The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian Trade Mission to Panama has urged Copa Airlines to start routes between that nation and Freeport for both passengers and air cargo, suggesting this would “open up Central American markets”.

Chester Cooper, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, yesterday told Tribune Business that expanding commercial shipping and air cargo routes between Panama and this nation was key to fulfilling Freeport’s potential as an international logistics/trade hub.

Speaking after returning from the BCCEC’s Trade Mission to Panama, where the private sector was accompanied by Dr Michael Darville, the minister for Grand Bahama, and Grand Bahama Port Authority (GBPA) officials, Mr Cooper said the trip could be “a catalyst for driving Freeport to its truest potential”.

Although the Bahamas’ second city was not blessed with the Panama Canal, Mr Cooper said the Freeport Harbour and Container Port matched what the Central American nation had, while the Hawksbill Creek Agreement provided the foundation for a free trade area not dissimilar to the Colon Free Trade Zone.

“It’s Freeport in action on a much larger scale,” Mr Cooper told Tribune Business of Panama. “They have the Colon Free Trade Zone, and Freeport has all the framework to do that if they wish.

“They [Panama] have a significantly well-positioned port, and so does Freeport. Freeport is a mini version of Panama, and Panama is what Freeport should aspire to be.”

Accompanying Dr Darville were the likes of Melvin Seymour, the permanent secretary from his Ministry, while among the GBPA officials present were its president, Ian Rolle; and Derek Newbold, its business development manager; plus Sherry Brookes and Orlando Forbes from Hutchison Port Holdings.

“It was extremely productive for them to see some of the practical and potential synergies between Panama and Freeport, and also to really see the model in action,” Mr Cooper said.

“The visit to Panama can be a catalyst for driving Freeport to its truest potential.”

The BCCEC chairman pointed out that despite the global recession, Panama was thriving, enjoying year-over-year reported GDP growth of 10 per cent and an unemployment rate of just 4 per cent.

This stands in stark contract to the Bahamas’ current annual GDP growth rate of 2 per cent, and an official unemployment rate of 14.7 per cent.

But, while highlighting the major differences between Panama and the Bahamas, the former’s relative success - in the worst of economic times - hints at the potential difference Freeport can make if it is allowed to flourish.

Mr Cooper noted that Freeport’s deep water harbour, proximity to the US east coast and major global shipping lanes, and associated facilities such as the Container Port and Shipyard, all made it a natural trade/logistics hub.

“It’s extremely clear there are great logistics opportunities there between Bahamian and Panamanian logistics providers, and the Port companies,” the BCCEC chairman said.

To facilitate this, the Bahamian Trade Mission invited Copa Airlines, already enjoying tremendous success on routes to Nassau from its Panamanian hub, to expand these services by initiating a Freeport route.

And Mr Cooper said they also suggested that Copa establish a Panama-Freeport route for air cargo. Such cargo services between the two nations were virtually non-existent currently, and initiating them would open up not only logistics/trade between Panama and the Bahamas, but between this nation and Central America.

“There is some opportunity, and we are looking at improving shipping and air cargo routes between Panama and the Bahamas,” Mr Cooper told Tribune Business.

“We did make an invitation to Copa to start routes between Panama and Grand Bahama for air passengers and cargo.

“That will be an important connection between Panama and Freeport, which will open up Central American markets to Freeport and the Bahamas with respect to air cargo.

“If we have flights into Freeport several times a week, we can not only tap into the Panama market but it can be a Central American hub in terms of ensuring shipping is successful.”

As an illustration of Copa’s success in opening up the Bahamas to the Central and Latin American market, Mr Cooper said members of the Bahamian Trade Mission had found it “incredibly difficult to get direct flights” to Panama despite the existing routes.

“Their flights are pretty much booked solid,” he added. “No doubt we will soon be in a position to encourage Copa to increase those routes to the Bahamas, coming here with more frequency.

“There is a major untapped opportunity, not just from Panama but across the Central American/Latin American region, with direct flights to the Bahamas; not only attracting tourists.”

Describing the region’s air cargo market as “important untapped space”, Mr Cooper said: “We must continue to look to those Latin American markets.”