Cruising toward new terminal - Jacksonville takes first steps toward new cruise terminal - Blogs

Jacksonville Business Journal - by Mark Szakonyi Staff WriterJACKSONVILLE -- The Jacksonville Port Authority came one step closer to getting a new cruise terminal site after its board gave the go-ahead June 30 to buy the necessary Mayport Village properties.The new 8-acre terminal is needed because ships going to the cruise terminal at Dames Point are limited in height because they must pass under the Dames Point Bridge and power lines passing over the St. Johns River. The cruise industry is building taller ships and phasing out its smaller vessels, which can fit comfortably underneath the bridge and power lines.Plus, the port authority is considering putting Hanjin Shipping Co. Ltd.'s 150-acre terminal on the current cruise terminal site. Hanjin has yet to give final approval on the site, and Mitsui O.S.K. Lines Ltd. hasn't agreed to give a 28-acre parcel to its potential new neighbor, Hanjin.Executive Director Rick Ferrin said the authority will buy the Mayport properties -- totaling slightly more than 1.3 acres -- for about $3.2 million. The terminal is expected to cost $40 million to $60 million. Public and private equity companies will likely be more attracted to funding the construction because the rate of return would be higher than that of a cargo terminal.Construction needs to start by early 2009 and the terminal needs to be up by mid-2010 to avoid interruption of the cruise ships from Jacksonville.Ferrin hopes the new terminal will allow the authority to add three more ships to its existing one-ship line. He hopes to add as many as two Royal Caribbean International cruise ships and a Norwegian Cruise Line ship.Starting in September, Carnival Cruise Lines' 2,052-passenger Carnival Fascination will replace the 1,486-passenger Celebration. The smaller ship will remain in Jacksonville until mid-April.Jacksonville is a good site for a cruise terminal because a third of the country can use the interstate system and get here within 24 hours. That becomes increasingly attractive as airline tickets rise.If a new terminal is built, Jacksonville's cruise industry could create more than 2,700 jobs and add $1.5 billion to the economy over the next 20 years, according to a 2004 study by Orlando-based Fishkind and Associates Inc.mszakonyi@bizjournals.com | 265-2239All contents of this site © American City Business Journals Inc. All rights reserved.

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