The Tribune

• Urges Gov’t to clarify bidding process status
• Fears facility will not meet global standards
• And 6-7 years without ‘acceptable’ facility

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Abaco’s Chamber of Commerce president is warning “we are all at risk” as she urged the Government to clarify if it has selected a private operator to take over Marsh Harbour’s commercial shipping port.

Daphne DeGregory-Miaoulis told Tribune Business the island will likely be without a properly-functioning shipping port for six to seven years post-Dorian as she voiced fears that, in its present condition, “we are nowhere near to passing” international security standards which could result in the facility being closed to commercial vessels.

Shipping industry sources, speaking on condition of anonymity, told this newspaper that nothing has been heard since August/September last year on the bidding process launched by the Government to find private sector operators willing to finance, redevelop and manage both Marsh Harbour and the north Abaco port in Cooper’s Town.

Fearing the “vulnerability” from Abaco’s key commercial shipping port not being “properly secured, managed and maintained”, Mrs DeGregory-Miaoulis said: “There has been no communication, nothing is going on. There has been no announcement.

“From the Abaco Chamber of Commerce standpoint, we really want to know what is the update. Are their bids being considered? Who are the bidders still in the game? Our most vulnerable points of entry, our marine ports, are left vulnerable.

“I understand recently that the US government came in and looked over the site, and I believe are making some proposals to assist with getting our ISPS certification. We are nowhere near to passing that standard. How can businesses expand, and how can businesses attract new business when we don’t have a secure port of entry for goods to come into the country?”

Challenges in meeting international port standards were nothing new for Marsh Harbour even before Hurricane Dorian devastated much of the island. For the Government-owned and managed port failed its International Ship and Port Security (ISPS) “mock” inspection on June 18, 2019, sparking hasty action to ensure it passed the requirements of the subsequent “actual” assessment.

Any failure could result in Marsh Harbour’s port being closed down, and ships transporting cargo between Florida and Abaco would have to discontinue their services. Such an outcome would likely send Abaco’s economy into a tailspin if it were to occur, given that the island - much like the rest of The Bahamas - imports most of what it consumes.

With its main port of entry closed, cargo freight would likely have to be sent first to Nassau before being transferred to smaller vessels such as mail boats for onward shipping to Abaco. This would result in tremendous cost and shipping time increases, with the extra expense passed on to businesses and consumers in the absence of direct deliveries, undermining the island’s economic revival.

There is nothing to suggest that Marsh Harbour is in any imminent danger of failing an ISPS inspection, though. And Mrs DeGregory-Miaoulis’ reference to US government officials ties in with the last update given by Jobeth Coleby-Davis, minister of energy and transport, in January 2024 when she said the US embassy had partnered with the Government to upgrade the port’s security systems and plans.

Still, one shipping industry source, speaking on condition of anonymity, said it was “shameful” that so little has been done to rebuild the Marsh Harbour port in the almost five years since Hurricane Dorian struck. They added that the Port Department officials at the security gate were still operating from the 20-foot container donated in the Category Five hurricane’s aftermath.

Confirming that “not a thing” has been heard on the bidding process since late summer/early fall 2023, they added: “It’s ridiculous. It really is. It’s just shameful that it’s been going on five years [since Dorian] and nothing has been done. The Arawak Port Development (APD) group was certainly the most qualified, and their proposal required no government financing. It was their own.”

As for the dangers posed by a possible ISPS inspection failure, the source said: “It’s only just a matter of time. The US would not have a lot to think about and could just shut Abaco down. It’s been five years.”

ISPS is a worldwide protocol 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. Tribune Business also previously reported that BISX-listed APD had submitted a bid to manage the Marsh Harbour port.

Mrs DeGregory-Miaoulis, meanwhile, said: “As a consumer the only group I have seen providing any measure of implemented security has been Tropical Shipping, which built their own secure facility so they can import goods that are not at risk for their customers.

“The condition of the port still remains no running water, no toilet facilities. It’s still sub-standard, barely scraping by in terms of security. Those are conditions that nobody should be working under. The RFP that was put out, nothing has been said. Where are they with that is what we want to know. The Government needs to provide us with an update.

“These are real concerns. When our ports of entry are not properly secured, managed and maintained we are all at risk.... As far as the ports go it’s a real mess,” the Abaco Chamber president continued. “Even if they awarded a contract to do it and rebuild the port, that’s 12 to 24 months, so we’re looking at six to seven years post-Dorian before we can have an acceptable port of entry for our cargo and marine imports.

“That’s totally unacceptable. That does not support growth and redevelopment of one of the number one revenue-generating islands in the country as the Government just announced, and we’d like to have an update like all the other islands on where we stand with these ports of entry.”

Mrs Coleby-Davis, speaking in January, maintained that the process for the Marsh Harbour port “takes a bit more time” due to financial constraints, and the Government wanted to ensure whatever decision is made is in the best interests of Abaco residents.

She said: “It takes a little bit more time because we have to consider the financial model of what the proposals are recommending. But we also have to make sure we consider the island and the economic structure, and make sure that whatever is decided is a benefit to the community.”

Tribune Business previously revealed that the Government is eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports revealed that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m”. For Cooper’s Town, the figure was slightly less at $40m in collective equity and debt funding.

Several sources, speaking to Tribune Business on condition of anonymity, described both figures as being on the high side. The sum sought for Cooper’s Town almost matches the $41m investment in its initial construction, which was completed by China Harbour Engineering Company (CHEC).

The tender documents, known as Requests for Proposal (RFPs), revealed that the Government wanted the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed APD, operator of the Nassau Container Port.

For both the Marsh Harbour and Cooper’s Town ports, the RFPs stipulated that a combined 20 percent equity ownership will be “offered for sale to the general public” although it did not specify whether this will be via an initial public offering (IPO) or other method.

The remaining 80 percent ownership interest was to be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake.

Meanwhile, among the expansion opportunities identified at the Cooper’s Town port was a 120-slip marina together with international and domestic warehouses, although no such opportunities were identified at Marsh Harbour, which remains the island’s prime commercial shipping port and cargo point-of-entry.

Both RFP documents stated that each port will be leased to the winning bidder for a 25-year period, in an attempt to ensure they get a return on their upfront capital investment, with the Government wanting them to employ a workforce that is 80 percent Bahamian at a minimum.