The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE Bahamian Contractors Association’s (BCA) president yesterday warned The Bahamas could face a shortage of ready-mix concrete if Bahama Rock's production halt becomes prolonged or permanent.

Leonard Sands said the loss of domestic aggregate production, as a result of the Grand Bahama producer’s temporary 60-day shut down, has forced concrete suppliers to manage their inventories more carefully, with the possibility that a surge in construction activity could exhaust available stock before replacement shipments arrive.

“We could face a situation where there is no concrete on the island. That's a possibility,” he said. “Now, I don't want to freak people out by saying that that's an imminent possibility, but it's a risk that we now could foresee.”

Mr Sands said he had confirmed that two concrete suppliers are sourcing aggregate from Jamaica, providing a short-term solution following Bahama Rock's temporary departure from the market. However, the additional reliance on imported material leaves the industry exposed to shipping delays and sudden increases in demand.

Mr Sands said one concrete plant was already running very low on supplies and was prioritising which customers received deliveries, while another supplier had received a shipment from Jamaica the previous week.

“With the other plant pretty much going towards empty, now you're going to have all concrete demand supplied by one plant, which is going to pretty much exhaust that supply,” he added.

Mr Sands cautioned that it was too early to predict when the Bahamian construction industry might run out of material, as the BCA did not yet know how much aggregate had been delivered or how long existing stocks would last.

However, he said the prospect of a shortage was a serious concern because concrete is essential to commercial construction, infrastructure works and development projects throughout The Bahamas.

“Project delays are going to impact all projects that require concrete, whether private sector or public sector, infrastructure projects or otherwise,” he said.

Mr Sands added that delays could have wider financial implications for projects operating under deadlines and completion commitments, potentially affecting repayment terms as well as construction schedules.

The BCA president identified several major developments that could place additional pressure on concrete supplies, including the planned New Providence Specialty Hospital project, the Melia replacement at  Baha Mar and the Four Seasons Ocean Club Residences project on Paradise Island. 

He said significant demand from larger developments could leave smaller contractors struggling to obtain concrete if supplies are already stretched. The use of Jamaican aggregate also creates a vulnerability to weather-related shipping disruptions, he added, noting that orders could take around two weeks to reach Nassau.

“If you have a hurricane or you have anything interrupting shipping lanes, then you can't get that aggregate,” said Mr Sands. “That means concrete production stops.”

While he acknowledged that sourcing aggregate from Jamaica has helped maintain supplies, he said imports are not a suitable long-term replacement for domestic production because of the risks associated with relying on shipments from overseas.

The imported material is available at a price point similar to locally-sourced aggregate, the BCA president said, but shipping added to the overall cost.

Mr Sands urged the Government and Bahama Rock to negotiate a solution that could allow domestic production to resume, arguing that the consequences of leaving the situation unresolved could extend beyond the construction industry.

“So I think it speaks to the fact that we need to address this Bahama Rock situation,” he said. “This is relevant in the room, and it affects potentially the GDP of this country.”

The warning comes after Bahama Rock halted production at its existing Grand Bahama operation on September 18, following the depletion of its permitted aggregate reserves and failure to secure the approvals needed to mine additional sources at the former Bahamas Cement Company property.

The company said the shutdown would initially last no longer than 60 days, with 69 hourly-paid employees temporarily laid off from September 21 while it awaits the necessary regulatory approvals. Its proposed expansion has faced opposition from residents concerned about blasting, flooding and other environmental impacts.

In September, Bahama Rock warned that losing its production could drive aggregate costs higher and disrupt construction and infrastructure development. The company has argued that approval to mine the additional site is necessary to secure its future.

However, Freeport Aggregates, a rival supplier based in Grand Bahama, pledged on September 22 to invest a further $9m to expand production and help fill the gap left by Bahama Rock's shutdown. The proposed expansion is targeting completion in the third quarter of 2027 and would require additional land and equipment.

Mr Sands said the BCA is monitoring the supply situation closely but will need more information from concrete suppliers before making a reasonable assessment of how soon shortages might develop.

“If you cannot have the right aggregate, you can't batch concrete. If you can't batch concrete, you can't deliver concrete, and so projects will be impacted,” he added.