The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau’s main commercial shipping port is aiming to slash energy costs by between 30-40 percent through its solar energy expansion with key financial indicators already beating 2024 full-year forecasts.

BISX-listed Arawak Port Development Company (APD), in its annual report for the year to end-June 2023, said its 157 kilowatt (KW) solar expansion is designed to drive reductions in energy costs that are already “extremely high”.

“Leading up to 2023, the Company had 36 KW of solar power installed,” APD told its shareholders. “During the year, the company embarked on adding additional solar panels, increasing the solar power by 157 KW. It is projected that the addition will help to reduce energy costs by roughly 30 percent to 40 percent.

“As electricity represents a major cost, the department introduced further cost controls. Light sensors that respond to room occupancy were added to some offices and restrooms. If there is no movement in the space, the lights will go off reducing waste of costly energy.

“Further initiatives planned include purchases of more electrical vehicles (EV) over time, and establishing charging stations for EV. As we are moving towards more sustainable ways of operating business, EV falls within this purview,” APD continued.

“Our plan is to install four charging stations for our EV including the golf carts, which would enable us to measure how much energy our fleet of EV consumes and the less harmful impact on the environment versus that of internal-combustion-engine (ICE) vehicles.”

APD disclosed that its performance for the 2024 first quarter, which covers the three months to end-September, is already exceeding projections although it only produced percentages rather than figures. “Nassau Container Port’s (NCP) TEU volumes as of September 30, 2023, are tracking to close 3 percent over budget,” it added of twenty-foot equivalent unit (TEU) throughput.

“Total revenues as of September 30, 2023, are tracking to roughly 7 percent over budget and our EBITDA (earnings before interest, taxation, depreciation and amortisation) is 53 percent, which is 3 percent more than our budgeted DOM (operating margin) for the same period...

“Although there are quite a number of projects slated to begin or continue in financial year...., management remains conservative and does not foresee a significant increase in project volumes in financial year 2024 over volumes experienced in financial year 2023. Total market volumes are estimated to be around 144,000 TEUs for financial year 2024 or 8,000 TEUs more the 2023 budgeted volumes of 136,000 TEUs.”

Dion Bethell, APD’s president and chief financial officer, writing in the annual report said there are now “clear indications” that the Government wants to move forward with proposals to establish a Customs freight station at Nassau Container Port to clear “flagged cargo”, as well as construct a vehicle licensing and inspection facility, after resolution was reached on how this would be financed.

“In terms of ease of doing business, business development and new revenue generation, three pertinent matters come to the fore,” he said. “Firstly, the construction of a dedicated Customs freight station at the Port, aimed at facilitating the inspection and clearance of flagged cargo, has been a topic of discussion at APD for several years, aligning with our company’s growth strategy and national mandate.

“However, previous government administrations were not minded to engage this project. Furthermore, when APD acquired the franchise to land imported vehicles at Nassau Container Port, almost immediately the notion arose to create a building for the Road Traffic Department that would facilitate vehicle inspection, licensing and insurance providers.

“The idea is to allow importers to drive vehicles off the dock fully up to code in all respects. There is indication that government is ready to move on this proposal as well. In November, there was a clear indication that government is ready to move forward on our proposal,” Mr Bethell added.

“Formerly, the sticking point was repayment to APD for the funds that would be expended to bring this project to fruition. Last year, the idea materialised that importers should be authorised to pay certain Customs fees directly to APD to amortise the costs.”

Mr Bethell also reiterated the importance to APD’s operations of repairing the Nassau harbour breakwaters. “Among our major considerations and actions at Nassau Container Port has been a focus on four matters,” he added. “One relates to the critical environmental goal of greening of our property and operations....

“Top of the list is the rescue of the western breakwater that helps to protect the western access to Nassau, which is in continuing rapid decay. This is of massive importance not only for the safety of Nassau Container Port and related shipping but is of even greater import to the viability of our capital city and of first concern to human life and business.

“I cannot overstate the immense and critical value of the break-water to our business, as well as to the nearby shoreline businesses and tourist attractions. It plays a vital role in ensuring the safety of vessels as they enter the harbour to dock, discharge and load cargo,” Mr Bethell continued.

“Crucially, the breakwater provides extensive protection to the northern coast of the country’s capital, safeguarding it from inundation during storms and other environmental incidents that pose threats to lives and have the potential to disrupt economic activities.

“I once again emphasise that APD remains committed to repairing the breakwater at the western entrance to Nassau Harbour. Since 2021, we have committed significant resources to achieving this goal in terms of securing world-class expertise to assess the state of the breakwater and identifying a highly reputable firm to carry out the necessary rebuilding.

“Success is highly dependent upon government approval and partnership, which we continue to pursue. We will continue to lobby for firm and marketable government approval in that regard.”