Tropical Shipping and Crowley Caribbean Transport Renew Leases

U.S. VIRGIN ISLANDS — The two major cargo shipping companies serving the U.S. Virgin Islands have renewed their operational agreements with the Virgin Islands Port Authority and solidified their commitment to continue operations in the territory.

VIPA’s Board of Governors authorized Executive Director Carlton Dowe to approve a long-term lease agreement with both Tropical Shipping and Construction, Ltd. and Crowley Caribbean Services LLC at an emergency Board meeting held today. The lease agreements are for cargo operations at the Crown Bay Cargo Facility on St. Thomas and the Wilfred “Bomba” Allick Port and Transshipment Center (the Containerport) on St. Croix. The agreements will also include preferential operational arrangements in exchange for the companies’ financial investment to improve both ports. Dowe will issue letters of assurance to both companies today confirming the new lease agreements.

The emergency meeting was necessary to meet a July 17, 2021, grant application deadline. VIPA is partnering with Tropical Shipping and Crowley seeking funds from the U.S. Department of Transportation (USDOT) to upgrade and modernize the Containerport. The local match for the grant funds will be provided in equal shares by Tropical and Crowley.

Tropical Shipping will also participate in financing the replacement of the deteriorated gantry crane at the Containerport that is used to unload the cargo off cargo ships at the port. The cost of the crane is approximately $20 million.

Tropical Shipping employs 65 persons on St. Thomas and has 55 employees on St. Croix while Crowley has approximately 70 employees on St. Thomas and 65 on St. Croix.