Cruise Lines Score Win in Alaska

Looks like the tax the the government approved the tax to be lowered. And at the bottom of the article, it's rumored that Royal Caribbean is leaving the Port of Miami.

Cruise Lines Score Win in Alaska

Alaska's Senate has agreed to roll back a tax on cruise ship passengers that has angered the industry and led some lines to cut back on ships visiting the state.

The tax would be lowered o $34.50 from, according to news reports. The bill still must be approved by the Alaskan House.

The cruise industry has challenged the tax in federal court as an illegal entry tax and the Senate bill would reportedly settle the issue if enacted.

The Alaska Cruise Association said the state will see a 14.2 percent drop in cruise capacity this year, which is 140,000 passengers.

Association officials could not be reached immediately for comment, but the group's Web site noted: Miami-based Carnival Corp. & PLC (NYSE: CCL; NYSE: CUK) previously stated that the move of Holland America's 1,270-passenger Ryndam to Europe in 2011 and Princess Cruises' 710-passenger Royal Princess to P&O Cruises were in line with the continued drop in Alaskan deployments.

Carnival Corp. and Royal Caribbean Cruises Ltd. (NYSE: RCL) spokespersons did not have immediate comment on the bill's passage.

Richard Sasso, who leads the marketing committee for the Cruise Lines International Association in Fort Lauderdale, said: "We need to be careful that destinations don't underestimate the value of cruise ships going to destinations and the economic contribution that makes."

Overly aggressive taxation can put a burden on guests, adding to the cost of a cruise and generate concern among cruise operators that the taxes aren't justified, especially if the proceeds aren't being used to enhance infrastructure related to cruise ships, he said. "What happened in Alaska over the years is they escalated the tax to a point where it seemed to be not only unconstitutional but also not a favorable cost structure for cruise lines to wanting to operate there."

Maritime lawyer Jim Walker of Miami, who is critical of pollution caused by cruise ships in Alaska, wrote on his blog that the vote is a big win for Carnival and its subsidiaries.

In other news

USA Today's Gene Sloan has written an article about what he describes as "Royal Caribbean's slow-motion pullout" from its longtime hub at the Port of Miami.

His posting followed Royal Caribbean's announcement that the 3,634-passenger Liberty of the Seas will move to Port Everglades in November 2011.

Royal Caribbean's Oasis of the Seas, which is the world's largest cruise ship, is already based at Port Everglades and the sister ship, Allure of the Seas, will be based there later this year.

The tent-like roof of Royal Caribbean's terminal is a landmark at the Port of Miami, but Sloan noted the company will have only one ship left in Miami in the winter of 2011-2012.

Royal Caribbean can utilize the state-of-the art Terminal 18 at Port Everglades, which is the world's largest cruise terminal. Port Everglades officials have touted the port's next-door proximity to Fort Lauderdale-Hollywood International Airport as a key marketing advantage because it's the discount airline hub for South Florida.

Royal Caribbean's move may put pressure on the Port of Miami, which is contemplating building a new cruise terminal, as previously reported on Cruise Industry report.

The move could also enhance Port Everglades' efforts to challenge the Port of Miami as the world's busiest cruise port in upcoming years.

other students designing ports

http://www.bizjournals.com/jacksonville/stories/2010/04/05/daily42.html
Friday, April 9, 2010

UF students design cruise terminal for old Ford site

Jacksonville Business Journal - by Christian Conte Staff Writer

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The former Ford assembly plant that sits at the base of the Mathews Bridge could one day be a cruise ship terminal and destination port, according to a study conducted by a group of students at the University of Florida.

A group of 16 students in the university’s College of Design, Construction and Planning department of interior design created design possibilities for the 86-year-old building that include 60,000 square feet of cruise ship terminal space, 50,000 square feet of boutique hotel space, 10,000 square feet of restaurant/lounge space and 40,000 square feet of what the students termed “wild card” space that included a variety of possible uses including a cinema, convention space and art display space.

Preliminary cost estimates for the project from cruise ship consultants are around $30 million.

The Jacksonville Port Authority is considering moving the cruise terminal at Dames Point to Mayport or two other unnamed sites east of the Dames Point Bridge. The authority needs a new terminal because the site of the present cruise terminal at Dames Point will become home to Hanjin Shipping Co.’s new container terminal.

About 80 percent of major cruise line ships can’t pass under Dames Point bridge and nearby wires, said port authority CEO Rick Ferrin.

Sonny Redmond, one of the partners in the investment group that owns the property, Hill Street LLC, said he hopes to use the students’ design suggestions as the basis for a future development plan for the site, but not unless he earns the support of the community for the idea.

“In order to have a project like this work, you have to have 100 percent support from all the stakeholders,” Redmond said.

The 165,000-square-foot facility is part of a 35-acre tract that Hill Street owns that stretches from the base of the bridge to Talleyrand Avenue. The facility was built for the Ford Motor Co. in 1924-25. It was used as an assembly plant until the mid-1930s and then for storage and shipping through the 1950s. Although the property has been through a succession of owners until Hill Street acquired it in 2001, it has continued to be leased out to various industrial users over the years.

Redmond said the group didn’t have any specific development plans for the property when it bought it, but when the president of the Florida chapter of the nonprofit group DOCOMOMO, which advocates for preserving historic structures, asked Assistant Professor Marty Hylton to have his students review the project as a possible cruise ship terminal, he decided to take him up on the offer.

The idea has already gotten the attention of some in the cruise ship industry. Mike Greve, president of the Miami cruise ship development consultation company Global Destinations, said he likes the site because of its history, because it is an existing building that would reduce the capital expense of construction and because it’s a Downtown site.

The owner of the property now plans to contract with Global Destinations to have the site evaluated and graded for its potential as a cruise ship terminal site. If it grades well, Redmond said the next step would be approaching the city about the idea.

cconte@bizjournals.com | 265-2227

Read more: UF students design cruise terminal for old Ford site - Jacksonville Business Journal:

more on cruise passenger taxes

http://www.alaskajournal.com/stories/040910/loc_img29_001.shtml

Web posted Friday, April 9, 2010

Lawmakers debate whether to slash cruise ship head tax

By Steve Quinn
For the Journal


A small aircraft taxis to port as two cruise ships sit at the docks in Juneau in this 2009 file photo. Lawmakers are debating whether to cut the cruise ship head tax, as tourism industry leaders say the higher rate is hurting business. File Photo/Melissa Campbell/AJOC

JUNEAU — It's always about money in the final weeks of the Legislative session, but it's not always about oil money.

In this case, the theme playing out in the waning days is the reprised debate over the cruise ship passenger head tax.

Depending on who is talking, the $50 tax that each passenger pays as part of voter approved ballot initiative should either be reduced, eliminated or left alone.

Further, some are willing to provide additional tax credits for marketing and local docking fees. Others aren't so sure.

Of the $50, tax opponents are looking to lower the $46 used for capital projects, primarily but not exclusively in port communities.

The other $4 is for environmental oversight and is not part of the debate.

There seems to be no consensus building in the finance committee rooms sitting on opposite ends of the fifth floor — known as the money floor.

The disparity of opinions grows with some calling for a change in when a tax cut would take effect or eliminating proposed tax credits that have no link to the 2006 initiative.

And the disagreement doesn't fall along party lines, either.

Rep. Bill Thomas, R-Haines, made his interpretation of these bills abundantly clear to the administration during a finance committee hearing on a proposal by Gov. Sean Parnell.

"As I understand it, the bill by the governor is to overturn the efforts by the people," Thomas said, talking to Curtis Thayer, the states deputy commissioner for the Alaska Department of Commerce.

"What this does. . .." Thayer said.

"Yes, or no?" Thomas said. "Yes, or no?

"I know what you're trying to do," he continued. "It's reducing the head tax amount voted on by the people. I know it's been amended, but this is the meat of the whole initiative."

Meanwhile, fellow Republican Kyle Johansen, the House Majority Leader from Southeast port community of Ketchikan, said he would like the entire tax repealed.

"I can't tell you whether the tax makes a difference in whether people come or not," Johansen said. "But regardless of those arguments, there is no debate that it's money out of the pockets of people who spend money on tours and in stores helping our economy. It's better in the hands of the people rather than the government."

This has been an on-going debate since the initiative passed in 2006 and the tax was assessed in 2007.

But the issue started to pick up some traction in the Capitol last month when Parnell proposed reducing the tax to $34.50 after a meeting in Miami with industry executives.

It gained momentum last week when business leaders in the tourism industry descended on the Capitol looking to push their tax agenda.

Meanwhile a two-man team who drafted the approved initiative roamed the halls making their case as well.

The debate played out in separate finance committee hearings in the House and Senate.

The issue became so divisive that lawmakers seemed to forget about the oil and gas tax for several days.

The head tax also landed the state in court.

The Alaska Cruise Association has a lawsuit pending in the U.S. District Court in Anchorage, claiming the head tax is unconstitutional.

The group, led by former Sen. John Binkley, asserts the Legislature's appropriation of the head-tax money is improper because its been used for communities no where near a port of call.

Projects include $800,000 for the Alaska Zoo in Anchorage or $430,000 for a railroad station in Wasilla.

Meanwhile, port projects in Ketchikan ($1 million for port berth replacement); Juneau ($1.2 million for emergency relief center); and Sitka ($2 million for passenger vessel lighting facility) received vetoes by former Gov. Sarah Palin.

Losing money for the Juneau project in 2008 had one lawmaker recall a cruise ship grounding in 2007 that forced nearly 300 passengers to evacuate.

"What do we do if we have a catastrophe," said Sen. Bert Stedman, a Sitka Republican who serves as the Senate Finance co-chairman. "How do you justify that veto? We need to have a facility to handle that."

The association, which represents nine cruise lines, agreed to drop its suit if the state lowered the head tax by $11.50.

Bringing the tax down to the new figure helps delete the portion that cannot be spent in Alaska's port towns and goes to other state infrastructure projects.

The group and the state are drafting an agreement to drop the suit should legislation to lower the tax pass, Binkley said.

"There is competition out there," Binkley said before the hearings. "There are dozens of other countries trying to get cruise ships to their destinations. When we are losing three ships, they are going to a competing port; they aren't sitting at a dock. "

Backers of change are pointing to a newly minted study by the McDowell Group study, citing a decline of about 142,000 passengers this year and the prospects of losing 5,000 jobs statewide.

Supporters from around the state, mostly small businesses in port cities, weighed in primarily to speak on behalf of the tax cut.

"My business has been directly impacted by this head tax; we were off by 20 percent last year," said Mike Stedman, vice president of flight operations for Juneau-based tour company Wings Airways. "We are laying up 20 percent of our aircraft fleet this year. As a result we will have less jobs. In my mind this is a jobs bill."

Chip Thoma, a proponent of the 2006 ballot initiative, said the money sent to port communities for various projects illustrates the tax is working as planned.

But Thoma told lawmakers he was willing to offer a compromise, something that reflects a projected passenger decrease.

"We are projected to go down 15 percent," Thoma said. "That would be a valid decrease. It would bring it down to $39. We could live with that."

Cruise Tax bill to Increase Tourism

http://www.msnbc.msn.com/id/36051424/ns/business/

Alaska governor plans to introduce cruise tax bill

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By BECKY BOHRER

Associated Press Writer

updated 9:52 a.m. ET, Fri., March. 26, 2010

JUNEAU, Alaska - Alaska Gov. Sean Parnell introduced legislation Thursday aimed at reducing the state's head tax on cruise ship passengers and bringing more tourists to the state.

He first made the proposal last week after returning from a cruise ship trade show in Florida. He sees a rollback — from $46 a person to $34.50 — as a way to address industry claims that Alaska's cost of doing business is too high. He hopes it will lead to increased ship deployments and help settle a lawsuit with the Alaska Cruise Association, one the attorney general last year pledged to vigorously defend.

There are no guarantees.

Story continues below ↓

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Leading lawmakers, while open to a tax reduction, earlier this week balked at combining it with a measure allowing tax credits for corporations contributing to statewide tourism marketing efforts. Parnell's proposal includes a tax credit provision for corporations making money off tourism in Alaska, capping contributions eligible for credits at $20 million this year.

It also allows for offsets of local head taxes that Chip Thoma, president of Responsible Cruising in Alaska, said will drop the state's tax share to $19 a passenger — potentially providing millions less for capital projects. His group called Parnell's plan an "industry-written measure" that amounts to "cap and skim."

The governor's office released a copy of the bill late Thursday.

Parnell spokeswoman Sharon Leighow confirmed the bill would further reduce the head tax to $19, including deductions of charges in Juneau and Ketchikan.

Voters approved the head tax in 2006, and it's been a thorny issue since. Supporters said the tax is meant to help cover the cost of infrastructure needed for large ships coming to port. Critics countered that it's onerous and unconstitutional.

Cruise Association President John Binkley has blamed Alaska's regulatory climate and tax costs for the expected loss of three ships, accounting for about 142,000 passengers, this season. But some, including those who helped lead the voter initiative, are skeptical the tax is keeping ships away and point instead to factors like the recession.

Parnell sees his proposal as a win for all involved — and not as a corporate giveaway.

"I made a very pointed case (to industry representatives) that they would need to demonstrate that, in a public process, that this would bring ships. That it would create Alaska jobs and not just be a transfer of dollars from the state to their bottom line," he told reporters.

Parnell said one company agreed to postpone deployment decisions until May, to see what legislators do. He said he's asked other cruise lines to do the same, and to testify publicly, to make their case for the changes.

Binkley said there are discussions under way with Attorney General Dan Sullivan on a possible "stipulation" to end the pending federal lawsuit. He declined further comment, saying in part that he wanted to see Parnell's proposal.

The Legislature is currently scheduled to adjourn April 18.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

How big is a cruise ship?

How Big is a Cruise Ship?

With emphasis on luxury and Cruise Shipcomfort, the sizes of cruise ships have gotten bigger through the years. Below are the largest cruise ships active in the world today.
Dimensions of the Oasis of the Seas

The Oasis of the Seas is the biggest cruise ship at 360 m (1,181 ft). The tonnage is 225,282 GT (gross tonnage). The beam measures 47 m (154 ft) and the height is 72 m (236 ft). The draught of the Oasis of the Seas has been measured at 9.3 m (31 ft). The depth is 22.55 m (74 ft).

The ship has 16 passenger decks and has a capacity of 5,400. The crew numbers 2,165. The size of cruise ship Oasis of the Seas allows it to move at 22.6 knots (26 mph; 41.9 km/h).

The power is derived from three Wärtsilä 12V46D engines (13,860 kW/18,590 hp each). Three more Wärtsilä 16V46D engines are installed. Each one produces 18,480 kW/24,780 hp. There are whirlpools, a coffee ship, a winery and duty free shops. There is also a golf course, TV and Internet access.

The ship is operated by the Royal Caribbean International and built at the cost of US$1.4 billion. It was launched on October 28, 2009. Its maiden voyage is scheduled sometime on December 2009.
Dimensions of the Freedom of the Seas

The Freedom of the Seas is 1,119 ft (338.9 m) long. The tonnage is 154,407 GT and the beam is 126.64 ft (38 m). The size of cruise ship Freedom of the Seas gives it a waterline of 184 ft (56.08 m).

The height is 209 ft (63.7 m); that’s about 15 decks. The draught is 28 ft (8.53 m). The 15 decks are the passengers; there are three more making a total of 18.

The passenger capacity of the Freedom of the Seas is 4,370 while the crew is 1,360. The speed is 21.6 knots (40 km/h or 25 mph). The power is derived from six Wärtsilä 46 V12 engines (diesel, 12.6 MW, 17,000 hp).

These drive generators at 514 rpm. The propulsion is provided by 3 ABB Azipod podded electric propulsion units. The ship cost $800 million to build.
Dimensions of the Liberty of the Seas

The size of cruise ship Liberty of the Seas is as follows: the length is 1,119 ft (338.9 m). The beam reaches 126.64 ft (38 m), and the draught is 28 ft (8.53 m). There are 18 decks. The speed of the Liberty of the Seas is 21 knots (25 mph; 40 km/h). The crew number 1,300 and the passenger capacity is 4,370.

The ship is owned by the Royal Caribbean International. It cost $800 million to build. Its first voyage was on May 18, 2007. This cruise ship is still active. Like the other cruise ships, the Liberty features first class rooms, sports centers and other facilities and accommodations.

The massive sizes of cruise ships make them a sight to behold. But as most people will tell you, their amenities are just as impressive.

Port Talks

http://www.montrealgazette.com/news/pushes+deepwater+port+Alaska/2597781/story.html

U.S. pushes for deepwater sea port in Alaska

By Randy Boswell, Canwest News ServiceFebruary 22, 2010

Prime Minister Stephen Harper and U.S. House Transportation and Infrastructure Committee Chairman Don Young seen in a file photo.

Photograph by: Fred Chartrand/Pool - Harper, Alex Wong/Getty Images - Young

In a further sign of the ongoing transformation of the melting Arctic into a new strategic base for military and commercial activity, U.S. lawmakers are pushing for the construction of a deepwater sea port in Alaska near the western entrance to the disputed Northwest Passage.

"Now is the time to be investing in our infrastructure and laying the groundwork," Rep. Don Young, an Alaskan member of the U.S. House of Representatives, said in introducing legislation partnered with a proposed Senate bill for a new northern port.

"As other countries develop interests in this region, we need to ensure the protection of the U.S.'s interests and make moves now to lay our claim."

The Canadian government has already announced plans to construct a deepwater port near the waterway's eastern gate, at Nanisivik on northern Baffin Island.

But a leading expert in polar geopolitics, University of Calgary professor Rob Huebert, suspects the U.S. "could quickly overtake us, because they'll have more funding and more capabilities" to get the Arctic docking facility built.

"It'll be like the Olympics," predicts Huebert. "Yes, we got the jump on them in looking at it ahead of time. . . . But then they'll pass by us. We won't own the podium, so to speak."

Last fall, the U.S. navy issued a report calling for greater investments in the Arctic to protect U.S. national security and guarantee American economic interests in the region.

"This opening of the Arctic may lead to increased resource development, research, tourism, and could reshape the global transportation system. These developments offer opportunities for growth, but also are potential sources of competition and conflict for access and natural resources," the report stated.

"While the United States has stable relationships with other Arctic nations, the changing environment and competition for resources may contribute to increasing tension, or, conversely, provide opportunities for co-operative solutions."

The U.S. push for a deepwater Arctic port comes at a when commercial and diplomatic interest in the region is rapidly growing. An Alaska-based company, prompted by retreating sea ice, announced plans last month to run a 16,000-kilometre-long, Tokyo-to-London undersea cable through the Northwest Passage.

Meanwhile, global oil companies are jockeying for control of potentially petroleum-rich tracts of Arctic Ocean seabed — including a disputed section of the Beaufort Sea, north of the Yukon-Alaska border, that is claimed by both Canada and the U.S.

Shipping through Canada's Northwest Passage and along Russia's Northern Sea Route is expected to rise steadily in the coming years, along with Arctic tourism, fishing and mining.

But as the five Arctic Ocean coastal states — Canada, the U.S., Russia, Norway and Denmark — press forward with infrastructure projects to prepare for the expected polar business boom, there are signs of both tension and co-operation between northern nations and stakeholders.

Last week, the Canadian government opened the door to negotiations with the U.S. over the Beaufort Sea territorial dispute. Yet no resolution is in sight for the thornier question of whether Canada's view of the Northwest Passage as "internal waters" can be reconciled with the American position that the sea route is an "international strait."

And while Canada has announced plans to host a five-nation Arctic summit in late March to discuss the need for multilateral thinking on environmental protection and economic development, the move has rankled three excluded Arctic Council countries — Sweden, Finland and Iceland — and prompted loud objections from northern aboriginal leaders who are demanding a seat at the conference table.

Canada and the other coastal states are also gathering geological data throughout the Arctic Ocean to secure new seabed territory under a UN treaty. Overlapping claims are likely to be submitted for the sea floor near the North Pole and in other areas where maritime boundaries meet, but the "Arctic 5" nations have pledged to let scientific evidence and international law — not military might — decide the outcome.

Huebert has raised alarms about potential challenges to Canadian interests in the Arctic — including Russia's resurgent militarism — while fellow Canadian Arctic expert Michael Byers has downplayed the likelihood of conflict.

Writing in the inaugural edition of Global Brief, a new Canadian magazine on world affairs, the University of British Columbia professor argues: "whatever future the Arctic holds, it will likely be based on co-operation, consent and international law. There is no race for Arctic resources, and no appetite for conflict."

© Copyright (c) Canwest News Service

Prime Minister Stephen Harper and U.S. House Transportation and Infrastructure Committee Chairman Don Young seen in a file photo.

Photograph by: Fred Chartrand/Pool - Harper, Alex Wong/Getty Images - Young

Press Release - Holland America

Here's the press release Holland America sent out on bringing a ship to Anchorage for the first time.

http://www.hollandamerica.com/news/NewsRelease.action?newsReleaseId=712

Helsinki Redevelopment

Here's a link the website for the Port of Helsinki in Finland. Helsinki has 4 major ports in the city, and there are proposals to turn 2 of the 4 into a housing and mixed-use development.

The 2 ports are the North and West Harbours.

http://www.portofhelsinki.fi/default.asp?docId=15733

read all about it

Below are two articles about the proposed ferry port landing. It is a bit heated if you look at the comments section. We are not held to these situations, but I thought you should know about public debate.

Question for you guys: I have been going back and forth on the question of whether we should ask for a meeting with people in the government (mayor's office) who have been looking at this potential project. On the one hand it seems like they would have good insight into the "reality" of the situation, but on the other hand, sometimes too much focus on this bogs the creative part of the project down. In general, people in government like to meet with students, so I don't think it would be a problem getting the meeting, but wanted to throw it out there as a public debate. So, what do you think?

Here are the articles:

from the Frontiersman: "No home in Anchorage for borough’s new ferry"

from the Anchorage Daily News: "Mat-Su ferry almost finished, but port location uncertain"