Maritime Economic Development: Gulfport, Puerto Rico

Port of Gulfport Signs Deal With Chiquita

Mississippi State Port Authority (MSPA) commissioners have finalized a lease agreement with Chiquita Fresh North America, confirming that the company will be restoring operations at the Port of Gulfport. The 40-year lease term means Chiquita will remain in Gulfport at least through 2056.

Under the agreement, Chiquita will return to its former North Harbor location and expand operations into Terminal 1. The company will double its terminal space to 32 acres, occupy a new maintenance and repair building, and utilize 110,000 square feet in the new West Terminal Transit Shed. Additionally, the port authority will construct 20,000 square feet of temperature-controlled space. Chiquita expects to employ 10 management and operations personnel at its Gulfport location.

"We are pleased to return our port operations to Gulfport where our Chiquita ripening and distribution facilities are located," said Chiquita CEO Andrew Biles. "We believe that Gulfport is optimally situated to service our customers most efficiently with both north and southbound vessel services."

With the lease agreement in place, the port authority expects Chiquita containers to begin arriving by mid-July and the first vessel arrival in August.

"We never lost sight of a possible return by Chiquita, and it is with great excitement to announce their return to Gulfport," said Jonathan Daniels, the port authority’s executive director and CEO. "The State of Mississippi provided no financial incentive for Chiquita to return, and that speaks for itself. Our new facilities and the efficiency of the ILA Local #1303 ultimately made the business case for the Port of Gulfport."

Puerto Rico: Mega Yacht Service Center Construction Underway in San Juan

Puerto Rico is moving forward with the development of a $73 million mega yacht marina and service center in the Port of San Juan. According to Governor Garcia Padilla, the new business will create about 1,300 jobs and generate an economic impact amounting to $40 million annually.

"This center will be unique not only in Puerto Rico, but in the Caribbean region and will add a new destination to the routes for mega yachts in this zone. We are talking about the creation of a new industry in Puerto Rico, with potential impact on the entire region," the governor said.

The governor explained that mega yachts are a unique industry, mostly consisting of vessels more than 100 feet in length and custom designed for their owners. Because of their size and advanced technology, these vessels require highly specialized services. Nowhere in the Caribbean, he said, is there a maritime industrial center that can offer these services to mega yachts.

"Puerto Rico will fill this void. We have the infrastructure, the air connectivity, the capacity to provide quality supplies and the labor needed to support the development of this industry. We are in a strategic location in the Caribbean, ideal for accommodating several mega yachts, especially in the winter season," the governor noted.

The service center, which will be able to repair and upgrade mega yachts, will be located at Dock 15 in the Isla Grande area of San Juan. It would serve between 20 and 40 vessels out of the water and 125 to 175 in the water. The center will begin partial operation this October and be fully operational by April 2017.

The governor predicted the industry would create an "ecosystem of economic development." While yachts are being repaired, their owners will be spending money for remodeling, supplies and fuel, thus benefiting diverse sectors of the economy.

Planned for completion in 2019, phase one of the mega yacht marina project will be located along the Bahia Urbana waterfront, between Docks 6 and 9, and will offer a variety of services to yacht owners and crew members. Stage 2 entails the construction in the marina area of a hotel, which should be ready in 2020.