THE ROADSHOW for Arawak Cay Port Development's (APD) $10 million initial public offering (IPO), which kicked off last week, has received significant public interest, the company says. APD began the meetings at the Harry C Moore Library in Nassau, and then travelled to Freeport and Eight Mile Rock, Grand Bahama, where its executive management and placement agents also provided an overview of the IPO. Mike Maura Jr, APD's chief executive, explained that by moving shipping operations away from Bay Street, the $83 million redevelopment of the existing Arawak Cay Port into the Nassau Container Port (NCP) and the creation of the Gladstone Freight Terminal (GFT) represent some of the first major steps for the revitalisation of Downtown Nassau. He said the partnership between government, the private sector (shipping companies and Bay Street property owners) and the Bahamian investing public will provide convenient and economical processing of international freight for residents of New Providence and the business community. Mr Maura said: "What we will see very soon over the next three months is two customs transit sheds, so everything that now happens at Thompson Boulevard, which is the complete customs process, is now going to be available on Arawak Cay. It will also be available to importers at our Gladstone Freight Terminal, which is where our less than container load cargo will be handled. "So, it will be far more convenient to the public. "They will no longer have to go down to the dock to pick up their shipping papers, then go over to Thompson Boulevard to pay their Customs duties then go back to the dock. They can knock it all out at Arawak Cay or Gladstone Freight Terminal." He added that there should also be more consistency in the Customs process as a result of the relocation of the shipping industry to one area. "We have one port gate operated by APD in partnership with Bahamas Customs. What we do expect to see as a result of this consolidation of shipping activities to Arawak Cay, is that Bahamas Customs is going to be far more comfortable in their ability to manage, supervise and control the freight processing because they know that there is only one gate that those containers can pass through," Mr Maura said. "It's not a situation where it's spread across six docks. The fact that they have better control is going to create a situation where there is far more consistency for the business community, because you only have one process to have to comply with as opposed to six different processes that actually occur today on the various docks." APD is the result of a Public Private Partnership established by the Memorandum of Understanding between APD and the Government as a 50/50 joint venture. As a result of the MOU and this offering, the Government and the public will now collectively own 60 per cent of these port operations. Ken Kerr, president of Providence Advisors, outlined several attributes that make the IPO an attractive long-term investment opportunity, including a strong, experienced management team, the Port's 20 year exclusivity agreement with the Government and its 45 year lease on the property. "Containerised shipping accounts for 80 per cent of world trade. Ninety-five per cent of what we consume in New Providence comes via shipm so if we have one port and 95 per cent of those goods come in, that underpins the financial viability of the business model. So that strengthens it in our estimation and makes it a good opportunity," Mr Kerr said. The Government recently announced that it will provide loans of up to $5,000 to civil servants who wish to invest in the Arawak Port Development IPO. Mr Kerr also noted that a bottom-up approach will ensure that smaller investors receive first consideration for the one million ordinary shares being offered. According to Dion Bethell, APD's chief financial officer, proceeds of the IPO will be used to defray start-up costs. "The minimum subscription is 50 shares or $500 in increments of 25 shares or $250 thereafter. As for the use of proceeds, we have a bridge facility with Royal Bank of Canada for $43 million. Our intention is to apply the proceeds from this IPO against that bridge facility," Mr Bethell said.