St. Kitts launches massive campaign to modernize entry points
The economy of St. Kitts and Nevis requires a large investment in the twin island Federation’s key infrastructure, such as the sea port and airport, in order to position itself as a premier location for financial and tourism investment.
According to Samer Jumean, former Transitional General Manager and CEO of the St. Christopher Air & Sea Ports Authority (SCASPA), the government has taken on that challenge and has begun a massive campaign to modernize the nation’s entry points.
In order to prepare for these changes, the government is promoting the private sector’s participation in these upgrades through a program known as "private public partnership." This means that the restructuring will be developed using joint venture programs between the government and the private sector.
The first big project to be awarded in open competition was a jet fuel facility. Shell Aviation Ltd. won the bid to construct, finance and operate the facility, while paying specific land rental and throughput fees for 15 years, after which the facility will be transferred to the government.
Other airport facilities will now be handled by the private sector. Three requests for proposals (RFP) have already been issued, the most exciting being the one for a fixed base operation that is needed because of the increase in the use of the airport for corporate jets. The new terminal will cater exclusively to these jets and will have VIP amenities. This terminal should be operational by the end of 2007. Meanwhile, conceptual plans are being developed for a new terminal and expansion of the existing one to accommodate greater traffic and movement of passengers.
Expansion of the airport surfaces was completed in November 2006, on time and within budget. The project, from conception to completion, took just over two years. The project included resurfacing the entire runway along with other pavements, constructing a third taxiway, and expanding the parking apron to accommodate six additional wide bodied aircraft.
All of these infrastructure projects are being developed with a keen eye on security. "We will be one of the few airports in the Caribbean with closed circuit television that allows security officers to be in full control," Jumean declared. "This security will be an important incentive for major airlines to use our airport."
The new SCASPA has attracted the attention of many international investors. One company, Interspace, came to the airport with an eye to enhancing the aesthetics and upgrading the marketability of advertising space. Travelers arriving after November saw a modern style of airport advertising.
A new team is also in place at the seaport and it has begun to investigate the opportunities to upgrade the port structure and increase commercial activity. The first task was to revamp the tariff structure. The cruise ship industry is also being studied and SCASPA is forging new relationships with the Ministry of Tourism to attract large foreign investment.
In order to ensure that SCASPA can operate as a business that provides first class service to its clients who are investors and travelers, the organization is being re-structured as a share company with more autonomy. In the first instance, the shares will be fully owned by government. The restructuring will ensure that SCASPA acts as a corporation that is self-sufficient, covers its costs, satisfies obligations and pays its debt.
St. Kitts and Nevis is full of solid investment opportunities. The government welcomes investors with open arms and looks forward to partnerships. "We are extremely serious about finding a partner that is willing to work with us and we are committed to defining the processes and timetables needed to ensure a successful collaboration," Jumean concluded. New acting Chief Executive Officer and General Manager, Errol Douglas, agrees with the views expressed by Jumean. He stressed that SCASPA is actively working on its five-year development plan which will involve much greater private public partnerships.
