Howard Campbell, Gleaner Writer

THE PORT Authority of Jamaica and Royal Caribbean Cruises Limited yesterday formalised a five-year agreement that will see several of that cruise line's largest vessels entering Jamaica during the next four years.

The agreement, which is worth US$16.5 million (J$1.1 billion), has been in effect since January 1, 2005 and concludes on December 31, 2009. In that period, it is estimated that 2.25 million passengers aboard Royal Caribbean Cruises Limited ships will dock at Jamaican ports.

Robert Pickersgill, the Minister of Housing, Water, Transport and Works, signed on behalf of the Government at the Jamaica Pegasus hotel in New Kingston. He said that under the agreement, the Port Authority of Jamaica is required to improve berthing and security facilities at its terminals in Ocho Rios and Montego Bay.

Larger vessels

A new terminal, Mr. Pickersgill said, will also be developed to accommodate additional traffic and larger vessels. It is expected to be completed by 2008, with total cost of restructuring estimated at US$67 million.

"This contract has been the subject of discussion for some time and the parties have been operating under much of its basic terms and conditions," Mr. Pickersgill said. 'Today's signing formalises the agreement."

Michael Ronan, regional vice-president of Royal Caribbean Cruises Limited, sealed the deal for his company which has been doing business with Jamaica since 1976.

He said the new agreement is the first long-term deal between Royal Caribbean and the Port Authority of Jamaica.

"The industry in the 1970s, into the 1980s, did not enter into long-term agreements with the destinations," Mr. Ronan told The Gleaner. "We have fathered a mutual interest, to agree on terms, that allows us to plan our future better, to plan for expansion for the services that will ensure we meet those goals."

Jamaica enjoyed its most productive cruise ship season in 2001 when it welcomed 1.12 million passengers.

The Royal Caribbean Cruises Limited has a fleet of 29 ships. Mr. Ronan said its biggest markets in this region are Mexico and Grand Cayman.