By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Opposition yesterday pressed the Government on whether CK Hutchison Holdings’ plans to sell its interests in the Freeport Container Port and Freeport Harbour Company also include its real estate holdings.

Kwasi Thompson, the Opposition’s finance spokesman, during the conclusion of the mid-year Budget debate in Parliament also asked the Government to confirm if the Freeport Container Port and 50 percent stake in Freeport Harbour Company, together with Board and management control, are in a worldwide $17.165bn proposed sale to a consortium featuring Mediterranean Shipping Company (MSC) and Blackrock.

Mr Thompson said the deal, which involves some 43 ports spread across 23 different countries, is concerning for residents in Grand Bahama and asked for clarity on whether it affects the Hong Kong conglomerate’s investments in Grand Bahama Development Company (DevCO).

“This issue may not have been raised, but it is an issue of concern for folks in east Grand Bahama. But also, I believe, in Grand Bahama as a whole, and that is the sale of or possible sale. I know we’ve been hearing sort of media reports about the sale of CK Holdings, which involves the Hutchinson Port in Freeport. It may involve the Freeport Harbour Company as well as the Container Port, and to an American company,” said Mr Thompson.

“We would like some indication as to whether this does involve the properties in Grand Bahama. How does it involve the properties in Grand Bahama, and whether it involves not just the Container Port and the Harbour Company, but does it involve GB DevCO’s property as well.”

Mr Thompson said DevCO is a “significant investment” in Grand Bahama and the change of ownership would have an impact on the island. He questioned if the Davis administration has been notified of a change, or any changes, in the ownership of those companies and what impact that will have on the island.

“It is a significant investment in Grand Bahama, and so the change of ownership in that significant investment, either way, will have a significant impact in Grand Bahama so we would like to understand what is the situation,” said Mr Thompson. “Has the government been notified of any change in ownership or any potential change in ownership, and whether the Government can indicate what potential impacts that may have>”

Prime Minister Philip Davis KC was present for the proceedings but neither he, nor any other members, provided a response.

Hutchison’s exit from all non-China port operations, which has only been agreed ‘in principle’ and has yet to be translated into a binding deal or closed, is likely to have at least been accelerated and influenced by newly-elected US president, Donald Trump’s, hostility to its port operations in the Panama canal zone. Both are included in the proposed sale.

Also included are another “43 ports comprising 199 berths in 23 countries, together with all Hutchison Port Holdings’ management resources, operations, terminal operating systems, IT and other systems, and other assets appertaining to control and operations of those ports”. Subtracting $5bn in existing debt from the $22.8bn gross purchase price delivers the net value of $17.165bn. The deal is supposed to close by April 2.

With operations in China and Hong Kong not included in the deal, subtracting these from all the ports listed on Hutchison Port Holdings’ website leaves the same number of facilities and countries as detailed in the statement announcing the deal. To reach the 43 ports and 23 countries number, the Freeport Container Port would have to be included in the sale but this has yet to be confirmed.

The Hutchison Port Holdings’ website also denoted Freeport Harbour Company as being part of its Bahamian port operations, implying that this is also included in the sale. Freeport Harbour Company, though, is a 50/50 joint venture between Port Group Ltd, the Grand Bahama Port Authority (GBPA) affiliate, and Hutchison in which the latter has Board and management control.