Global Ports Holding signs 30-year concession agreement for San Juan Cruise Port, Puerto Rico
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, according to the company's release.
This agreement marks a significant development in GPH's strategic plans for the Caribbean. On completion, San Juan Cruise Port, which handled 1.8m unique passengers in 2019 (including c. 0.4m homeport passengers, i.e. 2.2m passenger movements), will become the third-largest cruise port in GPH’s global network.
Under the concession agreement terms, GPH will pay an upfront concession fee of $75m to the Puerto Rico Ports Authority. During an initial investment phase, GPH will spend approximately $100m, 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 $250m 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.
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.
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.
