[xml][/xml]
The Bahamas Weekly Facebook The Bahamas Weekly Twitter
News : New Providence Last Updated: Feb 6, 2017 - 2:32:04 PM


Arawak Port Development Clarification regarding Shares
By Eileen Fielder
May 3, 2012 - 1:49:17 PM

Email this article
 Mobile friendly page

logo_4.jpg

Notice

Nassau, Bahamas (April 30th 2012)

To All Arawak Port Development Shareholders And The Investing Public:

"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              

History 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.

Nevertheless, 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

              Successive 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 thoroughfare.

              With 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.

By 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 identified the relocation of commercial shipping to the Clifton Pier area as a critical prerequisite to the restoration of the city centre.

                In 2006 the Christie-led Government under the leadership of Dr. Marcus Bethel, Minister of the Environment, called a meeting of shipping stakeholders, 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 Governm ent 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.

                Subsequently 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 engage ECORYS, 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 would have a development cost of approximately $250 million.

                In 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 pr oject and the ownership of APD Limited and its subsidiaries Nassau Container Port and Gladstone Freight Terminal.

In 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

On 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, including   its founding shareholders and the Government of The Bahamas own common shares, 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, 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 the   founding   shareholders for their shares.   All common 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.

I 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.

Our 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.

The 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.

In 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. 



Bookmark and Share




© Copyright 2012 by thebahamasweekly.com

Top of Page

Receive our Top Stories



Preview | Powered by CommandBlast

New Providence
Latest Headlines
LPIA reveals new summer 2021 operations plan, shares Important travel tips for passengers
Scotiabank upgrading ABM network
New Caves Corporate Center now fully leased by NAI Bahamas Realty Commercia
KFC Nassau Junkanoo Buckets competition awards $40,000 in prize money
New facial biometric technology will make CBP preclearance at LPIA more efficient and secure