Nassau’s main commercial shipping port saw a 14.3 percent increase in net income for its 2024 fiscal year, surpassing forecasts, with vehicle volumes among the key drivers of this positive performance.

Dion Bethell, President and Chief Financial Officer of the BISX-listed Arawak Port Development Company (APD), the   Nassau Container Port operator, commented on its financial performance for its fiscal year ending in June and noted that revenues were up by 5.9 percent, EBITDA increased by 9.1 percent, and net income rose by 14.3 percent.

Bethell attributed the strong revenue performance to increased vehicle volumes, which led to landing fees and security fees exceeding the previous year by $600,000 (4 percent) and $125,000 (4.4 percent), respectively. Additionally, terminal handling income increased 9.4 percent year over year, and other income rose 250 percent, or $173,000, due to a higher valuation of BIF investments.

In year-over-year comparisons, TEU container throughput volumes were 70,735, a 0.3 percent increase from the prior year; vehicle volumes were 19,750, a 26 percent increase from the previous year; and bulk volumes were 340,897, a 9 percent decrease from the prior year.

When discussing the drop in storage fees, Bethell explained: “The previous year’s storage fee income was unusually high and was not expected to recur. Carriers managed their container inventory more effectively this year, leading to a reduction in storage fees. Although storage revenue was positive to budget by $354,000 this year, it can fluctuate from year to year.”

Bethell also highlighted the company’s ongoing focus on cost management. “We’ve embraced technology and streamlined processes to improve efficiency and control project costs. We’ve implemented energy-saving measures to manage electricity costs and fostered a culture of cost consciousness across the company,” he noted.

He reiterated concerns regarding necessary repairs to the harbor’s breakwaters. “It remains a significant and urgent issue due to the ongoing disruptions to port operations caused by the breakwater’s deterioration. There have been no further updates since the October 2023 meeting where the government shared their findings and proposed plans,” said Bethell.

According to Bethell, while the worst of the post-COVID supply chain disruptions seems to have passed, the economy still faces challenges such as climate issues, energy price pressures, and global conflicts.