Bahamas Formalized Agreement to Create Global Leader in Ship Repair
The government of the Bahamas highlights that it signed a Heads of Agreement with the Grand Bahamas Shipyard to formalize the ongoing work to revitalize the repair facility and expand its capacity. The yard which is owned by Carnival Corporation, Royal Caribbean Group, and the Bahamas, is making a $665 million investment which Bahamian officials are highlighting will make it the global leader in ship repair both for cruise ships and commercial vessels.
During the signing of the formal agreements on August 29, Bahamas Prime Minister Philip Davis highlighted the project as part of economic growth for the country and specifically Grand Bahama Island. The island was badly damaged five years ago in a hurricane and then the shipyard lost critical capacity when its largest dry dock failed. In April 2019, Grand Bahama was executing a partial lift of one of the world’s largest cruise ships, Royal Caribbean’s Oasis of the Seas, to undertake urgent repairs when the dock cracked and one of the cranes toppled over hitting the cruise ship. The dock was not salvageable and sold.
Planning for the new capabilities began in 2019 but was delayed during the pandemic. Orders were finally placed in 2023 for two new dry docks that are being built at CSSC Qingdao Beihai Shipbuilding Company in Qingdao, China. One of the docks will have the largest lifting capacity in the world meaning that the shipyard will be able to service all the cruise ships in-service and planned as well as a broader range of vessels in the global commercial fleet.
The Prime Minister highlights the investment will provide an estimated 1,000 to 1,200 jobs on Grand Bahama with many going to Bahamians. They forecast the economic output of the yard once the new facilities are operational would reach $350 million annually.
The CEO of Grand Bahama Shipyard, Dave Skentelbery reported that work is underway on infrastructure upgrades at the shipyard. This will include a pier extension as well as increasing the depth at the docks. Skentelbery called the signing of the agreement another step forward for the shipyard and its expansion.
The first of the new dry docks is now scheduled to arrive in January 2026 and the second is expected in the third quarter of 2026. Both will be registered in the Bahamas with the larger one named Lucayan Dock and the second one East End Dock.
The shipyard will become the largest cruise ship repair facility in the world. Presently, the largest cruise ships must travel to Europe for their scheduled overhauls and maintenance. Grand Bahama services cruise ships mostly during the shoulder season for the industry and in the remainder of the year its capacity is available to the commercial industry. The shipyard was also working to develop its operations to support more overhauls and refits of cruise ships which are also expected to resume after the cruise lines slowed investments to recover from the pandemic.
Grand Bahama Shipyard was conceived by the cruise industry to provide a nearby maintenance and repair facility close to its primary homeports in Florida. The current operation began in 2000 and has grown with the industry with the Bahamian government officials now saying it will become a world-class facility and locus for global ship repair.