The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE majority of the 1,200 jobs set to be created by the Grand Bahama Shipyard’s $665m dock expansion will go to full-time Bahamian workers, the Prime Minister said yesterday.

Speaking at the Government’s signing of a Heads of Agreement for the redevelopment, Philip Davis KC said the $665m capital investment by the Shipyard and its shareholders will “reaffirm” Grand Bahama’s place in the maritime industry and boost the island’s economy via $350m in “total economic output”.

“This is an investment that will repair crucial infrastructure, catalyse the island’s economy and reaffirm this very special island’s prominent role in the maritime industry. We are re-establishing Grand Bahama as a regional and trans-Atlantic shipping hub, ranked among the top shipping operations in the world,” he added.

The project is expected to generate billions of dollars in economic impact for Grand Bahama’s economy over the next 25 years, with the Shipyard becoming the largest cruise ship repair facility in the world. Carnival and Royal Caribbean, the two leading cruise lines, both own 40 percent of the Shipyard with the Grand Bahama Port Authority (GBPA), through its Port Group Ltd affiliate, holding the other 20 percent.

“The Grand Bahama Shipyard will finally see its dry docking facilities not just restored, but expanded,” said Mr Davis. “Two new docks will be built capable of servicing Icon and Oasis class cruise ships. Based on its capacity, this operation will be the top cruise ship and large vessel repair facility in the world.

“The investment and expansion means that Grand Bahama will return to its glory as a leader in the maritime industry.” The Prime Minister said the project will create about 1,200 jobs over the next five years and pledged that his administration will work to ensure working conditions are fair for seasonal employees.

“In five years, we anticipate some 1,200 employees will benefit from gainful employment at the Shipyard, the majority of whom will be full-time Bahamian workers,” said Mr Davis.

“My government remains attentive to the issues surrounding seasonal labour, and so we are working carefully to ensure working conditions are just and fair as we welcome this new, auspicious chapter for Grand Bahama. Once fully up and running, the Shipyard is expected to provide a total economic output of $350m.”

Ginger Moxey, minister for Grand Bahama, said the project strengthens Grand Bahama’s position as the “home of maritime and logistics” and the Shipyard’s status as the island’s largest private non-tourism employer.

“Since its inception, the Grand Bahama Shipyard has been a cornerstone of our local economy, and this ambitious project will undoubtedly inject new vitality into it,” said Mrs Moxey.

“As the largest private non-tourism employer in Grand Bahama, you already play a crucial role in our community. And… with this project, I anticipate even more opportunities for Grand Bahamians and local businesses alike.”

Mrs Moxey said the Shipyard has also expanded its four-year apprenticeship programme and is expected to bring in 20 apprentices annually. “I am particularly pleased to hear about the expansion of your four-year apprenticeship programme, which aims to bring in 20 new apprentices annually,” said Mrs Moxey.

“This initiative will cultivate the technical skills needed in the Shipyard, affirming our belief that education is the great equaliser.”

Grand Bahama Shipyard has been relegated for almost five years to a one-dock operation after it lost two of its three docking facilities to a combination of Hurricane Dorian and an industrial accident on April 1 in that same year of 2019. The loss of its then-biggest dock cut the Shipyard’s revenues by 50 percent.

The first of the two replacement docks, which are being manufactured in China, is set to arrive at the Shipyard in the 2025 fourth quarter and receive its first vessel on New Year’s day 2026. And the second, larger “mega dock” facility that is capable of accommodating the Icon of the Seas, the world’s largest cruise ship, will be received in the 2026 third quarter and go into service before that year’s end.

Linda Turnquest, the Shipyard’s chief financial officer, told the Grand Bahama Business Outlook conference earlier this year that the company is aiming to more than triple its annual turnover to $250m within five years through its investment in the new docks. She added that this will leave the Shipyard “poised to revolutionise the landscape of ship repair” and exploit a market that is “not only stable but thriving”.

Disclosing that the Freeport-based ship repair yard has only “a mere 90 days of” repair dock space to sell this year, she added that for “2025 and beyond our dock is already booked solid with firm reservations stretched out to 2029” by the cruise lines and other vessel types. And the Shipyard already has more cruise vessels booked for 2026 than the 21 it handled during its previous busiest year of 2018.

“We project that our $80m turnover today will grow to $250m within the next five years. This growth is not wishful thinking. It is grounded in the reality of an expanding cruise ship industry demand and the increased demand for LNG (liquefied natural gas) tanker dockings and repairs,” Ms Turnquest said.

“More so, our reputation as being the most efficient ship yard in the Caribbean and on the US eastern seaboard positions us as a prime destination for ship repair and maintenance. The market is not only stable but it is thriving. In 2024, we find ourselves with a mere 90 days of repairs to sell,” she continued, “a testament to the incredible demand for our services.

“Looking ahead to 2025 and beyond, our dock is already booked solid with firm reservations stretching out to 2029.” And while the previous annual record for cruise ships serviced was 21, Ms Turnquest said that “I can tell you by 2026 we currently have more than 21 named cruise ships scheduled for the docks that have not even arrived yet. I think we are world class even as we wait.”

The first, smaller dock, named 2XL, will have the capacity to lift ships weighing up to 93,500 tonnes and accommodate those up to 357.39 metres long. Grand Bahama Shipyard’s previous largest dock could only lift 82,000 tonnes, and Ms Turnquest said: “This dock will be able to dock 90 percent of the existing cruise ship fleet in the world.

“Let me put a little nugget in there. I’m saying this smaller dock. This will be the biggest dock in this hemisphere. It will arrive in Freeport in the fourth quarter of 2025, and we will dock the first ship in it on January 1, 2026.”

However, it will only be the largest until the “mega dock” arrives. That will have the ability to lift 130,000 tonnes and accommodate ships up to 413.96 metres long. Each will come with four Liebharr cranes.

The “footprint” for the new docks is already being dredged, and the $600m project will also see the installation of new mooring pilings to protect them against Category Five strength hurricanes as well as the extension of the Shipyard’s existing finger pier to 722 feet. Power, water and piping upgrades are also required.