A view of the Ken Wright Pier in Port Antonio, an entry point for tourism in the parish of Portland. - File
Despite criticism levelled at the J$750 million marina in Port Antonio - named after famed movie star, Errol Flynn - for its failure to live up to the promise to attract a large clientele of pleasure boats owned by the world's rich and famous, the operator of the facility, the Port Authority of Jamaica (PAJ), says it is viable and could see a turnaround in fortunes sometime in the future.
The optimism comes amid the continuing global recession and confirmation by the PAJ that it is about to hand out major concessions to one bidder, in an attempt to place the operation of the marina's boatyard in private hands.
And even as Portland-born billionaire Michael Lee Chin, opting to wait out the global economic downturn, has suspended work on the $20 billion redevelopment of the upscale Trident property just outside Port Antonio, persons associated with the marina are putting on a brave face, remaining upbeat about its prospects.
The PAJ says the marina is now full and, despite having experienced a steady decline in yacht calls since it opened in 2006, has welcomed 1,272 boats over the three years. Only last week, one of the world's top luxury yachts, The Mayan Queen IV, dropped anchor at the Errol Flynn Marina. The vessel is owned by Mexican businessman, Alberto Baileres, chairman of Grupo Balco, which is involved in silver mining, department store and insurance businesses.
According to PAJ figures, 383 vessels arrived in 2008, 440 the previous year and 449 in 2006. It says each yacht is charged a daily rate of between US 75 cents and US$1.25 per foot for docking.
"The marina relies heavily on the number of yachts that come," explains general manager, Dale Westin. "All our operational costs, including salaries, are covered from proceeds of the fees."
Good business potential
Westin told the Financial Gleaner: "What we have experienced so far is encouraging. If we get more yachts in, it (Portland's hosting of the marina) will be a winning combination and hence we are holding on. There is great potential for the marina and there are a number of special events that could do well here, so there is the potential for good business."
William Tatham, the vice-president of cruise shipping and marine operations at the PAJ, has dismissed outright criticisms that the marina is underutilised.
"The possibilities are endless for the Errol Flynn Marina. I have heard the talk of it being a white elephant, but it is far from the truth," he contends.
The management of the adjoining Port Antonio cruise ship pier has been added to Westin's responsibilities since February 1, following the termination in November last year of a loss-making lease arrangement with former operator, Westrec, and the Port Authority having given up hope of any real prospect for consistent visits from cruise vessels anytime soon.
"The operations pertaining to cruise vessels coming to Port Antonio have been merged with that of the marina, because such visits are rather less than frequent. The fact is that at this time, Port Antonio can only accommodate vessels carrying some 400 to 600 passengers, and very few such ships are now utilised in the cruise sector plying a route involving Jamaica," said PAJ vice-president for public relations, Pat Belinfanti.
"Until developments take place that herald a change in this dispensation, a separate management structure to deal with cruise ships visiting that port faces the prospect of incurring significant losses," he pointed out.
Scheduled visits
To date, the PAJ is aware of only three cruise liners which are scheduled to visit Port Antonio for the remainder of this year. However, it said, cruise vessel visits to Port Antonio are not always scheduled well in advance.
In the meantime, the PortAuthority is still banking on the marina to spur tourism growth in the north eastern town. It is pursuing a long-term deal with an investor, identified by the PAJ as Rique Ford, who it said has expressed an interest since last year to operate the boatyard. It is not clear whether the PAJ has any intention of privatising the entire marina operations.
"The terms proposed were not a standard lease operation, but a long-term arrangement with significant concessions by the Port Authority. Since that time, we have been in negotiation with the investor in respect of rates for the operation and a draft lease is being prepared," Belinfanti told the Financial Gleaner of the boatyard divestment talks.
Needs commercial operators
The marina, which the PAJ says comprises "the boatyard, the promenade and the marina proper", is shopping for commercial operators of an upstairs restaurant, pool bar and shop.
The concessionaires now doing business at the marina include a Things Jamaican shop; an office of the Tourism Product Development Company; popular haute cuisine restaurant, Norma's; an outlet of Devon House I-Scream; and Lady G Divers, which offers glass-bottom boat tours, scuba and freediving, sightseeing and snorkelling.
Proprietor Jan Lee, while admitting that yachts are not the major source of boat-trip business, is nevertheless upbeat about the prospects for the facility.
"Things have really been good and we are very optimistic that things are going to get better for this facility and for Port Antonio itself."
This optimism should be helped by the completion of the Ocho Rios to Port Antonio leg of the north coast highway, under construction for the past several years.
When the P.J. Patterson-led government announced the development of the marina years ago, some stakeholders in the tourism and maritime sectors expressed the view that the money to be spent on the initiative would have been better spent upgrading the cruise shipping ports of Ocho Rios and Montego Bay.
Was busy port
Port Antonio was at one time among the busiest ports in the Caribbean and is the birthplace of tourism in Jamaica, but has been overtaken by private and state-funded commercial and resort developments in other parts of the island.
The marina project, on which the PAJ spent US$15 million, was expected to re-establish the seaside town as a premiere pleasure-boating destination while opening up business and employment opportunities.
The facility, located directly across from the 64-acre Navy Island, has 32 fixed dockage berths to accommodate yachts up to 600 feet, a boatyard equipped with a 100-metric-ton marine travel lift, a heliport and a state of the art fuelling jetty. It offers 24-hour security, customs and immigration services and amenities such as a crew bar, swimming pool and private beach.
Big yachts pushing others out
The PAJ-appointed general manager of the marina is of the view that it is the answer for members of the Caribbean region's yachting community, said to be seeking new locations.
According to Westin: "A good 90 per cent or more of the yachts in the Caribbean are in the eastern Caribbean."
He admitted: "Many boat owners, when they hear about Jamaica, focus on the negative issue of crime. But those who have visited have not only been pleased with the experience but have helped to spread the word about what we have to offer."
mark.titus@gleanerjm.com