NYC-Homeporting Cruise Lines Commit to Shore Power, Add $1 per Passenger Tax

Carnival Corp., Norwegian Cruise Line Holdings, and MSC Cruises have all agreed to a deadline of 2028 to make all of their NYC-homeporting ships capable of connecting to shore power at both the Manhattan and Brooklyn cruise terminals. The commitment is part of new agreements with the New York City Economic Development Corporation (NYCEDC).

Also part of the agreement is the creation of a community benefit fund to address the concerns and priorities of neighborhoods that are closest to the cruise terminals. The fund will be funded by a $1 per passenger tax that the cruise lines will impose.

The cruise industry is a massive driver in New York City’s economy, generating thousands of good-paying jobs for New Yorkers and helping fuel the tourism and hospitality industry,” said NYCED president and CEO Andrew Kimball. “It is essential to ensure that these large-scale industries remain focused on sustainability and working alongside the community in all aspects, which is exactly what this agreement does.”

Included in the agreement is the provision, that “when feasible,” cruise ships will connect to shore power to reduce emissions. All have committed to ensuring all their ships calling in New York City will be equipped with shore power connections by 2028.

The Brooklyn Cruise Terminal is currently the only port on the East Coast to have shore power. NYCEDC is in the process of securing additional shower power infrastructure at the port to enable more ships to connect.

Also in the agreement is the establishment of a Community Priority Fund, which will be managed by NYCEDC.

“Over the next 10 years, NYCEDC estimates this groundbreaking fund will generate approximately $14 million that will go directly to the Red Hook and Midtown Manhattan communities,” the NYCEDC said in a press release.

The cruise lines have also agreed to more extensive ground transportation planning in order to track and improve the ground transportation and travel experience, to maximize public transportation options, and reduce vehicular traffic.

According to NYCEDC, the cruise industry creates an economic impact of $420 million per year in New York City. NYCEDC anticipates more than 1.3 million passengers swill travel through the Manhattan and Brooklyn cruise terminals this year, a record high.

Term lengths for the new usage agreements range from three to 15 years, with each of the agreements have an option for five-year renewals. The new usage agreements replace the current agreements with each respective cruise line.

The new usage agreements come on the heels of two New York City councilmembers introducing legislation to require all ships to connect to shore power.