Royal Caribbean mega-ship could be headed for Port Canaveral

The pieces are falling in place for a very big Royal Caribbean International ship to sail from Port Canaveral, Fla.

Last year, the port announced it would add a 185,000-square-foot terminal able to handle the biggest cruise ships now being built.

Two weeks ago, port CEO John Walsh disclosed that Royal Caribbean has renewed its contract at the port for another 10 years and will get berthing preference at the new terminal as part of the deal.

The Royal Caribbean contract would result in at least $205 million in revenue over the next 10 years, including a commitment to finance half the cost of the new $65 million Terminal 1.

“They have really pulled through for us in making things happen,” Walsh told a meeting of the Port Canaveral Authority on Feb. 15.

Terms call for Royal Caribbean to retain all rights to announce deployment decisions. Currently, the Freedom of the Seas and Enchantment of the Seas sail from the central Florida port. They will be joined in the fall by Explorer of the Seas, which is scheduled for 26 weekly sailings, Walsh said.

Royal Caribbean now operates from Cruise Terminal 10 at Port Canaveral.

The two biggest Royal Caribbean ships, Oasis and Allure of the Seas, sail from Port Everglades in Fort Lauderdale. A third, bigger Oasis ship is now under construction for delivery in 2016.

Royal Caribbean has not said where it will put that ship or how it might affect deployment of the other two Oasis vessels.

Walsh said Royal Caribbean and the port are finalizing a letter of intent that would raise Royal Caribbean’s minimum annual payment. It guarantees the port $7 million a year in the current agreement that expires in December. That would increase to $10.7 million next year and ultimately $18.4 million by the last year, Walsh said.

In addition, Royal Caribbean will collect a per-passenger fee dedicated to financing the terminal complex, which includes a 1,000-car garage. It is the first cruise terminal on south side of the port channel.

Separately, Walsh said that for the first time Norwegian Cruise Line will homeport a ship at Port Canaveral. Currently, the Norwegian Breakaway and Norwegian Gem call at the port on itineraries that start elsewhere.

Walsh said talks with Norwegian started with the possibility that the Breakaway would leave the port because of some low customer-satisfaction scores and high fueling costs.

“They have not had a contract here at the port,” Walsh said. “It was no commitment, sort of like speed dating. If they wanted to bring it in they could, but they didn’t want to give us the ring whatsoever.”

The port agreed to some improvements and Norwegian renewed the Breakaway and Gem for three years and also pledged a homeport ship starting in the winter of 2015. He said Norwegian would announce which ship this month, likely at the Cruise Shipping Miami conference.

Carnival Cruises Lines and Disney Cruise Lines each homeport three ships at Canaveral, and Walsh said talks are ongoing with three more lines to visit the port, which handled 3.7 million passengers in 2012.