Miami

The Port of Miami is working on a plan that would allow it to handle Oasis of the Seas sized ships and compete better with other ports, such as its neighbor to the north, Port Everglades.

A $250 million plan is still being kept under wraps but would center around upgrading the cruise facility to handle larger ships.  In addition it would include the construction of a "multi-terminal — a single terminal that can accommodate more than one cruise vessel," according to Kevin Lynskey, port director of business initiatives.

Work on any new terminal wouldn't start for at least four of five years according to Lynskey.  He also believes the Caribbean cruise market will continue to grow yearly over the next 10 years.

A greater issue would be how the new project would be financed.  Currently the port owes a little more than $490 million in debt with revenues at around $110-115 million.

Port Everglades, in Fort Lauderdale, Florida, is gaining ground quickly on Miami, Florida for most cruise passengers in the world.  Miami has been the traditional "cruise capital of the world" for many years but recent changes have made Port Everglades, located just 28 miles to the north, a close competitor.  If current trends continue, Port Everglades will overtake Miami by 2012, thanks to in part, Royal Caribbean.

Liberty of the Seas, currently serving Europe, will return to the United States next year and has been announced to call Port Everglades it's home port.  Oasis of the Seas and Allure of the Seas, the two largest cruise ships in the world, already call Port Everglades home.  This leaves just Majesty of the Seas left in Miami as Royal Caribbean's presence.  

Royal Caribbean Cruises Ltd.'s level of commitment is less clear. Richard Fain, chairman and CEO of Royal Caribbean Cruises Ltd., declined to comment on its future plans to sail from Miami, nor would he say whether Royal, which owns several brands including Celebrity Cruises and Azamara Cruises, intends to keep its headquarters at the port after its building leases expire in 2011 and 2014.

Miami, for it's part, admits it needs to do more to lure Royal Caribbean back to Miami.  Recently the port of Miami inked a deal with Carnival to keep Carnival in Miami until at least 2018 and County Manager George Burgess said, "We need to roll up our sleeves and negotiate with Royal, just like we did with Carnival".

Port Everglades earned a lot of Royal Caribbean's new found loyalty thanks in part to how it handled the Oasis of the Seas situation.  When Royal Caribbean was shopping for a home port, it received a lukewarm reception from Miami but Port Everglades agreed to double the terminal budget from $37.4 million to $75 million. Royal Caribbean then promised to send even more passengers to Port Everglades to compensate for the extra cost of the 5.5-acre super terminal, which has 90 ticket counters.