What is the current state of the maritime sector in Sint Maarten. What are the challenges and opportunities the island faces?
The maritime sector in Sint Maarten is a crucial driver of the economy, particularly in the areas of cruising and yachting. The cruise sector alone contributes approximately 25% to the island's GDP, while yachting brings in about 15%. This is significant, especially for a small island like Sint Maarten. The challenges and opportunities are closely tied together. For example, coming out of the pandemic, we saw a lot of opportunities to revitalize our port facilities and improve the destination as a whole. Our focus has been on infrastructure development and creating new experiences to enhance the appeal of Sint Maarten as a port of call.One of the biggest opportunities we've had is the focus on sustainability. The cruise industry has set ambitious goals to be carbon-neutral by 2050, and we're very much involved in this transition. From a port standpoint, we are focusing on how to facilitate these sustainability goals. This includes looking at ways to power ships more efficiently, such as the concept of shore power, where cruise ships plug into the local grid instead of running their engines. This is a great innovation, but for small nations like Sint Maarten, it's a challenge to implement.We are also looking at improving connectivity for cruise passengers. Sint Maarten is a hub for both cruises and cargo, and we want to facilitate easier access to neighboring destinations like Anguilla and St. Barth. Our goal is to expand the infrastructure, not just within the port but also through water distribution to other parts of the country.
You mentioned sustainability and infrastructure. Could you tell us more about the challenges facing the port in these areas?
On the sustainability front, one of the primary challenges is meeting the strict environmental goals set by the maritime industry, particularly with regard to carbon emissions. The goal of being carbon-net-zero by 2050 is an ambitious one, and while larger nations may have more resources to meet this target, smaller islands like Sint Maarten need to partner with local stakeholders, such as the government and utility companies, to develop practical solutions. One solution we've been looking at is shore power, where ships can plug into the local electrical grid to minimize emissions, but for this to work, we need to significantly upgrade our local infrastructure, which brings its own set of challenges.Infrastructure also ties into another challenge: accommodating the growing size of cruise ships. We are seeing ships with greater capacity, which puts pressure on our port facilities, as well as the surrounding infrastructure. On the logistical side, this means that we need to constantly improve our port facilities, transportation systems, and passenger services to handle these larger ships and ensure passengers have a seamless experience once they arrive.Another challenge is the seasonality of the cruise industry. While we’re seeing a recovery in passenger volumes post-pandemic, the off-season (typically May to September) is still a challenge for us, particularly because many cruise ships that used to stay in the region during the off-season have been sold, scrapped, or repurposed. This reduces the number of assets available to support cruising during these months. We are working on strategies to address this by expanding the market for the off-season and looking for new ways to attract cruise ships back to the Caribbean during this period.
Could you give us a presentation on the Port Sint Maarten Group of Companies and your expansion plans?
The Port Sint Maarten Group of Companies is a multifaceted organization. We operate in several areas: cruising, cargo, and yachting. We are the owners and operators of the main cargo facilities here on the island, and we also provide yachting services with two dedicated yachting slips. Beyond that, we have a portfolio of real estate assets that we leverage to support our broader mission of enhancing Sint Maarten’s economy and infrastructure.A major part of our current work involves enhancing the port’s capacity and infrastructure. Two years ago, we completed a high-level 10-year plan with investments totaling over $70 million. This plan covers a wide range of improvements, from upgrading existing infrastructure to enhancing the guest experience at the port. A significant portion of this investment is focused on sustainability and improving our port facilities to support the goals of the maritime industry.We’re also committed to improving the port's connectivity, both for passengers and for the distribution of goods throughout the region. As part of our expansion, we’re working on projects that not only improve our infrastructure but also create new experiences for visitors. For example, we are developing more tours and activities to encourage passengers to explore the island beyond the port area, which in turn contributes to the local economy.
What is your long-term vision for Port Sint Maarten Group of Companies over the next 5 to 10 years?
Our long-term vision is to remain a leader in the Caribbean maritime industry, especially in cruise services. We aim to be self-sufficient, not only in terms of our operations but also in meeting the sustainability goals of the industry. We see ourselves as a key player in the Caribbean business landscape, helping to drive economic prosperity for Sint Maarten and facilitating the growth of other regional destinations.Another important aspect of our vision is to continue to invest in human capital. We want to create more opportunities for locals to get involved in the maritime industry. Our goal is to cultivate future leaders, innovators, and ambassadors who will contribute to the growth of the sector. We are also exploring ways to export the knowledge and expertise we’ve gained here to other destinations in the region, creating partnerships that will benefit the entire Caribbean.
As a CEO, how do you balance the operational demands of a busy port with strategic goals like innovation and sustainability?
It’s all about having the right team in place. At Port Sint Maarten, we are fortunate to have a great team that helps us manage both the operational demands and our long-term strategic goals. Over the past 12 months, we’ve made significant investments in our IT infrastructure, which has been a game-changer. We’re transitioning toward becoming a smart port, integrating technologies like AI and automation to improve our processes.The focus is not just on streamlining operations but also on using data effectively to drive business decisions. By leveraging smart technology, we’re able to make more informed decisions that balance operational efficiency with the need for innovation and sustainability. Additionally, we prioritize constant communication with key stakeholders, including the government and other local organizations, to ensure we are aligned in our goals for the future of the island.
What steps are you taking to adopt sustainable practices and reduce your environmental footprint?
In early 2023, we introduced ESG (Environmental, Social, and Governance) within our management framework, and we were the first company to incorporate ESG into our working platform. It's a work in progress, but so far, we've been consulting with government and local stakeholders, who are also becoming more environmentally aware. We've had key discussions and conferences with international stakeholders who are much further ahead in this area, especially some cruise companies and corporations that are years ahead of smaller Caribbean countries.We've learned from them and explored opportunities for partnerships in ESG-related investments. To reduce our footprint, we’ve started switching all our lights to LED, and we’re discussing installing solar energy throughout our buildings and looking into wind energy sources. We're also talking to third-party operators about energy plans that could feed back into the grid.Additionally, we are mindful of the long-term impact on our environment, aiming to ensure that our children inherit an Earth free from the effects of our past actions. While as a small country our role may seem minor on a global scale, we take responsibility for adapting and contributing to the greater good. Our goal is to provide sustainable systems for both our operations and our customers.
In the competitive regional market, how does the Sint Maarten port collaborate with other ports while maintaining its unique value proposition?
There are various platforms through which we synergize certain initiatives. One of the key platforms is the Florida Caribbean Cruise Association (FCCA). Just last month, we hosted a major cruise conference here, with about 100 cruise executives and more than 700 delegates, including government leaders and port operators. Platforms like this create opportunities to collaborate between the cruise industry, the association, and Caribbean destinations.In the past, destinations waited for the cruise executives to create itineraries, but now, many Caribbean destinations, including Sint Maarten, are proactively discussing tailor-made itineraries with the cruise industry. We know our product best, and we’re now focusing on how to package and present it to create new business opportunities.Another area of collaboration is safety and security. During the pandemic, we had to adapt our protocols to ensure a safe port operation. We connect with other safety and security teams from regional ports, sharing knowledge and best practices. Additionally, in the cargo sector, ports are working together on systems like the Port Community System, where local stakeholders can access and share information.While there’s competition between destinations, we also collaborate in areas like logistics, IT, safety, and security. As a Caribbean region, we compete against other cruise markets, such as Alaska and the Mediterranean, so it’s important to enhance our collective offering.
In terms of tourism, trade, and yachting, what is the importance of the US market?
The US market is extremely important for all three areas—tourism, trade, and yachting. More than 80% of our tourists come from the US, so it’s a significant source of visitors. From a trade standpoint, the US is crucial as well, especially for imports like those from Amazon. We have two direct shipping carriers from the US, Tropical Shipping and King Ocean, and we also have a direct cargo carrier from Europe, CMA CGM.
Could you say a few words about your Corporate Social Responsibility (CSR) efforts and how you help the local communities?
Annually, we contribute to several NGOs on the island, supporting foundations focused on children, such as the maritime sailing school and related youth programs. We also invest in nature-related foundations, schools, foster care, as well as culture and arts. For example, we contribute to the Heineken Regatta and the Sint Maarten Music Festival.Our focus is mainly on youth-related initiatives, especially those involving maritime affairs, and environmental foundations. We've worked with nature foundations for over 10 years and continue to support these important causes.
What is your final message to Newsweek readers considering Sint Maarten as a potential investment and/or tourism destination?
Sint Maarten is a dynamic and welcoming destination. With more than 120 different nationalities living on this small 37-square-mile island, it’s a true melting pot. No matter where you come from, you’ll feel at home here, which is a huge advantage.Sint Maarten is an innovative island, open to new investments, and we value true partnerships with third-party stakeholders. Our multicultural environment makes it a prime place for global investors, and we are constantly looking ahead, making investments now for the future.
Is there anything else you would like to add?
We’re celebrating our 60th year in the cruise industry, and with that comes new investments. We will also be rebranding Port Sint Maarten Group, launching a new website, social media pages, and other platforms to enhance the experiential opportunities we offer in collaboration with government, the tourist office, and the private sector. We're grateful for their investments and support in offering the unique experiences Sint Maarten has to offer.