Government clarifies Castries Port berth loan vs GPH cruise deal

Parliament has approved a government guarantee for an EC$121.5 million loan to rebuild Berth No. 4 at Port Castries – an ageing cargo facility distinct from the cruise port now under redevelopment by Global Ports Holding.

Prime Minister Philip J. Pierre sought to draw a clear line, telling Parliament that Berth No. 4 is a cargo facility and unrelated to the Global Ports Holding cruise port deal, a point intended to address questions raised by commentators about rehabilitation responsibilities at Port Castries.

Under the resolution presented on Tuesday, March 10, the Government will guarantee the loan that the Saint Lucia Air and Sea Ports Authority (SLASPA) will borrow to fund the berth reconstruction project.

The loan terms include:

1. Repayment period: 15 years
2. Moratorium: Two-year grace period on principal repayment
3. Interest rate: 3.75% per annum
4. Payment structure:
   1. EC$2,962,884.32 quarterly, or
   2. EC$985,246.50 monthly
5. Total repayment period: 156 months

Additional costs attached to the loan include:

• Lead arranger fee: EC$243,000
• Annual agent fee: EC$24,300 payable to Bank of Saint Lucia
• Commitment fee: EC$607,500 upon signing the loan agreement
• Amendment fee: EC$7,500 per material change
• Prepayment penalty: 2% of the outstanding balance if more than 10% of the loan is repaid within the first three years

The reconstruction project is intended to address ageing infrastructure at Berth No. 4, a facility that has been in operation for roughly 50 years and is located along the southern perimeter of Port Castries.

Pierre, who is also the Minister for Finance, said that Berth No. 4 is a reinforced concrete wall structure.

Key details about the berth include:

• About 150 metres (500 feet) long
• About 15 metres wide
• Constructed in the 1970s
• Near the end of its typical design lifespan

The facility plays a critical role in cargo operations and is used for:

• Container cargo handling
• Break-bulk cargo
• Handling new and used vehicles

It also houses the mobile harbour crane used to load and unload containers from cargo vessels.

Pierre stressed in Parliament that the project is completely separate from the cruise port arrangement. “Berth four has nothing to do with GPH,” the Prime Minister told MPs.

The confusion surrounding the loan stems from Saint Lucia’s recent agreement with Global Ports Holding (GPH), one of the world’s largest cruise port operators.

Under that agreement:

• GPH was granted a long-term lease to manage and redevelop the cruise port facilities in Saint Lucia.
• The company is expected to invest significantly in cruise infrastructure, including upgrades at Port Castries and Soufrière.
• The aim is to modernise cruise passenger facilities, improve capacity, and increase Saint Lucia’s competitiveness in the regional cruise tourism market.

Importantly, the agreement does not cover cargo operations at the port.

Cargo infrastructure, including facilities such as Berth No. 4, remains under the responsibility of SLASPA and the Government of Saint Lucia.

Because the GPH lease focuses exclusively on cruise tourism infrastructure, it does not include funding for cargo port upgrades; the government still needs to borrow.

• Cargo facilities remain a government responsibility
• SLASPA must finance improvements through borrowing or government-backed investment
• The reconstruction of Berth No. 4 is seen as necessary to maintain Saint Lucia’s ability to handle cargo, vehicles, and bulk goods

The upgrade is considered particularly important because Port Castries is the island’s primary cargo gateway, supporting imports that supply businesses and households across the country.

While debate continues over the financing, government officials argue that the project is essential to ensure safe and efficient cargo operations.

With the structure nearing the end of its lifespan, reconstruction of Berth No. 4 is intended to:

• Strengthen the port’s cargo capacity
• Improve safety for cargo handling operations
• Support trade and supply chains into Saint Lucia

In essence, while the GPH agreement targets tourism and cruise passenger infrastructure, the Berth No. 4 reconstruction focuses on the country’s cargo logistics, meaning both initiatives address different sides of the maritime economy.