Virgin Islands Port Authority lays out P3 airport plan, cruise growth and dredging priorities
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Summary
VIPA Executive Director Carlton Dow told the Legislature’s economic committee that a public‑private partnership (Sky City/ViPorts Partners) will finance major terminal work at Henry E. Rolson (St. Croix) and Cyril E. King (St. Thomas), and that cruise calls — especially in Frederiksted — are set to rise. VIPA said it has sought federal grants and
The Virgin Islands Port Authority presented a broad portfolio of airport, cruise and cargo projects to the Legislature’s Committee on Economic Development and Agriculture on March 10, telling senators the agency is pursuing a public‑private partnership (P3) to deliver complete terminal upgrades for Henry E. Rolson Airport on St. Croix and Cyril E. King Airport on St. Thomas.
Executive Director Carlton Dow described the selected consortium, ViPorts Partners (operating as Sky City VI LLC), as the port authority’s private partner to design, finance, build and operate the terminals under a long‑term lease. “Neither VIPA nor the government of the Virgin Islands has millions of dollars needed to complete this major undertaking. Therefore, we are leaning towards a public‑private partnership agreement to modernize and improve the travel experience at our airports,” Dow said. He stressed ownership remains public: VIPA will retain title to airport assets and continue to receive FAA grants.
Airport rehabilitation and P3 timeline VIPA said both terminal projects will be implemented in phases and that financial close is expected in the second quarter of 2025, with construction starting by the end of 2025 or the first quarter of 2026. The authority projects a multi‑year construction period for airport works; some phases will open to operations before full completion. Separately, VIPA said the Cyril E. King runway (10/28) rehabilitation design is finished and a bid package to repair recurring pavement failures was released in early March; VIPA will rely on FAA Airport Improvement Program funds to complete the work.
Parking, passenger services and local funding VIPA described the Dale A. Gregory Parking and Transportation Center — partially open since April 2024 — as a project funded in part by a $20,000,000 EDA recovery grant together with revenues from a rental‑car fee introduced in the St. Thomas district. That fee generated additional local revenues VIPA applied to the project; the authority said the fee model and some vehicle‑rental charges helped support construction.
Cruise, dredging and cargo priorities VIPA reported a projected 11% increase in overall cruise passenger traffic for FY25, with Frederiksted (St. Croix) expected to grow from 57 calls in FY24 to 101 scheduled calls in FY25. Dow said Royal Caribbean Group agreed in late 2024 to pay an additional $5 per passenger (separate from VIPA tariffs) to fund infrastructure at the Anne E. Abramson Marine Facility in Frederiksted so the port can accept Royal Caribbean’s larger Freedom‑class ships. VIPA is also negotiating enhancements with Cruise Terminals International and the private sector to expand berths at Crown Bay and dredge Charlotte Amalie Harbor so larger cruise ships can use Havensight berths.
On dredging, VIPA said it had applied for Army Corps permits and issued a solicitation for a dredging contractor; bids were due in mid‑March. The authority also noted the Legislature had appropriated $17,000,000 toward the Charlotte Amalie dredging project and that VIPA amended its marine tariff to add $3 per passenger to a dredging account effective 1 April 2025 (the tariff change was announced effective 01/01/2025 for some charges).
Cargo projects and federal grants VIPA described MARAD grants for cargo facility improvements (Crombie Cargo Terminal; Wilfred B. Bamaba Alec port) and a matching‑fund structure in which private terminal operators helped provide required local matches. The authority credited partners Tropical Shipping and Crowley with helping secure roughly $21.9M and $22.4M federal awards and noted the port will put the Crombie design to bid in May 2025.
Community facilities and small projects VIPA also outlined terminal maintenance, restrooms and community park design for Saint John, new crew and cargo facility work at Red Hook and Cruz Bay, and reconstruction of the tender landing pier at Anne E. Abramson (Frederiksted), expected to complete by May 2025. VIPA said limited pile supply and damaged piles had delayed the Frederiksted tender‑pier work but that construction resumed.
What lawmakers asked for Committee members asked for supporting details and follow‑ups, including flight counts at Henry E. Rolson Airport, a status update on vendor payments and outstanding invoices, and project schedules and budgets for the cited grants and dredging work. VIPA said it would provide the requested numbers and highlighted the authority's emphasis on partnerships, federal grants and targeted local charges to fund port projects without increasing the general fund burden.
Bottom line VIPA framed the P3 as a way to bring private capital, long‑term maintenance and modern passenger amenities to both principal airports while retaining public ownership of the assets. The authority signaled near‑term action on dredging bids and cargo terminal designs, and flagged the need for continued legislative support for appropriations and enabling measures to meet the projected surge in cruise and air traffic.
