by Christopher Lowe
Here is a current example of the as yet unfulfilled potential Freeport has.
Argentinian beef is currently shipped from Argentina to the Freeport Container port, then cross loaded onto a vessel to N.Y.
The trailers are then distributed throughout the eastern seaboard of the U.S. including Florida, where we then buy and ship the beef into the Bahamas for wholesale and retail distribution.
What is wrong with this picture?
Freeport, from a logical perspective has the potential to become the "supply warehouse" for the whole country, insofar as the international shipping routes include Freeport as a stop.
Why? Because Hutchinson Whampoa in effect leases/controls the exit /entry ports of the Panama canal as well as owning and operating the container port in Freeport. Over one million trailers a year in and out.
And yet an insignificant amount stops here. In fact the facility is not at all set up for local procurement.
Imagine if the Bahamas could for instance pull some of these beef trailers as needed to supply national demand through existing supply outlets.
Anyone know the drop in price that we would, or should see in beef prices? (20 % min). Now multiply that by almost all the food stuffs and commodity items that do currently travel through Freeport, but destined for other markets, mainly U.S.
Why go to China when China is here and here with commodities that already have the quality control assured by a market much larger than our own?
If our government had our best interests at heart, they would facilitate the potential of this made to order situation wouldn't you think?
Well an American Co-op, Associated Grocers are doing just that. By locating a cross docking facility in Freeport, the Co-op will not pay U.S. import tarrifs on goods imported to the U.S. and re-exported to the carribean and South America, and those markets should see a 20-30% drop incost of goods due to more direct shipping routes and unessesary tarrifs.
But initially at least we the people of the commonwealth of the Bahamas will not be able to source from this site in Freeport, even though Bahamian companies currently source from Assosiated Grocers out of their Miami distribution site.
Now I do not fault the U.S. company at all. They are here to realize a benefit for their company and their international customers.
So it is a Bahamian government stipulation that goods for Bahamian markets cannot be sourced from the Freeport location.
At least initially we cannot take advantage of an advantage sitting in our own back yard.
Maybe this drives home the point that if we rely on politicians to facilitate business, we may end up with none.
