San Juan Cruise Port begins operations, GPH outlines strategy

Long-term investment grade (BBB-) bonds were issued through the U.S. municipal bond market and North American institutional investors. Together with the capital invested by GPH, this project is mobilizing significant private capital into Puerto Rico’s cruise industry.

San Juan Cruise Port (SJCP) now plans to take over operations and begin a multi-million dollar plan to repair, rebuild and upgrade its infrastructure in line with a PPP agreement with the Puerto Rico Ports Authority.

Commission fee and initial investment

Under the terms of the 30-year concession agreement, SJCP will pay the Port Authority an upfront concession of $77 million. During the initial investment phase, SJCP will invest approximately $100 million, primarily focused on renovating critical infrastructure at Pier 4 and Pan American Pier, as well as renovating the terminal building and walkway in front of the Old San Juan Pier.

Additionally, investing involves the use of transaction costs, reserve accounts, and other ancillary income.

Implementing the GPH operating model

As part of this initial investment, SCJP will also work to modernize the port experience for passengers, cruise lines and local vendors, leveraging GPH’s global expertise and operating model to improve operations. This includes investing in systems, equipment and technology to improve operational performance and ensure environmental protection, safety and security, GPH said.

GPH and SJCP will ensure that this port is integrated into Old San Juan and Puerto Rico’s thriving tourism sector, creating opportunities for local businesses to directly benefit from improved facilities and anticipated increased passenger numbers. We are aiming for

New pier and terminal in the second phase

The second investment phase will begin according to pre-agreed criteria, including the return of cruise passenger numbers to pre-pandemic levels. During this phase, SJCP will invest an estimated $250 million to expand the capacity of the San Juan Cruise Port by building new piers and homeport terminals at Piers 11 and 12 capable of hosting the world’s largest cruise ships. It’s a schedule.

This second phase of financing is also expected to come from the U.S. municipal bond market and North American-based financial institutions.

strategically important

San Juan is an important location for GPH’s Caribbean ambitions.

In 2019, the port hosted 1.8 million unique passengers, including approximately 400,000 home port passengers, which equates to 2.2 million passenger movements. She is the third largest cruise port in GPH’s worldwide network.

Mehmet Kutman, Chairman and CEO of GPH, said: “San Juan is not only a great destination, but also a strategically important port that will serve the Eastern and Southern Caribbean Sea for decades to come. It is perfectly positioned to play a vital role in maritime itineraries.”

To benefit Puerto Ricans

“…everyone at GPH looks forward to realizing our plan to elevate the iconic San Juan Cruise Port to its rightful and prominent position in the Caribbean cruise industry for the benefit of all Puerto Ricans.” I am.”

Mike Maura Jr., GPH Americas Regional Director, thanked the Government of Puerto Rico and the Puerto Rico Port Authority for their support throughout the negotiation process and said, “We look forward to providing a world-class cruise port that will benefit many Puerto Ricans.” ” It will take many years to come.

San Juan Cruise Port team including GM Federico González Denton (second from right)

SJCP GM Federico González Denton said a command center has been established in Old San Juan and a workforce of 90% Puerto Ricans has been hired.

“Additionally, we have recruited top talent from the PRPA Maritime Bureau to ensure a smooth transition as we take over management of the port.”