The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Grand Bahama Port Authority’s (GBPA) president yesterday said October is being targeted for completion of a $70m Freeport Harbour deal in which Mediterranean Shipping Company (MSC) has teamed with Royal Caribbean.

Ian Rolle, addressing the Bahamas Hotel and Tourism Association (BHTA) in his capacity as Grand Bahama Island Tourism Board chair, confirmed that the two cruise giants have partnered with ITM Group as long-running negotiations over the project with Freeport Harbour Company seemingly near a conclusion.

“They are looking to redevelop the existing harbour,” he confirmed. “At first, ITM and Royal Caribbean were the only ones involved in this process. MSC has now come along and joined them in this partnership and we intend for this deal to be closed by October this year.”

MSC, which has already developed its own private island destination in The Bahamas near Bimini, thus appears to be seeking another port of call where it has some level of financial interest. Royal Caribbean and ITM have now been negotiating the deal’s terms with the Freeport Harbour Company, which is 50/50 owned by Hutchison Whampoa and the GBPA’s Port Group Ltd affiliate, for several years. Hutchison has Board and management control.

Tribune Business previously revealed that MSC, which is thought to be considered by the Davis administration as a potential candidate to acquire the GBPA and its assets, and buy out the Hayward and St George families, had teamed with Royal Caribbean and ITM on the Freeport Harbour deal.

Michael Bayley, Royal Caribbean’s president and chief executive, previously told this newspaper that Royal Caribbean was “increasingly optimistic” that its joint venture with ITM Group will finally come to fruition as negotiations - which have already taken several years - continue with Freeport Harbour Company.

“That’s still going through its process,” he told Tribune Business then. “I would say we are increasingly optimistic about the timing of that. In the coming months hopefully we will be in a position to make some positive announcement on Freeport. Our intent is to bring more capacity into Freeport. The first step, which will be in conjunction with others, is investing in improving the port.”

The cruise chief said that investment would involve other parties, especially fellow lines that will use Freeport Harbour’s revived cruise port. Mr Bayley also confirmed that Royal Caribbean/ITM’s plans still call for an expansion in the number of cruise ship berths, and development of a water-based adventure theme park for passengers in close proximity to the harbour.

“That again will be a signal more tourists are coming to Freeport, and that will be an opportunity for investors and entrepreneurs to start creating what we’re seeing in Nassau - new experiences that enhance the value to tourists the cruise industry is bringing to Freeport,” he added.

Mr Rolle, too, told last month’s Grand Bahama Business Outlook conference that Royal Caribbean’s $70m cruise port expansion, and redevelopment of Freeport Harbour in partnership with ITM Group and another party (MSC) who he did not identify then, remains on the table. He added that both Carnival and Royal Caribbean’s Grand Bahama investments are projected to each bring one million cruise visitors per annum to the island once fully operational.

Elsewhere, Mr Rolle yesterday said Grand Bahama was seeing a “gradual improvement” in visitor numbers “especially in hotel occupancies”. Yet it was performing “extremely well” on cruise arrivals with numbers up 199 percent year-over-year for February, and ahead of 2022 comparatives by 283 percent for the first two months.

Available hotel rooms in the destination stood at 1,509, but Mr Rolle conceded: “Our occupancy is still not where we want it to be at 46 percent (for the January to March 2023 period), but at least we’ve improved it by 67 percent” compared to 2022.

Again touting an alleged $1bn investment pipeline, he added: “We have the Port Lucaya Resort and Marina that is currently under contract. That’s going to be a mixed-use resort. The investment is anticipated to be $50m-$80m there..

“One of the projects going on right now is the Grand Port. Carnival has completed their dredging for their cruise port. The next step is to put out to tender the construction of the pier to facilitate Carnival’s largest cruise vessels and I anticipate that construction of this pier work will start by September/October.”

Mr Rolle also pointed to Weller Development and Pegasus Capital’s partnership with Rupert Hayward for the $200m Six Senses resort, as well as residential real estate projects by the Steininger Group and O2, plus the acquisition of a marina property by Xquisite Yachts, a manufacturer of high-end catamarans that is also expanding into powered yachts.