TWC Enterprises Limited and Carnival Corporation & plc recently announced that the White Pass & Yukon Route Railroad is soon to change hands from the former to the latter.
A TWC press release stated it has entered into a purchase and sale agreement to sell the White Pass rail, merchandise and port operations to Carnival for proceeds of $290,000,000 (with debt, taxes and liabilities estimated at $70-$80 million to be deducted from that number). The deal is set to close on July 31, 2018.
In addition to the Carnival Cruise Line, Carnival Corp. operates the Holland America Line, Princess Cruises and Seabourn in the Alaska theatre, and several more cruise lines around the globe.
Carnival Corp.’s press release on the impending acquisition stated it plans to continue using Survey Point Inc. – subsidiaries of which include Cruise Lines Agencies of Alaska and Southeast Stevedoring – to manage White Pass’ day-to-day terminal operation and the customer-relations aspect of the business. Holland America Princess Alaska Tours – another part of Carnival Corp. – has executed a memorandum of understanding (MOU) with Survey Point, making Survey Point the managing partner of the port, the railroad and associated retail operations that Carnival plans to acquire from TWC.
“As part of the new MOU and joint venture, the partners plan to make investments in the business, which will enable continued economic development and job growth in Skagway and the surrounding region, making a positive impact on the local economy and further benefitting the Alaska tourism industry,” the Carnival Corp. release states. “These investments will include support for expansion of docking facilities to accommodate the newest generation of cruise ships, a key to the port’s long-term success. ”
The Carnival Corp. release states that Survey Point and its subsidiaries have been “actively engaged in Skagway operations for over 40 years and will continue to enhance Skagway as a thriving cruise and shore excursion destination, and foster collaborative working relationships with the community and cruise lines that call there.”
“As the gateway to the legendary Klondike Gold Rush region, Skagway is beloved by our guests and crew for its warm hospitality and distinctively Alaskan array of sightseeing and recreational activities,” Stein Kruse, group CEO of Carnival Corporation & plc’s Holland America Group and Carnival UK, said in the release. “We are delighted that the Skagway port will continue to be locally owned and independently operated by an Alaskan company. Along with Survey Point, we have a long and valued history in Alaska, and remain very committed to the continued development and success of the entire region as one our most popular destinations.”