Information sheet on the Canton Crossing passenger terminal facility, 2002?

CANTON CROSSING PASSENGER TERMINAL FACILITY The cruise ship business has been on a growth curve at the Port of Baltimore over the past two years, with an optimistic outlook for the next few years. In 2004, the Port expects to have up to 80 cruise ship calls, including calls from Celebrity, NCL, Carnival, Holland America and Royal Caribbean. In March 2002, Ed Hale submitted a proposal to the Maryland Transportation Authority (MdTA) under their Private/Public Partnership Program for a cruise terminal development at Canton Crossing. The Canton Crossing proposal shows an estimated cost of $41 million. With regard to the proposal, the MPA and a cruise expert retained by the MPA believe that - by cruise industry expectations - the pier in the Canton Crossing is too small, and that, with an adequate pier, the cost of this proposal is likely closer to $60 to $65 million. Dredging the various quantities proposed or discussed potentially accelerates the planned closure date of 2009 for Baltimore Harbor’s major dredged material placement facility at Hart-Miller Island. Finding future placement capacity for harbor sediments is already a major challenge to the State and the U.S. Army Corps of Engineers. о Should design choices for a cruise ship terminal project limit the amount of dredged material to not more than 150,000 cubic yards, MPA believes that placement capacity would be available without deferring maintenance dredging, or planned new work projects. о Amounts higher than 150,000 cubic yards would require careful assessment, as that volume (and its timing) may impact the timing of other dredging priorities for public and private Port facilities. о Based on alternatives identified in the Canton Crossing proposal (subsequent information provided in an August 27. 2002 letter from the engineering firm of Whitney, Bailey, Cox & Magnani, LLC), the required dredging volumes seem to range from 27 1 ,000 cubic yards to 440,000 cubic yards. The actual number would depend on several choices including a single berth or double berth pier configuration, and the location and size (1200’ - 1500’ diameter) of an enlarged turning basin. The financing of the Canton Crossing terminal proposal is based on a sustained business level of 80 cruises per year. The cruise market has shifted rapidly in the past, and unexpected world events can have a dramatic impact on the travel industry. The 80 cruises required by the Canton Crossing Financial Analysis is nearly twice the highest level ever achieved in Baltimore. While MPA frilly expects 80 cruises in 2004, this may be a very speculative basis for a sustainable business plan. Cruise lines have not shown any willingness to make the long-term commitments needed to support the expensive new infrastructure proposed for Canton Crossing. The original proposal did not include any discussion of operating costs and revenues, except to affirm that the State would be responsible for all operations and maintenance.