The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Nassau cruise port bidder yesterday pledged it will create 1,050 full-time jobs through Bahamian business spin-offs and a proposal that is 60 percent local owned.

Cruise Ports International (CPI), the Bahamian investor group formerly known as Cultural Village (Bahamas), says its $130m Prince George Wharf overhaul will be majority Bahamian-owned despite its alliance with four of the major cruise lines.

The Cruise Lines Group, featuring Carnival, RoyalCaribbean, Norwegian Cruise Line (NCL) and Disney, will have minority equity ownership, according to a statement, which said the alliance would focus on infrastructure improvements to the port and partnering with Bahamian businesses offering new attractions/tours to passengers.

In what some observers will likely interpret as a shot across the bows of the rival Global Ports Holding offer, Cruise Ports International said it will “not build any elements on Prince George Dock” that would compete directly with downtown and other local businesses - a likely reference to its competitor’s plan to build a harbourfront park and entertainment amphitheatre.

While it provided no economic impact assessment to back-up its assertion, Cruise Ports International said the growth in tours generated by more passengers leaving their ships when in port would generate 1,050 full-time jobs among the Bahamian businesses involved.

It added that RoyalFidelity Merchant Bank & Trust would facilitate the sale of shares to Bahamian investors if its bid was successful, although it was unclear if this would take local ownership to 60 percent or be in addition to it.

Gerald Strachan, the ex-Family Guardian president who is now Cruise Ports International’s president, revealed that ITM Group, operator of Mexico’s Costa Maya cruise port, would operate Prince George Wharf for the group with a promise to “Bahamianise” the management “as rapidly as possible”.

Explaining the decision to partner with the cruise lines, Mr Strachan said: “There was no way for us to know what new piers are needed, what passenger experiences need to be addressed, and the likely rate of growth of the cruise business without talking to the cruise lines.

“In talking to them, we discovered that we complemented each other and that a partnership would be quite natural. Our big strength at CPI is that we will bring Bahamian history, heritage and culture to the forefront of all our offerings, and will get more Bahamian people directly involved in benefiting from the cruise business.

“And the big strength of the cruise lines is their knowledge of how to construct ports to ensure the best logistics for the movement and enjoyment of the destination by their passengers.”

Mr Strachan said ITM Group had been selected as port operator because of its Caribbean experience and track record in “making Costa Maya one of the highest grossing ports in the” region.

It is also aiming to hire Moffatt & Nichol, a maritime planning and engineering company specialising in cruise destination infrastructure and terminal facilities, which will work with Jason Lorandos, winner of the new Central Bank design, as the Bahamian architect.

CPI said Mofatt & Nichol’s cruise and maritime project experience in The Bahamas includes the marina at Atlantis, Hurricane Hole, Ocean Club, Arawak Cay, Baker’s Bay, Castaway Cay, Coco Cay, the British Colonial Hilton, Baha Mar, Royal Island, Andros Island, Rose Island, Our Lucaya and Emerald Bay.

“What we have done is built a partnership where all parties involved offer invaluable insight in steering our proposed design,” said Mr Strachan. “There is no attempt for the new port to intrude into the economy beyond its proper function.

“So you will see that we are not going to build any elements on Prince George Dock that would compete directly with businesses beyond the dock. And there is no attempt to propose improvements to areas of the port which fall outside the parameters of the Government’s request for proposals.

“Any company getting a 25-year concession from the Government should not be allowed to trap cruise passenger spending on the dock. We see our role as that of facilitating the movement of passengers in and out of the dock to enjoy experiences in the wider community, and to assist in the guidance and development of those experiences.”

CPI said it will also establish a Cruise Port National Development Fund, which would contribute a minimum of $1m annually to initiatives in education, healthcare, environmental sustainability and small business development.

“We are making sure that our port will be both majority owned and majority managed by Bahamians,” added Mr Strachan. “Four members of the seven-member Board of the operating company, including the chairman, will be named by CPI.

“Our partners also understand that we must act in our country’s best interest. So for this reason, ITM has already pledged to Bahamianise their local management team after the fashion of Nassau Airport Development and as rapidly as possible.”

Mr Strachan said the alliance with the cruise ships, known as The Port of Nassau Partnership, would tackle the cruise ship industry’s growth and the need for new pier spaces.

“Up to now, very few visitors and very few Bahamians are aware of the historical significance of places such as Olive’s Guest House, the Rinehart Hotel, Wesley Methodist Church and Meeting Street to such luminaries of Dr Martin Luther King, Nelson Mandela and James Weldon Johnson or, indeed, that the first overseas foray of the nascent United States navy was to the very Port of Nassau. We want these visitors to be able to experience our history,” said Mr Strachan added.

“Research has shown that with the high frequency of repeat cruise passengers to Nassau, many visitors require the introduction of new experiences over and above those available on their previous visits.”

To meet these needs, CPI said it was working with Bahamian entrepreneurs to provide Bahamian tours, including several “Over the Hill”. “We concluded a long time ago that if tourism is the only business in which all of the people are involved, we need to have as many of our people as possible owning the tourism industry. We want to turn our tourism stakeholders into shareholders,” said Mr Strachan.

“We seek increased economic vibrancy for all Bahamians—from downtown and Over the Hill to suppliers of goods and services throughout The Bahamas.”

Besides Mr Strachan, CPI also includes former Central Bank of The Bahamas governor, Julian Francis; Craig Tony Gomez, the Baker Tilly Gomez accountant and principal; and Robert Pantry, former director or retail banking at Scotiabank (Bahamas). Ex-tourism minister, Vincent Vanderpool-Wallace, is an adviser to the group.