Liverpool City Council (LCC) will look to transfer the ownership of the city’s cruise terminal to a private company in the new year as it looks to cut its losses on the hub, which it deemed “unsustainable”.

The Liverpool Cruise Liner Berth was built in 2006 as part of the city’s regeneration project, using a combination of European Regional Development Fund (ERDF) and Northwest Development Agency funding.

Since its inception, the local authority has overseen the growth in the terminal’s business from just three cruise calls in 2007 to 114 calls in 2023. It has been valued at around £20 million.

However, despite what the council described as “healthy” income generated from berthing fees, “increasingly high, uncontrollable costs” have resulted in a net shortfall to the authority of circa £300,000-£700,000 per year which it says it can no longer sustain.

As a result, the council will look to cease its operation of the terminal and transfer the business to the Mersey Docks and Harbour Company (MDHC) at a cabinet meeting next week – subject to approval from senior councillors – in the hope the company will have the resources to strengthen and increase the terminal’s business.

Port forecast to post near £1 million loss next year

According to cabinet papers seen by Cruise Trade News, LCC will delegate authority to the corporate director for city development to negotiate terms with any incoming business with cruise lines, should they wish to continuing docking in Liverpool.

Fred Olsen Cruise Lines, Marella Cruises, P&O Cruises, Princess Cruises and Ambassador Cruise Line all offer cruises from Liverpool, whilst Cunard offers itineraries which include the city as a port of call.

In 2022/2023 the facility made a loss of around £300,000 and a budget monitoring report issued in September 2023 forecasted a loss of £700,000 for 2023/24. It is not thought jobs at the terminal would be impacted by the transfer, with the council able to redeploy staff elsewhere.

It comes after plans for a new cruise terminal in Hull and the regeneration of the surrounding area were given the go-ahead by local councillors.