THE TRANSHIPMENT HUB OF THE AMERICAS

Freeport Container Port

The Bahamas based Freeport Container Port is well placed to take advantage of the anticipated increase in shipping this expansion would bring, due to its state-of-the-art facilities and already existing capacity to accommodate the post-Panamax container ships that its rivals cannot. Knowles Ntieado of Freeport Container Port spoke to Djamil Benmehidi to tell him more about the company’s story and plans for expansion.

Upon hearing the word Caribbean, the first thing that springs to mind for many is the word vacation. The reputation of the Bahamas as a tropical, sun-kissed tourist hotspot is well documented, but less so is its status as a global hub for the transhipment of containerised cargo.

The island of Grand Bahama - one of the largest of the 3,000 islands that the nation is comprised of – is home to the Freeport Container Port, a US$585mn port terminal that offers an array of world-class facilities, including a modern container port, full-service cruise centre, international airport and sea/air business centre.

Under the majority ownership and management of Hutchison Port Holdings - a global Hong Kong based industry titan with interests in over 26 countries - Freeport Container Port is already recognised as one of the world’s major transhipment hubs, thanks to its ideal strategic location that positions it at the central intersection of major international trade routes between the Americas, Europe and the Far East, as well as its use of leading-edge technology, including real-time communications and port-management systems, and a dedicated workforce.

“We are perfectly situated at a crossroads between major shipping lanes to every corner of the world. We’re around 60 miles away from Florida and the port in Miami, and we get a lot of container traffic from the US East Coast and Gulf Coast which are currently our main markets.”

Following various phases of expansion and the hundreds of millions of dollars invested into the port since its birth in 1997, Freeport Container Port is already considered one of

In spite of the sluggish performance of the global economy, demand for consumer goods continues to rise across the world. In direct correlation to this, ever more and ever bigger container ships will be required to transport these goods to ever bigger and deeper ports. Within the maritime trade and shipping industry, there has been cautious optimism as trade levels begin to reach pre-2008 levels once again. Closer to the Americas, this cautious optimism has been replaced by wide-eyed excitement following news that a long-planned expansion of the Panama Canal has been rubber stamped.

Endeavour Magazine • April 2013 •

Freeport Container Port

the elite because of its unique status as being the only port in the region that can accommodate the largest container vessels. Ships of post-Panamax size and the even larger mega ships which can dwarf an aircraft carrier in size - such as the MSC Tomoko - can dock at port. However the planned expansion of the Panama Canal – which will not only double the canals shipping capacity, but also allow larger post-Panamax ships to transit – has given Freeport a once in a lifetime opportunity to capitalise on its position as the only port in the region that could accommodate this flow of larger ships, and as a result elevate the port into becoming one of the top five largest in the world.

“The recent news confirming the expansion the Panama Canal is a game changer for this port; it is as if the stars have aligned. We have the capabilities and capacity to take on the increased traffic and the post-Panamax shipping here at Freeport. This puts us in a unique position as other ports in the region would have to spend huge sums of money and spend great lengths of time in doing the civil work, dredging and general expansion work to get to where we are today. There were forethoughts many years ago when this port was being built that this day would come, hence why Freeport was built with the capabilities and expansion potential it has. It is feasible that Freeport will become the number one transhipment terminal in the Western Hemisphere.”

With its 15.5m depth making it one of the deepest in the world, and over a kilometre of berth space, Freeport Container Port is now one of the largest man-made harbours in the world. To facilitate the ports transhipment activities,

the site also offers an extensive 57 hectare area of land for stacking of containers and other bulk goods. In addition to this extensive quay length and harbour depth, Freeport also has ten super post-Panamax quayside gantry cranes and two gottwald mobile harbour cranes which are capable of serving the largest of vessels. In terms of total capacity, these facilities give Freeport the potential to manage up to 1.5mn TEU’s per year, and yet this current capacity is very much the tip of the iceberg because of Freeport’s potential for phased expansion according to Knowles.

“We are serious in our aim to become recognised as one of the world’s top five container terminals. Our capacity today is sufficient for the volume of traffic that Freeport currently gets, and with the global economy still being relatively flat, we don’t have any plans for drastic expansion projects as of yet. But there is certainly a masterplan for phased expansion as business increases and should it be necessary, Freeport for example could increase its number of berths from three to twelve, from ten gantry cranes to forty-five, from a 1.5mn TEU’s per annum capacity to 6mn TEU’s. There is a further 23 hectares of land that is readily available for use. The potential is enormous.”

To accompany its world-class facilities and assets, Freeport has a well-trained workforce of over 5,000 staff to provide a world-class service for its clients.

“Having a well-trained and efficient workforce is important for the future success of the terminal. Our port operations and activities take up between 60-70% of our staff base and we need to work quickly and efficiently for our

Freeport Container Port

clients. There is also a strong safety culture here at Freeport as we have a responsibility to look out for our employees. We are OHSAS certified and there are regular audits on our staff safety measures. We are a very customer focused business at Freeport, and to provide good service you need the staff to deliver it.”

Until the Panama Canal expansion venture is completed, Freeport will be placing its main focus on steady, organic growth as the company seeks to consolidate its business. Over the course of 2013, the company will concentrate on seeking potential new clients from larger shipping lines who as well as being enticed by the company and its capabilities, will also look to take advantage of a range of investor advantages and incentives, which include having to pay no taxes on profits, capital gains and imported or exported goods.

“Our main customer is the shipping line MSC but we have the capacity here to take on more business. We’re very actively seeking new customers and are trying to bring in one or two more big clients to work with.”

It is also possible that Freeport will begin long awaited work on the Phase V Development of Freeport according to Knowles, who said:

“This phase of expansion which would increase our capacity from 1.5mn TEU’s to 1.7mn TEU’s is something we are looking at this year. Of course capital investment is only happening when it is really needed due to the tepid global economy, but should sustained volume increase this year as expected, development will begin.”

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© 2012 Terex Corporation. Terex is a registered trademark in the U.S. and many other countries.

Two global leaders in the port equipment industry have come together as one to serve you better from a single source. Gottwald is now Terex® Gottwald, part of Terex Port Solutions.

That means greater choice and more solutions for you in all kinds of cargo handling. We deliver the results you’re looking for.

Broadest range for manual, semi-automated and automated cargo handling in ports and terminals around the world

State-of-the-art software systems Expert planning & consulting Global support network

ADDING VALUEEXPECT MORE WITH THE COMBINED PORT SOLUTIONS OF TEREX AND GOTTWALD

www.terexportsolutions.com

© 2012 Terex Corporation. Terex is a registered trademark in the U.S. and many other countries.

Two global leaders in the port equipment industry have come together as one to serve you better from a single source. Gottwald is now Terex® Gottwald, part of Terex Port Solutions.

That means greater choice and more solutions for you in all kinds of cargo handling. We deliver the results you’re looking for.

Broadest range for manual, semi-automated and automated cargo handling in ports and terminals around the world

State-of-the-art software systems Expert planning & consulting Global support network

ADDING VALUEEXPECT MORE WITH THE COMBINED PORT SOLUTIONS OF TEREX AND GOTTWALD

www.terexportsolutions.com

© 2013 Terex Corporation. Terex is a registered trademark in the U.S. and many other countries.

Freeport Container Portfreeportcontainerport.com+1 242 350 8000

Written by Djamil Benmehidi

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