Item No. 10a_supp
Meeting Date: May 26, 2026

Authorization to Execute Norwegian
Cruise Line Lease Amendment
5/1/2026

1

The Port's Tools for Transformation
PORT OF
SEATTLE

Leases,
Agreements,
Tariffs

Incentives &
Recognition

Direct
Investment

Emissions
Accounting,
Reporting

Community
Engagement

MARITIME INDUSTRY
Innovation

POLICY & REGULATIONS
International • National • State

Partnerships

Direct Investment

Advocacy

Partnerships

2

Business Agreement Definitions

• Tariff: Terminal Tariff No. 5

- Port rates, charges, rules and regulations governing dockage, passenger fees and
other port directed fees.

• Preferential Berthing Agreement:

- Multi year agreements
- Preferential berthing rights in exchange for Minimum Annual Guarantee
- Ability to add other stipulations and reporting requirements.

• Lease:

- Can include unique terms, including upkeep of the property and equipment.
- Preferential Berthing rights and a minimum Annual Guarantee.

3

Long Term Agreements Strategy
• Use Long term Agreements to:
- Partner on path to Zero Carbon Emissions
- Support broadening economic impact
- Incorporate Economic Development & Community Priorities
elements into agreements
- Establish goals toward broader environment issues such as
Underwater Noise, Water Quality, etc.
- Set the stage for post-2030 Long-Term Agreement Negotiations
toward 2050 goals; giving time for innovations to evolve
- Provide financial certainty: important to support investments
4

Norwegian Lease Addendum Benefits Summary

• Strong financial certainty and economic predictability
- $15m contribution to Pier 66 Shore Power project

• Requirements to support shore power order
- Commitment to 100 percent shore power capable vessels by 2027
• Additional GHG commitments
- Non-Fossil Fuel Pilot Program by 2028
- Commitment to share decarbonization pathways
• Real-time data to support transparency and emissions accounting
• Support for anti-human trafficking programs
• Terms aligned with projected timeline for industry transformation

5

2026 Addendum Terms
• Current Lease is 15y - through 2030, plus one 5-year option
• Immediate extension of 5y option in lease - through 2035 (2-years past
recent Carnival Agreement)
• 2x 5-year option to extend 2035-2045: Mutual: Port's discretion
• $15m contribution to P66 shore power
- Funded via rebate from annual Marketing Fund, which then sunsets

• Minimum Annual Guarantee of 325,000 revenue passengers/year
• Passenger/Dockage fee of with a capped increase; reset to 90% of Tariff at 5
years beginning 2030

6

Financial Return to the Port
• Estimated $194.4M in revenue to the Port over the 10-year life
of the agreement. Guaranteed revenue is $116M
• Estimated $516M in revenue to the Port if both 5-year options
are exercised. Guaranteed revenue is $316M
• Both of the 5-year options are at the Port's discretion
- Agreement is explicit that Sustainability and GHG performance will be
a key consideration.

7

Greenhouse Gas Emission Reductions
• Shore power
- 100 percent of Norwegian
vessels, will plug in by 2027
- NCL Bliss, Encore and Joy, and
Oceania Riviera are currently
shore power equipped and are
connecting to shore power.
• Annual participation in Port
Emissions Inventory, commitment
to well to wake accounting
• Providing Data regarding Fuel Use

8

More Greenhouse Gas Emissions Reductions
• Pilot non-fossil fuel by the end of the 2028 cruise season
• Striving to reduce GHG intensity by 25% by 2030, from a
2019 baseline, and strive to reduce total GHG emissions
across its global fleet overt this same period
• Commitment to developing potential
decarbonization pathways and providing to the Port

9

Environmental Elements Continued
• Continued participation in
Ecology MOU
• Continued Implementation of
Stormwater BMP's
• Continued participation in Quiet
Sound
• Incentivize use of low-emission
shoreside equipment

10

Broadening Economic Benefit
• Expand responsible sourcing
opportunities to promote a variety of
underrepresented groups toward
increasing Economic impact for Small,
WMBE and Tribal businesses
• Participate in community initiatives
through in-kind and/or cash donations
with local partners mutually agreed
upon. Focus should aim to support
low-income and/or minority
communities in the local area

11

Reporting: Supporting Dashboard
• By-call and/or Annual reporting of:
•
•
•
•
•
•

Shore power capability,
Shore power connection details,
Exhaust Gas Cleaning System,
Fuel type,
Quiet Sound participation,
Emission reduction technology/innovations
by vessel,
• Provisions sourcing via local, small, diverse,
WMBE, disadvantaged businesses,
• Disaggregated org. demographics by
hierarchy, shipboard and land based,
• Other items as mutually agreed

12

Century Agenda Goals
Goal 3: Responsibly Invest
in the Economic Growth
of the Region and all its
Communities

Goal 4: Be the greenest
and most energy-efficient
port in North America

Goal 5: Become a Model
for Equity, Diversity and
Inclusion

Goal 6: Be a Highly
Effective Public Agency

13

Today's Requested Action
• Request for Authorization for the Executive Director to execute
documents for Amendment and Assignment of the current
Lease, as outlined, with Norwegian Cruise Line Holdings Ltd,
and assignment to NCL (Bahamas) Ltd, Oceania Cruises Ltd,
and Seven Seas Cruises Ltd.

14

Questions?

15