Mediterranean Shipping Company’s (MSC) cruise division will be joining the Grand Bahama Shipyard as an “equal equity partner” alongside Carnival and Royal Caribbean, it has been revealed.

The global shipping giant, in e-mailed answers to Tribune Business questions, declined to provide details on the financial terms associated with its involvement citing confidentiality, but added that MSC Cruises’ investment “reflects a long-term commitment to the success and growth of the facility”.

It also confirmed that the investment is part of its growth strategy for its cruise business in The Bahamas, North America and wider Caribbean, as the Shipyard’s close proximity to Florida’s major ports - and location near to major shipping lanes - provides a convenient repair facility for both its liners and cargo vessels.

“MSC Cruises is joining as an equal equity partner in the Grand Bahama Shipyard,” MSC said. “As one of the world’s leading cruise lines, MSC Cruises’ decision to join the Grand Bahama Shipyard reflects a strategic alignment with its long-term growth in The Bahamas and across North America.

“The Grand Bahama Shipyard is uniquely positioned as the largest ship repair facility in the Western Hemisphere, and having a reliable, world-class dry dock facility nearby offers clear logistical and operational benefits for MSC Cruises’ fleet as well as MSC’s container vessels.

“This investment underscores MSC Cruises’ broader vision: To be a catalyst for economic growth, innovation and opportunity in The Bahamas, reaffirming its role as a committed partner in the country’s maritime and tourism future.”

Prior to MSC’s investment, the Shipyard’s ownership was split between Carnival and Royal Caribbean, both of whom had a 40 percent equity stake, with the Grand Bahama Port Authority’s (GBPA) Port Group Ltd affiliate holding the remaining 20 percent.

The “equal equity partner” could mean all of Carnival, Royal Caribbean and MSC now each own 30 percent of the Shipyard, with Port Group holding 10 percent - a structure that would have resulted from each of the three original shareholders selling 10 percent of the equity to MSC. However, that cannot be confirmed.

As to the benefits for the Shipyard from its involvement, MSC said: “For MSC Cruises, this partnership provides access to important infrastructure that supports its growing cruise business. For the Shipyard, MSC Cruises brings additional technical expertise, business volume and a broader global network that will enhance the facility’s commercial prospects and long-term sustainability.

“The current $600m project, which includes the acquisition of two new floating dry docks, is central to repositioning GB Shipyard as the premier vessel repair facility in the Western Hemisphere. This upgrade will significantly expand capacity, allowing the facility to service the world’s largest cruise ships as well as commercial vessels.

“As the transformation continues, the project is expected to generate direct and indirect jobs in Grand Bahama, create new opportunities for local businesses and support workforce training and skills development across the island,” the shipping giant added.

“MSC Cruises’ entry into the partnership helps accelerate this growth, ensuring the Shipyard remains globally competitive and regionally impactful by providing additional capital, technical expertise and a steady pipeline of business that supports the Shipyard’s ongoing transformation.”

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.

GB Shipyard’s 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.