The Marine Department will oversee development of the terminal, which will meet growing demand from cruise operators, a senior official said on Thursday.
Wannachai Butrthongdee, director of the department’s Engineering Division, said the cruise ship terminal will be built under a public-private partnership (PPP) project worth 7.4 billion baht.
The private contract winner will be handed a 30-year concession to operate the Pattaya cruise port, which will be built off the popular Bali Hai Pier.
The pier currently serves tourists taking boats to the popular island of Koh Lan just off Pattaya.
The number of cruise ship passengers this year is estimated at 31.5 million worldwide and is expected to grow to 36 million next year.
Wannachai added that Asia remains the most popular destination for cruises, with Thailand the third most popular Asian destination among cruise ships.
A Marine Department survey has identified a 1-kilometre site around Bali Hai Pier with potential to be developed into a modern cruise ship terminal. The new terminal will have capacity for two large cruise ships to dock at the same time.
Wannachai said that Thailand receives about 500 cruise ships each year, but the lack of a special terminal means passengers must take small boats to travel ashore.
He said the department also sees potential to build cruise ship terminals in Koh Samui, Surat Thani, and Krabi.
Currently, cruise ships can dock at Bangkok Port and Laem Chabang Port, but both are commercial shipping ports and thus lack facilities for passengers.
Wannachai said the department would submit its Pattaya terminal proposal to the Transport Ministry, State Enterprise Policy Office, and Cabinet this year.
After cabinet approval, the department will draft a PPP contract next year and call for bids in 2025. Construction is due to begin in 2026 and be completed in 2029.
The budget of 7.412 billion will be divided into 5.934 billion baht for construction and 1.478 billion for operation and maintenance costs.
Wannachai said the government will invest 5.534 billion to expropriate the land and construct docking facilities, a passenger building, docking bridge and car park.
The private bid winner will invest 1.877 billion baht for operation and maintenance, including installing power and water supplies and purchasing equipment to operate the terminal.
The investment yield rate will be 20% with investment recouped within an estimated 10 years.
The project is already drawing interest from firms in Hong Kong and Singapore that specialise in marine and tourism operations, Wannachai said.
The terminal’s double docking fronts, each stretching 420 metres, will allow simultaneous docking by large cruise ships.
The passenger building will have capacity for 1,500 home port passengers per hour or 3,500 port-of-call passengers per hour, Wannachai said.