Global Ports Holdings is set to operate Liverpool Cruise Port for the next 50 years under a deal agreed with Peel Ports Group subsidiary, The Mersey Docks and Harbour Company.

Global Ports, which expects to take over operations this month, said it plans to invest up to £25m ($31.6m) in the port’s infrastructure, doubling its operations and unlocking its future potential.

“Liverpool Cruise Port has the potential for significant growth in passenger volumes. However, the port is currently unable to satisfy demand on some days due to berthing and infrastructure restrictions,” Global Ports said.

The investment will include the addition of a new floating pontoon that will increase capacity and allow for the simultaneous berthing of two 300-metre ships and up to 7,000 passengers a day.

It will also see the construction of a new terminal building that will enhance the passenger experience and provide waterfront retail and hospitality offerings that will cater not just to cruise travellers but also to local tourists and residents.

Liverpool welcomed 102 cruise ships and over 186,000 passengers last year and this is expected to increase to over 200,000 passengers in 2024 and exceed 300,000 once the new infrastructure works are completed.

“Liverpool Cruise Port is well positioned to participate in the growing Northern European and British and Irish cruise markets,” said Global Ports.

“It has good airport connectivity, with two international airports within an hour’s drive, providing significant potential to act as a gateway to the Northern European and round Britain cruise markets for American and European passengers, as well as being well-positioned to act as a home port for the domestic passenger market.”

Peel Ports Group said the historic deal was enabled by Liverpool City Council which has officially ended its interest in the cruise operation which it established and has managed, since 2007.

“The decision to hand back the facility was made by the council to ensure the multimillion-pound upgrade of the cruise facility, which, over the last 16 years has welcomed more than 800 vessels and 1m passengers, generating more than £110m to the city’s visitor economy,” Peel Ports Group said.

Liverpool City Council currently employs the Cruise Liverpool team, which has provided successful day-to-day management of the terminal for the past 17 years.

Under a service agreement between the council and Global Ports, some of the existing team members and service providers will continue to support it as it significantly expands operations.

“The addition of the Liverpool Cruise Port, our first cruise port in the British Isles to our network, marks another important milestone in [Global Ports]’ ongoing development and growth,” said Global Ports chief executive Mehmet Kutman.

David Huck, chief operating officer at Peel Ports Group, said Liverpool City Council’s stewardship of the port over the last two decades has transformed the city into a thriving cruise tourism destination.

“We see this new chapter as an opportunity for us to build upon that legacy and, along with the investments and regeneration plans that are in place with Liverpool Waters, hope to drive the city’s potential even further,” he added.

Andrew Lewis, chief executive of Liverpool City Council, said: “Responsibility for Liverpool’s cruise operations now passes to a world-leading operator, with ambitious plans to grow Liverpool’s position as an excellent cruise and tourism destination.”