Government officials yesterday signed a memorandum of understanding with Vancouver Airport Services (YVRAS), a Canada-based company, which will manage and redevelop Nassau International Airport, while completing its management and project agreements.
According to Minister of Transport and Aviation Glenys Hanna-Martin, as part of the transaction, YVRAS will work with the Airport Authority and Newco, a new Bahamian company, established to assume operations of the airport.
Minister Hanna-Martin explained that the Authority will initially own Newco, which will lease NIA from the Authority for 30 years. Ownership of the airport will remain vested in the Authority.
Newco will in turn contract the services of YVRAS to manage, operate and assist in the development and maintenance of NIA under a management agreement for a 10-year term.
The government will continue to be responsible for the operations of customs and immigration, air traffic control, meteorology, police and security and passenger screening.
Minister Hanna-Martin said the redevelopment and management plan will be carried out in two phases at an estimated cost of $200 million.
The first phase will include executing high priority projects such as improving the physical and sanitary conditions of the airport.
Minister Hanna-Martin said Phase I will also call for alleviating congestion associated with US pre-clearance, alleviating parking and airside congestion, managing adequate check-in spaces for additional air traffic growth, facilitating increased group travel and minimizing and streamlining passenger security checks.
According to the minister, all of the above conditions are to be completed no later than 24 months after the date that YVRAS assumes responsibilities for the management, operation, development and maintenance of NIA.
Phase II of the plan will include the upgrading of existing facilities and the construction of a new or upgraded terminal beginning “as soon as possible” and to be completed no later than 48 months.
The government, the Authority and Newco (in collaboration with YVRAS), will determine the required financing which will be based on revenue gained from a passenger facility charge (PFC).
Officials have announced that in the case of international travelers, this fee will mean an additional $15. Bahamian travelers will have to pay an additional $5.
A $5 security fee will also be implemented to fund labour and capital costs. These fees will be added to the cost of purchasing tickets.
President and CEO of YVRAS, Frank O’Neill said the signing marks a long awaited day for his company. He said the agreement will be the basis of a long-term and expanding relationship between the two parties.
“This is an important step. It is an opportunity to really bring The Bahamas to the forefront of a very intense and competitive industry of the investments and financial services sectors,” Mr. O’Neill said.
“You are attempting to attract high-value visitors and that’s great. High value visitors are very demanding. They have experienced the best. They expect the best and you must deliver the best and we will do that.
“We will deliver the best. Investors expect modern and efficient facilities to carry out their work in a productive way. This all works together to support the government’s objectives, increasing the economic benefits for The Bahamas-We hope to deliver a truly heavenly customer experience.”
The company operates 18 airports in seven countries, and is reportedly the most successful global airport operator in North America.
“I consider Vancour Airport Services and The Bahamas to be a perfect fit. We have a lot that we do in common in terms of philosophy and also some of the issues that we must face,” Mr. O’Neill said.
“For example, Nassau and Vancouver International Airport are two of the few airports around the world that have to deal with U.S. pre-clearance, which adds complexity, but also provides an opportunity to the airport business.
“Another philosophy that we share is that an airport should reflect a local sense of place. It should celebrate where you are. It should pick out things that are authentic that bring pride, passion and patriotism to Bahamians and the visitors.
“When people arrive here we want them to know that this is just not a processing factory. This is more than just a modern facility, but a Bahamian facility that has a lot to celebrate and you can use this to differentiate this airport from all your other competitors in the region. The other fit is your location.”
Mr. O’Neill said the key to succeeding at any project is the local team supported by the company’s expertise.
“We look forward that within five years the majority of the executive team will be Bahamians,” he said.
“So we have the network. We have the facilities. We have the airport experience. If we can take Bahamians and train them in the global airport business we look forward to this with great enthusiasm.”
The government, meanwhile, is encouraging Bahamian firms to become involved in the airport’s development.
Minister Hanna-Martin said interested persons will be invited to participate in any tenders for financing, capital works and other airport contracts.
She however stressed that preference in the award of contracts will only be provided to Bahamian firms if they are able to demonstrate their ability to provide the same quality and competitive terms as international parties.
She said the government is considering offering shares and financing opportunities in Newco to Bahamians.
Adding congratulatory remarks, Prime Minister Perry Christie said the signing, which took place at his Cable Beach office, marked a massive commitment.
“The significance of this step taken may not be appreciated now, but in my view this represents the absolute key to the successful development of New Providence as the best island destination in the world,” he said.
“Without this, it could not happen.”
By: Macushla N. Pinder, The Bahama Journal
