By David Fox The plan to use an abandoned pier in St. George's as an alternative site for a container port is playing to mixed reviews.

Yesterday, two leading retailers poured cold water on the idea and raised concerns about the additional traffic it would bring to Bermuda's roads.

The Bermuda Land Development Corporation (BLDC) wants to maximise the potential of Southside, the land formerly occupied by the US Naval Air Station at Kindley Field.

BLDC executives envisage a scheme which includes the establishment of a bonded warehouse at Ship's Wharf, the former Marginal Wharf. It would, they believe, address the complaint of retailers who pay Government duty for imported merchandise up front, which significantly adds to their costs.

BLDC spokesman, Don Grearson, said, "We think it is the best industrial land in Bermuda. It has waterside access and airport access. We've got space there at costs lower than you can get anywhere else.'' And BLDC CEO Carl Musson said, "The benefit of it as the container port is that Hamilton regains some very valuable waterfront property. You also can save two hours in shipping time, if you unload there, instead of Hamilton.

Another advantage is that there is lots of space for warehousing. In Hamilton, you don't have that.

"We are looking at an opportunity for a bonded warehouse. It is quite expensive right now for importers because of the duty they have to pay up front on goods they import.

"A lot of them actually hire warehouse space on the east coast and when they are ready for it, they ship it down from the US.

"So we see an opportunity in a bonded warehouse, where merchants don't have to pay the duty until they take the products out of bond.'' HA&E Smith Ltd. president Roger Davidson and Trimingham Brothers president Eldon Trimingham, however, were independently on the same page when considering problems with the idea.

Mr. Davidson said, "We import fashionable merchandise that comes in various sizes and so additional warehousing could never be a solution because we have to have the choice or variety on hand for the customers.

"Trucking the goods from St. George's would be a costly problem. Also we own warehouse space already, as others do, and this plan would mean that we would have to pay additional costs to have it bonded down there. The additional costs, I can guarantee you, would far exceed any savings.

"We go through a horrendous rigamarole and red tape just running a business here now, compared to our North American counterparts. So it would just make us that much less competitive. And the trucking distance from St. George's would be significant and would further help to destroy the quality of life on the Island, which is one of the reasons tourism is under such pressure now.'' Added Mr. Trimingham, "You'd have container trucks rolling the length of Bermuda. That won't be popular with most people.

"The bonded warehouse idea would make more sense for us if it was set up in the US, and not here at all.'' Retailers like Trimingham's currently maintain east coast warehouse space, which receives and consolidates company product they are importing from across the US and Canada.

Mr. Trimingham said, "A bonded warehouse in Bermuda, from our point of view, wold be no good to us. We did quite an extensive study on it and it is not viable.'' Mr. Musson conceded: "There are some issue and challenges that have to be overcome. The transportation one is part of the broader transportation issues that have to be addressed on the Island, anyway.'' Mr. Grearson added: "We know that there are some issues, but we want people to at least address it, and talk about it.'' Mr. Davidson stated: "I can see why the BLDC likes the idea. It builds up Southside, making it bigger, more viable and more important.

"From our point of view, we have so many costs laden on our back right now, we don't need additional costs. And it would require more staff to deal with it, who are not available, and who we couldn't afford.'' Roger Davidson Carl Musson GOVERNMENT GVT MILITARY MIL