Interview with James Ince, Managing Director – IBH

Mr James Ince, thank you for allowing the Barnacle the opportunity to be a part of this amazing project. What is IBH? Who is IBH?

IBH is just a holding company which seeks to provide backup services to the hotel industry – the hotel and tourism sector – as well as the construction sector.

What do you mean by “backup services’’?

We don’t want to see hotels take valuable land space, which could be used for hotel rooms and increasing visitors’ arrivals, and use that space for storing old beach chairs, for example. 

So, you offer the offsite storage facility for the existing hotel that would choose to use your services. If they chose to use your services.

We would make it available to them, so that they can then use their storeroom and build hotel rooms, if it’s possible.

This is the first time Grenada has had the privilege of being provided with a storage facility of this nature. What prompted this?

It was out of my own need; the need of Spice Isle Fish House to get a storage space for our fishing tackle and supplies that we import for the fishing sector. 

What is your storage capacity? 

Right now, we have about fifty 40-foot shipping containers. However, the real aim is to have purpose-built warehousing for which people could rent anywhere from 2 or 3 thousand square feet to 10 and 20 thousand square feet. And we will aim for weather-resistant, smart climate buildings at our site in Woodlands, St George’s.

And these warehousing facilities that you are talking about, would they give rise to the next industrial park?

We’re hoping so. We would like to be able to see some light manufacturing being done in Grenada. We’re never going to attract serious manufacturing with our high utility costs. But, if we can achieve a situation where goods are shipped from Asia to Grenada, handled here and then redistributed from here to Central and South America, it might be something that would allow employers to hire a few hundred Grenadians to fulfill their needs .

So, in the first instance, this initiative came about to meet your need? And now, you recognise there is a wider need in the community for this kind of support?

Yes.

How are you getting this message across to the Grenadian community that you have this facility?

Well, to this day, we haven’t done any sort of publicity; we just get on with the job because things are relatively fluid, constantly changing. We see it as very important to come up with a good base plan first, test the water, so to speak, to ensure that there is  a need. We see the need for warehousing, temporary and long-term storage; but, most importantly, we want to develop jobs. We want to see more young people  coming out of schools with better technical abilities; to see them having a place to work. We don’t want them to leave the country and then not come back because of a lack of opportunities. We need to develop at home, as much as we can; and, if we can provide an incubator building for some sort of business along those lines to get people working, we’d be very happy that we’ve helped in that purpose.

And can you say how long you’ve been providing the storage?

The storage has been going on for about one year; we have been very lucky. We have had construction taking place and a need for storage by people who have either relocated or returned to Grenada and are working on their homes. Some people who were leaving the country on contract work needed a few things stored for a few months until they returned, and we were able to provide temporary storage. Storage is also provided for people who are coming into Grenada to work on construction projects.

Initially, you mentioned the hotel and tourism sector. What has been the response to that sector to the facility?

So far, in the conversations that we’ve had, everyone says, “I was going to do that; that was my idea; we were going to do it’’. But I think everyone’s happy to know that the service is available. They might not need it right now; but if we can imagine the next time, one of our prominent hotels wants to do refurbishment. They’ll take out 50/60 rooms worth of furniture and they don’t want that furniture to spoil. We’ll be there to offer them a solution; we could keep their material safe until they either sell or donate it to worthy causes, as most hotels do. 

You started the storage facility initially to support your business, SIFH Group, and then branched off to the wider community. What’s the future?

For the future, we would like to see light manufacturing taking place and getting hundreds of people to work not just in basic jobs but in good technical positions. 

When we initially had this conversation, you said you were envisioning about $30 million for the overall development of this project.

I think the figure is not far off. The infrastructure work really has been the biggest challenge and we’re doing most of that, getting ready to build. We’ve had a local engineering company that did a great job for us. We continue to work with them and we’ve hired people directly to do the infrastructural work. We still estimate spending about $30 million once this 7-acre facility is developed.

By what period are you looking to have this fully developed?

We want to say within the next three to five years. The first year has been infrastructural, drainage, excavation and foundation. In the next two years we envision the first set of warehousing going in, with the aim of completing the process within the next 3 to 5 years.

Who would determine what is built on this facility? The need of the public, your vision? And who would determine what goes where?

Ultimately, the demands of customers coupled with our abilities will determine what is built. We are not going to build something that is not needed; anything that we get ourselves involved in, it must have a need. We see in Grenada that there is a need for warehousing; there is a need to get people to work and, further, to get them good jobs. 

Is the idea that the tourism industry will have more rooms because there would be no need to put down warehousing on their plots? 

Yes. As you know, space is limited on our main beaches and in our main tourism belt area. It appears to be a bit of a waste of good valuable land, where we could be expanding and accommodating more tourists who are contributing a significant amount of money to our economy. The hotels may not have previously had an easily accessible option for off site storage before, but our warehousing will provide this possibility.   

People thumb their noses at this wetland location, historically. What is it you seeing that we are not seeing?

Twenty years ago when I moved here, it was one of the first places I stopped for a cold drink, and I said to myself this is the next logical industrial area for Grenada. I was not thinking I would be the one doing a bit of it. But it just made sense as it’s close to the airport. Any piece of land can be worked on; it’s a matter of how much you are willing to spend to make it feasible. And yes, there are some concerns with flooding and drainage. We’ve addressed most of them. We’ve cleaned the surrounding drains ourselves at our expense, from our boundaries all the way back to the ocean, which made a very big difference in allowing the water to flow freely and fight flooding. Any development in this area – from Springs, Golf Course, part of Morne Jaloux, and Woodlands – everything is draining in this section. So, a lot of thought and energy and proper physical planning have to be involved, based on the potential projects and how they will affect the drainage in this area. We invested in thorough engineering and sought Physical Planning’s permission through the necessary lawful procedures and it was granted.  

Why here, why now?

We’re seeing lots of ongoing projects that provide opportunities. We also hear from the Prime Minister and other Ministers about projects that are coming. One of the first things project managers look at is the country’s basic infrastructure, so that they’ll be able to build efficiently. It means they’ll need storage for things like containers, trucks, and cranes for offloading items, and the facility can’t be in the middle of the country; you need to locate it relatively close to their project for logistical efficiency. 

Would you say you’re a forerunner?

No.  I think I can recognize a need in the marketplace and like the challenge of envisioning how I can fill it. I have a very keen interest in construction, even if I’m not a contractor, and I will not be one. I like building and would like to see development.  And, I am very happy and proud to see the great effort the government has put forth to create an enabling environment for everyone to invest, prosper and keep reinvesting.

What is happening in this economy that gives you the confidence to want to put down upwards of $30 million into the facility?

There are multiple projects ongoing in Grenada, and potential projects, that will provide opportunities for supporting businesses like ourselves to build and grow. Moreover, we want to see the country go forward, to see everybody rise together and, if we can, provide opportunities in jobs, potential investments and contribute positively. 

What’s driving the passion that I hear in your voice? 

I like to see development, and I’ve been very fortunate to work in a country where, if I had an idea and I thought I could do it, I was able to do it; no one stopped me, no one said, you can’t do it , don’t do it. I was very fortunate to be able to run with my ideas.

And you’re referring to this country?

Yes, I am a proud Grenadian. Nothing is ever perfect, but our crime rate is almost nonexistent compared to our neighbours. There’s also the ease of doing business. You can have your goods off the port in a day, if you have your paperwork in line. How many countries can you get things done with the ease that you can do it in Grenada? Yes, we can do better in certain areas; but, considering what we do and how we do it, there’s a lot to be said for how well the Country is performing right now. 

You supported the construction industry by introducing sand. What prompted that? 

We saw the opportunity with the importation of sand after the banning of the mining of local beach sand. We understood very clearly the importance of sand in the building industry. We kept hearing too many reports of sand running out, we don’t have any more sand, and that construction was being held up for weeks. And when I hear things like that, it causes me to act because we want to see projects and development progress. So, if I see an opportunity where the company can develop a part of its business by providing a needed service or product, I will do so. We have to be profitable when doing it but that’s not a driving force; the driving force is collectively solving problems we face. Sand is a raw material for making concrete and is therefore important for the ongoing developments in Grenada . We are not only offering sand for large projects , but also aiming for small builders and individual contractors to have easy access and ready supply of sand. We’re open seven days per week; we’re trying to offer great customer service. 

You said you saw an opportunity to solve the problem. Are you an opportunist, problem-solver or plain old businessman?

I am not a traditional business person. I believe to be successful in business , one must seek opportunities, recognise that demands are met by solving a customer’s problem, and best business practices must be followed for longevity. So the combination of these 3 things guide my decisions, and if we have all 3 covered, I’ve hit the trifecta.

You’ve seen the Grenada business set up and set up in the Caribbean and internationally. Is Grenada poised for takeoff right now?

Yes, from my perspective it definitely is! Everywhere you look, there’s a lot of buzz in and about Grenada. We are presently seeing physical investments as the best evidence of this  – Silversands, Renegade Rum and Kawana Bay are great examples of that. Every few years, our top hotels such as Spice Island Beach Resort and Calabash are revamping their product, constantly reinvesting. Without people like that, I won’t exist. I pretty much owe everything we do to many other folks in Grenada who have seen the need to expand and to invest their money back at home. I’ve always said to all the people we work with that our mantra is  that we need them to be successful before we can be successful. We want everyone to do well; and if we can play our part, it gives me great satisfaction to know that we have.

What is your mission?

For this project, I would like to establish the business park and attract foreign companies to do some light manufacturing in Grenada at this location.

And are you going to team up with the GIDC, which seems to be in charge of the industrial parks on the island, to advance your cause or are you going to stand alone?

We will not be teaming up with the GIDC, which has very straight forward guidelines and mandate by the Government of Grenada to develop business in the country. We are a stand alone, private business offering physical space and a convenient location for new and existing businesses in Grenada.

When this becomes the success you envision, would you look elsewhere on the island?

I think I’m looking already. A lot of concern for development of the country questions why everything is always in the South, and I agree. There’s a lot of services and facilities we don’t get in other parts of Grenada. Right now, with the Construction of a rum factory North of Grenville, that provides a new Industrial site that could potentially provide many new jobs and support businesses. This could be the beginning of the growth of industries and new projects outside of the South. Where there is growth and a need for our services, we are ready and willing to provide them. 

In your vision, when this IBH facility is up and running, how would it dramatically transform the surrounding locality?

We definitely think there’s going to be a lot more buzz around the place. There will be a lot more people coming to work in this area, hoping to work at these facilities. We don’t want traffic to be crazy, but we know it’s going to be a bit busier. We have sorted out the drainage on the old bridge and hopefully it’s going to be cleaned on a regular basis, and flooding issues that we’ve had would be sorted out.  Landowners are going to see potential opportunities for other business places that would want to come and set up in the area. So, we see it as having great potential for a lot of others to benefit, not just ourselves.

So you wrote to the government and said, ‘I’m James Ince and I have this project?’

Well, I’m in the process of providing the Government with a report of the project – what we have achieved so far and our plans. Everything we’ve done so far has  been done without concessions.

Can you state what you’ve done so far?

We’ve probably spent about 4 million EC dollars thus far. That’s money spent for the purchase of the lands as well as for infrastructural work, removal of soil, and putting in compacted material in preparation for building. This has been done without any assistance from the government. We are in the process of writing a plan to get some assistance for constructing the buildings. These buildings  are going to be following some strict guidelines in terms of energy efficiency and hurricane preparedness; we want to make sure we don’t have to build back if, and when, a storm passes. We also have an obligation to protect our clients’ belongings that we store. We have to plan for the future. 

So you are going to put down hurricane-resistant buildings?

Yes, we have advised the Engineering team that all buildings should be able to withstand hurricane force winds and dangerous weather. We believe it is important given our experiences with destruction from Hurricane Ivan and Grenada’s  focus on Climate Resilience to prevent damage to property as far as our plans will allow.

Who is the local engineer you’re working with? 

Barry’s Engineering, Mr. Leslie Barry. He has been working with us tirelessly. We are very happy to work with him and his team. They are very professional. We look forward to working with him for the balance of the project.

And do you believe you would be able to find talent locally to complete what you’ve started? 

Yes. There are more than enough skilled and qualified persons on the island to conclude the work; that’s not an issue at all. We may have a situation where there’s a certain speciality job and we require outside resources to do some aspect of it. But, there’ll be local people working alongside, hopefully learning what they’re doing.

You’ve been here for 20 years; SIFH Group is a successful story. What do you expect the government to say when they receive your letter? What are your expectations?

I believe they will be interested in the project, the location and business potentials. We will be requesting concessions to assist in realising the project, as any investor that comes in would do. There are existing Investment incentives, and we will not be requesting any extraordinary relief that is not in line with previous approvals. The difference is that because this project differs from traditional businesses or projects that enjoy the incentives, it does not fit the mould. Special approval is therefore needed to extend the assistance to this project.

Do you expect favourable responses?

Yes,I am hopeful for a favourable response. I would like the Government, in some degree to come on  board with the project.

You want to work with the government as a supporter?

Yes, we definitely want the Government’s support and believe it is important for the project’s success. We are very happy to see the progress the Government is making. We want to see the country go forward and it will go forward if you have the right ideas. 

In terms of safety, what measures have you put in place to ensure that a company’s storage is safe?

At the present time the property is fenced and gated. Security cameras and an automated entry system are being installed so that when people enter the property, they can be monitored, log in and out automatically. We are moving with the technology that’s provided by local companies; we are trying to do everything we can to make sure that we spend the money within Grenada first. If they can’t provide the service at the right price, then we look regionally; the last look is internationally, if you have to go that far.

Regarding employment creation, what do you anticipate?

Right now, it’s about 7 or 8 folks on a day-to-day basis during this first infrastructural phase. When we physically start doing the roads and drains and foundations, we can easily see an increase to about 30 or 40 construction jobs for that period. Once we get the buildings operational and begin renting them out, our clients are then going to be hiring people to carry out their operations.

The fact that you’re able to turn this wetland into dryland, do you think everybody accepts that?

I don’t think they’ve taken the time to come and understand what we’re doing. There has been a lot of speculation on what we are doing and how we are doing it. We’re very approachable. We try to figure out the best way of solving problems without causing inconvenience to others. Some people have made negative comments about the area, but I see it slightly different. We want to do everything we can to make sure our development doesn’t negatively affect someone else.

What will be the ideal relationship between you and the neighbourhood?

I think it has to be a situation where the neighbourhood feels as if they’ve got development coming to the area that raises their property value, and also potential jobs for people who are not working, and it’s not intrusive on their day-to-day lives.

Can you give assurances on that?

We applied to Physical Planning for permission for industrial development and they approved it. We’re not going to run a night club blaring music all night; it’s not that sort of area. We don’t want to do anything purposely to cause headaches or confusion for anybody. The site will have adequate parking and space for Operations so that no unnecessary congestion will be added.

In your view, what would this project look like in the end?

I am looking forward to seeing the buildings up and running; to seeing clients prosper, lots of people working, a productive, high-energy environment that provides success for all. That will be an achievement.

Over what period all of this should be up and running?

The first phase should be complete two years from now. By the end of this year we are hoping for the first warehouse to be completed; but we are in the drawing stage still. We anticipate that by the end of this year the first building will be up and  the roads in. Then, we’ll be planning for the next buildings into the next year.

What about the green environment-friendly business?

That what we’re looking for with the buildings. We are going to insulate the buildings to increase their efficiency, so the cost of cooling is not exorbitant. Using the latest technology, we would like to be able to create something that is truly green and environment-friendly.

In one sentence, how will you summarise all of this?

Exciting for me! I like the thought of doing something that maybe hasn’t been done this way before. As far as I’m concerned, it is the responsibility of business persons/owners to try and create as much employment as we possibly can and meet the demands of our gowing economy.

Anything else?

We thank the Barnacle very much for sharing this project with your audience.