Royal Caribbean to build Miami Terminal

By ,   September 11, 2015 ,   Cruise Industry

Royal Caribbean International (RCI) plans to build a USD 100 million terminal at Port of Miami able to handle the largest ships of the line. According to a Memorandum of understanding (MOU) between RCI and Miami-Dade County, July 31, 2018 is the completion target date.

The land will be leased by Royal Caribbean. The company will also be responsible for the financing, construction, design, affiliated areas, parking garage for 1,000 cars, and the operation of the 170,000-sq.ft  terminal.

The value of the agreement is estimated at USD 250 million for Port Miami, after taking into consideration port's up-front costs and annual rent (in case it's used for cargo purposes). Revenues from the acreage is estimated at USD 1.2 million from cargo activity, compared to USD 9.5 million from cruise operation (on an annual basis).

The cruise line will lease the land initially for 20 years. The base rent is USD 9.5 million per year with an increase of 1.5% compounded annually. In addition, the county will receive USD 5.50 per passenger embarking/disembarking in excess of 1.55 mill passengers.