By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The reconstruction of Marsh Harbour’s Dorian-devastated commercial shipping port is “just not happening fast enough” amid fears the Government’s preferred public-private partnership (PPP) model will further fuel price increases.

Daphne Degregory-Miaoulis, Abaco’s Chamber of Commerce president, pledged to Tribune Business that the island’s private sector will “keep the heat on as much as possible” over the rebuilding of what was described as the island’s “supply lifeline” for the vast majority of imported physical goods.

Having told last week’s Abaco Business Outlook that a new port “can’t come fast enough” with Dorian’s third-year anniversary having just recently passed, she called on the Government to provide more information and details on its plans and implementation timelines.

“It’s just not fast enough,” she told this newspaper. “Nothing has been done for three years. Nothing. There isn’t even a port a potty that’s there. You mean they couldn’t knock up some sort of bathroom facility for the Customs agents?... The fact that’s our main commercial hub, it’s absolutely imperative that they get moving on the reconstruction of that port.”

Port Department officials and Board members met with Abaco stakeholders in late August to discuss reconstruction of Marsh Harbour’s port, and Jobeth Coleby-Davis, minister of transport and housing, told the same Outlook conference that more information will be forthcoming soon although no specifics were provided.

“I understand the minister saying they want to do it right and do all their planning,” Mrs Degregory-Miaoulis said. “It needs to be completely rebuilt. But put a plan up. Put a billboard up. Give us some indication something is happening. How long is this going to take?

“It’s critical. It’s critical that that port gets rebuilt. It is definitely our supply lifeline. Trust me, we’re going to be keeping the heat on as much as possible, and I was happy to see that local government chimed in.”

Mrs Coleby-Davis and her ministry, shortly after the Davis administration was elected to office on September 16, 2021, issued an expression of interest (EOI) seeking to gain an understanding of the appetite financiers, developers and port managers have for taking over and reconstructing/operating the Marsh Harbour port.

Dion Bethell, president and chief financial officer of BISX-listed Arawak Port Development Company (APD), yesterday confirmed to Tribune Business that the Nassau Container Port operator had responded to the EOI indicating its desire to become involved and bid on the Marsh Harbour port if the opportunity arose. However, no reply had been received to-date from the Government.

Under a PPP model, private capital would be responsible for financing the Marsh Harbour port’s transformation and upgrade. The facility would likely remain in the Government’s ownership, but be leased to a private sector operator for a long-term period, with the fees and charges levied on areas such as container throughput and storage helping to repay the earlier reconstruction financing while also generating an investment return for the manager and its shareholders.

The Government could also opt to take an equity ownership interest in the port operator itself, as it has done with APD. However, Roscoe Thompson, head of the Marsh Harbour/Spring City township, argued that a PPP model for Abaco’s main commercial shipping port may not be in the island’s best interests.

He asserted to Tribune Business that the fees, charges and other levies imposed by a private port operator to repay their financiers and generate a return on investment would result in increased shipping costs. Pointing out that this will occur when Abaco and the wider Bahamas are already grappling with surging inflation, much of which is imported, he added that increased shipping costs would merely be passed on to consumers through higher prices.

Warning that this could also impact ongoing Dorian reconstruction efforts, Mr Thompson told this newspaper: “The port needs to be addressed, but I don’t think a PPP partnership is the way to go. It’s going to cause freight to increase, and groceries.”

With commercial shipping ports in The Bahamas tending to be natural monopolies, he questioned what restrictions or safeguards the Government would seek to impose on any private port operator/manager in terms of an allowed rate of return and the fees charged, much as it had with APD.

“With regards to the cost of shipping, if the Government goes into a PPP partnership with anybody it raises the cost of shipping because a private partner wants to get their money out or a return back,” Mr Thompson argued. “They will tack that on to the shipping companies.

“A container that now costs $6,000 might cost $8,000 to come in. That means groceries go up, building materials, everything goes up in price.” As an alternative, he pointed to his local government body’s proposed partnership with non-profit groups to develop a $4m Hurricane Dorian memorial at the site of the former 23-acre Mudd community - a development that would also encompass a new port administration building and Customs warehouse.

“A portion of the area has been set aside for likely use by the Marsh Harbour port department as the most likely location for a new port administration building and Customs warehouse. This area comprises approximately six acres directly facing the Marsh Harbour port,” the plan stated.

“It is envisioned that the property of the project will be either granted to the Bahamian non-profit to keep in perpetuity as a community space, or be leased to the Bahamian non-profit for a 100-year term at $1 per year in order to maintain the space for the benefit of the Marsh Harbour community,” the proposal continued.

“It is estimated the property will directly employ up to ten persons, and indirectly up to 100 through rented vendor stalls. All revenues generated by use and tenants would be used to maintain the property, with any excess being donated to local Abaco causes as directed by the park board of directors. The board composition and members will be decided by the initial forming committee.”

Mrs Coleby-Davis, addressing last week’s Abaco Business Outlook conference, agreed that “very little action” has been taken to rebuild Marsh Harbour’s commercial shipping port - the main freight gateway into the island - in the three years since the facility was destroyed by Hurricane Dorian. However, she said “more information will be shared with Abaconians in short order” on plans to develop a replacement via a public-private partnership (PPP).

“I wish to advise efforts to rebuild an efficient and secure port system are underway,” she promised. “A PPP was sought to create the performance dynamics of a modern port and develop quality infrastructure for every dollar invested.”