Global Ports Holding signs 30-year concession agreement for San Juan Cruise Port

Global Ports Holding Plc (GPH), the world's largest independent cruise port operator, has signed a 30-year concession agreement with the Puerto Rico Ports Authority for San Cruise Port, Puerto Rico, following a competitive procurement process managed by the Puerto Rico Public-Private Partnership Authority.

The announcement was made locally by Puerto Rico Governor Pedro Pierluisi in a well-attended ceremony and press conference featuring other government of Puerto Rico officials, high-ranking GPH executives, Island private sector representatives and tourism and cruise industry stakeholders, including senior representatives from cruise lines.

This agreement marks a significant development in GPH's strategic plans for the Caribbean. On completion, San Juan Cruise Port, which handled 1.8 million unique passengers in 2019 (including c. 0.4 million homeport passengers, i.e. 2.2 million passenger movements), will become the third-largest cruise port in GPH’s global network.

San Juan Cruise Port is a strategically important port in the Caribbean cruise market, perfectly positioned to be included in both Eastern Caribbean and Southern Caribbean itineraries. It offers cruise passengers world-class attractions and rich cultural experiences that can easily be done by walking across the piers. There is a magical blend of natural island charm that includes the verdant peaks, tropical forests, gleaming white-sand beaches, and man-made wonders. In addition, to its airport and hotel infrastructure, Puerto Rico is a US territory, which means it is an attractive homeport destination for Eastern & Southern Caribbean itineraries.

Port investment

San Juan Cruise Port is currently a popular transit port and homeport. However, its cruise port infrastructure needs significant investment to ensure continued operations over the term of the concession and to meet the needs of the modern and fast-growing cruise industry.

Under the concession agreement terms, GPH will pay an upfront concession fee of $75 million to the Puerto Rico Ports Authority. During an initial investment phase, GPH will spend approximately $100 million, primarily focused on critical infrastructure repairs at Piers 1 and 4 and Pan American Piers, and upgrades of the terminal buildings and the walkway.

The second investment phase will commence subject to certain pre-agreed criteria, including cruise passenger volumes recovering to pre-pandemic levels. In this phase, GPH will invest an estimated $250 million in expanding the capacity of the cruise port by building a completely new cruise pier and state-of-the-art homeport terminal capable of handling the world’s largest cruise ships at Piers 11 and 12.

Improved experience

As well as investing in the port’s infrastructure, GPH will invest in modernising the cruise port experience for cruise passengers, cruise lines and local vendors and will use its global expertise and operating model to improve the management of the cruise port operations. GPH will also invest in systems, equipment, and technology to enhance the cruise port’s operational performance and ensure environmental protection, safety, and security.

The management approach of GPH will ensure the port is integrated into Old San Juan and Puerto Rico’s thriving tourism sector as a whole, creating significant opportunities for local businesses to benefit directly from the improved facilities and the expected growth in cruise passenger volumes.

In addition, GPH’s destination marketing team will work with the port management team and local stakeholders to ensure that cruise lines and passengers can enjoy the many unique attractions Puerto Rico offers.

Financing & closure

Subject to the satisfaction of the closing conditions, including financing conditions, the concession’s financial close and commencement of operations are expected to occur by early 2023.

Global Ports Holding Chairman and CEO, Mehmet Kutman, said: "I am delighted that the Government of Puerto Rico has selected GPH for this public-private partnership to improve and expand San Juan Cruise Port. The addition of this fantastic location to our cruise port network marks a further important step in our growth strategy and will grow cruise passenger volumes across our network to over 16 million passengers per annum.

I welcome San Juan Cruise Port into the world’s largest cruise port network. The GPH team looks forward to working in partnership with all stakeholders to refurbish and reinvigorate this leading cruise port to create a world-leading cruise port experience for the benefit of all stakeholders.

Our work to transform this port will see hundreds of millions of US dollars invested into San Juan Cruise Port, all financed by private capital. Our plans include building a new cruise pier, a state-of-the-art cruise terminal, and significant enhancements to the public infrastructure.”

Cruise the Saint Lawrence announces changes in its board

Cruise the Saint Lawrence announced yesterday changes of the organization’s board of directors agreed at the annual general meeting held 10 June 2022. The officers each appointed to a term of two years include as follows: Yves Gilson, Director, Marketing & Cruises at Port of Montréal, who was elected President; Priscilla Nemey, Director General of Promotion Saguenay, who was elected Treasurer; and, Odessa Thériault, Director General of Port of Havre-Saint-Pierre, who was elected Secretary. Two additional directors, namely Nancy Houley, Director, Cruise Development with Port of Québec, and Suzanne Cassista, Executive Director with Destination Sept-Îles Nakauinanu, round out the five-member body.

As international cruises return to Destination Saint Lawrence ports of call this year, the new board has chosen to pursue the development thrusts instituted by their predecessors, move forward with action to transform the Saint Lawrence into a sustainable destination, and spur the promotion of local initiatives intended to guarantee passengers a shoreside welcome second to none.

Cruise the Saint Lawrence groups together the nine ports of call located along the shores of the Saint Lawrence River. The mission of the organization is to grow cruise market activities in Québec and across Destination Canada New England through the provision of marketing and development services to members. Cruise the Saint Lawrence enjoys the support of partners Tourism Québec, Québec Tourism Industry Alliance and Canada Economic Development.

Port of Tarragona welcomes largest cruise ship to date

On Sunday July 17 at 7 am the MSC Bellíssima of MSC Cruises docked at the new Baleares Wharf in the Port of Tarragona. With a length of 315 metres, gross tons of 171,589 and a capacity for 5,686 passengers, it is the largest cruise ship ever to call at the Port of Tarragona.

Representatives of the Tarragona Port Authority led by Núria Obiols, Director of Port Operations, presented a commemorative metope of this first arrival in Port Tarragona waters to the ship’s captain, Roberto Leotta, and his crew. The event was also attended by Alba Colet from Global Ports Holding, Montse Royo from Bergé Marítima, Eugenia Mendoza from Lantimar, and representatives of MSC.

The vessel’s call in Tarragona involved the embarkation and partial disembarkation of approximately 408 passengers and 433 passengers respectively and lasted for just over 13 hours, from 7 am to 8 pm, when the Bellíssima set sail from the Balears Wharf.

This was the first of the nine calls the cruise company will make in Tarragona this year. Eight more stopovers are planned for 2022, plus the call by the cruise liner MSC Magnifica, which was already scheduled for November 11.

The MSC Bellíssima arrived in Tarragona from Valencia. From here it set sail for Genoa, from where it was to continue to the Italian ports of Livorno and Naples. The vessel will call at Tarragona on Sundays 31 July, 21 August, 4 and 25 September, and 9, 16 and 23 October.

Alaska Railroad marks major milestone for Seward passenger dock replacement

The Alaska Railroad Corporation (ARRC) now has the authority to sell up to $60 million in bonds to fund upgrades to its cruise passenger dock and terminal facility in Seward after Gov. Mike Dunleavy signed House Bill 127 into law earlier this month.

The milestone allows ARRC to move forward with an investment of more than $80 million for the dock and cruise terminal facility. Bank of America Securities, Inc., was also identified as the underwriter for issuing the bonds. Their team visited Seward this week with ARRC to get acquainted with the project and move forward with next steps in the underwriting process.

The construction timeline calls for the new passenger terminal to be operational for the 2025 season. The upgrades are needed as Seward provides a critical connection to thousands of cruise passengers who arrive in Alaska each summer and then go on to travel throughout the state, bringing tourism dollars to Alaska businesses.

“We appreciate the governor’s strong support for the railroad and our ability to finance critical Alaska infrastructure,” said ARRC President and CEO Bill O’Leary. “Seward has been an essential gateway for the Alaska Railroad for decades. Replacing the dock and enhancing our passenger terminal will ensure this important connection remains intact for all Railbelt communities for many more decades to come. We are on the cusp of celebrating the Railroad’s centennial, 100 years as a critical transportation link. It is fitting to mark the occasion by starting a project that will offer profound benefit to communities all along our rails.”

Because ARRC has its own bonding powers, none of the project costs will be paid by state dollars. ARRC plans to issue bonds totaling $60 million and the remaining costs will be paid through existing dock fees and capital funds.

ARRC already has interest in the dock upgrades from Royal Caribbean Group as the two are in negotiations for a multi-year berthing agreement that features an annual revenue guarantee.

“Our cruise brands have enjoyed operating out of Seward for more than 20 years and with this investment, our guests will continue building memories that last a lifetime,” said Wendy Lindskoog, Royal Caribbean Group’s regional vice president of government relations for Alaska and the West Coast. “Our aligned vision to support this new dock with the governor, legislators and ARRC means long-term economic benefit to the region and the ability for Royal Caribbean Group to bring our newer, more energy-efficient ships to the market.”

“We are thankful for the strong return of the cruise ship industry after a two-year hiatus,” said Seward City Manager Janette Bower. “We appreciate the support from Gov. Dunleavy, Senate President Peter Micciche (R), House Transportation Committee Chair Rep. Grier Hopkins (D) and Rep. Bart LeBon (R), allowing the Alaska Railroad to move forward with this valuable project and the economic benefit it provides through cruise ship tourism dollars for our local businesses, including commercial passenger vessel funds for both the city and borough, the marine industry in Seward and throughout the state.”

The ARRC also has a project in the works expanding the freight dock and corridor improvements in Seward. In total, the ARRC is on track to invest more than $100 million in the community of Seward over the next five years.

Largest cruise ship ever calls at Kalundborg

Kalundborg Cruise Port, operated by Global Ports Holding, the world’s largest cruise port operator, welcomed the biggest cruise ship to ever call Kalundborg as well as its first call for the 2022 season with AIDA Cruises.

AIDAnova, operated by AIDA Cruises arrived in Kalundborg Cruise Port with 3900 passengers and 1200 crew for its transit call. The passengers who disembarked visited the city of Kalundborg with shuttles from the port and went on to their excursions in Copenhagen.

With the attendance of Martin Damm, Mayor of Kalundborg municipality and Bent Rasmusse, Port Director of Kalundborg Port, the GPH operations team welcomed AIDAnova’s Captain Jens Janauscheck, for the official ceremony of plaques & key exchange.

Javier Rodriguez Sanchez, GPH Regional Director West Med & Asia commented: “We are delighted to have hosted the largest ship to ever call Kalundborg today. With GPH processes and procedures in place and a strong corporation with the Kalundborg Port Authority, Kalundborg Tourism Authority and all stakeholders, today we have had a successful transit operation, welcoming almost 4000 passengers. We look forward to the rest of the cruise season where we will host more AIDAnova calls and an even more successful seasons to come”.

Kalundborg is one of the few deep waters cruise destinations located on Zealand at the Great Belt and close to the entrance to the Baltic from the North Sea. Offering top class facilities for cruise ships, Kalundborg Cruise Port has a large quay area for cruise ships to operate their shore excursions and tours smoothly. With a complementary shuttle service from the harbor, the passengers can also enjoy a quick 15-minute ride to the town center. Only 100km away from Copenhagen, the cruise port offers a wide range of attractions.