By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A $40m aquaculture project targeted at Grand Bahama’s northern shore is aiming to create 113 full-time jobs, and up to 200-300 spin-off posts, once it reaches full-scale commercial production.

Florida Stone Crabs Inc’s environmental impact assessment (EIA), which was released yesterday ahead of the November 11 public consultation, disclosed that if approved the development will be located on a 1,500-acre site east of Dover Sound on land jointly-owned by the Grand Bahama Development Company (DevCO) and the Grand Bahama Port Authority’s (GBPA) affiliate, Port Group Ltd.

The project, which is designed to produce native Bahamian stone crabs for export purposes only, meaning they will not be sold locally, is asserting that it will place this nation “on the forefront” of an aquaculture industry that generates more than 50 percent of the world’s seafood supply while also creating a new industry and boosting economic diversification.

Pledging to produce “a very high-end, high quality product”, Florida Stone Crabs Inc’s EIA said the proposal will involve cutting two canals to Grand Bahama’s north shore “for the exchange of seawater” with the project divided into two separate phases. 

The initial “pilot” stage will cover just 36 acres, and feature a hatchery canal, hatchery and sea water trench system. Some 14 trenches, around 4,000 feet in length and 392 feet wide, will be dug and is intended to produce 168,000 stone crabs over a two-year period.

Should this prove successful, Florida Stone Crabs Inc - a start-up created in 2022 specifically to pursue its Grand Bahama ambitions - will expand to full-scale commercial production with projections for achieving $47m in annual sales revenue in the first year. 

Employment will near-triple from 42 for the “pilot” phase to 113, with Bahamians accounting for 90 or almost 80 percent of the full build-out workforce. The first commercial-scale harvest is forecast to generate 812 metric tons and around 1.8m pounds of claw meat.

Dillon Knowles, the Grand Bahama Chamber of Commerce’s president, told Tribune Business he was unaware of Florida Stone Crabs Inc or the proposal, so was unable to comment in detail. He added: “Grand Bahama is pretty diverse economically, so anything that adds to that diversity obviously works in our favor assuming whichever project comes along does not conflict with anything on the ground or planned to be on the ground.”

The Florida Stone Crabs EIA, noting that the 1,500-acre property incorporates 300 acres formerly used by the Bahamas Dairy Farms project, said: “According to Florida Stone Crabs Inc, the crabs produced from the aquaculture project are for export only and not intended for sale in The Bahamas. The stone crabs produced will be the species native to the Bahamas. No foreign stone crabs are intended to be imported into the Bahamas by Florida Stone Crabs Inc.

“Florida Stone Crabs Inc’s market strategy is aimed at North America, primarily the US and Europe. Grand Bahama was selected for the project due to its ideal conditions for the aquaculture project, which include available real estate, water quality, water temperature, pH of water, tidal flow which occurs twice per day and limestone geology for the growing area.”

Approvals will be required from the GBPA, as Freeport’s quasi-governmental regulator, as well as the central government via the Department of Environmental Planning and Protection (DEPP) and the Department of Marine Resources. “In order for the investment in the project to be realized, both the pilot phase and commercial phases need to be approved simultaneously. In short, it makes little sense to the developer to have an approval for the pilot phase without the commercial phase also being approved,” the EIA added.

“Florida Stone Crabs Inc has selected the location due to the low-lying nature of the tidal flats and availability of good quality seawater which is critical for the operation of the aquaculture farm… The site was previously flooded in 2019 by Hurricane Dorian and the structures will have to meet the Grand Bahama Port Authority’s building code.”

Pointing to the economic diversification benefits if the project is approved and moves forward, the EIA compiled by Bahamian consultancy, Envirologic, said: “This aquaculture project is different from Freeport’s two main industries - heavy industry and tourism - and the traditional commercial fishing conducted in The Bahamas. However, it will add to the economy of Freeport by introducing new technology and a new source of employment to the island during both the pilot and commercial phases.

“Florida Stone Crabs Inc estimates the total investment to be $40m at full-scale development of the 1,500 acre project.” The total investment is broken down into $4.6m for land costs; $13m for the first phase “pilot”, which is split into $3.4m for construction; $5.6m for equipment; and $4m for working capital; and $22.4m for the full-scale commercial stage. The latter will feature a $5m outlay for construction; $6.4m for equipment; and $11m for working capital.

“There are no known commercial aquaculture facilities currently operational in Grand Bahama,” the EIA said. “This project provides an opportunity to develop a new industry….. At peak production, sales are estimated to be 2.8m pounds per year and will improve the country’s negative trade balance.

“The farm will produce a very high-end, high-quality product - fresh frozen stone crab claws – not currently sold anywhere in the world. The product will be labelled and marketed as a Bahamian product and sold internationally, thereby increasing The Bahamas’ market reach and brand awareness, which may assist in the sale of other Bahamian sourced [product].

“The facility will be built to world-class standards, putting The Bahamas on the forefront of aquaculture, an industry that now accounts for over 50 percent of the world’s seafood supply. The product’s uniqueness will immediately garner industry recognition, and the fact that it is being produced in The Bahamas will engender other producers to look at The Bahamas as a potential place to expand manufacturing of other aquaculture products.”

Pledging that there will be knowledge transfer to Bahamian employees, involving “specialized equipment and technology”, the EIA suggested that the project’s training initiatives and associated programs will “expand the country’s knowledge base and presumably arrest the flight of the island’s workforce”.

It added: “During the pilot phase, the workforce is estimated to employ approximately 40 Bahamians. The expanded commercial workforce is estimated to consist of approximately 120 Bahamian hires. Pay is estimated to be three times’ the minimum wage.

“As is typical in aquaculture, it is estimated that several cottage industries will develop around a project of this nature resulting in an additional 200-300 indirect jobs in the areas of feed production, processing and packaging, transportation and logistics equipment suppliers and maintenance, among others.” Elsewhere, the EIA suggests that Bahamians will account for just over three-quarters of the “pilot phase” workforce, or 32 of the 42 employees, and close to 80 percent or 90 of the total 113 staff at full build-out.

“Florida Stone Crabs Inc expects to partner with the cruise industry to offer an additional/unique destination excursion. The experience of a day at the farm, the hatchery/learning centre and restaurant builds the reputation further of Grand Bahama as a diversified and cultured destination,” the EIA said.

“Due to the uniqueness and scale of the project we intend to establish an active student exchange program between Bahamian and US universities, allowing for the exchange of students interested in aquaculture, animal husbandry, etc. This will serve to enhance academic perspective, personal growth, cultural immersion and networking opportunities among others.

“The facilities are synergistic with responsible fishery practices and local tourism efforts, and often become eco-tourism and academic destination locations, - eco-tourism, fish for resorts, animal husbandry. The developers welcome the opportunity to work with local tour operators to feature the project,” the EIA added.

“ Local governments will benefit from the additional employment of both a newly-created workforce and the indirect job opportunities that will develop around this new endeavor. There will be an additional tax base, improvements in infrastructure such as roads around the property, community involvement from a new corporate neighbor and even increase in visitors to the island due to eco-tourism.”

Florida Stone Crabs’ US principals are Carlos V. Freyre and Eric Swain. “They are in the process of seeking a business license from the GBPA and will be seeking all the necessary approvals from The Bahamas Government. The company does not operate a facility to-date but have employed resources from the University of Miami’s Rosenstiel School of Marine and Atmospheric Sciences in developing the operational aspects of the project,” the EIA added.

Mr Freyre is the founding partner of Freyre & Company, a boutique advisory firm, which invests in and provides consulting services to companies in offshore oil and gas, food processing and distribution, consumer goods manufacturing, heavy equipment distribution and mariculture.  Meanwhile, Mr Swain is the founder and managing member of Swain Capital Group, a business consulting firm.