$8 million dollar project signed; a
first for sea-air business centre site
By LEDEDRA MARCHE
Senior FN Reporter
lededra@nasguard.com
Associated Grocers of Florida and the Grand Bahama Port Authority Limited (GBPA) signed an $8 million deal yesterday for an international wholesale distribution warehouse in Freeport.
The 100,000 square foot warehouse, International Distributors of Grand Bahama Limited, will be the first deal for the sea-air business centre site.
Associated Grocers will account for the first 20 acres of land on the 741-acre site between the airport, container port and harbour.
The site is situated on the corner of the Fishing Hole Road and Queens Highway, adjacent to the FOCOL gas station.
The project, which was on the drawing board for more than a year and that encountered some delays, is expected to generate employment for 50 to 100 Grand Bahamians.
GBPA executives welcomed the principals of Associated Grocers to the island saying the $8 million is the initial investment, as the very nature of the business could call for expansion.
Calvin Miller, president and chief executive officer of Associated Grocers of Florida, was here on Monday to seal the deal, noting that logistically, the island's proximity to Florida and its deep water harbour is ideal.
He called the signing a new horizon for the company.
Associated Grocers presently services 42 countries and most of the Caribbean islands out of Florida. Construction for the new international headquarters is expected to begin within 180 days.
"It will be food products, general merchandise, health and beauty cares – almost any item you can think of. It could be glasses out of China eventually, there is just all kinds of opportunities," said Miller.
He explained that those same products are carried in the United States, but when they are purchased for an export warehouse, brands like Kraft, General Mills and Kellogg's are actually five to 30 per cent cheaper to bring it from the U.S. into an overseas port than it is to buy in the U.S.
"We'll be bringing containers in from where ever, unloading them here at the warehouse, breaking them down by pallet, reshipping and sending them out to other customers," he said.
A major food show is planned here in February 2007 which is expected to attract some of the largest companies in the world.
Chief Executive Officer of the Grand Bahama Air and Sea Port Chris Gray insists that with the recent criticisms regarding the island's sluggish economy, the timing of the project was not orchestrated.
The road he admits, has been long, difficult and torturous at times.
"This is a new entity, the sea-air business centre, and because it is the first deal that we've struck on the site, we have had to formulate a contract that is acceptable to both parties," Gray said.
He said it has taken some time to achieve that, which is the reason why it has taken longer than normal.
Now, with a template in place, Gray says they are hopeful that when the next customer comes along, the deal will be concluded in a more timely manner.
He noted that another of Associate Grocers' decision to come here was helped by the existence of a world-class container port and a first-class harbour and airport.
"And as the sea-air business centre suggests, the name suggests, it is an ideal location, an ideal facility and will be used for logistic warehousing and distribution by sea and by air," he said.
Gray explained it is the free zone that Freeport enjoys and the business model the Associated Grocers or International Distributors of Grand Bahama business model is what Freeport was effectively designed for 30 years ago.
In fact, he revealed that there are several prospective customers knocking on the GBPA's door, but none are in competition with Associated Grocers.
GBPA Chief Executive Officer Sir Albert Miller says Associated Grocers have demonstrated patience and this project could not have come at a better time.
"We are on a roll," he declared, referring to the Port Authority's announcement last week of a $15 million beer brewery along with yesterday's international warehouse contract signing
"I'm hoping that within the next 30 days or so we might have you in this room again," he said.
"We would like to create the excitement that you want to see in Freeport and we want to create the climate for others to come and do business."
Sir Albert stated that Associated Grocers' presence here will cause other investors to come and go a long way in reviving the economy of Freeport and creating jobs for Grand Bahamians.
He also revealed that the GBPA is working on a few more projects and if they come, Grand Bahama will be in good shape.
"This augers well for Grand Bahama," he stressed. "There have been much said recently in the press about our depressed and soft economy."
Sir Albert pointed out that this latest project could not be possible without the government's cooperation as Prime Minister Perry Christie saw it as a positive move for The Bahamas.
He noted that the warehouse will be a model for Grand Bahama and the GBPA and the government will hold Miller and his associates to their promise of a quality operation, first-class product and efficient movement.
Port Authority Chairman Hannes Babak added that the signing signalled the trust which International Distri-butors of Grand Bahama Limited has in Grand Bahama, adding that the project is a very important start for the GBPA.
SIGNING MOMENT — Associated Grocers of Florida and the Grand Bahama Port Authority, Limited sealed the deal for an $8 million international wholesale distribution warehouse in Freeport at a signing ceremony yesterday. From left are Roy Deffler, president of international Distributors of Grand Bahama Limited; Terrence Gape, legal counsel; Calvin Miller, president and chief executive officer of Associated Grocers of Florida; Hannes Babak, GBPA chairman; Sir Albert Miller, GBPA chief executive officer; Chris Gray, chief executive officer of the Grand Bahama Air and Sea Port; and Brenford Christie, legal counsel.(Staff photo by Tamara Delaney)
SEALING THE DEAL — Terrence Gape, legal counsel, left, shows Calvin Miller, president and chief executive officer of Associated Grocers of Florida, where to sign yesterday to close the deal on an $8 million contract with the Grand Bahama Port Authority.(Staff photo by BRADLEY RUTHERFORD)
