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o al WS POR ray —— ae VIRGIN ISLANDS PORT AUTHORITY =| o 2 SSS a I PUBLIC HEARING b éi = a Be eee rere Se 3 - ail ——S—— = ———— %y ST. THOMA? a — MARINE TARIFF AMENDMENTS ——— — |i a TO FEES FOR CRUISE SHIPS BERTHING IN = os a $5 THE ST. THOMAS /ST. JOHN DISTRICT ——— CARLTON DOWE, EXECUTIVE DIRECTOR seks aie i seer SUL RISC) enemas eee OF ieae7 3 7 saee22 eae OCTOBER 15, 2024 BS WY YUE ———_— — 6:00 P.M. tee * = AR ——4 ST. THOMAS, U.S. VIRGIN ISLANDS Ree <i> VIPA TARIFF PUBLIC HEARING OCTOBER 15, 2024         2 ABOUT THE VIRGIN ISLANDS PORT AUTHORITY The Virgin Islands Port Authority was created by Act No. 2375 of the Legislature of the Virgin Islands in 1968 as an autonomous government agency of the U.S. Virgin Islands to manage the territory's air and seaports. The Virgin Islands Port Authority has jurisdiction over the airports, harbors, and public marine facilities under its ownership or control. VIPA generates operating revenues via tacility user tees and rents charged to use its properties. Airports Cruise Ports 1. Cyril E. King Airport - STT 1. Austin “Babe” Monsanto Marine Terminal, STT 2. Henry E. Rohlsen Airport - STX 2. Ann EE. Abramson Marine Facility, STX Ferry and/or Cargo Crown Bay Cargo Port, Crown Bay, STT Charles F. Blair Seaplane Terminal, Charlotte Amalie, STT The Waterfront and Edward Blyden IV Marine Terminal, Charlotte Amalie, STT Urman V. Fredericks Marine Terminal & Noel Boynes Car Ferry Dock, Red Hook, STT Loredon L. Boynes Sr. Dock, Cruz Bay, SU Victor W. Sewer Marine Facility (The Creek), Cruz Bay, SJ Theovald Moorehead Dock and Terminal, Enighed Pond, SU Gallows Bay Marine Facility, Christiansted, STX Svend Aage Ovesen Sr. Seaplane Terminal, Christiansted, STX . Wilfred “Bomba” Allick Port and Transshipment Center (Containerport), Krause Lagoon, STX Gordon A. Finch Molasses Pier, Krause Lagoon, STX S50 RPNADRAN= • • by statute to maintain the public harbors of the USVI, including dredging when necessary • All cruise ships entering the harbors pay port dues to VIPA. WICO collects a wharfage fee from all ships that use its dock. 4 4 2 —~ VIPA’S MARINE TARIFF a's ——— wy ee a= BPE epee: VIRGIN ISLANDS PORT AUTHORITY MARINE TARIFF a ae SS ea ona se = rrr al) oo a ge a ee =) ~ eer ‘| ee a = Es eal if Si im F__/ nn + ee yp eee ae] ST. THOMA? =< \ 4 ee ad oe - oe ST. CROIX, ST. THOMAS & ST. JOHN cae POPP. U.S. VIRGIN ISLANDS pals Effective Jan ry 21, 2023 The Virgin Islands Port Authority's Marine Tariff is published by VIPA Available online: per Section 543, Chapter 10, Title 29 of the VI Code. It was last amended on January 21, 2023. www.viport.com/rates-statistics at HOW ARE VIPA’S ee MARINE TARIFF RATES = ESTABLISHED? en ss ws a lL. 2 SSS ge sae easy tases fen earners noes ee a = oe ses rt — ae ee By = Cruise ship fees are > ey established by the VIPA SS a | Marine Tariff, or via a contract with the cruise lines. = J ihe 3 >... ee Ww wa? —_ ee am ay A public hearing is held it ge POs se. cates a «| > DLA: {1 = Sy a> er a J ~~ the tariff is changed per the = = ~s Sain ti! VI Code. 29 V.I.C. § 543(12) ae = a” > iP — ey The new fees are applied e 3 A, te according to the date KE approved by the Authority's if & ga Board of Governors. IN oe | j~ = “1 Oo Jf WHAT IS CHANGING IN THE VIPA MARINE TARIFF? = Increase port dues by $3 per passenger for cruise ships entering St. Thomas/St. John District to fund the Charlotte Amalie Harbor Dredging Project. Current Rate: $6.84 per passenger New Rate: $9.84 per passenger = Increase wharfage fees by 44 cents per passenger for cruise ships entering the St. Thomas/St. John district to fund marine operations and expenses. Current Rate: $7.80 per passenger New Rate: $8.24 per passenger = The proposed new rates will only apply to ships docking in the St. Thomas/St. John District. This tariff amendment does not apply to the fees charged to cruise ships berthing in St. Croix. = VIPA Board Approved Proposed Increase: September 24, 2024 = VIPA Requested a Meeting with All Members of the Florida- Caribbean Cruise Association (F-CCA): 7 Correspondence dated September 27, 2024 REASONS FOR THE TARIFF CHANGES = §3 Increase in Port Dues to fund the Charlotte Amalie Harbor Dredging Project. ee al VIPA is responsible for dredging the USVI's harbors but does - 7 oe nc ee not have the financial resources to do so. The Government eee of the VI is assisting with funding the Charlotte Amalie Ao) es 3h Harbor Dredging, but it will not cover all costs. VIPA must = = sessed? Fin a ae ee a ae 5 establish a funding source for this and other major harbor Se Slt Pa 2 ee ae dredging projects. _- _ Fo = The $0.44 Cents increase in Wharfage will be used to Of eat a “ie ee > fund VIPA marine operations territory-wide. = aon OS i? # + ‘a Effective Dates of the Increases: ue rv 4 . - Whartage at the WICO Dock January 1, 2025 Se = - Whartage in Crown Bay & St. John by April 1, 2025 & a an << 7g@ =e - Port Dues in the St. Thomas/St. John District by April 1, 2025 -. 2 <: - St. Croix District No change ae 4 - = g; == <== oN. THE CHARLOTTE AMALIE HARBOR PROJECT TIMELINE DREDGING PROJECT =» PROJECT DETAILS Request for Proposal (RFP) End of October 2024 to be Issued - The West Indian Company and some cruise lines (Disney, Norwegian, Carnival) requested RFP Responses Due December 2024 that the harbor be dredged to minus AO feet. Bid Award by VIPA Board January 2025 Anticipated Project Start Second quarter of 2025 - VIPA will dredge the harbor entrance channel to minus 40 Date feet. Anticipated Project 24 months after the U.S. ARMY CORP APPROVED: Completion Date project begins - VIPA has received all necessary approvals trom the U.S. Arm Corps of Engineers to begin the project. WHY DREDGING IS NECESSARY = Ship sizes continue to increase. The harbor channel depth needs to increase Top 10 Largest Cruise Ships for sate navigation of these larger ships. in the World and Weight (Tonnage) = A request was received from WICO for VIPA to undertake the dredging for safety 1.lcon of the Seas (Royal Caribbean): 248,663 2.Utopia of the Seas (Royal Caribbean): 236,473 purposes and to accommodate the larger 3.Wonder of the Seas (Royal Caribbean): 235,600 vessels. 4.Symphony of the Seas (Royal Caribbean): 228,081 = |tis no secret that the cruise industry is a 5.Harmony of the Seas (Royal Caribbean): 226,963 major economic benefit for the territory. 6.Oasis of the Seas (Royal Caribbean): 226,838 Therefore, VIPA has initiated this dredging 7.Allure of the Seas (Royal Caribbean): 225,282 8.MSC World Europa (MSC Cruises): 215,863 9.Costa Toscana (Costa Cruises): 186,364 = Dredging is also needed to address 10.P&O Arvia (P&O Cruises): 185,581 sediment build-up over the years caused by vessel movement in our harbors, storms, and land-side runoff. project. Source: DNV and VesselFinder as of 1] Sep 2024 lO CRUISE SHIP FEES CHARGED PER TARIFF TO SHIPS BERTHING IN THE WEST INDIAN COMPANY LTD. DOCK IN HAVENSIGHT, STT FEE CURRENT AMOUNT INCREASE AMOUNT TOTAL WHICH AGENCY RECEIVES THE FEE PORT DUES $6.84 $3.00 $9.84 VIPA WHARFAGE $7.80 $0.44 $8.24 WICO MARINE TERMINAL TAX PER ACT 7494 $1.00 No change $1.00 VIPA *Only charged in STT/STJ 11 CRUISE SHIP FEES CHARGED PER TARIFF TO SHIPS BERTHING IN CROWN BAY, ST. THOMAS AND CRUZ BAY, ST. JOHN -- CHARGED PER REVENUE PASSENGER FEE CURRENT AMOUNT INCREASE AMOUNT TOTAL WHICH AGENCY RECEIVES THE FEE PORT DUES $6.84 $3.00 $9.84 VIPA WHARFAGE $7.80 $0.44 $8.24 VIPA MARINE TERMINAL TAX PER ACT 7494 $1.00 No change $1.00 VIPA *Only charged in STT/STJ 12 CRUISE SHIP FEES CHARGED PER TARIFF TO SHIPS BERTHING IN FREDERIKSTED, ST. CROIX NO CHANGES WILL BE MADE TO ANY RATES CHARGED TO CRUISE SHIPS BERTHING IN ST. CROIX FEE CURRENT AMOUNT INCREASE AMOUNT TOTAL WHICH AGENCY RECEIVES THE FEE PORT DUES $3.45 No change $3.45 VIPA WHARFAGE $3.55 No change $3.55 VIPA 13          PUBLIC INFORMATION OFFICE: (340) 774-1629 EXT. 6640 MARINE MANAGER’S OFFICE STT/STJ: (340) 774-2250 WWW.VIPORT.COM INFO@VIPORT.COM 14