The government of St. Vincent and the Grenadines (SVG) has signed a memorandum of understanding (MoU) with Global Ports Holding (GPH), the world’s largest cruise port operator, paving the way for a 30-year concession and up to EC$250 million in phased investment to modernise the Kingstown Cruise Terminal and expand cruise tourism across the country.
The agreement, signed on Wednesday in Kingstown, will allow ordinary Vincentians to own 30% of the shares in the concession company.
The private-sector investment comes as the previous government had spent EC$15 million to operate the port over the last five years, generating a profit in only one of those years — EC$266,000 in 2023.
The MOU signed on Wednesday outlines a framework for the future operation and development of the Kingstown Cruise Terminal and, in time, facilities in the Grenadines, with Vincentians being offered up to 30% ownership in the port operating company through a special purpose vehicle (SPV).
Prime Minister Godwin Friday described the signing as “a very important day” and “a milestone in our continued transformation of St Vincent and the Grenadines’ maritime and tourism sectors”.
“This memorandum of understanding is not the final agreement,” Friday said
“However, it establishes the basis upon which both parties will work to finalise a comprehensive partnership that serves the best interest of the people of St. Vincent and the Grenadines and the continuing business operations of GPH.”
30-year concession, EC$225–250m phased development
Friday said the proposed concession period with GPH is 30 years, a timeframe he argued provides the certainty needed for large-scale private investment while securing long-term benefits for the country.
He outlined a phased development programme estimated at EC$225 million to EC$250 million, with the potential to go higher as plans are refined.
Phase one will be an investment of up to EC$75 million, the prime minister said.
This phase will include the modernisation and improvement of cruise terminal facilities in Kingstown, the creation of enhanced public and commercial spaces, supporting infrastructure upgrades throughout the port area, and investments to strengthen shore excursion activities and improve the visitor experience.
Phase two is expected to “include marine and berthing infrastructure improvements, further accessibility enhancements, the configuration of the parking and transportation system serving the cruise port areas, and additional investments to support future growth in cruise tourism.
Vincentians offered up to 30% ownership
A central feature of the MoU is a commitment to local participation in ownership and governance of the new port operating entity.
Friday said an SPV will be established to allow Vincentian nationals to hold up to 30% of the shares in the concession company.
“This means Vincentians will have an opportunity to benefit indirectly from the increased economic activity that will naturally follow such a major investment… and also to participate directly in the ownership and success of the enterprise,” he said
“The bigger it grows, the more benefit we will derive indirectly and directly from this enterprise.”
The prime minister also said the government will have representation on the board of directors, “ensuring transparency, oversight, and ongoing engagement” on behalf of the people of SVG.
GPH Chairman Mehmet Kutman said the model is drawn directly from GPH’s experience in The Bahamas, where Bahamian citizens own a share of the cruise port operation.
“In the Bahamas, we have 3,600 Bahamians who are investors in the port as we speak,” he said.
“They put their money, they invested, they got their principal back already through the dividends. Now they’re sitting on quite a lot of money, so the same thing is going to be here. Thirty percent of the concession company, the SPV… will be offered to the public here. I strongly recommend everybody take shares. It’s a good investment.”
‘Putting more money directly back into people’s pockets’
The government is banking on the partnership to reverse underperformance at the existing Kingstown cruise port and spread benefits across the economy.
Friday said the investments are expected to create jobs in construction and operations, and to boost passenger arrivals and spending.
“It will increase the number of passengers and will create opportunities, lots more opportunities for taxi operators, tour guides, vendors, retailers, restaurants, cultural parties, small businesses,” he said.
“In sum, the expanded activities from this investment will be putting more money directly back into people’s pockets in this country” [0:10:22].
Tourism Minister Kishore Shallow, who also holds the civil aviation and sustainable development portfolio, framed the MoU as a response to persistent financial losses at the cruise terminal.
“For the last five years, barring 2023, the cruise port operated at a loss,” Shallow said.
“In 2023, the only profit generated was EC$266,000. So, four out of five years we have operated at a loss, and this occurred during a period which the cumulative expenditure totalled just over 15 million dollars.”
He contrasted that position with GPH’s proposed injection.
“On the contrary, this MoU outlines a phased investment programme where we’ll be getting from GPH an investment of over EC$250 million,” Shallow said, adding, “That is significant… Tremendous.”
Shallow said the partnership is expected to touch a wide cross-section of Vincentians.
“We’re talking about taxi drivers, taxi operators, the tour guides, the vendors, restaurants, cultural ambassadors and practitioners. Everyone, we believe, will be impacted by this partnership.”
Environmental safeguards and ‘no new government debt’
Both the prime minister and the tourism minister said the project is intended to advance economic growth without adding to government debt and while respecting environmental standards.
Friday said the initiative aligns with the government’s policy of modernising infrastructure without resorting to further public borrowing.
Shallow, speaking in his capacity as minister responsible for sustainable development, said environmental responsibility will be central to the next steps.
“What that means also is that we’ll be guided at this particular point by principles of sustainability and environmental responsibility. That is absolutely critical, because one thing we have been champions of since taking office is that yes, we are committed to economic growth, but it is not going to be at the expense of our environment.”
Kutman said environmental impact assessment (EIA) and permits will be required before construction begins.
“The minister mentioned something very important: environmental sustainability, all those things. So we have to apply to EIA and all those things to get the relevant permits, but we already started the drawings… assuming the permits are in time as well.”
Work targeted before next cruise season, full impact by 2027–28
Friday said both parties intend to move swiftly from an MoU to a definitive concession agreement so that physical works can begin before the next cruise season.
Kutman said that once the final concession is signed and permits are in hand, GPH can “start immediately” on the ground.
However, he cautioned that the full economic impact for ordinary Vincentians is likely to be more evident after at least one or two cruise seasons under the new arrangement.
“The earliest impact for … Vincentians to see will probably be 27–28, but before that, even because of the increased traffic, they’ll see some impact.”
Kutman also revealed he plans to showcase SVG at the major annual SeaTrade cruise industry event in April 2027.
“Every SeaTrade… we have one country we bring forward,” he said. “We intend — I intend — to bring St. Vincent to the forefront at the next SeaTrade scheduled for April 2027.”