The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau Cruise Port’s top executive yesterday asserted that the project to supply cruise vessels with 60 mega watts (MW) of shore power will generate multiple economic “wins” for The Bahamas.

Michael Maura, revealing to Tribune Business that both Nassau Cruise Port and BISX-listed Arawak Port Development Company (APD) are members of the Island Power Producers consortium selected as the preferred bidder by the Government, said the project’s benefits will extend beyond simply boosting The Bahamas’ competitiveness as a cruise destination.

Besides enhancing this country’s tourism lifeblood, he added that the liquefied natural gas (LNG) fuelled ‘shore power plant - which may ultimately also be capable of burning hydrogen - represents a back-up generation source that Bahamas Power & Light (BPL) can turn to when its own units go down so as to avoid the load shedding that has plagued New Providence in years past.

Declining to provide further details on Island Power Producers’ plans, given that it is still negotiating terms and details with the Government, Mr Maura would only tell this newspaper that other consortium members are international companies with a strong track record and expertise in doing what is required to provide ‘shore power’ to cruise vessels and other ships when docked in Nassau.

He added that the LNG fuel would arrive at Arawak Cay by ship, then be taken by an underground pipeline below APD’s property to the consortium’s power plant located some 700-800 feet away from the berth outside the Nassau Container Port’s boundaries.

Dr Hubert Minnis, the former prime minister, is among those to have challenged the ‘shore power’ deal. In particular, he questioned why no public offering of shares via an initial public offering (IPO) has been confirmed to give Bahamians a chance to own part of the project or Island Power Producers and thereby increase their wealth.

Mr Maura, who is also APD chairman, declined to comment on this yesterday, but Tribune Business understands that an IPO structured similar to APD’s - where Bahamian investors purchased a combined 20 percent equity stake in the container port - has not been ruled out once an agreement has been sealed with the Government and construction is underway. This, in effect, de-risks the investment for Bahamians.

In the meantime, APD’s 12,000 investors and the 3,000 who acquired the 49 percent collective Bahamian ownership interest in Nassau Cruise Port, will have an indirect interest in the ‘shore power’ investment as will the Government via its own 40 percent APD stake.

Mr Maura, meanwhile, said cruise industry trends and investments designed to deliver on the sector’s commitment to slash greenhouse gas emissions and reduce its carbon footprint mean there is a strong justification for The Bahamas to introduce ‘shore power’ itself.

Noting that the Port of Miami in June commissioned shore power berths that will be used by most of the cruise lines that visit The Bahamas, the Nassau Cruise Port chief disclosed that Royal Caribbean has already voiced interest in having its ships connect while docked in the Bahamian capital.

Miami’s berths will serve Carnival, Royal Caribbean, Virgin, Mediterranean Shipping Company (MSC) and Norwegian Cruise Line, and Mr Maura said two of the vessel to most frequently call on Nassau - the Carnival Conquest and Royal Caribbean’s Freedom of the Seas - have become the first to hook-up to its shore power.

“When we look at our Nassau calls, Carnival Conquest and Freedom of the Seas are regular customers of Nassau Cruise Port,” he told Tribune Business. “As an example, in 2025, we will welcome the Carnival Conquest some 61 times and the Freedom of the Seas will visit 45 times. These are just two examples of ships connecting in Miami and there will be many more.

“These ships happen to be Nassau Cruise Port customers. They are shore power ready, and the expectation will be that if they can connect in Miami they will be able to connect here.... Royal has expressed interest in Nassau being shore power ready in conversations.”

Mr Maura said 67 percent of Carnival’s existing fleet is now shore power capable, while all Royal Caribbean’s new builds will also be able to hook up while in port, thus giving an indication of industry demand. He added that the industry is also retro-fitting all older vessels where it makes economic sense to do so in order for them to be shore power capable.

“That helps to provide a strong case for the justification of the port investing in shore power,” Mr Maura said. “If you look at shore power we, too, within our small community of New Providence we must all - not just Nassau Cruise Port but Nassau Container Port and other operators throughout The Bahamas, creating and having businesses in The Bahamas - reduce our carbon footprint.

“We at Nassau Cruise Port have to compete with other destinations, and if we can support the efforts of the cruise industry - which has made a substantial commitment to reduce its carbon footprint - we want to do that.”

Mr Maura said cruise ships constantly analyse their fuel burn while in port, the need to run their generators, and the costs associated with their hotel-style operations. “That’s a lot of energy consumption, and if we can help them reduce that energy burn on ship by plugging in while in port, that’s a win-win,” he told Tribune Business.

“We’re very committed to that and see it helping to support the very strong demand Nassau has enjoyed as a cruise destination. Tourism is the lifeblood of our economy so for us to make the effort with these ships supports the continuity of tourism and, more importantly, the economic impact of tourism.”

Besides the benefits for tourism, Mr Maura said the 60 MW shore power project will also aid BPL while boosting the energy industry and wider economy. “It also supports the diversification of the economy within the island of New Providence and the country of The Bahamas,” he added.

“Our reality is that our sate-owned enterprises struggle with efficiency and competition, and have always been troubled by political interference in that they are not run as efficiently as the private sector entities. I think the addition of a 60 MW power plant that provides shore power to cruise ships and ships in general, there’s two wins here.”

The Nassau Cruise Port chief said the creation of a 60 MW plant fuelled by LNG and, eventually hydrogen also, “brings power resilience to BPL” by offering redundant generation when its own units fail. “This is at a time when BPL continues to be dependent on rental units,” he added.

“The possibility of also being available to BPL, should BPL find itself in need of temporary power support of supply if it has an engine failure, BPL will be able to pull power on a temporary basis from Arawak Cay rather than consumers having to experience outages and load shedding.

“We see the power plant as being a very sustainable tool and resource for BPL and, by extension, the Government. The other point to realise is that it’s not costing the Government a penny as private sector monies are going into constructing the plant and operations of the plant but the Government and BPL will benefit from the plant.”