Terminal Development: Aruba, Canaveral, St. Croix, Vancouver USA

The Aruba Ports Authority (APA) will relocate its container operations to its brand new Barcadera multi-cargo facility, which is due to open by the end of 2015. Port Canaveral has concluded a 35-year agreement with GT USA to operate and develop its container and multipurpose cargo terminal. The Virgin Islands Port Authority (VIPA) is moving forward with the dredging, development and possible expansion of the Gallows Bay Marine Facility on St. Croix. The Port of Vancouver USA is planning to market nearly 100 acres at Terminal 5 following the expiration on June 16 of an agreement that set aside the property for BHP Billiton’s exclusive use.

The Aruba Ports Authority (APA) is moving forward with plans for new cargo terminal. In 2013, the APA launched a US$62 million dollar project to design, build, finance, maintain, operate, and transfer the multi-cargo sea terminal at Barcadera. Ultimately, the port authority’s container operations will be shifted to the new facilty.

The contract was awarded to the local stevedoring company Aruba Stevedoring Company (ASTEC) NV. The concessionaire is responsible for the investments in terminal infrastructure, labor and operational activities.

The port’s vision is to realize a project with guaranteed sustainability. It deems the project to be of vital importance for diversification of Aruba’s economy and its future growth

A brainstorming session on June 18 involving all APA Managers included a presentation by the manager of the Barcadera Multi Cargo Sea Terminal Project that confirmed the work is on track for completion by the end of 2015, including aspects pertaining to the stevedoring company.

Port Canaveral Partners with Container Terminal Operator Gulftainer

Port Canaveral has concluded a 35-year agreement with GT USA to operate and develop its container and multipurpose cargo terminal. The terminal is set to open in the last quarter of 2014. GT USA is the U.S. subsidiary of international terminal operator Gulftainer.

John E. Walsh, CEO of the Canaveral Port Authority, joined Gulftainer board chairman Badr Jafar in signing the agreement at a ceremony in Port Canaveral on June 24.

Gulftainer will invest US$100 million investment in infrastructure, equipment and locally-sourced human capital in the new facility.

As part of its commitment to local employment, GT USA expects to hire 100 percent of its full-time employees from Brevard County and the Central Florida region. The port predicts the terminal when fully operational will create about 2,000 direct and indirect jobs, pump more than $630 million in to the local economy, and generate port revenues amounting to $280 million and tax payments in excess of $350 million.

"This agreement marks a new era for Port Canaveral," said Mr. Walsh. "With work on the widening and deepening of the Canaveral Harbor currently in progress, the new container and multipurpose cargo terminal will further underscore our credentials as one of the most important economic engines for our region, while providing value to Central Florida shippers and distribution facilities by lowering overall costs and offering more efficient links to the supply chain."

Gulftainer operates and manages ports and logistics businesses on five continents. With a current handling activity of 6 million TEUs, the group aims to expand this to 18 million TEUs and increase its global portfolio to 35 terminals by 2020. Port Canaveral is its first venture into the U.S. market.

Port Canaveral CEO John E. Walsh (left) and Gulftainer Chairman Badr Jafar after signing the agreement between the port authority and the company.
Photo/Port Canaveral

St. Croix Dredging and Port Upgrades

The Virgin Islands Port Authority (VIPA) is moving forward with the dredging, development and possible expansion of the Gallows Bay Marine Facility on St. Croix.

The port authority’s governing board assigned a task order to its marine consultant to provide technical services to acquire the VI Coastal Zone Management and the U.S. Army Corps of Engineers permits along with plans and specifications to perform maintenance dredging of the Schooner Bay Channel in Gallows Bay.

The maintenance dredging will allow small cruise ships and luxury vessels to berth safely in Gallows Bay, said Port Authority Executive Director Carlton Dowe. VIPA anticipates that permits will be ready for submission to the VI CZM Commission within three months. The planning phase will cost $284,240 and is funded by the port authority.

The Virgin Islands Legislature recently passed Bill No. 30-0338, which included $500,000 to fund the dredging. The bill is pending the approval of Governor John deJongh.

Mr. Dowe said the port authority also plans to develop and possibly expand the Gallows Bay Marine Facility in Christiansted, St. Croix. "The VIPA Board sees great potential for upgrades and enhancements to the Gallows Bay port. Developing this facility could serve as an impetus to boost St. Croix’s tourism industry. Our marine consultant will produce a concept and feasibility study to develop Gallows Bay into an upscale marine port."

The study will include the practicability of constructing a marina, accommodating ferry service, allowing commercial or sport fishing, and the possible expansion of the facility onto adjacent government-owned land.

According to the port authority, the study should take about eight months to complete and will cost $143,720.

Vancouver USA: Port Able to Market Prime Property at Terminal 5 as BHP Billiton Exclusivity Agreement Expires

The Port of Vancouver USA allowed an agreement that set aside nearly 100 acres at the port’s Terminal 5 for BHP Billiton’s exclusive use to expire as of June 16. The property was selected by BHP Billiton in 2010 as its preferred site for a potash export facility to support the development of its Jansen Project in Saskatchewan, Canada.

The decision by both parties to allow the agreement to lapse enables the port to move forward on developing a prime piece of property and, at the same time, keeps the option open to continue discussions with BHP Billiton about locating a potash export facility.

"Fortunately, we have multiple properties, including Columbia Gateway, that could support this project, which enables us to be flexible," said Port CEO Todd Coleman."And because our relationship with BHP Billiton remains positive, we’re in a strong position to work with them in the future."

Columbia Gateway includes more than 500 acres of property available for future development and would allow the port to accommodate the needs of BHP Billiton or other similar world-class companies. Because the Terminal 5 acreage is no longer subject to the BHP Billiton agreement, the port can now market it for other uses.

"We’re confident that we can find a new tenant for Terminal 5 in the near future," said Mr. Coleman. "It’s an extremely attractive property due to its size and access to river, road and rail transportation."

The exclusivity agreement between the port and BHP Billiton was included in the Agreement for Lease, one of three definitive agreements the two parties entered into in February 2012. The others are a Site Improvement Agreement and an Entry Agreement. All three agreements expired on June 16. A final lease between the parties was not signed.