Global Ports Regulatory News (GPH)

Global Ports Holding Plc

GPH adds Canary Islands ports to network

Global Ports Holding Plc (“GPH” or “Group”), the world’s largest independent cruise port operator, is pleased to announce that Global Ports Canary Islands S.L. (“GPCI”), an 80:20 joint venture between GPH and our local partner Sepcan S.L., has successfully completed the competitive RFP process for certain Canary Island cruise ports having received final acceptance for the concessions for three cruise ports in the Canary Islands: Las Palmas de Gran Canaria, Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura).

This follows GPH’s announcement on 11 July 2022 that GPCI had agreed terms for the Las Palmas Cruise Port concession, and GPH’s announcement on 10 November 2021 that GPCI had been awarded preferred bidder status in the RFP process for these concessions. The concession for Las Palmas, the largest port among the three, is for 40 years and the concessions for the two other ports are 20 years.

GPH expects to take over operations of the three cruise ports in calendar Q4-2022, ahead of the peak winter season for Canary Island cruises. The addition of these ports takes the total number of cruise ports in GPH’s network to 24 across the Caribbean, Mediterranean, South Atlantic, Asia and Northern European cruise regions.

In 2019, these three cruise ports handled 1.5 million cruise passenger movements. GPCI will invest approximately €40 million into constructing a new cruise terminal in Las Palmas and modular terminal facilities in Marmoles pier in Arrecife and Puerto del Rosario in Fuerteventura. The debt financing for these projects is expected to be secured by local banks, and GPH is in advanced discussion regarding the financing. The debt metrics are expected to align with the Group’s historical precedents.

Global Ports Holding Chairman and CEO, Mehmet Kutman, said:

“The addition of these ports to our network is a testament to the strength of GPH’s proposition as the world’s largest independent cruise port operator. We help create well-run, well-invested world-leading cruise port facilities for the benefit of all stakeholders.

The GPH team warmly welcomes these ports into our network. We look forward to working in partnership with all stakeholders to increase the economic benefit of cruise tourism in their localities.”

Global Ports Canary Islands S.L. (“GPCI”): GPH owns 80% of GPCI and Sepcan S.L. owns 20%. Sepcan is a Canary island family-owned company that has been providing services to the port of Las Palmas since 1936 and, since 1998, has been focused on mooring/unmooring, luggage handling, ship’s provisioning and passenger services. They also specialise in environmental services and maritime pollution prevention.