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Business ops in Grand Bahama
Island offers more than a sunny climate
As you read this, you are probably sitting on your hotel room’s balcony admiring the sunset or sipping a cocktail poolside as the azure ocean laps gently in the background. To most visitors, Grand Bahama seems a world away from the arenas of business and commerce. But the idyllic, touristic appearances belie the island’s potential as an industrial hub and economic driver for the entire Bahamian archipelago.
The nation’s second-most populous landmass has advantages that single it out as a prime location for conducting a diverse range of business ventures, whether in the transshipment and storage industry or in manufacturing or financial services.
Already, Grand Bahama is home to a number of international business success stories that hint at the potential held within the northern island.
The container port has long been a stalwart of the Grand Bahama economy, employing around 950 workers, with the capacity to handle 1.3 million TEUs (twenty-foot equivalent container units). The Hong Kong-based owner, Hutchison and Whampoa Group, has plans for a further multi-million-dollar expansion, which would see the number of the port’s berths go from three to 20 over the next ten years.
The natural deep-water harbour has also facilitated the creation of one of the region’s busiest ship repair yards, owned and operated by Grand Bahama Shipyard Ltd–a joint venture between Carnival Cruise Lines, Royal Caribbean International and the Grand Bahama Port Authority (GBPA). The shipyard is home to the western hemisphere’s largest floating dock and contributes an estimated $40 million to the local economy each year.
Other major business concerns on the island include PharmaChem Technologies, which is a key supplier of the active ingredient in the drugs used to treat HIV/AIDS, and the oil storage facility BORCO which was recently acquired by a US firm, Buckeye Partners, in a deal reportedly worth $1.7 billion.
Transportation hub
“Grand Bahama offers a true example and alternative of what could be the next big thing for The Bahamas–that being a transportation and logistics hub for both major maritime and air cargo operations,” says K Peter Turnquest, president of the Grand Bahama Chamber of Commerce.
“We already have a fully functioning international container port, solidly performing and growing oil storage, bunkering and blending industry, significant ship and yacht care facilities, a pharmaceutical and chemical industry and a new brewery.”
On top of these existing businesses there are alternatives that are ready for exploitation. “Grand Bahama is primed for boutique hotel development, particularly in the outlying settlements of the island, as well as in Freeport itself, and there are a number of existing properties available for the motivated investor to take advantage of,” says Turnquest.
Ian Rolle, president of GBPA, envisions a number of alternative revenue streams that could flourish on the island. “I see the potential for a major university to come to fruition with expanded research and training facilities,” he says. “I see growth in medical tourism, with the establishment of a very high-end facility catering to specific surgical procedures. I see highly automated manufacturing as being one for the main types of industry attracted here in the future–particularly for those companies whose major market is the US.”
There are several reasons why businesses could decide to locate in Grand Bahama, rather than in the capital Nassau or elsewhere in the region. For the shipping and logistics industry, location is the key factor. Aside from being only 105 miles from the coast of Florida, the port lies directly on major shipping routes linking North and South America and those funnelling into the Panama Canal. The harbour can accommodate some of the world’s largest vessels, so manufacturers can ship quickly, cost-effectively and in volume.
“The linkages and ability to leverage the transshipment, logistics and commercial activities that are on tap in Grand Bahama could seal the deal for The Bahamas being the regional winner in international business and finance,” says Wendy Warren, chief executive officer of the Bahamas Financial Services Board. “We sit in an area that is just steeped with opportunity. The opportunity for The Bahamas is to capitalize on its geographic location and market timing.”
On top of this, there are the considerable tax breaks associated with operating in an offshore environment and the availability of land for development–a commodity highly valued in a region made up mostly of small, scattered islands.
“Freeport enjoys unmatched incentives to invest and to live–a quality of life that is unbelievable by Caribbean standards,” concludes Turnquest at the Chamber of Commerce. “A diversity that is sure to cater to everyone.”
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