The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

NASSAU’S main commercial shipping port was slightly behind forecast on several key financial indicators for the first two months of its 2027 financial year, it has been revealed, as it takes the lead on repairing critical harbour’s defences.

Arawak Port Development Company (APD), the BISX-listed operator of the Nassau Container Port, disclosed in its just-released 2026 annual report that while revenues were around 2 percent ahead of projections for the two months to end-August other performance indicators were behind forecast pace.

Total container, or twenty-foot equivalent (TEU) volumes, were 1 percent behind forecast for the first two months of a year in which APD is predicting a near-3,000 or 1.9 percent increase to 160,000 for the full 12 months. And the port operator’s operating income, or EBITDA (earnings before interest, taxation, depreciation and amortisation) margin, was two percentage points behind projections.

“For the first two months of financial year 2027, ended August 31, 2027, total TEU volumes were approximately 1 percent below the year-to-date budget, while revenue exceeded budget by approximately 2 percent,” APD told shareholders and the Bahamian capital markets.

“EBITDA was approximately 2 percent below budget, with an EBITDA margin of 50 percent compared with year-to-date budgeted margin of 52 percent. These early results provide an indication of the company’s performance entering financial year 2027, with the outlook for the remainder of the year subject to changes in cargo volumes and operating conditions.”

APD added that “several construction and infrastructure development projects across New Providence are expected to contribute to cargo activity, including ongoing residential, commercial and energy-related developments”, thus pushing TEU volumes slightly higher than the 157,010 recorded for the 12 months to end-June 2026.

“Management has budgeted total container volumes of approximately 160,000 TEUs for financial year 2027, reflecting expectations of continued activity in the construction and import sectors. Nevertheless, management remains cautious in its outlook, recognising that the timing and scale of project-related imports may influence actual cargo volumes and financial performance.”

Dion Bethell, APD’s president and chief financial officer, in his report to investors signalled that the BISX-listed port operator has run out of patience waiting for the Government and other stakeholders to act in addressing Nassau harbour’s deteriorating breakwaters and is prepared to lead the repair effort itself.

He added that APD has hired specialist engineers to assess the current condition of the eastern and western harbour breakwaters, which protect the Nassau Container Port and other nearby shipping facilities, as well as Junkanoo Beach and other harbour users, from large waves during rough weather and hurricanes.

Revealing that APD is also exploring financial options for effecting the repairs, Mr Bethell wrote: “Not every challenge can be solved within our gates. The condition of the Nassau harbour breakwaters is perhaps the clearest example.

“APD’s interest in the western harbour breakwater began with a practical operational concern. Its deterioration allows significant wave energy into the harbour, creating conditions that can affect vessels alongside the Nassau Container Port and interrupt cargo operations. But the more closely we examined the issue, the clearer it became that this is not simply a port problem.

“The same harbour conditions can affect cruise vessels, properties along the waterfront and Junkanoo Beach. When adverse weather prevents a cruise ship from entering Nassau Harbour, the economic consequences extend to taxi drivers, tour operators, retailers, restaurants, beach vendors and many others whose livelihoods depend upon visitors coming ashore.”

Indicating that APD can no longer wait, Mr Bethell added: “APD has therefore engaged specialist engineering expertise to reassess the western and eastern breakwaters and consider solutions capable of providing greater long-term resilience.

“We believe the objective should extend beyond repairing what has deteriorated. The question is how Nassau Harbour can be better prepared for the severe weather events it may face in the future. We are also examining potential financing approaches so that our engagement with government can be constructive and solutions-oriented.

“Good infrastructure is often most appreciated when it fails. Our responsibility is to do everything we reasonably can to address known vulnerabilities before that happens.”

Mr Bethell had last year said the failure to repair Nassau Harbour’s western breakwater remains the greatest risk for APD’s “safe operations” and the smooth functioning of New Providence’s import economy.

He added that the breakdown in protection provided to commercial shipping carriers when docked, or trying to dock, at Arawak Cay had once again “crippled cargo operations” on days when there was bad weather and rough seas.

“The western harbour breakwater remains the single most consequential infrastructure risk for safe cargo operations. This year, severe weather once again underscored the urgency of action, crippling cargo operations while cruise vessels remained relatively unaffected, and causing significant coastal erosion along Junkanoo Beach, one of the region’s busiest tourism sites,” Mr Bethell said then.

“APD continues to advocate for an immediate public–private solution. Every season of delay compounds risk for vessels, crews and commerce. Addressing this vulnerability will be a defining act of national resilience.” Mr Bethell had last month told Tribune Business that the Nassau Harbour breakwater repairs remain “a work in progress”.