The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The winning Nassau cruise port bidder yesterday said it plans to make The Bahamas its regional headquarters for the Americas and invest $10m before sealing the deal with the Government.

Mehmet Kutman, Global Ports Holding's chairman, told Tribune Business that its Bahamian office would likely generate 20-25 jobs beyond the port as it bids to swiftly complete negotiations with the Minnis administration and start work on Prince George Wharf's transformation.

He voiced hope that the UK-listed port operator would obtain the necessary construction and environmental permits in time to begin construction work in September 2019, enabling it to hit its target completion date of September-October 2021.

Mr Kutman said all commercial and other details for the management and redevelopment of Nassau's cruise port should be worked out in 30 days "in an ideal world", especially since many of the terms were set out in the original Request for Proposal (RFP) bid document.

That timeline is 50-75 percent shorter than the Government's own conservative 60-120 day projections, but the Global Ports Holding chief expressed optimism that no major issues should arise during the two sides' discussions.

He suggested that the biggest factor would be the potential environmental impact from the cruise port's transformation and expansion, emphasising that the preferred bidder and its team will "work very hard at that and ensure there is absolutely no harm".

For this reason, Mr Kutman said Global Ports Holding was especially keen to begin the necessary environmental and geotechnical studies prior to concluding the agreement with the Government, as this would give it a headstart on obtaining the permits vital to ensuring it met its construction start date.

Besides its selection as Nassau's preferred bidder, Global Ports Holding has also secured deals to run the cruise ports in Havana and Antigua & Barbuda as part of its strategy to expand into the Caribbean and beyond its traditional Mediterranean and Far East footprint.

To oversee this growth, Mr Kutman revealed that the ports operator has selected The Bahamas as its regional headquarters for the Americas in what will likely be a further boost to the Government and its Commercial Enterprises Act legislation.

The Global Ports Holding chairman, confirming that The Bahamas office will cover "from Alaska going all the way to Argentina", said: "We are already incorporated. We need to find head office space and human resources.

"We have decided to start the work, whether it's an environmental study or geotechnical study, and start looking for office space and doing the human resources space." Mr Kutman added that such activity would likely require a $10m investment without the certainty of a completed deal with the Government - a risk Global Ports Holding is prepared to take.

Enticing Global Ports Holding to join Shell's regional operations and others in establishing headquarters-type operations in The Bahamas is a key element in the Government's strategy to reposition the economy and revive its growth. The Commercial Enterprises Act, which provides more certainty around the country's Immigration regime, was designed to attract such businesses.

The move also ties into the recently-enacted legislation requiring Bahamas-domiciled businesses, including head offices, to establish a physical presence in this nation and conduct real business from it, with management and control also based here.

Mr Kutman, meanwhile, said he saw no major impediments to quickly sealing the agreement with the Government to allow Global Ports Holding to move into the redevelopment phase.

"I would like to start the construction as soon as we have the permits," he said. "To be able to deliver it in September/October 2021 we need to start in September this year at the latest. That's why we will start the drawings as well in two to three weeks. It's a big team; 50 people will work on it."

Dionisio D'Aguilar, minister of tourism, declined to estimate when the Government and Global Ports Holding will finalise their Nassau cruise port agreement in announcing the latter's selection as the preferred bidder on Sunday.

But Mr Kutman said: "In principle we shouldn't have any issues. In an ideal world.... it shouldn't take longer than 30 days. We're not drafting a constitution. It should be a relatively easy and quick process.

"The longest time will be the environmental impact. We really need to work very hard at that and ensure absolutely no harm... After the [downtown Nassau] stakeholders, the most important thing is the environment. I'm very sensitive about these things"

Describing the waters around Prince George Wharf as being good enough to swim in, Mr Kutman said "The Bahamas deserves much more" when it comes to environmental safeguards and protections. Pointing to the "pristine waters", he added: "We have to be very careful, very sensitive about the environment, whether in the water, on the water or the superstructure."

Colin Murphy, Global Ports Holding's head of business development for the Americas region, confirmed to Tribune Business that the Junkanoo Museum proposed for the revamped Prince George Wharf will be Bahamian owned and operated.

He added that all existing cruise port vendors will be given "first right of refusal" to become tenants at the transformed facility, while most of the construction work will be sub-contracted to Bahamian companies.

"We've been talking to the art galleries, investigating the cultural scene here, the impact of Junkanoo, and are looking to add elements to reinforce that sense if place; that we know it's in The Bahamas, not somewhere else," Mr Murphy said of the company's plans to create a distinct Bahamian identity for Nassau's cruise port.

Global Ports Holding is proposing to add two new berths to accommodate the world’s largest cruise ships, while also filling in the space between the harbourfront and existing first cruise berth to create land for its amphitheatre events destination.

An “open air amphitheatre” will feature local and international concerts, shows and special events, which will “create an incentive” for cruise ships to stop in port. Laser-light shows will be one feature at night, while taxi drivers and tour operators will have better access to passengers.

The Government is currently eyeing a 25-year lease of Prince George Dock to Global Ports Holding, although this has to be settled in negotiations. The latter is planning to create Nassau Cruise Port Ltd as a special purpose vehicle (SPV) to manage the port, and possess 49 percent of its equity under the current model.

A further 49 percent will be owned by the Bahamas Investment Fund, a vehicle that will pool investments from thousands of Bahamians, with the remaining 2 percent controlled by the YES Foundation that will be established to fund youth, educational and sporting activities.