Australia’s Port of Brisbane (PBPL) has signed a commercial agreement with Carnival Australia for the development of a A$158m ($120m) cruise terminal at the port’s Luggage Point.
The agreement is a modified version of a previous deal signed between the parties for the new Brisbane International Cruise Terminal (BICT), which received conditional approval from the Australian Competition and Consumer Commission (ACCC) last month.
BICT is scheduled to be operational by mid-2020 and will host various brands of Carnival Australia such as P&O Cruises Australia, Princess Cruises, and Carnival Cruise Line.
It is expected to generate nearly A$5bn ($3.9bn) in economic value for the Queensland economy within a period of 15 years.
Carnival Australia and P&O Cruises Australia president Sture Myrmell said: “The terminal will be a major piece of national infrastructure and the single most important investment in cruise tourism in Queensland in 12 years.
“This project creates the opportunity for Queensland and its many regional ports to become the nation’s powerhouse for the cruise industry’s continued growth at a time when industry figures show infrastructure constraints around Australia are slowing momentum.”
Carnival Australia has also signed a long-term agreement with PBPL to buy a maximum of 100 ‘foundation’ berthing days of no more than four in any week for 15 years to guarantee the construction of BICT.
Carnival Australia will have priority berthing rights at the terminal in return.
The arrangements are subject to approval by Australia’s Foreign Investment Review Board.
PBPL CEO Roy Cummins said: “The agreement with Carnival Australia gives us commercial certainty to construct the BICT, and we thank them for their ongoing support.
“This is also good news for the cruise industry as a whole, which will benefit from access to a world-class terminal facility.”