April 22, 2004 -- Once upon a time, New York was the undisputed capital of passenger shipping on the U.S. east coast, with so many grand liners berthing weekly at its west side docks that the stretch came to be known as Luxury Liner Row. A deal signed this week between the city and Carnival and Norwegian Cruise Lines aims to bring that era back to life.
Under terms of the April 19 letter of intent, Carnival and NCL agreed to bring at least 13 million passengers to New York by the year 2017, providing the city with $200 million in port fees. In return, New York pledged $150 million on top of a previous $50 million commitment to modernize the existing Passenger Ship Terminal, which will be renamed the New York Cruise Terminal. Additionally, a new berth will be created at an as yet undetermined location on the Brooklyn waterfront.
"Carnival and Norwegian are great corporate citizens," said New York mayor Michael R. Bloomberg in announcing the agreement, "and have worked with us every step of the way to create a Master Plan for the industry. These unique agreements represent the cruise industry's confidence in the growth of this market, which accounted for more than 3,300 jobs and almost $600 million in economic activity this year alone."
As part of the agreements, New York has committed to an ambitious redevelopment plan and given Carnival and NCL preferential berths on specific piers, one of which will be extra-long to accommodate Cunard's Queen Mary 2, the largest passenger ship in the world. Cunard is a subsidiary of Carnival Corporation. In addition, the city is offering the cruise lines incentives to promote growth beyond current projections.
The upgrades to the historic Passenger Ship Terminal are long overdue. Built between 1932 and 1935 and last renovated in the 1970s -- and with a design to prove it -- the terminal is fantastically overburdened on turnaround days, as facilities designed to accommodate 1,000-passenger ships struggle with the vehicle and foot traffic created by 3,000-passenger vessels. More than 887,000 passengers passed through the terminal in 2003, up from 425,000 ten years ago. Improvements called for in the new plan include separate embarkation and debarkation facilities on different levels, new passenger drop-off and pickup areas, expanded parking, and a foot bridge over the adjacent West Side Highway, as well as redesigned interior spaces and life/safety enhancements.
Cruise executives on hand for the announcement were quick to put a shine on the Apple. "New York City will be Norwegian's number-one homeport in the mainland United States," said NCL president and CEO Veitch, while Carnival vice-chairman and COO Howard Frank noted, "New York City will be the hub of Carnival Corporation's northeast operations now and for the future. This is always where we wanted to be."
In related news, May will see the inauguration of Royal Caribbean's own answer to New York's pier congestion problems: the new Cape Liberty Cruise Port, located just across the Hudson in Bayonne, New Jersey. A 430-acre manmade peninsula extending into New York Harbor and with a view of the Statue of Liberty, the facility was originally constructed in the late 1930s as a port for international shipping, and was taken over by the U.S. Navy in 1942. It was deeded to the Bayonne Local Redevelopment Authority in December 2002, after the Navy base closed. RCI's newly renovated Empress of the Seas (formerly Nordic Empress) arrives May 8 for a season of 6- and 8-night Bermuda sailings, while the huge, 3,114-passenger Voyager of the Seas arrives May 14 to sail alternating 5-night Canada and 8-night Caribbean cruises.
- Carnival: tel. 888/CARNIVAL, www.carnival.com
Norwegian Cruise Line: tel. 800/327-7030, www.ncl.com - Royal Caribbean: tel. 800/398-9819, www.royalcaribbean.com
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