Final preparations are now underway to bring a 1.1 million-square-foot Chinese distribution center to the shores of Freeport, representing a total investment of more than $200 million.
AsiaMart, a Bahamian company, is finalizing an agreement with BCEGI-USA Construction Corporation, the American subsidiary of Beijing Construction Engineering Group, to construct a massive facility on 100 acres of land in the Sea Air Business Center on Grand Bahama. The center will include 1,600 individual stalls, providing merchants from China and around the world with an international platform to promote, sell and distribute mass quantities of goods to corporations throughout North America, Latin America and the Caribbean.
The Bahamian business model has been fashioned from Yiwu International Trade City in China, one of the largest wholesale centers in the world. BCEGI-USA will serve as the general contractor, while The Export-Import Bank of China is expected to provide financing for the $200 million project. "We have eight to 10 Chinese businessmen coming in late June," said Kenneth Hutton, the director of AsiaMart. "They are real estate and mall developers. We will sell up to 50 percent of the stalls to Chinese businesses. They will also come in and invest in the market itself." Ian Fair, the chairman of the Grand Bahama Port Authority, confirmed that the AsiaMart's business license is now being processed.
The GBPA chief told Guardian Business that a Chinese distribution center is a high priority and "an idea with an awful lot of potential". Meetings have already occurred between Fair and AsiaMart executives to bring the high-profile project to fruition. "We are looking to begin construction in the first quarter of next year, with completion sometime in 2015," Hutton added. "What is great about the project is it's not another mega resort.
The focus is on trade and business, and the concept fits in with BCEGI-USA's hope to promote small-to-medium-sized businesses in China by displaying and selling their products throughout the region." That said, Hutton said the 1,600 display stalls will not be dominated by Chinese businesses, but rather offer an eclectic mix of commerce from around the world, including Brazil, Mexico, Canada and the U.S. AsiaMart is billed as a seven-day a week operation, open from 8 a.m. to 9 p.m., and as such it will demand a substantial labor pool. While the front of the house would serve as a display center for businesses, a fully stocked warehouse in the back holds the products set for distribution.
Developers are also planning a 100,000 square-foot convention center for monthly or bi-weekly trade shows, featuring everything from electronics, hardware and seasonal items. "The opportunities for off-shoot businesses are tremendous," Hutton noted. With 100 acres to play with, a hotel designed to meet both North American and Asian tastes is also being considered. Restaurants, day care and other services would need to be built around the commercial city to accommodate the merchants and their families. "When you're at a trade show, you want the restaurant and hotel in close proximity," he added. What it adds up to, the AsiaMart executive said, is a regional powerhouse for commerce and a major driver for the Grand Bahama economy.
According to the latest numbers from the Department of Statistics, the unemployment rate on Grand Bahama is 21 percent. AsiaMart executives estimate at least 3,000 jobs will be created in the center. Most business opportunities, including food and beverage and retail operations, would be taken up by Bahamians. The 1,600 stalls at AsiaMart will be 500-square-feet in size. Warehouse space is offered in spaces of 440 square feet. UPS, through their local agent Bahamas Couriers Ltd., has signed on to handle logistics and shipping in the warehouse, according to AsiaMart executives.
Click here to read more at The Nassau Guardian
