Grand Bahama Shipyard eyes up to $30 million in contracts
The Grand Bahama Shipyard is close to securing a "nice contract" worth up to $30 million coming off its presence at the largest international shipping exhibition in the world, The Nassau Guardian reports.
Posidonia 2012, held in Athens, Greece, had a large Bahamian delegation this year, including representation from the shipyard, the Bahamas Maritime Association and the Ministry of Tourism.
A representative from the shipyard returned to Grand Bahama reporting keen interest from at least one Greek shipping company to ink a lucrative maintenance contract.
"The Greeks, as we all know, are huge when it comes to the tanker market. One of the shipping company's I've done work with in the past approached us," said Reuben Byrd, the shipyard’s senior vice president of operations. "So we're looking at trying to get some type of
agreement with them."
The new deal would involve repair work for three to five ships each year. Contracts are generally worth anywhere between $1 million and $6 million, depending on the work needed.
"We have fleet agreements with different container vessels and tankers. This would be additional. We know we have work constantly," he said.
Executives at the shipyard continue to report robust business from cruise ships and commercial vessels. While annual revenue has nearly doubled since 2008, he admitted that numbers have been more modest in 2012 compared to the previous year.
"What happens is, from January to April, we have a lot of cruise ships. And September to December, we have a lot of cruise ships. In between, we fill up with commercial work, and even then we have gaps in business," he explained. We keep the pressure on the commercial world, and that's where our focus lies."
That said, demand is high enough that expansion to the North Beach facility is still a go, with work to begin next month. The $4 million update includes a new facility, two 50-ton cranes and greater storage capacity.
A Bahamian contractor has been hired for the work, and Byrd estimates up to 50 Bahamians will find work over the coming months.
The shipyard currently employs 800 people, 300 of which are Bahamian.
In April, Byrd revealed to Guardian Business that the site intends to pursue maintenance contracts in the oil rig business.
The move could be incredibly lucrative for the Grand Bahama facility, regardless of whether or not oil exploration occurs in The Bahamas. Byrd said "we are still pushing for that", and "it's not out of our grasp".
He said the rigs at the shipyard would not necessarily be bound for The Bahamas, but also other drilling hot spots, such as the Gulf of Mexico. Grand Bahama is less than 250 kilometers from the U.S., making the facility a strong candidate for the job.
