Port of Miami to Have New Royal Caribbean Terminal

Miami-Dade Commissioners have authorized the construction of the new Cruise Terminal G at the Port of Miami, with County funds, which will be leased for 36 years with three seven-year extensions to Royal Caribbean Group.

This contract will include ships from Royal Caribbean International and Celebrity Cruises. The county will invest up to $325 million in capital improvements for both Terminal G and portions of Pier 10, the terminal shared with MSC Cruises due for completion in October 2028. The deal calls for Royal Caribbean Group to repay the county 47% of project costs with interest and issuance costs.

Miami-Dade County expects the new terminal to generate $2.8 billion in economic development for the county over the next 50 years and create 12,000 cruise-related jobs.

Likewise, Royal Caribbean agreed that it will more than double its annual passenger movements, that is, a minimum of 600,000 annual passenger movements during the construction of Terminal G and provide 1.5 million annual passenger movements once it is completed in 2027. 

Royal Caribbean made a profit in the third quarter since the pandemic began, with revenues of US$33 million and occupancy at 96% and 105% on trips to the Caribbean. However, the forecast for the fall is not so favorable due to the rise in the dollar and fuel.

For the fourth quarter they will have the impact of high costs for the dollar and fuel, so Royal Caribbean expects losses for this period. By 2023 they foresee a record in reserves like those at the beginning of this summer.