the year.

One focus of Excalibur is expedited embarkation, which Royal calls “frictionless arrival.” It will allow passengers who input information before arrival come aboard without stopping at a check-in counter. Other applications include using it to order room service, open cabin doors and connect with friends and family onboard.

One of the ships that will benefit from Excalibur is Celebrity’s new Celebrity Edge, the first in a class of four ships ordered so far that will be a prototype for the design of Celebrity’s fleet.

The innovations already announced for the ship include “infinite verandas” in which balcony space is incorporated into a cabin and the Magic Carpet, a 90-ton platform that hangs off one side of the ship and will move between four decks, including the embarkation deck, where it will serve as a shore excursion platform.

Following a December 2018 christening in Fort Lauderdale by Nobel Peace Prize laureate Malala Yousafzai, the Edge will make its first seven-day Caribbean cruise.

Celebrity plans to spend $400 million over the next six years to make the rest of its fleet look more like the Edge class.

The Cuba connection

Some of the oldest ships in the cruise industry will also be part of its newest trend in 2018: expanded cruises to Cuba. Norwegian Cruise Line has tapped the Norwegian Sun for four-day cruises to Cuba from Port Canaveral next summer. The Sun is joining Norwegian’s oldest ship, the Norwegian Sky, which does the itinerary from Miami.

Royal Caribbean is also expanding its capacity to Cuba, putting the 28-year-old Empress of the Seas in Miami for five-, seven- and eight-day trips that for the first time include Cienfuegos and Santiago de Cuba, while its second-oldest ship, the Majesty of the Seas, will provide four- and five-night Cuba itineraries from Tampa.