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29 Mar 2025 - CRUISING JOURNAL

GPH: Key Legal Challenges in Cruise Port Operations

CRUISING JOURNAL

Global Ports Holding’s General Counsel discusses key legal challenges in cruise port operations.

The activities carried out by Global Ports Holding are extremely broad and complex, spanning multiple and diverse areas of operation. Managing a network of ports provides, on one hand, extensive expertise in all economic, legal, and administrative aspects, enabling the company to be one of the largest and most advanced port operators in the world.

It requires great skill in navigating the specific challenges that arise in managing cruise ports of varying sizes, operating under different national authorities, and facing naturally diverse issues.

Within this vast landscape, a particularly important area of work is addressing the legal challenges involved in managing cruise ports, particularly in relation to sustainability compliance and regulatory trends. To gain deeper insight into these dynamics and the work carried out by Global Ports Holding, we interviewed Dr. Ece Gürsoy, CLO of GPH. As a key figure in this branch of port management, she faces new challenges every day and engages with various legal and administrative frameworks across different jurisdictions.

Among the topics we explored were legal risks in multi-jurisdictional operations, the role of General Counsel in strategic decision-making, and how GPH integrates regulatory frameworks to support sustainability while mitigating risks such as green washing. These are crucial functions that highlight how Global Ports Holding has developed its operations and how it provides a comprehensive, integrated service in the management of the cruise ports under its responsibility.

Ece, first of all, thank you for your availability in sharing more about Global Ports Holding's activities, especially in this legal sector, which, besides being particularly complex, is perhaps less known to the public. What are the biggest legal challenges in operating cruise ports across multiple jurisdictions?

Operating cruise ports across multiple jurisdictions presents several significant legal challenges that must be carefully navigated. One of the foremost challenges is geopolitical risk. Political instability or changes in government can lead to disruptions in operations and may necessitate adjustments to existing legal frameworks.

Another critical issue is the need to adapt to sudden regulatory changes. Each jurisdiction has its own set of evolving laws and compliance requirements, which can change with little notice. Operators must remain vigilant and agile to ensure they are in full compliance, which adds to operational complexity. Entering a new jurisdiction often involves negotiating bankable concession agreements, a process that can be quite intricate. These contracts must balance the interests of both public and private sectors while ensuring financial viability and long-term sustainability. This balancing act can be time-consuming and requires thorough negotiation skills. Additionally, effectively communicating and managing investment risks is essential. Aligning stakeholders' interests and building confidence in risk mitigation strategies can be challenging, especially in unfamiliar or emerging markets where the legal landscape may be less predictable.

Compliance with both local and international laws adds yet another layer of complexity. These legal frameworks may not always align, making it necessary for operators to navigate potential conflicts and discrepancies.

In summary, the legal landscape for operating cruise ports across multiple jurisdictions is multifaceted, requiring a strategic legal approach to address geopolitical risks, regulatory compliance, stakeholder alignment, and cultural differences.

Legal support is therefore an integral part of the services that GPH offers to each port of call, actively contributing to the development of the port itself as well as that of the Holding. How does your legal team support GPH's growth while managing risks?

Our legal team plays a crucial role in supporting GPH's growth while managing risks across all areas of the business. We conduct comprehensive due diligence when evaluating potential port acquisitions or contracts, identifying and addressing legal, financial, and operational risks to ensure GPH makes informed decisions that align with our growth goals. Our team is also key in structuring concession or long term agreements that protect GPH's interests. We focus on creating long-term partnerships through negotiations that offer flexibility, security, and clear expectations, ensuring sustainable relationships with stakeholders.

To mitigate regulatory risks, we proactively implement compliance strategies that keep GPH ahead of regulatory changes, ensuring compliance with both local and international regulations to prevent legal challenges. The legal team also advises on mergers, acquisitions, and joint ventures, ensuring these transactions are legally sound and aligned with GPH's strategic objectives. We assess potential risks and structure deals to maximize value while safeguarding GPH's legal interests.

Additionally, we develop policies that align with international best practices while adapting to the specific legal frameworks of each jurisdiction, promoting growth with effective risk management.

Through these efforts, our legal team enables GPH to grow confidently while managing risks inherent in expansion and new ventures.

It seems to me that the General Counsel plays a crucial role within this management organization. Why is it important for General Counsel to be engaged early in strategic business decisions?

Engaging the General Counsel early in strategic business decisions ensures alignment between legal and commercial teams. This early collaboration helps structure projects with a solid legal framework, ensuring contracts are both legally sound and commercially viable. In public infrastructure projects, due to the complexities of public procurement and government processes, agreements can be difficult to amend. Addressing legal, financial, or operational gaps before finalizing contracts is essential to avoid delays, disputes, or unexpected costs. Early involvement of the Chief Legal Officer (CLO) ensures the project is legally and commercially sound, preventing pitfalls that could jeopardize its long-term success. In my practice, the legal department does more than manage risks and draft documents-it shapes the legal framework by crafting contracts tailored to specific industries and jurisdictions. I don't just react to challenges-I anticipate and address them strategically from the out- set, ensuring agreements align with long-term business objectives.

In today's business environment, the distinction between a General Counsel and a Chief Legal Officer is clear. As a C-suite executive, the CLO plays a critical role in shaping business strategy and driving success. By integrating legal considerations early, the CLO structures deals that mitigate risks, ensure compliance, and drive sustainable growth-transforming legal documents from obstacles into strategic assets.

I imagine that your work differs depending on whether you are managing ports on a long-term basis or approaching a new port for the first time. What are the key legal considerations when GPH expands into a new port or region?

When GPH expands into a new port or region, just as our operations teams do, my first step is to understand the local culture, legal practices, and attitudes toward risk and contractual arrangements. Understanding how the local market perceives what we consider standard contractual provisions is essential to ensuring alignment with local expectations and legal interpretations. Effective communication-rooted in regional cultural and legal practices is key when presenting our tailored, long-term contracts. Our goal is to establish a framework that is not only legally sound but also mutually beneficial, ensuring both parties are aligned and that agreements are practical in execution. At GPH, contracts are not just formalities to be signed and stored. They are strategic documents that help define the port's role in the community. Through our port operations and surrounding retail projects, we aim to contribute positively to the local economy and quality life. That's why it is essential to create legal arrangements that respect local legal traditions while fostering long-term, sustainable relationships. Our contracts protect not only GPH's interests but also those of our partners, recognizing that the infrastructure we develop directly impacts local communities and businesses.

Regulations and legal frameworks play a fundamental role in the organization and management of cruise ports. How do legal frameworks contribute to passenger experience and service quality at cruise ports?

Our various contract templates play a crucial role shaping both the passenger experience and overall service quality cruise ports. One of their primary contributions is ensuring safety, which remains our top priority. When drafting legal contracts, we meticulously design them to secure and streamline passenger movement throughout the port, ensuring smooth operations and minimizing the risk of accidents or delays.

Additionally, the proper use of legal frameworks helps establish high operational standards for terminal infrastructure. This includes not only compliance with health and safety regulations but also ensuring that terminals optimize passenger flow, comfort, and convenience.

By enforcing these standards, legal frameworks help create seamless, efficient, and comfortable passenger environments.

Legal agreements also drive investment in state-of-the-art facilities, technology, and services that elevate the passenger experience. From customs and immigration procedures to accessibility features and environmental considerations, these legal requirements ensure that ports uphold high service standards, fostering a positive and hassle-free journey for passengers.

The cruise industry is constantly evolving and must adapt to new regulations and legal frameworks that impact various aspects, from environmental sustainability to safety and passenger rights. What are the key legal trends shaping the cruise industry?

Key legal trends in the cruise industry include stricter environmental regulations, such as carbon emission controls and shore power requirements, as governments enforce stricter sustainability measures. Additionally, evolving concession models are driving operators to meet higher environmental standards.

Regulatory scrutiny on health and safety has also intensified, particularly post-pandemic, leading to enhanced protocols for passenger and crew safety.

Sustainability is becoming an increasingly central topic in the cruise industry, with evolving regulations aimed at reducing environmental impact and promoting more responsible practices. Sustainability is becoming a bigger focus in the industry. How does GPH integrate legal frameworks to support sustainability goals?

GPH integrates legal frameworks to support sustainability by ensuring concession agreements and operational contracts align with environmental commitments. We uphold strong ESG (Environmental, Social, and Governance) practices, leading projects in shore power adoption and renewable energy use.

As industry pioneers, we drive the adoption of shore power and alternative fuel infrastructure, collaborating with local authorities to develop sustainable port strategies. We also engage in industry-wide discussions to shape regulations that drive greener operations.

In the context of an ever-evolving industry like cruising, regulations play a crucial role in shaping practices and standards. If you could implement one major regulatory change in the cruise industry, what would it be and why?

I would support a global regulatory framework that mandates shore power adoption and greener practices across all cruise ports and operators. This would encourage collaboration among stakeholders-cruise lines, port authorities, and governments-to reduce emissions and enhance sustainability. Additionally, I would push for stricter regulations on waste management and alternative fuels to further minimize the industry's environmental impact.

Thank you very much, Ece. Gaining a deeper understanding of Global Ports Holding's activities highlights the institution's crucial role not only in port management but also in the development of cruise destinations. Your work in legal frameworks and local regulations is undoubtedly one of the most complex aspects of GPH's operations. However, it is the synergy of GPH's diverse expertise that truly sets your service apart and defines its quality.

 

By Gabriele Bassi

29 Mar 2025

CRUISING JOURNAL

GPH: Key Legal Challenges in Cruise Port Operations

Global Ports Holding’s General Counsel discusses key legal challenges in cruise port operations.

The activities carried out by Global Ports Holding are extremely broad and complex, spanning multiple and diverse areas of operation. Managing a network of ports provides, on one hand, extensive expertise in all economic, legal, and administrative aspects, enabling the company to be one of the largest and most advanced port operators in the world.

It requires great skill in navigating the specific challenges that arise in managing cruise ports of varying sizes, operating under different national authorities, and facing naturally diverse issues.

Within this vast landscape, a particularly important area of work is addressing the legal challenges involved in managing cruise ports, particularly in relation to sustainability compliance and regulatory trends. To gain deeper insight into these dynamics and the work carried out by Global Ports Holding, we interviewed Dr. Ece Gürsoy, CLO of GPH. As a key figure in this branch of port management, she faces new challenges every day and engages with various legal and administrative frameworks across different jurisdictions.

Among the topics we explored were legal risks in multi-jurisdictional operations, the role of General Counsel in strategic decision-making, and how GPH integrates regulatory frameworks to support sustainability while mitigating risks such as green washing. These are crucial functions that highlight how Global Ports Holding has developed its operations and how it provides a comprehensive, integrated service in the management of the cruise ports under its responsibility.

Ece, first of all, thank you for your availability in sharing more about Global Ports Holding's activities, especially in this legal sector, which, besides being particularly complex, is perhaps less known to the public. What are the biggest legal challenges in operating cruise ports across multiple jurisdictions?

Operating cruise ports across multiple jurisdictions presents several significant legal challenges that must be carefully navigated. One of the foremost challenges is geopolitical risk. Political instability or changes in government can lead to disruptions in operations and may necessitate adjustments to existing legal frameworks.

Another critical issue is the need to adapt to sudden regulatory changes. Each jurisdiction has its own set of evolving laws and compliance requirements, which can change with little notice. Operators must remain vigilant and agile to ensure they are in full compliance, which adds to operational complexity. Entering a new jurisdiction often involves negotiating bankable concession agreements, a process that can be quite intricate. These contracts must balance the interests of both public and private sectors while ensuring financial viability and long-term sustainability. This balancing act can be time-consuming and requires thorough negotiation skills. Additionally, effectively communicating and managing investment risks is essential. Aligning stakeholders' interests and building confidence in risk mitigation strategies can be challenging, especially in unfamiliar or emerging markets where the legal landscape may be less predictable.

Compliance with both local and international laws adds yet another layer of complexity. These legal frameworks may not always align, making it necessary for operators to navigate potential conflicts and discrepancies.

In summary, the legal landscape for operating cruise ports across multiple jurisdictions is multifaceted, requiring a strategic legal approach to address geopolitical risks, regulatory compliance, stakeholder alignment, and cultural differences.

Legal support is therefore an integral part of the services that GPH offers to each port of call, actively contributing to the development of the port itself as well as that of the Holding. How does your legal team support GPH's growth while managing risks?

Our legal team plays a crucial role in supporting GPH's growth while managing risks across all areas of the business. We conduct comprehensive due diligence when evaluating potential port acquisitions or contracts, identifying and addressing legal, financial, and operational risks to ensure GPH makes informed decisions that align with our growth goals. Our team is also key in structuring concession or long term agreements that protect GPH's interests. We focus on creating long-term partnerships through negotiations that offer flexibility, security, and clear expectations, ensuring sustainable relationships with stakeholders.

To mitigate regulatory risks, we proactively implement compliance strategies that keep GPH ahead of regulatory changes, ensuring compliance with both local and international regulations to prevent legal challenges. The legal team also advises on mergers, acquisitions, and joint ventures, ensuring these transactions are legally sound and aligned with GPH's strategic objectives. We assess potential risks and structure deals to maximize value while safeguarding GPH's legal interests.

Additionally, we develop policies that align with international best practices while adapting to the specific legal frameworks of each jurisdiction, promoting growth with effective risk management.

Through these efforts, our legal team enables GPH to grow confidently while managing risks inherent in expansion and new ventures.

It seems to me that the General Counsel plays a crucial role within this management organization. Why is it important for General Counsel to be engaged early in strategic business decisions?

Engaging the General Counsel early in strategic business decisions ensures alignment between legal and commercial teams. This early collaboration helps structure projects with a solid legal framework, ensuring contracts are both legally sound and commercially viable. In public infrastructure projects, due to the complexities of public procurement and government processes, agreements can be difficult to amend. Addressing legal, financial, or operational gaps before finalizing contracts is essential to avoid delays, disputes, or unexpected costs. Early involvement of the Chief Legal Officer (CLO) ensures the project is legally and commercially sound, preventing pitfalls that could jeopardize its long-term success. In my practice, the legal department does more than manage risks and draft documents-it shapes the legal framework by crafting contracts tailored to specific industries and jurisdictions. I don't just react to challenges-I anticipate and address them strategically from the out- set, ensuring agreements align with long-term business objectives.

In today's business environment, the distinction between a General Counsel and a Chief Legal Officer is clear. As a C-suite executive, the CLO plays a critical role in shaping business strategy and driving success. By integrating legal considerations early, the CLO structures deals that mitigate risks, ensure compliance, and drive sustainable growth-transforming legal documents from obstacles into strategic assets.

I imagine that your work differs depending on whether you are managing ports on a long-term basis or approaching a new port for the first time. What are the key legal considerations when GPH expands into a new port or region?

When GPH expands into a new port or region, just as our operations teams do, my first step is to understand the local culture, legal practices, and attitudes toward risk and contractual arrangements. Understanding how the local market perceives what we consider standard contractual provisions is essential to ensuring alignment with local expectations and legal interpretations. Effective communication-rooted in regional cultural and legal practices is key when presenting our tailored, long-term contracts. Our goal is to establish a framework that is not only legally sound but also mutually beneficial, ensuring both parties are aligned and that agreements are practical in execution. At GPH, contracts are not just formalities to be signed and stored. They are strategic documents that help define the port's role in the community. Through our port operations and surrounding retail projects, we aim to contribute positively to the local economy and quality life. That's why it is essential to create legal arrangements that respect local legal traditions while fostering long-term, sustainable relationships. Our contracts protect not only GPH's interests but also those of our partners, recognizing that the infrastructure we develop directly impacts local communities and businesses.

Regulations and legal frameworks play a fundamental role in the organization and management of cruise ports. How do legal frameworks contribute to passenger experience and service quality at cruise ports?

Our various contract templates play a crucial role shaping both the passenger experience and overall service quality cruise ports. One of their primary contributions is ensuring safety, which remains our top priority. When drafting legal contracts, we meticulously design them to secure and streamline passenger movement throughout the port, ensuring smooth operations and minimizing the risk of accidents or delays.

Additionally, the proper use of legal frameworks helps establish high operational standards for terminal infrastructure. This includes not only compliance with health and safety regulations but also ensuring that terminals optimize passenger flow, comfort, and convenience.

By enforcing these standards, legal frameworks help create seamless, efficient, and comfortable passenger environments.

Legal agreements also drive investment in state-of-the-art facilities, technology, and services that elevate the passenger experience. From customs and immigration procedures to accessibility features and environmental considerations, these legal requirements ensure that ports uphold high service standards, fostering a positive and hassle-free journey for passengers.

The cruise industry is constantly evolving and must adapt to new regulations and legal frameworks that impact various aspects, from environmental sustainability to safety and passenger rights. What are the key legal trends shaping the cruise industry?

Key legal trends in the cruise industry include stricter environmental regulations, such as carbon emission controls and shore power requirements, as governments enforce stricter sustainability measures. Additionally, evolving concession models are driving operators to meet higher environmental standards.

Regulatory scrutiny on health and safety has also intensified, particularly post-pandemic, leading to enhanced protocols for passenger and crew safety.

Sustainability is becoming an increasingly central topic in the cruise industry, with evolving regulations aimed at reducing environmental impact and promoting more responsible practices. Sustainability is becoming a bigger focus in the industry. How does GPH integrate legal frameworks to support sustainability goals?

GPH integrates legal frameworks to support sustainability by ensuring concession agreements and operational contracts align with environmental commitments. We uphold strong ESG (Environmental, Social, and Governance) practices, leading projects in shore power adoption and renewable energy use.

As industry pioneers, we drive the adoption of shore power and alternative fuel infrastructure, collaborating with local authorities to develop sustainable port strategies. We also engage in industry-wide discussions to shape regulations that drive greener operations.

In the context of an ever-evolving industry like cruising, regulations play a crucial role in shaping practices and standards. If you could implement one major regulatory change in the cruise industry, what would it be and why?

I would support a global regulatory framework that mandates shore power adoption and greener practices across all cruise ports and operators. This would encourage collaboration among stakeholders-cruise lines, port authorities, and governments-to reduce emissions and enhance sustainability. Additionally, I would push for stricter regulations on waste management and alternative fuels to further minimize the industry's environmental impact.

Thank you very much, Ece. Gaining a deeper understanding of Global Ports Holding's activities highlights the institution's crucial role not only in port management but also in the development of cruise destinations. Your work in legal frameworks and local regulations is undoubtedly one of the most complex aspects of GPH's operations. However, it is the synergy of GPH's diverse expertise that truly sets your service apart and defines its quality.

 

By Gabriele Bassi