Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) signed one of its largest passenger terminal use agreements today with the Broward County Board of County Commissioners, committing that 25.5 million cruise guests will sail to and from Broward County's Port Everglades over the next 15 years.
The agreement between Carnival, the world's largest cruise company, and Broward County will potentially produce half-a-billion dollars in Port revenue. Further, it is expected to have an average annual economic impact on more than 6,000 local jobs with related personal income of $293.6 million over the 15-year period. According to an economic impact study by nationally recognized maritime research company Martin Associates, the agreement to homeport Carnival's ships at Port Everglades is also expected to generate $21.7 million in state and local taxes annually.
"This is a landmark agreement that will give back to the people of South Florida repeatedly over the next 15 years," said Broward County Mayor Ken Keechl. "This agreement with Carnival is a positive sign for the cruise industry and for our local economic recovery."
The agreement calls for an average of 1.7 million passengers embarking and debarking annually from a combination of most Carnival-brand cruise ships, including Princess Cruises, Holland America Line, Carnival Cruise Lines, P&O Cruises, Cunard Line, and the Yachts of Seabourn, which already sail to and from Port Everglades. This new agreement is effective October 1, 2010, and replaces the company's previous 10-year agreement with the Port.
In return for this new long-term agreement, the Port is committed to making significant improvements to four existing cruise terminals at Port Everglades to accommodate Carnival's fleet of world-leading cruise ships. To expedite the terminal improvements, the Broward County Commission also approved amending the Port's current agreement with architectural firm Bermello Ajamil & Partners for design services, and began the process to select a construction manager to complete the improvements.
"We are delighted to continue our long-standing partnership with Port Everglades and Broward County," said Howard Frank, vice chairman and chief operating officer of Carnival Corporation & plc. "Our multiple cruise brands that utilize Port Everglades greatly value the convenience and consumer appeal of basing ships there. We also look forward to the planned renovations to the terminal facilities."
Added Port Everglades Director Phil Allen, "We estimate that another 621 new construction jobs will be created in the next three years for the cruise terminal improvements that we have discussed with Carnival. We strive to be the best cruise port in the world, not just the largest."
Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, The Yachts of Seabourn, AIDA Cruises, Costa Cruises, Cunard Line, Ibero Cruises, Ocean Village, P&O Cruises and P&O Cruises Australia.
Together, these brands operate 95 ships totaling more than 185,000 lower berths with 11 new ships scheduled to be delivered between March 2010 and May 2012. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.