The Tribune

By Roderick A. Simms II

An advocate for sustainable Family Island growth and development

E-mail: RASII@ME.com

A proper means of inter-island transportation and accessibility is imperative for the economic growth of the Family Islands. Achieving this is not an overnight task, but now is the time for better solutions - outside of the government - on how residents and business owners in these Family Islands can maximise such links. There is need for an improved mail boat system and postal services across the Family Islands because many residents still depend on them to obtain gasoline, supplies, food, basic necessities, equipment and monies. However, these services are inconsistent and subpar. And potential investors may not be interested in doing business on islands where such problems are evident and ongoing.

As it stands

The Family Islands are in need of an improved means of transportation via sea. Residents rely heavily on the mail boat to get basic necessities since these islands are situated further away from the capital. This makes it even more critical for the mail boat system to function properly. However, complaints have surfaced that mail boat services have become more unsettling to residents than beneficial. It has been alleged that mail boat operators charge residents what they want to transport goods/inventory, resulting in price fluctuations. These reports suggest that mail boat operators have not been abiding by the tariffs set by the government. The Mail Boat Owners and Operators Association has often advocated for an increase in these tariffs but, before there is such a rise, residents should be guaranteed a more reliable service that exceeds their expectations. This does not change the fact that government does need to quickly look into changing these tariffs, which are antiquated and definitely in need of reform.

The cost of living is higher in the Family Islands, and business owners are placed at even greater disadvantage if their inventory is shipped at a later date or does not arrive at all. While these problems have existed for years, and should be addressed by the government, perhaps there is another alternative that does not require significant taxpayer subsidy.

Drawing Board

Perhaps the time has come for a group of private investors to get together and form a solution that involves a new inter-island freight company that can service the Family Islands. This potential alternative to the mail boats comes with both its advantages and disadvantages. With all things being held constant, competition can usher in more reliable services, on time deliveries, and a more collaborative relationship with customers. However, a private company operating without government subsidy while still incurring fuel costs will then have to pass these expenses on to the consumer. Therefore, the pricing for services may differ. The choice then comes down to the consumer. Will a consumer rather pay $20 for a better service or $5 for another service where there is a high probability of longer wait times? Some consumers may not be able to afford the better service but others, particularly small business owners, may gravitate towards the possibility that a new freight company could help to increase efficiency and financial opportunities. As a business owner who is heavily dependent on freight services, a faster and more reliable version could mean more business and eventually help to achieve increased consumer spending.

It is important that freight companies help to create economic growth rather than wait for business to pick up and then meet consumer demands. But this cannot happen if there is political interference and bureaucratic “red tape”. These businesses can help each island become a developed hub for receiving/shipping goods given the geography of The Bahamas. There is a tremendous amount of economic potential in such ventures, but it is currently not being maximised.

The most disturbing factor is the time that it has taken those previously, and currently, in charge to get to the bottom of fixing issues that have been lingering now for decades. While the dollar value of such economic opportunities has not been captured, one can assume that it might well be in the millions.

Postal Reform

Another problem that Family Islanders face is the need for an advanced postal system, which could ultimately replace traditional banking. In 1836, the “Public Bank of The Bahamas” was the first bank to open offering commercial services. It was run by the Post Office and closed in 1886. Shortly after, the Bank of Nassau offered similar services, and was open from 1889 to 1916. While the structure of this set-up was simple, it was functional.

The maintenance of a proper postal system has declined over the years with the rise of modern banking and other money transmission businesses. However, many residents in the Family Islands still rely on postal services to receive goods, services and perform banking services. The absence of a working postal system in New Providence has thus complicated life for many who rely on this facility. While other means of getting monies are available, it may not be financially prudent for all to use them. It is key to have different avenues to help accommodate residents living in these islands and ensure all forms of economic growth are being captured. It is also important, once New Providence’s postal services get up and running, that these reforms and restructuring should be adopted in all Family Islands.

Conclusion

There is a vast amount of untapped economic potential here, and that alone sholuld be motivation for someone to step in and make a difference in the inter-island transportation business in The Bahamas. The Post Office is another route to accessing many items that allow residents to survive. If this is not being properly addressed, then two major means of accessibility are not being fully utilised. Infrastructure and capital are two very important parts of a growing economy. The need to fix these issues adds to the work involved in improving the ease of doing business in The Bahamas. It should start with fixing the connectivity issues that will help foster a holistic approach to achieving economic growth. Whether the government or private investors become the solution, until then, residents and business owners will continue to be at a disadvantage.