Luis Ajamil

CRUISE TERMINAL DEVELOPMENT
THE TRUE STORY
Bermello,
Bermello, Ajamil
Ajamil &
& Partners,
Partners, Inc.
Inc.
February
February 2006
2006
or,
my life as a
consultant
BSO
Blinding Statement of the Obvious
BSO’s
•
•
•
•
•
•
•
•
The industry is growing
More cities are getting ships
Ships are getting bigger
Security is getting tighter
BCBP is actually checking people
Lines are concerned with costs
Ports have financial constraints
Cruise has great impacts on the
community
• Passenger experience is becoming an
issue
Big Picture
North
North American
American passengers
passengers
12,000
12,000
10,000
10,000
Passengers ('000)
('000)
Passengers
8,000
8,000
6,000
6,000
4,000
4,000
2,000
2,000
00
80
80 81
81 82
82 83
83 84
84 85
85 86
86 87
87 88
88 89
89 90
90 91
91 92
92 93
93 94
94 95
95 96
96 97
97 98
98 99
99 '00
'00 '01
'01 '02
'02 '03
'03 '04
'04 '05
'05
2200
0033
2200
0044
2200
0055
2200
0066
2200
0077
2200
0088
2200
0099
2200
1100
2200
1111
2200
1122
2200
1133
2200
1144
2200
1155
2200
1166
2200
1177
North American terminal demand
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
00
Low
Low
Mid
Mid
Actual
Actual
Home ports
Reality
• New terminal capacity has only been built
in the new emerging markets
•
•
•
•
•
•
Seattle
Galveston
Houston
Norfolk
Tampa
New Orleans
• Collectively the established ports have
actually reduced the number of terminals
• Made huge investments to rehabilitate old terminals
Sustainable growth?
• Miami
•
•
1980 – 11 terminals
2006 – 8 terminals
• New York
• 1970’s - 6 terminals
• 2006 – 4 or 5 terminals
• Los Angeles
Growth issues
• While new ports have been able to cheaply
develop a terminal by using old waterfront
warehouses – all new revenues
• The legacy ports are struggling with
massive capital redevelopment – but not
necessarily new business or revenues
Metric - berth use
(paxs per year)
600,000
600,000
400,000
400,000
300,000
300,000
200,000
200,000
100,000
100,000
00
P
tE
r
o
a
T
s
o
L
ng
A
o
B
o
st
n
rk
o
Y
YYoo
rrkk
gl
r
ve
es
l
e
ew
N
NNe
eww
M
pa
am
BBo
oss
ttoo
nn
s
de
AAn
ngg
eelle
ess
D
i
LLoo
ss
S
an
m
ia
TTaa
mmp
paa
SSaa
nn D
Di
ieeg
goo
S
go
e
i
MMi
PPoo
iaam
m
rrtt
ii
EEvv
eerr
ggll
aadd
eess
Va
ou
c
n
tl e
t
ea
SSee
aattt
tllee
C
B
r
ve
VVaa
nncc
oouu
vvee
rr BB
CC
Passengers per
per Berth
Berth
Passengers
500,000
500,000
Reality
• During the past five years, the industry has
been able to absorb growth by
redeveloping old terminals
• Not many of these exists any more
• During the next ten years, either
• More alternate cities will be needed
• Growth will be needed in the traditional ports
• Where do your ports grow?
• In a financially feasible way
Public policy / Business issues
Project Costs
Project Revenues
BUSINESS
ISSUES
Method for Financing
Ownership of Asset – Public / Private
PUBLIC
POLICY
ISSUES
Operational Control
Achieving a balance
Public
policy
Business
plan
Terminal Design
The real picture
How to build a terminal, successfully
And live to tell about it
Myth 1
There is uniform standard or
solution
The evolution of the cruise terminal
TEMPORARY
FACILITY
CONVERSION OF
EXISTING
BUILDING
NEW
FACILITY
JOINT
DEVELOPMENT
Embarcadero Circle
Embarcadero Circle Vision
Embarkation (departure)
Disembarkation (arrival)
Program guidelines (feet 2)
INDIVIDUAL TERMINALS
1,800 PAX
2,600 PAX
3,600 PAX
RECOMMENDED
BAGGAGE
24,000
39,000
54,000
30,000
BCBP
OFFICES
3,000
3,000
3,000
3,000
BCBP
PROCESSING
8,000
8,000
8,000
12,000
CHECK-IN
9,000
14,000
18,000
14,000
LOUNGE
7,000
11,000
16,000
12,000
SUPPORT
10,000
10,000
10,000
5,000
AIRLINE
?
?
?
?
TOTALS
57,000
85,000
109,000
76,000
Design process
process has been relegated to
design by committee
Myth 2
Cruise lines have an uniform or
consistent idea of what they
want
Myth 2a
People within the same cruise line
have an uniform or consistent idea
of what they want
SSJJ
44
MM I
IAAD
MM I D
IAA8
899
NNYY
BBOO BBTT
SSTT
OONN
SSEE
AA66
SSEE 66
3300
3311
PPEE
11
PPEE
22
P
PEE
44
PPEE
1188
PPEE
1199
PPEE
2211
PPEE
2222
PPEE
2244
PPEE
2255
PPEE
2266
SSDD
L
LAA
99
LLAA 33
99119
922
LLBB
NNOO
11
N
NOO
22
Arrivals area (baggage)
45,000
45,000
40,000
40,000
35,000
35,000
30,000
30,000
25,000
25,000
20,000
20,000
115,000
5,000
110,000
0,000
5,000
5,000
00
LLBB
PPEE
22
LLAA 11
99119
92
MM I 2
IAA8
899
SSJJ
44
SSEE
AA66
66
N
NOO
22
SSDD
PPEE
2244
PPEE
2222
TTMM
PP33
LLAA
9933
NNYY
BBTT
PPEE
22
P
PEE
1199
M
MI
IAAD
D
NNOO
11
PPEE
1188
PPEE
4
S
SEE 4
3
300
3311
PPEE
11
PPEE
2255
PPEE
BBOO 2266
SSTT
OONN
Baggage area
60,000
60,000
50,000
50,000
40,000
40,000
30,000
30,000
AVERAGE
20,000
20,000
110,000
0,000
00
Departures (check-in)
60,000
60,000
50,000
50,000
40,000
40,000
30,000
30,000
20,000
20,000
110,000
0,000
00
11 2 4
11 1
2
5
T N 6
6
4
2
9
8
3
9
4
D
SSJJ4 IIAAD IAA889 YYBBT TTOON AA666 330033 PPEE1 PPEE2 PPEE4 PPEE118 PPEE119 PPEE22 PPEE222 PEE224 PPEE225 PEE226 SSDD LAA993 9911992
P
P
MM MM I NN OSS SSEE SSEE
L LAA
L
BBO
LLBB NOO11 NOO22
N N
LLBB
PPEE
2244
PPEE
2222
PPEE
L
LAA 11
99119
922
20,000
20,000
SSDD
PPEE
225
SSEE 5
3300
3311
SSJJ
44
PPEE
1199
PPEE
2266
NNOO
22
P
PEE
22
P
PEE
44
S
SEE
AA
BBOO 6666
SSTT
OONN
LLAA
9933
T
TMM
PP3
MM I 3
IAA8
899
PPEE
2211
N
NYY
BBTT
PPEE
1188
M
MI
IAAD
D
NNOO
11
Check-in area
70,000
70,000
60,000
60,000
50,000
50,000
40,000
40,000
30,000
30,000
AVERAGE
110,000
0,000
00
LLAA
9933
LLAA
99119
922
SSDD
PPEE
44
PPEE
1188
PPEE
1199
PPEE
2211
PPEE
2222
PPEE
2244
PPEE
2255
PPEE
2266
PPEE
11
PPEE
22
SSDD
S
SEE
AA66
66
SSEE
3300
3311
SSJJ4
4
MM I
IAAD
D
NNYY
B
BBOO BTT
SSTT
OONN
VIP
4,000
4,000
3,500
3,500
3,000
3,000
2,500
2,500
2,000
2,000
11,500
,500
11,000
,000
500
500
00
SSJJ4
4
MM I
IAAD
D
M
MI
IAA8
899
NNYY
BBOO BBTT
SSTT
OONN
S
SEE
AA66
6
SSEE 6
3
300
3311
PPEE
11
PPEE
22
PPEE
44
P
PEE
1188
PPEE
1199
PPEE
2211
PPEE
2222
P
PEE
2244
PPEE
2255
PPEE
2266
SSDD
LLAA
993
LLAA 3
99119
922
NNOO
11
N
NOO
22
Gangways
22
11
00
Myth 3
Security is uniform throughout
the United States
Security
•
•
•
Large variations from place to place
Adjacent relationships
Nearby uses
Myth 4
BCBP has a consistent design
or direction
LLBB
SSDD
LLAA
993
LLAA 3
99119
922
SSJJ
44
M
MI
IAAD
D
MM I
IAA8
899
N
NYY
B
B
BOO BTT
SSTT
OONN
SSEE
AA66
66
SSEE
3300
3311
PPEE
11
PPEE
22
PPEE
44
P
PEE
1188
PPEE
1199
PPEE
2211
PPEE
2222
PPEE
2244
PPEE
2255
PPEE
2266
FIS
114,000
4,000
112,000
2,000
110,000
0,000
8,000
8,000
6,000
6,000
4,000
4,000
2,000
2,000
00
SSJJ4
4
MM I
IAAD
D
MM I
IAA8
899
N
NYY
BBOO BBTT
SSTT
OONN
S
SEE
AA66
6
S
SEE 6
3300
3311
PPEE
11
PPEE
22
PPEE
44
P
PEE
1188
PPEE
1199
PPEE
2211
PPEE
2222
PPEE
2244
PPEE
2255
PPEE
2266
SSDD
LLAA
993
LLAA 3
99119
922
LLBB
T
TMM
PP33
NNOO
11
NNOO
22
Total Area
1120,000
20,000
1100,000
00,000
80,000
80,000
60,000
60,000
40,000
40,000
20,000
20,000
00
Design process
process has been relegated to
design by committee
What’s the answer
Keys
• Think strategically
•
•
Community issues
Port’s mission
• Think financially
• How to finance the project
• Stay competitive with the industry
• Think functionally
• Listen to your users and stakeholders
• Focus on all parts of the business
•
•
Operations
Third party costs to the lines
• Put it all together
Controlling costs
•
•
•
Reduce terminal size
Streamline operational costs
Improve luggage handling
• Direct luggage handling
• Electronic tagging of luggage
• Improve provisioning
• Containerazion of ship chandlery
• Roll-on, roll-off of goods
Solutions
•
•
•
•
The ports and lines will continue to evolve
One solution for legacy ports
another for start ups
Themes
•
•
•
Speed and efficiency
Costs
Passenger experience
• What will happen as all the old terminals have
been rebuilt –
• Where will the new capacity go to?