The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

FREEPORT is failing to reach its potential in attracting a “full spectrum” of businesses in its bid become a true logistics/distribution hub, a Nassau businessman and leading private sector executive said yesterday, urging the Government and the Grand Bahama Port Authority (GBPA) to “put your money where your mouth is”.

Robert Myers, Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chairman and head of the Freeport-based VTrade Company, told Tribune Business that Freeport would continue to “sit in the doldrums” until the GBPA, Hutchison Whampoa - the Freeport Container Port’s majority owner - and the Government could see fit to “get things moving”.

“There has been some activity but it’s been too slow and I think that for the most part there is a tremendous missed opportunity in Freeport,” Mr Myers said. “There are certain businesses that are doing well like BORCO, PharmaChem, Polymers and Hutchison. Those guys are are full container load or bulk logistics providers. The diversity into a full spectrum of businesses that Freeport has the full potential to be that is not happening.”

Mr Myers added that as a businessman, he was not at all “bullish” on Freeport, noting that the one per cent Customs administrative processing fee unveiled in the 2013-2014 Budget had effectively “destroyed” VTrade, the Freeport manufacturer, distributor and logistics firm.

“It’s diminished. We’re trying to hold on to little bits but we are basically wrapping up. We will continue to operate VTrade in a very scaled back fashion but it’s a missed opportunity. As a businessman I’m not bullish on Freeport at all. I’m not bullish on Freeport until such time as the Government and Grand Bahama Port Authority can put their money where their mouth is.

“I don’t think either one of them is managing it very well. GBPA is doing its best to move things along but they re not seriously investing in any major way. Hutchison is investing in its container port but that’s it. You can’t instill confidence like that. They need to figure out a plan, market Freeport and get manufacturing as well as small logistics in there.

“You just can’t do that with the current infrastructure. You can’t move less than container load products out of Freeport. The only focus has been full container loads through Hutchison and MSC. Until they actually listen and start to invest in making that happen you are going to see very limited growth,” Mr Myers said.

“Customs has these policies, not laws but just polices which have significantly impacted businesses. It destroyed my business in Freeport, the one per cent processing fee and the Customs fees. When governments are completely insensitive to what business is doing in Freeport it destroys any potential because it destroys the confidence that businesses have in the government and the Port to make the right decisions to move and grow business in Freeport,” Mr Myers said.

Earlier this year Prime Minister Perry Christie confirmed that the Government had agreed to roll back the new and increased taxes levied on Freeport in the 2013-2014 Budget, in light of commitments made by major companies on the island to expand their involvement.

“They didn’t understand what we were doing and how important being competitive is,” Mr Myers said. “They implemented these fees and wiped out any potential for that business to be successful. They also upset a lot of other people in the process.

“It wouldn’t surprise me if other businesses don’t pack up and leave because the government and the GBPA doesn’t recognise that they need to be totally competitive and they have to actually invest in making that happen. That investment means through sensible agreements that allow business to be globally competitive such as property tax, business licence fees, Customs fees or involvement even.

“In the US you can pay and file all of your Customs declarations online versus the Bahamas where it is still hit or miss whether you can file on line. The government doesn’t seem to understand how to get out of the way of business and growth.”