No. 1 I MAY 2007
Caribbean Shipping Dealing with Growth
Puerto Rico Mayagüez poised to Port of Kingston take o Expanding Beyond Recognition
CONTENTS
No. 1 I MAY 2007
Cover story – The Port of Kingston 17 Kingston expanding beyond recognition 19 Jamaica works closely with US over port security 21 New logistics centre for Kingston 23 KWL continues to expand and improve its facilities 24 Getting the best out of Kingston’s human resources 26 Pioneering fee recovery specialist broadens its range of services
SPECIAL FEATURES STANDARD FEATURES 6 CSA honorary members 2 Editorial CSA appoints members-for-life The pursuit of excellence 7 Puerto Rico 3 Message from the CSA President Mayagüez poised to take off 4 Letter from the General Manager 11 Jones Act still debated in Puerto Rico A year of challenges successfully met
13 Trinidad & Tobago 14 & 34 The Human Factor Efficiency experts will work with PLIPDECO 28 Newsmaker 15 Caribbean schooner trade David Harding - An authority on Is there a future for the Caribbean maritime transport Schooner trade? 35 Ships 32 Guadeloupe CFS takes delivery of its largest ship Guadeloupe well on the way to modernization 41 CSA News 37 Curaçao Curaçao plans mega cruise terminal 48 A Matter of Law Piracy and maritime terrorism 38 Dealing with growth – challenges for Caribbean shipping Continuing growth in shipping industry – a major challenge for Caribbean Except for that appearing in the Editorial column, the views and opinions expressed by writers featured in this 43 Guyana publication are presented purely for information and John Fernandes expansion strengthens discussion and do not necessarily reflect the views and Guyana’s shipping industry opinions of the Caribbean Shipping Association. - The Editor. 45 Barbados Bridgetown’s investment in major expansion
CARIBBEAN MARITIME I MAY 2007 EDITORIAL The pursuit of excellence
No. 1 I MAY 2007 A commitment from the Editor The official journal of the Caribbean s I write this, the Caribbean people are hosting Cricket World Cup, the Shipping Association Abiggest single event in the game. I just watched the Australian team beat the stuffing out of what, up to now, looked like a very capable Sri Lankan caribbean shipping association side. In so doing, the Aussies chalked up their 20th consecutive victory in the Cricket World Cup. Yes, 20 consecutive World Cup victories – the operative MISSION STATEMENT word being ‘consecutive’. “To promote and foster the highest Now, a careful look at the Aussie players will reveal one simple fact. They are quality service to the maritime industry all human beings. Not one appears to have supernatural powers and, to the best through training development; of my knowledge, none has demonstrated such powers on the field of play. To working with all agencies, groups and my mind, this is the single most inspiring characteristic of the individuals in the other associations for the benefit and development of its members and the Australian team. The fact is, they are mere mortals, playing by the same rules and peoples of the Caribbean region.” in the same conditions as all the others, with no greater accumulation of individual talent than any of the other leading teams. They certainly do not boast the world’s GENERAL COUNCIL 2006-2007 best batsman. The team with that individual, the world record holder, is not even President: Fernando Rivera Vice President: Carlos Urriola a contender at this stage for the semi-finals. The Aussies do not have the best fast Immediate Past President: Corah-Ann bowler or the best spin bowler in this competition. Robertson Sylvester If nothing else, the Australian cricketers’ performance so far proves my argu- Group A Chairman: Robert Foster Group A Representative: Michael Bernard ment that excellence is achievable. It is not the exclusive domain of special or Group A Representative: Ian Deosaran gifted persons. Group A Representative: Trevor Phillip Group B Chairman: Grantley Stephenson Excellence is achievable Group B Representative: David Jean-marie Group C Chairman: Johan Bjorksten My sons have adopted my personal motto. Indeed, Andrew and Jason have placed Group C Representative: Cyril Seyjagat it at the top of their curriculum vitae. “With relentless effort and attention to General Manager: Stephen Bell detail, excellence is achievable.” I also believe the converse of my motto to Director Information And Public Relations: Michael S.l. Jarrett be true. Without relentless effort and attention to detail, excellence cannot be achieved and sustained. Caribbean Shipping Association 4 Fourth Avenue, Newport West, I bring my motto as a personal commitment in establishing ‘Caribbean Mari- P.O. Box 1050, Kingston C.S.O, Jamaica time’ as the official journal of the Caribbean Shipping Association. I start this jour- Tel: +876 923-3491 ney celebrating a quarter of a century of counsel to the General Council of the CSA Fax: +876 757-1592 Email: [email protected] and even more years of journalism and writing experience under my belt. Against www.caribbeanshipping.org this background I made a commitment to General Council on January 22, 2007 in proposing and naming this publication. And here, as Editor, I reaffirm and recom- EDITOR mit to the CSA; to all our readers; to our advertisers; indeed, to all the peoples of Mike Jarrett Email: [email protected] the wider Caribbean Region. With relentless effort and attention to detail ‘Carib- bean Maritime’ will achieve excellence and hence sustainability. PUBLISHER: In future editions, this space will carry the Editorial of ‘Caribbean Maritime’. The Editorial will document the position of the CSA as it continues its historical mission of bringing development to the peoples of the Caribbean, by helping to build an 1 Kings Court, Newcomen Way, efficient and viable shipping sector. The CSA’s objectives are clearly articulated Severalls Business Park, Colchester Essex, CO4 9RA, UK in its mission statement. The mission of ‘Caribbean Maritime’ is to support and Tel: +44 (0)1206 752902 facilitate the CSA so that the Association may achieve its goals. This we will do Fax: +44 (0)1206 842958 through the pursuit of excellence. In this pursuit, we seek and invite your support Email: [email protected] www.landmarine.com and, indeed, criticism. Managing Director: Gary Gimson Sales Director: Lester Powell Studio Manager: Carl Thompson Design: Guy Clubb Editorial: John Tavner, Robert Deaves Advertising Administrator: Judith Gimson Mike Jarrett, Editor Office Administrator: Lindsaye Nunn
CARIBBEAN MARITIME I MAY 2007 MESSAGE FROM THE PRESIDENT
Statement from the President on the launch of ‘Caribbean Maritime’
rue to its mandate to 30 countries in South Amer- Tfacilitate development ica, Central America, the Fernando Rivera, President of of the Region’s shipping Caribbean, the United States the Caribbean Shipping Association industry, the Caribbean of America and in European Shipping Association takes countries where shipping another bold step forward lines serving the Caribbean in publishing its official jour- have headquarters. In addi- Caribbean Maritime will nal, ‘Caribbean Maritime’. tion to CSA members and The CSA is the voice of the the wider shipping com- help promote our Region Caribbean shipping industry munity, the magazine will and ‘Caribbean Maritime’ will be distributed to suppliers It is with pleasure that I welcome all members and friends be a major institution in the of goods and services to the of the Caribbean Shipping Association to the first issue of work of the Association. ‘Car- shipping industry. “Caribbean Maritime”. ibbean Maritime’ is now the ‘Caribbean Maritime’ will This new magazine will be recognized as the official maga- official journal of the CSA. be produced by the CSA. Its zine of the CSA. The magazine will be dedicated to the transpor- ‘Caribbean Maritime’ will editor is Michael S.L. Jarrett, a tation industry within the Region and will look at all aspects of be a high quality, full color journalist with over 30 years’ the industry. It will tackle the current issues that we face within business magazine. Its edito- experience who has been the Region such as labour, vessel operations, agent manage- rial philosophy is “to support the CSA’s Director of Informa- ment, human resource development and training. This will be the growth and develop- tion and Public Relations for a high-quality magazine which will serve all the interest groups ment of the maritime the past 16 years. Mike will within our very vibrant Association. industries of the Caribbean be using the services of one We are very excited about this magazine as we believe that Region”. Content will there- of the UK’s leading maritime it will further enhance the image of the CSA as “the voice of the fore focus on development publishers, Land & Marine Caribbean shipping industry”. I urge everyone to distribute this issues. Coverage will include Publications Ltd, which magazine within your respective territory and to have copies in cargo shipping, the cruise currently produces the CSA your offices as we firmly believe that this magazine will continue industry, port and terminal Handbook of Caribbean Ports. to help promote our Region as a very stable work environ- operations – and the individ- I encourage all players ment and an area where we can see continued development. uals and organizations that in Caribbean shipping to Having said that, I also urge us to support this venture by way of make development happen. advertise in this magazine advertising and let us all be proud of this new achievement on Its pages will be filled with and, in so doing, to support the part of the CSA. thought-provoking articles regional shipping. Please give us your feedback as we strive to make this Asso- and informed commentary. ciation even more productive in the upcoming year. ‘Caribbean Maritime’ will Fernando Rivera be published three times a President, Caribbean Stephen Bell year and distributed in over Shipping Association General Manager, Caribbean Shipping Association
CARIBBEAN MARITIME I MAY 2007 GENERAL MANAGERS MESSAGE A year of challenges successfully met Open letter from the CSA General Manager
DEAR MEMBERS, responsibilities. The Secre- tinued efforts to train port owing to conflicts with the tariat also discussed matters facilities security officers. start of the cruise season. he year 2006 was one raised at the General Council The CSA hosted a course Overall feedback from the Tof challenge for the meeting, including the in Montego Bay, Jamaica, course was good. Several Caribbean Shipping Asso- possibility of a study tour aimed at cruise operators people said they would ciation as we faced the for senior executives in the and shore excursion busi- be interested in follow-up task of bringing together maritime industry. nesses. This was a new courses. a new discussion group for The CSA presented attempt by the CSA with The second training semi- NVOCCs. We also acted as another successful annual regard to training as we are nar was conducted in April secretariat for the Carib- Caribbean Shipping Execu- looking to further our foray in Curaçao. This workshop bean Village at the Seat- tives Conference, the fifth rade Cruise Conference in in this series, which has “The CSA Secretariat acted as Miami. And we faced the replaced the semi-annual secretariat for the Caribbean Village challenge of electing a general meeting. Over 130 new President and Gen- delegates from 15 countries at the Seatrade Conference in Miami eral Council at the 36th attended the conference in in March 2006. Thirteen destinations annual general meeting in Curaçao on May 22, 23 and participated jointly in the annual Panama. Nevertheless, we 24. We faced challenges had a successful General before the conference as trade show and exhibition under the Council meeting on Janu- the volcano in Montserrat Caribbean Village banner” ary 30 that allowed us to erupted, creating an ash plan and prepare for the cloud that led to the cancel- – and our name-brand – into was conducted at the Dutch coming year. lation of quite a few flights the cruise ship industry. This Caribbean Training Centre The Secretariat used the into Curaçao. Despite these highly concentrated course and was attended by 15 time in January to discuss challenges we once again discussed practical ways in shipping industry personnel plans for both conferences had a successful conference. which a company’s manage- from Barbados, Aruba, Anti- scheduled for the year as well On the third day of the con- ment practice will continue gua, Curaçao and Bonaire. as looking at ways to improve ference we presented the to enhance and improve Entitled Strategic Manage- efficiency. One area of con- cruise shipping forum. There its performance. It focused ment for Cargo and Cruise cern is the amount of paper is quite a bit of interest from on the fact that all systems Operations, the workshop we produce and we will our members, but the CSA techniques and operations was geared to managing continue to pursue the use of has to look at how best we must be dynamic as well directors and senior opera- the internet to communicate can develop this area. as being able to forecast tions managers at port facili- and send documents. strategies for survival in this ties and shipping agencies. Last year we completed Training competitive market. This was a powerful man- the revision of our guide- The CSA conducted two A total of nine par- agement seminar on how lines for hosting confer- training seminars since we ticipants, all from Jamaica, to run a port facility within ences. We also created last met at the 35th AGM & registered for the course, the current fast-changing a contract for exhibitors Exhibition in Barbados in of whom seven are on the environment. participating in the CSA’s October 2005. In addition, shore excursion side of the In August we once again Shipping Insight business we partnered with Secu- industry. Two registered partnered with Security exposition so that both par- rity Administrators Ltd as a participants, Curaçao and Administrators Ltd (SAL) on a ties are fully aware of their minor sponsor in its con- Antigua, had to withdraw port security officers course.
CARIBBEAN MARITIME I MAY 2007 GENERAL MANAGERS MESSAGE
It was a well attended course Convention 2006. These 13 ing for Non Vessel Operating in partnership with the host with over 35 participants destinations are Antigua, Common Carriers at the 36th country. Brochures for the from four countries. This Barbados, Bonaire, Curaçao, AGM. We were moderately AGM were colorful and elic- is an ongoing series being Grenada, Guadeloupe, successful, with only six ited positive responses from spearheaded by SAL and Jamaica, Mayagüez, Marti- NVOCCs in attendance, but our membership on the we fully endorse its efforts. nique, Port of Miami, Puerto I feel this is a step in the presentation. The host for The company’s Managing Rico, St Lucia, and Trinidad right direction. The mem- the 36th AGM did things dif- Director, Capt John Ulett, & Tobago. Together they bers thought so, too, and ferent than in the past. The has made presentations at represent over 3 million pas- pledged to continue their trip to the port tour was by CSA meetings over the years senger arrivals. support for the CSA’s efforts. train and we were properly and has always been willing The primary aim of Everyone agreed we should looked after on the Panama to work with the Association. the Caribbean Village is market the conferences to Canal Railway Co. Delegates We had also scheduled a to leverage the Region’s try to get more active par- also had an opportunity to course in partnership with dominance in the cruise ticipation. tour the Panama Canal by Trainmar for the last week shipping market and pro- vessel. The CSA also held its of July, but this had to be mote further collaboration Cruise Committee second annual golf chal- postponed owing to costing between national cruise The Cruise Committee lenge with over 15 golfers (presenter’s fee) and low shipping organizations. The remains enthused about participating in the benefit registration. Based on expe- Caribbean is still the premier what can be accomplished tournament, which will con- rience, we will refrain from destination for cruise lines if we continue to market this tinue to attract golfers in the presenting courses in June and the key message to the area. The committee has maritime community. and July because of low par- cruise and travel community had success with staging the This year’s port award ticipation from members. is that we look forward to Cruise Day seminar as well as competition attracted over continuing to develop this acting as secretariat of the 10 entrants and we saw Caribbean market, in conjunction with Caribbean Village. Kingston Wharves Ltd and Maritime Institute our industry partners, in a We note that the Cruise SPRC in Cartagena walk Throughout 2006 we way that benefits everyone. Day needs to be better devel- away with the prestigious continued to work with the The Caribbean Village also oped and we are looking trophies for most efficient Caribbean Maritime Institute participates at Seatrade at how best to market this ports in the Region. on various projects. We note Europe and we expect product to take advantage in The 36th AGM, Confer- that CMI has a new Manag- that the Caribbean Village Mayagüez in May 2007. This ence and Exhibition was an ing Director, Fritz Pinnock, will continue to grow and is an area of growth in which extremely successful event. who is well known to the expand as more destinations our members need to get With over 260 delegates CSA, having worked with us and industry partners join actively involved in order to attending, it continues as a presenter for our train- this collaborative effort. remain viable in the maritime to demonstrate the CSA’s ing seminars. We continued This was a successful industry. importance in the regional to serve as a member of the conference for members of maritime industry. Del- Jamaica Maritime Trust Fund the Caribbean Village and, 36th AGM, egates, participants and and once again we were based on feedback from Conference presenters were pleased and invited to participate at the those attending, the con- & Exhibition impressed with the profes- graduation ceremonies for cept was well received and The 36th Annual General sional and efficient way the the institution. we should see our member- Meeting, Conference and Secretariat handles all the ship continue to grow. For Exhibition was held in conferences – and this is Caribbean Village further information please Panama for the first time. due in no small part to the The CSA Secretariat acted contact the CSA Secretariat. Sophia Samuels, adminis- efforts of Sophia Samuels, as secretariat for the Carib- trative assistant of the CSA Michael Jarrett, Dionne bean Village at the Seatrade NVOCCs Secretariat, visited Panama Mason-Gordon and Andrea Conference in Miami in We continue to keep this in September to conduct site Cameron who works with us March 2006. Thirteen desti- issue in the forefront of all meetings and get first-hand at the AGMs. nations participated jointly group members. Based on a knowledge of the hotel and in the annual trade show decision by General Council, conference facilities. Stephen Bell and exhibition under the we made a concerted effort, Our PR director, Mike General Manager, Caribbean Village banner at with the aid of the President, Jarrett, did a good job of Caribbean Shipping the Miami Seatrade Cruise to have a discussion meet- marketing the conference Association
CARIBBEAN MARITIME I MAY 2007 CSA HONORARY MEMBERS CSA appoints four honorary members he Caribbean Shipping Association in October 1973. Mr Blackman served Thas recognized the contribution one term as President. When Ludlow of four stalwarts by appointing them Stewart moved to make training central honorary members of the Association. to the work of the CSA, he turned to Mr Peter Evelyn, Michael Blackman Blackman to lead the way. Mike Black- and Ludlow Stewart were present in man was therefore named the CSA’s first Panama at the 36th annual banquet on training director in 1981 and it was he October 17, 2006 to receive the instru- who organized and produced the CSA’s ment of honorary membership and the first training seminars in Barbados. Peter Evelyn is recognized by the accolades of their colleagues from the Ludlow Stewart, the fifth President outgoing President outgoing President of the Association, of the CSA, was elected to office on Mrs Corah Ann Robertson-Sylvester. The October 15, 1981. Mr Stewart was fourth person, Noel Hylton was not recognized for his role in reposition- present in Panama. ing the CSA and raising its stature and Peter Evelyn was the CSA’s founding profile in the Caribbean. By inviting President. He was chair of the steering the political leaders in the Caribbean committee that did the development to participate in the opening ceremo- work in establishing the Association and nies of the CSA (which he initiated), he was elected to lead the Association at its brought the existence and work of the first General Meeting held in Nassau in Association to the attention of regional the Bahamas on October 19, 1971. Under governments. By engaging experts Mr Evelyn’s leadership, the CSA moved to make presentations to CSA confer- forward dealing with the fundamental ences on topics relevant to shipping decision-making, problem-solving and and development, he empowered CSA the setting of standards that is neces- members. By making training a CSA pri- sary in establishing an organization with ority and appointing a training director members from different countries. who organized the first CSA training Michael Blackman receives his Noel Hylton, who today heads the seminars, he put to rest arguments honorary membership Port Authority of Jamaica, was General that the CSA was only a “talk shop”. Manager of the Shipping Association of Through effective public relations, Mr Jamaica and was also a part of the steer- Stewart gave the CSA a higher profile ing committee that established the CSA. in the Caribbean, expanded member- As the SAJ’s General Manager, Mr Hylton ship across the Region and gained the did much of the work in registering and recognition of organizations including establishing the CSA and its Secretariat Caricom, allowing the Association to in Kingston, Jamaica. He was the CSA’s claim the title “the voice of the Carib- first secretary and executive Vice Presi- bean Shipping industry”. dent and had to deal with much of the These appointments bring the documentation and establishment of number of honorary members of the procedures that the new organization CSA to five – Alvin Henry, the CSA’s required. His was the task of organizing second executive Vice President, was the content and logistics of the Associa- the first person to be so honoured. tion’s first general meetings. Honorary members of the CSA are Michael Blackman was the second exempt from membership dues and all President of the CSA. He was elected fees for attendance at conferences are to office at the third annual general waived. Honorary members of the CSA Luddy Stewart is handed his honary meeting, held in Kingston, Jamaica, are members for life. membership of the CSA
CARIBBEAN MARITIME I MAY 2007 PUERTO RICO
Mayagüez poised to take off Master plan for $1.7 billion development By John Collins
armarked for major development local and federal tax incentives such as Eis the Puerto Rican port town of Section 936 of the US Internal Revenue Mayagüez, which appears poised to Code. pull itself up by the bootstraps. High on the list are plans to dredge the Tuna industry harbour to ft. Over the years Mayagüez also became Founded in 1760 and located on the a center for the tuna industry. At west coast of Puerto Rico, Mayagüez one time an estimated 80 per cent has always been a center of commerce of the tuna consumed in the US was for the country’s western region. Today processed and packed in Mayagüez, it has a population of 101,000 and including brands such as Bumble growing. Bee and Star Kist. Recently, however, Also known as ‘The Sultan of the the Mayagüez area saw a downturn West’ and ‘The City of Pure Waters’, in manufacturing as a result of the Mayagüez is a Mayagüez has emerged as a key manu- phasing out of Section 936 by the US center of commerce facturing center. Numerous United Congress and the decision of the tuna for the western part States corporations set up plants in the industry to transfer operations to the of Puerto Rico Region, attracted by the benefi ts of Pacifi c. >
CARIBBEAN MARITIME I MAY 2007 7 PUERTO RICO
unprecedented period of growth in the “Maritime shipping, both Mayagüez Region. A comprehensive in cargo and cruise ships, ‘Master Plan for Mayagüez 2010’, co- is an important element ordinated by the Government of Puerto in my plan to expand the Rico under Governor Anibal Acevedo Vilar, identified $1.7 billion in invest- economy of Mayagüez and ment in 17 municipalities – including the surrounding Region” Mayagüez – and satellite communities. “This is why Mayagüez is very proud Mayor José Guillermo to host the annual meeting of the Car- Rodríguez ibbean Shipping Association in May,” said Mayor Rodríguez. “Maritime ship- ping, both in cargo and cruise ships, Employment in the sector formerly diversify and revitalize the economy is an important element in my plan to topped 10,000 – an indication of the of Mayagüez. He has his eye on tour- expand the economy of Mayagüez and importance of tuna processing to May- ism, high technology services and an the surrounding Region.” agüez. But, with the closure of most of expansion of the port of Mayagüez the plants, it has dwindled to about 600. and its facilities so as to take advan- Opportune time At the same time, manufacturers in tage of its unique location astride a Expanding the role of Mayagüez in key sectors like apparel and electrical popular route for both cargo vessels shipping comes at an opportune time assembly, having lost their tax incen- and cruise ships. because the neighboring Dominican tives, were drawn to other countries In 2010 Mayagüez will host the Cen- Republic has entered a free trade with lower wages and operating costs. tral American and Caribbean Games agreement with the United States and This also led to dislocation in the May- and Mayor Rodríguez is convinced Central American countries called the agüez Region. that this event, which will attract more Dominican Republic-Central American Faced with this dire situation, Mayor than 6,000 athletes and tens of thou- Free Trade Agreement (DR-Cafta). José Guillermo Rodríguez is seeking to sands of spectators, will lead to an Puerto Rico’s largest trading part-
CARIBBEAN MARITIME I MAY 2007 PUERTO RICO
ner in the Caribbean is the US Virgin Puerto Rico Chamber of Commerce, Islands, but that trade is focused mainly sees Mayagüez as a key element in on petroleum products from the giant expanding Puerto Rico’s shipping role. Hovensa refinery in St Croix, a joint ven- But he sees a big problem at Mayagüez ture between Hess Oil and Petroleos de because the harbor has less than 30 ft Venezuela SA. of depth compared with 50 ft at Ponce Traditionally, however, the Domini- and 35 to 40 ft at San Juan. can Republic has always been a key Another problem identified by “Mayagüez is very proud to host the annual meeting of the Caribbean Shipping Association” partner of Puerto Rico in the Caribbean Edmundo Rodríguez is the traffic in a trade worth over $1.6 billion a year. congestion between Mayagüez and Puerto Rico has nearly 50 firms with San Juan. “This situation has to be cor- shared production facilities in the DR, rected if Mayagüez is to serve the San which is in sight of Mayagüez. Juan metropolitan area and eastern The proliferation of these joint ven- Puerto Rico,” he said. tures, sometimes called twin plants, was Mayor Rodríguez requested bids for in some cases spurred by loans under a major transformation of the May- Mayagüez is seen as a key element in Puerto Rico’s Section 936 program in agüez port facilities. Reportedly, > expanding Puerto Rico’s shipping role support of the Caribbean Basin Initiative. Although the program has been phased out, more than 20,000 jobs that were generated in the DR remain in place. One of the problems experienced by manufacturers in Puerto Rico with plants in the DR was the high cost of shipping. “Originally, to ship a con- tainer from Puerto Rico to the DR was $1,500 to $2,000,” said Edmundo Rodríguez, President of Nestor Reyes Customs Brokers. “Large firms like Baxter and Hanes Sara Lee welcomed the advent of the ferry service from Mayagüez to Santo Domingo because it brought the shipping cost per con- tainer down to about $850 to $950.” Edmundo Rodríguez, who chairs the Transportation Commission of the
CARIBBEAN MARITIME I MAY 2007 PUERTO RICO
the winning $600 million bid was bish and operate the Mayagüez port Strategy and develop our infrastruc- made by the Holland Group, which will facilities, has recommended several ture, which needs improvement for us refurbish and operate the port facilities. improvements to deal with some of the to attract new investment,” said Perea. When the changes are made, May- concerns of the shipping industry. “The port expansion project is very agüez will emerge as a key player in High on the list is the dredging of important in this because the mayor both cargo and cruise business. the harbor at Mayagüez to a depth of sees expanding the role of Mayagüez Partners in the Holland Group 35 ft. This vital improvement, which in shipping as crucial. Cruises are a include the Port of Rotterdam, a major will require the approval and partici- priority because they will attract more construction company, European inves- pation of the US Corps of Engineers, tourists who will then come back and tors and local partners for architecture, will enable Mayagüez to receive larger stay longer.” design and engineering. cargo vessels and cruise ships, both of Perea also expressed concern about “Mayagüez is located astride the sail- which are a priority. the cumbersome permit process in Puerto ing routes for the cruise ships and is an In addition, the Holland Group has Rico. “It has to be streamlined so that ideal port in which to break itineraries recommended that facilities for cargo things can get moving faster,” he said. to Aruba, for example,” said a source in vessels and cruise ships be separated to the industry. “It has the added advan- reduce congestion and improve opera- tage of providing US Customs and tional efficiency. Did You know? Immigration clearance in a much less Nelson Perea is executive director hassled atmosphere than Miami.” of the Puerto Rico Techno Economic Did you know that the CSA website is Corridor in Mayagüez, a not-for-profit one of the most popular in the Carib- Enter the Holland Group entity set up to support the creation of bean? It is readily found by all of the Another source in the cruise industry the Technological Corridor by bringing major search engines on the internet, pointed out that Holland America Line together the public and private sec- because of its wide and varied con- visited Mayagüez last December and tors with academia. It is funded by the tent about shipping. This makes the was impressed by the number of tours Puerto Rico Industrial Development Co CSA website a major gateway to the available in western Puerto Rico from (Pridco) and also receives funds from Caribbean. It therefore makes sense Mayagüez. The company also found the US Department of Labor under the to have your company’s website linked the Mayagüez municipal authorities workforce investment program. to the CSA at www.caribbeanshipping. very co-operative. “The Central American and Carib- org. Contact the CSA Secretariat, csa@ The Holland Group, which looks set bean Games are an important opportu- cwjamaica.com, for details on how to to be awarded the contract to refur- nity to relaunch the Western Regional link your site to the CSA.
There are plans to dredge the harbor to a depth of 35 ft in order to receive larger cargo vessels and cruise ships
10 CARIBBEAN MARITIME I MAY 2007 PUERTO RICO Jones Act still debated in Puerto Rico
Critics charge shipping on US cargo vessels costs more. Supporters argue shipping on foreign vessels cost as much
By John Collins
In 20 the United States Congress enacted one of the most signifi cant laws regarding Puerto Rico – and 7 years later one provision of it remains a subject of debate. It is called the Merchant Marine Act of 1920 – or Jones Act for short. The voluminous measure is known by most Puerto Ricans for awarding United States of America citizenship to Puerto Ricans who had become subjects of the US as a result of the Spanish-American War in 1898 during which the island had been occupied by the US. Pacifi c. Interestingly, the US Virgin of a strong US Merchant Marine that Another section of the Jones Act, Islands, like the other US possessions could be used in wartime or periods of however, is widely known in shipping in the Pacifi c – American Samoa and national emergencies. They also view and by business people. Its Section the Northern Marianas Islands – are a domestic fl eet as fostering self-reli- 27 restricts, to vessels built and docu- exempt. Over the years there have ance and thus avoiding dependency on mented in the US, the transportation been repeated eff orts in Puerto Rico to foreign operators. That argument was of merchandise between points in the gain exemption from the Jones Act. bolstered following the 9/11 terrorist USA, including its territories and pos- attacks in the US. sessions embraced within the coast- Eff orts for exemption “Eff orts to get Puerto Rico exempted wise laws. The Jones Act applies to all Advocates of exempting Puerto Rico from the Jones Act encountered stiff vessels engaged in US domestic trade, have generally cited the impact of resistance following the 9/11 terror- including US possessions. It therefore higher shipping rates on Jones Act ves- ist attacks,” said Edmundo Rodríguez, applies to all shipping between the US sels and their impact on consumers. In President of Nestor Reyes Customs mainland and Puerto Rico. a recent study, Mohinder Bhatia, of the House Brokers and chairman of the For years, critics have charged that Puerto Rico Management & Economic Transportation Committee of the shipping on US cargo vessels cost Consultants, found that the application Puerto Rico Chamber of Commerce. more. US shipping lines that enjoy the of the Jones Act to Puerto Rico cost “Any changes in the Jones Act would monopoly between the US and Puerto $264 million. be quite diffi cult unless they also Rico counter that shipping on foreign Bhatia estimated that the cost to applied to all the US off shore territories. vessels would cost as much or even each person in Puerto Rico was $14 or I don’t see that happening because the more. $15 per year. whole US national defense climate has The Jones Act also applies to the Defenders of the Jones Act have changed.” states of Alaska and Hawaii as well as often cited US national security consid- Because of Puerto Rico’s location and to the US possession of Guam, in the erations. They also cite the importance its trade interaction, shippers have >
CARIBBEAN MARITIME I MAY 2007 PUERTO RICO
actually figured out ways to utilize both in Puerto Rico. “The Jones Act guaran- beverage concentrates and tuna. The Jones Act carriers and foreign carriers tees that the carriers serving Puerto main export trading partners are the for their clients. Rodríguez pointed out Rico can continue to provide hundreds US (90 per cent), the United Kingdom that 80 per cent of containers coming of good-paying jobs to residents in (1.6 per cent), the Netherlands (1.4 per from the US mainland to Puerto Rico Puerto Rico as well as in the mainland cent) and the Dominican Republic (1.4 routinely return north empty. This is US. This also enhances the security of per cent). because Puerto Rico requires a vast Puerto Rico’s shipping operations and On the other hand, Puerto Rico amount of consumer goods for its provides maritime resources that are imports an estimated $29.1 billion per population of 4 million and additional vital to the national defense. In terms of annum consisting mainly of chemicals, millions of visitors. service, quality and cost, the shipping machinery and equipment, cloth- “Several years ago we would ship services provided to Puerto Rico under ing, food goods, fish and petroleum containers for our clients to the Domin- the Jones Act are outstanding.” products. The major import trading ican Republic on Jones Act vessels and Another carrier in the Puerto Rico partner is the US (55 per cent) followed the charges were routinely $1,500 to route is Horizon Lines, the nation’s by Ireland (23.7 per cent) and Japan 5.4 $2,000 per container,” said Rodríguez. leading Jones Act company, account- (per cent). “Subsequently, a ferry service between ing for 36 per cent of total US marine Indications of the level of develop- ment of Puerto Rico are 1.1 million land telephones and 2.682 million cellular “The US needs a maritime policy phones. It has 32 television stations, 74 AM and 53 FM radio stations, 404 inter- tailored to 21st century needs” net hosts and over 1 million internet users. Mayagüez and Santo Domingo was container shipments between the Twelve years ago there was a big introduced, which cut the cost in half.” mainland US and three non-contiguous debate in Puerto Rico about the impact The ferry operator is a foreign carrier. Jones Act markets: Alaska, Hawaii and of the Jones Act. A leading figure in the When New Orleans was recently Puerto Rico. It has served Puerto Rico country’s shipping industry summed struck by hurricane, President Bush since 1956 when its predecessor, Sea- up the attitude of the skeptics: “There’s exempted it from the Jones Act Land, pioneered the marine container going to be a lot of talk, but when it’s because of the national disaster. But shipping industry. all over and the dust settles, not a thing Bush remains supportive of the Jones Horizon has the largest Jones Act is going to change – there are too many Act while advocating that it should be containership fleet, with 16 vessels and vested interests involved.” adapted to meet modern challenges. some 22,200 containers. Puerto Rico continues to be buffeted “The US needs a maritime policy With one of the most dynamic by the impact of globalization and tailored to 21st century needs,” said economies in the Caribbean, Puerto free trade as it adjusts to the profound Bush. “Programs that have contrib- Rico has a diverse industrial sector changes taking place in the world. As uted to the growth of our domestic that dominates the country’s econ- it seeks to increase its international fleet, such as the Jones Act, should be omy. With a population of 4 million trade, the application of the Jones Act maintained.” on an island of 3,500 square miles, and the continued debate on whether Puerto Rico is one of the most densely it should be amended will undoubt- Jones Act assets populated islands in the Caribbean. Its edly prevail, but any change will Carriers that serve the Puerto Rico gross domestic product is an esti- require a consensus between San Juan route strongly defend the Jones Act mated $74.9 billion – translating into and Washington that most consider and consider its provisions so impor- a per capita figure of $18,725. Its labor unlikely. tant that they often refer to their force of 1.3 million is divided between vessels and land-based equipment as services (including government and ‘Jones Act assets’. transportation) at 77 per cent, manu- One of the principal carriers in the facturing at 20 per cent and agricul- route is Crowley. ture at three per cent. Unemployment John Collins received an Overseas “The Jones Act assures that the is about 12 per cent. Press Club of Puerto Rico Award people of Puerto Rico have a reli- According to the World Factbook, for his in-depth business feature able and competitive ocean shipping Puerto Rico’s exports of $46.9 billion article, ‘The Jones Act: Good or service,” said Roberto Lugo, Crowley’s are dominated by chemicals, electron- Bad?’, which appeared in 1995 in Vice President and General Manager ics, apparel, medical equipment, rum, ‘Caribbean Business’.
12 CARIBBEAN MARITIME I MAY 2007 TRINIDAD & TOBAGO
New man at helm of SATT Haydn Jones was elected Presi- dent of the Shipping Association of Trinidad and Tobago (SATT) at the Association’s 69th Annual General Meeting on March 28. For the past 11 years Mr Jones has been employed at the National Gas Company of Trinidad and Tobago (NGC) where he is Marine Superintendent, Ter- minal Operations at one of NGC’s subsidiary companies, the National Energy Corporation of Trinidad and Efficiency experts will Tobago Ltd (NEC). He is responsible for maintaining and operating the six NEC owned petrochemical terminals work with PLIPDECO at Point Lisas as well as for managing and operating the LABIDCO port at ort Point Lisas in Trinidad ity. This, coupled with their planned La Brea. All of Trinidad and Tobago’s Pexpects to achieve higher levels expansion, can only lead to improved ammonia, methanol, urea and direct of efficiency and productivity efficiencies and best practice which reduced iron products are exported through a new contract with the con- shipping lines, agents, importers and from the NEC’s Point Lisas terminals. sultancy firm SSA Marine, which will consumers will all benefit from.” Mr Jones also sits on several govern- be advising on port operations. SSA also owns and operates one of ment appointed committees on mari- The contract between SSA Marine Port Point Lisas’ main sister ports, Man- time related affairs. and Point Lisas Industrial Port Develop- zanillo International Terminal (MIT), of ment Corporation Ltd (PLIPDECO) came Panama. Since 2002 PLIPDECO has had into effect on March 1, 2007. a formal memorandum of understand- Two logistics and port development ing (MOU) with Manzanillo, one of the experts are being seconded by SSA world’s 50 largest ports. Marine for the initial contract period of The MOU promotes the develop- six months. ment of business and the sharing of technical training and information. It Enhancing provides the two ports with a frame- Capt Rawle Baddaloo, of PLIPDECO, work for co-operation in two main said he expected the relationship with areas: internally, to improve technol- SSA Marine to take Port Point Lisas to a ogy, systems, skills and processes for new level of efficiency and productiv- the benefit of customers; and exter- ity by assisting with port management, nally, to increase business. improving technology and enhancing Both PLIPDECO and MIT are three- Haydn Jones, President of the Shipping the benchmarking against major inter- time winners of the Caribbean Ship- Association of Trinidad and Tobago national ports. ping Association’s prestigious Port of The (then) President of the Shipping the Year Award. Manzanillo won in Association of Trinidad and Tobago 1999, 2000 and 2004 and PLIPDECO in (SATT), Stewart Sankar said: “SATT is 2001, 2002 and 2003. pleased to see the proactive approach The memorandum was signed in taken by PLIPDECO to continue their Fort-de-France, Martinique, at the CSA’s transformation to a world-class facil- 32nd AGM.
CARIBBEAN MARITIME I MAY 2007 13 THE HUMAN FACTOR Port performance and productivity by
By Peter J. Fitt professional people
consider myself a mari- and trained but we were number of ships it services on the job or learns by trial Itime professional. My given the most up-to-date per year. Measuring output and error. Can we honestly Master’s Certificate (FG) measuring equipment and and continually striving to call them professionals if we certifies that I met the cri- navigational aids. increase productivity will have not insisted on basic teria for certification based Today, a 25,000 ton improve the performance of knowledge and skills? on my knowledge and deadweight vessel costs the ship and terminal. Should we invest in skills. I served nine years $30,000 per day at 16 knots supervisor’s education, on vessels moving freight using 15 tons of fuel per day Critical share the knowledge about from one port to another. to progress the passage. The Meet the terminal/shift operating costs with them? I am trained to move voyage consists of passage supervisor. He has 720 Teach them the principles freight at sea, to progress and port time. The former is minutes to utilize in a 12- of logistics and productivity a voyage in the most safe managed by the ship’s staff hour shift. Have we made and cycles and outputs? and effective manner. I was and the latter by the termi- sure that the total minutes Doing things better taught to consider costs by nal and stevedoring staff. are operational time and should be a measured proc- my owners. I learnt to utilize The cost of operating a not non-operational or idle ess, not what we hope to time on passage in the most modern terminal is also in time? Have we told him what achieve. effective manner and contin- the region of $30,000 a day cycles the cranes and lift This is all about port per- trucks are capable of? What formance and productivity Today, a 25,000 dwt vessel costs their capacity is and what is by professional people $30,000 per day at 16 knots the benchmark? Have we told him about using 15 tons of fuel per day basic ship stability, the to progress the passage strength of tank tops and why we have to spread the ually seek ways to increase (another ratio). No, the ship’s load between hatches? Have speed or reduce time and crew does not go home. we told him why we trim the distance. I was in the time They still have to be paid, ship by the stern? Have we management business. fed and housed. The ship taught him about grain space, Our ship was built with still has to be insured and stowage factors, angles of a capacity in tons, a speed paid for. It still costs $30,000 repose and sweat, etc? in knots at a certain fuel a day! The combined cost of Have we provided a consumption per day. These ship and terminal is $60,000 decent office for him to Peter Fitt is a Ship measurements were given a day – twice the cost of the work in with modern output Master and trained in ratios. These are measure- ship at sea – $2,500 an hour. measuring equipment? Have Industrial Engineer who ments, which give a delivery The freight rate charged by we provided radio equip- has spent his career in capacity or output. the shipowner has to cover ment to all key people to co- the ports industry in The voyage was split port and passage time. ordinate activities? Have we southern Africa and between passage time and It is the time manage- taught him how to do a time Canada. He founded the port time. Our primary role ment of the loading/dis- audit, measure cycle times Maritime Institute in was to progress the passage charge operation that will and set objectives to exceed 1985 and developed a from FAOP to EOP in the have the greatest impact benchmarks? Ports College in Canada, most effective manner. We on the freight rate. Terminal The answers are mostly an operating division of were not only well educated utilization depends on the ‘no’. We hope that he learns the Maritime Institute.
14 CARIBBEAN MARITIME I MAY 2007 CARIBBEAN SCHOONER TRADE Is there a future for the Caribbean schooner trade?
very so often there is talk of a possible resurgence in is cargo in Trinidad that he can go and load . . . and instead of Eschooners moving small volumes of cargo between your shipment getting there in two days’ time, it gets there the island states of the Caribbean. in two weeks’ time.” The argument is usually put forward as a solution to the Mr Harding pointed to developments at the Port of Bridg- problems of inter-island shipping costs and the disecono- etown to strengthen his argument that the schooner trade mies of scale inherent in shipping small quantities. was dead. One person who does not see this as a viable or bankable “When the Bridgetown Port was further extended, they solution in today’s world is David Harding*, former President added what is known as the Shallow Draft, particularly for of the Caribbean Shipping Association, who believes that the schooner trade, to move it out of the Careenage. What what was once a thriving Caribbean schooner trade is now has happened in recent times is that there has been a tre- dead without hope of resurrection. mendous fall-off of cargo transiting the Shallow Draft. I think “The schooner trade has had its time,” said Mr Harding. the port would be well advised to have it [the Shallow Draft] “Although there are still some small vessels operating, the used for something that would give a better return,” he said. schooner trade business is dead. What killed it are contain- Mr Harding also gave the thumbs-down to recent calls erisation and the same deepsea services that load for several for a regional ferry service, saying it would only work if the islands.” Caribbean Single Market and Economy (CSME) developed A few schooners still operate, predominantly out of St into the kind of operation that was hoped for. Vincent, as Mr Harding acknowledged. These captain-owned “There is too much hassle for Joe Public to drive his car and operated vessels run fresh fruit and other cargoes into on board a ferry in Barbados and then it has to be inspected the neighbouring islands. by a Customs officer [in St Lucia] and then you have to pass all kinds of warrants. By the time you are freed to take the Insurance premium car from the port in St Lucia, you are ready to come back to However, Mr Harding pointed out that, when a ship from Miami Barbados,” he argued. visited Barbados and was leaving for St Lucia, the Barbadian “A ferry service would work well, but it has to be under manufacturers could put their cargoes securely, safely and with arrangements similar to those that are set up for Cricket low insurance rates in this vessel and ship them to Castries. World Cup where there is a free flow within the Region. That He went on: “Before, you ran the risk of insurance compa- is what is required, and I think it will come, but the ferry serv- nies saying this schooner is so many years old, the premium ice will not work well for the operator until that day.” is so high, and you ran the risk that the owner-captain might decide he has your cargo on board but he just got a call there *See profile of David Harding on Page 28
CARIBBEAN MARITIME I MAY 2007 15
COVER STORY - JAMAICA
n the year Jamaica gained its Independence in 1962, Ia major development project was begun that would change the face of Kingston forever. Dredging operations were started in the northwest section of Kingston Harbor with some 750 hectares (300 acres) being Kingston reclaimed from the sea. It was on this new land space, Newport West, that Jamaica subsequently established one of the largest and most modern port facilities in the Caribbean Region. By December of this year, the Port Authority of Jamaica will expanding have completed Phase 5 of its ongoing development of the Port of Kingston and Kingston Container Terminal (KCT) will have boosted its rated capacity by over 100 per cent in two years. Phase 4, which previously expanded capacity by 25 per beyond cent, was completed as recently as September 2005. Staggering and dramatic KCT’s rate of expansion has been staggering, while the recognition increase in business handled by the terminal has been dra- matic to say the least. When the terminal started in 1975 it received 59 vessel calls from two shipping lines and handled just 12,113 teu. By 2006 it was handling over 1.5 million teu and had ‘maxed out’ its rated capacity. >
CARIBBEAN MARITIME I MAY 2007 17 COVER STORY - JAMAICA
Even as work proceeded on Phase 4, Projected throughput for the 2006/7 the port authority realized that, by the fiscal year is 2,265,288 teu. time it was completed in September In just over 40 years the Port of 2005, all the additional capacity would Kingston had expanded almost beyond be fully utilized. recognition. In December 2005 the port author- APM Terminals, which manages KCT, ity entered an agreement with Maersk, reports that the terminal has consist- the world’s largest container shipping ently been among the top 10 of its 39 line, to make Kingston its regional hub. container terminals worldwide. Under this agreement Maersk was expected to generate some 600,000 teu Phase 5 of additional throughput at KCT in 2006. The port authority expects that greater Total vessel calls to the terminal efficiency and productivity in conjunc- in the year ending March 31, 2006 tion with the 3.2 million teu capacity increased by 259 resulting in a 30 per resulting from Phase 5 will help push cent increase in container moves to the Kingston up the league table from its terminal. current 55th ranking among the world’s This was the seventh consecu- top 100 ports. tive year of increased activity at the Phase 5 will boost the rated capacity terminal. Transshipment continued of KCT’s transshipment facilities from to dominate, accounting for 918,949 1.5 million to 3.2 million teu. moves (1,507,076 teu) or 88.6 per cent The heavy equipment has already of the 1,036,706 moves (1,679,464 teu) begun to arrive on site. On January 24 handled during the fiscal year ended and 25 the port authority took delivery March 31, 2006. of the first two of six 65 tonne super post-panamax cranes and these are now in service. The remaining four cranes Containers handled at KCT by major lines 2005/2006 are due to arrive by September from the Chinese manufacturer Shanghai Zhen- Noratia - 15,297 - 1% hua Port Machinery Company Ltd. Ham. Sud - 40,091 - 4% Compania - 53,696 - 5% KCT will then have: Maersk P&O - 83,344 - 8% Other - 35,653 - 3% • 19 ship-to-shore gantry cranes (including 14 super post-panamax cranes • 74 straddle carriers Hapag-Lloyd - 120,993 - 12% Noratia Compania • 14 empty container stackers Other • 1,392 reefer plugs Zim • 100 hectares of paved yard space CMA/CGM Hapag-Lloyd and open storage. Maersk P&O A further 30 hectares will be pre- Ham. Sud pared and brought on stream by 2008 CMA/CGM - 236,100 - 23% in line with demand. Zim - 451,550 - 44% The port authority expects that by 2009 growing demand will result in full utilization of the additional capacity provided in Phase 5. In fact, plans have already been drawn up for the next phase of expansion after Phase 5. These plans call for further expansion of Kingston’s transshipment capability from 3.2 million to 5.2 million teu. That development, which will utilize lands at Fort Augusta, a historical landmark, is expected to take place in three phases, with Phase 1 being completed in 2011.
18 CARIBBEAN MARITIME I MAY 2007 COVER STORY - JAMAICA
Kingston history How Kingston developed its world-class container terminal
The first facility in the Caribbean Region dedicated to the transship- ment market was Kingston Con- tainer Terminal (KCT), which opened for business in June 1975. The Port Authority of Jamaica was Jamaica works closely with instructed to develop the facilities after two private sector companies had US over port security declined an invitation from the Jamai- can government to develop a transship- Kingston is now one of the safest, tronically controls and regulates access ment terminal at Newport West. The most secure ports in the hemisphere to all port areas port authority began development of thanks to decisive action by some of • Strategically placed underwater the Kingston transshipment port with Jamaica’s principal maritime organi- surveillance cameras to inspect the hulls borrowed capital of US$ 14 million. sations and other interested parties. of ships entering and leaving the ports At its opening, KCT consisted of the In the 1970s Kingston had security • Coastguard patrols to enforce the North Terminal, with the following issues that created untold problems for sterile area around cruise ships as well features: the people of Jamaica. Illicit export of as providing waterside surveillance of narcotics created a nightmare for the vessels at dock. Berth – 640 meters (2,100 ft) government, the port authority and the Shipping Association of Jamaica. ISPS Code Terminal yard – 17 hectares (42 acres) The Shipping Association responded The main ports of Jamaica, including aggressively, however, and today the KCT, were among the first in the world Cranes – two panamax ship-to- outstanding work performed by Secu- to be certified under the International shore gantries rity Administrators Ltd and the capital Maritime Organization’s International investment of the port authority have Ship and Port Facility Security (ISPS) Capacity – 400,000 teu. paid off. Code – well before the stipulated In the wake of 9/11, the port author- deadline of July 1, 2004. The Jamaican In its first year of operation the ity installed state-of-the-art security government made the port authority terminal received 59 ship calls from two systems at all the public ports under its responsible for reorganizing port secu- shipping lines and handled 12,113 teu. charge. At Kingston Container Termi- rity to comply with the ISPS Code. In 1979 KCT received 559 ship calls nal, the upgraded security system has In June 2006 Jamaica and the United from four shipping lines. Throughput modern technology that includes: States signed a declaration of principles was 147,061 teu, an increase of 1,114 per • Mobile X-ray systems deployed on relating to the US Container Security cent over 1975. the ports of Kingston for inspection of Initiative. Through this program, signa- In the 1980s, thanks to a big mar- containers, bulk and refrigerated cargo tory countries will have goods being keting effort by the port authority, • CCTV surveillance systems for 24- shipped to the US pre-cleared by US spearheaded by the Hon Noel Hylton, hour monitoring of the ports’ perim- Customs at designated ports in those Kingston Container Terminal attracted eter and inner areas countries, so that they enter the US as major shipping lines such as Ever- • An access control system that elec- domestic cargo. > green. >
CARIBBEAN MARITIME I MAY 2007 19 COVER STORY - JAMAICA
Port security continued • To establish a framework for co- operation between the US Department The agreement, signed by represent- of Energy and Jamaica Customs to atives of US Customs and Border Protec- prevent illicit trafficking in nuclear and tion (CBP), the US Department of Energy other radioactive material. and Jamaica’s Ministry of Finance and Since the Declaration of Principles Planning and the port authority, allows between Jamaica and the US relating for US Customs officers to be posted at to the US Container Security Initiative local ports as agreed by the American program was signed in June last year, and Jamaican authorities. These US there has been a series of meetings Customs officers will follow Jamaica Cus- between the port authority, Jamaica and refurbished to provide a base for toms guidelines under the supervision Customs and Jamaican security officials the American CSI personnel. of the US Ambassador in Jamaica. They and teams representing US Homeland A new team of representatives from will co-operate with Jamaica Customs Security, Customs & Border Patrol and the US arrived in Jamaica in Febru- to identify, screen and facilitate the seal- other federal agencies. The discussions ary to do the groundwork before the ing of high-risk cargo containers using were to work out the details of the pro- actual program. They will be there until inspection equipment approved by the gram leading to the commencement August 2007. World Customs Organization. of operations by Jamaica under the CSI In addition to training of personnel The main aims of the agreement over programme. for the new program, other activities the Container Security Initiative are: include the building of profiles on the • To strengthen bilateral Customs New Customs building movement of cargo relating, among co-operation by exchanging informa- Arrangements have been made for other factors, to shipping lines, coun- tion and working closely to ensure that the stationing of officers from the US tries of production, ports of origin and identification, screening and sealing and Jamaica under the CSI program. destination and frequency of ship- of high-risk containers is carried out Construction has begun of a new build- ments. This involves close collaboration swiftly through the use of modern ing for Jamaican Customs officers and with Customs and security officials in inspection equipment another building is being renovated other countries.
Kingston Container Terminal was one of the first port facilities in the world to be certified under the ISPS Code.
20 CARIBBEAN MARITIME I MAY 2007 COVER STORY - JAMAICA
Kingston history continued
There was also a project to improve New logistics center the reliability of the island’s naviga- tional aids serving the growing number of ships calling at Jamaica’s ports. The for Kingston power source for these navaids was upgraded from gas to solar. The Jamaica International Free Zone nity has been provided to re-establish Development Ltd (JIFZDL) welcomed the free zone on a more modern basis. In the 1990s its first client in May 2006 in the form Jamaica’s Minister of Transport, The first major expansion of Kingston of Kingston Logistics Center Ltd. Robert Pickersgill, said the distribution Container Terminal, KCT Phase 2, In a joint venture between the Port hub capabilities being established by between 1994 and 1996, involved the Authority of Jamaica (75 per cent) and the port authority were modeled on construction of the new South Terminal Zim Integrated Shipping Services Ltd existing facilities in Dubai, Panama and on lands known as Gordon Cay. At the (25 per cent), the free zone organisa- Curaçao with modern innovations. end of the project, the KCT had: tion – which is a subsidiary of the port Enterprises operating in the distri- authority – acquired a property at bution hub will be involved mainly in Berthing – 1,220 meters (4,003 ft) Newport West from Cable & Wireless stripping, repackaging, assembly and Jamaica Ltd redistribution of goods. The Minister Cranes – 10 ship-shore gantries (includ- The start-up of operations by Zim believes there will also be scope for ing five post panamax) was seen as a first step towards real- light manufacturing. The distribution izing the port authority’s – and espe- hub operations are being integrated Terminal yard – 54 hectares (133 acres) cially Kingston’s – ambition to become with the Airports Authority of Jamaica. a distribution hub for the Americas – or, Straddle carriers – 38 as the port authority termed it, “the Hub port Dubai of the Caribbean”. “We believe that the prospects for the Tugs – two Kingston Logistics Center Ltd (KLCL) success of the distribution hub are is a joint venture between Zim and bright, because it is being facilitated Capacity – 800,000 teu Jamaica Fruit & Shipping Ltd and forms by the development of the Kingston an integral part of Zim’s ports and Container Terminal into a hub port with During 1995 and 1996 the ship chan- global logistics network. The logistics the greatest transportation system in nel and basin of Kingston Harbour were center has leased the Newport West the Region,” said Mr Pickersgill. dredged to a depth of 13.0 meters (42.7 facility from JIFZDL. He said three Chinese companies ft) to accommodate larger vessels. Since 1998 KCT has been operating “We believe that the prospects for the 24 hours a day, all year round, with a flexible working week – the standard success of the distribution hub are bright” for the industry internationally. The port has enjoyed relative industrial sta- KLCL will be providing various serv- were already following in Zim’s wake bility for nearly 30 years and is now one ices, including: and had registered to commence of the most stable ports in the world. • Consolidation and deconsolidation operations at the distribution hub in of shipments Kingston in the near future. In the 2000s • Bonded warehousing The Minister said the development Another major expansion of Kingston • International distribution of goods of a major distribution hub in Kingston Container Terminal, KCT Phase 3, was on behalf of clients. would underline Jamaica’s determina- undertaken between 1999 and 2001 at When the port authority established tion to make a niche for itself in the a cost of J$ 3 billion. This involved: the Kingston Transshipment Terminal shipping industry and to reap the in 1974, it also provided a free zone to benefits of participation in interna- Berth expansion at South Terminal deal with light manufacturing and dis- tional shipping. It would also provide – 542 meters (1,778 ft) tribution of goods. Expectations in this an additional platform for Jamaican regard were never realized, but with and other Caribbean business interests Paved terminal area – 11 hectares (27 acres) the development of the transshipment to market their goods, both regionally center into a regional hub, an opportu- and internationally. Dredging of berth face at South Termi- nal to a depth of 14.0 meters (46 ft) >
CARIBBEAN MARITIME I MAY 2007 21
COVER STORY - JAMAICA
KWL continues to expand Kingston history continued Acquisition of four super post-panamax cranes, 12 straddle carriers; four trucks and improve its facilities and six multi-trailer Systems
Confident in its ability to pro- This development resulted in addi- vide premium services, Kingston tional capacity of 400,000 teu. Wharves Limited has embarked on a In 2001 the East Channel from redevelopment project that involves Rackham Cay to Port Royal Point was the complete rebuilding of berths dredged to a depth of 18.0 meters (59 Nos 8 and 9. ft) and the area from Port Royal Point When this is complete in July 2007, to the basin was dredged to a depth > the draft at these berths will have been of 14.0 meters (45.9 ft). KCT became the increased from 10 meters to 13 meters. largest transshipment terminal in the This will allow KWL to handle the most Region and is ranked 56th among the modern vessels afloat, enabling the world’s top 100 ports (source: Contain- company to further develop the trans- erisation International). shipment side of its business. Grantley Stephenson picks up the 2005 – KCT Phase 4 Transshipment traffic has more than coveted Multipurpose Port Award on quadrupled, from 11,223 moves in 2003 behalf of Kingston Wharves from the KCT Phase 4 involved a redevelop- to 46,318 in 2006. (see below) CSA’s Corah Ann Robertson-Sylvester ment of the berthing at the North KWL has been a fixture on the King- Terminal, paving of land at the North ston waterfront since 1945 and there drive up efficiency. Within two years, as a Terminal, acquisition of four new cranes have been many changes in its opera- result of these investments, productivity and extension of berthing at the South tions over this period. In 2004 the com- levels increased from an average of eight Terminal. New facilities included: pany’s revenue base was enhanced by moves an hour in 2004 to a current aver- the introduction of stevedoring services. age of 22 moves. Berthing – 1,835 meters (6,020 ft) By 2006 these services accounted for about 20 per cent of KWL’s total revenue. Achievements Depth alongside: KWL invested about US$ 10 million Small wonder that KWL’s achievements - North Terminal 15.24 meters (50 ft) over two years in cranes, stackers and in 2005 have been recognized by the associated equipment to improve port Caribbean Shipping Association. The - South Terminal 14.0 meters (46 ft) efficiency. CSA’s coveted Caribbean Port of the The company also placed an emphasis Year – Multipurpose Port Award was Reefer plugs – 694 on information technology by upgrad- presented to KWL at the Association’s ing terminal and planning software and 36th annual banquet in Panama City on Terminal yard – 91 hectares (225 acres) introducing other enhancements such as October 17, 2006. a port community system and bar-coding KWL’s growth over the past three years Cranes – 13 (eight super post panamax of vehicular cargo. This has all helped to has been due in no small part to collabo- and five post-panamax) ration with its next-door neighbour, King- KWL - Transshipment ston Container Terminal (KCT), a dedi- Straddle carriers – 50 cated transshipment terminal. Vessels moves 2002 - 2006 calling at KCT are unable to serve smaller Capacity – 1.5 million teu. Caribbean ports directly by feeder serv- 50,000 ices, and KWL has been able to capitalize In 2004 KCT handled 1,219,267 teu 40,000 on this by serving these ports. from 18 shipping lines and had 1,275
30,000 The company intends to move its ship calls from mega-sized vessels. expansion plans forward with more In the 2005/2006 fiscal year, actual 20,000 redevelopment of its facilities in the throughput at the terminal exceeded
10,000 near future. This will cost about US$ 75 the 1.5 million teu rated capacity with million including new equipment to 1,609,522 teu being handled from more 2002 2003 2004 2005 2006 serve the expanded facility. than 1,600 ship calls.
CARIBBEAN MARITIME I MAY 2007 23 COVER STORY - JAMAICA
Jamaicans have been trained to be multi-skilled
Vote of confidence in leadership Members of the Shipping Associa- tion of Jamaica (SAJ) have under- lined their confidence in Michael Bernard as President. At the Association’s 68th Annual General Meeting in December 2006 he was returned for his second consecu- tive term of office. In fact, the membership expressed total confidence in the directors by returning the entire SAJ directorate ‘en bloc’. Earlier, members of the Caribbean Shipping Association in Group A had Getting the best expressed their confidence in the leadership qualities of Mike Bernard by electing him a representative of Group A to the CSA’s General Council. out of Kingston’s human resources
A key role in helping the Port of nology, the SAJ has used its training Kingston and its personnel to initiatives to keep the Port of Kingston develop and modernize is being supplied with the skills it needs. played by the Shipping Association of Jamaica under the continuing Training and employment leadership of its President, Mike A milestone was reached in late 2005 Michael Bernard, President of the Bernard. when the Port Authority of Jamaica Shipping Association of Jamaica The SAJ is mainly responsible for acquired 500,000 additional container providing the port with its highly moves into Kingston via Maersk Ship- skilled stevedore workforce. ping Line. This led the SAJ to resume As one of the Region’s largest employing stevedores in the casual national shipping associations, the SAJ category. From November 2005 to Sep- has trained and developed Jamaican tember 2006 the Association recruited human resources in the shipping indus- and trained 139 stevedores. This was try for over 60 years. supplemented in October 2006 by the It was the SAJ that trained Jamaicans employment of 10 substitute winch to operate in new skill areas such as operators in response to an increase in operation of equipment and co-ordina- cement shipments at Kingston Wharves. tion of stevedoring. And with ever-con- Over the past year the SAJ has tinuing advances and changes in tech- invested heavily in development and
24 CARIBBEAN MARITIME I MAY 2007 COVER STORY - JAMAICA
training of personnel. An intensive standards so that they can respond to training program has provided the port changes in global shipping. with stevedores who are trained as straddle carrier operators, gantry crane Foreign language classes operators, stevedore co-ordinators and In keeping with its mandate and long fork-lift operators. Today, stevedores history of training and developing in Kingston are multi-skilled personnel Jamaica’s human resources in the capable of performing a range of tasks shipping industry, the SAJ has begun a on a regular basis. project to make Jamaicans working in In addition, the SAJ has begun the shipping industry multilingual. developing a certification program for “We live in a global village and ship- The SAJ has been in the forefront of stevedores in a project spearheaded ping links the various communities,” efforts to assist these poverty-stricken by the Association with the assist- said Mike Bernard. communities. It has maintained a ance of Jamaica’s Human Employment In July 2006 the Association took the number of welfare projects, largely in health, education and social welfare, as “We live in a global village and shipping well as providing employment and train- ing for many who live in these districts. links the various communities” However, other problems have affected the shipping community, specifically, and Resource Training (HEART) Trust first steps towards establishing a multi- employees of companies located in and the National Vocational Training lingual steps industry when it sent the Newport West and their customers who Department. (see footnote) first batch of employees on a 12-week must visit from time to time. A technical team made up of rep- Spanish course under the care of an The answer, as Mike Bernard sees resentatives from the SAJ, HEART and instructor from the Venezuelan institute. it, is to transform Newport West into a other relevant agencies completed the Thirty students took part in this pilot gated industrial park with controls and competency standards for Level 1 of project. As a result of its success, the systems to protect the port community, the program and then started work on SAJ plans to continue this programme making the area safer and more secure. Level 2, which is expected to be com- in 2007 and is looking to expand the “We have received widespread pleted early in 2007. project to include port workers. verbal support of the project and are Mike Bernard says the SAJ wants to In reviewing the achievements of now in the process of obtaining the go on providing training and develop- 2006 and the programs and challenges written consent of the owners and ten- ment for port workers to the highest of the current year, the SAJ President ants in the community,” he said. “Our International Labour Organization (ILO) said: “There are still some challenges lawyers advise that this is a prerequisite ahead of us, but I have confidence for proceeding to the next level of actu- that as an Association we will continue ally getting approval of the scheme to create solutions that deepen and from the municipality, the Kingston strengthen the SAJ’s relevance to our and St Andrew Corporation.” industry into the future.” Once completed, this will allow the Port of Kingston to be developed fur- Newport West Industrial Park ther, making it not only one of the most One program now on the table that is technologically advanced port systems dear to the President’s heart is his own in the Region but also one of the most initiative to rezone the Newport West pleasant places in which to work and community into a gated industrial park. do business. Newport West is the industrial area on which the Port of Kingston was built. The Human Employment and Constructed largely on reclaimed land, Resource Training (HEART) Trust the port is next-door to some of the most was established by Government impoverished and densely populated in 1982. The Trust is financed districts in Jamaica. This reality has cre- through a compulsory three per ated many social and economic prob- cent payroll deduction levied on lems similar to those found in most urban qualified private sector firms, centres where a major industrial network supplemented by assistance from lies next to a huge area of poverty. international partners.
CARIBBEAN MARITIME I MAY 2007 25 COVER STORY - JAMAICA Pioneering fee recovery specialist broadens its range of services
The success story of a Kingston-based company that to outsource several services princi- pally through the shipping agent,” said pioneered the collection of container demurrage and Ms Yeo. “Lines were met with a specific detention charges in the English-speaking Caribbean challenge in the Jamaican market of containers not being cleared or is entering a new chapter returned within the allotted free time, with the added difficulty of collecting The container charge collecting of the region’s institutions to operate demurrage and detention charges that company Assessment Recoveries on a truly global level. The company, were incurred. Limited (ARL), based in Kingston, which is responsible for the central- “This problem was not exclusive to Jamaica, is launching a chassis rental ized collection of container demurrage Jamaica, as lines serving the Dominican collection service that will expand and detention charges, opened for Republic and other Caribbean coun- its client base and boost its revenue business in Kingston in August 2004 tries also found that inefficient use opportunities. and has brought greater efficiencies to of the containers resulted in greater The service was due to be launched the market and more effective use of costs – and these costs needed to be in May 2007 following a year of discus- equipment. recovered.” sion and development. Initially ARL will Traditionally, the line Agent was contract with logistics companies, col- Beneficial partnerships responsible for collecting demurrage lecting charges directly from trucking Beneficial partnerships have been and detention. But the Agent needed companies. formed with major shipping lines, local to prioritize, and often the focus rested ARL’s General Manager, Frances agents and terminal operators. Chal- on freight collection, seeking new Yeo, said this step had been taken in lenges have been met head-on as ARL cargo and serving the customer base response to a need that had been high- has put customer service at the core – the areas that brought in 95 per cent lighted in the equipment support seg- of its operations, listening to its clients of income. Across the industry, it is ment of the wider shipping industry. and meeting their needs. A study of the agreed that freight collection is easy to ARL is recognized as the company that genesis of this company, its develop- administer. brought a significant measure of order ment over the past two and a half years Demurrage and, to an even greater to the management of equipment in and its initiatives to launch the new degree, detention are hard to admin- the Jamaican shipping industry. service demonstrates that shipping ister because the process involves ARL has been one of the success offers myriad opportunities for so- tracking the container movement and stories of the Caribbean shipping called developing nations. collecting fees after the equipment has industry, demonstrating the capacity “Globally, shipping lines have sought been returned empty. Unpaid deten- tion charges were written off annually. “Lines were met with The need for cost recovery drove the lines to explore the possibility of a specific challenge in outsourcing demurrage and detention the Jamaican market of collection. A group of local shipping containers not being cleared agents led by Grantley Stephenson, or returned within the currently chairman and CEO of Kingston allotted free time, with the Wharves – who at the time was manag- added difficulty of collecting ing director of Seaboard Jamaica and demurrage and detention President of the Shipping Association charges that were incurred” of Jamaica (SAJ) – quickly identified the business opportunity and pursued the Frances Yeo, General formation of the first demurrage and Manager, ARL detention collection company in the English-speaking Caribbean.
26 CARIBBEAN MARITIME I MAY 2007 COVER STORY - JAMAICA
Under the stewardship of its General Manager, Trevor Riley, the SAJ served as the incubator for this project. Time was devoted to financial projections, care- fully negotiating the support of all lines and developing proprietary software as a base for the operations. Nevertheless, the project stalled. There were doubts over whether it would be as success- ful as hoped. Many people doubted that a demurrage collection company could work in Jamaica. Some believed it would have a negative impact on business and felt that the risk was not worth the effort. Opportunity “ARL was one of my deliverables as the new General Manager of the SAJ,” said Trevor Riley. “The groundwork was laid, SAJ had invested in the start- up through a loan agreement, the opportunity was clear and the timing was right. I needed to ensure that the Container deumurrage and detention opportunity would not be missed.” charges are collected by ARL Frances Yeo, a trained project manager with a history of successes in marketing, project development, promptly by small to mid range con- have expired, charges are applicable. implementation and general manage- signees. An ongoing process of public edu- ment, was recruited in May 2004 to pull Ms Yeo said: “We offer a tailor-made cation has been essential in turning the project together. Three months system which we aim daily to make around the resistance. later ARL was in business. seamless. We are determined to be Ms Yeo said: “There are factors ARL now collects on behalf of 11 accurate in the calculation and applica- beyond the control of the consignee shipping lines. Before lines retained tion of charges and to provide data and that influence the turnaround time of the services of ARL there were claims information to clients while maintain- equipment. The consignees are encour- that the problem of collection rested ing the confidentiality that is required aged to identify entities responsible for with detention and not demurrage. The to ensure the confidence is maintained. delays and press for change, demand numbers show that, with the introduc- It is more than the software.” efficiency.” tion of an independent company, both demurrage and detention collections have improved. Increases in demurrage “We offer a tailor-made system which collections in some cases surpassed we aim daily to make seamless” 200 per cent. Other lines saw smaller but notice- Some consignees and brokers have With a team dedicated to the able increases as waivers of charges resisted the introduction of ARL to the monitoring of container movement, were now more controlled and pay- market. Their reluctance to accept the verifying information, explaining ments had to be made before the responsibility for charges is a result processes and willingly responding to equipment left the port. Detention, of regulations not being enforced in the needs of lines, Agents, consignees which many had deemed uncollect- the pre-ARL era. ARL operates on the and brokers, ARL will achieve its goals. able, began to flow in steadily, with premise that all charges against the Equipment will be returned in a timely month-on-month increases. The cargo are the responsibility of the con- fashion. This will result in cost recovery predictions of steadily dwindling col- signee cited on the master bill of lading. for the lines as well as satisfying share- lections have not materialized. And Furthermore, if the container is not holders, who will benefit from solid containers are being returned more available to the line for use and free days returns on their investment.
CARIBBEAN MARITIME I MAY 2007 27 NEWSMAKER
David Harding An authority on maritime transport
By Charles Harding
avid Harding’s passion are in,” he explained. “Even Dfor shipping is equal to before I became President his fervor for organization, [of the CSA] I allowed the development training and opportunity for training to innovation. His is a burn- ensure that the level of serv- ing desire, a passion, to do ice would not be compro- what he believes is good mised if I am not around. and right. “It worked. And I think it At his Bridgetown-based can work for any organiza- company, Sea Freight Agen- tion. One must recognize cies (Barbados) Ltd, he has that, even if you are the CEO, management team. Right tion Manager at the Bridget- molded a creative workforce you are not playing a game through this organization own office of Ocean Trading and equipped them with of cards where you hold they are good people,” he UK Ltd. skills to manage maritime them close to your chest. said. “The agency’s business His rise through the ranks change and development. You sit with people and you is done on relationships and of the maritime industry was And he has encouraged let them know why they are trust and the relationships meteoric. He served as Master them to believe in them- doing what they are doing.” we have built with our over- Stevedore in training with H.V. selves, establish trust and seas principals have allowed King Stevedoring Ltd and Ste- build lasting relationships Professional style them to express their views vedoring Manager and senior with his company’s overseas Mr Harding’s style of on our staff. They conclude director of the Niblock Group principals. management has had what that when David Harding of Companies, a Barbados Mr Harding is Chairman he defines as ‘a knock-on is not here, it is business as concern, before founding Sea and Managing Director of effect’. He speaks highly usual.” Freight Agencies (Barbados) Sea Freight Agencies and of his team at Sea Freight Mr Harding is an authority Ltd in 1988. was President of the Carib- Agencies as being profes- in the Caribbean on mari- Mr Harding has had bean Shipping Association sional with constantly time transport. He entered extensive training in the from 1997 to 2000. upgraded skills. He says the world of shipping as 20-year period between He did not want a com- this is why he did not lose a a clerk with DaCosta and 1972 and 1992 in all aspects pany where employees felt minute’s sleep about what Musson Ltd, part of the of stevedoring with various they were only there for the was happening at home Barbados Shipping & Trad- shipping lines including pay cheques without being while he was traveling ing conglomerate, in 1966, Geest, Ivaran and Saguenay. inspired to use initiative and abroad on CSA business. It the year Barbados gained This included setting and to innovate. also explains why he talks its Independence. Three rigging preventors and guys, “One of the things I made about retirement when years later he was appointed slinging heavy lifts, rigging sure that we did was to he turns 60 – in two years Operation Manager at the snatch blocks and single embrace the notion that – without worrying about Barbados office of Bookers derricks lifts and under- everybody on my team must succession. Shipping, of Liverpool, and standing the principles of understand the business we “We do have a great in 1971 took over as Opera- safety.
28 CARIBBEAN MARITIME I MAY 2007 NEWSMAKER
Between 1987 and 1992 “So whatever bad has the nine years he spent with a big ship today costs about he was hired by a United occurred then you can Barbados Port Authority had US$ 30,000 or US$ 40,000 per States-based shipping line, blame me. Whatever good, I been a significant feature of day to operate. You cannot Antilles Lloyd, to work as would accept the credit,” he his own development in the keep those ships at anchor port captain on its vessels remarked. shipping industry. anywhere. They must get in Trinidad, where general He was a director of the “It allowed me to rec- in, they must discharge with cargo and heavy lifts were state-owned Barbados ognize the problems that despatch and get out.” discharged at Galeota Point Port Authority during the happen and can occur Mr Harding treasures his for oil drilling operations. political administrations of ashore, as well as the prob- memories of the years he During this period he per- the Barbados Labour Party lems aboard ships. So I have spent on the CSA’s general sonally supervised some 80 between 1981 and 1986 and a healthy respect for the chal- council, from 1991 to 2003. vessel calls to Galeota Point the Democratic Labour Party and Point Fortin with an in 1989 to 1994 – a reflection aggregate tonnage of about more of his maritime and “Whatever bad has occurred then 520,000 tonnes of breakbulk port management knowl- you can blame me. Whatever OWS and heavy lifts. edge, ability and expertise He said: “I have been than his political neutrality. good, I would accept the credit” exposed to several train- Mr Harding was a director ing modules through the of the board that presided lenges that port managers Under his watch as CSA Pres- Caribbean Shipping Associa- over the rationalisation of face and equally a healthy ident, from 1997 to 2000, he tion, Barbados Port Inc, the the Bridgetown Port in 1991 respect for the problems was able to bring together Geest Line and Ivaran Lines to 1992. shipping lines face when the Region’s shipping sector on cargo handling, port “I was one of the archi- ports are congested and they – gathered in the CSA – and management and I am listed tects of the rationalized port, can’t get their ships berthed. the Association of Caribbean by the Caribbean Shipping along with the then and still “We talk about big ships – States. > Association as a resource current CEO Everton Walters specialist in stevedoring that and the late Edmund Har- can assist members within rison, who was the chairman the Association.” at the time. Since then Barba- dos has won the Port of the Knowledge shared Year award five or six times.” He also describes himself He went on: “It does not as a student of ‘Thomas mean that the Barbados port Stowage’, the bible of cargo does not have problems. characteristics for safe and There is no port without secure handling, stowing problems.” In this regard, and discharging. It is that he commended the Barba- knowledge and over 40 years dos Workers’ Union (BWU) of experience that he has for recognizing the need brought and shared with the and responding to efforts various national and regional to rationalize the Port of maritime organizations and Bridgetown. shipping councils and com- “They [the union] part- mittees with which he has nered with us in under- been associated. He has been standing that, for Barbados the longest serving President and the Barbados economy of the Shipping Association to grow, there must be some of Barbados, spawned by the changes. From a national Barbados Employers’ Con- point of view that is the federation in 1981. He served single biggest achievement three terms as President and that I can lend my name to.” was at the helm of the 25- Apart from the port’s year-old shipping group for rationalisation, the ship- 11 of those years. ping agent admitted that
CARIBBEAN MARITIME I MAY 2007 29
NEWSMAKER
Barbados in 10 years.” director of several of his But he does fi nd time for companies. “I make the deci- Celia, his wife of 34 years, sions and call the shots. She who shares his passion for is happy just to point out to gardening. me when I am going wrong,” “We share a lot of time he admitted. Christina is together. She has been one Sales Manager at Sea Freight of my strengths in this busi- Agencies while Karen, the ness. She understood very older daughter, is in the early my days of running the Accounting department. docks and of stevedoring in Although the Shipping the port meant that I had to Agent, who turns 58 on Sep- leave the house at 5.30 in the tember 20 this year, is plan- morning and that I may not ning for early retirement in “Now we have a relation- Its Harbor Cold Store division be back until 11.30 at night. two years’ time, he has made ship that allows us to use is a sub-agent of the Barbados As a matter of fact, in the early it reassuringly clear that “if their platform and allows Port Inc, handling cold stor- days of my two daughters, it comes to pass that I go at them to use our platform age on behalf of BPI. Karen and Christina, I don’t 60 as managing director, I when we speak about mari- Mr Harding is Honorary think they really recognized would still not be far away. time matters. That organi- Consul in Barbados for Chile. that I was the father. They saw I will have a small offi ce in zation [the ACS] is broader Does he have time for me so seldom. But Celia pro- my home, or somewhere on than Caricom because the recreation? The question vided me with the support. the south coast where I live. ACS includes Latin America produced his trademark I never had to worry about But I will be in contact – I will and therefore broadens our heart-warming smile. what happened at home.” retain the chairmanship of own platform,” he said. “The days of taking His wife is also a silent the Company.” four weeks’ holiday and A confession all that are long passed,” Although he confesses that he quipped. “I don’t think “shipping is in my heart I will see anything like that ADVERTISING IN forever”, there is much more until I retire. But what I have to David Harding, a husband, learnt to do over the years CARIBBEAN MARITIME father and grandfather, than is, whenever I travel on CSA AGM Issue maritime trade, chairmanship business, whether it is the and directorship of several Caribbean Shipping Asso- The next edition of “Caribbean shipping entities includ- ciation business of my own ing Maritime Management organisation’s business, my Maritime” will be published to Services Ltd, Fast Transit wife accompanies me and for coincide with the CSA AGM that is Shipping Ltd and the Allied two or three days after the being held in the Dominican Republic Freight Group Inc compris- business has been concluded ing Windward Agencies Ltd, I have a vacation. 15-17 October 2007. Freight Handling Services “If I am in Florida, I’d go Ltd and Ocean Air Transport down to the Florida Keys and To advertise, contact Lester Powell Services. He is chairman of do some fi shing, which I love. at Land & Marine Publications Robulk Agencies Inc, a direc- If we’re in Grand Cayman, I’d on +44 (0)1206 752902 or e-mail: tor of Norton Lilly (Barbados) hang out on the beach like [email protected] Ltd and manages four large tourists.” He also made the off shore companies for Cana- point that, for him, there was da’s Potash Corporation, the no longer time to enjoy the world’s largest fertilizer group. fi ne beaches of Barbados. Potash owns PCS Nitrogen in “People think I am crazy – Trinidad and has interests in that I live in Barbados with the Brazil, Chile and China. He is most beautiful beaches – but also a director of the Barba- I tell them I work in Barbados. dian ice cream company BICO. I have not been on a beach in
CARIBBEAN MARITIME I MAY 2007 31 GUADELOUPE
Guadeloupe well on the way to modernization
he French island of Guadeloupe data interchange (EDI) platform Ademar, Thas made signifi cant strides which manages the import and export towards the development of a of goods in Guadeloupe, co-ordinating paperless port community system. all port community computer software “Our community data processing including the Customs information department has now reached cruising technology system and the container speed,” said Vance Saingolet, President handling system ICARE. of Guadeloupe’s Maritime and Port Union (UMEP). Operating well In the shipping industry – and par- Mr Saingolet said the entire system had ticularly in port operations – no news is been operating well, assuring the opti- good news and, according to Mr Sain- mal safety, facilitation and traceability golet, “from the economic and social of the movement of goods in and out point of view 2006 was a relatively calm of Guadeloupe. year for maritime and port activities” in He said this information system the small French territory. had enhanced the strategic position Asked to give his perspective of Guadeloupe within its Caribbean on port operations in 2006 he said: environment and would contribute to “Merchandise and cruise traffi c were the construction of strategic alliances relatively stable in 2006. However, they within this environment. both present a better perspective for In the fi rst half of 2006 Guadeloupe’s 2007. On a social basis, our port was container terminal, Pointe Jarry, added managed smoothly. Every player in the two post-panamax cranes to its three chain showed a spirit of collaboration existing gantry cranes. The two new and professionalism.” cranes, which have literally changed As regards the total integration of port the profi le of the port, have enhanced computer systems, Mr Saingolet spoke the capability and ship management about the recently introduced electronic capacity of the terminal.
32 CARIBBEAN MARITIME I MAY 2007 GUADELOUPE
EDI system puts Guadeloupe on par with leading French ports
French Customs has placed the Port Customs and logistics operations. All To realize this project, Ceiba Ltd of Jarry in Guadeloupe at the same the links in the maritime transporta- has set up steering committees in level of safety and traceability as tion chain are involved: agents and Dominica and St Lucia with representa- four of the principal ports in metro- maritime companies, brokers, the tives from Customs, port authorities, politan France. port authority, Customs, warehous- maritime companies, warehousing Le Havre, Marseilles, Nantes St Naza- ing agents, importers and exporters, agents, forwarding agents, importers ire and Rouen are the only other French forwarding agents and carriers. and exporters and carriers. ports to benefit from this accreditation, which was conferred on Jarry on July “The aim is to boost the port’s productivity while 10, 2006. providing security, safety and traceability of trade” What is making such a difference? A computerized maritime, port and Ceiba Ltd, which installed the system The Alliances for Clovis* project has Customs data interchange platform, in Jarry, has acquired real competence been validated by Interreg III and will implemented and managed by Ceiba in leadership and change manage- strengthen relations and co-operation Ltd in Guadeloupe, allows control of ment through this project. Greater between Caribbean ports. The hub will the island’s imports and exports. Ceiba transparency in the maritime transport also offer port alternatives in the event Ltd receives the ship’s manifest elec- chain has been achieved thanks to the of natural disasters such as hurricanes, tronically four days before her arrival, Ademar+ project, which won the Distri- earthquakes or volcanic eruptions. thus allowing all parties to prepare for bution, Logistics and Transports Award Project manager Sabine Dorrifourt** discharging of cargo. in 2006 (LMI). said “The logistic, business and admin- The software driving the system is istrative exchanges obtained will help called Ademar+ (short for Acceleration Linking the Caribbean to achieve common economic objec- of Maritime Trade). This allows all the Building on this experience, Ceiba Ltd has tives and will contribute to the research players in the maritime transport chain plans to extend the project to the Carib- of economies of scale and alternatives to interface with each other. Customs bean Region by taking the same type of capable to sustain these alliances.” is at the heart of the system. Today, platform to other ports and linking them 96 per cent of imports are managed together so as to facilitate and secure the *Clovis = Caribbean Laboratory for Open through this system, which was devel- exchanges while providing the Region and Value Added Information System oped by Soget Ltd of Le Havre. with a highly competitive port hub. **Email: [email protected] The EDI platform was an initiative by the port community of Guadeloupe. A study by the Maritime and Port Union of Guadeloupe (UMEP) underlined the need to facilitate the operations, logis- tics and procedures of the port com- munity by linking all the players. Other partners in the project are the Port Authority of Guadeloupe, the Associa- tion of Forwarding Agents (SCDTG), the Association of Maritime Agents and Maritime Companies (AACN) and the carriers. The aim is to boost the port’s productivity while providing security, safety and traceability of trade. The community platform manages con- tainerized and conventional goods and vehicles in a secure manner through the traceability of all commercial,
CARIBBEAN MARITIME I MAY 2007 33 THE HUMAN FACTOR Human resources and the bottom line
tor is in start-up, growth, and more efficient than train- responding solely to claims By Burnett B. Coke maturity or decline. ing even greater numbers from the unions. Ideally, HR efforts must be driven while others are concurrently compensation structures or too long, Human by, and in support of, the deemed redundant. This must begin to be based on FResources (HR) has service performance indica- inevitable reality will require objective measures of pro- been perceived as the tors of timeliness, consign- structured synchronization ductivity rather than carte ‘softer’ side of the mari- ment care, compliance and of cultures by HR since over blanche entitlement. time industry, filled with corporate efficiency. Training two-thirds of mergers fail In light of the dynamic envi- paper pushers who have for stevedores, crane opera- because of people issues, not ronment, HR must lead direct no sense of urgency or tors and administrators must financial ones. communication with staff, appreciation for commerce be measured for effectiveness particularly stevedores, and and are willing to virtually and returns on investment. External not solely through the unions. ‘give away the farm’. Remember, what doesn’t get contractors Remember, they are our staff, Reducing margins and measured doesn’t get done! Efficiency also demands that and for too long we have abdi- recent reductions in teu It is also timely that HR HR evaluates what aspect of cated that role to others. movement in the West have joins discussions on mergers business may be outsourced Finally, the HR team must greatly impacted the Carib- and strategic partnerships to external contractors, create an environment bean shipping industry. Our among regional players. thereby allowing operators which links productivity and continued heavy reliance on Using economies of scale to focus on core business. fun. With the high concen- stevedoring mandates the across regional ports, opera- The increased need for labor tration of young workers, it flexibility also mandates that is entirely conceivable that HR must become the internal counsel HR must determine whether regional sporting competi- to captains of industry by providing the workforce comprises tions, which drive esprit de sound, objective and honest feedback employees or contractors. corps, could be hosted. The maritime industry could Simply stated, if we con- urgent need for fundamental tors should seek to avoid the perhaps look to Alcoa Miner- tinue to do what we’ve always change in human resources usual bad fate of small satel- als, of Jamaica, also a tradi- done, we’ll continue to get practices, since investments lite states and enterprises. tional heavy industry, which what we’ve always gotten. in capital such as post-pan- Given the drive towards took a quantum leap in 2001 For HR to impact the amax cranes will only be as establishing fewer, regional and fundamentally trans- bottom line, practitioners profitable as the human ele- mega transshipment ports, formed its workforce from must make a shift away from ment which operates them. it is opportune that we pool over 500 employees to 220 simple ‘horse trading’ with At the outset, HR must efforts for mutual survival. contractors. This radical but unions and move towards become the internal counsel Reductions in teu through necessary shift was paved becoming true strategic part- to captains of industry by specific ports should permit largely through HR-led ini- ners in industry. Only then providing sound, objective the relocation of their trained tiatives. While not a panacea can the viability of Caribbean and honest feedback. stevedores and operators for all ills, this catalyzed shipping be secured. HR needs to become an across geographical borders the way for investments in active participant in design- to high traffic ports. In so excess of US$1billion and Burnett Coke has 16 ing business strategy by doing, HR should help ship- therefore warrants review. years’ experience in employing a global vision ping interests to capitalize To truly get a handle Human Resources, Indus- which predicts and manages on the greater ease of labor on labor productivity, an trial Relations and Con- change instead of simply movement facilitated by the HR-led team must become ciliation/Mediation. He displaying ‘knee jerk’ reac- Caribbean Single Market & proactive in submitting the holds an MA in Labour tion. This will see HR guiding Economy (CSME). industry’s collective bargain- and Development from business decisions based on This approach demands ing claims and expectations the Institute of Social whether the maritime opera- co-ordination, but is cheaper as opposed to perpetually Studies in the Netherlands
34 CARIBBEAN MARITIME I MAY 2007 SHIPS Caribbean Feeder Services takes delivery of its largest ship
The fl eet of Caribbean carriers. It currently operates Feeder Services is being 12 feeders of various sizes expanded to 13 ships with and calls at 25 ports in the the arrival of its newest Caribbean, Mexico, Central – and largest – vessel. America, Colombia, Ven- On May 5 this year Heidi ezuela and the Guyanas. Wellnitz, wife of Frank R. Well- The new ship will be nitz, former President of the joined in July by a sister Caribbean Shipping Associa- vessel, the ‘CFS Panama’, tion, traveled to the Aker ship- from the same shipyard. yard at Wismar, in Germany, According to Frank to christen the ‘CFS Paranam’ Wellnitz, main liners into by performing the traditional the Caribbean Region have ceremony of breaking a bottle become larger, so Caribbean on the ship’s bows. Feeder Services is ready to By naming its new ship follow its customers’ needs after Paranam, a port in Suri- by upgrading the size of its name, the company wants to feeder vessels. send a message that Suri- name – probably the most southerly point in its network – will continue to be served. The ‘CFS Paranam’, a 1,700 teu geared containership, will join the company’s fl eet, providing feeder services in the Caribbean Region. Caribbean Feeder Serv- ices started in August 2000 to off er feeder services to global and regional
CARIBBEAN MARITIME I MAY 2007 35
CURAÇAO Curaçao plans second mega On February 18 this year Curaçao celebrated the maiden call of ‘Club Med cruise terminal II’ of Club Med Cruises and on May 29 the country expects to receive its fi rst call A recent conference to mark the 25th anniversary of the Curaçao by ‘Holiday Dream’, a sister ship of ‘Blue Ports Authority produced some lively discussion about future Moon’ of Pullmanturs. The CPA says that development of the nation’s ports. Speakers included Fernando throughout 2007 it will continue its eff orts to market Curaçao as a vibrant cruise des- Rivera, President of the Caribbean Shipping Association, and tination as well as improving its facilities Carlos Urriola, Vice President of the CSA and General Manager of and services in preparation for growth. Panama’s Manzanillo International Terminal It is against this background that the Authority is drawing up the master hat has been described as “an • Home-porting issues in Puerto Rico plan for a second mega pier. Wimpending boom” in Curaçao’s have been solved, so the number of “With the arrival of a second mega cruise industry was a topic of keen cruise ship visits is growing. pier, Curaçao can receive more ships and discussion at a three-day conference The CPA believes that Curaçao must will create more capacity and facilities held by the Curaçao Ports Authority act now in order to prepare for what it for home-porting,” the CPA has stated. in January 2007. describes as “this exciting onslaught in There was much talk about the Panama the near future”. To this end, the author- Rotterdam interested Canal and its implications for the Carib- ity is working on a master plan and feasi- The CPA will apparently have strong bean Region and Curaçao in particular. bility study for the new terminal. and infl uential partners in this initia- And the conference heard that a com- Curaçao is becoming more popu- tive. At the 25th anniversary conference mittee had been set up to handle the lar as a Caribbean cruise destination in January, there was enthusiasm and development of a second major cruise in line with an overall growth in the interest from the Port of Rotterdam. terminal, to be completed in three years. island’s tourism sector. In 2006 Curaçao In its biannual publication, ‘Curaçao received 205 cruise ship calls – about Portcall’, the CPA reported: “Although Cruise market growing seven per cent of total vessel calls talks have not yet been completed, Mr Although the trend towards ever larger – with 326,885 passengers. The forecast Lopez Ramirez seemed enthusiastic cruise ships has been fi rmly estab- for 2007 is 276 calls with 353,277 pas- over a possible investment in CPA and lished for some years, Curaçao has sengers. This means a growth of 34.6 the mega pier by the Rotterdam Port been hesitant to build a second mega per cent of calls and 8.1 per cent of pas- Authority. The Port of Rotterdam has pier because it did not fi nd the fi gures sengers in comparison with 2006. A fur- long since been a close associate of CPA, convincing enough to warrant the ther growth in calls and passengers is sharing expertise and joining in business expenditure, says the CPA. forecast, with numbers set to increase ventures such as the joint shareholding But now, as the CPA now sees it, “the by up to 400,000 passengers a year. of the Curaçao Port Developers.” need for a second mega pier in Curaçao is evident”. Curaçao – vessel calls 2006 Three major industry developments 460 have led to the CPA’s decision to move 16% forward with the project: 1,304 205 Other 45% 7% • There are now more alternative Cruise destinations in the southern Caribbean Freighters
Region Tankers • Cruise lines are turning to the southern Caribbean in search of unique ports of call to meet the demands of 920 their passengers 32%
CARIBBEAN MARITIME I MAY 2007 37 DEALING WITH GROWTH Continuing growth in shipping industry is major challenge for Caribbean
The Caribbean Sea is a centre of world shipping – the southern gateway to the world’s largest single market. It facilitates all ships using the Panama Canal. It is the cruise ship capital of the world. Recently, some of the leading voices in the Caribbean Shipping Association – the President, Fernando Rivera, the Vice President, Carlos Urriola Tam, the Cruise Committee Chairman, Jan Sierhuis, and the Chairman of Group A, Robert Foster – have been discussing developments that will shape the future of the Region’s shipping industry
By Mike Jarrett
Expanding the three chambers, including ma’s Manzanillo Interna- accordingly.” three water-saving basins. tional Terminal, hosted CSA Given this new reality, Panama Canal New access channels to the delegates on that trip and said Mr Urriola, the Carib- locks will be excavated and fielded questions about the bean governments and erhaps more than any existing navigation channels expansion project and its ports must ask themselves Pother facility in the widened and deepened to implications for Caribbean an important question: world, the Panama Canal, accommodate the larger shipping. should they expand so they opened in 1914, is central ships. The maximum operat- can accommodate these to world trade. ing level of Gatún Lake will Impact on monster vessels – or should Each year more than need to be elevated. Caribbean ports they continue being feeder 14,000 ships transit the canal The project, which is Mr Urriola said Panama ports? carrying over 203 million expected to cost US$ 5.25 had taken a decision that “Economies of scale will tons of cargo. Many of the billion, will be self-financed would change the shipping dictate that these vessels leading trading partners of through higher transit tolls. business in all regions of the call at fewer ports, but with the United States use the The plan was unani- world including the Carib- more cargo. Efficiency and canal to ship their cargo. mously approved on July bean. “By the people voting reliability will be key. But In 2006 the government 14, 2006 by the National their approval, Panama before we operate, we must and people of Panama Assembly, which authorized can now begin the work of build it or improve our facili- approved the single largest a national referendum on expanding the canal to allow ties. Do we have the funds project in the canal’s history the proposed expansion, post-panamax vessels to to build 16 meter depth – one that will effectively held on October 22, 2006 a transit by a new set of locks,” berths? Do we have the double its capacity. few days after the CSA’s 36th he said. capital to buy post-panamax The expansion is Annual General Meeting in “The new sets of locks will cranes? expected to take up to Panama City. be ready for the year 2014 “Also, we must under- eight years to complete and During that meeting of and then post-panamax ves- stand that the actual Canal is involves the construction the CSA, over 200 mem- sels will transit our Region. already close to full capacity. of two lock complexes, one bers and delegates had For the first time in our his- While Panama is building the on the Caribbean side of an opportunity to see the tory of regional port devel- new locks, there will be more the isthmus and the other Canal in operation. CSA Vice opment, there is a definitive pressure in the terminal to on the Pacific side. Each President Carlos Urriola Tam, date. So every port in the provide a faster and reliable lock complex will have General Manager of Pana- Caribbean Region must plan service. Are we ready?”
38 CARIBBEAN MARITIME I MAY 2007 DEALING WITH GROWTH
Much more with the damaging effects of ment hubs to develop as Cruise overweight containers being efficiently as possible. Every still to be landed on our wharves. Not time a container is loaded industry looks done, says only does this damage the and discharged, costs are to the future ports that we have only just incurred. In order that costs President recently spent large sums to the importer and then to The expansion of the building, but they do untold the ultimate consumer are Panama Canal will bring Despite the CSA’s tremen- damage to the road network contained, it is necessary to more and bigger ships to dous role in facilitating of our countries – the same handle cargo as few times as the Caribbean. And regional development during its roads that we must use to get possible. Multiple handling concerns over ship size and 36-year history, much more our exports to the ports. of containers also makes their implications will apply has to be done in a con- “We need the carriers that them and their contents to the cruise sector as well stantly changing and rapidly call on our ports to under- susceptible to damage. as the cargo side of the expanding industry, accord- stand the great social and “The challenge for the industry. ing to the Association’s economic problems that this major lines is to create the Both in the United States President, Fernando Rivera. causes,” he said. economies of scale neces- and in Europe, the cruise Addressing the 30th He said the CSA had co- sary [for efficiency] yet have industry is on a growth Caribbean Central Ameri- can Action Conference on “There is already a limit to what size ships the the Caribbean in Miami last December, he said: smaller Caribbean island ports can accommodate” “Economic realities have prevented us doing as much ordinated the upgrading of the ability to transport cargo path once again, leading to as we want to do.” He said security at seaports across quickly and efficiently to new investments in ports there were problems related the Region and all but two the small outlying markets and destinations, says Jan to economies of scale and had met the International across the Region. I think Sierhuis, chairman of the scarcity of capital resources. Maritime Organization’s the key then is the selection CSA’s Cruise Committee. “For example, the smaller deadline of July 1, 2004 for of the appropriate vessel to He said new players and ports in the Caribbean were introducing the ISPS Code. service these smaller territo- the trend towards ever larger forced to comply with the ries. The vessel cannot be so cruise vessels had triggered ISPS [International Ship Implications big that it cannot enter the a fresh round of investments and Port Facility Security] smallest port – yet it has to in ships that, in turn would regulations and all the WTO of Canal be large and fast enough to mean new investments in [World Trade Organization] expansion service the route within an port facilities and generally in and FTAA [Free Trade Area acceptable schedule.” cruise destinations. > of the Americas] security For the next seven years, measures at tremendous Caribbean territories will expense in order to continue continue to grapple with the CSA’s role as a forum doing business into the USA. implications of the expan- The Caribbean Shipping Association provides a forum However, these poor, debt- sion of the Panama Canal. for carriers, port management, port and terminal opera- ridden countries had little The chairman of the CSA’s tors and shippers to work together to facilitate trade. or no significant support Group A, Robert Foster, The Association is made up of three groups: from the real beneficiaries believes that, as shipping of these security measures lines continue to pursue • Group A – Shipping agencies, private stevedore operators – the more developed cost reductions, they will and national shipping associations countries. do so by creating better • Group B – Port, wharf and terminal owners and operators, “And while these small economies of scale. Vessels including national port authorities territories struggle with the are going to get bigger and • Group C – Ship owners and operators. tremendous cost of develop- bigger, he predicted. ing efficient and dependable “There is already a limit to There has also been significant growth in a fourth area of CSA port operations and having to what size ships the smaller membership: non-vessel operators and freight consolidators. purchase expensive security Caribbean island ports can In addition, the recently formed CSA Cruise Committee has technologies from the devel- accommodate, hence, it is focused attention on the Region’s cruise industry, a pillar of oped countries, we are faced necessary for the transship- Caribbean national economies.
CARIBBEAN MARITIME I MAY 2007 39 DEALING WITH GROWTH
The big question, according to [Mexico], Belize and the Turks and Caicos attractive vacation option, whether it is Mr Sierhuis, is what role MSC Cruises Islands. Traditional cruise destinations in a hotel or a cruise ship package – and, – owned by the container operator Medi- Jamaica, Sint Maarten, Barbados, Aruba actually, people buy both.” terranean Shipping Company – will play and Curacao are investing in expansions and On the implication of larger cruise in the market in the coming years. improvements to their infrastructure and ships in the Caribbean, Mr Sierhuis said: Carnival and Royal Caribbean, the product, in an effort to keep up with the “The arrival of more and bigger ships two largest cruise groups, are penetrat- market and with increased competition.” continues to pressure the cruise lines to ing new markets, while embarking on a As Mr Sierhuis sees it, the stakes are seek for new home ports, new itineraries strategy of product improvement and getting higher, competition is fierce and and new destinations. The Caribbean, by changes in existing markets. Asia, Africa, hence the risks are also improving. demand and by necessity, will remain the the Middle East and South America are Traditionally, the Caribbean is divided largest cruising ground for these vessels.” new cruising grounds that are seen as into the western, eastern and southern He went on: “Currently, new devel- alternatives to traditional markets in the markets, with the western market show- opments are taking place all over the Caribbean, Alaska, Mexico and Europe. ing strong growth. The southern market Caribbean, particularly in the western and southern Caribbean, where new “The arrival of more and bigger ships continues ports and destinations are being created to pressure the cruise lines to seek for new home in Mexico, Guatemala, Belize, Hondu- ports, new itineraries and new destinations” ras, Costa Rica, Panama, Colombia and Venezuela. In the Dominican Republic, Cruise lines do invest in several key has growth potential but is hampered by Puerto Rico, Sint Maarten and Barbados, markets, but traditionally they limit them- the relative distance to home ports in the new port investments are also under way. selves to long-term agreements and other US as well as the limited home-porting And Curaçao, my own destination, is in forms of co-operation instead of actual capacity of most Caribbean territories. the process of investing in a second facil- participation in port-related projects. “Home-porting of European ships ity for the mega-ships. Hence, new financing models are needed seems an attractive alternative for “The issue for the Caribbean is how to for these projects, as most governments southern Caribbean destinations,” said balance the positive impact of this vibrant are no longer in a position to finance such Mr Sierhuis. “Aruba, Barbados, Dominican industry against the obvious negatives of large infrastructure projects. Republic and, to a lesser extent, Jamaica congestion and overcrowding. Is there an At the same time, increasing competi- and Curacao are receiving turnaround optimum level where volumes, invest- tion between regions puts pressure on operations for the European markets. For ments, revenues and social and environ- port and tax revenues from cruise ships. the time being, however, these seem to mental costs level out and guarantee the “On the other side of the coin, as cruise be winter operations only.” long-term sustainability of the destina- ships become larger and larger, cruise lines tions and the Region? These are issues that are depending more and more on a handful Competition for will have to be addressed on a regional of large destinations that can handle their berthing space level, sooner rather than later.” business,” said Mr Sierhuis. “Congestion Mr Sierhuis noted that there was some Mr Sierhuis added: “I believe the and declining destination experience competition between cruise and cargo awareness and willingness are there. are issues of concern, but the opera- ships for berthing space and pilot assist- What we need now is someone taking tors expect these issues to be resolved ance in some destinations, but said that, the lead to make all this happen.” through joint partnerships and programs. more and more, these issues were being He said various organizations must A recent FCCA study on the impact resolved or the negative effects were jointly set the agenda and increase their of the cruise industry in the Caribbean being reduced to acceptable levels. co-operation, including the Caribbean showed that almost 75 per cent of pas- “I always like to bring forward that a Tourism Organization, the Florida-Car- senger spending in the Caribbean was cruise ship also brings business to a port ibbean Cruise Association, the Cruise concentrated in five to six destinations. and, because it generates cargo and Lines International Association and the Spreading cruise calls and passenger foreign currency, the country benefits. American Ports Authority Association as spending more evenly over the Carib- This also benefits the shipping and port well as the CSA. bean would require massive investments industry. Furthermore, the past animosity and political leadership, said Mr Sierhuis. between the cruise and the hotel indus- “Cruise lines are beginning to invest try in the Caribbean is quickly fading in new ports of call in an effort to escape away as both are starting to realize that congestion and offer a new, unique and they also have a common interest – get fully controlled experience to their pas- people to take a Caribbean vacation sengers. Recent examples are Costa Maya and market the Caribbean as a safe and www.caribbeanshipping.org
40 CARIBBEAN MARITIME I MAY 2007 CSA NEWS
CSA PRESIDENTIAL CSA asssists New Orleans THREE, ON BOARD When New Orleans was Authorities in New Orleans in Editor Mike Jarrett got Carlos devastated by Hurricane September last. The Port of Urriola (left) Fernando Rivera Katrina in August 2005, the New Orleans is a long-stand- ( centre) and Corah Ann Caribbean people could ing member of the CSA and Robertson-Sylvester together readily empathize. They deal has hosted a number of CSA during the CSA partial transit with hurricane devastation conferences. The Associa- of the Panama Canal, at the President; Fernando became and upheaval on an annual tion last met in New Orleans 36th Annual General Meeting President; and Corah Ann basis. Members of the CSA for the 30th annual general last October (2006); just 24 demitted office (having started a fund-raising effort meeting in October 2000. hours before they changed served three consecutive) for the benefit of the workers their respective roles in the terms to become Immediate of the Port of New Orleans. CSA. Carlos became Vice Past President. The money collected was pre- sented to the port’s President CSA TRAINING and CEO, Gary LaGrange, by Some of the Caribbean’s most competitive companies, including Corah Ann Robertson Syl- port facilities, are involved in both cruise and cargo shipping. vester, then President of the This is a growing trend and the CSA responded by organizing a CSA, at a conference of the training course on Strategic Management for Cargo and Cruise American Association of Port Operations last year in Curaçao. Participants from Barbados, Aruba, Antigua, Curaçao and Bonaire were led through a CSA PORT AWARD number of discussions dealing with practical ways to position their com- SPRC, Colombia was voted panies for this continuing trend by Caribbean Port of The Year Mr Fritz Pinnock. This course, held – Best Container Terminal for at the Dutch Caribbean Training the second consecutive year. Centre in Curaçao on April 4 and 5. Giovanni Benedetti, Direc- tor of Marketing and Sales, DONATION TO CSA TRAINING TRUST FUND received the trophy at the CSA’s 36th Annual General Meeting, SMIT Harbor Towage Panama Inc made a substantial dona- Conference and Exhibition in tion of US$5,000 to the CSA Training Trust Fund, following CSA PRESIDENT MEETS Panama City, October 17, 2006. a discussion between SMIT’s Loek Kullberg and CSA Past JAMAICAN PRIME President and Chair of the Trust, Frank Wellnitz in Panama City MINISTER on the occasion of the CSA’s 36th Annual General Meeting. Here Capt. Ronald Neomagus (left) of SMIT makes the presen- Jamaica’s Prime Minister, tation to CSA Vice President Carlos Urriola. The presentation Mrs Portia Simpson-Miller was made at SMIT’s Panama (right) had a warm hug and office on December 27, 2006. greeting for recently elected The CSA Training Trust Fund President of the Caribbean supports CSA training and Shipping Association, Fern- human resource development ando Rivera when the two programmes across the Carib- met in Miami, Florida at the bean Region. Caribbean Central Ammeri- can Action (CCAA) annual Conference on the Carib- EDITOR’S CHOICE bean in December 2006. The Jamaican Prime Minister rec- TWO WOMEN Erica Luke, Marketing Director ognized the importance and Photographer Jorge Quin- of Eric Hassell & Son Ltd of Bar- role of the CSA in regional tana of Panama caught the bados share a brief moment of devleopment. Mr Fernando moment in the semi-silhou- bonding during a break at the was a discussion panelist ette of delicate natural light. 36th Annual General Meeting at the Conference and the Two of the leading women in in Panama City last October Jamaican Prime Minister was Caribbean shipping, Corah (2006). It was Mrs Robertson- a featured speaker at one of Ann Robertson-Sylvester (left) Sylvester’s last meeting as the conference events. (CEO of Seaboard Jamaica and President of the CSA.
CARIBBEAN MARITIME I MAY 2007 41
GUYANA John Fernandes expansion strengthens Guyana’s shipping industry
hen Guyana’s Min- himself what the operations The company’s import container Wister of Finance, Dr were like. terminal was opened in October Ashni Singh visited two of Only a month previ- the country’s main wharf ously, in October, JFL operations in November held ceremonies to mark last, he was full of praise the official opening of its for the initiatives and expanded facilities and the improvements he saw at Minister was understand- John Fernandes Ltd (JFL). ably impressed with what he The Minister, who led a saw, as reported in the local team of officials from the press. Guyana Revenue Authority In Guyana, JFL is on a familiarization tour of accepted as the leading purchased a building imme- share to about 65 per cent the port, wanted to acquaint containerised cargo han- diately north of its main of the country’s import and himself with processes, dling facility. The company terminal on the Demerara export container trade. working conditions and has grown significantly over River from the Guyana gov- According to Mr Fern- issues confronting Customs the past 15 years, steadily ernment. The building was andes, the Minister of officials and the public who gaining market share. How- extensively refurbished and Finance and the Commis- did business at the port. ever, as the business grew now houses John Fernandes sioner General on visiting Christmas was approach- under the leadership of Chris Ltd’s new LCL warehouse. the company in November ing and the Government Fernandes, the company were vocal in their praise of minister needed to see for found it increasingly difficult Expanded the initiative taken by JFL and to handle LCL (less than In addition to the new ware- they called on other shipping container load) cargo. house, the company moved entities to follow the lead set “Our growth created a to create an expanded by the company. problem in that we needed container yard. An area of In February this year, JFL more space,” said Mr Fern- mudflat immediately west took possession of its sixth andes. of the new warehouse was Terex PPM Super Stacker as In 2005 the company revetted, landfilled and sur- well as 12 additional chassis. faced and established as the “This will to ensure that company’s import container we have adequate equip- terminal. It was this facility ment to service the increased that was officially opened on business resulting from our October, 10, 2006 by Guy- recent capital investment,” ana’s Prime Minister, Samuel Mr. Fernandes said. Hinds. John Fernandes Ltd is a This new container han- long-standing member of dling facility has further given the CSA and Mr Fernandes JFL a competitive edge and has served on the CSA’s has allowed the company to General Council for many further increase its market years.
CARIBBEAN MARITIME I MAY 2007 43
BARBADOS Bridgetown invests in major expansion
In a wide-ranging interview, Freida Nicholls, Assistant Manager (Market Development & Public Relations) of Barbados Port Incorporated, tells CHARLES HARDING about the challenges facing the Port of Bridgetown – and about its many notable achievements
aced with the challenge of port – but we can compete with them in extension, between 1975 and 1979, pro- Fcongestion as a result of growing terms of our operations. vided more docking places, facilities for cruise and cargo traffi c, the small but “To be best in class means the type small vessels, a container terminal and vibrant port of Bridgetown, Barba- of services we off er, the type of facilities a modern administration building. dos, is investing in a major expan- we off er. Best in class comes from the sion to retain its competitive edge. distinct focus on the customer.” Encourage Among other notable investments, Few other government or quasi- The current expansion, begun in 2002, the port has licked its security chal- state organisations in Barbados have includes dredging of the inner harbour lenges by acquiring the latest in anti- attracted the same level of invest- to increase the depth from 9.6 to 11.6 terrorist technology. ment and development as the Port of metres and to encourage mega cruise To be ‘best in class’ for services and Bridgetown, built on reclaimed land ships to call at Barbados. As part of a facilities is a key objective for Everton and opened in 1961 as the Deep Water rearrangement of port areas, the dredg- Walters, the port’s chief executive offi cer. Harbour. It was a sheltered port with a ing spoil was used to reclaim nine acres “He has always determined that this breakwater and two cargo sheds cre- on which to provide a new cargo berth is the standard that the Bridgetown ated from a land reclamation project and more container yard space. Port should achieve and seek to main- that connected Bridgetown with tiny A fi fth berth was opened last year, tain,” said marketing specialist Freida Pelican Island in the southwest. increasing berthage to 1,513 metres Nicholls of Barbados Port Incorporated. Over the years, the port has under- and enabling the Port of Bridgetown, “We cannot compete with, say, the Port gone major extensions to cope with though relatively modest in size, to of Kingston [Jamaica] in terms of size changes in international shipping. One accommodate a large number of >
The Port of Bridgetown can accommodate fi ve mega sized cruise ships at a time
CARIBBEAN MARITIME I MAY 2007 45 BARBADOS
administration that paved the way for new investment and development. The port is now being divided into four zones for greater efficiency and safety of port operations. Cruise ship handling will be con- centrated in the south of the port and a new cruise pier, originally estimated at US$ 20 million, will be installed to accommodate two large cruise ships simultaneously. This will provide extra capacity to handle the expected rise in cruise arrivals and cargo. The two berths will boost the port’s daily passenger handling capacity by 8,000 and will allow the port to continue to separate its cruise and cargo handling operations in the interests of passenger safety. Port management is also putting in vessels, including five mega sized cruise now demands a larger chunk of our a post-panamax gantry crane to serve ships, such as ‘Adventure of the Seas’ budget than in previous years. Ten cargo vessels with a capacity of up to and ‘Queen Mary 2’, at any given time. years ago you did not have 9/11 and a 3,500 containers. Bridgetown, which has won more shifting in the world’s insecure centre. Cargo handling will continue in the awards than any other Caribbean Ten years ago you didn’t have to deal main port and bulk handling will be port since 1993. It also acted swiftly with that.” concentrated on recently reclaimed to comply with the International Ship land to the north. Leisure craft will be and Port Security (ISPS) Code, putting Meeting demands accommodated at the Shallow Draft all the required systems in place well Although the Port of Bridgetown has Wharf behind the main cargo quay. before the July 1, 2004 deadline. met international standards since its The sugar loading towers, a land- More than US$10 million was invested inception, the current expansion and mark at the breakwater since 1961, will in a range of equipment specified by renewal project, originally estimated at be dismantled and relocated to new the ISPS code including high intensity BDS$100 million, resulted from a spe- sugar facilities at the Land Reclaimers lighting scanners, security cameras cial study in the 1990s. This study indi- site, near the Flour Mills off the Spring and X-ray equipment. The port is also cated that the port must renovate its Garden Highway, just north of the port. in the process of acquiring a US$ 2 infrastructure and expand on its core The port’s bulk sugar terminal is also million Integrated RFID and Sensor business areas of cargo handling and being redesigned and converted into a System of wireless ground and under- the cruise sector to meet the demands facility for cruise passengers. water sonar and video cameras that of the 21st century. Ms Nicholls said: “We are looking at work in concert to manage security The reform began with the incor- creating a facility outside the environs threats. poratization of the Barbados Port of the port but with accessibility for “Nothing in our security is [too] Authority as Barbados Port Inc land-based residents and visitors as expensive,” said Ms Nicholls. “Security – an institutional change in the port’s well, similar to what obtains at Biscayne
46 CARIBBEAN MARITIME I MAY 2007 BARBADOS
in Miami, where locals can go without encroaching upon the integrity of the port. “We are looking at a crew facility. We don’t have one,” she added. Although plans are not yet finalized, considera- tion is being given to a multipurpose facility that would include recreational activities for ships’ crews. Key benefits One of the port’s molasses tanks will be Bridgetown has won best port awards converted into a potable water storage from the CSA and other organizations system with ancillary pumping facilities. It is all part of an expansion and renewal that is intended to bring key benefits to both port users and cus- Bridgetown had faced challenges. “But to hold on to that customer because tomers. we seek to ensure that the peculiarities that customer knows that you have his Ms Nicholls said the major challenge of port operations and port services are best interest at heart and you are going facing Barbados Port Inc was that the addressed by ensuring that we have to seek to fix what is not right. Deep Water Harbour was originally con- ongoing training,” she said. “So that relationship building is structed as a cargo handling port. The marketing focus has also been in the forefront of how we hope to “We have to tweak and adjust and rearranged to emphasise port devel- maintain that best in class vision,” Ms rehabilitate and revise to create a cruise opment and delivery of service. The Nicholls declared, adding that the vision extended to the maintenance “We seek to ensure that the peculiarities of port of equipment, the provision of timely service and ongoing training of the operations and port services are addressed by port’s human resources. ensuring that we have ongoing training” The Port of Bridgetown has earned a fine reputation as a multipurpose port facility within there. And as cruise pas- spotlight is on frontline staff, including and has won best port awards from the sengers increase and cruising becomes cashiers, receptionists and security Caribbean Shipping Association (CSA), more popular, demands on services officers, who interact with customers. Dream World Cruise Destinations and and facilities are going to be greater.” Port marketing has not only shifted World Cruise Destinations and Seatrade Pointing to St Marteen, where there from selling to a customer focus, but as in the categories of Most Improved Port is a purpose-built cruise facility, Ms Ms Nicholls explained: “We are going Facilities and Most Receptive Destina- Nicholls said: “Newer players into the even a step further to the modern-day tion since 1993. market have a decided advantage concept of marketing, which is building Bridgetown won the CSA Port of the because they can design a facility lasting relationships. Year awards in 1993, 1995, 1996, 1997, specifically geared towards the require- “If you have a relationship with your 1998 and 2003 and was named the ments of the cruise passenger. We have customer that allows your customer to CSA’s Best Multipurpose Port in 2004. to make adjustments.” feel that he is important, that he has It was runner-up in the fields of World She agreed that, like other public and been well served, when the problem Best Destination and Best Destination private sector organisations, the Port of occurs – and it will – you are better able in 1996.
CARIBBEAN MARITIME I MAY 2007 47 A MATTER OF LAW Piracy and maritime terrorism: a convergence of challenges for Caribbean shipping
By Milton J. Samuda and Stacey-Ann Soltau-Robinson*
an’s actions are often whatever they may be in any international and Caribbean of one invariably affects the Mthe products of his specific instance, piracy and shipping interests, especially other. The vulnerability of motivations. The activities terrorism will continue to since “both disrupt normal regional shipping interests is of terrorists – or “persons take place. It would also be [societal] routes and under- thus apparent. who use violence and reasonable to say that, irre- mine institutions”, according Indeed, one may even be intimidation in the pursuit spective of their individual to Donald J. Puchala in his of the view that the afore- of political aims” accord- motivations, with incidents comparison of [historical] described required reaction ing to the Oxford Diction- such as the attack on the piracy and transnational by the shipping interests ary – have reluctantly yet USS ‘Cole’ in 2000, terrorism terrorism, ‘Of Pirates and Ter- of the Region may, in fact, unavoidably captured our has literally come to occupy rorists: What Experience and be an obligation of Carib- attention. So inimical to the same space – that is, the History Teach’. bean shipping interests as their identity is their moti- sea – as piracy, with acts akin The challenges presented each seeks to discharge its vation to achieve their to piracy. by piracy and terrorism thus responsibility as a good particular political objec- converge, and the shipping corporate citizen in a global tive that it forms a part of Creative terrorists interests of the Region must context. their very definition. It is of no moment that the participate with the rest of It is a sensitivity to these During the late 16th to Caribbean Region may not the world in tackling these issues that may in turn early 18th centuries piracy be currently experienc- threats – potential or actual transform what may be – defined by the dictionary ing the kinds or levels of depending on the scope of viewed by some as extrane- as “the practice of attack- terrorism/piracy activities one’s business reality – to ous “first world” problems ing and robbing ships at that have taken place in their continued commercial that have little to do with sea” – was commonplace other areas of the world viability as they for instance regional shipping concerns throughout the Caribbean. such as, according to Luft face increased security, com- into a motivating factor that Their motivation was prima- and Korin, the South China pliance and insurance costs. will color the ways in which rily, and readily recognizable Sea and the waters off the It should also be empha- the shipping interests of as, economic gain. In its coast of western Africa. sized that several economies the Region react to these modern form, the motive for Indeed, there may be those in the Region are service- concerns henceforth. piracy still appears to still be who point to the fact that, financial benefit, although according to the Interna- The practice of attacking and robbing one view is that many of tional Maritime Bureau, ships at sea was commonplace today’s pirates are “terrorists there were only about five throughout the Caribbean with an ideological bent and incidents of piracy in the a broad political agenda” Caribbean area in 2005 and based and depend on indus- (Luft, Gal & Korin, Anne: ‘Ter- four in 2006. The point is tries such as tourism, one of rorism Goes to Sea’). that it may be impossible to their primary markets being In any event, it would be stem this tide indefinitely the United States. The inter- reasonable to conclude that, as terrorists become more woven nature of businesses *Both Milton J. Samuda as long as these motivations creative in their attacks. in this area, such as the cruise and Stacey-Ann Soltau- continue to exist within the These undesirable activi- and aviation sectors, means Robinson are attorneys- breast of the various actors, ties are the concern of both that a threat to the viability at-law
48 CARIBBEAN MARITIME I MAY 2007