Posted on 10/20/2020 12:44:30 PM PDT by Capt. Tom
Faced with a crippled cruise industry as a one-time cash cow, PortMiami wants to slash required rent payments for ships and hope business picks up in time to cover debt payments for an ongoing expansion.
Once federal regulators lift the existing “no sail” order on cruises, cruise lines would resume rental fees for ships, but not have to meet minimum payments.
Kuryla said the agreements were tailored to keep Miami poised to remain the top cruise port once ships begin filling up again, and reduce berthing costs enough for companies to consider leaving the port with vessels at a fraction of their normal capacity.
The stakes are high for a cruise recovery, since PortMiami has about $1.4 billion in debt and some of that must be covered by sales taxes and other general government funds if docking fees can’t cover the payments.
Despite the coronavirus crisis, commissioners continued approving borrowing by the port. A September vote approved $335 million in new debt for cruise terminals and other projects, backed by property taxes and other governments for police, parks and transit if port revenues aren’t enough to cover the payments.
Moody’s has a negative outlook on the port’s finances, and included some grim words in an August analysis of the county-owned facility’s austerity measures and long-term outlook.
“PortMiami will face difficult decisions to initiate additional cost reductions and postpone discretionary capital expenditures beyond fiscal 2020 if cruise revenue falls short of minimum annual revenue guarantees for an extended period of time,” the for-profit debt rater wrote. “The negative outlook reflects the uncertainty around the return of cruise operations in the US, the rapid deterioration in the credit quality of cruise lines as well as a high risk that minimum annual revenue guarantee contracts may be renegotiated.”
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(Excerpt) Read more at msn.com ...
This is a sign of of an American economic problem that will be spreading coastwise if our CDC kills Cruises until the end of March 2021.
PortMiami is vulnerable to economic disaster, because they spent 1.4 Billion in anticipation of a booming Cruise business, which is now shut down.
Other American Ports have also put money into improving docks for cruise ships.
Our CDC expects Cruise lines to meet virus prevention standards that our Hospitals can't meet. -Tom
Cruise lines are NOT essential
Yeah, and I want a new Lamborghini Aventador.
Not many things are, but PortMiami needs them. -Tom
Good points. Miami, while deep in debt still is looking for savings and building for the future. Broward is a different story.
Tell that to the tens thousands who will be laid off in Miami, Fort Lauderdale, Tampa, New Orleans, San Diego, LA, Seattle, Hawaii Alaska, the US River Cruises not to mention all the ports around the world, tour operators, hotels, restaurants, tourist shops, taxis, airlines and airports. Think how the Caribbean Islands will affected!
Are you sure the cruise industry is not essential?
Actually over 20,000 directly employed in Florida alone, over 170,000 nationally. Including indirect jobs, cabs, restaurants hotels and such, estimated over 400,000 nationally.
Tell that to Fauci, he apparently hasn't a clue regarding the unbelievable problems his shutdown caused. His paycheck is safe.
Sports are not essential.
When I see how the anti Cruise CDC operates, and the Florida Fed. Judge who wants to make Carnival suffer more, and the increase in Covid -19 cases here and abroad, and our medical inability to control covid ,or our ability to get back to work and take the consequences, I'm thinking the Cruise shutdown in this country is going to be extended into 2021. -Tom
Nor is football but you watch it...
High five...
I went out to eat in Gatlinburg TN with some friends today...there was a buffet and we helped ourselves...
First time Id been away from my county and the first time Id been out to eat since Feb...
However I should have been on a cruise today...
Well my next cruise is in Jan but its out of Tampa...
Me too. I should right now be on the Norwegian Gem with my wife , Boston to Bermuda and back to Boston this Friday.
It got cancelled. - Tom
I had a 10 day on the Carnival Legend out of Venice leaving today then B2B a 16 day TA from Barcelona to Tampa...
When that got cancelled in April we booked the Pride to Bermuda which should have left Baltimore last Sunday Oct 19...
I just wanna roll my window down and CRUISE...
Sunday the 18th...
“the first time Id been out to eat since Feb...”
Wow, I couldn’t handle that. I go to eat everyday, usually just fast food but didn’t miss a single day.
Ive been hunkered down at home since early March...
I can say that I have never in my entire life watched football....hate it
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