The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Up to 90 percent of The Bahamas’ import-driven economy faces a “clear and present danger” from the intensifying harbour breakwater disintegration, Nassau Container Port’s operator is warning.

Dion Bethell, BISX-listed Arawak Port Development Company’s (APD) president and chief financial officer, writing in its just-released annual report again reiterated that “the negative effects will reverberate throughout The Bahamas’ import-driven economy” unless the protective barriers protecting its facilities, Nassau Cruise Port and other nearby assets are restored with urgency.

Revealing that operations at APD’s Arawak Cay-based container port were impacted on between eight to ten days last summer, with cargo ships either unable to offload or dock because of heavy swells that overwhelmed the deteriorating breakwater defences, he said such disruption has increased at least four-fold on an annual basis and sounded the alarm that it poses “a serious threat to life and business at the port”.

“Last year the continued disintegration of the breakwater located just to the west of Paradise Island simulated increasing concern. There were incidents of cargo ships impeded in unloading at Nassau Container Port owing to the powerful sea surges and high winds that prevailed some months ago,” Mr Bethell wrote.

“As climate change accelerates, it is bringing stronger hurricanes and sea surges to our archipelago and neighbouring regions. In the past, services might typically have been disrupted twice a year by high seas. However, this phenomenon has escalated to the point where, over summer 2023, cargo operations at Nassau Container Port were impacted on eight to ten days.

“As I have informed our primary constituents and the press several times, if salutary action is not taken, breakwater disintegration will continue to pose a serious threat to life and business at the port and its environs. It bears repeating that the negative effects will reverberate throughout The Bahamas’ import-driven economy,” the APD chief continued.

“I will again remind decision-makers that 90 percent of international shipping cargo passes through APD’s Arawak Cay facilities. It is grounds for hope that the Inter-American Development Bank (IDB) has already granted The Bahamas a loan of $35m to finance coastal protection and restoration.”

Mr Bethell said the terms of that loan mandate the repair and restoration of the breakwater at Paradise Islands western end, and the breakwater in front of Nassau Container Port’s Arawak Cay facilities. “I reiterate that the current and daily decomposing state of the 56-year-old barrier negatively impacts ship and port operations and personnel, including APD staff, ships crews and stevedores loading and unloading docked vessels,” he added.

“Inclement sea conditions increase danger as the resultant ‘roll’ or ‘pitch’ of cargo vessels being worked can be between six to ten feet up and down. Such occurrences take a significant toll on APD’s cranes and other equipment.” Mr Bethell’s concerns were echoed in the same annual report by his APD chairman, Michael Maura, who was also the port operator’s first-ever chief executive before departing for Nassau Cruise Port.

“As a matter of urgency, we must pay special attention to mitigating factors that have begun to impinge on the quality of port operations from the maritime side,” he added. “Our port partners must seriously address the now continuous degradation of Nassau Harbour’s western breakwater, which poses a clear danger to all port users onshore and offshore, especially the giant cargo carriers and the equally massive cruise ships that carry millions of dollars in cargo and thousands of passengers.”

Just to ram the issue home, APD’s outlook for its current financial year that is due to close at end-June 30, 2024, pledged that the BISX-listed port operator “must continuously lobby for government’s definitive reply to our proposal regarding remediation” of the Nassau harbour breakwaters.

“The now continuous disintegration of the Nassau Harbour western breakwater that trails from the western end of Paradise Island is an ever-increasing threat to cargo shipping and cruise tourism. The Bahamas leans heavily on an import and tourism-driven economy, with 90 percent of international shipping cargo passing through APD’s Arawak Cay facilities,” the annual report said.

“Imports passing through Nassau Container Port are processed by the Government agencies relevant to inspecting imports for soundness, legal conformity and environmental safety, and are empowered to collect government tariffs.

“Can we risk the disruption to this vital locus in the supply chain, ignoring the potential harm to trade and life? We continually warn of the vulnerability of Potters Cay and the majority of Family Island ports. As urgent for consideration is the great rise in simultaneous calls at Nassau Cruise Port by several of the super vessels engaged in the current boom in cruise tourism, bringing thousands of holiday makers to our shores.

“While this country boasts of the rise in tourism receipts occasioned thereby, dare we risk the safety of these visitors, mariners, ships and port infrastructure? As the degradation of Nassau Harbour’s western breakwater represents a clear and present danger, the rehabilitation of this all-important barrier has become imperative. Can we bear the cost of its neglect?” APD continued to warn.

“APD has already done what we can in terms of high-level due diligence in securing world class expertise to assess the state of this breakwater, and identifying a highly reputable firm to carry out the necessary rebuilding. Government’s firm commitment and timely action are now the only energising factors needed to launch.

“The urgency of progress in this area cannot be oversold; greatly at risk are the many large enterprises, particularly hotels and the small enterprises, along the respective western coasts. These include the facilities that line namely Junkanoo Beach and the Fish Fry, our city ports and various small harbours.”

Mr Maura, meanwhile, urged the authorities to “fortify” Potter’s Cay and all Family Island shipping ports which he branded “practically wide-open” to smuggling, tax avoidance and evasion, and the potential trafficking of firearms and other contraband.

“It is also imperative to expand and fortify countrywide port development, shipping safety and the protection and continuous improvement of the vital supply chain and revenue growth for sustainable people, business and national development,” the APD chairman added. “It is incumbent upon us to contribute to high performance border, port and national revenue protection, collection and expansion.

“In this context, all port partners must make consistent contributions towards enforcing regulations regarding Customs, licensing and revenue collection. We need a more supple mechanism to guard against the smuggling of people, weapons and such taxable commodities as alcohol and tobacco to underwrite safer, more profitable port development.

“This is a challenge which increases annually at practically wide-open ports of entry in the Family Islands and at Potter’s Cay. We must make concerted efforts to balance the benefits accruing to participating trade sectors, investors and the workforce who are the drivers of development,” Mr Maura continued.

“At the same time, the challenge is to counter inflation for the benefit of all who call The Bahamas home. For this reason, APD celebrated the launch in July 2023 of the Ministry of Finance’s Maritime Revenue Enhancement Task Force. Its optimal and non-partisan functioning should go far in addressing revenue issues and balance.”