VZCZCXRO8501
RR RUEHGR
DE RUEHBH #0504/01 2331717
ZNR UUUUU ZZH
R 211717Z AUG 09
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHD 6606
INFO RUCPDOC/USDOC WASHDC
RUCNCOM/EC CARCOM COLLECTIVE

UNCLAS SECTION 01 OF 02 NSSAU 000504 
 
STATE FOR WHA/CAR AND EB 
SANTO DOMINGO FOR USFCS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP ETRD ECON BF
SUBJECT:  CONTAINER PORT RELOCATION SPARKS ANGRY DEBATE 
 
¶1. (U) SUMMARY:  In a little publicized decision in April, the GCOB 
signed an agreement to relocate Nassau's busy down town container 
port to Arawak Cay, a site 6 miles to the west. The decision 
reignited angry debate beginning in July when plans moved forward to 
begin dredging the harbor. Opposition Senator Jerome Fitzgerald 
spearheaded an opposition campaign to overturn the decision. Despite 
the relocation controversy the harbor dredging began on August 17. 
The dredging is expected to deepen and widen the port of Nassau to 
accommodate mega cruise ships scheduled to begin calling on Nassau 
in December. END SUMMARY. 
 
-------------------------- 
NEW PORT EXPECTED TO BOOST 
AILING ECONOMY 
-------------------------- 
 
¶2. (U) Prime Minister (PM) Hubert Ingraham signed an agreement on 
April 2 with Dutch company Boskalis to dredge Nassau Harbor and 
extend Arawak Cay 1,000 feet to accommodate the new container port 
development project.  The agreement outlined the initial steps in 
the overall plan to revitalize down town Nassau.  To facilitate the 
port move the government mediated the creation of the Arawak Cay 
Port Development Company (ACPDC), a coalition of shipping interests, 
which will fund the $50-$60 million project. The ACPDC expects to 
complete the container port development by the end of this year. 
 
¶3. (U) Upon completion of the harbor dredging, The Bahamas will be 
able to berth the new Gensis class cruise ships scheduled to arrive 
Nassau in December.  Because these cruise ships can accommodate 
between 5,400 to 6,400 passengers, it is hoped they will provide a 
much needed boost to the struggling tourist industry. 
 
¶4.  (U) Arawak Cay (formerly Kelly Island) is a man-made island. It 
was created in 1966 as a "cultural site" but has since become an 
acknowledged eyesore.  Its most prominent feature was a dilapidated 
Customs and Immigration building now used as a warehouse.  Arawak 
Cay lies between the downtown strip and Cable Beach resort area. 
Saunders Beach, often referred to as "the people's beach," lies just 
a few hundred yards to the west of the proposed new container port 
at the cay.  Saunders is one of the few beaches on New Providence 
that is publically accessible to local Bahamians. 
 
-------------------------------- 
PLP CHARGES FNM WITH CORRUPTION 
AND ENVIRONMENTAL DEGRADATION 
-------------------------------- 
 
¶5. (U) Members of the opposition party and their supporters have 
strongly contested the Arawak Cay port project.  PLP Senator Jerome 
Fitzgerald and members of the "Save Saunders Beach" campaign have 
emerged as the leading opponent in the public debate.  The PLP 
commissioned U.S. design firm EDAW to conduct a feasibility study on 
the redevelopment of downtown Nassau. The study rated the Arawak Cay 
site as the worst choice for the new container port.  Fitzgerald 
maintains that the move will be environmentally hazardous, increase 
traffic congestion, and create an eyesore for incoming cruise 
passengers.  His feelings were endorsed by former FNM MP, Tennyson 
Wells, who believes the government's decision was influenced by 
"special interest groups."  He also accused the government of 
lacking transparency in the decision making process. 
 
¶6. (U) The government organized a town meeting on August 6 to 
respond to calls for more information on the project.  Minister of 
the Environment, Earl Deveaux, discussed the environmental impact, 
socio-economic factors and other positive aspects of the Arawak Cay 
site.  He noted that the Clifton site, an alternative location, was 
dismissed over environmental concerns and cost.  The meeting was 
forced to adjourn prematurely due to constant rowdy disruptions by 
the project's detractors.  Senator Fitzgerald criticized 
contradictory statements by the Minister of Health and the Minister 
of Environment regarding the use of Saunders Beach during the 
dredging. Concerns were raised regarding general public access to 
the existing restaurants at Arawak Cay.  However, the media has 
reported that the Arawak Cay Vendors Association supports the 
project. 
 
¶7. (U) Despite government environmental studies indicating there 
would be no negative environmental effects to Saunders Beach, the 
public suspect that the extension and new container port will affect 
the water quality.  These concerns have proved to be well founded as 
a major dredging mistake occurred on August 18 resulting in a white 
plume of turbid water thousands of feet long outside of the 
construction area. Additionally, there are further plans to build a 
bridge from the new container port on Arawak Cay to the mainland 
over Saunders Beach to route the trucks moving goods from the 
container port. 
 
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COMMENT 
 
 
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