By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The principal behind a $40m stone crab export project has pledged it will be “a trophy for The Bahamas” if approved and spark “larger and better things” by triggering development of a wider aquaculture industry.

Carlos Freyre, founding partner of Freyre & Company, told Tribune Business that the Florida Stone Crabs Inc proposal will “be a phenomenal project if we get this off the ground” as its investors ready for the November 11 public hearing and consultation over its application for certificate of environmental clearance (CEC) approval.

Asserting that the Grand Bahama Port Authority (GBPA) and central government regulators, including the Department of Environmental Planning and Protection (DEPP), Department of Marine Resources and Forestry Unit, are all “on board” subject to securing the CEC, he described this permit as “the major hurdle” to Florida Stone Crabs Inc progressing.

Promising that the group will launch its project’s “pilot phase” in the 2026 first quarter should the CEC approval be forthcoming on schedule, Mr Freyre told this newspaper that this stage “in my mind” should be a 24-month process with the first stone crab harvest occurring “within 26 months of ground-breaking”.

The Florida Stone Crabs Inc principal, disclosing that “most of the financing” for the project’s $13m ‘pilot phase’ is already in place, with the balance set to be secured once all government and GBPA approvals had been obtained, said he “hopes to provide logical explanations to mitigate” the environmental-related concerns likely to be raised at the upcoming public consultation.

Revealing that he is preparing for concerns and criticisms to be raised, Mr Freyre added that he and Florida Stone Crabs Inc will “try to ameliorate them” and address all issues raised by Grand Bahama residents and others “as much as we possibly can”.

Some Bahamian environmental activists have already signalled their opposition to a proposal that promises to create 113 jobs if it reaches commercial-scale production. Joe Darville, the Save the Bays executive chairman, described the project’s likely impact as “absolutely reprehensible” and challenged why it was seeking to establish itself in The Bahamas - as opposed to Florida or mainland US - if the stone crab products are export-only.

Asserting that he “cannot get my head around” why the project is even being considered, Mr Darville voiced suspicions that the regulatory agencies have already decided to approve it regardless of the public consultation outcome. Suggesting that it will have little to no benefit for The Bahamas and Bahamians, he pledged to be “the first one out there protesting” if Florida Stone Crabs is given the go-ahead.

“I got some news on it,” Mr Darville told Tribune Business. “I think it’s absolutely reprehensible, and where they are promising to put this thing would be right intersecting where we have a thriving mangrove restoration project going on. 

“I just can’t get my head around this project, stone crabs for Florida and the US. Why can’t they do it some place there? Why are they coming doing it in our territory, messing up our environment with no benefit to us?

“As far as I can gather, it’s already going to be approved and I hope it’s not going to be approved. If it is, I will be the first one out there protesting against it. It’s really ludicrous to say the least.”

If approved, the Florida Stone Crabs Inc project 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 GBPA’s affiliate, Port Group Ltd.

Mr Freyre, though, explained that finding and securing a large tract of land is key to Florida Stone Crabs Inc’s success - especially since the crabs it will be cultivating are “a very aggressive” species. The proposed 1,500-acre site is also so “low-lying” that it is unsuitable for other commercial or productive uses.

“It’s a long story. The idea has been around for a long, long time. Many, many years,” Mr Freyre told Tribune Business of the project’s origins. “We started focusing in on its development about three years ago. 

“The key is finding the land to make it a reality. Stone crabs are a very aggressive species, so for in order for this to work it needs space. This piece of property in Freeport is perfect; it can’t be used for anything else. It’s too low lying, but perfect for the species. Once the land is located, we can move forward.”

The Florida Stone Crabs Inc principal said Grand Bahama’s proximity to the company’s key export markets, namely Florida and the US, plus its connectivity and transportation infrastructure in the shape of Freeport Container Port and Grand Bahama International Airport, were further attractions for the project and its investors.

“There are many reasons this investment is so attractive,” Mr Freyre argued. “The product is going to be fresh frozen claw. It’s not a product you will get at the restaurant; it will be a product you can buy at Wal-Mart, Publix and Costco. It will be a Bahamian product, but 100 percent exported. We will not be selling it in The Bahamas.”

Asked how much progress Florida Stone Crabs Inc has made in obtaining all the necessary permits and approvals, Mr Freyre replied: “We started with the Port Authority. They have provided approval provided we get approval from DEPP, the Department of Marine Resources and Forestry. 

“We have met with them on numerous occasions. They are all on board subject to the public process on November 11. We couldn’t get this far if they were not on board. I think they see the opportunity here. It’s something that’s unique.

“It will be a trophy for The Bahamas to be honest with you. It doesn’t exist locally. The employment will be significant for Grand Bahama. It’s not a multi-billion dollar business but it will be very interesting to the local community in terms of training, learning, technology transfer and us be a good corporate citizen. All the things you want from someone coming in to develop this kind of business.”

Pointing out that University of Miami aquaculture specialists are involved in designing the stone crab hatchery and overall project, Mr Freyre added: “If we get this off the ground it will be a phenomenal project to be honest with you. The pilot phase should start in the 2026 first quarter assuming we get the CEC.

“That’s what we need. That’s a major hurdle. Once that’s been crossed… it becomes a construction project, building the hatchery and creating trenches and canals. These animals have been grown in captivity but not grown to a scale like this. The aggressiveness of the species has not allowed that to happen.

“We’ll be moving the water in with the tide. It’s a unique system of growth. Water is moved in from the sea and back, and they’ll grow in their natural environment.” 

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 are 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, with gross margins projected at 60-plus percent.

Should Florida Stone Crabs Inc succeed, Mr Freyre suggested it could attract other investors and businesses and lead to the development of a larger, sustainable Bahamian aquaculture industry. However, he reiterated that much - including the balance of the pilot phase’s $13m financing - hinges on obtaining the CEC..

“I can’t say we have all the financing in place, but most of the financing is in place for the pilot,” he told Tribune Business. “Once we get all our ducks in a row, all of that will fall into place.

“If we get it to work, it will generate significant interest in The Bahamas and the Caribbean. There’s no aquaculture in The Bahamas. This can expand into other things. Once you bring in the technology and people understand how to grow these things, they will move to another species. It will create a foundation for larger and better things, I believe.”

While not a “destination location”, Mr Freyre suggested that the Florida Stone Crabs Inc site will be “an interesting place” that attracts both tourists and students to watch and learn how stone crabs are bred and harvested on a commercial scale.

“I think it will be a significant impact,” he added. “The project is a $40m investment. Not all of it will be in The Bahamas. A lot of the equipment does not exist in The Bahamas and will have to be brought from the US. You will have the technology transfer, the cottage industries that will have to be created around the project because they don’t exist today, the transportation.

“It should have a significant impact. The balance of payments should improve. It will not be billions of dollars, but it will improve the balance of payments for The Bahamas.” Mr Freyre said that, at full-scale commercial production, Florida Stone Crabs Inc could export up to 1,400 tonnes of claw meat annually from Grand Bahama.

“The pilot phase should be a 24-month process in my mind; it might be a little longer,” he added. “We should be able to produce our first harvest within 26 months of ground-breaking.”

As for the environmental concerns, Mr Freyre acknowledged that while the 1,500-acre site had been completely flooded during Hurricane Dorian this would be of little concern to the stone crabs as they would still be in their natural environment. Noting that the main problem would be the intrusion of sand pushed inland by a major storm, he explained that Florida Stone Crabs Inc would keep the necessary heavy equipment on property to deal with this.

“Crabs don’t care if there’s five feet or 50 feet of water over them,” he said. “I expect [environmental] concerns and I hope to mitigate those concerns with logical explanations….. The facilities will be built to Category Five standards, that’s for sure, and we’ll have to meet the Port Authority’s building code and do whatever’s required.

“We know how it is. People are always going to say something. I understand their concerns and will try to ameliorate them and work with them as much as we possibly can.”