One of the US's busiest cruise ports can't keep up with America's love for vacations at sea — but an urgent new terminal will help meet the demand for giant cruise ships

23.05.2024 - 18:33 / insider.com / Royal Caribbean

Florida — home to busy beaches, Disney World, and a cruise industry so successful that local ports simply can't keep up with demand.

The Sunshine State flexes seven cruise ports, three of which — Miami, Canaveral, and Everglades — are among the five busiest in the world.

The state may seem well stocked as far as cruise terminals go. But Port Canaveral is running out of space as demand for these vacation voyages continues to skyrocket.

In 2023, the Florida port accommodated a record 6.8 million cruisers and 13 homeported ships, leading to an all-time-high revenue of $191 million — more than 80% of which came from its cruise operations.

In 2024, it expects to add another 500,000 passengers to that total.

The influx in demand has left Port Canaveral at "a point where we're starting to turn business away," John Murray, its CEO, said at a press conference earlier this month.

The proposed solution? Expand — and quickly. The port announced plans to build a seventh cruise terminal on its north side by 2026, scrapping its initial proposal for one farther south. The latter would've taken longer to build, but "we need it in two years," Murray said, adding: "Maybe sooner."

The proposed terminal would be at the port's "underutilized" North 8 berth. When complete, it could accommodate the world's largest cruise ships, including Royal Caribbean's new 1,198-foot-long, 9,950-person-capacity Icon of the Seas.

Murray said the project would be "self-funded." There's no word yet on the cost, but a spokesperson for Port Canaveral told Business Insider that the existing berth would make construction cheaper than that of previous cruise terminals. The most recent one, completed in 2020, cost $155 million.

Before unveiling these plans, Port Canaveral intended to build its next terminal in an area known as Bluepoints Marina, farther south. The project would've taken three to four years to complete — too long a timeline for Port Canaveral.

A new cruise terminal "has become more urgent and necessary now," Murray said.

Along with a seventh terminal, Port Canaveral plans to build a 3,000-car parking structure and improve the roads leading into and out of the parking lot.

Expanding parking on land is just as important as in the water: Cruise lines have been increasingly developing private islands and destinations in the Caribbean, often visited during three- and four-day cruises. Murray said these shorter sailings typically bring in more vehicular traffic than their five- to seven-day counterparts.

Wooing cruise lines operating on these itineraries could be especially important for Port Canaveral, which is farther northfrom the private Caribbean destinations than Miami's and Fort Lauderdale's popular ports.

Competition is stiff. In