Royal Caribbean Terminal 10 in Galveston delayed a year?

[John&LaLa]

Found this on FB

https://www.galvnews.com/news/free/article_3110ec89-1a5f-5cc1-a4f6-2d81dad146af.html

 

 

[GetToLivin]

Yeah I read the same thing this morning, bummed! I'm in the DFW area and Galveston is a nice place to drive to and cruise from. Understandable though, they're doing what they can given the circumstances. I'm just grateful we're getting Oasis class ships at all 😊

[Ourusualbeach]

4 minutes ago, John&LaLa said:

Found this on FB

https://www.galvnews.com/news/free/article_3110ec89-1a5f-5cc1-a4f6-2d81dad146af.html

 

 

There goes my Christmas cruise 2021

[molly361]

I guess the Allure can't fit into the present spot there??  

[stevendom57]

If is 700 days from my cruise on Allure OTS. Looks like it will be canceled now. That's cruise #2 canceled by the CV. Darn.

[Cel_cruise]

This makes me sad but it’s probably a smart thing to do...

[c-leg5]

Already reported on this thread

 

[cruiselvr04]

We’re booked on a B2B on Allures first trips out of Galveston.  Looks like it won’t happen.  This is very disappointing.  

 

I’m hoping Royal lets our deposit return for these 2 cruises sooner then later so I can move it to something else before prices sky rocket.  I’m not about to do Liberty again. ( Great ship but been there, done that so many times.  I can sing along with Saturday night fever and can’t figure out anything new to do in those same ole, same ole ports of call. I was really ready for a big ship. )

[molly361]

Where will the Allure end up,?

[John&LaLa]

2 hours ago, c-leg5 said:

Already reported on this thread

 

 

Well hidden, though. Apologies 

[Ourusualbeach]

1 hour ago, molly361 said:

Where will the Allure end up,?

My guess is FLL.  

[BSocial]

6 hours ago, John&LaLa said:

 

Well hidden, though. Apologies 

no worries.   I wasn’t sure whether to create a new post with it, or add to previous Galveston one.  Bob used to merge topics when he was host, so I thought maybe I should add on.   I think you were right to create a new post.
 

so, question now is whether Liberty and Allure will be redeployed back to Galveston and Miami for fall 2021.   

[John&LaLa]

37 minutes ago, BSocial said:

no worries.   I wasn’t sure whether to create a new post with it, or add to previous Galveston one.  Bob used to merge topics when he was host, so I thought maybe I should add on.   I think you were right to create a new post.
 

so, question now is whether Liberty and Allure will be redeployed back to Galveston and Miami for fall 2021.   

 

And that's the $64,000 question

[NavyCruiser]

I hope they won't delay this project.

First, it's almost 2 yrs away, & hopefully, cruising will be back to normal by then.  There'll be pent-up demand for a third terminal in Galveston by then.

The local economy & construction crews are ready to get back to work now, not months or a yr from now.

 

[Inconspicuous]

8 hours ago, NavyCruiser said:

I hope they won't delay this project.

First, it's almost 2 yrs away, & hopefully, cruising will be back to normal by then.  There'll be pent-up demand for a third terminal in Galveston by then.

The local economy & construction crews are ready to get back to work now, not months or a yr from now.

 

 

I agree.  I think it's pretty short-sighted to delay this project due to the current situation.  This will not last for the long term, definitely not through the projected end of construction.

[Biker19]

15 minutes ago, Inconspicuous said:

I think it's pretty short-sighted to delay this project due to the current situation. 

If you had X cash on hand, would you pay the crew or build a terminal with it?

[ssb]

The delay isn’t official yet, Rees said Saturday. The port and the company must renegotiate terms of their agreement, he said.

“We don’t know yet,” Rees said. “The thing we’re waiting on is the actual contract language. That’s where we are.”

Royal Caribbean has put a hold on all capital projects because of the cruise stoppages caused by the COVID-19 pandemic. The company still intends to build the new terminal, just not this year, Rees said.

[ssb]

The central fly way of the US Is a huge untapped 

marketplace . It will always be there . Obviously  Royal is scrambling to restructure anything because they are in survival mode . Time is on their side . Recovery will take time . If Royal should pass on Galveston , there have been others always  waiting in the wings to take Royals position . They either protect their holdings or allow Additional others in . In 2020 2021 they already had Liberty Enchantment Jewel Adventure Explorer and Allure in at some point in time . They have identified the market , can they financially regroup , survive and go forward in Galveston . 

Edited March 30, 2020 by ssb

[John&LaLa]

1 hour ago, ssb said:

The delay isn’t official yet, Rees said Saturday. The port and the company must renegotiate

 

That's why I added the question mark.😉

 

Honestly,  I wouldn't count on another cruise line stepping in anytime soon. They are all in a world of hurt.

[ssb]

19 minutes ago, John&LaLa said:

 

That's why I added the question mark.😉

 

Honestly,  I wouldn't count on another cruise line stepping in anytime soon. They are all in a world of hurt.

Absolutely ! I did not say when. Everything is relative to, too many factors now .

But it is certain Royal is asking for extension to protect they're vested interests, 

to buy time financially ! They want to stay in Galveston and have terminal built in future. .  

   

Edited March 30, 2020 by ssb

[NavyCruiser]

It depends on how/which % of the total $100 Mil project cost is split between RCL & Port of Galveston, city of Galveston, county of Galveston, or any other Gov't agency.  It's not like RCL is incurring 100% of the build cost.

No other cruise lines are responsible for the empty/idle $100 Mil Port of Houston terminal right now...

[ssb]

1 hour ago, NavyCruiser said:

It depends on how/which % of the total $100 Mil project cost is split between RCL & Port of Galveston, city of Galveston, county of Galveston, or any other Gov't agency.  It's not like RCL is incurring 100% of the build cost.

No other cruise lines are responsible for the empty/idle $100 Mil Port of Houston terminal right now...

 

Obviously the contract dictates consequences .

 

But current  contract has RCL building and paying all for Terminal and leasing the land and docks from Port of Galveston.  The City of Galveston receives in turn funds from Port of Galveston equal to what property advalorem taxes would have been . .     

Galveston County receives  nothing . Houston situation has nothing to do with Galveston ! ZERO !! Houston is now cargo operation . And Houston a big loss blunder to greedy Houston politics .

 

With the extension request, it will most likely be delay in leasing payments and relief from any non timely terminal completion provisions and new ones there on these areas .

. .

 

   

Edited March 30, 2020 by ssb

[ssb]

Clarification of Request by Royal 

As of March 26 –Royal Caribbean requested

One year extension on due diligence period (April 9, 2021)

Port and Royal will be working on contract terms March 31

With cruise lines shut down – There will be no revenues

Capital project will be on hold

[NavyCruiser]

Then they should switch Capital Projects' funding source from RCL to Port of Galveston.

 

I don't know of any Airlines building their own terminals at the airports...

[BSocial]

29 minutes ago, NavyCruiser said:

Then they should switch Capital Projects' funding source from RCL to Port of Galveston.

 

I don't know of any Airlines building their own terminals at the airports...

whoa, what makes you think the Port has the funds for this huge project?  
 

This is a partnership with Royal.  Port Contributes infrastructure work around pier 10.  RCI builds the new terminal #3.  RCI pays a lease.  It’s a win-win for both, even with a year’s delay. 
 

Remember, the Port is also losing money currently from lack of ship calls (passenger taxes) and parking fees.   
 

@ssb may have posted the original contract details when it was originally signed last December.     Perhaps he can find and post the revised contract details after the Wharves meeting tomorrow, 

Edited March 30, 2020 by BSocial