GPH-Global Ports Holding Plc. announced it had signed a 30-year concession agreement with the Puerto Rico Ports Authority for Puerto Rico's San Juan Cruise Port, after a competitive procurement process that was managed by the Puerto Rico Public-Private Partnership Authority.
The agreement marks a significant development in the strategic plans of Global Ports Holding for the Caribbean. On completion, the Port, which handled ~1.8 million unique passengers back in 2019 (including ~0.4 million homeport passengers, i.e. ~2.2 million passenger movements), will become the 3rd-largest cruise port in the global network of GPH.
Under the concession agreement terms, Global Ports Holding will pay an upfront concession fee of US$75 million to the Puerto Rico Ports Authority, and during an initial investment phase, it will spend ~US$100 million, primarily focused on critical infrastructure repairs at Piers 1 & 4 and Pan American Piers, and upgrades of the walkway and the terminal buildings.
The second investment phase will start subject to pre-agreed criteria, including cruise passenger volumes recovering to pre-COVID levels. In this phase, Global Ports Holding will invest an estimated US$250 million in expanding the capacity of the cruise port by constructing a new cruise pier and homeport terminal capable of handling the largest cruise ships in the world at Piers 11 & 12.
San Juan Cruise Port is a major Caribbean port, strategically positioned to be included in both Eastern and Southern Caribbean itineraries (leaving roundtrip from homeports in the USA) as well as a homeport/departure port. It offers passengers world-class attractions and cultural experiences that can be done by just walking across the piers.