Sun Sentinel Palm Beach Edition
Disney, Port Canaveral reach new agreement
Disney Cruise Line has a new 20-year agreement at Port Canaveral that will increase the number of sailings and bring two of Disney’s three new ships to the port when they debut.
The Port Canaveral Board of Commissioners on Wednesday unanimously approved the termination of the existing agreement with Disney that had been in place since 1995, and approved the new agreement that starts June 1 and runs through 2039 with an option for two five-year extensions.
“By resetting the clock, we get a longer term on great partners like Disney, and coupled with our Carnival agreement, we’ve got two of our largest cruise partners on long-term agreements now which really is a tremendous benefit to this port,” said Port CEO Captain John Murray.
The old agreement had the cruise line guaranteeing 150 calls on the port annually, and that continues for now, but will increase to 180 in 2023 and at least 216 calls in 2024. The new agreement also gives Disney Cruise Line continued exclusive use of Terminal 8, the current terminal DCL uses, and also preferential use of Terminal 10 when the cruise line begins home porting three ships from Canaveral.
The agreement also increases the per-passenger wharfage rate cost to Disney Cruise Line by $0.09 from the old agreement with potential annual increases of 2.5 percent if the Consumer Price Index increases by more than 4 percent any year.
Both cruise terminals are in the midst of a nearly $46.5 million of budgeted improvements to be completed before Disney’s first new ship of its new class debuts in 2021. The new agreement also states Disney will begin paying to Port Canaveral upon completion of the two terminal improvements a $3.15 per passenger cost that will over the 20 years allow Port Canaveral to recoup the cost of the improvements.
The proposed work, which has been conceptually approved by Disney Cruise Line according to port officials, will be for both land and marine work on the two terminals.
Earlier this year, the commission approved negotiating a contract for a proposed $39.6 million for Terminal 8 work that includes renovating both floors of the Disney terminal, which has not had any major changes since 1998.
Another $6.8 million was earmarked for Terminal 10 work, the terminal currently mostly used by Norwegian Cruise Line, but would be shared by Disney and Norwegian. Those improvements include a new seating and concierge area.