GB LOOKING UP?: PM touts $350M investment in shipyard and other projects but unionist not impressed

GB LOOKING UP?: PM touts $350M investment in shipyard and other projects but unionist not impressed
Grand Bahama Shipyard.

PM says projects in the pipeline for GB signs of “progress, hope and confidence”

Russell: Shipyard investment “nothing new”, just insurance funds

NASSAU, BAHAMAS — Carnival Cruise Lines and Royal Caribbean Cruise Lines have agreed to a combined investment of approximately $350 million in the Grand Bahama Shipyard, Prime Minister Dr Hubert Minnis revealed yesterday, noting that expansion works on the shipyard will begin as early as October.

During his wrap-up to the 2021/2022 budget debate, Minnis stated: “I am pleased to announce that Carnival and Royal Caribbean have agreed to a new combined investment of approximately $350 million in the Grand Bahama Shipyard.

“To understand the scale of this investment, the House may recall that the original investment and other investments to date in the shipyard have totaled approximately $250 million dollars. The new investment will match this and exceed it by $100 million.

Prime Minister Dr Hubert Minnis wraps up debate on the 2021/2022 budget in the House of Assembly on Monday, June 21, 2021. (BIS PHOTO/YONTALAY BOWE)

“The proposed infrastructure works will replace the two damaged docks with even larger ones. The new docks will be capable of handling and servicing the largest ships in the world. This will result in a notable increase in employment and economic activity on Grand Bahama and for local businesses throughout Freeport and Grand Bahama.

“The government and the owners of the shipyard will work on a new partnership agreement that benefits the people of Grand Bahama. More details will be presented in the weeks and months ahead, but I wish to note that expansion works on the Grand Bahama Shipyard will begin as early as October 2021.

“This is a sign of progress, a sign of hope and a sign of confidence. Grand Bahama, like the entire Bahamas, is on the way back. This is one of the biggest investments in Grand Bahama in its history.”

Cruise rivals Carnival and Royal Caribbean both own an equal 40 percent stake in the shipyard, with the Grand Bahama Port Authority (GBPA) owning the 20 percent balance.

The shipyard was left at a significantly reduced operational capacity after a major accident involving the Oasis of the Seas cruise liner in April 2019 destroyed a dock and left several injured.

Kirkland Russell.

However, Kirkland Russell, vice president of the Commonwealth of The Bahamas Trade Union Congress, yesterday sought to downplay the investment announcement, suggesting it is mostly being facilitated by insurance proceeds to repair damaged infrastructure rather than new investment.

“It didn’t make sense to me to tout it as such a major investment when this is money they are getting from the insurance to repair what was damaged. This is not really anything new,” said Russell.

“I thought the prime minister should have taken the opportunity to speak to the disparity of the Bahamian versus foreign workforce, the need for a comprehensive training program there for Bahamians and the need to implement laws in this land to deal with casual and contractual workers.”

 

In the pipeline

Speaking yesterday to another proposed investment on Grand Bahama, Minnis announced a groundbreaking for Carnival’s $200 port development project is imminent.

Minnis said: “The government continues to work with Carnival on the permitting process and we expect to break ground shortly.”

Regarding Royal Caribbean and the ITM Group’s $200 million hotel and cruise port project, Minnis noted: “Both projects have been delayed because of Hurricane Dorian and COVID-19. However, both developers have confirmed they are moving forward and we expect the final negotiations for the harbor project and the hotel to be completed shortly.”