After reaching an settlement in 2022 to handle the San Juan (Puerto Rico) cruise port, World Ports Holding introduced that debt financing for the undertaking has been secured, and upgrades to the power are set to start.
The funding will improve the port’s infrastructure, boosting its operations within the aggressive Caribbean market.
Upgrades to Cruise Piers, Terminals Are Deliberate
World Ports Holding (GPH) has introduced that its subsidiary, San Juan Cruise Port (SJCP), has closed on the debt financing deal that injects $187 million into a number of main infrastructure upgrades. The event implies that the SJCP now formally manages the power.
The issuance of longterm bonds coupled with fairness capital from GPH will finance the primary section of enhancements to the port. The monetary pact is a public-private partnership that features a 30-year concession settlement with the Puerto Rico Ports Authority. Underneath the association, the cruise port can pay a $77 million concession payment to the authority.
One other $100 million will probably be invested into infrastructure upgrades and repairs on the port’s Pier 4 and Pan American Piers, together with enhancements to current terminal buildings.
On the similar time, World Ports Holding will use its administration methods to modernize expertise, tools, and varied techniques in methods that may profit cruise company, cruise strains, and native distributors.
“We’re delighted to welcome San Juan Cruise Port into the world’s largest cruise port community. In addition to being a unbelievable vacation spot, San Juan is a strategically vital port that’s completely positioned to play a pivotal function in Japanese and Southern Caribbean itineraries for many years to come back,” mentioned Mehmet Kutman, chairman and CEO of World Ports Holding.
The chief believes that San Juan has the potential to emerge as a number one cruise port within the area, delivering an financial boon to Puerto Rico and its residents as soon as the enhancements are accomplished.
“The profitable closing of this transaction represents a milestone for our firm and for Puerto Rico. Everybody at GPH is trying ahead to us delivering on our plans to convey the enduring San Juan Cruise Port to its rightful, pre-eminent place within the Caribbean cruise business for the advantage of all Puerto Ricans,” added Kutman.
A second spherical of investments is deliberate after the port meets sure standards, together with a restoration to pre-pandemic cruise arrival ranges. When that occurs, the SJPC will elevate and make investments an extra $250 million to construct new cruise piers and a brand new terminal. The brand new docks — Piers 11 and 12 — will be capable of accommodate the world’s largest cruise ships.
Large Progress for the Port of San Juan
In pre-pandemic 2019, San Juan acquired 1.8 million cruise company, a quantity that may have made it the third-largest port within the GPH community. Like different cruise locations, arrivals plummeted through the pandemic pause and haven’t but absolutely recovered. Nevertheless, the winter 2024 season is poised for sturdy arrivals.
Learn Additionally: The Most IDEAL San Juan Cruise Excursions
The 2024 winter season, which runs from November 2023 to April 2024, will see ships from 19 cruise strains calling at San Juan. These embody Carnival Cruise Line, Movie star Cruises, Norwegian Cruise Line, Princess Cruises, Holland America, Royal Caribbean Cruise Line, Virgin Voyages, Ritz-Carlton, and MSC Cruises. The port anticipates 264 ship calls in whole, for the excessive season.
World Ports Holding has skilled substantial development lately, and has targeted on increasing its footprint in North America and the Caribbean, the place the administration firm has contracts with Nassau, Antigua, and St. Lucia.
Its administration agreements usually embody a variety of enhancements and redevelopments of current port infrastructure.
In Nassau, a $300 million funding in berth services and cruise visitor providers was unveiled in Could 2023. With the upgrades, the port can accommodate three Oasis-class ships on the similar time and a complete of six ships docking on the identical day.
Its most up-to-date settlement within the Caribbean got here in 2023, with a 30-year concession contract for St. Lucia’s Pointe Seraphine Cruise Port. World Ports Holding has a powerful foothold in Europe as nicely, with contracts to handle main cruise ports akin to Barcelona, Lisbon, and Venice.
