The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMIAN food retailers said yesterday that any tariff rate increase by the Nassau Container Port will ultimately be passed on to consumers, charging that the facility’s monopoly position as New Providence’s sole port left importers with “nowhere else to go”.

Michael Maura, chief executive of Arawak Port Development Company (APD), the port’s operator, told Tribune Business that it would be unable to “indefinitely” maintain tariff rates that had remained the same since operations began almost two years ago, noting that the Nassau Container Port would likely increase its tariff rates by July 1.

In response, Philip Beneby head of the Bahamian Retail Grocers Association, told this newspaper: “If there is an increase in the port charges, that’s going to be felt straight down the line.

“It’s going to have a domino effect, whether it be food retailers or clothing retailers or retailers in general. These increases have to be passed on. Whether businesses import or not, they untimely will be affected.

“The wholesalers are going to increase their prices, and that’s going to be passed on to the retailers, and the retailers will pass it on to to the consumers.”

Mr Beneby, who heads Courtesy Supermarkets, added that unlike many of the larger food retailers, such as AML Foods and Super Value, he purchases locally due to his smaller volume operation.

Phil Lightbourne, head of the Gladstone Road-based retailer/wholesaler, Phil’s Food Servcies, said: “We will have to pass the cost on automatically. If they increase the fees it definitely will have to be passed on. There is nothing we can do.

“This is what happens when you have a monopoly. You can fuss and cry all you want, but you have to go through them unless you plan on bringing in your goods by cargo plane. They are going to do what they have to do to keep the port open”

Mr Lightbourne noted that freight costs were already high, with even fewer shipping companies servicing New Providence compared to three years ago.

Mr Maura told Tribune Business that the private sector was unfairly blaming the port for 30-40 per cent freight cost increases, pointing out that the shipping companies serving Nassau had to make a profit and cover their costs.

Mr Maura said the sector’s rates were on the rise again after recent consolidation had eliminated much over-capacity. As many as four carriers, namely Crowley, Atlantic Caribbean Line (ACL), Seaboard Marine and G&G, have closed their Nassau routes in recent years.