An increase in wharfage fees and port fees was approved at a special meeting of the Port Authority Board of Governors held Tuesday. Agenda items – including approval of VIPA’s fiscal year 2025 budget – were addressed in a brief special meeting held at the agency’s St. Thomas headquarters.
Board Chairman Willard John said Tuesday’s session was needed to tackle financial matters before the next scheduled meeting in October. Officials said they expect the fee hikes will produce revenue needed in part to pay for harbor dredging projects.
“We discussed in detail the motions that we made this morning; one, to allow approval of WICO to increase their wharfage fee by 44 cents … and also we are increasing our port fees, and then the approval of the operating budget,” John said.
Wharfage fees are paid by the cruise ships directly to VIPA whether the berth at WICO or at the Babe Monsanto Terminal in Crown Bay – a VIPA facility. Port fees are charges commonly paid by cruise ship passengers, but passengers on some local vessels – like car barges – are also expected to pay.
Also at Tuesday’s meeting, VIPA Financial Affairs Director Ava Penn told board members about the $199 million spending plan set to take effect Oct. 1. “ … $47 million less than the FY 2024 budget, “which is a 19 percent decrease,” said Public Information Officer Monifa Brathwaite.
That request for funding may change as the spending year progresses, John said, because the agency’s P3 project is getting ready to move out of the planning and design phase. P3 is VIPA’s major capital project plan to revamp and modernize the Henry Rohlsen Airport on St. Croix and the Cyril E. King Airport on St. Thomas.
“That budget is subject to change because the P3 is coming on, and once that occurs we’re going to have to make some adjustments,” the chairman said.
Executive Director Carlton Dowe said once the project management team sets up its offices at the St. Thomas airport, signs of construction should start to appear. “We’re trying to close out this phase that will take us to the following couple of months after February. No later than March 1, we want to do the financial closing and start development later in 2025,” Dowe said.
