Port nears deals for two cruise lines to dock in L.A.

After losing 21-year client Carnival Cruise Lines to the rival Port of Long Beach last April, officials at the Port of Los Angeles redoubled their efforts to attract cruise lines.

A payoff seems imminent, they said, with five-year contracts in the offing with Princess Cruises and Norwegian Cruise Line. "We're close to signing agreements," said Jim MacLellan, the L.A. port's marketing director.

Right now, Princess Cruises splits its calls between Los Angeles and San Diego. Locking it into a long-term deal would be a significant victory for L.A., but wouldn't prevent Princess liners from occasionally calling on Long Beach.

That's because Princess, based in Santa Clarita, is a subsidiary of Miami-based Carnival Corp., which is in the first year of a 25-year agreement to dock at the Long Beach port.

Nevertheless, the deal would add a significant number of calls to L.A., which already has Royal Caribbean Cruises Ltd.'s Royal Caribbean International and Celebrity Cruises under contract. Those two lines attract 500,000 passengers annually.

The pending agreements would come as Princess' new flagship, the 2,670-passenger Diamond Princess, prepares to embark on its maiden voyage, from Japan to L.A., on March 13.

"L.A. and Long Beach are prime competitors because we're serving the basic destination, which is the Pacific Coast of Mexico," said Chris Chase, the L.A. port's marketing manager. "It's very heated, actually, because there is the desire by all ports to gain more business."

Southern flank

Ports generate revenues by adding passenger fees to each ticket, leasing terminal space and charging dockage fees based on the length of the ship. In addition, there are charges for water, food and other provisions the ocean liners buy while docked.

In the cruise industry, approximately 50 percent of ticket buyers are on their first cruise so making a strong impression both on the ship and with port facilities is important.

In the ongoing battle to increase market share, the Long Beach and L.A. ports both have their advantages.

L.A. has enough berth space to dock three cruise ships at a time, while Long Beach can only handle one ship at a time.

Carnival Pride, a 2,124-passenger ship, arrives and departs from Long Beach every Sunday for weeklong cruises to and from the Mexican Riviera, while the Carnival Ecstasy arrives and leaves every Monday and Friday for three- and four-day cruises to Baja Mexico (with the longer trip including Catalina Island.)

"The facility at Long Beach can accommodate one ship and only one ship at a time," said Jennifer de la Cruz, spokeswoman for Carnival Cruise Lines, which has 250,000 customers each year at Long Beach. "And we've got the terminal occupied three out of seven days a week."

Ticket fees in L.A., however, are slightly higher, with passengers paying a $18.65 roundtrip fee, while Long Beach charges only $12.64.

What's more, in July 2001 Carnival invested $40 million to construct a nearly 1,450-space parking garage at Long Beach and to transform half of the Spruce Goose Dome into a passenger loading and unloading area.

Additionally, Long Beach's berth is adjacent to the Queen Mary, a five-minute shuttle ride to downtown Long Beach and a 15-minute water taxi ride across the Alamitos Bay by water taxi to the Shoreline Village retail and entertainment venue.

In fact, Carnival's departure from L.A. was due largely to accommodate passengers who often spend hours in the port area prior to departure. "The location in Long Beach is much more conducive to getting out and walking around the area," said de la Cruz. "There are a variety of tourist-friendly locations close by."

Royal Caribbean International chose the L.A. port because of its accessibility and space, said Jaye Hilton, a spokeswoman for Royal. "It's obviously a wonderful market in terms of the drive potential," she said. "You can pull in people from quite a large radius."

After several years of delays created by planning and budgetary problems, improvements around the L.A. passenger terminal are finally underway.

The port broke ground in late February on the first phase of a $6 million promenade surrounding the terminal that is expected to be complete by the end of the year. The walkway will include benches and palm trees.

Within 20 years, the promenade will extend eight miles, from 22nd Street past the beach, the Ports 'O' Call retail area and out to the lighthouse on the breakwater area.

Last July, the port also brought back the Red Car trolley system that shuttles passengers along the waterfront and connects them to the motorized trolleys that take them to the Cabrillo Marine Aquarium.

Some of the more dilapidated buildings within Ports 'O' Call have also been torn down to provide beach access where sightseers can watch the vessels come and go from the port. "This has been in the planning the stages for a while," said Chase. "It's part of the revitalization of that neighborhood."