Cruise: U.S. Virgin Islands

The Virgin Islands Port Authority (VIPA) has signed an agreement with the world’s second largest cruise line, solidifying the business relationship between the two parties and securing the cruise industry in the U.S. Virgin Islands for the next decade.

The agreement between the port authority and Royal Caribbean Cruises, Limited (RCCL) was finalized on December 11, 2015. The contract takes effect October 1, 2016, for a term of 10 years and includes an option to renew for an additional five years.

"This agreement, which benefits both parties, includes a provision for RCCL to have guaranteed berthing privileges along the southern portion of the pier at the Austin "Babe" Monsanto Marine Facility in Crown Bay, St. Thomas," said VIPA Executive Director Carlton Dowe. "The contract also requires RCCL to guarantee a certain amount of passengers, and includes increases in port fees going forward that will be paid to the Authority in accordance with the new unified tariff implemented by the VIPA Board.

Another provision obligates RCCL to pay port fees to berth at the Ann E. Abramson Marine Facility on St. Croix, which had been free since 2002.

"The operation and maintenance of the Abramson Facility has been a tremendous financial burden to VIPA since it has been used at no charge to the cruise lines for 13 years and this practice could no longer be continued. These fees will allow us to invest in the improvement of our port infrastructure," Mr. Dowe said.

VIPA’s cruise terminals on St. Thomas/St. John and St. Croix together received 609 ship calls and nearly 2.1 million passengers during CY 2015.