Invest Grand Bahama
45
INVEST GRAND BAHAMA INVEST GRAND BAHAMA
-
Upload
land-marine-publications-ltd -
Category
Documents
-
view
239 -
download
2
description
Invest Grand Bahama published by Land & Marine Publications Ltd on behalf of The Grand Bahama Port Authority Ltd
Transcript of Invest Grand Bahama
INVEST GR AND BAHAMA
I N V E S TG R A N DBAHAMA
To advertise in this e-edition please contact Lester Powell at Land & Marine Publications Ltd.
Tel: +44 (0)1206 752902 or Email: [email protected]
INVEST GR AND BAHAMA
CONTENTS
1
THE GRAND BAHAMA PORT AUTHORITY LIMITED PO Box F-42666 Freeport, Grand Bahama Island Tel: +242 350 9087 Fax: +242 352 6184www.investgrandbahama.com
Invest Grand Bahama was published by:
Land & Marine Publications Ltd, 1 Kings Court, Newcomen WaySeveralls Business ParkColchester CO4 9RAUnited KingdomTel: +44 (0)1206 752902 Fax: +44 (0)1206 842958E-mail: [email protected]: www.landmarine.com
Printed by: Refl ex Litho Ltd
The opinions expressed in this publication are not necessarily those of the editor nor of any other organisation associated with this publication.
No liability can be accepted for any inaccuracies or omissions
ISSN 1754-3258
© 2009 Land & Marine Publications Ltd
3 FOREWORD
5 INTRODUCTION Unique status has made Grand Bahama a power ful engine for national growth
7 WALLACE GROVES One man’s vision that led to a mecca for tourists
8 FREEPORT CONTAINER TERMINAL Freepor t Container Terminal
11 DEVCO Key player in land development sector
13 GRAND BAHAMA INTERNATIONAL AIRPORT International airpor t of fers easy access to USA
15 FREEPORT OIL COMPANY Taking care of oil supplies in key sectors
17 LUCAYA SHIPPING Por t agent believes in personal, top quality service
18 GRAND BAHAMA SHIPYARD Successful shipyard continues to invest in new facilities
21 VOPAK World-class storage of oil products
23 FREEPOINT TUG & TOWING SERVICES Main tug operator set to expand its f leet
25 SEA AIR BUSINESS CENTER New sea-air intermodal hub of fers key advantages to shippers
26 FENESTRATION & GLASS SERVICES Clear advantages for window making specialist
27 PHARMACHEM TECHNOLOGIES Chemical company f inds the per fect formula
29 DISCOVERY CRUISE LINE ‘Cruise’ ferry of fers a mini vacation
30 ITL CANCER CLINIC Clinic in forefront of experimental cancer treatment
31 GARDEN OF THE GROVES Glory of the Groves restored af ter hurr icane damage
32 GRAND BAHAMA’S PREMIER FUND SERVICES Exper t fund services for international business companies
32 THE BAHAMAS BREWERY & BEVERAGE CO A treat for local taste buds
33 KEEP GRAND BAHAMA CLEAN For a cleaner and greener tomorrow
35 ROSS UNIVERSITY New medical school for Grand Bahama
36 LUCAYA INTERNATIONAL SCHOOL International school is world-class facility
37 GOLF A paradise for golf lovers
38 SETTING UP IN GRAND BAHAMA
39 USEFUL INFORMATION
land&MARINE
FOR E WOR D 3
Welcome to a preview of one of the most dynamic business platforms in the region, Grand Bahama Island, The Bahamas. We are honored to introduce you to our island and the tremendous opportunities that it presents!
This remarkable center for business is strategically located 65 miles east from the coast of Florida. Still, it is not well enough known by those international business institutions who would be keenly interested in exploring its numerous business advantages.
Created over 55 years ago as a result of the landmark Hawksbill Creek Agreement, Grand Bahama Island offers a virtual tax-free environment, fi rst-rate communications and transport infrastructure, excellent investment prospects and a superb quality of life for its diverse population.
On our island you will fi nd the perfect balance of trade, industry, real estate, tourism, technology and fi nancial services. With its superior services, coupled with the abundance of land available for investment, Grand Bahama is a natural choice for persons seeking attractive business and investment opportunities, complemented by an outstanding living environment.
It is hoped that, with this handbook, you will be able to realize the superior benefi ts of doing business on Grand Bahama Island. You can also visit our website at www.investgrandbahama.com.
There has never been a better time to invest!
Ian RollePresident
FOREWORD
INTRODUC T ION 5
Located just 65 miles from the Florida coast, Grand Bahama is the most northerly of an archipelago of sub-tropical islands, covering some 100,000 square miles, that make up the Commonwealth of The Bahamas.
A large section of Grand Bahama – which today consists of Freeport and Lucaya – is different from the rest of the archipelago and enjoys a unique status within the island nation. Grand Bahama is a dynamic engine for the Bahamian economy – and its unique status can be traced back to the vision of just one man.
This far-sighted man was Wallace Groves, a lumber tycoon from the United States. In the mid 1950s, under the terms of the historic Hawksbill Creek Agreement, he persuaded the Bahamian government to cede to him 50,000 acres of Grand Bahama that was to become Freeport. His idea was to use this land to create an exciting mix of port facilities, industrial areas and residential housing and also to build
a haven for tourists. Remarkably, some 50 years later, the development of Freeport has stayed completely faithful to Groves’s original ideas – confi rming that his concept is as fresh today as it was revolutionary then.
CORNERSTONE
As set out in the cornerstone Hawksbill Creek Agreement, his physical concept was coupled with a highly favorable tax-free environment that still includes, among other benefi ts, no income tax, no corporation tax, no local taxes and no death duties.
Over the years, these advantages have attracted investors from overseas and even from elsewhere in the Bahamas. Today, investors continue to choose Grand Bahama as the location for their businesses. They come from a range of sectors: maritime, industry, trade, logistics and distribution, manufacturing, e-commerce, real estate and tourism.
UNIQUE STATUS HAS MADE GR AND BAHAMA A POWERFUL ENGINE FOR NATIONAL GROW TH
6 INVEST G R AND BAHAMA
Key to the original concept, and even more relevant today, is Freeport harbor and its world-class container terminal, thriving shipyard and impressive cruise ship facilities. The harbor is operated by a company jointly owned by The Port Group and Hutchison Port Holdings, of Hong Kong. Many of the most recent investors cite the container terminal and its frequent and direct connections with the rest of the world – especially the Far East – as a main reason for setting up shop in Grand Bahama. They also mention the attractive tax-free environment and the good availability of land.
DISTRIBUTION HUB
Along with the recently established Sea Air Business Center (SABC), these deepsea container services allow Freeport to operate as an offshore distribution hub for the North American, Caribbean and South American markets. Some investors look to offer added value services like packing, labeling and assembling before redistributing goods originating from, say the Far East. Others are using Grand Bahama as a base to manufacturing products using globally sourced components.
Given the importance of Freeport Container Terminal, it is reassuring to learn that the facility is being expanded signifi cantly with more quay length and more ship-to-shore gantry cranes to accommodate the latest generation of
containerships. This is the largest container terminal of its kind on the US eastern seaboard, located in one of the world’s biggest man-made harbors.
Meanwhile, and in addition to the harbor, the wider maritime credentials of The Bahamas as a nation are without question. For example, The Bahamas is the world’s third-largest ship registry, while the Bahamas International Maritime Conference & Tradeshow is held each November at the Westin Our Lucaya Hotel.
But there is more to Freeport and Grand Bahama than ‘all work and no play’. Two of the chief benefi ts of living and working on the island are its year-round sunny climate and its leisure facilities. Other key benefi ts include high quality housing in the form of planned communities, wonderful beaches, a safe and secure environment, low utility costs, good schooling and easy access to the USA. And the list goes on, with fabulous golf courses, deepsea fi shing, boating, diving and much more.
Grand Bahama enjoys the best of all worlds. The city of Freeport and the industrial sector are largely confi ned to one end of the island, while the other is all peace and tranquility. In short, there can be no fi ner place for mixing business with pleasure – and that’s how Wallace Groves would have wanted it.
WALL ACE G ROVES 7
The Grand Bahama that visitors see today owes its existence to the amazing foresight of one man. (Later on, the development of Grand Bahama would involve the foresight of several men – but that’s another story.)
That one man was Wallace Groves, a United States fi nancier who had lived on Grand Bahama since the mid 1940s and owned a thriving lumber company on the island. Groves could see possibilities for Grand Bahama that went far beyond his own lumber business. He imagined an island to rival Cuba as a tourist destination.
SPARSELY INHABITED
Back in the mid 1950s, Grand Bahama was little more than a sparsely inhabited pine forest with only a few hundred residents who made a living from fi shing or, like Groves, from lumber. Grand Bahama had sparkled briefl y in the 1920s as a place from which to smuggle liquor into the USA, but soon returned to its sleepy ways after Prohibition ended in 1933.
In 1955 Groves approached the Bahamian government with plans to build a town on Grand Bahama that would be aimed at both tourists and industry. He convinced the pre-independence government of his vision and the two parties drew up a document known as the Hawksbill Creek Agreement (see separate story).
Groves started work on transforming Grand Bahama. He was joined in his endeavors by a reclusive shipping and property magnate, Daniel K. Ludwig – once the USA’s richest man – whose company built the harbor at Freeport, and by Canadian entrepreneur Louis Chesler, who began to develop what is now the Lucaya tourist area.
Groves’s shares in the Grand Bahama Port Authority were later bought out by Edward St George and Sir Jack Hayward.
A HISTORIC DAY IN 1955
The Grand Bahama Port Authority can trace its origins to a single document, the Hawksbill Creek Agreement.
The agreement dates from 1955 when the Government of The Bahamas and United States citizen Wallace Groves opted to establish a new city, industrial area and port on a large slice of Grand Bahama.
Under the terms of the agreement, Groves was granted 50,000 acres with an option to purchase a further 50,000 acres at a future date. He set up what is still The Grand Bahama Port Authority (GBPA) to administer and develop the land allocated to him.
However, the key feature and cornerstone of the agreement was that the area administered by The Grand Bahama Port Authority would enjoy 30 years’ exemption from income, capital gains and real estate taxes. This was later renegotiated and the port authority’s tax-free status has since been extended to 2054.
ONE MAN’S V IS ION THAT LED TO A MECCA FOR TOURISTS
8
FREEPORT CONTAINER TERMINAL
FR EEPORT CONTA INER TER M INAL
The centerpiece of Grand Bahama’s giant harbor and surrounding industrial area is Freeport Container Port (FCP), which is well able to handle the latest generation of ultra large containerships.
Privately owned and operated by Hutchison Port Holdings (HPH), of Hong Kong, the Container Port has been in operation since 1997. The facility has been expanded recently and its annual throughput capacity has been increased from 1.8 million teu to 2.4 million teu.
HPH operates 48 other container terminals in 25 countries worldwide.
Much of the success of FCP is due to its prime location just 65 miles from the Florida coast, on one of the world’s busiest shipping routes, and in the region’s deepest harbor. For all these reasons, FCP is an ideal transhipment hub for containers in transit to and from the USA’s East and Gulf coasts, the Gulf of Mexico, the whole Caribbean region and South America.
Freeport Container Port is a 24-hour facility incorporating state-of-the-art computer systems coupled with world-class security and total surveillance. The facility makes good use of its operational expertise.
EXPANSION PROGRAM
Due to be completed in 2009, the terminal is undergoing the US$300 million Phase V expansion program, which includes the installation of six new super post-panamax ship-to-shore gantry cranes and the automation of the container stacking area. This increases the previous throughput capacity by around 70 per cent.
Quay length has been increased to 1,536 meters, total stacking yard area to 63 hectares and a depth alongside to 16 meters. This latest phase of the terminal’s development brings total investment in the project to around US$585 million.
FR EEPORT CONTA INER TER M INAL 9
DEEPWATER HARBOR HAS R ANGE OF FACILITIES
The Freeport Harbour Company (FHC) is privately owned and operated through a joint venture between Hutchison Port Holdings (HPH) and The Port Group (The Grand Bahama Port Authority).
Freeport is one of the largest man-made harbors in the world and the deepest harbor in the region. The facility is located only 50 miles from the United States East Coast.
The entrance channel and turning basin are dredged to a depth of 16 meters (52 ft). There is also a large expanse of sheltered waters. The harbor includes cruise and cruise/ferry berths, ro-ro facilities for containerized and LTL cargo, vehicle transhipment, wet and dry docking and shiprepair facilities.
Freeport harbor can simultaneously accommodate three cruise ships (up to 1,000 ft in length), fi ve ro-ro vessels and three ships at the wet docking berths. Vessels with a maximum draft of 30 ft can be accommodated alongside.
DE VCO
KEY PL AYER IN L AND DEVELOPMENT SECTOR
11
The Grand Bahama Development Co Ltd (Devco) owns more than 70,000 acres of vacant land on Grand Bahama Island – specifi cally in the city of Freeport and Lucaya areas.
Devco has sole responsibility for master planning of almost all land in Freeport that has been zoned for tourist, commercial and residential use.
HOUSING PROJECTS
The company undertakes housing projects such as:
• Chesapeake, an entry and middle level development
• Lincoln Park, an upscale development
• Heritage, a 400-acre neighborhood housing scheme.
Devco also sells land to third-party developers.
The company has developed about 40,000 individual lots in 45 subdivisions plus a seven-mile seawater canal system.
Devco is owned by The Port Group Limited and Hutchison Development Bahamas Ltd.
NASSAU ISLAND DEVELOPMENT
An example of the new breed of locally owned fi rms that have invested in Grand Bahama in recent times is Nassau Island Development Co (NID).
NID has set up a US$7 million receiving and processing facility on a 24-acre site in the heavy industrial area of Freeport. The company will dredge sand in the areas of Wood Cay, Great Isaacs Bank and El Dorado Shoal. This sand – or more accurately, aragonite – will be exported by NID for use in non-beach restoration projects.
The seabed around Grand Bahama contains huge deposits of oolitic aragonite – a living material that is formed by mollusk shells and then harvested.
NID will dredge, haul, clean, sell and transport the aragonite sand throughout the Bahamas and also expects to export the material. In addition to its direct dredging operations, NID is a marine company that ships the aragonite. Its location at Freeport offers ready access for the deep-draft vessels that are used to export the sand to markets worldwide.
In total, NID has a fl eet of three tugboats, two oceangoing barges, a large dredging machine and a wide range of land-based machinery.
G R AND BAHAMA INTER NAT IONAL A IR PORT 13
Easy access to all major gateway destinations in the United States is provided by Grand Bahama International Airport.
Privately owned and operated, the airport is a joint venture between The Grand Bahama Development Company and Hutchison Port Holdings (HPH).
The airport is operational 24 hours a day, seven days a week. One of its key advantages is that it provides facilities for US pre-clearance as well as for clearance of Bahamian Customs and Immigration.
CARRIERS
Scheduled and charter air carriers serving Grand Bahama Island include: Air Tran, American Eagle, Bahamasair, Gulfstream/Continental; US Airways and Western Air.
There is a General Aviation Center for private planes as well as cleaning and repair facilities for light aircraft. Car rental agencies are open round the clock and there is a 24-hour taxi service.
The airport has an 11,000 ft runway capable of handling the largest aircraft in service.
* Departures to the US must go through US Customs & Border Protection pre-clearance, which conveniently avoids doing so on arrival in the US.
US visitors may take home US$800 worth of duty-free merchandise. The next US$l,000 is taxed at 10 per cent. Gifts valued up to US$50 may be mailed home duty-free. One liter of wine, liqueur or liquor and fi ve cartons of cigarettes may be carried duty-free.
INTERNATIONAL AIRPORT OFFERS EASY ACCESS TO USA
FR EEPORT O I L COMPANY 15
A major importer of petroleum products such as gasoline and diesel is Freeport Oil Company (FOCOL), the sole supplier of these products in and around Grand Bahama.
A subsidiary of FOCOL owns and operates fi ve retail outlets in Grand Bahama serving various key sectors: marine, business and the chemical industry.
In the marine sector, FOCOL supplies both marine diesel oil (MDO) – a blend of gas oil and heavy fuel oil – and marine gas oil (MGO) as well as lubricants. These are supplied either by truck or by pipeline.
FOCOL’s terminal receives product from Port Everglades about three times a month. The supplies are delivered from Florida by tug and tanker barge.
Storage capacity in Grand Bahama comprises:
• 65,000 barrels of gas oil
• 48,000 barrels of diesel
• 270,000 gallons of propane
• 22,000 barrels of Jet A-1 aviation fuel.
As the company does not specify a minimum delivery quantity, FOCOL enjoys a strong market share among yacht owners and fi shing boat operators, most of whom prefer to take bunkers at dock rather than by barge.
YACHTS
But for FOCOL, yachts are very much a winter season business as these vessels head for the Mediterranean in summer. Other bunker markets can also be seasonal. For example, the Japanese tuna fl eet operates in The Bahamas only at certain times of the year.
The main business of FOCOL, however, is the supply of gasoline on Grand Bahama. The company is also developing its lubricants business. With the expansion of Freeport Shipyard and the Vopak Terminal, there are new opportunities in this market.
FOCOL is a publicly traded company with its shares listed on the Bahamas Stock Exchange (BISX).
TAK ING CARE OF OIL SUPPL IES IN KEY SECTORS
LUC AYA SH I PP ING
PORT AGENT BEL IEVES IN PERSONAL , TOP QUALIT Y SERVICE
17
The Bahamian-owned company Lucaya Shipping, founded in 1982, has carved a niche for itself in the highly competitive and fast-changing ship agency business.
It has achieved this through its local knowledge and experience – and by sticking to the good old-fashioned principle of personal service.
Lucaya Shipping is not a liner agent and does not act for cruise operators. Rather, it is a workaday port agent that also provides its many international clients with other key maritime services such as Customs broking.
In particular, Lucaya Shipping acts for vessels bunkering in or off Freeport and for those using the dry dock. With its experience in Customs broking, the company can obtain imported spare parts for vessels under repair as well as assisting with crew changes.
Lucaya Shipping believes it knows the port of Freeport better than almost anyone else. It works closely with the Grand Bahama Port Authority and is available to make a quick local decision without referring problems to head offi ce outside The Bahamas.
COMPETITION
There are some 10 shipping agents operating in Freeport, so competition is tough. Furthermore, all shipping agents worldwide face the problem of falling margins as commissions are squeezed by principals and as liner operators opt for vertical integration of their operations.
However, Lucaya Shipping believes there is still a market for companies that offer good service – and that is exactly what it intends to go on doing.
18 INVEST G R AND BAHAMA
The fast-expanding Grand Bahama Shipyard has a major geographical advantage thanks to its strategic position less than 100 miles off the Florida coast and directly alongside the main shipping routes of the eastern seaboard.
The shipyard, which opened in 2001, has other key advantages – not least of which is its location on tax-free Grand Bahama Island in a deepwater harbor with easy access.
Other advantages include:
• A perfect climate for shiprepair work. Sunshine and warm temperatures mean few weather delays and quick drying of paints and coatings
• A fl exible, highly trained labor force with international experience, yet with a high percentage of local Bahamian workers at all levels. The shipyard employs about 1,000 workers of whom about 300 are from The Bahamas
• A reputation for quality and reliability that is matched by a competitive pricing policy.
The shipyard is a major regional player in three key areas – shiprepair, conversions and vessel upgrading – and is focused on three market sectors:
• Its signature business is the repair of cruise ships. Grand Bahama Shipyard is a world leader in this niche market, undertaking an average of about 20 cruise ship drydockings a year. As cruise ships tend to be drydocked or repaired within their main itinerary area, the shipyard’s proximity to the US home cruise ports of Miami and Port Everglades is critical to its success in this sector
SUCCESSFUL SHIPYARD CONTINUES TO INVEST IN NEW FACIL IT IES
G R AND BAHAMA SH I PYAR D 19
• General shiprepair. This embraces basic maintenance and repair work on all types of ships. Grand Bahama Shipyard regularly drydocks about 70 non-cruise vessels a year
• Repairs and other work for the oil and gas sectors. Again, the deepwater harbor and the shipyard’s own draft alongside of 60 ft, make Grand Bahama an obvious location for major projects on behalf of customers in this key market.
To meet growing demand, the shipyard has ambitious plans to increase both the scope and capacity of its work. This expansion will be carried out in three phases.
In Phase One (completed early 2009), Grand Bahama Shipyard has invested US$60 million in a third fl oating dry dock, which entered service at the start of 2009. Measuring 310 meters in length and 54 meters in width, the new dock can accommodate vessels up to 55,000 dwt.
This new facility will enable the shipyard to take on more upgrading work on cruise ships – a market sector of growing importance, since vessels built in the 1990s now require life extension work or modernization to meet the expectations of today’s passengers.
To complement the new dry dock, Grand Bahama Shipyard has added a 310 meter outfi tting berth which entered service in early 2009.
EXPANSION
Phase Two will include an expansion of the existing workshops and construction of new workshops plus the installation of a fabrication site where whole sections can be assembled for the cruise ship, general shiprepair and offshore markets.
Plans for Phase Three include the lengthening of Dock 2 by 40 meters to 340 meters so that the shipyard can handle more post-panamax containerships.
At the same time, and in addition to the purely physical expansion of its facilities, Grand Bahama Shipyard wants to assist in the technical development of Bahamians. Work in the shipyard is already viewed locally as steady and well paid. Now the company wants to place more emphasis on Bahamians learning a highly skilled trade with a recognized career path.
VOPAK 21
Vopak Terminal Bahamas, based in Freeport, is an independent storage terminal for crude oil and clean products. It has an installed capacity of 3 million cubic meters, with scope for future expansion to 5 million cubic meters.
Blending, transhipment and bunkering services are also provided by Vopak Terminal Bahamas, which is the largest storage terminal of its type in the Caribbean region. Its tanker jetties can accommodate the world’s largest crude carriers.
The facility is owned by Vopak, with its head offi ce in Rotterdam, and First Reserve Corporation, of the United States. They acquired the former Bahamas Oil Refi ning Company’s storage terminal in Freeport from Petróleos de Venezuela SA in early 2008.
NEW OWNERSHIP
Under its new ownership, the terminal is set to become an international hub for crude oil and petroleum products with the world’s major oil companies as its target customers. The aim is to position this facility as a best-in-class storage and trading platform for the region. The terminal is also likely to stimulate economic growth and generate new jobs for the Bahamas.
Koninklijke Vopak is the world’s largest independent operator of tank terminals, specializing in storage and handling of liquid and gaseous chemicals and oil products, while First Reserve Corporation is a leading private equity fi rm specializing in the energy sector.
Vopak operates 76 terminals in 31 countries with a combined storage capacity of more than 26 million cubic meters. Its terminals are strategically located for users of major shipping routes. Most of Vopak’s customers operate in the oil and chemical industries. It stores many different products for use in a wide range of industries.
DEDICATED TUG SERVICES
Smit Terminal Bahamas provides berthing, unberthing and towage services at Vopak Terminal Bahamas in Freeport.
In addition to its exclusive contract to provide tug services for Vopak, the towage company is on hand to assist vessels calling at Freeport Container Terminal.
Smit Terminal Bahamas has three fi re-fi ghting tugs based at Freeport.
WORLD-CL ASS STOR AGE OF OIL PRODUCTS
FR EEPO INT TUG & TOWING SERV ICES 23
The main tug operator on Grand Bahama Island is Freepoint Tug & Towing Services, which operates fi ve Bahamian-registered tugs of between 3,200 and 3,600 hp. Four of these are azimuth stern drive (ASD) types and the other is a conventional unit. A sixth unit is chartered out.
Freepoint is owned 50 per cent by Svitzer, of the Netherlands, and 50 per cent by Worldpoint Terminals, of Montreal, Canada.
EVER LARGER
The ships that serve Grand Bahama are becoming ever larger as Freeport Container Terminal continues to expand and develop. Freepoint recognizes this trend and the need to expand the size and power of its tug fl eet. The company is already working closely with Mediterranean Shipping Company (MSC), principal user of the container terminal, to fulfi l the operator’s requirements for harbor towage both now and in the future.
Another factor in the tug company’s plans is the installation of a third fl oating dock at Grand Bahama Shipyard and the additional traffi c that this new facility will bring to the port.
As a result, Freepoint was looking to add between two and four new units to its fl eet in the fi rst half of 2009. These would be supplied from within the existing Svitzer group fl eet, which has a pool of modern units, with some 65 tugs under construction at any given time.
The new units will have a bollard pull of about 45 tonnes, with an option to increase this to 50 or 55 tonnes if required, or even to 65 tonnes as demand dictates.
Freepoint serves vessels calling at the South Riding Point bulk oil storage terminal, 35 miles east of Freeport, where tug assistance is compulsory. At Freeport, use of tugs is at the discretion of Freeport Harbour Company.
Two other companies, Nassau Island Development and Smit, also have tug capacity in Grand Bahama.
MAIN TUG OPER ATOR SET TO EXPAND ITS FLEET
SE A A IR B US INESS CENTER 25
A new dedicated Sea Air Business Center (SABC) has been created to take advantage of the interplay between Freeport Container Port – one of the western hemisphere’s largest deepwater container facilities – and the excellent fl ight connections offered by Grand Bahama International Airport.
Located on a 741 acre site next to the airport, SABC* is a dedicated facility for warehousing and distribution. It allows seaborne cargo to be shipped into Freeport duty free. The goods in these containers can then be broken down, sorted, reconsolidated and reshipped. Moreover, value can be added by undertaking activities such as light assembly, packing and labeling before airfreighting the goods to destinations in the United States, Canada and beyond.
In particular, SABC’s proximity to the US East Coast means signifi cant time savings for US retailers when they place their orders. It can mean the difference between receiving a shipment in 72 hours rather than three weeks. The SABC concept also allows locally based businesses to import goods into Freeport, store them in warehouses and then forward them to Nassau.
Work began in 2006 on the fi rst 100,000 sq ft warehouse for the US-based client Associated Grocers of Florida (AGF) – a US$8 million contract utilizing 20 acres of land. AGF serves 42 countries from its new warehouse in Grand Bahama and has now opted to move its entire operation from Miami to Freeport.
Together, Freeport Container Port and SABC offer an opportunity for local and international businesses who import and export merchandise and products to and from The Bahamas to source their goods directly from around the world, taking advantage of the deepsea services provided to destinations such as the Far East by Mediterranean Shipping Co (MSC), the world’s second-largest container operator.
For those in search of a regional storage and distribution hub, there are key advantages:
• No tax on profi ts, capital gains, inheritance or income
• Direct access without Customs clearance
• No taxes on goods imported or exported
• Repacking for domestic and international markets
• Pre-positioning of goods for distribution centers
• Flexible-sized buildings can be built to suit all needs
• Distribution hub for vehicles and parts
• Easy access from all sites to seaport and airport.
• Skilled and well educated local workforce.
* SABC is a joint venture between Hutchison Port Holdings (HPH) and Port Group Ltd (PGL).
NEW SEA-AIR INTERMODAL HUB OFFERS KEY ADVANTAGES TO SHIPPERS
26 FENESTR AT ION & G L ASS SERV ICES
The specialist window and door maker Fenestration & Glass Services (FGS) is the latest company to choose Grand Bahama as a manufacturing and distribution base for its worldwide operations.
FGS invested US$12 million in its new 45,000 sq ft factory, which opened in November 2008 at a four-acre site on Queen’s Highway. Employing between 120 and 150 workers, the company expects to produce 750,000 sq ft per year of hurricane impact glass and about 100,000 hurricane impact windows. Meanwhile, six extrusion lines will provide capacity for 850,000 linear feet of rubber for use in window applications.
HURRICANE IMPACT
There is some local demand for hurricane impact glass and windows, but most of the company’s output will be exported to its main markets in the USA, Canada and Europe. FGS has gained key advantages by locating production in
Grand Bahama. In addition to tax-free status, they include the deepwater harbor of Freeport, which allows the company to source materials and components easily and cost-effectively from around the world. In fact, the owners of FGS recommend that other companies take a close look at Grand Bahama.
With one minor exception, FGS has found every skill and service it could possible require in Grand Bahama. And even that one missing skill is so specialized within the glazing industry that it would not be immediately available wherever the company had located – even in the mainland USA.
FGS is just the type of global business, reliant on deepsea container services for imports and distribution, that Grand Bahama Port Authority is keen to attract.
CLEAR ADVANTAGES FOR WINDOW MAKING SPECIAL IST
PHAR MACHEM TECHNOLOG IES 27
Grand Bahama is home to an independently owned pharmaceutical and fi ne chemical manufacturing plant, operated by PharmaChem Technologies.
The company was originally set up in the 1960s under the name Syntex and acquired by its present owners in 2003.
The plant is located on a 62 acre site, of which only a third is developed, giving room for further expansion.
FOCUSED
In common with other internationally focused companies, PharmaChem Technologies has taken full advantage of Freeport’s good location, deepwater port, favorable tax regime and pro-business environment. These combine to allow PharmaChem to supply its customers in the USA and elsewhere at competitive prices.
PharmaChem Technologies operates two commercial multipurpose plants at its facility. These plants are served by on-site utilities that include a back-up electrical power generator, heating and cooling, compressed air, nitrogen generation, refrigerant capabilities and solvent handling and recovery.
The site also contains a separate administration building, warehousing and maintenance shops.
PharmaChem’s commercial manufacturing capability is supported by its multipurpose kilo lab, pilot plant and recently refurbished laboratories, which provide quality control, process and analytical development, and technical transfer.
CHEMICAL COMPANY F INDS THE PERFECT FORMUL A
DISCOVERY CRU I SE L INE 29
Over 150,000 passengers a year are carried by Discovery Cruise Line on its ferry service between Freeport and Port Everglades in southern Florida, which operates six times a week.
But, as the name suggests, this is more than a traditional ferry operation. In fact, it is a one-day ‘mini cruise’ with fi ne dining included in the ticket price, not to mention the attraction of broad sun decks and a swimming pool.
The crossing takes fi ve hours and 15 minutes. The Discovery ferry departs Freeport at 4.45 pm and arrives in Port Everglades at 10.00 pm. In the opposite direction the vessel sails from Port Everglades at 07.45 am and arrives at 1.00 pm, giving passengers three hours in Grand Bahama.
ENTERTAINMENT
The One Day Cruise package includes three buffet meals, cruise bingo, a video arcade, cruise shows, a disco and other live entertainment. Gaming enthusiasts can try their luck at the (Las Vegas rules) casino with a range of slots, table games, poker, roulette, blackjack and more.
For those traveling from the United States, Discovery’s cruise and resort packages embrace all the popular Grand Bahama hotels and resorts, combining best value with a convenient and fun way to travel. Grand Bahama is the only island that offers a day cruise ferry service to and
from the US mainland. What’s more, passengers can choose to cruise for the day or they can cruise and stay in Grand Bahama for as many days as they wish.
Cruise-and-stay vacation packages are offered at a wide selection of hotels on the island, from budget to deluxe, including Flamingo Bay Hotel, Sheraton Grand Bahama Island Our Lucaya Resort, Viva Wyndham Fortuna, The Westin Grand Bahama Island Our Lucaya Resort, Taino Beach Resorts & Club and Pelican Bay Resort.
For Bahamians and for others resident on Grand Bahama, the cruise ferry concept offers a cost-effective alternative of traveling to Florida for shopping trips or for a vacation. Goods can also be shipped over using the Discovery Express cargo service.
Since mid 2008 and as additional service mostly for the benefi t of those residents in Grand Bahama, Discovery Express has offered a fast cargo service to and from the US.
Discovery Express is specially geared for shipments over and above those considered to be personal belongings – namely non-accompanied goods (or those valued at over US$2,500) that require an invoice and a bill of lading.
These items for shipment are received at the dedicated Discovery Express warehouses in Florida and Grand Bahama Island.
‘CRUISE ’ FERRY OFFERS A MINI VACATION
30 ITL C ANCER CL IN IC
A pioneer in the experimental treatment of cancers is the ITL Cancer Clinic in Grand Bahama. The clinic offers a range of treatments for a wide variety of cancers, underlining the island’s position at the leading edge of medical advancement.
Being based in Grand Bahama allows ITL to undertake its experimental work with a degree of freedom that would not be possible in the USA. However, ITL does operate in compliance with the laws that apply in the UK and Europe.
CLIENTS
Given the location of Grand Bahama, it comes as no surprise that about 70 per cent of the clinic’s clients are from the USA, with the balance consisting of patients from Canada and farther-fl ung countries such as Iceland, Italy, Pakistan and even Bhutan. Many patients learn of the clinic’s work by way of the internet.
Before patients can attend the clinic, however, ITL needs to view their medical records and evaluate blood tests to see whether they are actually fi t enough to be treated.
Once approval has been given, patients stay in Grand Bahama and attend an out-patients’ clinic for up to eight weeks at a time. They then visit the clinic daily. Blood tests are undertaken in the morning. Depending on the results, patients come back to pick up their treatment. After the eight weeks, patients go home for a 16-week period and then return to Grand Bahama for a further two weeks to reassess their situation.
The clinic’s success rate is about 15 per cent. This may appear low, but is actually about fi ve percentage points more successful than chemotherapy and radiation.
The advantage of the clinic’s treatment is that it uses naturally occurring blood products without the unpleasant side effects that result from, say, chemotherapy. This blood, from local hospitals in Freeport, is specially treated and used to make a vaccine. In essence, what the clinic is trying to achieve is to make a patient’s immune system resemble the immune system of someone without cancer.
Since the clinic was established over 30 years ago, some 8,000 patients have been treated. The clinic treats about 100 new patients each year. At any one time there are about 400 patients undergoing treatment, some of whom have survived over 25 years.
ITL’s latest technique is to use human placental extract, which seems to help in terms of rejecting cancer. Early results have been good, but the technique is used only on patients who have failed to respond to all other treatments.
The success of this clinic over many years has attracted interest from others in the fi eld of cancer research. In late 2008 Quantum Immunologies, of the USA, signed a co-operation agreement with ITL. Quantum wants ITL to undertake repeat work using an antigen, a substance that prompts the generation of antibodies. ITL is confi dent that the two parties will achieve something of signifi cance in the treatment of cancer.
CL IN IC IN FOREFRONT OF EXPER IMENTAL CANCER TREATMENT
GAR DEN OF THE G ROVES 31
Before the disastrous hurricanes of 2004, the Garden of the Groves was regarded as the fi nest botanical garden in the Caribbean region.
Set on 12 acres of land in Lucaya and founded by Wallace Groves in 1973, the garden is owned by the Grand Bahama Port Authority (GBPA). It was largely untended after the hurricanes because of the sheer scale of the task of restoration.
In 2007, however, Erika Gates and Michelle Hanson set up Bahamas Parks, Gardens & Recreation to lease and reopen the Garden of the Groves. GBPA allocated funds for the restoration.
REBUILDING
Restoring the garden involved not only dealing with the surviving fauna, fl ora and debris, but also rebuilding damaged buildings and installing a new pump system to power the waterfalls, circulatory ponds and fountains.
Unfortunately, only one alligator survived the hurricanes and this creature has since been transferred to Florida. However, the 12 remaining red-eared slider turtles are staying.
In total, the Garden of the Groves has more than 10,000 species of fl owers, shrubs, trees and exotic plants. The garden is also home to exotic bird species such as Cuban emerald hummingbirds and Greater Antillean bullfi nches.
A traditional chapel has been refurbished and is now a popular setting for weddings, meditation and prayer. This is a replica of the fi rst chapel built on the island at Pineridge and the gallery features the work of artists Chantal Bethel and Claudette Dean as well as sculptures in wood by Antonius Roberts.
There is also the Grand Bahama Labyrinth, the only one of its kind in The Bahamas and an exact replica of the labyrinth walked by early Christian pilgrims at Cathédrale Notre-Dame de Chartres in France.
A new three-tiered deck area with a café, the Lofty Fig Deck, has been constructed under a large fi chus tree, which was actually planted for the opening of the garden.
The Garden of the Groves was sorely missed by tourists and locals alike during its closure and period of neglect and its reopening had been anxiously awaited.
GLORY OF THE GROVES RESTORED AF TER HURRICANE DAMAGE
32 G R AND BAHAMA’ S PR EM I ER FU ND SERV ICES & THE BAHAMAS B R E WERY & B E VER AGE CO.
Formerly known as Oceanic Fund Services, Grand Bahama’s Premier Fund Services is involved in the creation and subsequent running of Bahamian-registered international business companies (IBCs) on behalf of overseas clients.
These IBCs are used as legal vehicles for a range of activities, but primarily as specialized multi-investor funds for non-Bahamian investors. These investments are often at the riskier end of the market, so the risk needs to be spread.
Applications are processed by Premier, which also undertakes the administration and minuting of board meetings for the IBCs and prepares regular reports to investors about the performance of the funds in which they are invested. Some of these are valued at up to US$10 million.
The Bahamas is seen as an attractive jurisdiction in which to set up an IBC, not only because of the low annual running costs, but also because it has a pool of professionals, including good attorneys, and offers a cost-effective IBC structure. In this jurisdiction, IBCs do not fi le tax returns – because there is no local corporation or capital gains tax – and pay only a token US$350 a year to the Bahamian government for a license.
Premier, which moved to Freeport from Nassau, is a good example of how local businesses have been relocating to Grand Bahama from elsewhere within The Bahamas. The company says its key reasons for making this move are:
• Lower cost of commercial real estate• Quality of life• Proximity to the USA• Lack of road congestion.
A TREAT FOR LOCAL TASTE BUDS
It was only a matter of time before someone realized that Grand Bahama would be an excellent location for a brewery. Not just because Bahamians are fond of beer, but because global commerce makes it easy to import the basic ingredients to a tax-free location and then export the fi nished product.
The Bahamian Brewery & Beverage Co is a new venture employing about 30 local people and representing an investment of US$15 million by James Sands. The brewery began operating in 2007 and served the Bahamian market initially before gearing up for exports.
A lager using the Sands brand name is the brewery’s fi rst product. This will be followed by another lager, a stout and a malt beverage. Sands lager competes with more established local brews such as the internationally known Kalik beer.
About 80 per cent of beer in The Bahamas is consumed by people in New Providence and not on Grand Bahama; but excellent local transport links enable Sands to compete nationwide with imports and other Nassau-based brands.
EXPERT FUND SERVICES FOR INTERNATIONAL BUSINESS COMPANIES
K EEP G R AND BAHAMA CLE AN 33
Spearheaded by The Grand Bahama Port Authority Ltd, the Keep Grand Bahama Clean (KGBC) campaign is a partnership initiative by the public and private sectors to promote and develop a beautiful, clean and healthy local environment.
The key focus of the campaign is to educate the wider community in Grand Bahama about the importance of achieving and then maintaining a healthy local environment for the enjoyment of all residents.
A number of co-ordinated events have taken place to raise awareness of the campaign and to educate local school children of the need to keep Grand Bahama clean and green.
FOR A CLEANER AND GREENER TOMORROW
For example on Earth Day in 2009, KGBC donated all local schools a tree indigenous to Grand Bahama and organized students in order to carry out a campus litter clear-up.
At the same time, KGBC has encouraged local people to take matters into their own hands and it has been good to see community leaders now embracing the campaign and organizing their own small-scale clean-ups.
The campaign slogan is: Keep Grand Bahama Clean – it’s everyone’s business and everyone’s responsibility: our lifestyles, our economy and our future depend on it
ROSS U N IVER S IT Y
NEW MEDICAL SCHOOL FOR GR AND BAHAMA
35
a new medical school was opened in Freeport in January 2009 by ross university. the new 126-acre facility is designed to meet the growing demand for places at the university and eventually it may accommodate up to 3,000 students.
Grand Bahama is the latest area of expansion for the fast-growing Ross University, which already has a School of Medicine in Dominica and a School of Veterinary Medicine in St Kitts & Nevis.
Initially, students attending Ross University Freeport are being housed and taught in 30,000 sq ft of temporary space at Seahorse Shopping Plaza. But in 2010 they will move into a new facility covering 60,000 to 80,000 sq ft.
Ross University Dominica will be the medical school’s primary campus. All medical students will start their training in Dominica, with some third and forth semester students transferring to Freeport.
Ross University has responded to a growing demand from students for the creation of a new campus at Freeport. Grand Bahama was seen as a natural location for expansion and development by one of the world’s leading providers of medical and health sciences education.
eXPansion
The Ross University Freeport facility is set to expand to meet the requirements of its medical programs in future and there is potential for adding more degree programs. Initially, the new facility will have between 18 and 25 faculty members.
Total investment in the project will depend on the pace of development, but capital expenditure, including land and buildings, is put at between US$35 million and $60 million over the next fi ve years.
• Ross University, with its main campus in Dominica, is a division of DeVry Inc, which is quoted on the New York Stock Exchange. Its administrative offi ces are in North Brunswick, New Jersey.
36 LUC AYA INTER NAT IONAL SCHOOL
For families with young children considering a move to grand bahama, the quality of local schooling is naturally a prime consideration.
All can be reassured by the fi ne reputation of the Lucaya International School (LIS), which was established in the 1990s specifi cally to cater to expatriate children. Today, however, about half the school’s intake is from Bahamian families.
neW location
Originally located in small premises, LIS has since moved to a 12-acre site in a quiet residential area of Lucaya. Current enrolment is about 240 students. There is ample classroom space as well as a library, a computer laboratory and specialist rooms for arts and crafts, music, science and academic support.
The school is governed by a seven-member board of directors, of whom four are appointed by the Foundation Council and three are elected by parents.
As its name suggests, LIS provides an international education, incorporating best practices and standards from the United States, Australia and Europe. The academic program is designed to prepare students for the International Baccalaureate Diploma and SAT as well as for a broad range of subjects at Edexcel IGCSE level. The primary school also follows the IB Primary Years Program. Furthermore, LIS aims to prepare individual children from overseas for the educational systems to which they may later move or return.
Entry to the school is based on previous school reports and, depending on age, also involves tests and/or interviews. The academic year runs from September to June.
The primary and secondary schools consists of two purpose-built buildings, each with its own quadrangle. The school’s Early Childhood Department has its own play areas and equipment, while the recently completed IB Diploma building enjoys something of a university atmosphere.
The school has playing fi elds and basketball courts. A swimming program for primary students is held nearby.
INTERNATIONAL SCHOOL IS WORLD-CL ASS FACIL IT Y
GOLF 37
blessed with the perfect climate for golf, grand bahama can boast some exceptionally fi ne courses.
There are two at the Our Lucaya Beach & Golf Resort, two at the Resort at Bahamia and the smaller Fortune Hills Golf & Country Club.
At Our Lucaya there is a choice of two testing courses: the 6,824 yard Lucayan Course, designed by Dick Wilson, and the 6,930-yard Reef Course, by Robert Trent Jones, Jr.
The Lucayan is famed for its tightly guarded greens, which compensate for its generously wide fairways. The links-style Reef Course is renowned for its abundance of water hazards, which feature on 13 holes.
The two courses at Bahamia, the Ruby and the Emerald, have an equally fearsome reputation. Like the Lucayan and the Reef, they were built in the 1960s, but have since been upgraded as part of a US$6 million renovation scheme. The Ruby is now over 7,000 yards and can prove tough when windy. The more sheltered Emerald is 6,800 yards.
under construction
Set in 17 acres, Fortune Hills is a nine-hole golf course that was also co-designed by Dick Wilson.
Under construction and due for completion in 2009 is an 18-hole links-style course, designed by Arnold Palmer, which forms part of the impressive Ginn sur Mer development at West End. The Palmer course will be followed by a Jack Nicklaus-designed course.
A PAR ADISE FOR GOLF LOVERS
38
SET TING UP IN GR AND BAHAMA
SE T T ING U P
establishing a business in the bahamas involves approvals by several governmental or regulatory agencies depending on the type of business being established and the industry in which the business will operate.
Below is a general outline of this process. For more specifi c inquiries, please contact the Grand Bahama Port Authority.
becoming a licensee
The Grand Bahama Port Authority is responsible for licensing all businesses within the port area of Grand Bahama Island and has an effi cient process for approving new investment. Potential investors can expect to receive helpful guidance from GBPA’s Licensing Department every step of the way to make the process as straightforward and effortless as possible.
There is huge scope for future investment across a range of sectors including trade, industry, real estate, tourism, fi nancial services and technology. And no other location in the region can offer the diversity of land that is available on Grand Bahama Island. For investors of all kinds, the excellent transport and communications infrastructure and the wonderful, almost carefree way of life, have proved an irresistible combination.
Documents required for applying for a license are:
• Application form completed and submitted Appendix ‘A’ and Affi davit of Character Forms completed and submitted (In the event of partnership, these forms must be completed by each shareholder)
• Non-refundable processing fee
• Submission of business and bank references
• Submission of fi nancial, business and personal references for each shareholder, with personal identity data to enable independent background search and verifi cation
• Any other pertinent information that may support the application, including business plan and explanation on goods or services to be produced or provided.
oFFsHore
The majority of companies formed in The Bahamas for offshore purposes are incorporated under the International Business Companies Act 1989. However, this law did not supersede the existing companies law, most recently restated in the Companies Act 1992, which is based on English Law and is used to form various types of company used by businesses trading in The Bahamas, and also for certain other special purposes.
Companies formed under the Companies Act 1992 can be private companies limited by shares or by guarantee, or can be public companies. For all these types of company, Memorandum and Articles of Association must be fi led at the Companies Registry. A minimum of two members is required and there must be a registered offi ce in The Bahamas. If a company is going to trade locally, it will need an appropriate business license.
USEFU L INFOR MAT ION 39
airlines
Airlines serving Grand Bahama International Airport include AirTrans Airways (Atlanta and Baltimore), American Eagle (Miami), Bahamasair (Nassau and Fort Lauderdale), Continental Connection (Miami, West Palm Beach, Fort Lauderdale and Orlando), Continental Express (Newark), Delta Connection (Atlanta), Eurofl y (Milan), Falcon Air (US destinations), Flamingo Airways (Islands of the Bahamas), Laker Airways (Fort Lauderdale), Major’s Air Services (Bahamas), Southern Air Charter (regional), US Airways, (Charlotte, Philadelphia, New York).
business Hours
Shops are normally open Monday to Saturday from 9 am to 5 pm. Port Lucaya Marketplace, the International Bazaar and some straw markets are open on Sunday as well. Most banks are open Monday to Thursday 9.30 am to 3:30 pm and Friday until 4.30 pm.
climate
In winter, between November and April, temperatures vary between 61°F at night and 81°F during the day. In summer, between May and October, temperatures vary between 70°F at night and 90°F during the day and the relative humidity varies from 68 to 92 per cent. Water temperature varies between 63°F in winter and 86°F in summer. Rainfall is scarce from November through April each year, but showers can occur from May through October.
currency
The Bahamas dollar has a ratio of 1:1 with the US dollar. Bahamian and US currencies are interchangeable.
driVing
The minimum age for driving is 17 years (25 years to rent a vehicle). Cars drive on the left, but most of the cars are imported from the US and have the steering wheel on the left side.
electricity
Standard output is 120 volts AC, 60 hertz using American-style three-pin plugs.
FligHt times
Freeport is about nine hours from London, seven hours from Los Angeles, three hours from New York and 35 minutes from Miami.
geograPHy
Grand Bahama Island covers an area of 530 square miles and its highest point is just 68 ft above sea level.
USEFUL INFORMATION
40 USEFU L INFOR MAT ION
History
The earliest inhabitants of Grand Bahama Island were the Siboneys, an Indian race who lived off the sea. After several millennia they were replaced by the Lucayans. When Christopher Columbus visited the Bahamas in 1492 these people numbered about 40,000 of whom about 5,000 lived on Grand Bahama Island. However, within 25 years they had all perished or had been transported off the island as slaves. Grand Bahama Island became generally depopulated and, despite the rise of the Bahamian capital, Nassau, it remained under-developed until the mid 20th century, when the signing of the Hawksbill Creek Agreement brought the city of Freeport into life and granted 50,000 acres of development land to Wallace Groves’s company, the newly founded Grand Bahama Port Authority (GBPA).
Holidays
Public holidays are observed on New Year’s Day, Good Friday, Easter Monday, Whit Monday, Labor Day (first Friday in June), Independence Day (July 10), Emancipation Day (first Monday in August), Discovery Day/Heroes Day (October 12), Christmas Day and Boxing Day.
language
The official language is English.
legal age
The legal age for drinking, gambling and voting is 18.
location
Grand Bahama Island is located at latitude 26°31’N; longitude 78°46’W.
PoPulation
75,000
Public transPort
Regular bus services between Port Lucaya Marketplace and the International Bazaar and downtown Freeport. Most hotels offer shuttle services and taxis are readily available.
telecommunications
All telephone services are provided by the Bahamas Telecommunications Co (BaTelCo) with direct dialing through a wholly digital network. Cell phone users need to purchase a local phone. The Bahamas is linked to the US mainland via three undersea fiber optic cables.
time
Eastern Standard Time operates throughout The Bahamas, which is five hours behind Greenwich Mean Time. Daylight saving time operates from the first Sunday in March to the last Sunday in October.
tiPPing
Standard restaurant tipping is 15 per cent. Most hotels and resorts add a service charge automatically.
Visas
Nationals of the US, Canada, the UK, EU countries and Commonwealth countries do not require a visa.
THE GRAND BAHAMA PORT AUTHORITY LIMITED PO Box F-42666, Freeport, Grand Bahama Island
Tel: +242 350 9087 Fax: +242 352 6184
www.investgrandbahama.com
