The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

A BAHAMIAN developer yesterday warned this nation will become “increasingly uncompetitive in construction” versus its Caribbean rivals if Bahama Rock’s aggregate production halt leads to protracted supply shortages and worsens already-spiking materials costs.

Robert Myers, principal behind the Windsor Lakes project in south-western New Providence, and head of Capstone Construction, told Tribune Business that a lengthy shutdown by the Grand Bahama-based miner will further exacerbate inflationary pressures for a local building sector that has just suffered a 17 percent hike in concrete prices and experienced “significant” materials cost rises since 2026 started.

Urging the Government to “pay attention” to the threat posed by rising construction prices to real estate and hotel-related development, he revealed that increased shipping costs - caused from oil and fuel price rises sparked by the Middle East conflict - have forced him to halt work on some of his projects because the impact means the financial numbers “don’t make sense any more”.

My Myers, telling this newspaper that it had become “cost prohibitive” to ship from China and other Asian states, acknowledged that shipping costs have recently eased although global oil prices again went past $100 per barrel yesterday.

He warned that the fall-out from any Bahama Rock closure “could kill development in the Family Islands”, which are already far more expensive than Nassau, and added: “The last thing we want to do is jack up the price of materials produced locally.”

The former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chairman’s warning echoes that of Bahama Rock itself, which warned during the public consultation meeting on its proposed Freeport Harbour expansion that The Bahamas could lose its entire supply of 350,000 aggregate tons per year if the project did not receive the necessary government approvals to proceed (see other article on Page 1B).

Bahama Rock’s presentation, from the July 29 town hall meeting, forewarned and left little room for doubt as to what the likely impact would be as it asserted that its demise would force Bahamian contractors and other industries to import higher-costing aggregate from overseas. It estimated that such material would cost double what it takes to produce this locally, with delivery costs “up to 150 percent higher per ton”.

Mr Myers, reacting to Bahama Rock’s plan to temporarily, at least, cease production from next Friday for 60 days amid uncertainty over if it will receive the necessary approvals to access a new aggregate source with its existing one now depleted, said much of the initial construction industry impact will depend on how much material the company has stockpiled in reserve.

“I don’t know what stockpile they have,” he told Tribune Business. “If they have three months of stockpile, people will have to seek alternative sources and that will also push prices up. Concrete just went up; it went up 17 percent.

“If we now have to bring in aggregate from Jamaica, the Dominican Republic, wherever, or the US, you can be sure - because of the additional shipping costs - that things will go up even higher.

“The Government has to pay attention to the fact there is a very high likelihood, if construction prices keep going up because of this type of situation, we are going to become uncompetitive in construction versus our peers in the Cayman Islands, Jamaica, the Dominican Republic and other islands where they are mining and have lower prices on cement, concrete and things like that,” Mr Myers added.

“Already this year we have suffered quite significant increases on materials in the construction industry.” Mr Myers said many of these price hikes related to increased import expenses due to the Middle East conflict’s impact on shipping costs through the jump in global oil and fuel prices.

“Shipping prices have tripled because of what’s happened in the Middle East,” he told this newspaper. “I’ve stopped construction on some of my projects because it doesn’t make sense any more. We cannot afford to ship in from China or anywhere in Asia. It could be Japan. It’s cost prohibitive.”

Mr Myers acknowledged that shipping costs have eased from the $9,600 per container that was being paid during the 2026 first quarter, with prices down now to around $6,000-$8,000 per trailer, but added that this had hit as high as $11,000 at one point. “Shipping prices have moved a little bit, which is good,” he added. “They are off 30-40 percent from the high, but there’s 50 percent more to come down to get a little more palatable.

“But, at the same time, material prices have gone up, which is costly for everybody. And if we have to import, then you have duty, VAT and all the stuff on top of that. Is it [Bahama Rock’s closure] risky, is it detrimental to the construction industry? Time will tell. I would advise the Government that, if they want to de-risk the cost, to look at these projects and figure out what their concerns are with the economic and environmental side of things….

“Because we are an importing nation, the last thing we want to do in materials produced locally is jack the price up on what is made here. I’m not saying we want indiscriminate mining. By the same token, the Government has to be mindful to keep competitive pricing pressures on these things.”

Mr Myers warned that any shortage, or loss of supply, of Bahama Rock’s aggregate and subsequent price increases “could kill development in the Family Islands” by making construction “exponentially more expensive” at a time when multiple resort, infrastructure and other projects are either underway or in the planning pipeline. Family Island development is already far more expensive than Nassau due to shipping and other factors.

The Windsor Lake developer, urging the Government to “start controlling inflation” and business expenses and the cost of living, said the construction sector and other industries will ultimately adjust if Bahama Rock’s demise becomes permanent by finding new suppliers and trade routes.

But, in the short-term, he added: “I think the critical things are what inventory does Bahama Rock have and how long is that going to last. It may create shortages in the industry. It may stop it altogether for a period. If we adapt, it will take time to adjust supply routes.”

Mr Myers also bemoaned the increase in prices for structural fill, which is used for road and house foundations, as a result of the Government cracking down on quarrying operations in New Providence. “Ultimately, the Government of The Bahamas has shut down too many quarries in Nassau, so it’s become increasingly expensive to get structural fill,” he said.

“That material has gone up in price because the Government, through whatever agency, has shut down a lot of indiscriminate mining with people mining on their own private properties.”

Bahama Rock is seeking the necessary government permits and approvals to access a fresh supply source through its acquisition of the 515-acre former Bahamas Cement Company property on Grand Bahama.

The extraction of aggregate and limestone from this site, if given the go-ahead, will also eventually facilitate Freeport Harbour’s near-270 acre expansion and increase its - and the island’s - value as an economic asset by creating a new turning basin and “deep-water berths”.

However, Bahama Rock’s proposal is facing significant opposition from residents in Eight Mile Rock and other communities, who have voiced concerns about the potential environmental, noise and other impacts plus the effects the mining’s blasting will have on their homes and business properties. Several complained the company and government have failed to address concerns that previous blasting caused cracks to appear in their buildings.

Activist groups such as Preserving Paradise have also made clear their opposition, while Fred Mitchell, minister of foreign affairs and Immigration, in an August 7, 2026, statement asserted that the Government does “not support the proposed expansion of the Bahama Rock operation”.