Royal Caribbean Terminal 10 in Galveston delayed a year?

[Biker19]

Looks like Seattle is being affected by this as well:

 

The new cruise facility at Pier 46 is among 2020 budget cuts at the Port of Seattle.

$70m in cutbacks

 

The Port of Seattle Commission announced nearly $70m in cutbacks amid the coronavirus pandemic, according to the Seattle Times, which said it's not clear when the port will restart the Terminal 46 development, or the dozens of other delayed aviation and maritime development projects.

Commissioners reportedly will reevaluate the cruise terminal decision as conditions change.

 

The Port of Seattle did not respond to emailed questions on Wednesday.

 

Cruise revenues at risk

The Times said 'a significant portion' of projected $26m in cruise revenues are at risk. Cruise lines are currently under a US 'no sail' order and Canada has closed ports to certain cruise operations through June. Recently cruise operators announced dramatic changes to their Alaska cruise plans this summer, including some outright cancellations.

So far, though, operators like Princess Cruises and Holland America Line are keeping their Seattle-based programs, though those will be delayed.

In February the Port of Seattle issued a revised request for proposals for the new cruise facility at Terminal 46 with additional environmental elements.

 

Estimated $200m facility, half port-funded

The updated RFP went to shortlisted proposers being evaluated as potential investment and operating partners. The estimated $200m facility would entail a $100m investment from the port and the balance from a partner.

On the shortlist are Cruise Industry Leaders Group (Royal Caribbean Cruises Ltd., MSC Cruises, Carnival Corp. and SSA Marine, a subsidiary of Carrix), Global Ports Holding and Civil & Building North America, and Ports America with Jacobs Engineering Group.

[trey420]

You would think building it would make more sense as more people are likely to cruise close to home than ever before.  Living in Houston I would love it if it was there.  My only issue with cruising out of G town is you only get 3 stops and a rare 4 sometimes on a 7 day cruise. 

[John&LaLa]

2 hours ago, trey420 said:

You would think building it would make more sense as more people are likely to cruise close to home than ever before.  Living in Houston I would love it if it was there.  My only issue with cruising out of G town is you only get 3 stops and a rare 4 sometimes on a 7 day cruise. 

 

Cash flow issue

[Biker19]

Royal Caribbean Group plans to go ahead with building a $100m cruise terminal at the Port of Galveston, port director and CEO Rodger Rees said.

 

He added that engineering and architectural work have been completed, and construction is slated to start in April. $15m will be going into upgrading the berth.

Allure of the Seas in November 2022

Rees noted sales are open for Allure of the Seas cruises starting in November next year from the port.

 

Last April Galveston Wharves gave the cruise giant another year to commit to the project after Royal Caribbean requested an extension.

 

A Royal Caribbean Group spokesman told Seatrade Cruise News the company continues to work closely with Galveston on the new terminal and is on track to offer the first Oasis-class cruises from Galveston in winter 2022.

 

Speaking during a Galveston industry outlook webinar, Rees said he'd been told by Royal Caribbean that of 20-some projects, the company had whittled those down to two — Galveston and a new facility at Freeport, Bahamas.

Source market potential

According to Rees, 'Even though cruising may not start in April or May or June, this construction project is part of Royal's future because of the huge market that we represent to them — 50 million people within a 12-hour drive of this port.'

 

He said cruise lines are currently honing their COVID-19 mitigation protocols and setting up agreements with the port, hotels and medical facilities.

Mitigation and pragmatic view

'We understand COVID's here. Vaccines are not going to eradicate it 100%. So every now and then you probably get one, two, three cases on these cruise ships,' Rees continued. 'The important thing is not to get 50 to 500 cases on them, and I think they're mitigating that.'

The port, meanwhile, has already put $75,000 into preparing its two existing cruise terminals including adding Plexiglass dividers, touchless plumbing in restrooms and UV-C light to sanitize air conditioning systems.

2020 ends with positive cash flow

Despite the pandemic, Galveston Wharves closed 2020 with a positive cash flow. Income from operations, grants and investments totaled $29m, while expenses were just over $27m, leaving a positive $2m balance. 

 

$2.7m of operating income came from the cruise business, including parking, before cruising was suspended in March. $11.4m came from cargo operations, and a record $6.1m from lay revenues.

 

For 2021, Galveston Wharves is forecasting operating revenues of $37.5m compared to $27.4 m last year. This projection is based on a phased resumption of cruising.

 

Royal Caribbean's new Galveston cruise terminal is going ahead (seatrade-cruise.com)

[coaster]

Surprised by this update. Last I saw was the the new HQ building in Miami had $15.8 million worth of mechanics liens filed against it.

[Teeara]

On 2/9/2021 at 2:16 AM, Biker19 said:

Royal Caribbean Group plans to go ahead with building a $100m cruise terminal at the Port of Galveston, port director and CEO Rodger Rees said.

 

He added that engineering and architectural work have been completed, and construction is slated to start in April. $15m will be going into upgrading the berth.

Allure of the Seas in November 2022

Rees noted sales are open for Allure of the Seas cruises starting in November next year from the port.

 

Last April Galveston Wharves gave the cruise giant another year to commit to the project after Royal Caribbean requested an extension.

 

A Royal Caribbean Group spokesman told Seatrade Cruise News the company continues to work closely with Galveston on the new terminal and is on track to offer the first Oasis-class cruises from Galveston in winter 2022.

 

Speaking during a Galveston industry outlook webinar, Rees said he'd been told by Royal Caribbean that of 20-some projects, the company had whittled those down to two — Galveston and a new facility at Freeport, Bahamas.

Source market potential

According to Rees, 'Even though cruising may not start in April or May or June, this construction project is part of Royal's future because of the huge market that we represent to them — 50 million people within a 12-hour drive of this port.'

 

He said cruise lines are currently honing their COVID-19 mitigation protocols and setting up agreements with the port, hotels and medical facilities.

Mitigation and pragmatic view

'We understand COVID's here. Vaccines are not going to eradicate it 100%. So every now and then you probably get one, two, three cases on these cruise ships,' Rees continued. 'The important thing is not to get 50 to 500 cases on them, and I think they're mitigating that.'

The port, meanwhile, has already put $75,000 into preparing its two existing cruise terminals including adding Plexiglass dividers, touchless plumbing in restrooms and UV-C light to sanitize air conditioning systems.

2020 ends with positive cash flow

Despite the pandemic, Galveston Wharves closed 2020 with a positive cash flow. Income from operations, grants and investments totaled $29m, while expenses were just over $27m, leaving a positive $2m balance. 

 

$2.7m of operating income came from the cruise business, including parking, before cruising was suspended in March. $11.4m came from cargo operations, and a record $6.1m from lay revenues.

 

For 2021, Galveston Wharves is forecasting operating revenues of $37.5m compared to $27.4 m last year. This projection is based on a phased resumption of cruising.

 

Royal Caribbean's new Galveston cruise terminal is going ahead (seatrade-cruise.com)

 

I love this comment: 

 

"Rees noted sales are open for Allure of the Seas cruises starting in November next year from the port." 

 

Umm...not yet.  BUT, that makes me hope that the Allure 2022 Fall TA will go from Barcelona to Galveston.  Sign me up!

[smokeybandit]

I'm glad to see them putting money into Galveston.  It's the easiest port to get to for those of us in the western half of the country.

[RGEDad]

On 2/10/2021 at 6:58 AM, Teeara said:

hope that the Allure 2022 Fall TA will go from Barcelona to Galveston.  Sign me up!

We really love the cruises with long periods of sea time.

Love to get on a long cruise without the Fort Lauderdale / Miami flights.

We have not been on one of the really big Mega-Ships yet - but who knows - we might love it. 

Checked the RCCL site - but alas - the allure OTS repositioning is not yet open for booking. Not sure how to set up a ping of some sort to alert me when it opens up. 

Probably maybe drive to Houston, leave the car and fly to Barcelona for the cruise(s), take some sort of bus/shuttle from Galveston to Houston airport and then drive home - or something like that.

Some years ago we had a transatlantic cruise from Fort Lauderdale to Rome. In looking around at stuff I found a ship doing a reverse repositioning from Barcelona to the US (New Orleans I think). And there was an overnight ferry Rome to Barcelona. Alas - I was still a working stiff then, not sure if I would have still a job if I disappeared for 6 weeks - really a missed opportunity I still think about.

[firefly333]

37 minutes ago, RGEDad said:

We really love the cruises with long periods of sea time.

Love to get on a long cruise without the Fort Lauderdale / Miami flights.

We have not been on one of the really big Mega-Ships yet - but who knows - we might love it. 

Checked the RCCL site - but alas - the allure OTS repositioning is not yet open for booking. Not sure how to set up a ping of some sort to alert me when it opens up. 

Probably maybe drive to Houston, leave the car and fly to Barcelona for the cruise(s), take some sort of bus/shuttle from Galveston to Houston airport and then drive home - or something like that.

Some years ago we had a transatlantic cruise from Fort Lauderdale to Rome. In looking around at stuff I found a ship doing a reverse repositioning from Barcelona to the US (New Orleans I think). And there was an overnight ferry Rome to Barcelona. Alas - I was still a working stiff then, not sure if I would have still a job if I disappeared for 6 weeks - really a missed opportunity I still think about.

Theres a thread about when rcl will release itineraries. I might have read april 1st. @ourusualbeach would know for sure. I sure hope allure comes nov 2022. If so I might trade with my liberty, depends how pricey it is.

[Biker19]

The Galveston Wharves Board will consider whether to give Royal Caribbean another extension to build its planned $100m cruise terminal and to let the company off the hook for paying rent there until, latest, fall 2023.

 

Under the current terms, completion is required by the end of July 2023, however the goal was to substantially finish the terminal by fall 2022.

Allure cruises scheduled from November 2022

Bookings opened last month for Allure of the Seas' seven-night Western Caribbean cruises beginning in November 2022.

 

Just days ago, Royal Caribbean told Seatrade Cruise News it had completed its due diligence on time, initiated the first stages of construction and was 'on schedule for our opening in November 2022.'

Now it's clear that getting financing during the pandemic is proving more challenging than expected.

Ceres holds 50% stake

Earlier this year, Royal Caribbean disclosed an agreement to transfer 50% of its Galveston cruise terminal interests to Macquarie's Ceres Terminals, which is to manage the new facility and provide stevedoring services.

 

Due to the COVID-19 pandemic 'and the resulting difficulties in obtaining project financing,' the amended ground lease would extend the terminal's completion deadline to Dec. 31, 2023, according to the agreement up for the Galveston Wharves Board's consideration.

However, Royal Caribbean would 'continue to use commercially reasonable efforts to substantially complete the project by the target completion date' of Sept. 1, 2022, subject to its 'ability to obtain satisfactory project financing.'

Rent due not later than Sept. 20, 2023

Rent payment would commence when the first ship berths at the pier, but not later than Sept. 30, 2023, according to the amended agreement.

And Royal Caribbean will no longer have the right to terminate the ground lease.

 

If approved during Tuesday's board meeting, this would be the second extension for Royal Caribbean, which inked its deal with Galveston in December 2019 to build a 170,000-square-foot terminal to handle the port's first Oasis-class ship starting in fall 2021. Last April, the Galveston Wharves Board gave the company an extra year due to the pandemic.

No income from 10-acre site for at least two years

The new terminal would sit on a 10-acre site, a chunk of real estate that will have been tied up for at least two years without income for the port.

 

CEO/Port Director Rodger Rees last week said Galveston was preparing for a phased resumption of cruises 'as early as July, just to be ready,' adding: 'Current indications are that cruises could resume by late this summer or early fall.' 

 

Royal Caribbean asks more time for Galveston cruise terminal financing (seatrade-cruise.com)

[bstel]

6 hours ago, Biker19 said:

 

 

If approved during Tuesday's board meeting, this would be the second extension for Royal Caribbean, which inked its deal with Galveston in December 2019 to build a 170,000-square-foot terminal to handle the port's first Oasis-class ship starting in fall 2021. 

 

Can only imagine all these execs high fiving and popping the champagne cork in December 2019, blissfully ignorant of January 2020.  talk about bad timing.

[John&LaLa]

@ssb any local news?

[firefly333]

15 minutes ago, John&LaLa said:

@ssb any local news?

I already knew about them asking for more help and not starting the terminal 3 yet. I'm on multiple Galveston sites.

 

What he quoted I think was down in the meeting Thursday by the port authority. I'd seen it already and forwarded it, didnt occur to me to post here.

 

It's on the agenda for this Thursday's meeting. Rcl still hopes to substantially finish terminal 3 in time for allure. End date is like fall of 2023. Almost a year later. 

 

I'm booked allure dec 2022 and feb 2023 so wasnt happy. I will be really upset if they want to transfer me again to liberty at the same price with no obc. Got 2 of them already. Enough liberty. I booked at a good price for allure, not good for liberty. 

[BSocial]

3 hours ago, John&LaLa said:

@ssb any local news?

the “blog” site has a front page story with interview with Port Director.  The Galveston thread in the Royal discussion message board there has an update from Galveston Steve.  
 

Good news for Galveston , 2 Galveston-based Carnival ships are returning home on May 2.  Yes, May 2 this year, LOL.  Read from Steve on the boards, who said 350 crew will be vaccinated there on the ships. 

 

 

 

Edited April 27, 2021 by BSocial
I cannot type

[firefly333]

26 minutes ago, BSocial said:

the “blog” site has a front page story with interview with Port Director.  The Galveston thread in the Royal discussion message board there has an update from Galveston Steve.  
 

Good news for Galveston , 2 Galveston-based Carnival ships are returning home on May 2.  Yes, May 2 this year, LOL.  Read from Steve on the boards, who said 350 crew will be vaccinated there on the ships. 

 

 

 

Yes I saw this posted yesterday on the carnival thread. However, I very much doubt it means anything other than a brief visit by the carnival ship. I'm up near dallas, too far to see the ship come in briefly. Got a hotel for sept, maybe a miracle will happen and we can cruise. I'll just use the hotel with or without a cruise. Maybe another ship will dock then. 

 

Im mostly concerned with rcl getting terminal 3 started, so I get my allure cruises this time.

[BSocial]

24 minutes ago, firefly333 said:

Yes I saw this posted yesterday on the carnival thread. However, I very much doubt it means anything other than a brief visit by the carnival ship. I'm up near dallas, too far to see the ship come in briefly. 

 

It’s not planned to be just a brief stay:

 

https://abc13.com/galveston-cruise-ships-port-ship-guidelines-traveling-on-a-during-pandemic/10550786/

  

“"Their intentions are to stay here, crew up, and do some work on the ships. So they'll be here when it's time to start cruising, and we're hoping that it's quick," said Port of Galveston CEO, Rodger Rees.”

 

 

 

Edited April 27, 2021 by BSocial
Added

[firefly333]

12 minutes ago, BSocial said:

It’s not planned to be just a brief stay:

 

https://abc13.com/galveston-cruise-ships-port-ship-guidelines-traveling-on-a-during-pandemic/10550786/

  

“"Their intentions are to stay here, crew up, and do some work on the ships. So they'll be here when it's time to start cruising, and we're hoping that it's quick," said Port of Galveston CEO, Rodger Rees.”

 

 

 

The president of seaborn was interviewed and said it takes about 3 months to gear up. They would have to know NOW to be able to cruise by July. Soon it will be may, and would be august to resume. Summer is sliding away.

 

Seaborn is one of the ccl lines. If the ships are still there waiting when I'm down in sept great!! Lol like I said maybe a miracle will happen and cruises can resume. I'm not cancelling, but the cruiselines keep cancelling me. Bring on the cruises I'm ready, just losing the faith.

[firefly333]

Today rcl asked for up to a year to start paying rent on the terminal to start when first ship docks at terminal 3. Galveston gave them 3 months.

 

Sounds to me like allure is iffy for my nov 2022 cruise.  News out today. Another delay in terminal 3. 

[c-leg5]

9 minutes ago, firefly333 said:

Today rcl asked for up to a year to start paying rent on the terminal to start when first ship docks at terminal 3. Galveston gave them 3 months.

 

Sounds to me like allure is iffy for my nov 2022 cruise.  News out today. Another delay in terminal 3. 

Source? Did the board meet today?

Edited April 27, 2021 by c-leg5

[firefly333]

12 minutes ago, c-leg5 said:

Source? Did the board meet today?

I'm not sure the source can be posted here, maybe someone else knows cc rules on this source. I'm reading Galveston groups.

______

 

"

The longer the delay in cruise ships resuming sailing from the United States could impact the new terminal. Royal Caribbean was set to open it by fall 2022, but now, it could be off by a year.

The Port of Galveston Board of Trustees has agreed to the contract amendment by approving a second amendment to the contract on Tuesday for the new Royal Caribbean cruise terminal.  "

[c-leg5]

7 minutes ago, firefly333 said:

I'm not sure the source can be posted here, maybe someone else knows cc rules on this source. I'm reading Galveston groups.

______

 

"

The longer the delay in cruise ships resuming sailing from the United States could impact the new terminal. Royal Caribbean was set to open it by fall 2022, but now, it could be off by a year.

The Port of Galveston Board of Trustees has agreed to the contract amendment by approving a second amendment to the contract on Tuesday for the new Royal Caribbean cruise terminal.  "

That appears to be the blog which you certainly can’t link and probably shouldn’t quote. It is merely a rehash of news posted else where. I thought perhaps you had access to the board minutes.

[John&LaLa]

14 hours ago, BSocial said:

It’s not planned to be just a brief stay:

 

https://abc13.com/galveston-cruise-ships-port-ship-guidelines-traveling-on-a-during-pandemic/10550786/

  

“"Their intentions are to stay here, crew up, and do some work on the ships. So they'll be here when it's time to start cruising, and we're hoping that it's quick," said Port of Galveston CEO, Rodger Rees.”

 

Work on the ship, that's interesting. 

 

I seem to recall that Royal staff told Enchantment passengers they couldn't do maintenance on the ship in port because Galveston wouldn't allow it.

[BecciBoo]

Wonder why they couldn't refit the old Houston cruise terminal, it essentially has hardly been ported by cruise ships at all and what a waste.  If they can port out of NOLA, why not Houston.  That is a commercial port, it should be big enough for Oasis class.

[BecciBoo]

https://www.cruisemapper.com/ports/houston-port-85  Great article on it

[JupiterTwo]

Deleted.

Edited April 28, 2021 by JupiterTwo