To All Arawak Port Development Shareholders And The
"APD Limited (the "Company") wishes to advise
its shareholders and the public that all shareholders in the Company, including its founding
shareholders and the Government of The Bahamas, have the same right to
dividends on each share in the Company that they own and will receive the same
returns per share held in the Company. The shares that were recently issued by
the company by way of the Initial Public Offering which was approved by the
Securities Commission of the Bahamas and were sold at a price of $10.00 per
share, which is the same price paid by the Government of The Bahamas and the founding
shareholders for their shares. All shares held by the Government of The
Bahamas, the founding shareholders and the 11,065 new Bahamian shareholders
will earn the same return per share on every dollar invested."
The shares are currently listed on The Bahamas International
Securities Exchange (BISX), and are traded under the symbol APD.
Statement by Mr Michael Maura Jr, Chief Executive Officer
APD Limited Regarding Nassau Container Port
Origins and Ownership
Nassau Container Port: A Bahamian Triumph
will record the development of Nassau Container Port (NCP) as one of
the finest examples of Bahamians’ putting the needs of the nation ahead
of sectional interests.
the development of large projects in The Bahamas and elsewhere rightly
excites wide public interest, but also often give rise to misconceptions
and misinformation. Consequently, Arawak Port Development deems it
beneficial to provide the public with an accurate account of the
historic development of NCP, which we believe to be a national triumph
of which all Bahamians can be proud.
History of the Relocation of Commercial Shipping from Bay Street to Arawak Cay
administrations of the Government of The Bahamas, under both of the
major political parties, as well as merchants and members of the general
public have viewed with concern the increasing decay of Downtown
Nassau. It was widely agreed that the primary source of the problem was
the operation of the four commercial shipping docks along this historic
shipping operations occupying about 20 acres of prime property on Bay
Street and with 80 percent of the commercial shipping to New Providence
historically unloading in the area, downtown became increasingly
congested and dirty, discouraging investment in new business development
and reducing shopping, entertainment and other opportunities for
residents and visitors alike.
the year 2000, a consensus had developed at many levels that corrective
action was required to tackle the problem and pave the way for the
revitalization of Downtown Nassau.In
2004 with an objective to do exactly that, the Christie Government
engaged EDAW to prepare a master plan for the City of Nassau, and in
2005 the EDAW plan was presented to the Government. The EDAW plan
relocation of commercial shipping to the Clifton Pier area as a
critical prerequisite to the restoration of the city centre.
2006 the Christie-led Government under the leadership of Dr. Marcus
Bethel, Minister of the Environment, called a meeting of shippingstakeholders,
and advised that the shipping terminals on Bay Street would be coming
to an end. This meeting was evidence of the Christie Administration’s
early recognition that, for any Government to achieve an objective of relocating
an entire industry, those affected stakeholders must embrace the
change. During the gathering the Government invited the private sector
shipping stakeholders to partner and invest in the creation and
development of a new commercial port at Clifton.
in 2006, the Southwest Port Task Force was created with equal
representation of Government and private sector shipping interests. Mr.
Paul Major and I were asked to serve as Co- Chairs of the body. The
Government and the private sector shipping stakeholders provided the
funding to engageECORYS, a Port design firm from the Netherlands to design the new port at Clifton.
The very next year, 2007, ECORYS published the SW Port plan, which
indicated that creating a new port on the rocky shoreline of Clifton
wouldhave a development cost of approximately $250 million.
2007 following a general election the Ingraham Government reviewed the
ECORYS port plan and determined that the development cost of $250
million would severely impact the cost of living in New Providence and
those Family Islands dependent on Nassau for supplies. A $250 million
dollar project would have resulted in port fees over 50% higher than
what they are today.
Financing and Ownership of the Port
It is important at this point to present the facts on the sources of financing for the project and the ownership of APD Limited and its subsidiaries Nassau Container Port and Gladstone Freight Terminal.
July 2010 the Government of the Bahamas and the Shipping stakeholders
each invested $20 million for a total of $40 million equating to 50%
equity for each. The remaining $43 million of the $83 million was
provided by Royal Bank of Canada.
Historic Public Ownership
December 16, 2011 APD Limited launched its $10 million IPO, and
byJanuary 31, 2012 the Company had an additional 11,065 shareholders,
who include Bahamians of all social strata.It is important to note that all shareholders in the Company, includingits founding shareholders and the Government of The Bahamas own common shares, have the same right to dividends oneach share in the Company that they own and will receive the same returns per share held in the Company.
The shares that were recently issued by the company by way of the
Initial Public Offering which was approved by the Securities Commission
of the Bahamas, were common shares and sold at a price of $10.00 per
share, which is the same price paid by the Government of The Bahamas and
thefoundingshareholders for their shares. All common shares held by the Government of The Bahamas, thefounding shareholders and the 11,065 newBahamian shareholders will earn the same return per share on every dollar invested."
The shares are currently listed on The Bahamas International Securities Exchange (BISX), and are traded under the symbol APD.
am proud to say that our IPO established a national record in The
Bahamas. On behalf of the Board of Directors and our employees, I would
also like, once again, to thank each of the 11,065 investors for their
confidence and trust.
community is already deriving benefit from NCP’s operations. The Port
currently employs 101 Bahamians ranging in age from 19 to 60, who have
been given the opportunity to learn new and valuable skills in the
shipping and port management industry. This number includes both men and
women, many in unique and enviable roles.
new Port Tariff reflects the realities of funding the operation of a
modern “deep water” port with all the time saving amenities,
technologies, such as an electronic terminal management system, mobile
harbour cranes and resulting efficiencies. Furthermore, the NCP Tariff
is highly competitive with major ports around the region. All of these
factors will result in savings for all Port users, which should
eventually benefit the end consumer.
summary, it must be restated that APD Limited and the Port Company’s
origins go back to the meeting with Dr Marcus Bethel, Minister for the
Environment under a Progressive Liberal Party Administration. What has
developed has been fed by the same national objectives that motivated
this initial meeting and subsequent feasibility studies. It is just that
this very necessary step forward has been delivered by a different
administration of the Bahamas Government—same theme, same benefits
ultimately to all Bahamians.