The first cruise ships to depart from the region in more than a decade will embark on their journeys from a new terminal next to Philadelphia International Airport beginning in April.Â
The new terminal is part of an agreement between the Port of Philadelphia and Norwegian Cruise Line that aims to revive the city’s cruise industry, which dried up in 2011.Â
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The new PhilaPort Cruise Terminal is being developed on a 16-acre property in Tinicum Township, Delaware County. It was purchased last month for an undisclosed sum from Dallas-based Energy Transfer Marketing and Terminals. The site once served as a massive shipyard during World War I and later became part of the city’s nascent airport.Â
Norwegian Cruise Line’s investment in the property includes a seven-year berthing agreement, including four years as an exclusive homeport for its cruise brands.
“They see the future in Philadelphia and they see the market,” PhilaPort spokesperson Sean Mahoney said. “… After four years, we have the ability to branch out and have other lines call Philadelphia.”
Norwegian Cruise Line, the world’s fourth largest by passenger volume, already has 41 voyages scheduled out of Philadelphia over the next two years. Destinations on the Norwegian Pearl and Jewel — ships that each carry more than 2,300 people — include spring and summer trips to Bermuda, the Bahamas and the Dominican Republic and fall voyages to New England and Canada.
As part of the deal for the new terminal, Norwegian Cruise Line has made an initial commitment of at least 41 sailings per year from Philadelphia through March 2033.
“This terminal represents the next wave in our commitment to innovation, regional growth, and delivering an unmatched guest experience from ship to shore,” Daniel Farkas, executive vice president and chief development officer at Norwegian Cruise Line, said in a statement.
Philadelphia’s old cruise terminal in the Navy Yard was managed by the Delaware River Port Authority between 1998 and 2011. The city’s cruise industry peaked around 36 voyages in 2006, but fell to just two in DRPA’s final year of operation. Norwegian Cruise Line, Royal Caribbean, Carnival and Celebrity cruises were among the companies that once set sail from South Philly.
When the Navy Yard terminal closed, DRPA said competition from other ports in the region had lured business away from Philadelphia. DRPA cited industry changes, including larger cruise ships, and said the six-hour journey to navigate the Delaware River before reaching the Atlantic Ocean became a drawback.
“I don’t believe that was necessarily a legitimate reason,” Mahoney said. “If you look at competing ports, even in New York it’s four hours to get out to the open ocean. In Baltimore, it’s 12 hours. … You’re going to be cruising and seeing the lower part of the Delaware River. We don’t see that as a negative at all.”
As Philadelphia celebrates the nation’s 250th anniversary next year — with major events including the World Cup and MLB All-Star Game — PhilaPort and Norwegian Cruise Line said the return of cruises will be another boon for tourism during a busy year.
“We have a lot of hard work ahead of us, but we are ready and excited to welcome cruise passengers this spring,” Jeff Theobald, PhilaPort’s executive director and CEO, said in a statement.
Cruise operations at the terminal are projected to generate 2,185 direct and indirect jobs and approximately $300 million in annual economic output in Pennsylvania, officials said. During construction, PhilaPort will be responsible for all marine improvements at the property and Norwegian Cruise Line will be in charge of land-side modifications, including more parking.Â
Mahoney said cruises out of Philadelphia will have a passenger threshold of about 3,000 people and none of the ships leaving the city will have any problem clearing the bridges along the Delaware River. Other cruise lines also are expected to make calls in Philadelphia in the coming years.
“There’s a whole series of vessels out there and there are new lines building ships of that size currently,” Mahoney said. “There’s a whole market segment that we can handle here in Philadelphia. We potentially could see many more cruises in Philadelphia in that there’s an appetite for the surrounding public, the customers, that want to support them. We could have multiple homeport opportunities, not only with NCL but with other lines.”