Mediterranean Shipping Company (MSC) may soon boost its activities in New Providence, as the new $83 million port invests heavily in equipment that allows it to accommodate larger ships. Nassau Container Port (NCP) recently welcomed the arrival of two Leibherr 320s, mobile cranes built specifically for shipping operations, at a cost of $4 million.
It is the first time the island has benefited from the technology, according to Michael Maura Jr., the CEO of APD Limited. Whereas in the past the ports used modified construction cranes, the new equipment provides a major boost to efficiency. Maura also revealed to Guardian Business that a third crane at a cost of $1.6 million has been added to the port, bringing the total bill up to nearly $6 million. "There is a learning curve for the new cranes," he explained.
"The old ones served us well, but to run 20 or 30 years, you'll need the right technology. Once the workers become more proficient at it, we'll see a 50 percent increase in productivity." What it adds up to is NCP's ability to attract more business and larger vessels from shipping companies. Maura said MSC in particular has been "very proactive" since the crane acquisitions and the ramping up of operations at the port.
The new equipment, he said, can handle up to 40 tonnes at a time. The old cranes could only handle just over half that weight. The new muscle can also reach much further, spanning 10 rows of containers compared to just six previously. Bringing in larger ships not only makes business sense for the port, but also for the shipping companies. Maura explained that many of the vessels arriving from the U.S. end up returning with mostly empty containers.
From a shipping company perspective, the optimal approach is to achieve a "vessel string" or "milk run" to achieve higher efficiency and profits. If NCP can accommodate larger ships, companies will be inclined to stop in Nassau before carrying on to multiple destinations, which ultimately alleviates costs. "What we want to do is invite and accommodate the larger vessels. We need to do a better job of that," he told Guardian Business. "There is a lot of potential." Maura pointed out that the sophisticated cranes reduce the amount of time ships have to harbor at NCP, allowing them to meet other appointments. If they are heading back to the U.S., less time at the port means they can slow down on the trip home and burn less fuel.
The APD Limited chief believes it could be another month before the port increases its efficiency by 50 percent. Executives had two trainers from Ireland come in to train the staff, and "all they now need is time behind the wheel". However, Maura and APD Limited remain conservative in their financial forecasts despite the improved efficiency and the continued rise of Baha Mar. "It is a new business so we want to watch our costs carefully. We are making substantial investments for the future, but they have to be paid today, so we are mindful of how we run the business and keep costs down." APD Limited now has more than 11,000 shareholders after its wildly successful IPO earlier this year.
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