Cruise Ship Port, Investment, or disguised sale?

Many Vincentians were alarmed this week with the announcement by Prime Minister Godwin Friday that the government had signed a Memorandum of Understanding (MOU) with a foreign company to take over the cruise ship port in Kingstown.

The announcement caught many by surprise since this had not been among the stated promises made during the New Democratic Party’s election campaign of 2025. It also tended to shift online chatter from the excavation and sale of material from the Richmond Bay Area in North Leeward. That chatter was largely quelled by BRAGSA CEO Kem Bartholomew’s appearance on social media to explain the procedures being undertaken to extract material for construction in the Grenadines and elsewhere.

A pattern which seems to have emerged is where the government springs surprises on the nation and then has to walk back with explanations of its intentions surrounding activities. A more proactive communication methodology would better serve the administration to keep the nation informed. That way, they score points in the minds of the constituents. So, Dr. Friday announced that the Government of St. Vincent and the Grenadines had signed a major Memorandum of Understanding (MoU)with Global Ports Holding (GPH), said to be the world’s largest cruise port operator, the finer details of which have not yet been revealed. This MoU promises that GPH would invest up to $250 million to develop and operate the existing cruise ship port in Kingstown.

As part of this 30 year agreement we are told, the Government of SVG retains ownership of the port as a landlord, with GPH managing the cruise facilities. It proposes significant upgrades and expansions, with the intention of increasing tourism capacity and maritime trade. As such this investment will operate alongside the newly opened Modern Kingstown Port and the older SVG Modern Port Operations Company.

Part of this MoU promises the opportunity for Vincentians to invest up to 30 percent in what is termed a public/ private partnership. Such partnerships have been touted by the now Deputy Prime Minister, St Claire Leacock, certainly in more recent times, including in the run-up to the 2025 general elections campaign.

As is customary at such signing ceremonies, both Dr. Friday and the investor Michael Kutman, are promising swift movement from the MoU to a “definite concession agreement” so that physical works can begin before the next cruise season.

We do applaud investment in the ageing cruise ship port, and hope that it does bring increased employment opportunities and creates more space for local small business operations; we need to be realistic. Given the length of time which this partnership covers, it does give one the impression that what we are seeing is in effect more of a sale of the port than merely an investment as touted.

There is an opinion which proffers that since the expected lifespan of the port is in the region of 40 years, and with the investment coverage being in the region of 75 percent, we really are seeing a sale- by another name.