Norwegian Cruise Line's land donation benefits indigenous stakeholders and Alaska community

Huna Totem Corp., an Alaska Native village corporation, accepted a gift of 2.9 acres of undeveloped waterfront property in Juneau from Norwegian Cruise Line Holdings Ltd. The village corporation is actively engaging with other Alaska Native corporations and community stakeholders and has formed Huna Totem Development Group to lead efforts in developing a new pier and related infrastructure. This group, including Goldbelt Inc., the Alaska Native urban corporation representing Juneau, expects to submit plans for a year-round facility by the end of the year.

“Huna Totem views this as a win-win for our Alaska Native shareholders and the Juneau community,” said Russell Dick, CEO of Huna Totem Corp. “As the developer and operator of the world-class cruise port of Icy Strait Point and a Southeast-based company, we bring expertise and a local commitment to our shareholders and our neighbors. Through our design and community partnerships, the waterfront complex will reflect the historic and cultural values of the Alaska Native people.”

Just 35 miles west of Juneau, Huna Totem’s Icy Strait Point port model is recognized as an award-winning global leader for its Indigenous and environmental responsibility. Its success is attributed to incorporating community stakeholders and the corporation is committed to implementing the same model while developing the waterfront parcel in Juneau.

Norwegian and Huna Totem have a longstanding commitment to growth in Alaska. Norwegian began calling on Huna Totem’s privately-owned and operated port of Icy Strait Point in 2013. In 2018, Huna Totem partnered with Norwegian, adding the Wilderness Landing port facility at Icy Strait Point. Earlier this year, Norwegian also committed to Huna Totem’s double berth turn-port in Whittier, Alaska, the gateway to Alaska’s interior.

“Ensuring this Juneau project is fully integrated into the community is incredibly important to us, and as we began planning its development, it became abundantly clear that Huna Totem, owned entirely by Alaska Natives, was the right stakeholder to lead this effort,” said Dan Farkas, executive vice president and general counsel for Norwegian Cruise Line Holdings who oversees corporate construction. “Alaska is an incredibly popular, fast-growing destination, and this partnership will provide the dual benefit of driving positive, sustainable economic impact to the region while also ensuring that the development of the land is done in a way that is respectful and representative of the rich history and culture of this community.”

Huna Totem is working with Goldbelt, Inc. to assist with the development and operations of the waterfront property. Together, the Alaska Native corporations share extensive knowledge in tourism and support a high percentage of their Alaska Native shareholder constituents living in Juneau.

“This is an astonishing gift for Juneau and our Goldbelt shareholders,” said Goldbelt President and CEO McHugh Pierre. “Giving ownership back to the Tlingit people is a tremendous way to honor the culture of this community. We look forward to partnering with Huna Totem to share the values and ancestral history of this land.”

In addition to Goldbelt and Huna Totem, the all-Alaska-based development group includes Jensen Yorba Wall Architects and Alaska Commercial Contractors from Juneau and Turnagain Marine, an Anchorage-based pier developer.

In alignment with Juneau’s 2021 waterfront plan, the development group is ready to submit a site plan to begin the permitting process with the city. Huna Totem and Goldbelt will host a series of public meetings to share their vision and design for the property.

“We look forward to working with local tribal corporations on this significant development for the Juneau community,” said Alexandra Pierce, tourism manager for the City and Borough of Juneau. “CBJ’s permitting process remains the same regardless of ownership and the next step is for Huna Totem to submit a Conditional Use Permit application to be reviewed by the Planning Commission. That process will provide an opportunity for public comment. The community will also have the opportunity to provide public testimony to the Assembly during the tidelands lease process.”

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.

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.

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.