Royal Caribbean asks Galveston For More Time To Complete Cruise Terminal

By: Alana DeRose

galvnews.com

Royal Caribbean asks the port of Galveston for more time to build cruise terminal in case cruise ships can not sail.

The cruise line has a deal with Galveston to build a new cruise terminal, but the longer the cruise shutdown extends in the U.S. the longer it'll take for the terminal to be finished.

"The longer the delay in cruise ships resuming sailing from the United States could impact the new terminal. Royal Caribbean was set to open it by fall 2022, but now, it could be off by a year." Royal Caribbean Blog stated.

The board of trustees for the port of Galveston has approved a second contract amendment to the contract on Tuesday for the new terminal, even though the due diligence expired on April 9.

According to RCB,

"This second amendment formally waives the due diligence period and makes this a firm contract. The due diligence period had given Royal Caribbean Group the ability to cancel the contract up to the April 9th date, but that leverage is now gone."

The contract set a new completion date of September 1, 2022, which is way ahead of the planned arrival for Allure of the Seas on November 13, 2022.

However, the latest when Royal Caribbean must complete the project and and begin paying rent was extended three months onto September 30, 2023 in order to allow room for uncertainty and potential difficulties surrounding the resumption of cruising.

Port of Galveston Director Rodger Rees stated in the Galveston Daily News, "I think the opening date of the terminal will depend on when the cruise lines commence cruising in the U.S." He doesn't believe the extension will happen at all.

"Construction will need to begin by July or August to have the terminal completed by November of 2022. If cruising commences much later than July or August, it will be tough to expect to have the cruise terminal finished by November of 2022."

Trustee Elizabeth Beeton also made a comment to Daily News stating,

"If Royal fails to perform, they owe the port several million dollars."

However Royal Caribbean's extension request wasn't really significant.

The port of Galveston has also been doing there part throughout the pandemic by supporting the project with utilities, parking lots, landscaping, dredging, road and traffic improvements.

Allure of the Seas will be the first ship to sail out of Galveston with the new terminal in November of 2022.