Royal Caribbean seeks new terminal in Miami

Royal Caribbean Cruises Ltd. has started negotiations aimed at building a new $100 million terminal at Port Miami that would accommodate Oasis-class ships.

Specifications call for a 170,000-square-foot terminal with a berth of 400 meters, or about 1,312 feet. Oasis of the Seas is 1,186 feet long.

The specifications are in a memorandum of understanding to be considered by the Miami-Dade Board of County Commissioners on Sept. 16. If approved, the memorandum would become a roadmap for a final negotiation. The memorandum said the terminal is “assumed to become operational” by the end of 2018.

“By the nature of a memorandum of understanding, there is still a long road to go,” said Rob Zeiger, Royal Caribbean’s vice president of communications.

Royal Caribbean currently docks at Terminal G at the port, the closest one to downtown Miami. The new terminal would be built partly on a cargo area in the easternmost part of the port furthest from downtown. Designated Terminal A, it would be developed and owned by Royal Caribbean except for a small contribution from the county.

The agreement, which would last for a minimum of 20 years, calls for Royal Caribbean to pay an initial rent on leasing the land beneath the terminal for $9.5 million a year, or about $250 million over the life of the agreement, after annual escalators. The lease would have four 10-year optional extensions. A summary of the memorandum calls it a new model for financing terminals at the port.

“This deal structure is extremely attractive to the port because it transfers risk from the county to a private company,” said the summary, signed by Jack Osterholt, deputy county mayor.

The memorandum said that ever since Miami lost the deployment of Oasis and Allure of the Seas to Fort Lauderdale’s Port Everglades in 2009, the port has been talking with Royal Caribbean about ways to boost the number of passengers. Currently, that number is about 730,000 a year.

The Future of U.S. Cruises to Cuba

Havana Cuba.
Havana will soon be bustling with U.S. cruise passengers

Although U.S. laws still prohibit leisure travel to Cuba, cruise lines are waiting with plans in hand for the green light. Since last month’s announcement that Fathom, Carnival Corporation’s new social impact brand, was granted a license to sail from the Port of Miami starting next May, the floodgates seem ready to open.

Although Fathom is accepting bookings, negotiations with Cuba are not yet complete, and settling on ports of call remains up in the air. Rates for Cuba cruises, which start at $2,990 per person, are double those for Fathom’s originally announced Dominican Republic sailings, and Cuban fees will be tacked on to the cruise fare.

Meanwhile, Tom Baker, co-owner of Houston-based Cruise Center, has found land tours extremely high-priced in comparison to cruises.

“We’re looking at around $1,000 per day for a destination that is not a luxury experience,” he said. “I’m sure the tour operators are doing wonderful things, but they are still left with mediocre hotels, terrible roads and buses that may or may not maintain air conditioning. So I went to Cuba Cruise, where the highest-priced staterooms run around $3,000 for two people on a weeklong cruise, including shore excursions and an all-inclusive beverage package. You don’t have to take long bus rides, and both food and accommodations are going to be comfortable, at the very least.”

Baker originally booked a people-to-people cruise for himself, then decided to see if a LGBT group he was working with wanted to go as well. Now, he has more than 200 clients sailing on a Jan. 1 cruise, and the number of passengers continues to grow, all with little marketing.

Bonnie Habel, president of Fuller Travel in San Antonio, sees the current requirement for cruise passengers to interact with locals on the ground as another positive selling point.

“A lot of work and thought goes into those excursions, and it’s not just shopping and seeing a historic site,” she pointed out. “And with the cruise, people get a predictable level of food and lodging.”

One of the most intriguing aspects of the Fathom announcement is that president Tara Russell is also tasked with finding social impact cruise opportunities for other brands in Carnival Corporation’s huge fleet.

Habel and others believe they could sell the highest-level accommodations on a luxury ship in Cuba.

“If Carnival is smart, they will put Seabourn Cruise Line in there,” Habel said. “The highest-priced accommodations would fly out the door.”

Cuban-born Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings Ltd., called the Carnival move a “critical first step.”

“Cuba will shine new light on the Caribbean, still the biggest cruise destination in the world,” he said.

According to Del Rio, Cuba has five or six ports with qualities “as different as New York and Texas,” and he believes all three of his brands — Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises — could differentiate themselves enough to more than satisfy the desires of various clienteles.

In addition to Fathom, a group of Florida ferry companies has been approved by the U.S. government to operate service to Cuba, including United Caribbean Lines, run by veteran cruise executive Bruce Nierenberg. His company is working with Haimark Ltd. to put the 210-passenger Saint Laurent into operation as the first small ship operated by a U.S. cruise line to circumnavigate Cuba in more than four decades. The line will offer nine-night roundtrip departures from Miami to Cuba beginning Feb. 20, pending final government approval.

 

MSC unveils details of Miami-based ship


A rendering of the MSC Seaside.

A bowling alley and nine restaurants will be among the amenities aboard the MSC Seaside, the first vessel that MSC Cruises will move directly from the shipyard to the U.S.

MSC CEO Gianni Onorato revealed new details about the 154,000-gross-ton, 4,140-passenger ship during the steel-cutting ceremony on Monday at the Monfalcone, Italy-headquarters of shipbuilder Fincantieri. The Seaside is scheduled to arrive at PortMiami in December 2017.

Among the ship’s nine restaurants will be a pizzeria, a seafood house, a steakhouse and a Japanese teppanyaki eatery. The restaurants will be accompanied by 20 bars. The bowling alley will join numerous other entertainment options on the Seaside, including a previously announced elaborate water park with five distinct slides and water features.

The vessel will also be equipped with a variety of eco-friendly features, including an advanced wastewater treatment system and a heat recovery plant that will warm onboard swimming pools, laundry machines and faucets. Passengers, meanwhile, will be able to use cruise cards, RFID bracelets or smartphones to access staterooms, book excursions and shows, geolocate their children and make onboard payments.

The Seaside is one of seven vessels that MSC Cruises either has in production or in the planning stages. The cruise line currently sails 12 ships. One of the vessels under construction is the MSC Meraviglia, for which sales opened on June 22. Holding up to 4,500 passengers, it will sail the Mediterranean beginning in the summer of 2017, embarking from Genoa, Marseille and Barcelona.

Bookings on the Meraviglia are open only to MSC Club members until July 5, when they will open to the general public.