By Tommy Descartes
CASTRIES, St Lucia – The following analysis reviews concession agreements in The Bahamas, Antigua and Barbuda, and Saint Lucia, alongside the corporate structure of Global Investment Holding, Global Ports Holding, and Cruise Port Saint Lucia.
The scenario-based forecasts project head tax revenues of EC$1.1 billion over 30 years, with GPH capturing approximately 80 percent. An alternative model is proposed through a Strategic Investment Fund, ensuring local ownership, wealth creation, and preservation of national port sovereignty while leveraging GPH’s expertise through a public private partnership arrangement.
Parent company of GPH (92% shareholding) and a Luxembourg company holding the remaining shares.
Parent company of Saint Lucia Cruise Port (100%). Delisted on the London Stock Exchange on August 9, 2024.
Key Questions
- Why was Global Port Holding selected to execute the cruise port upgrade, when SLASPA has demonstrated that it has capacity to carry out such projects?
- Was SLASPA encountering any difficulty in servicing its existing debt? Why not allow GPH to execute just the investment of US40 million and increase SLASPA share of the head tax to under the cargo upgrades?
- Why wasn’t SLASPA made a shareholder in Cruise Port Saint Lucia to ensure it has a say in the strategic decision with regards to the operations of cruise ports in Saint Lucia (Tourism accounts for 50% of GDP direct and indirectly)?
- How will the SLASPA’s cruise ports assets be reflected on its balance sheet?
- Does the contract have a Maintenance Reserve Account to ensure capital repairs and life-cycle maintenance during the concession and prior to hand back? This could be linked to cruise arrival numbers.
- Why pursue the cruise port ahead the cargo port operations given the pain points with cargo operations?
- Why not adopt the Bahamas Model of establishing a special national investment vehicle to provide individual, private institution (credit unions, taxi associations, vendors and craft associations, fishing cooperatives) and Public investors (NIC, NLA etc.) an opportunity to participate in the cruise sector. This would deepen impact of cruise given average cruise expenditure US$84.95.
- What is the quantum of foreign direct investment associated with project. Are funds secured from a syndicate of domestic financial institutions, which will crowd out credit to other sectors.
- Was a sensitivity analysis done to determine whether increasing the head tax would reduce cruise traffic to Saint Lucia and associated impacts on the taxi sector in Saint Lucia?
- What is the opportunity cost of abandoning the Home Port Cruise Project in Vieux-Fort.
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