MSC Invests in Grand Bahama Shipyard with Carnival and Royal Caribbean
MSC Cruises is set to become a third investor in the Grand Bahama Shipyard as the yard prepares to relaunch full services in 2026 with two new dry docks, which will be among the largest in the Western Hemisphere. It comes as the shipping giant has also expressed interest in a European shipbuilder and looks to continue to grow its cruise operations.
Terms of the investment were not announced, but the Minister for Grand Bahama, Ginger Moxey, announced the deal on July 1 with MSC becoming a shareholder alongside Carnival Corporation and Royal Caribbean Group. The two cruise corporations invested in the company in 2000 to start the shipyard as a near-shore repair facility for the cruise industry. They each own 40 percent of the shares with the Bahamas through the Ports Group holding the remaining 20 percent.
The investment is being called a major milestone for the Bahamas, which has been anxious to see the yard restored to full operations for its economic contribution to the Bahamas. In 2020, Carnival and Royal Caribbean agreed to an investment that is now reported at $665 million to transform the yard, including building two very large dry docks in China. The yard has been limited in its capacity since its large dry dock broke in 2019 when it was attempting a partial lift of the 225,000 gross ton 1,120-foot-long Oasis of the Seas. The dry dock was sold, and a shortened version operates in Texas, but it left Grand Bahama with limited lift capacity.
Currently, the largest cruise ships have been forced to travel to Europe for their overhauls, maintenance, and regulatory inspections. The cruise corporations have scrambled to find capacity and adjust schedules. Recently, Carnival Cruise Line was forced to pull one of its ships from a yard in Spain due to a strike, which caused it to delay the vessel’s return and cancel a cruise. The cruise line is reportedly seeking compensation from the shipyard after the cruise ship was moved to a dry dock in France.
The first of Grand Bahama’s new docks, named East End, is 357 meters (1,171 feet) long and can lift 93,500 tons. It will have four state-of-the-art cranes and is due to reach the Bahamas by November. It will be ready for operations in January 2026 and will be joined by a second, larger dry dock, to be named Lucayan. The yard is also extending its pier, and once both dry docks are commissioned, Grand Bahama will have the capability to lift the largest cruise ships currently in service.
New East End dry dock completed in China and preparing for shipment to the Bahamas (GBS)
When the yard is at full capacity, it has performed 85 to 100 drydockings a year. It also expanded its operations to manage larger overhauls and refurbishment projects with its wet dock and storage capabilities. With the cruise industry continuing its rapid growth, they expect to surpass the yard’s previous performance. During the off-season for cruises, the yard also performs work for the commercial shipping industry as well as emergency repairs.
Leading the relaunch and expansion of the shipyard will be Grand Bahama Shipyard’s new CEO, retired Rear Admiral from the Royal Canadian Navy, Chris Earl. His appointment was announced in May as David Skentelbery retired after being CEO of the yard for the past eight years. In addition to 35 years with the Royal Canadian Navy, Earl had led all Naval ship and submarine repair programs, commercial ship repair, and shipbuilding in Vancouver for Seaspan Shipyard.
MSC Shipping Group, according to media reports, has also recently proposed taking over the operations of Romania’s Mangalia Shipyard. The government is looking for a new partner after the yard lapsed into bankruptcy, and an agreement was terminated with Damen Group. MSC says it is looking to diversify shipbuilding capabilities away from Asia and could also use the yard for repairs. Longer-term, it has suggested it could look to build cruise ships, ropax, and tugboats in Romania.