Thursday, April 27, 2023
Port Canaveral officials are proposing building a new cruise terminal that would open in late 2026 on the south side of the port, at a cost estimated at $175 million.
Those plans were revealed in an amended five-year capital budget plan Canaveral Port Authority commissions will consider at their meeting on Wednesday.
The move comes as Port Canaveral Chief Executive Officer John Murray anticipates the addition of two new cruise ships to the port lineup in late 2024 ― one ship that will based at the port year-round, the other seasonally.
Murray said the port is awaiting announcements by cruise lines before he can discuss details of the new ships.
Separately, Port Canaveral Chief Financial Officer Michael Poole will ask port commissioners to approve an amended budget for the current 2022-23 fiscal year that reflects stronger-than-anticipated cruise revenue.
Poole now is projecting revenue from cruise ships and cruise-related parking for the fiscal year runs that from Oct. 1, 2022, through Sept. 30, 2023, to total $150.87 million, up from his previous estimate of $124.48 million.
The new figure represents about 83.7% of the port’s total projected operating revenue of $180.35 million, which also includes money made from the port’s cargo, recreation, leasing and other business sectors.
Poole also increased his estimate for 2022-23 operating expenses by $3.39 million, from $108.98 million to $112.37 million, noting that an increase in cruise passengers also means cost increases for staff and service contracts.
The amended budget calls for hiring 10 more people to deal with the increased activity.
Counting non-operating revenue and expenses, Poole is projecting that the port will have a $75.43 million profit in the current budget year. He initially estimated a $53.36 million profit before the budget year began.
Port Canaveral uses the profit to pay for port development projects and to reduce debt from previous projects.
But even the $75.43 million profit estimate for 2022-23 might be conservative. The port’s profit for the first six months of the current budget year is $51.75 million.
Murray said the port’s initial financial projections were off the mark because the port was estimating that cruise ships would sail from Port Canaveral at 100% of their double-occupancy capacity.
In reality, they are sailing at an average of 110% of double-occupancy capacity, with many cabins having three or four passengers.
Murray said some cruises that have as passengers a high concentration of families with children are sailing at as high as 135% to 140% of double-occupancy capacity.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
