By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau’s main commercial shipping port says the “serious” challenge created by deteriorating harbour breakwaters may not be tackled until end-2024 at earliest as the Government ramps up Budget funding.

Dion Bethell, Arawak Port Development Company’s (APD) president and chief financial officer, told Tribune Business in a series of written answers that it had been informed by the Government that repairs are unlikely to begin before this year’s fourth quarter or early 2025 amid plans to access the necessary financing via an Inter-American Development Bank (IDB) loan.

“The Government of The Bahamas has indicated their commitment to the repairs of the breakwater through a loan from the IDB,” he confirmed. “In our most recent communication on this matter we have been advised that work may not get underway until the 2024 fourth quarter or 2025 first quarter.

“We remain hopeful. As global warming and climate changes continue to rise the problem remains serious as we continue to experience adverse conditions in our channel related to an improperly-functioning break water system.”

The Government, in its 2024-2025 Budget, has signalled that it plans to invest $17m over the next two years in improving Nassau harbour’s defences against adverse weather such as hurricanes and the fall-out from climate change.

Some $12m, of which $5m is due to be spend in the upcoming fiscal year, has been allocated to “construction of breakwaters at Junkanoo Beach Long Wharf”. And a further $5m, of which $2m is earmarked to be spent in the 2024-2025 fiscal year, is dedicated to funding “nearshore works at Junkanoo Beach Long Wharf”.

BISX-listed APD last year warned that repairs to Nassau harbour’s breakwaters were becoming ever-more urgent with “interruptions” to the unloading of cargo vessels “increasing” in recent months. Mr Bethell said then that while services have typically been disrupted twice a year by high seas this had escalated to the point where, over summer 2023, cargo operations were impacted on eight to ten days.

This poses an ever-increasing threat to The Bahamas’ import-driven economy, with 90 percent of international shipping cargo passing through APD’s Arawak Cay facilities. The Bahamas, though, has received IDB financing for coastal protection and restoration, and the APD chief said “included in that is the repair and restoration of the breakwater at the western end of Paradise Island and the breakwater in front of our facility”.

The breakwaters, which function as Nassau harbour safeguards, have been in place since Majority Rule some 56 years ago but are “no longer able to absorb the energy from the ocean” especially at high tide or during rough weather.

This impacts “the channel” cargo vessels use to access Nassau’s major commercial shipping port, and complicates the work of APD staff, service providers and ship’s crew in unloading and working on the boat. The “roll”, or pitch, of cargo vessels in such circumstances can be between “six to ten feet up and down”, which is unforgiving on APD’s cranes and other equipment and results in significant wear and tear.

While vessels can still safely enter and exit the Arawak Cay-based port, APD has previously said it “won’t compromise” on safety. Junkanoo Beach, and the area in close proximity to The Pointe, were already selected as one of the sites to benefit from the $35m IDB loan in a bid enhance coastal zone management and related infrastructure in the face of climate change impacts.

APD, in previous annual reports, reiterated that failure to repair Nassau harbour’s western breakwater could “result in immense damage to, and threaten life”, in the city centre. It added that reversing the continued deterioration of this protective barrier against storm surge and high seas remains on its “front burner” due to the danger posed not just to its own viability but Nassau’s cruise tourism product.

Meanwhile, Mr Bethell confirmed that APD remains interested in the bid to take over and manage Marsh Harbour’s port even though this will “never be a significant revenue stream for the company”. He added that no response has been received as yet from the Government to a proposal that was submitted in summer 2023.

“We remain interested in developing operating the Marsh Harbour, Abaco port.  We are certain that our proposal to the RFP and the Government is the best option to the Abaco business community and the residents of Abaco,” Mr Bethell said. “We have not received any response from the Government of The Bahamas on this project and our proposal. 

“This project is important to APD from the standpoint of nation building and Family Island development. This project would never be a significant revenue stream for APD.  We are certain that with our expertise and experience we could provide Marsh Harbour with the necessary security plan and framework to pass its ISPS (International Ship and Port Security) audits and assessments.”

Shipping industry sources, speaking on condition of anonymity, told this newspaper that nothing has been heard since August/September last year on the bidding process launched by the Government to find private sector operators willing to finance, redevelop and manage both Marsh Harbour and the north Abaco port in Cooper’s Town.

Tribune Business previously revealed that the Government is eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports revealed that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m”. For Cooper’s Town, the figure was slightly less at $40m in collective equity and debt funding.

Mr Bethell, though, said the 150 kilowatt (KW) expansion to APD’s solar system is set to go live within the next 30 days. “Very little progress has been made to put a vehicle inspection facility at APD,” he added. “The Government of The Bahamas just recently confirmed the relocation of the Road Traffic Department from the Thomas A Robinson Stadium.

“We have recently completed the expansion of our solar system capacity by 150 kW. This system is set to go live within the next 30 days. It is not cost effective to continue with the solar project at our Gladstone Freight Terminal facility at this time. We will continue to assess and review our solar options at Gladstone Freight Terminal.”