A new assessment report suggests that improved customs procedures could boost economic contributions from break bulk shipping operations within The Bahamas.
The report, from global advisory firm Oxford Economics in conjunction with the Organization for Responsible Governance (ORG), examined the economic impact of improving break bulk shipping operations, which is the process of offloading containers, moving contents to warehouses, and then reshipping on smaller vessels or to specific ports depending upon the cargo involved.
The study contended that Freeport, Grand Bahama would be an ideal location to maximize port activities.
"The natural features of Freeport's harbor, proximity to the United States and unique tax advantages in place work in Freeport's favor," the study states.
On the benefits side, the report points out that the major gain from bulk break shipping would be indirect, but its expansion would also increase taxes directly. This expansion in economic gain would be associated with an increase in the volume of containers passing through Freeport, according to the report.
"In addition, break bulk is slightly more labor intensive than other port operations and so the tax take would increase as a result of an increase in the number of longshoremen and warehouse operators," the report states.
However, interviewees that participated in the study were said to have "repeatedly raised concerns about the operations of the customs department".
"In fact, more than one port interviewee argued that improved customs operations are an important precondition to any new investment in break bulk operations. One specific customs reform often mentioned is the publication of updated and streamlined tariff regulations, so that it is clear which duties will be applied to specific, well-defined categories of goods," the report states.
In the report's policy implications section, its authors contend: "A commitment to modernizing customs procedures would not only improve the public's confidence in the integrity of customs operations, it would also be an important signal that the government intends to explore smart policy solutions that support and leverage port development."

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