By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Nassau needs an independent port operator to “manage it fairly” and maximise the economic benefits from the cruise industry’s rapid expansion, one bidder argued yesterday.
Colin Murphy, Global Ports Holding’s business development head for the Americas, told Tribune Business that selecting the cruise line-driven bid to manage Nassau’s cruise port would be akin to letting an airline manage Lynden Pindling International Airport (LPIA).
Making the case for The Bahamas’ main cruise port to be managed by an independent operator such as itself, Mr Murphy said it was “extremely important” for new and emerging cruise lines - many of whom were showing interest in coming to Nassau - to have confidence they would have access to berth space when needed.
Besides Mediterranean Shipping Company (MSC), which is currently developing its own private island on Ocean Cay near Bimini, cruise lines such as Virgin and Viking are also eyeing the Caribbean region as a potential destination in a period of rapid growth for the industry.
With Miami adding five new cruise terminals within the next five years, Mr Murphy said Nassau “could be the main beneficiary” of such expansion provided it moved now to upgrade its port infrastructure to accommodate more, larger vessels and enhance the experience for visiting passengers.
He warned that it would “cost” The Bahamas economically if it failed to act, pointing out that the Nassau cruise port - located in the heart of the country’s major city - is a prime infrastructure asset that has been under-exploited for decades.
While there has been much talk of revitalising Bay Street and downtown Nassau, all such efforts have stalled and fizzled over the past two decades. Mr Murphy indicated that the port’s upgrade is critical - both to enabling Nassau to match the cruise industry’s multiple Bahamian private islands, and downtown’s ability to compete with, and offer something different to, Atlantis and Baha Mar.
“We really understand this business in-depth,” Mr Murphy told Tribune Business. “The cruise lines are users of the port. They don’t have the depth of experience and expertise that we do in port operations and management. You don’t want airlines to manage your airport.”
Emphasising Global Port Holdings’ “respect” for the cruise industry, both as partners and for the multi-billion dollar investment it is making in new vessels, he added that the lines were best suited to remain as Nassau cruise port’s customers.
Mr Murphy, pointing out that Global Ports Holding deals with 70 different cruise lines between the 15 ports it manages, said: “The cruise lines, when it comes to push, they want a great experience and place to take their guests. They want berths for their own ships.
“There’s a lot of new cruise lines that could come to Nassau. There’s a lot of cruise lines becoming interested. We feel that having an experienced, independent port operator is the best way for Nassau to benefit from the growth of the cruise lines, and we’ll manage it fairly. New cruise lines knowing they have access to Nassau is very important.”
One of Global Ports Holding’s two rivals for the contract to manage/operate Nassau’s cruise port is the bid from a group of cruise lines, who have partnered with the 50-strong Bahamian investor group, Cultural Village (Bahamas), and RoyalFidelity Merchant Bank & Trust.
The involvement of the four cruise lines - Carnival, Royal Caribbean, Norwegian Cruise Line and Disney - has raised concerns about potential “conflicts of interest”, since they would be both operator and customer if the group is selected as Prince George Wharf’s manager.
Some have likened their involvement to “the fox guarding the hen house”, given the influence they would hold over Nassau’s development in relation to their private islands. And they could also potentially have a say over berth availability and scheduling such that other cruise lines could be kept out of Nassau - if Mr Murphy’s argument is followed.
“There are more ships on order than ever before,” the Global Ports Holding executive told Tribune Business. “Our role in the industry is to create great destinations for these ships to go to, and their guests have great experiences, that it’s a fair relationship and that we partner with the locals, turning Nassau into a port people want to come back to.
“The Port of Miami is building five new cruise terminals over the next five years. They’re all underwritten by the cruise lines. They want great destinations with great capacity. Where are they going to go?
“We think a reinvigorated Nassau can be the main beneficiary if it’s done properly, the community is involved in the experience here, and if it is marketed properly. Nassau has a tremendous opportunity. We want to be part of it if we’re fortunate enough to be selected here.”
Mr Murphy warned that The Bahamas would suffer a high economic opportunity lost if it failed to act quickly enough to upgrade its cruise port. “I think it will cost Nassau if there are no new berths, no new ships willing to come here,” he said.
“We want Nassau to become the port of choice, not because it’s close to the US but because it offers a fantastic guest experience. That’s what we intend to do, working with the local community. You want the most experienced operator to manage it on behalf of the Bahamian people.”
Mr Murphy revealed that Global Ports Holding’s plans will include “iconic, synergistic architecture” for Nassau’s cruise port and the surrounding downtown area, although the final form will be decided after consultation with the Government and all relevant Bahamian stakeholders.
“Design is so important,” he told Tribune Business. “We want people standing on their balconies to see fantastic architecture that pulls them off the ship. Everything is clean and friendly. The word of mouth will spread and Nassau’s reputation will be enhanced.
“The initial thought was colonial Caribbean vernacular, but that exists in a lot of other places. We think we have a design that’s more refreshing, more modern and iconic that puts Nassau on the map and make it stand apart from every other port in the Caribbean.”
Global Ports Holding’s proposal also involves the creation of a waterfront amphitheatre, set in a park, which will host musical and movie events designed to attract locals and resort-based visitors, as well as cruise passengers, and turn downtown Nassau into a destination that remains open beyond the standard 9am-5pm hours.
Mr Murphy rejected criticisms that the venue would deter cruise passengers from exploring downtown, adding that it was also designed to give guests at Atlantis and Baha Mar “a reason to come back downtown again” and expose all to Bahamian culture, music and the arts.
“We think our proposal can stand up against anybody,” he told Tribune Business. “It would be easy for us to put lipstick on it but that’s not our intent. As a world-class operator we feel we’re the only person qualified to make this a world-class facility.
“People are desperate for a transformation of Nassau, whether it’s taxi drivers, shopkeepers. People are looking for a transformation, not a half-hearted solution, and don’t want someone coming in from outside and co-opting the whole thing for their benefit.
“We see this as a very important, prime asset of the Bahamian people, and we will be good stewards of that asset on their behalf. The difference is the management, experience and expertise, spending money wisely in a way that will have the most impact.”
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