The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE NEAR-$180M project to provide cleaner electricity to vessels docked at Nassau Cruise Port will “be completed within the next 12-18 months” amid expectations that supply will start in the 2027 third quarter.

Dion Bethell, president and chief financial officer of Arawak Port Development Company (APD), the BISX-listed Nassau Container Port operator, in written replies to Tribune Business questions said the Island Power Producers (IPP) development has signalled it should complete its construction build-out by early 2028.

“We have been advised by the IPP team that the IPP LNG (liquefied natural gas) project should be completed within the next 12–18 months. This is the indicative timeframe communicated by the project team, rather than a confirmed commissioning date,” he explained.

APD, operator of Nassau’s major commercial shipping port, has a $5m investment in the IPP project, which is designed to supply cleaner LNG-fuelled shore power to cruise ships via an underwater cable linking the combined cycle, 70 mega watt (MW) Arawak Cay power plant to the Nassau Cruise Port.

Michael Maura, APD’s chairman, writing in its just-released 2026 annual report disclosed that the IPP project, located on land in close proximity to the BISX-listed operator’s own Arawak Cay facilities, will spearhead development of the container port’s fourth terminal - the Energy Terminal.

Disclosing that installation of IPP’s generation capacity is expected to be finished by the 2028 first quarter, he wrote that the value of APD and its port “extends beyond cargo handling” to supporting “changing national priorities” such as energy reform with critical infrastructure.

“APD is pleased to be contributing to the transformation of The Bahamas’ energy sector through its investment in Island Power Producers and the development of a fourth terminal at the Nassau Container Port to be known as the energy terminal,” Mr Maura said.

“This development represents an important expansion of the port’s role in the national economy. The energy terminal will support the receipt and distribution of LNG, facilitating power generation in New Providence and the Family Islands, including Abaco and Eleuthera.

”Under the planned arrangements, Island Power Producers will operate the power generation components of the terminal, while Domicisle Ltd will manage LNG supply and distribution.”

No further details on Domicisle Ltd were provided by the APD annual report. However, Internet research by Tribune Business shows its Board of Directors is comprised of the same Mr Maura; Anthony Ferguson, president of CFAL, which raised the financing for Island Power Producers; and George Mosko, president of Island Site Development (ISD).

Domicisle’s chief executive is Greg Buffington, described as the “original founder and former president of Carib Energy, which was acquired by Crowley Maritime”. Its focus is on LNG transportation and distribution via the supply of ISO tanks; LNG bunkering for cruise and cargo vessels; and LNG “gas to power”.

Speaking to the status of IPP’s project, Mr Maura wrote in the APD annual report: “Progress is already evident. In July 2026, the first LNG storage tanks arrived in Nassau, marking an important milestone in the project’s development. Further deliveries and construction activity are planned as the facilities advance towards commissioning.

“Looking ahead, new power generation facilities in Abaco and Eleuthera are expected to be commissioned during the second quarter of 2027 with LNG supplied through the Nassau Container Port.

“The IPP power plant located at the energy terminal is scheduled to begin generating electricity in the third quarter of 2027, with the planned expansion of generating capacity expected to be completed in the first quarter of 2028.”

The energy terminal’s addition will enable APD to further diversify its revenue base, broadening it beyond just commercial cargo, automobiles and construction materials and aggregate. It will also represent an additional revenue stream for the company’s shareholders, which are split between the Government and shipping companies, each with 40 percent, and the public’s 20 percent.

APD’s profits for the year to end-June 2026 jumped by 13.2 percent to $14.85m, and Mr Maura added that the energy terminal’s introduction will help relieve pressure to implement future shipping tariff and rate increases, thus easing cost of living pressures on hard-pressed Bahamian families.

“There is a direct relationship between cargo throughput and the cost of operating a port,” the APD chairman said. “Greater cargo volumes allow operating costs to be distributed across a broader revenue base, reducing the pressure to recover these costs through increased port charges.

“This relationship is particularly important in The Bahamas, where the cost of imported goods ultimately affects businesses, consumers and the wider economy. The introduction of LNG as a new cargo stream is therefore expected to deliver benefits beyond the additional revenue it will generate.

“By contributing the port’s shared operating costs, these volumes will help mitigate pressure for future tariff increases. Our objective is not simply to expand APD’s commercial activities, but to strengthen the company’s financial position in ways that support competitive charges, continued investments and reliable service.”

Mr Maura also disclosed that APD is expanding its crane capacity by one to four to ensure it can match the ever-increasing demand caused by higher cargo volumes and larger ships. This, he added, represents an upgrade from the three-crane model the company started with in 2011, which provided sufficient “flexibility” for two to support vessel operations when one was in maintenance.

“Since then, vessel calls have increased, ships have become larger, and cargo requirements have grown more demanding,” the APD chair said. “These developments have reinforced the importance of maintaining adequate capacity and operational flexibility.

“APD is therefore expanding its mobile harbour crane fleet through the acquisition of a Liebharr 550, with a lifting capacity of 154 tons. By 2027, the port is expected to operate a fleet comprising two Konecranes ESP 6 units, a Liebherr 420 and the new Liebherr 550. Three cranes will be available for operations at any given time, allowing the fourth to undergo scheduled maintenance.

“This investment will strengthen cargo-handling capacity while protecting the equipment availability upon which our shipping partners depend. A smarter port is not simply one with greater capacity. It is one that anticipates demand, manages its assets responsibly and invests before operational constraints become obstacles to growth.”

Mr Maura also disclosed that APD is taking registrar and transfer agent services back in-house, having received Securities Commission of The Bahamas approval to manage and administer records of its shareholders, and the buying and selling of its shares, itself.

Bianca Aranha will head APD’s registrar and transfer agent department, and Mr Maura said: “Bringing these functions within the company will allow us to improve shareholder communication, strengthen administrative responsiveness and provide more direct assistance to our investors.”