Canaveral Port Authority has awarded a $108.5m contract to Ivey’s Construction for building its new Cruise Terminal 3 project.

The contract agreement has been approved by the Canaveral Port Authority Board of Commissioners.

The approval follows a selection process conducted by a five-member Port Canaveral selection committee that favoured Ivey’s bid over a partnership of HJ High Construction of Orlando and Suffolk Construction of West Palm Beach, which placed an $83m bid for the development of Cruise Terminal 3.

As part of the new contract, Ivey’s is set to use $78.98m to develop the Cruise Terminal 3 project and $29.53m to build a nearby 1,800-vehicle parking garage.

The new cruise terminal will include a two-story, 188,000ft² building.

Once completed, the $163m terminal complex will serve as homeport to Carnival Cruise Line’s new 180,000t XL-class cruise ship, Mardi Gras, which is expected to be completed in May 2020.

Canaveral Port CEO John Murray said: “We’re creating a world-class cruise terminal, and, with these contract awards, the project is mobilising and moving ahead.

“We are confident that this state-of-the-art facility will be constructed on schedule and on budget.”

In September, Titusville, Florida-based company RUSH Marine started the construction of a new berth at the port.

The $38.6m berth will replace the port’s current berth site and is scheduled to be completed by December.

Last month, Canaveral Port commissioners approved the issue of a maximum of $117m in bonds to fund the Cruise Terminal 3 project.

Carnival Cruise Line will also provide $50m for the project as part of a long-term agreement that began in September.

Florida Department of Transportation will provide $6m in grants to carry out infrastructure work for the project.