Curaçao Port Authority: Building towards the Future

“Curaçao has so many opportunities. Import and export mainly occur via the maritime industry – it’s really a growing sector. Everything revolves around our waters.”

TEXT NEELAM MELWANI

Curaçao is blessed with incredible natural, deep harbors, and a port that is positioned in such a way that it offers security to vessels docked in its harbors. The trade and dry-dock industries have for many years comprised two of the five pillars of Curaçao’s multi-sectorial economy, the others being oil refining, tourism, and financial services, which too are all linked to the ports; some more directly than others.

In the coming 15 years, the Curaçao Port Authority, a limited liability company whose main shareholder is the Government of Curaçao, has big plans to develop the ports of Curaçao, and the territories along the ports, changing not only the business mix in Curaçao, but determining the island’s future through reorganizing the way Curaçao’s economy develops.

This edition’s cover story is based on an interview with the Chief Commercial Officer of Curaçao Ports Authority, Mr. Raul Manotas, whose job does not just entail attracting investment, but transforming how Curaçao’s ports operate while promoting sustainable economic development in Curaçao.

A Brief History of Curaçao’s Ports
Curaçao has always been a center for trade and ship repair. In 1634, following the Dutch takeover of Curaçao, the Dutch West India Company, opened its operations in Curaçao, making the island a center of trade, with a harbor open to commerce and private traders. Within a decade, the port in Willemstad developed into a small town, focused primarily on offering maritime services. The town was of course called Willemstad. Willemstad eventually became the center of the Dutch slave trade, and was known among the Spanish as a stopover in the illicit trade market. In 1827, Willemstad was declared a free port, eliminating taxes and excise, to attract more trade to its natural harbor.

The first cruise ship made its way to Curaçao is 1901. The potential of the harbor in Curaçao however was finally discovered when the oil was discovered in the Lake of Maracaibo in 1914, and the first floating dry dock, Koningin Wilhemina, was built in 1926. The port also became a center for ship repair and oil refining. In 1960, a company was created to manage the activities in the port of Willemstad. This company was the predecessor of Curaçao Ports Authority (CPA), the LLC founded in 1981, primarily responsible for all Curaçao’s ports and the coastal territories along these ports.

For the first 18 years of its operation, CPA focused on security and efficiency – making sure that Curaçao’s port(s) were safe for ships of all sizes – ensuring quality, efficiency, safety and security to the logistics, oil refining, and dry dock sectors. In 1999, with the rise of cruise tourism, the company broadened the scope of its focus in order to better cater to the island’s economic development by tapping into this emerging sector, building Curaçao’s first megapier.

From Tool Port to Landlord Port
One of the most significant alterations made to CPA over the years was the shift from the tool port model to the landlord port model. Manotas explained “Previously, CPA would also invest in tools and companies would lease them from us to operate their business. In recent years, we’ve switched to a landlord port model, which allows us to make the land available to operators enabling them to operate and invest in projects that support the stipulated objectives of CPA with confidence.”

CPA is responsible for the management of the Port of Willemstad, Fuik Bay, Caracas Bay, Bullen Bay, and St. Michiel’s Bay. “CPA has a bird’s eye view of all the ports and the opportunities each represents, which allows us to strategically plan the development of the ports, and zones accordingly,” explained Manotas. The company has divided the ports and areas around them into different zones, and determines what kind of investments they are looking for – based on the sector and zoning: maritime industrial companies or real estate development companies.

Curaçao’s Ports in the 21st Century
Throughout its history, ports have been central to Curaçao’s development. While the island’s geography gives it a strategic advantage, Manotas explained, “We need to use the resources we have. The sea port in Willemstad has its limits that impede further development – amongst others, its depth and the fact that the bridge prohibits boats higher than 55 meters from entering parts of the harbor.”

CPA therefore sees the added value of complimentary port development in Curaçao, creating new opportunities for progress, for example at Bullen Bay. According to Manotas, “To move forward, we need to start development of Bullen Bay as a deep sea port and use it for maritime industrial development. There is so much potential there, and the development of Bullen Bay will really determine Curaçao’s future.” According to Manotas, the development of Bullen Bay would also let Curaçao take better advantage of international developments. The expansion of the locks of the Panama Canal, for example, could allow Curaçao to serve as a transshipment hub, if the ports could receive these new larger vessels. Manotas noted that this would very much be possible at Bullen Bay.

CPA has developed a zoning and cluster plan for Curaçao’s ports, determining which areas should be used for maritime industrial services, and which parts would best work for tourism, or retail. “We want to strike the ideal mix of local and international investors, stimulating small and medium enterprises, while also injecting consistent growth into our economy through sustainable port development.” Manotas added that, Bullen Bay, in their view should really be used for maritime industrial purposes, while Sint Anna Bay should be developed to add value to the downtown historical center.

CPA is ultimately also concerned about the environmental impact of port development – environment is therefore a fundamental part of the port development equation. CPA is ISO 14000 certified, and they are encouraging other companies in the port to ensure compliance with this certification as well. “The resources we have are natural,” Manotas said, “Making sure that investors or companies do not destroy our coastal waters and territories through their operations sits among the top of our core principles – the effects of which can be detrimental, especially for a country focused on tourism as well as industrial development.”

Port cities and countries around the world, too, are seeking the appropriate mix in terms of how best to use their ports. Manotas explained that a unique selling point of Curaçao is the network we could create between Bullen Bay as a seaport, the airport, and the free trade zone. To do this, it is imperative that Curaçao continues to expand on the premise of a network port model. “This requires increased connectivity, cooperation and synergy across sea, air and land clusters. ”

The Potential of Cruise Tourism
In the recent years, the cruise tourism industry has grown significantly and Curaçao still has a lot of untapped potential. Right now, approximately 600,000 cruise tourists come to Curaçao each year. It is estimated that each cruise tourist spends about 75 USD in Curaçao, reaching a total of 45,000,000 USD per year. While this is already significantly contributing to the island’s economy, Raul Manotas noted, “Our goal is to allow Curaçao to cater to 1,000,000 cruise tourists per year, and increasing the daily average spending from 75 USD to 100 USD. It is for this reason that we will start developing Curaçao’s second mega-pier at the end of 2016.” The new mega-pier at Rif Seaport will be able to receive the largest cruises traversing the world’s oceans, the Oasis and Quantum class. Manotas added, “According to the cruise companies, these are the largest ships we’ll be seeing in at least the coming ten years. What we’re also seeing is that smaller higher priced cruises appeal more to tourists than before – they are more comfortable and intimate – providing a refined cruise experience.”

To attract more cruise tourism, Manotas explained that CPA, responsible in large parts for these negotiations, often partners with regional destinations. This is important because cruise companies do not provide guarantees, so a port could be developed and prepared to receive cruise ships without guaranteeing that the island will be included in the routes determined by the cruise company. According to Manotas, “We are located in the deep southern Caribbean area, so we need to connect with other partners in the South to provide a feasible itinerary. We work together with Aruba on this very often. With the second mega-pier in the pipeline, Aruba was an important partner. They too are developing to cater to these larger ships.” Together, the two islands are among few ports in the region where the Oasis and Quantum class ships will be able to dock – this gives the islands a strategic edge over other parts of the region.

“We often negotiate with cruise lines and the Florida-Caribbean Cruise Association (FCCA) by offering them a customized itinerary product.” Recently, together with Panama, Colombia, Dominican Republic, and Aruba, Curaçao presented an itinerary to these stakeholders. Building itineraries with partners is appealing to the cruise ships because it gives them five reasons to travel south, below the hurricane belt, rather than just one.

In addition, Manotas did mention some of the measures taken to ensure the flourishing of the cruise tourism industry in Curaçao. “To remain competitive, we provide cruise lines incentives. Recently, we incorporated a new kind of reduction, the volume discount. Essentially, this means that based on the number of passengers a cruise ship brings to Curaçao, they will receive a percentage discount on the applied user fee. We also apply discounts during low season, to make sure there is consistency in the cruise market.”

The Industrial Edge
The port of Willemstad is steadily becoming a more important asset to the island. Recently, Damen Shiprepair and Conversion signed a concession with the Curacao Dock Company (CDM), and will start operating from Curaçao, using the existing areas and increasing its operations in Curaçao. SubCom, an undersea cable company, recently expanded its presence in the port and moved all its operations in the Caribbean to Curaçao.

With a new concession with Damen, it is imperative that Curaçao continues to develop its maritime industry, in a large part through private-public partnerships. “The deal we signed with Damen is a great start.” Essentially, as Manotas explains, this deal will allow Curaçao to become a center for ship repair and possibly even sustainable dismantling of vessels, something that is still largely scarce in the region.

In addition to this, CPA and a Spanish cement company recently signed a letter of intent to bring the production of cement to Curaçao and utilize Curaçao’s position to better connect the company with the Latin American and Caribbean market. The cement company will be run in a sustainable way with limited environmental impact. The fact that they will be moving to Curaçao sets a clear pattern for future investment.

“The idea is to continue to attract stakeholders that add strategic value to the ports of Curacao, especially for the industrial cluster of the economy.” Nonetheless, Manotas did indicate that this is a tricky business, most of these projects are expensive, and require large investments that CPA looks for internationally. Maritime industrial projects are not the only ones in the pipeline; real estate projects in the port also make Curaçao more attractive for international investors.

Reshaping Willemstad
Similar to the Curaçao Tourism Board and other partners in the tourism sector, CPA has a master plan that includes its properties in the downtown area. CPA collaborates with partners like Curaçao Airport Holdings, Curaçao Industrial & International Trade Development Company, the Ministry of Economic Development and Ministry of Traffic, Transport and Regional Planning. Collaboration between the organizations ensures alignment.

Essentially, the fundamental idea of CPA’s master plan and the Tourism Master Plan is the same: make downtown Willemstad a great place to live, vacation and work. This means investing in real estate development and prime waterfront properties. According to Manotas, “Sint Anna Bay needs to become a spot for renovation and innovation – a mix of retail and residence that keeps people coming back downtown.” A large part of Curaçao’s downtown is a UNESCO World Heritage Site, adding to Curaçao’s unique mix. “While our objective is to increase the number of cruise tourists, we acknowledge the opportunities the downtown properties present in regards to the stay-over tourism industry. The city center has to cater to tourists’ needs.” In CPA’s plan, the downtown area will have the perfect mix of hotels, apartments, restaurants and stores, to keep people coming back for more.

For CPA, this means promoting the availability of duty-free products, high-end products, and artistic and cultural products. In addition, it means continued development in the ‘experience’ of Willemstad, including the food and beverage and recreational industries downtown. According to Manotas, the only way to accomplish this is to ensure that people want to live downtown again. CPA is currently negotiating the conditions of the development of the ‘Kop van Scharloo’ being part of the Sint Anna Bay with potential international investors.

Curaçao’s Future
“At the end of the day, CPA’s vision is to contribute to the sustainable economic development of Curaçao, that means a lot more than identifying international partners – it means supporting the SME sector as well, giving them adequate space to grow and develop.” For example, the creation of the second mega-pier, and the renovation of the first, will be a unique opportunity to ensure that the SME retail sector is able to equally and fairly participate in the local market in this industry.

CPA is always looking for bright young minds to contribute to their work. “My one advice for future generations is to study. Educate yourself and learn about what’s out there. That’s one of the biggest success factors in life – that paper that says you obtained your degree, but more importantly it helps you add value to the development of your country.” CPA is regularly present at career fairs, both locally and internationally, providing students with information about the work of CPA and opportunities to work at companies based in Curaçao’s ports. “We look for companies that will create jobs in the local job market, and who will invest in our people.” A large part of the concession deal with Damen, for example, was their investment in a training academy for locals who would want to work at the dock.

CPA’s plan for Curaçao’s port development is long-term, and the impact that this could potentially have on Curaçao’s economy is significant. Moving forward, as Manotas mentioned, “Collaboration with local and international partners is key.” Stakeholders in Curaçao will need to work together to make sure that this is all possible. Curaçao has always benefited from its diverse economic portfolio; this is what makes the island unique in comparison to other Caribbean islands. CPA envisions a Curaçao that continues to get the most out of this diversified economic portfolio – striking the perfect balance between tourism, industrial maritime services, trade and environmental protection. “CPA’s activities serve as a catalyst for Curaçao’s economic development, but the development of Curaçao is something that we need to work on together. We can’t guarantee the success of our diversified economy if we do not collaborate to make it possible.”

The inherent nature of an island is its dependence on marine based activity. For Curaçao, a country with limited local production, focusing on sustainably developing waterways and ports offers a wide-reaching spin-off effect for the overall economic development of the island. It is imperative that Curaçao continues to expand its possibilities based on utilizing one of its greatest resources: the waters that surround it.