Chinese developer spends millions on local materials

Tue, Feb 14th 2012, 11:09 AM

Bahamian workers and businesses continue to benefit from the rise of Baha Mar, with at least 200 still on-site working hand-in-hand with Chinese counterparts.
China Construction America, the firm spearheading construction of the $2.6 billion resort, has spent millions purchasing materials from in and around the country to help bring the project to fruition.
"We actually procured quite a lot of materials locally," said Tiger Wu, vice president of China Construction America. "Much of the cement came from here. They have a quarry in Grand Bahama we used for other materials. I think the total value will be in the millions of dollars."
That said, Wu pointed out that limited local supplies and logistics have proven to be a major challenge thus far.
The company has also acquired a great deal of equipment and material from both the U.S. and China, which will continue to trickle in until the resort is completed in December 2014.
Robert Sands, senior vice president of administrative and external affairs at Baha Mar, estimated there are close to 300 Chinese working full-time on the actual construction site, and 200 Bahamians.
"Ground works, hauling, support work, installation ... Bahamians have remained a fixture in terms of labor," Sands told Guardian Business.
The Baha Mar executive also noted there are a variety of indirect jobs associated with the resort.
"The trucking that is constantly coming, which is supported by shipping and logistics, and the clearing that takes place. All of this adds up to many local companies supporting us," he added.
The heavy importation of goods is well timed.
APD Limited, the company responsible for the $82 million Nassau Container Port on Arawak Cay, seeks to centralize all imports and exports to New Providence within the coming months.
More than 12,000 everyday Bahamians became shareholders in the company when APD Limited put forward its initial public offering last month.
However, Sands did not anticipate a major boom for shareholders despite the large importation of goods, principally because Baha Mar benefits from the Hotel Encouragement Act.
"There are concessions on duties and building supplies," he explained. "But they will have to be moved and transported. The new port will mean tremendous convenience as well."
Sands revealed that Baha Mar is hoping to establish its own bonded customs area for the clearance of goods so they can be brought directly to the site.
Wu told Guardian Business that the project will still contribute to revenue at the port.
"For example, when bringing in things from the U.S., we are still paying the port for handling fees to get it on the truck. So there are some expenses for us," he said.
The China Construction America chief, who has worked in Canada, the U.S. and Africa, noted that he is accustomed to working overseas and managing different cultures.
He expressed confidence that Bahamians and the Chinese will rise to the occasion, work cooperatively and learn from each other as Baha Mar becomes a reality.
"We all came here for the same reason," he added. "Everyone has been taught that way and it is going to be a team effort to get it all done. Everyone has that kind of mind-set. The only way we can succeed is to work together."

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