Cruise lines agree to waterfront plan.

Two major cruise lines have signed tentative agreements enabling the city to improve a Manhattan cruise terminal and build a brand new one in Brooklyn securing New York City's position as a first-class passenger ship destination. Norwegian Cruise Lines and the Carnival Corporation will pay the city at least $200 million in port charges through the year 2017 to support the city's investment in improving its West Side terminal and create new cruise facility in Brooklyn, Mayor Michael Bloomberg announced last week.

"These unique agreements represent the cruise industry's confidence in the growth of this market, which accounted for more than 3,300 jobs and almost $600 million in economic activity this year alone," Bloomberg said last week during the announcement. "There's no question that New York City's cruise industry is embarking on a fantastic new course, and the result will be new jobs, new economic activity and the redefinition of New York City as a first-class passenger ship destination."

The city has also committed an additional $150 million to modernize and renovate the New York cruise terminal on Manhattan's West Side.

As part of the agreements, the cruise lines agreed to bring at least 13 million passengers to New York City through 2017. In return, the City has committed to an ambitious redevelopment plan and giving each line preferential berths on specific piers. In addition, the City is offering the cruise lines incentives in the form of fee reductions in exchange for volume and revenue guarantees, along with providing incentives to promote growth beyond current projections.

"New York City will be Norwegian's number one home port in the mainland United States, where we will offer cruises to Florida, the Bahamas, the Caribbean, Canada, New England and Bermuda--and the City's only year round ship," said NCL President & CEO Veitch. "We are impressed by the City's commitment to the cruise industry, which recognizes the industry's significant economic impact on New York."

"This announcement reflects months of hard work, strategic negotiations and a commitment from both sides to strengthen the tourism industry that generates hundreds of millions of dollars for the City's economy," said Carnival Vice-chairman & COO Frank. New York City will be the hub of Carnival Corporation's northeast operations now and for the future."

The Master Plan created by EDC, in consultation with Bermello, Ajamil & Partners, calls for the creation of four modern cruise ship berths over the next four years, with an additional expansion in the following ten years. It recommends that all new facilities accommodate larger ships by installing modern adjustable gangways and expanded pier aprons to load and unload passengers and supplies with greater speed, comfort and efficiency. New terminals will segregate embarking and disembarking passengers onto separate levels, allowing for more efficient use of space and reducing congestion caused by passengers arriving and departing at the same time.

The Passenger Ship Terminal, renamed the New York Cruise Terminal, and the Brooklyn facility will have enhanced security measures, new passenger drop-off areas, increased parking and a pedestrian bridge across the West Side Highway.

Once the terminal is complete in 2009, it will be able to accommodate three large cruise ships.