The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Questions have arisen over whether the newly-formed Bahamas Marine Pilots Association (BMPA) has any legal standing to perform the services it is offering, with observers fearing the situation may undermine Freeport’s “huge foreign investments”.

Multiple sources have informed Tribune Business that the BMPA has yet to obtain either a Business Licence from the Government or become registered as a Grand Bahama Port Authority (GBPA) licensee, meaning it is unable to provide the independent pilotage services it is advertising.

And this newspaper’s contacts suggested such a licence would unlikely be forthcoming, as it would require the pre-approval of both the Port director and Freeport Harbour Company - two entities that have come under public fire and criticism from the BMPA.

Erin Ferguson, the BMPA’s managing director, did not respond to Tribune Business phone calls and messages seeking comment. But one source familiar with the situation said the Association’s campaign to act as an independent provider of ship pilotage services in Freeport Harbour had “come to a screeching halt” over the licence and other issues.

“They’ve thrown away their careers,” the source said of the pilots who had resigned from the Bahamas Oil Refining Company (BORCO) and Freeport Harbour Company. “The Association does not have a licence from the Port Authority; they have not even offered a fee structure yet. Any sensible pilot in the Association will go back to BORCO.”

Tribune Business’s contacts said the BMPA pilots had also failed to account for the fact they had numerous colleagues elsewhere in the world wanting to come home, with BORCO having received 18 Bahamian pilot applications subsequent to their resignation.

This newspaper understands that the BMPA’s creation and pilot departures were supposed to have been “more cordial” than how the situation has evolved, with several observers believing the Government “is going to have to step in in short order” to resolve the matter.

Freeport’s harbour and various shipping services are the lifeblood of the island’s industrial economy, and Tribune Business has been informed that the BMPA’s claims about safety issues have unnerved the major multinationals that use Grand Bahama.

Among those said to be upset and requesting clarification of the situation are Mediterranean Shipping Company (MSC), Chevron and British Petroleum (BP), a situation that threatens to harm Grand Bahama’s economy.

“This has a huge impact on the existing huge foreign investors in Freeport today,” a source said. “If that harbour doesn’t work, this may well become another Andros.”

And several other contacts suggested the likes of BORCO would not agree to an independent company providing pilotage services in Freeport Harbour, something that it characterised at the weekend as an attempt to build a monopoly.

“There has been little discussion of the fact that while the BMPA is an independent association, the same group is also attempting to set up a second organisation: the for-profit Freeport Pilotage Company, which the BMPA would use to be the sole source of pilotage,” BORCO alleged.

“The clear intention is to establish a for-profit monopoly enterprise for financial gain at the expense of the long-standing, reputable businesses operating in Freeport Harbour. The BMPA has not disclosed any financial capacity, capabilities or infrastructure to take over pilotage. Furthermore, the BMPA has yet to offer any solutions that it will be able to practically implement to address what they claim to be safety issues at the harbour.”

It added: “Right now, many of the members of the BMPA are BORCO employees (or former BORCO employees) who acquired all of their pilotage skills via training and experience at BORCO. Changing these pilots’ affiliation to a third party, for-profit company with little demonstrated resources or capabilities will not improve the safety of BORCO’s marine operations in any way, but rather create unnecessary jeopardy.

“BORCO’s marine operations are very safe, and we stand by the work of our pilots to ensure that safety. Any claim to the contrary is false. The BMPA and its collaborators are the only group making a claim that our operations are unsafe. There are many ports throughout the world where the pilotage services are provided by the port users and not an independent association. Here in the Caribbean, St. Eustatia, Aruba, St. Croix, Maricaibo, Bonaire and St. Lucia have marine terminals that employ company pilots..

“Establishing a for-profit, monopoly pilotage service without resources or sustaining capabilities will not increase safe marine operations, and is in fact irresponsible and driven by financial gain. This ill-guided effort to cause irresponsible harm to BORCO and put undue pressure and constraint to impact our ability to continue providing safe and reliable operations will not succeed.”