By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Grand Bahama Shipyard will likely enjoy "more business" through the involvement of three cruise lines after Mediterranean Shipping Company's (MSC) "partnership" was confirmed yesterday.

Dillon Knowles, the Grand Bahama Chamber of Commerce's president, told Tribune Business that MSC Cruises' addition as a shareholder - first revealed by this newspaper in April - "bodes well" for both the ship repair facility and the island's wider expansion. It also coincides with the Shipyard's $600m investment in two new docks and the continued expansion of cruise tourism in The Bahamas and globally.

"I think that it bodes well for Grand Bahama that, one, MSC is taking an interest in the Shipyard, and two, the cruise industry has come together on something as important as the Shipyard. The fact we have multiple cruise lines engaged in the Shipyard is, I think, a good thing," the Chamber president said.

"The Shipyard is going to benefit from all three cruise lines having a vested interest in bringing their vessels there for repair and refurbishment. More boats means more business than it would have had previously, and with global tourism trending in favour of the cruise industry, there's going to be a further expansion of the cruise lines going forward.

"I think it all bodes well for Grand Bahama. There will be more business for the Shipyard, which means more people working in the Shipyard and more money spent on Grand Bahama. I don't see any downside." MSC Cruises thus joins Carnival and Royal Caribbean, who each held a 40 percent ownership interest in the Shipyard prior to its involvement.

The nature of MSC Cruises' partnership, whether this involves it directly investing in the Shipyard and how much, and if the respective shareholdings will change as a result was not disclosed in yesterday's release. It did, though, confirm that MSC is now a shareholder.

The addition of a third cruise line partner was yesterday welcomed by Rupert Hayward, co-chairman of the Grand Bahama Port Authority (GBPA) and its Port Group Ltd affiliate. Port Group Ltd owned the remaining 20 percent in the Shipyard, and Mr Hayward said: "Port Group Ltd (PGL) is pleased to welcome MSC Cruises as the newest partner in the Grand Bahama Shipyard joint venture.

"MSC’s entry into the partnership alongside Carnival Corporation, Royal Caribbean Group and PGL marks a significant milestone for the future of the Shipyard and the maritime industry in The Bahamas. This expanded partnership strengthens our shared vision to transform Grand Bahama Shipyard into a world-class facility for cruise and commercial vessel repair.

"MSC’s global expertise and long-term commitment will further support the continued growth and modernisation of the yard, helping to drive job creation, economic opportunity and technical innovation.”

MSC Cruises' involvement comes as the Shipyard prepares for the arrival of its two new docks. "We are delighted to see positive momentum on our expansion and modernisation, which is expected to increase activity here in the Shipyard, boosting local businesses, creating economic opportunities and enriching the community for Grand Bahamians,” said Chris Earl, the Shipyard's chief executive.

The first dock, named 'East End', is 357 metres long and 76 metres wide - 1,171 feet by 250 feet - and capable of lifting 93,500 tons. It will be equipped with four cranes and control systems, and will begin its journey this September to The Bahamas, arriving by November with operations beginning in January 2026.

The second, larger dock, named 'Lucayan', is designed for a 125,000-ton lift capacity,and will be operational later in 2026, allowing the Shipyard to service all large cruise ships and other commercial vessels.

Tribune Business reported back in April that MSC was in negotiations to buy into the Shipyard as the latter prepared to bring its $600m investment in the two new docks to fruition.

Multiple well-placed contacts, speaking on condition of anonymity, confirmed that the global cargo shipping giant - which generated $36.2bn in profits in 2022 - was looking to invest in the Grand Bahama-based facility although they gave different explanations for how any deal would be structured.

The potential Shipyard deal emerged just as MSC Cruises is becoming increasingly active in The Bahamas and wider Caribbean region. It has unveiled what it described as the world’s largest cruise terminal at the Port of Miami, spanning more than 492,000 square feet and capable of processing up to 36,000 passengers daily and handling up to three ships at once.

Some four ships will be sailing from that terminal this year to destinations including The Bahamas and MSC Cruises’ private island of Ocean Cay. 

MSC has also been deeply involved in plans to redevelop Freeport harbour in partnership with Royal Caribbean and ITM Group. The two cruise companies were teaming with the Freeport Harbour Company to redevelop Billy Cay into a new cruise port and amusement park.

Teaming with Carnival and Royal Caribbean, and investing in the Shipyard, would make sense for MSC as it would enable it to influence when its vessels could access the facility for repairs and refits rather than have its two cruise rivals determine the schedule. And its involvement, and potential investment, will help ease and share the burden of financing the Shipyard’s new multi-million docks.