Port operator ABP Southampton said the project was critical to ensure Southampton retains its title as Europe's leading cruise turnaround port.
An increased number of cruise ships visiting Southampton, coupled with the rising capacity of new ships, means P&O Cruises, Cunard, and other lines are expecting passenger volume to increase by 25% at Southampton over the next two years.
The terminal is one of four in Southampton, and handles calls by ships such as Queen Mary 2, Ventura and newly-launched Britannia.
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