Galveston & Royal Caribbean sign MoU to develop $85 Mn cruise terminal

In a recent turn of events, the Port of Galveston and Royal Caribbean Cruises Ltd. have reportedly disclosed plans to construct a $85 million cruise ship terminal, alleged to be the third one for the city famous for cruises on the Gulf of Mexico.

If reports are to be believed, the two groups have inked a Memorandum Of Understanding earlier this week. Although, the final agreement might get approved early next year by Port of Galveston’s governing body ‘Wharves Board of Trustees’, cite trusted sources.

Reportedly, Royal Caribbean currently cruises two ships out of Galveston, Vision of the Seas and Liberty of the Seas. Apparently, the port expects that the new terminal would amplify passenger traffic by 1 Mn within ten years, cite sources close to the deal.

For the record, Galveston is the nation’s fourth most busy cruise terminal, from where almost 1.8 million passengers depart annually.

Rodger Rees, Port Director, stated the third terminal could start operating by the year 2021 with a preliminary 20-year lease agreement with the Royal Caribbean. However, later the cruise liner can extend the lease tenure for four more 10-year terms, Rees added.

According to Rees’ statement, this collaboration would bring in both bigger ships as well as ample visitors to Galveston and the region. Galveston is under development for becoming a global cruising destination and it is grateful to allies like Royal Caribbean, Rees noted.

Reportedly, Royal Caribbean would be paying for the newfangled 200,000 sq. ft. terminal, proposed to be located at Pier 10, and offer additional parking space.

According to authentic sources, Disney Cruise Line and Carnival Cruise Line ships also run across the Galveston port. Reportedly, Carnival operates three ships from Galveston year-round, transporting more than 650,000 people yearly.

On Thursday, the after hours share price of Royal Caribbean Cruises Ltd. was $109.13, which dropped 4.48% during the day.

Royal Caribbean International

Royal Caribbean International is a cruise line company that was founded in Norway and is based in Miami, Florida, United States. The cruise line is owned by Royal Caribbean Cruises Ltd. As of May 2018, the line operates 25 ships and five more ships have been ordered. RCI captured 21.9 percent of the global cruise market in the year 2012.