Global Ports Holding (GPH) will soon become a private company, delisting from the London Stock Exchange.
Chairman and CEO Mehmet Kutman described the move as a strategic which he said was in the best interest of the company, and also added that he is fully committed to keep the company closely held and family owned from this point on.
GPH currently operates 32 cruise ports in 19 countries, ranging from Antigua to Vietnam, signing long-term concession agreements with local governments to run their cruise operations.
Global Investment Holdings, a key stakeholder of GPH, where Mehmet is also co-founder, made an offer for the shares.
Mehmet said that being public, the company had to disclose critical information as it negotiates to run cruise ports globally, which put it at a disadvantage.
“Being public means you have to disclose anything and everything,” he told Cruise Industry News.
“We have no problem disclosing everything once we close a strategic move, but not too far in advance.”
Kutman described the news as very positive for cruise lines.
“We work hand-in-hand with them. The ships are growing, they are going to LNG at a rapid pace and the ports in the Caribbean need infrastructure,” he said.
Among recent projects, GPH took over San Juan’s cruise port earlier this year and is planning to invest $400 to $500 million.
In Nassau, a revamped cruise port thanks to GPH has grown traffic significantly, added a new terminal building and a retail area for local merchants.
“In Nassau, we can dock six ships and four Oasis-class ships. When we signed the concession, there were two-and-a-half million passengers. Next year we are predicting over 5 million.”
Mehmet said that GPH will continue to grow, and short-term plans include projects in the continental United States, more in the Caribbean and Mediterranean, and a long-term focus on Asia.
Are the cruise lines’ private islands competition? “I wish they did more. There are a lot of repeat passengers and we need more places, more ports and more beach clubs,” Mehmet answered.
“What we do is crucial for the industry. Some of the infrastructure in the Caribbean is in bad shape and you can’t just have cruises sailing to private islands and Nassau.”
