Royal Caribbean signed a new deal with PortMiami to expand its operations there, which include more passengers and a new terminal.
The 50-year deal was signed on Tuesday for a cost of $2.8 billion that encompasses a development and lease agreement.
There's plenty in this deal, but cruisers will find it most interesting that construction of a new Terminal G is included, which will be for exclusive use by Royal Caribbean and its subsidiary companies, including Celebrity Cruises, and its lease there for 36 years.
Terminal G is one of the older cruise terminals in Miami, and usually used by Royal Caribbean on days when Terminal A is occupied.
Terminal A is the brand new cruise terminal Royal Caribbean opened in 2018 that serves as its primary cruise terminal. When there is more than one Royal Caribbean ship in port, they will use other terminals, such as Terminal G.
In addition to Terminal G, Royal Caribbean will be able to share another terminal with MSC Cruises. That terminal will be complete in October 2028.
Credit to Florida Politics for reporting on this deal first.
Re-starting new headquarters construction
Also part of the deal is for construction to resume on Royal Caribbean's new global headquarters.
In May 2019, Royal Caribbean announced plans to expand and renovate its corporate campus on the southwest corner of Dodge Island.
Unfortunately work halted due to the global health crisis, but the new arrangement with Miami-Dade has provisions for the continued redevelopment of Royal Caribbean’s global headquarters.
There's also an extension to its lease there through at least 2072.
New agreement benefits both parties
Prior to today's announcement, Royal Caribbean Group's deal was set to expire in 2033. Under the new deal, Miami-Dade county will see an additional $2.5 billion from Terminal G usage and $260 million from the headquarters lease.
Under the new arrangement, Miami-Dade will finance completion of Royal Caribbean’s headquarters and Terminal G’s construction. In return, Royal Caribbean will guarantee passengers totals ranging from 600,000 annual passenger movements during the reconstruction of Terminal G to 1.5 million yearly passenger movements once it reaches “substantial completion,” estimated to be in 2027.
It will also create 12,000 permanent, cruise-related jobs, including roughly 1,000 additional positions with Royal Caribbean.
Royal Caribbean said the jobs will pay average salaries of more than $100,000. The company also anticipates needing 9,634 construction jobs for the project.
Royal Caribbean will utilize shore power as part of its deal in the new terminal.
All the major cruise lines, including Royal Caribbean, agreed in 2021 to bring shore power to cruise ships in PortMiami.
Shore power allows cruise ships to "hook up" to electricity at the port, so that the engines do not need to operate while the ship is letting passengers off the ship and bringing new ones onboard.
This means ships using shore power save on fuel use while on port that they would otherwise need to keep the ship going. It also reduces air pollution emissions associated with consumption of that fuel.