The Government of St. Vincent and the Grenadines has officially signed an agreement with Global Ports Holding (GPH) to modernize and expand the nation’s cruise tourism infrastructure, while maintaining 100% government ownership of all port facilities.
Under the agreement signed in Kingstown, GPH has been granted operational, management, and development rights to the country’s cruise ports. Officials emphasized that the arrangement is strictly a lease partnership structured to leverage international port management expertise without privatizing state-owned assets.
“We are only leasing the port and… not standing up here today to sell anything,” Minister Shallow stated during the ceremony, confirming that the physical facilities remain entirely in public hands while operational capacity is upgraded through GPH.
Prime Minister Dr. Godwin Friday noted that while ownership remains with the government, the professional management partnership enables the state to expand port capacity and accommodate modern, larger cruise vessels in a financially responsible manner.
The agreement grants GPH a 30-year exclusivity period tied directly to guaranteed capital investments:
Phase One: GPH is contractually obligated to invest a minimum of US$20 million to upgrade and expand existing cruise ship berths in Kingstown.
Phase Two: GPH must invest at least US$60 million to construct a new pier west of Kingstown, as well as a new cruise ship and mega-yacht berth on Clifton, Union Island.
Attorney General Sarah Louise Mitchell highlighted that expanding mega-yacht infrastructure in both Kingstown and Union Island will significantly broaden the country’s maritime tourism footprint.
To ensure national economic participation, the contract mandates the creation of a Special Purpose Vehicle (SPV) allowing Vincentian citizens and local entities to acquire up to a 30% equity stake in GPH St. Vincent. Priority for share purchases will be given to local retail investors, with institutional entities eligible to participate if retail allocations are not fully subscribed.
The legal framework includes key safeguards for existing commercial operators and cultural representation:
Tenant Protections: Existing local retail, food, and beverage vendors operating at the port are guaranteed tenancy on current terms for at least three years from the commencement date, with rights to continue as long as lease agreements are maintained.
Cultural Integration: Under Section 7.11 of the agreement, GPH is required to feature local art, crafts, music, and heritage within the terminal, while allocating space for local cultural performances.
The expanded cruise operations are expected to drive broader economic opportunities across several domestic sectors, benefiting tour operators, taxi drivers, vendors, artisans, farmers, and fishers.
