The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian company yesterday said it fears losing a $2m modular housing opportunity in this nation due to the coronavirus impacting its Chinese partners and supply chains.

Latrae Rahming, Bahamaren’s managing director, told Tribune Business: “I think for the most part, for most Bahamians, particularly us doing business in China, we do business in three different areas - housing, trade and suppliers. Most of our suppliers are closed depending on the areas. Our supply chain, for the most part, has been impacted.”

Multiple Chinese factories have been closed to prevent the further spread of the deadly virus, which has infected thousands in that country and worldwide, and led to the death of hundreds. These closures, in turn, create logistics and supply chain problems for Bahamian companies as the supply of both finished products and components is disrupted, resulting in shortages.

“Our modular housing project has been suspended because we have Chinese partners,” Mr Rahming added. “Suspended in the sense that it has been postponed due to the government policy that all modular systems must remain in China due to the construction of hospitals.

“It has delayed the modular project for The Bahamas. We were really looking forward to seeing how that could be ready for Abaco and Grand Bahama after the hurricane. Due to the coronavirus the supply chain has to now be redirected to domestic usage.”

Bahamaren signed a Memorandum of Understanding with the China Construction Modular Housing Company in summer of 2018 as a first step in their co-operation on modular housing initiatives in The Bahamas.

“In my estimation the modular project is a huge loss for us,” Mr Rahming added. “I just would say that it has significantly impacted our ability to make money, particularly off of the modular housing. We now run the risk of the Government of The Bahamas finding alternative modular solutions. Because we are not in the market now we run the risk of losing that opportunity.

“We were hoping that we would have set up a house in The Bahamas by the summer period. That looks unlikely, so we are looking at the end of the year.”

No agreement has been signed to-date between the Bahamian government and Bahamaren on any initiative. Mr Rahming, who is the former press secretary for ex-prime minister, Perry Christie, and a close relative of Pinewood MP, Reuben Rahming, said he remains “optimistic”.

He added that he understands the Chinese government is now considering how important manufacturing is to its economy, and it may take the risk of reopening factories because they are “trying to avoid the business being at a standstill.”

“Most of our major corporate clients depend on Chinese imports. Most of our corporate projects have impacted our clients in a way where it has postponed their supply chain arrivals,” Mr Rahming said.

Explaining that these minor disruptions are on a “case-by-case basis”, Mr Rahming gave examples and said: “Any goods that were supposed to be in The Bahamas for September probably won’t be able to come in because you won’t be able to get the manufacturer in time to produce any goods or any customised goods.

“Another one of our clients was supposed to be introducing mobile retail stores. That was supposed to be implemented for the summer period. That project has been postponed because the government in China has closed their factory.

“Another small example was persons who have been importing clothing to The Bahamas. Most of them have been notified by us that until further notice we can’t proceed with the manufacturing of their goods and products. We are trying to encourage our clients that most of this is case-by-case depending on the province, and if it is near the Hubei region it’s a huge possibility that it may be impacted.”

Mr Rahming added that Chinese supply chains will start to open up again from late April as Beijing starts to feel pressure to re-open commerce

“We also import medical supplies from China as well,” he said. “Our medical partner is one of the largest state-owned medical companies in China. We have been notified by them that due to a run on medical supplies in China, they expect this to prolong until the ending of March. So there is a high possibility that we won’t be able to get any medical supplies out of China until this is done.”

Bahamian retailers and wholesalers/distributors of electronic goods are likely to be among those most impacted the longer the coronavirus and related manufacturing shutdowns last, especially those that carry a significant portion of goods from China.

Jeffrey Beckles, the Bahamas Chamber of Commerce’s chief executive, last night said coronavirus-related supply chain disruptions had not been raised as a major concern yet by the private sector. The extent of any disruption and product shortages, he added, would be determined by how long it takes to get the virus’s spread under control.