Royal Caribbean plans to build a $100 million terminal at the Port of Miami able to handle its biggest ships. According to an MOU between the cruise line and Miami-Dade County, the terminal has a July 31, 2018 completion target date.
Royal Caribbean will lease the land and be responsible for the financing, design, construction, parking garages for 1,000 cars, affiliated areas and the operation of the 170,000-square-foot terminal.
The present value of the agreement was estimated at $250 million for the port after taking its up-front costs and annual rent into consideration if used for cargo purposes. The estimated revenues from this acreage was estimated at $1.2 million annually from cargo activity, compared to $9.5 million annually from the cruise operation.
Royal Caribbean will lease the land for an initial period of 20 years. The base rent shall be $9.5 million per year and increase 1.5 percent compounded annually. In addition to the base rent, the county shall receive $5.50 per passenger embarking and disembarking in excess of 1.55 million passengers.