By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An ex-Abaco Chamber of Commerce chief is hailing as “about bloody time” today’s promised start on upgrades to Marsh Harbour’s port given the “threat over-shadowing our existence”.

Daphne DeGregory-Miaoulis, speaking after the Ministry of Energy and Transport yesterday announced its partnership with the US embassy will see improvements to the commercial shipping facility begin today, told Tribune Business the work is critical to bringing it into compliance with international regulations and preventing Abaco from being “cut-off”.

This was also acknowledged by Jobeth Coleby-Davis, minister of energy and transport, who voiced optimism that teaming with the Nassau-based embassy and US government “will help us achieve full compliance with International Ship and Port Facility (ISPS) measures” that were introduced worldwide following the September 11, 2001, terror attacks.

Tribune Business previously revealed the Marsh Harbour port was struggling to comply with the ISPS regime in 2018, even before Hurricane Dorian devastated the island and its major commercial shipping facility, and failure to meet these standards and pass the necessary inspections would result in US cargo vessels being barred from bringing goods directly to Abaco.

The island’s private sector has long voiced fears that the failure to properly repair, and enhance, security and overall operations at the port post-Dorian has left Abaco exposed to such an outcome any moment. Should direct shipping be cut-off, businesses would be forced to import via Nassau and/or Freeport, adding further expense to already-high living costs and undermining the ease of doing business.

The Ministry of Energy and Transport, in yesterday’s statement, said the planned upgrades - which are due to be “significantly completed” by February 2026 - will involve the “full outfitting of CCTV and security lights”; positioning of storm water drainage systems; installation of security fencing; and the building of an administration office.

The latter will feature a reception area, three offices, kitchen, monitoring station and restroom facilities. In a sign of just how heavily involved the US embassy is, the contractor chosen to undertake the improvements is American and was selected following a competitive bidding process that was run and overseen by the Nassau-based mission.

Quality Logistics and Procurement Services, according to Internet research conducted by this newspaper, is headquartered in Orlando with a satellite office in Colorado, and specialises in construction management, supply chain logistics and procurement activities. It is also a registered vendor with the US government, including its Defence Logistics Agency.

The Ministry of Energy and Transport yesterday said “several Bahamians will be involved during the construction phase”, although it did not provide estimated numbers and state whether contractors will be able to participate in the project or if this just represents an employment opportunity for workers.

Mrs Coleby-Davis said: “Hurricane Dorian inflicted significant damage on the facilities, and I have listened intently and heard the concerns of the people and business owners in Abaco. My commitment has been to give serious attention to enhancing the facility, and this partnership will help us achieve full compliance with International Ship and Port Facility (ISPS) measures.”

The agreement with the US embassy has taken some time to conclude. Mrs Coleby-Davis told this newspaper more than 13 months ago, on September 2, 2024, that her ministry is holding talks with the US Embassy in Nassau “to have some security upgrades completed”.

And the ministry’s statement made no mention of any outcome or decision being taken regarding the competitive bidding process previously launched by the Government seeking a public-private partnership (PPP) with commercial operators to manage both the Marsh Harbour and Cooper’s Town ports.

Arawak Port Development Company (APD), the BISX-listed operator of the Nassau Container Port, recently told Tribune Business it was “aware that the Marsh Harbour project was awarded to another entity that responded to the RFP” although it did not name them. It is unclear if this is Quality Logistics and Procurement Services.

Meanwhile, Mrs DeGregory-Miaoulis, who advocated for the Marsh Harbour port to be treated as a priority by the Government when Chamber president, said of the ministry’s announcement: “All I can say is that it’s about bloody time. It’s way overdue and I’ll be happy to see the work actually in progress, not just announced. I’m going to go down to the port to see the first shovel in the ground.

“It’s extremely important because everything is imported, and if we were to be shut down it would put us all of out of business or further increase our cost of doing business because it would mean we would have to trans-ship through Nassau or Freeport, which would add another layer of transportation costs on to something that is already expensive.

“That’s been the focus and concern all along; that we’d get shut down and, through the grace of God, we’ve been allowed to operate for too long under sub-standard conditions,” she added. “There’s always been this threat over-shadowing our existence of being cut-off. That was the primary threat.”

Amid hopes that the Government’s partnership with the US embassy will now resolve all ISPS-related concerns with the Marsh Harbour port, Mrs DeGregory-Miaoulis added that the second impact from its current condition was “the visual and psychological” fall-out, plus the operational inconvenience, for companies and persons who have to operate in that area without “proper business facilities”.

Customs, port employees, and staff from the likes of Tropical Shipping and Seacor have “had to bear through this six years-plus of operating from a sub-standard facility and the inconvenience that goes with it”. However, the former Chamber president stopped short of advocating that the Government outsource the port’s management to a private company for fear this will lead to increased cost of goods.

“Maybe after completion of this project they’ll look to a new operating manager,” she added. “Who knows? I don’t see why the Government would give up managing the port themselves. It’s a catch-22. It depends on who the private company is and if it’s going to be one that knows how to operate a port...

“I don’t see why our government couldn’t properly manage a port with properly trained Bahamian staff. I don’t see why we should outsource the port. I personally don’t think the Government should be outsourcing the management of the port to a private company because that will automatically raise costs and take away the opportunity for Bahamians to be employed and trained in the Government sector.

“Why not? Every time we outsource to these private companies prices go up.” Tribune Business previously revealed that the Government was eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The 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” on the former. For Cooper’s Town, the figure was slightly less at $40m in collective equity and debt funding.

The tender documents revealed that the Government wanted the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed Arawak Port Development Company (APD), operator of the Nassau Container Port, and which bid on the Marsh Harbour RFP.

For both the Marsh Harbour and Cooper’s Town ports, the RFPs stipulated that a combined 20 percent equity ownership will be “offered for sale to the general public” although it did not specify whether this will be via an initial public offering (IPO) or other method.

The remaining 80 percent ownership interest was to be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake.

The Ministry of Transport and Energy, in yesterday’s statement, said: “The Government of The Bahamas understands the significance of the Marsh Harbour port to the people and economy of Abaco, and views this development partnership with the US Embassy as a significant step in deepening trade, enhancing supply chain resilience and expanding opportunities for Bahamians and Bahamian businesses.”