San Juan Cruise Port (SJCP) has recently taken over operations in Puerto Rico and is embarking on a multimillion-dollar plan to repair, rebuild, and upgrade infrastructure in line with its agreement with the Puerto Rico Ports Authority. This project is attracting significant private capital into Puerto Rico’s cruise industry, with long-term investment grade (BBB-) bonds issued on the US municipal bond market and through North American institutional investors.
Under the 30-year concession agreement, SJCP will pay an upfront concession fee of $77 million to the ports authority. Additionally, SJCP will invest approximately $100 million during the initial phase of the project, with a focus on critical infrastructure repairs and upgrades to the terminal buildings. This investment will also be used to modernize the port experience for passengers, cruise lines, and local vendors, incorporating GPH’s global expertise and operating model to enhance operations, safety, and security.
The second phase of the project will commence once cruise passenger volumes recover to pre-pandemic levels. In this phase, SJCP plans to invest around $250 million to expand the capacity of San Juan Cruise Port by building a new pier and homeport terminal capable of accommodating the world’s largest cruise ships.
San Juan is a strategically important port for Global Ports Holding (GPH), as it represents a key component of their Caribbean ambitions. The port welcomed 1.8 million unique passengers in 2019 and is the third largest cruise port in GPH’s global network. The goal is to bring the iconic San Juan Cruise Port to its rightful, pre-eminent position in the Caribbean cruise industry, benefiting the local community and Puerto Rico as a whole.
The San Juan Cruise Port team, including GM Federico González-Denton, has already established a command center in Old San Juan, employing 90% Puerto Rican personnel. The transition has been smooth, thanks to the collaboration between SJCP, the government of Puerto Rico, and the Puerto Rico Ports Authority.
With this ambitious plan, San Juan Cruise Port aims to create opportunities for local businesses, stimulate tourism, and contribute to the growth of the Caribbean cruise industry, all while ensuring a world-class port experience for passengers and cruise lines alike. It is a testament to the potential of private sector involvement in infrastructure development and the bright future of Puerto Rico’s cruise industry.
