New York, Apr 21: Mayor Michael Bloomberg announced agreements with two cruise ship companies Monday to improve Manhattan`s main terminal and create a new pier for cruise liners in the Brooklyn borough.
Norwegian Cruise Lines Ltd. and Carnival Corp. signed letters of intent with the city to pay a minimum of $200 million in port charges through 2017 to support the improvements.
The city will spend $150 million to renovate the terminal, which was completed in 1935 and has not had a major overhaul since the 1970s. Once the renovations are complete in 2009, the terminal will be able to accommodate three large cruise ships at the same time, officials said.
The agreements call for the two cruise lines to bring at least 13 million passengers to Manhattan and to the new Brooklyn pier through 2017. In return, Norwegian and Carnival will receive preferential berths. The city will also give the cruise lines fee reductions in exchange for volume and revenue guarantees.
Bureau Report
