Royal Caribbean Cruises Ltd. RCL announced that it has signed a public-private partnership with Miami-Dade County to build a new state-of-the-art cruise terminal at PortMiami, which will open in late 2018.
Details of the Project
The 170,000-square-foot terminal will serve as the homeport for Royal Caribbean International ships and bring the world’s largest cruise ships to PortMiami, including a 5,400-passenger Oasis-class ship.
Notably, the deal will be subject to the final vote of the Miami-Dade Board of County Commission on Jul 6.
Meanwhile, global architecture firm, Broadway Malyan has been chosen to design the new terminal. The firm is noted for its innovation and advanced design.
Benefits
The partnership will create roughly 4,000 jobs and will have a projected economic impact of $500 million.
Notably, at present, PortMiami welcomes around 750,000 Royal Caribbean passengers every year. Upon the completion of the new terminal, Royal Caribbean will likely bring in an additional 1 million travelers, taking the tally to 1.8 million passengers. This represents over 30% of the port's projected passenger traffic, up from the present level of 15%.
Interestingly, Royal Caribbean has been a crucial aspect of the PortMiami community for nearly 50 years. The latest partnership is expected to make PortMiami the cruise operator's biggest port in the world.
The Bottom Line
Notably, the new terminal will not be Royal Caribbean’s only project at PortMiami. The company had earlier announced that it will be adding a 20,000-square-foot Innovation Lab to its corporate headquarters in the area.
We believe that the new port will be a remarkable addition for PortMiami. Backed by the upcoming Oasis-class ship and the terminal’s contemporary features, the new port is expected to rake in an increasing number customers for Royal Caribbean.
Zacks Rank & Stocks to Consider
Royal Caribbean currently has a Zacks Rank #2 (Buy). Other stocks worth considering in this sector include Diamond Resorts International, Inc. DRII, Cedar Fair, L.P. FUN and Six Flags Entertainment Corporation SIX. All three stocks carry a Zacks Rank #2 (Buy).
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