Carnival Corporation has broken ground on what it has described as the “cruise industry's first terminal development project in Japan”.

The cruise giant said the development, which has the backing of the city of Sasebo and the Japanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT), will support the country’s “growing demand for cruise vacations and popularity as a destination”.

Carnival will construct and operate the new terminal, expected to open in summer 2020, as part of a strategic partnership with the city and MLIT.

Under the 20-year agreement, Carnival and its cruise line brands will be granted berthing preference, enabling them to provide guests with “optimized cruise itineraries when visiting the port”.

“As the cruise industry’s first terminal in Japan, this groundbreaking is a historic day for all of us at Carnival and for our partners in this exciting project,” said Costa Group and Carnival Asia chief executive Michael Thamm.

“This new terminal will complement our strong presence in the Asia-Pacific region and furthers our commitment to help facilitate the rising demand for cruise vacations in the region.

“And as our company’s first cruise terminal investment in Japan, we are excited to mark the start of our long-term relationship.”

Thamm said the company was “actively working” on future investment opportunities to help further support growth and expand the Japanese cruise industry.

Japan’s ports have witnessed exceptional growth over the past few years, and cruising continues to increase in popularity in Asia, said Carnival.

Japan is already a destination for seven of Carnival’s brands, including AIDA Cruises, Costa Cruises, Cunard, Holland America Line, P&O Cruises (UK), Princess Cruises and Seabourn.

Overall, Carnival is expecting to accommodate an estimated two million passenger movements in the market in 2019, with nearly 800 calls from 15 ships from its brands to over 50 ports in Japan.