The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Abaco is not taking a “wait and see approach” over further upgrades to its commercial shipping port despite averting the threat of a US cargo shut-down, a local MP revealed yesterday.

James Albury, who is also the Abaco parliamentary secretary in the Prime Minister’s Office, told Tribune Business the near-loss of the Marsh Harbour port’s international freight clearance capabilities had “highlighted the need for some changes in how we operate down there”.

Confirming that a levy on the shipping companies that use the port was being mulled as one option for financing its consistent maintenance, Mr Albury suggested that a private management company and structure similar to the “NAD model” at Lynden Pindling International Airport (LPIA) was another alternative.

Conceding that he “may be getting a little ahead of myself” with the latter proposal, the South Abaco MP added that it was “a big relief” to the whole island that the port had remained open to international freight following last week’s inspection to determine if it was in compliance with international security standards.

The Marsh Harbour port had failed its mid-June mock inspection, but the Port Department and Abaco’s business/shipping community appear to have succeeded in their last-minute efforts to keep it - and its vital global shipping economic lifeline - open in the aftermath of last week’s assessment.

Mr Albury said he had been informed that the US Coast Guard and International Ship and Port Security (ISPS) would likely release their full inspection report anywhere from 45 days to six months after their visit, but predicted there were unlikely to be “any major surprises” in it.

“We really aren’t 100 percent certain when they will make their report available,” he added. “That’s all in their corner to go through their findings, and the speed at which they produce their report is within their control.

“Once the official audit is complete, whatever inconsistencies remain at that time will be highlighted and a deadline to rectify them issued. If there is an issue with fencing and security, that will be highlighted and a deadline issued to address that deficiency or you will lose your international clearance.

“Quite frankly, I don’t think there will be any big surprises,” Mr Albury continued “But I can tell you that the Port Department and local business community certainly aren’t just waiting for that report.

“I don’t think people are going to wait around for the ISPS report. Between the Port Department, the business community, local stakeholders and myself, it’s been a good working relationship to address some of these issues and that will continue. I don’t think it will be a wait and see approach.”

Tribune Business revealed last week how US Coast Guard officials had warned that cargo trade between Abaco and Florida could be shut down after the Government-owned and managed port failed its ISPS “mock” inspection on June 18, 2019.

Captain Troy Mills, the Abaco port administrator, in a “call to action” wrote that Marsh Harbour will be “closed down unless there are some major improvements” made in time for last Wednesday’s follow-up inspection by US and ISPS code overseers.

His letter said: “On June 18, 2019, the ISPS coordinators for the Caribbean along with Lieutenant Commander Justin Matejka of the US coast guard performed a mock inspection of the port facility that resulted in the discovery of a breach in compliance” of both the ISPS code and International Maritime Organisation (IMO) policies.

“As a result of the findings of June 18, 2019, ISPS and US coast guard officers have warned that unless there are some major improvements before the next inspection that is to take place on July 17, 2019, the port of Marsh Harbour will be closed down and ships transporting cargo between Florida and Marsh Harbour would have to discontinue their services,” Captain Mills wrote.

The ISPS is a worldwide protocol that was implemented in the wake of the September 11 terror attacks. Designed to prevent a repeat of such atrocities, it mandated that every country upgrade security infrastructure and procedures around its major shipping ports and the vessels that use them.

Non-compliance with the code raises an immediate “red flag” that threatens loss of both commercial shipping traffic as well as other forms of business, such as cruise ships, for ports that fall into this category.

The worst-case scenario outlined by Captain Mills was seemingly averted in the aftermath of last week’s inspection, as the Marsh Harbour port has continued to receive international freight shipments that represent the lifeblood of Abaco’s economy.

“I think, of course, it’s a big relief,” Mr Albury said of the continued international clearance status. “When these things happen it’s an historical reminder of how important it is to maintain our assets, especially when it comes to life links to the international community. It’s a relief but no one is happy when we come to these things either.”

He reaffirmed that the shipping industry, together with the Port Department and other stakeholders, were in “the very early stages” of developing a permanent financing mechanism that would fund all essential maintenance and infrastructure improvements at the Marsh Harbour port.

The south Abaco MP said this would likely involve “a very small percentage” fee, such as a facility or international facility charge, being levied on the shipping companies that used the port. “It’s such a small percentage that it will not impact the end user,” he added, pointing out that similar fees were levied at the Nassau Container Port and internationally.

“That’s what’s being prepared,” Mr Albury said. “If it turns out that’s not the way to proceed or not the best idea there may be room for a private management contract to reduce the Government’s costs and have a private manager like at LPIA.

“That may be getting a little ahead of myself, and it would have to be something that the Government, Port Department and Customs will have to be comfortable with.... [There] has to be some ways and means so that we are not repeatedly finding ourselves in the same situation.

“Whichever way it ends up being there has to be some reliable funding mechanism in place. The current mechanism has some weaknesses that led to this situation, so we have to fill that gap with a facility fee, private management contract or changing the procedures in how we get funding,” he added.

“Whatever the mechanism is, we’re at that bridge now. This has highlighted the need for some changes in how we operate down there.”

Mr Albury said he hoped to convene another meeting with port stakeholders as early as next week, and added: “I’m confident we’ll get to where we need to be. It’s just a matter of focusing efforts. I have no doubt; it’s just there’s some work to get there.”