{"id":50986,"date":"2014-03-03T16:08:08","date_gmt":"2014-03-03T21:08:08","guid":{"rendered":"http:\/\/www.bahamasb2b.com\/news\/?p=50986"},"modified":"2014-03-03T17:03:55","modified_gmt":"2014-03-03T22:03:55","slug":"gbpa-vice-chairman-at-grand-bahama-business-outlook","status":"publish","type":"post","link":"https:\/\/www.bahamasb2b.com\/news\/2014\/03\/gbpa-vice-chairman-at-grand-bahama-business-outlook","title":{"rendered":"GBPA Vice Chairman at Grand Bahama Business Outlook"},"content":{"rendered":"

\"grand-bahama-business-outlook\"<\/em><\/span><\/p>\n

Presentation By <\/em><\/span>
\nSarah St. George, Vice Chairman The Grand Bahama Port Authority, Limited<\/em><\/span>
\n\u201cBuilding on 60 Years of Development\u201d<\/em><\/span>
\nAt Grand Bahama Business Outlook<\/em><\/span>
\n27th February 2014<\/em><\/span>
\nGrand Lucayan, Freeport, Grand Bahama Island<\/em><\/span><\/p>\n

Firstly, I wish to thank Joan Albury and the Counsellors for establishing such an important vehicle to share with the Grand Bahama community, the outlook for our island!<\/p>\n

Next year will mark 60 years of the birth of the City of Freeport; 60 years since the signing of the Hawksbill Creek Agreement; 60 years of development and the fulfillment of a dream; and 60 years of a partnership between The Government of The Bahamas and The Grand Bahama Port Authority. I was also born in 1955 which helps me to remember the date.\u00a0 As you can see, both Freeport and I have weathered a few storms! But they say Life Begins at 60!<\/p>\n

What is The Hawksbill Creek Agreement? \u2013 What does it mean? It is in a sense the Fabric of Freeport\u00a0 – you could call it the Magic Carpet under the Magic City —<\/p>\n

60 YEARS OF DEVELOPMENT<\/p>\n

Let\u2019s look at the Rich Tapestry that is the History of Freeport\u2019s Development – And it is not so old \u2013 There are some of you who have experienced that whole journey\u2026 The dredging of the deep water Harbour; the canal system; The Rand Memorial Hospital; The schools; The Banks; The new International Airport; The Container Port; the Highways and Byways\u2026<\/p>\n

As a teenager I experienced the nightlife; Kiki Ruge, Sultan\u2019s Tent, The Sandpiper and Joker\u2019s Wild.\u00a0\u00a0 I say this because many of us, not of Sir Jack\u2019s generation, need reminding from time to time of ALL that has gone into the Freeport of Today. And the Freeport of Today is:<\/p>\n

THE BUILDING BLOCK for the Freeport of the Future<\/p>\n

Just think for a minute of the wonderful companies that the \u201cFreeport Brand\u201d \u201cThe Hawksbill Creek Brand\u201d has been able to attract here. It reads like a Who\u2019s Who of the Business Directory:<\/p>\n

Hutchison Whampoa (the World\u2019s leading developer of Ports); MSC (the largest Shipping Company in U.S and Latin America and one of the largest in the world). Buckeye who own BORCO (with some $2B invested in the last 3 years alone); Dart Enterprises who own Polymers; Martin Marietta of Bahama Rock; Novasep who own Pharmacem, manufacturer of the key ingredient in\u00a0 the no1 HIV drug of today ; Columbus Communications, the fibre optic network hub of the Caribbean; Carnival Cruiseline and Royal Caribbean whose cruiseships not only frequent these shores but who between them built and own the GBShipyard \u2013 I don\u2019t want to steal Carl Gustav Rotkirch\u2019s thunder but the latter has one of the very largest cruiseships in the world in dry dock as we speak! Who else? Clarins; Scotiabank; RBC; Canadian Imperial Bank of Commerce CIBC or here First Caribbean, I could go on and on\u2026But Ladies and Gentlemen this isn\u2019t New York or Hong Kong or Paris this is the small island of Grand Bahama\u2014These companies have invested in Grand Bahama, in the people of Grand Bahama. They are good corporate citizens and Guess What? They are ready to invest more, millions more! And it\u2019s our Mandate to help them to do so. And also to attract new players.<\/p>\n

And look at our Grand Bahamian Businesses from FOCOL to Bahamian Brewery to Solomon\u2019s to Car Quest; Freeport JetWash; and the brand new Caribbean Tobacco;<\/p>\n

Or indeed Quality Services the largest steel-manufacturing company in The Bahamas and Bradford Marine – Everyone we collectively call Freeport\u2019s licensees.<\/p>\n

That is the essence of our Private\/Public Sector partnership so avant-garde that it pre-dated the Inter-American Development Bank IDB initiatives of today; Private Equity risk relieving the Govt from the burden of huge infrastructure debt obligations. It\u2019s a great model and one that the Port Authority and the Government by agreement between them has the template for\u2014The Hawksbill Creek Act.<\/p>\n

What are our issues today? To answer that we can\u2019t just look at ourselves in \u201csplendid isolation\u201d we have to constantly re-evaluate ourselves in relation to the Countries and Nations around us. Remaining competitive is paramount, and more than that we must always strive to be \u2018Best-in-Class\u2019 to survive in an ever-changing environment. As Mr. GianLuigi Aponte of MSC said: \u201cWe don\u2019t always grow as a matter of ambition, but sometimes our growth is pushed by our competitors\u2019 new ideas and strategies\u201d.<\/p>\n

Today with the widening of The Panama Canal we are experiencing just that \u2013 call it \u2018The Chase for Post-Panamax Trading\u2019, and here\u2019s just one example where we can be best in Class:<\/p>\n

1)\u00a0\u00a0\u00a0 The Mariel Port of Cuba opened just last week – built at a cost of $800m with loans from the Brazilian Govt, built by a Brazilian company – hopes to accommodate I million TEU (1 million container boxes). We have that already–<\/p>\n

2)\u00a0\u00a0\u00a0 Jamaica is in active talks with the state-run China Harbour Engineering company to develop a $1.5b Transshipment Port to aim at, and I quote, \u201cbecoming a global logistic hub for mammoth Post-Panamax ships\u201d.<\/p>\n

The shipping business is shaping up to be something we\u2019ve never seen before! Colombia is looking at creating a hub, and a few countries in Central America including Costa Rica. In addition there is Panama, and the Dominican Republic.<\/p>\n

BUT FREEPORT IS already there\u2014Freeport has it all<\/p>\n

1) \u00a0\u00a0\u00a0 Location<\/p>\n

2) \u00a0\u00a0\u00a0 Infrastructure already in place<\/p>\n

3)\u00a0\u00a0\u00a0 \u00a0World\u2019s leading Port Operator and Builder<\/p>\n

4) \u00a0\u00a0\u00a0 Last but no means least we already have the end-user willing shipping client to deliver the volume.<\/p>\n

ON THE DRAWING BOARD \u2013<\/p>\n

PHASE V Freeport Container Port<\/p>\n

So, what\u2019s on the drawing board and what are WE doing to remain competitive\u2026..well, phase 5 of FCP is our answer to what is happening around us. As you heard from the Hon Minister \u2013 the existing fee impediments will go.<\/p>\n

I can speak to the ongoing active discussions between The Government, GBPA, Hutchison, and MSC to galvanize this important next step which is not just pie-in-the-sky, but imminent and timed by the parties to coincide with the completion of the Panama Canal \u2013 So we\u2019re talking 2015. For a further $250m -$300m of Private Equity contributed by Hutchison and MSC \u2013 not, please note, by the State as in Cuba and Jamaica and NOT by spending $1 billion –\u00a0 MSC can double \u2013 DOUBLE \u2013 our Volume here to 2 million TEUs and that\u2019s not just expansion but modernization, upgrading, and semi-automation to transform this into a Flagship Port – to grow Freeport into a First League Container Terminal \u2013 not just a conventional terminal\u00a0 \u2013\u00a0 possibly the most High-Tech Terminal in the world. Adding over 200 jobs to the local economy, over a two-year build out period.\u00a0 And construction could begin this year.<\/p>\n

So, ladies and gentlemen, Grand Bahama Island has the tools to be the Largest International Container Port Hub in the region, and that illustrates what it means to be Best-in-Class. And the beauty of it all is that the money to expand Phase 5, like almost every other infrastructural project within the City of Freeport isn\u2019t funded by tax payers or doesn\u2019t have to be borrowed by the country and doesn\u2019t put a burden on its citizens.<\/p>\n

If Transportation Hubs are growing as fast as the world turns. Obvious SPIN-OFFS are the Shipyard; Borco and Bradford Marine. But The Clusters create an ideal environment for the development of new small and medium-sized Bahamian Business enterprises. Opportunities surrounding SeaPort and Airport infrastructure have connectivity to the Real Estate equation and to Real Estate Development.<\/p>\n

A HEALTHY PORT IS A HEALTHY FREEPORT!<\/p>\n

And Of course Ports and—<\/p>\n

FREE TRADE ZONES go hand-in-hand: So is–<\/p>\n

THE HAWKSBILL CREEK AGREEMENT still relevant today?<\/p>\n

Interestingly alongside its $800m Port, Cuba has also just invested $300m in a New Free Trade Zone called The Special Development Zone ZED so that \u201cforeign-owned factories can produce goods for other markets\u201d – 193 sq miles large. Freeport is 230 sq miles. Think how ahead of its time! But also think of the competition.<\/p>\n

Besides Cuba there are The Cayman Islands \u2013 we\u2019ve all heard of:<\/p>\n

Enterprise City \u2013 What stands out on that slide \u2013 What do they advertise in a nutshell? No Tax \u2013 No Red Tape!<\/p>\n

And On Tuesday this week, Health City Cayman opened its doors to the public. The complex is also planned to have a medical university and an assisted-care living community.<\/p>\n

The answer is a resounding Yes – the HCA is still relevant and very much of the moment.<\/p>\n

REVISITING THE CUSTOMS FEES\/RENEWAL EXPIRING CONCESSIONS<\/p>\n

I would like to thank my friend, the Minister of Tourism and MP for West End, for getting the issue of the taxes imposed by the Government\u2019s 2014 budget out of the way, from the onset.\u00a0 I would also wish to publicly thank the Prime Minister for the attention he has given to this most critical matter that challenged the future of our economy.<\/p>\n

This didn\u2019t just happen overnight.\u00a0 It was months of discussions with Government, the Port Authority, and stakeholders of Freeport.\u00a0 The PM has made himself personally available in order for Freeport to move forward.<\/p>\n

Not everyone is able to wade through the Hawksbill Creek Agreement; here The Letter of the Act is set out and this is what builds investor confidence by providing stability and certainty and minimizing any perceived political risk by foreign entities. An Investor could lose confidence if they thought the so called \u2018magic carpet\u2019 was being pulled out from under the Magic City!<\/p>\n

However – As important\u00a0 – is The Spirit of that agreement which is the blueprint for development and our free trade zone and that must live on-<\/p>\n

Having worked closely with the Government on the recent Customs Regulations, I\u2019m now confident that we can find positive resolutions to the expiring concessions in the self-same spirit. After all we share the same goals to create more jobs, more revenue for the nation, and to see Freeport explode into life.<\/p>\n

POWER<\/p>\n

Lastly I can\u2019t close the chapter about being competitive, without addressing the issue of power.<\/p>\n

Unlike many other Caribbean countries, we now have RELIABLE power and with GBPC\u2019s brand new generators the possibility to convert to Compressed Natural Gas. They JUST need the permits from the U.S. I invite all stakeholders to lobby the US for those permits. We are ahead of the game. That would make us Best in Class: Stable rates; lower rates and other benefits to Industrials & Residents. As Demand grows the electricity price will fall too. Living on an island with a small population instead of a mainland continent isn\u2019t all plusses! But I know Cost is a very emotive issue\u2014and I can assure you it is being addressed as a PRIORITY by us as Regulators. By the way in the Cayman Islands with its Enterprise City; Electricity Cost is 42c compared to our 35c\/kwh. In fact as part of the Regulatory Transparency we propose to make GBPC performance and efficiency reports available to the Grand Bahamian public.<\/p>\n

CONCLUSION<\/p>\n

THE GRAND BAHAMA I SEE!<\/p>\n

The Grand Bahama I see is one where \u2026.post-panamax vessels are lined up at our High Tech Container Port\u2026<\/p>\n

The Grand Bahama I see is the largest logistics and transshipment hub in the region, with advanced international business centres.<\/p>\n

I see Grand Bahama as a major Second Home destination.<\/p>\n

The Grand Bahama I see has a Stem-Cell Research Centre; hospitals, pharmaceuticals and wellness centre. But I leave that chapter to our very own Dr Darville our Minister.<\/p>\n

I see a Grand Bahama being returned to a major Golf Destination and Boating Destination.<\/p>\n

I see a Grand Bahama Island as a Cultural destination \u2013 with Music & Film Festivals.<\/p>\n

I see a GREEN Grand Bahama and I\u2019m looking at Erica Gates of Grand Bahama Nature Tours.<\/p>\n

I see a Grand Bahama where the opportunities are vast, jobs are plentiful, and our young people want to return home because they have careers right here in Freeport!<\/p>\n

It would have been my father\u2019s birthday next week \u2013 It is 10 years since he died, and I wish he were here to see the Grand Bahama I can now see.<\/p>\n

Thank you and Good Afternoon!<\/p>\n","protected":false},"excerpt":{"rendered":"

Next year will mark 60 years of the birth of the City of Freeport; 60 years since the signing of the Hawksbill Creek Agreement; 60 years of development and the fulfillment of a dream; and 60 years of a partnership between The Government of The Bahamas and The Grand Bahama Port Authority. <\/p>\n","protected":false},"author":17,"featured_media":50987,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10223285771444175_51037792744":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[3],"tags":[153,81],"class_list":["post-50986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-2","tag-grand-bahama"],"_links":{"self":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/50986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/comments?post=50986"}],"version-history":[{"count":0,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/50986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/media\/50987"}],"wp:attachment":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/media?parent=50986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/categories?post=50986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/tags?post=50986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}