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ReportNo. 2004a-CRB RAN.0 -CRB CaribbeanRegional Transport Review IEMNTO tJL&

Public Disclosure Authorized INFGHMATtwZt-c;i;1 April 24, 1978 ProjectsDepartment Latin America and CaribbeanRegional Office FOR OFFICIALUSE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Documentof the WorldBank

This document hasa restricteddistribution and may be used by recipients only in the performanceof their official duties.Its contents may not otherwise be disclosedwithout World Bankauthorization.

FOR OFFICIAL USE ONLY

Abbreviations and Acronyms

ALM - Antillean BDD - British Development Division of the Ministry of Overseas Development, UX Government BESO British Executive Service Overseas BWIA - British Airlines CAak - CivAil Aviationi Authority (UK) CAB - Civil Aeronautics Board (US) CARITOM - CoTmon Market CAROL - Caribbean Overseas Lines CDB - Caribbean Development Bank CIDA - Canadian International Development Agency DWT - Dead Weight Tons ECLA - Economic Commission on Latin America EDF European Development Fund FAA Federal Aviation Agency - US FAO Food and Agricultural Organization F.O.B. - Free On Board lATA - International Air Transport Association 1BRD International Bank for Reconstruction and Development (WorLd Bank) lCAO - Ilternational Civil Aviation Organization -IDA - International Development Association IDB - Inter-American Development Bank IFC - International Finance Corporation ]!'1CC - Intergovernmental Maritime Consultative Organization KL_M - Royal Dutch Airlines LDC - Less Developed Country in the CARICOM group (, Belize, , Grenada, Montserrat, St. Kitts/Nevis/Anguilla, St. Lucia and St. Vincent). LIAT - Air Transport MDC - More Developed Country in the CARICOM group (, , , Trinidad). NAMUCAR - Naviera Multinacional del Caribe, S.A. ODM - Ministry of Overseas Development of the UK Government OECD - Organization of Economic Cooperation and Development Ro-Ro - Roll-on/Roll-off UK-CAA - (See CAA) UNCTAD - United Nations Conference on Trade and Development UNDP - United Nations Development Programme UN-ECLA - (See ECLA) USAID - Agency for International Development US-CAB - (See CAB) VHF - Very High Frequency WISCO - West Indies Steamship Company WITASS - Association of West Indies Trans-Atlantic Steamship Lines

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CARIBBEAN REGIONAL TRAONSPORTREVIEW

TABLE OF CONTENTS

Page No.

I. INTRODUCTION AND SUMMARY

A. Context and Scope of the Review ...... 1 B. Regional Transport Determinants ...... 2 C. Maritime Transport ...... 2 D. Air Transport ...... ;. 4

II. BACKGROUND

A. Geographic and Institutional Definitions ...... 5 B. Economic Environment ...... 5 C. Current Transport Development Assistance ...... 6 D. Transport Demand ...... 7

III. MARITIME TRANSPORT

A. Shipping Services ...... 8 B. Port Facilities ...... 12 C. Policy and Investment Implications ...... 16 D. Opportunities for Development Assistance ...... 17

IV. AIR TRANSPORT

A. Air Services ...... 18 B. Airport Facilities ...... 20 C. Policy and Investment Implications ...... 21 D. Opportunities for Development Assistance ...... 23

TABLES

1. Regional Passenger Movements ...... 24-25 2. Principal Maritime Services in the Region ...... 26 3. CARICOM Area Freight Movements ...... 27-28 4. Major Regional Public Port Facilities ...... 29 5. Daily Vessel Operating Costs ...... 30 6. Regional Air Services ...... 31-32 7. Major Regional Airport Facilities ...... 33

This report is based on a mission led by Mr. D. L. Glickman (maritime consultant) with Ms. J. M. Harris (transport economist), Mr. H. van Helden (transport consultant) and Mr. A. H. Stratford (aviation consultant). The report has been prepared under the supervision of the Ports, Railways and Aviation Division, LAC Region-Projects Department. TABLE OF CONTENTS (Continued)

Page No.

ANNEXES

1. Agencies Contacted during Review ...... 34 2. Present and Prospective Transport Demand ...... 38 3. Maritime Transport Assistance Proposals ...... 42 4. Air Transport Assistance Proposals ...... 49

MAP

IBRD 10611 - The Caribbean Area I. INTRODUCTION AND SUMMARY

A. Context and Scope of the Review

1.01 A consultative meeting in December 1977 of government representa- tives and international agencies interested in supporting development in the Caribbean region initiated an effort to coordinate financial and other assis- tance to individual countries and territories in the Caribbean and to the Caribbean region as a whole. This report presents the results of a review of the transport sector in the region, undertaken by the World Bank in prep- aration of the second meeting of government and international agencies interested in supporting Caribbean development, to be held in June 1978.

1.02 The countries and territories covered in the regional transport review are: Antigua, Barbados, Belize, Dominica, , Grenada, Guyana, , Jamaica, Montserrat, Antilles, St. Lucia, St. Kitts, St. Vincent and Trinidad/Tobago. 1/

1.03 The review focused on intra-regional and extra-regional transport by sea and by air. 2/ Transport services and facilities within individual countries or territories were covered only where they have a direct bearing on regional transport services. Primary emphasis was given to service improvements or new transport services that would stimulate economic and social development in the countries and territories to be assisted. However, the role of other countries and territories in the region (e.g., the South, Central and North American coasts of the Caribbean and the Gulf of , , et al) was also considered as part of the regional transport system.

1.04 The purpose of this review is to:

(a) provide a general overview of ongoing and proposed transport developments in the Caribbean region;

(b) identify major unmet transport needs, gaps in preinvestment work and prospects for improving the effectiveness of regional transport services; and

(c) suggest possible next steps in development assistance to transport services and facilities in the region.

1.05 In the course of this review, members of the team of consultants retained by the Bank made brief visits, between February 5 and 19, 1978, to 14 countries and territories in the region to obtain information, assistance and suggestions from various regional, national and private agencies concerned with transport (Annex 1). The material obtained was reviewed in the Bank and the resulting findings and recommendations are summarized in this report.

1/ The Bahama Islands were also included in the original scope of this review, but could not be covered because of time constraints.

2/ While this report does not address internal country transport needs, they are nevertheless significant. However, there was no comprehensive framework for determining future demand on transport services in the region (e.g., agricultural and industrial production, tourism, etc.); furthermore, given the overall time constraint of this review, many of the findings and recommendations presented here must be regarded as tentative and should be subject to verification or modification in the course of further analysis.

B. Regional Transport Determinants

1.06 The countries and territories under review are all located within the Caribbean region (defined as the sea and land areas within and adjacent to the ), but they vary widely in size, population, level of economic activity and historical background. Size ranges from islands with 16 square miles and 10,000 people to countries with 18,000 square miles and five million people, as well as to two mainland countries. Per capita income ranges from US$200 to over US$2,000, and national economic wealth ranges from those which are oil exporters to those whose governments cannot cover annual current budgets (paras 2,01-2.05).

1.07 Most Caribbean countries under review look extra-regionally rather than intra-regionally in terms of their major markets and transport linkages since their economies are competitive rather than complementary. This is true from the standpoint of both freight and passenger movements (para 2.06). This situation may be somewhat modified over the longer term as regional cooperation enhances possibilities of complementary economies.

1.08 Funds and technical assistance for transport infrastructure devel- opment are available from a variety of sources, both bilateral and multilateral. Prior to the December economic development conference, coordination among the various donors and lenders had been achieved mainly through informal communica- tions (paras 2.07-2.09),

1.09 Only partial statements of the total regional transport demand can be made because of the serious lack of standardized statistics. Excluding oil movements (about 100 million tons), exports are on the order of 25 million tons (primarily bulk) and imports are approximately 5 million tons. Passenger movements, primarily tourist air arrivals, equal four million. Annual pro- jected cargo growth rates range from 2% to 5% for Haiti and most of the CARICOM Less Developed Countries, and from 4% to 8% for Belize, the Dominican Republic, CARICOM More Developed Countries and the (paras 2.10-2.11 and Annex 2).

C. Maritime Transport

1.10 Major shipping lanes crossing the Caribbean provide an excellent basis for maritime service in international trade. The region is well supplied with liner services to its major trading partners in Europe and the Americas, but distribution within the region is not efficient, particularly for traffic to and from the smaller countries and territories, where tonnages are low. Intra-regional services, provided by extra-regional carriers and their sub- sidiaries, by two government-owned regional carriers and by privately owned small vessels, are felt to be deficient and costly (paras 3.01-3.13). -3-

1.11 The ports in the region cover a wide range of facilities, both public and privately owned. In the principal public ports, a considerable amount of investment has taken place over the past decade and funds are committed to numerous projects that are ongoing or about to be initiated. It is, again, in the smaller countries and territories that terminal deficiencies are felt to exist (paras 3.14-3.34).

1.12 With regard to extra-regional maritime transport, the main findings of the review are:

(a) there is no evidence of major capacity constraints in liner services or terminals at the region's principal ports (except Trinidad);

(b) there is no basis on which a judgment can be made of whether the region as a whole has a significant cost disadvantage in long-distance liner services;

(c) service and cost disadvantages of smaller countries and territories may be inherent in the volume and nature of their trade and in the quality/efficiency of intra-regional transshipment services; and

(d) there is a potential for overinvestment in container terminals, particularly for the smaller ports, but also, to a significant extent, for some of the principal ports of the region (paras 3.35-3.38).

1.13 With regard to intra-regional maritime transport, the main findings of the review are:

(a) small countries and territories are affected adversely in local trade by the same factors that cause their disadvantage in extra-regional trade (para 1.12(c) preceding); and

(b) the future role of government-owned regional shipping lines should be defined and their services should be made more effective, within the context of general policies for all intra-regional services (para 3.39).

1.14 Despite major investments in maritime transport over the past decade, more than 40 proposals for development assistance have been made. However, virtually all require further definition before priorities and budgets can be determined, necessitating additional time and discussion (paras 3.40-3.41).

1.15 Several proposals in the areas of maintenance and navigational safety should receive priority attention. There are also selective improvements to existing terminal facilities, light cargo-handling equipment requirements, and technical assistance that should be considered for the smaller islands. Major investments in terminals, however, should await the outcome of a comprehensive review of regional maritime services (paras 3.42-3.44). -4-

D. Air Transport

1.16 Airlines are the principal carriers of passenger flows in the region. Both foreign and locally based carriers provide intra-regional services, but the larger foreign carriers handle a major proportion of the region's overseas and North American tourist traffic. Air freight is of minor importance as a revenue earner for airlines (paras 4.01-4.04).

1.17 With the completion of current projects, principal airports in the region can, for the most part, accommodate the traffic of extra-regional carriers. While there has been considerable investment in recent years in major terminals, a number of runway extensions and other improvements are currently under consideration. Airports of the smaller islands and territories, however, vary considerably in scale of facilities and sophistication of equip- ment, some having serious service deficiencies (paras 4.12-4.15), others need- ing development if tourism is to be encouraged.

1.18 With regard to extra-regional air transport for the Caribbean, the main findings of the review are:

(a) long-distance scheduled services are in adequate supply, at competitive rates;

(b) locally based carriers are competing to maintain or expand their share of the market and, for this purpose, desire to acquire more advanced jet aircraft and larger fleets;

(c) some of the small islands and territories need better tourist access through improvement of deficient transfer connections; and

(d) the capacity of major airports should be adequate for the medium term, with ongoing development actions, and the region is generally supplied with a high level of facilities when compared to other parts of the world with similar populations and growth rates.

1.19 With regard to intra-regional air transport of the Caribbean, the main findings of the review are:

(a) locally based airlines vary widely in service quality and efficiency and in economic viability;

(b) route structures and service schedules are in need of coordination, but establishment of a single, regional is not seen likely or desirable in the near future; and

(c) several small airports require minor improvements or relocation.

1.20 More than 20 proposals for assistance have been made in the course of this review for the air transport sector. Coordination of these proposals and more detailed definition will be required, in most cases, before specific actions are taken. In the allocation of resources, highest priority should be -5-

given to projects essential for operational safety and for improvements in operating efficiency, particularly for the smaller islands and territories. It is recommended that consideration also be given to the establishment of a Caribbean Air Transport Board and to a comprehensive analysis of intra- regional air services. For longer range developments, consideration should be given, through allocation of funds for studies, to additional capital investments at selected locations (paras 4.21-4.24).

II. BACKGROUND

A. Geographic and Institutional Definitions

2.01 For purposes of this report, the Caribbean region is broadly defined as the sea and land areas within and adjacent to the Caribbean Sea, including the coastal areas of Latin America from Guyana to Mexico, the U.S. Gulf Coast including the southern parts of Florida, and all the islands. Within this general region, there are countries and territories of major importance to transport (e.g., Puerto Rico, , , French Antilles) which are not covered under the proposed program of assistance.

2.02 The countries and territories specifically under review in this report are all located within the region, but they vary widely in size, population, level of economic activity and historical background. The English-speaking group, most of which belong to an economic integration organization (CARICOM), can be segregated into two subgroups -- the More Developed Countries (MDC's) and the Less Developed Countries (LDC's). The MDC's consist of Barbados, Guyana, Jamaica, and Trinidad/Tobago. The LDC's are Antigua, Belize, Dominica, Grenada, Montserrat, St. Kitts/Nevis Anguilla, St. Lucia and St. Vincent.

2.03 Haiti and the Dominican Republic share the island of Hispaniola and present two more historical/cultural traditions. Haiti is French-speaking while the Dominican Republic is Spanish-speaking, with close ties to other Latin American countries and to .

2.04 The Netherlands Antilles, consisting of , and Curacao, located close to the South American coast, and the Windward Islands, St. Maarten, and St. Eustatius, are joined through a special institutional arrangement with the Dutch Government.

B. Economic Environment

2.05 Contrasts in the Caribbean become more pronounced when economic factors are considered. The sizes of the countries and territories in this review range from countries with 16 square miles and 10,000 people to countries with 18,000 square miles and 5 million people, as well as to the mainland countries of Belize and Guyana. The Dutch-Antilles boast a per capita income of about US$2,000 and good social security, while Haiti's per capita income is about US$200, and practically no social security is provided. Within the CARICOM area, severe contrasts between the LDC's and MDC's are also evident. -6-

For example, Trinidad, an MDC, has a diversified and healthy oil-exporting economy, while the economic viability of several of the less-diversified LDC's is in serious doubt. Growth potential of the LDC's and MDC's range from 2% to 8%, as discussed in more detail in Annex 2. Capital availability alone is often not enough for the LDC's because severe absorptive capacity constraints are also present.

2.06 Most Caribbean countries and territories under review tend to look extra-regionally rather than intra-regionally in terms of their major markets, suppliers and transport linkages. Most economies are centered around one or two major exports, such as bauxite from Jamaica and Guyana, oil from Trinidad, refined oil products from the Netherlands Antilles, sugar from the Dominican Republic and the MDC's, or bananas from the Windward Islands to North American and European markets. They have relatively little to sell to each other: economies are competitive rather than complementary. Also, most compete in the area of tourism, a major component of foreign exchange earnings. While agricultural and industrial diversification (mainly for import substitu- tions and export industries) are popular concepts throughout the region, the realities are such that much work must often be done in the areas of developing national priorities, mobilizing resources, and organizing the necessary support services (such as roads, warehouses, marketing, financing, material inputs) before such diversification can be achieved.

C. Current Transport Development Assistance

2.07 Funds and technical assistance for transport infrastructure develop- ment are currently available from a variety of sources. Bilateral assistance is provided primarily by the (BDD, BESO) and (CIDA) largely to the CARICOM countries, by the U.S. and Canada to Haiti, by the Dutch Government to the Netherlands Antilles, and by the U.S. Government to the Dominican Republic and some CARICOM countries. Trinidad/Tobago and Venezuela have also become more important sources of bilateral aid in the region.

2.08 Most countries also receive multilateral aid from the United Nations Organizations (UNDP, UN-ECLA, IMCO, FAO), the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), the World Bank, IFC and IDA, OECD, and the European Development Fund. The CDB centers its lending activities on the needs of the smaller economies of the Eastern Caribbean and Belize, while the IDB and the World Bank have tended to focus on larger economies and larger projects, primarily in the Dominican Republic, Haiti, Jamaica and Guyana. All three banks have been involved in port and airport projects in the Caribbean, but the CDB gives priority in its lending policies to transport facilities and services projects because such projects are considered primary regional integration tools. About US$20 million, or 17.6% of the CDB's total lendings since its inception in 1970, has been spent on ports. CDB financing has also been made available to two CARICOM area transport services--US$6 million to WISCO, the regional shipping line, and US$6 million to LIAT, the regional airline. A current study of agricultural production and marketing systems in the LDCs, sponsored by CDB with USAID financing, includes an analysis of transport and handling options. - 7 -

2.09 The December Caribbean economic development conference was to improve upon past-efforts to coordinate aid programs. Prior to this conference, bilateral donors relied on their own knowledge of the needs of the Caribbean countries, including their current or former territories, in granting aid, and maintained informal lines of communication with other individual or agency donors working in the country. Multilateral donors relied on the recipient countries for an initial definition of need and then initiated or funded feasibility studies prior to actual funding. Since there are many donors currently operating in the Caribbean region, some overlapping as well as some non-complementary project funding is inevitable, especially where the recipient countries are not ready to present a clear statement of their development priorities and priority projects.

D. Transport Demand

2.10 A large amount of oil is both exported from Trinidad and transshipped, after refining, from there as well as from Aruba and Curacao (approximately 80 million tons in 1976). These volumes would dwarf all other cargo movements in the Caribbean; the following discussion excludes these tonnages because suitable transport facilities already exist.

2.11 Accurate estimates of the total available Caribbean export and import tonnage cannot be made because of the serious lack of standardized statistics available; however, partial statements can be made. For example, the current air/sea modal breakdown of cargo traffic is 1% to 99% respectively. Exports of sugar, rice, bauxite, and bananas amount to 20 million tons, and other exports about 5 million tons. Import tonnages are the most difficult to isolate since most statistics provide only their dollar values, but they are believed to be on the order of 5 million tons annually. Total available tonnage estimates for 1977 would thus approximate 30 million tons, over 80% of which moves through private bulk facilities. Approximately 90% of exports and 60% of imports involve North American and European markets (Annex 2).

2.12 Forecasts of agricultural and industrial exports can only be indica- tive since they are dependent on an aggregate of independent decisions. How- ever, it would be reasonable to relate projected annual growth rates to GDP and to arrive at 4% to 8% for the Dominican Republic, Netherlands Antilles, Belize and non-oil producing MDC's, and 2% to 5% for Haiti and most of the LDC's for extra-regional trade. For imports and intra-regional trade, the projections would be slightly lower because of the Caribbean region's lower rates of recovery from the worldwide economic downturn and the limited purchas- ing power of this small regional market.

2.13 The 1976 air/sea modal split for passenger movements, about two- thirds of which are tourist arrivals, is estimated at 3 million arrivals by air and 1 million arrivals by sea. 1/ If , which alone attracted

1/ Arrivals by sea are mostly passengers on cruise vessels which make multiple stops on each trip. The significance of air passenger arrivals is greater than is indicated by these figures since air visitors spend an average of six to eight days at their destination, whereas cruise ship visitors' stays are limited to a-few hours. -8-

I million visitors, are included, the number of arrivals approximates 5 million. The potential tourist market almost doubles if the tourist arrivals to the Cayman and , Puerto Rico, Guadaloupe, and Martinique are added to the arrivals of the area under review. A breakdown of 1976 tourist origins shows 50% from North America, 10% from Europe, 20% from Caribbean/Latin America, and 20% from all other areas. The countries and territories experiencing the steadiest increases in air and sea arrivals are the Dominican Republic, Haiti, St. Lucia, Trinidad, and the Dutch Antilles. No projections are available from cruise ship operators, but a sampling of air passenger statistics shows several optimistic trends. BWIA forecasts an 8.5% annual increase in its long-haul extra-regional traffic, and LIAT forecasts a 4% annual increase in its short-haul intra-regional traffic. These increases are generally lower than those forecast by foreign carriers. A summary of regional passenger movements is provided in Table 1.

III. MARITIME TRANSPORT

A. Shipping Services

3.01 The Caribbean region is a crossroads of major shipping lanes in the Western hemisphere, being traversed by movements through the Canal, and by traffic to and from Lake , the Mississippi and Orinoco Rivers and the northern coast of Central and South America; adjacent to it are the routes between major Atlantic ports of North and South America. The resulting density of services by ocean carriers in and through the region provides the basis for excellent trade connections with virtually all parts of the world and for transshipment points within the Caribbean.

3.02 Movements of crude oil, petroleum products and bauxite, comprising more than four-fifths of the total tonnage in Caribbean trade, are generally carried by vertically integrated producing, processing and marketing companies on their own or by chartered vessels and by a few independent carriers. These services are operated independently of common carriers in the region and utilize specialized, for the most part, privately owned terminal facilities. Two transshipment services are of major importance in the region: Venezuelan oil from Lake Maracaibo is brought to Curacao and Aruba for refining and transshipment to Europe and the U.S.; and bauxite from Guyana and Surinam is brought to Trinidad for transshipment to Canada and the U.S. In recent years, Aruba and Curacao have also received large quantities of Middle-Eastern oil for transshipment after the refining process.

3.03 Movements of sugar, rice and bananas, the primary agricultural exports of the region, are handled by several specialized services, but these frequently carry other types of cargo as well. Furthermore, there is a trend toward movement of bananas in refrigerated containers, on vessels carrying general cargo containers in liner service. All such services are therefore considered as part of the common carriers in extra-regional and intra-regional trade, which is the primary concern in this review. - 9-

(i) Extra-Regional Transport

3.04 The Caribbean region is served by over 50 steamship lines in extra- regional trade; almost all are foreign owned and based. They comprise conven- tional (break-bulk) general cargo vessels, combination break-bulk and container vessels, fully containerized services and roll-on/roll-off services.

3.05 Examples of some of the most important liner services in extra- regional trade with the countries under review are:

(a) Caribbean Overseas Line (CAROL), a consortium of four European steamship companies (UK, , , Netherlands) provides weekly service between seven European ports and ten Caribbean ports (including two in Central America); it currently operates a fleet of six new container ships.

(b) Columbus Line (subsidiary of a German line) operates three container vessels in monthly service between Australia, New Zealand and Jamaica, Trinidad and Barbados.

(c) Geest Line (UK), primarily in the banana trade, operates a weekly service between the UK, the four Windward Islands and Barbados, using four reefer vessels. It also carries intra- regional cargo on demand when space allows.

(d) Sea-Land (US) provides weekly container service on its basic route of New York-San Juan-Kingston--New Orleans-Kingston- San Juan-New York. Kingston is the main transshipment point for Central America and San Juan for its two Eastern Caribbean routes: a circular route between San Juan, Trinidad, Curacao, and and a feeder route by Caribbean Trailer Marine Transport (CTMT) from San Juan to the Windward and Leeward Islands. Gulf Caribbean Marine Lines, an affiliate of CTMT, provides warehouse barges and utilizes a pass-pass method of cargo handling on its route between Puerto Rico, the Dominican Republic, Haiti, Jamaica, Guatemala and Honduras.

(e) Seatrain (US) operates seven container vessels between U.S. ports, Haiti, the Dominican Republic, Puerto Rico, the Leeward Islands and Central America.

(f) Saguenay (Canada) provides frequent general cargo service between Canada, the U.K., and the Caribbean ports of Jamaica, Haiti, the Dominican Republic, the Windward and Leeward Islands, Barbados, Trinidad, Guyana, and Venezuela.

A summary of major liner services in the region is given in Table 2.

3.06 There are four major conferences in general cargo trade serving the region: (a) the Association of West Indies Trans-Atlantic Steamship Lines (WITASS), (b) the United States Atlantic and Gulf-Jamaica Conference, (c) the Leeward and Windward Islands and Conference, and (d) the Japan-Latin America Eastbound Freight Conference. The members of these conferences account - 10 -

for most of the region's extra-regional general cargo shipping services. Belize and the Bahamas are also covered by several other conferences which operate on routes including Bermuda and other Central and South American countries. The only regionally based carrier which is a member of any steam- ship conference at present is the Jamaica Banana Producers Steamship Co. Ltd. which participates in both WITASS and the closely associated United States Atlantic and Gulf-Jamaica Conference.

3.07 While there is little doubt that the region as a whole has an adequate supply of extra-regional liner services, the question of costs is raised frequently. In the course of this review, the contention was heard that general cargo freight rates for the Caribbean are abnormally high. It is not possible to evaluate this matter on the basis of the limited data obtained in the course of this review. 1/ In a previous analysis (1974), a joint UNDP/UNCTAD/IMCO mission used an average rate of 15% of the F.O.B. value of both exports and imports as a working hypothesis for the Caribbean, but cautioned that "it is extremely difficult to evaluate the amount of this freight bill." Even if this figure should be correct, it would be difficult to conclude whether it is high or low in comparison with other services of comparable distance, commodity composition, volume and service characteristics. The factors considered in setting conference rates are extremely complex and frequently not accessible for outside examination and comparison. 2/

3.08 The implications of high freight rates for the Caribbean could be significant. They have, for example, led to the suggestion that it may be desirable to establish a regional shipping line for extra-regional trade to counterbalance the powers of the conferences, provide a "yardstick" for measur- ing the reasonableness of present rates, and provide a stimulus to regional economic development and export trade. This matter was the subject of prelim- inary feasibility studies by CARIFTA (the predecessor of CARICOM) and is now under study by the CARICOM Secretariat. It was on the agenda of that organiza- tion's Standing Committee of Ministers Responsible for Transportation at its meeting in November 1977. Additional time was then granted the Secretariat to complete a first phase of the studies which, after discussion by the Standing Committee, would lead to the beginning of a second phase study by the CDB. Pending completion and analysis of these studies, no judgments can be made regarding the desirability and feasibility of establishing such a shipping line for extra-regional trade; however, given the limited progress to date in developing a significant measure of agreement on coordination and integra- tion of regional transport policy, establishing a shipping line could be an extremely difficult task.

1/ An indication was given that rates from Europe to most East Coast U.S. ports are in general about US$20 per ton higher than Europe to Curacao rates, while Europe to rates averaged about US$30 lower than those to Curacao.

2/ Committees of the United States Congress have on several occasions investigated this subject in attempts to determine whether U.S. exports are disadvantaged in competition with other source-of-supply countries and also to determine the reasons for disparities between inbound and outbound rates of similar commodities from the same overseas origins/ destinations. On each occasion, the results have been inconclusive. - Li -

(ii) Intra-Regional Transport

3.09 The only standardized data available are for the CARICOM area, where intra-regional shipping services are provided by extra-regional carriers, by WISCO 1/ and by small vessels and schooners. WISCO competes with both groups: with the extra-regional carriers in direct traffic between MDC's (particularly Jamaica and Trinidad) and with the small vessels in trade between MDC's and LDC's and among the LDC's. The total volume of intra-regional trade for 1976 is on the order of 400,000 freight tons annually (Table 3 and Annex 2). Of this total, the extra-regional carriers in 1976 handled 19%, WISCO handled 17%, and the small vessels 64%. For 1977, a joint paper by ECLA/CARICOM indicates these ratios as 25%, 15% and 60% respectively.

3.10 The extra-regional carriers appear to play a significant and increas- ingly important role in intra-regional traffic. Several foreign carriers reportedly are planning feeder services that could well handle a combination of transshipment and inter-island traffic. The future scope and role of these services are among the issues requiring further investigation and analysis as part of the development of a comprehensive regional transport policy.

3.11 In this context, consideration should also be given to recent and potential new entries into the field of intra-regional transport. For instance, NAMUCAR 2/ began operations in 1976 with three chartered vessels (in the 5,000 to 7,000 dwt range) in the Caribbean; it provides scheduled services among the seven owner states and to the Dominican Republic and U.S. ports. NAMUCAR and WISCO are reportedly intended to be complementary rather than competitive. In another development, Flota Mercante Grancolombiana, in early 1978, introduced a new regional service (for a six-month trial period) between the Colombian ports of Cartagena and and ports in Jamaica, Haiti, the Dominican Republic, Puerto Rico and Trinidad.

3.12 Neither WISCO nor NAMUCAR is a profitable venture at present. WISCO's mandate is to establish, operate and maintain an adequate, regular and efficient intra-regional shipping service between CARICOM member states, with possible expansion of its service to non-member states inside and outside the Caribbean. It is to cover its investment, operating and maintenance costs from rate-revenue earnings. These earnings, however, have never been suffi- cient to cover such costs, and provisions were therefore made to cover annual

1/ The West Indian Steamship Company, originally established in 1950 and now owned and operated by CARICOM member governments as follows: Trinidad 40%; Jamaica 30%; Barbados 10%; Guyana 10%; and Grenada, St. Lucia, Antigua, St. Kitts/Nevis, Dominica and Montserrat, 10%.

2/ Naviera Multinacional del Caribe, S.A., established in 1975 by seven Caribbean states (, Cuba, Jamaica, Mexico, Nicaragua, , and Venezuela), with an initial equity capital of US$30 million. - 12 - deficits in ratio to each member's subscribed share capital. NAMUCAR, with a mandate similar to WISCO's, reportedly lost US$1 million in its first year of operations.

3.13 On the other hand, the small vessel fleet is in the transport business for profit. "Small" vessels are defined as ships under 500 net registered tons, but most are much smaller. They include wooden sailing boats (schooners), wooden sailing boats with auxiliary motors and metal-hulled motor boats. "They perform a vital transport function in the CARICOM region, particularly among the LDC's, in that they cater for the needs of merchants who have only small quantities of cargo to offer for shipment, and at a frequency with which other regional (liner) carriers would find it difficult to operate efficiently." 1/ In 1975, there were 149 such vessels in use, all privately owned (137 by CARICOM nationals). The vessels had an average size of about 46 NRT, and many are reported to operate at low standards of safety. In the past, their access to credit facilities for financing of upgrading and replacement has been limited, but this situation appears to be improving, at least in the LDC's, where governments provide financial assistance. Recently, the Standing Committee of Ministers Reponsible for Transportation directed its Secretariat to study the small vessel shipping problem and explore ways of providing assistance (financial or otherwise) by (a) increasing the access of owner/ operators to credit facilities and (b) strengthening their position vis-a-vis insurance companies.

B. Port Facilities

3.14 Given the wide range of existing port facilities in the countries and territories covered by this review, a detailed assessment of the quality and capacity of individual terminals in the region could not be made. As indicated in Table 4, there are 18 principal public ports with more than 120 berths for ocean vessels; in addition (not shown on Table 4), there are numerous privately owned terminals (such as petroleum, mining and industrial facilities), a significant number of secondary ports, and ports of nearby countries and territories (San Juan, Puerto Rico; Miami, Florida; Point-a-Pitre, Guadaloupe) which serve transshipment cargo in the region. The following paragraphs provide a brief outline of the port situation at principal terminals covered in this review.

(i) CARICOM-MDC Ports

3.15 The port of , Barbados is in the process o- being expanded (with IDB financing) by the addition of a new container terminal, bulk cargo facility, sheds and inter-island vessel facilities. The major improvement program nearing completion is believed to satisfy the island's needs for the next 10-12 years, depending in part, on the volume of transshipment cargo the port will attract in the future. Consideration is being given to the acquisi- tion of a container crane.

1/ Quotation from "Report of Study of CARICOM Small Vessel Fleet," by CARICOM Secretariat; November 1976 - 13 -

3. 16 The port of Georgetown., Guyana is plagued by a number of problems. Entrance depthls to the port are iimited by coastal drift and siltation at the mouth of itheDemerara River, 1/ and many terminals appeared to be poorly main- tained. They also lack modern cargo-handling equipment, and efficiency is reported to be low. Improved maintenance appears to be a priority in the short term, and a majcr replacement program of terminal facilities should be considered for the long term. However, major investment in port development should he preceded by a comprehensive evaluation of exi.sting conditions, a forecast of future trade requirements, an assessment of port operations and adminiStration aad oreparation of a master plan for the port of Georgetown. These and other study requiremants were outlined in a 1976 consultant report on tie wate.way scrvices of the Transport and Harbor Department, financed by U:ND) ?.

3.;7 Jamaica's port of Kingston is a major terminal, with an active free-trade zone and modern facilities for container handling. The port saw extensive use as a transshipment point during a recent 60-day dock strike in U.S- p'orts (late 1977); in this peak period, container storage capacity was eXpan.ied in the port.

3.10o Port-of-Spain, Trinidad is the only major port in the region with a serious current congestion problem. While terminal facilities have been expanded in recent years and additional development is in progress, ships frequently have to spend up to 10 days waiting for berths. The port is currently operating under a 30% surcharge by shipping conferences as a result of congested conditions.

(ii) CARICOM-LDC Ports

3.19 Antigua's port of St. John has a three-berth general cargo facility, completed in 1969 with financial assistance from USAID; this appears to be adequate for present and prospective traffic. A current urgent need is channel dredging. Uther proposals include purchase of a container crane, construction of a roll-on/roll-off (ro-ro) berth, and extension of the transshipment area.

3.20 The port at Belize City is still a lighterage port, but construction is under way, with financial assistance from CDB, on an entirely new port, several miles away, which will include a concrete jetty to 19-foot water depth with a general cargo berth and a ro-ro platform. Land has been reclaimed for open and covered storage. Containers will be handled by mobile crane.

3.21 The new deepwater port at Woodbridge Bay, Dominica, has been com- pleted with financial assistance from CDB; backup covered and open storage facilities should be finished by June. Container handling is to be provided with new Canadian equipment, but indications are that it will not be delivered until early 1979. The port is currently restricted in its cargo-handling

1/ A special situation exists at this coast, due to a phenomenon known as "sling mud," on which studies have been made by the Dutch firm NEDECO. At the entrance bar, draft limitations are about 15 feet at low tide ancl about 21 feet at high tide; for this reason, Georgetown is generally the last port of call for vessels in overseas trade. - 14 - capability and urgently needs some interim equipment. Venezuela has been working with the port authority concerning possible terminal expansion, to include a ro-ro ramp, reefer shed and offices.

3.22 St. George's Harbour in Grenada has a two-berth pier for general cargo, but has no container-handling equipment. If containers are unloaded by ship's gear, they are stripped at ship's side and cargo is moved by hand truck. Immediate needs of the port authority are for pallet and container- handling equipment. A prefeasibility study for port development, including navaids, a ro-ro ramp, small vessel wharf, and staff training, has recently been approved by the CDB.

3.23 Plymouth, Montserrat is still a lighterage port, but an upgraded wharf will be operational later this year, financed primarily by the UK and Canada. The facility will provide a 150-foot pier with three mooring dolphins capable of handling vessels up to 500 feet in length, and 24 feet of water alongside. Land reclamation for container storage and a ro-ro facility have been completed. Acquisition of requisite mobile equipment is expected to be approved.

3.24 St. Kitts' port at is also a lighterage port, but CIDA and the CDB have agreed to finance construction of a new deepwater pier capable of accommodating vessels of up to 34-foot draft with one ro-ro berth. Plans have yet to be formalized.

3.25 St. Lucia currently has two ports -- at and Vieux-Fort -- but a possible third one is being discussed for Cul-de-Sac Bay, where a Free- Trade Zone is under study. Development emphasis is now on Castries, where a new container terminal is to be completed by September 1978 with financial assistance from CDB. It includes three berths, a transit shed, a reefer shed, 20 acres of upland storage area and cargo-handling equipment since Castries hopes to attract significant transshipment tonnages. A feasibility study has been proposed to determine whether a new cruise ship pier should be constructed on the opposite side of the harbor. At Vieux-Fort, extension of the jetty has been discussed, but the current emphasis is on improved efficiency of opera- tions.

3.26 , St. Vincent has a 900-foot deepwater wharf and backup storage facilities. A proposal for extending this wharf has been discussed with the CDB, along with the need for another cargo shed and miscellaneous paving, fendering, and building renovations. A new ro-ro ramp is being con- structed by the Government to accommodate ODM's gift of a new 100-ton ro-ro vessel for Grenadine Islands trade and development. Immediate needs are for additional breakbulk transfer equipment and a mobile container crane and trailers. Eighteen acres of reclaimed land along the harbor's foreshore are available for development.

(iii) Dominican Republic

3.27 The principal public port for the Dominican Republic is being developed at Rio Haina near Santo Domingo, where a three-berth container terminal is being designed. Construction is to start in the near future, - 15 - with financial assistance from IDB. This port, which already serves as the country's container terminal for CAROL and Sealand lines, is expected, upon completion, to handle most of the general cargo now moving through terminals at Santo Domingo, as well as additional container traffic. The IDB-financed project also provides for the establishment of a National Ports Authority, which will initially operate Haina and terminals in Santo Domingo, but may eventually take responsibility for other ports in the country.

3.28 On the north coast of the Dominican Republic, a possible component of a second tourism development project proposed to be financed by the World Bank includes a jetty for cruise vessels and a marina. Final design is expected to be completed by May 1978.

3.29 A national transport survey of the Dominican Republic has recently been completed by consultants whose draft report is now under review by the Government. The report indicates a need for analysis of future port require- ments of the entire country, on the basis of an improved system of data collection on transport movements and with a view towards reducing the total number of ports at which foreign commerce is handled (the country has a total of 14 ports, of which 11 are classified as "international"). While there is no need for expansion of port capacity beyond the ongoing projects, rehab- ilitation of some existing port facilities and related equipment acquisition may be required; furthermore, the establishment of a transport data collection system is considered important for future port planning.

(iv) Haiti

3.30 At Port-au-Prince, the principal public port of the Republic of Haiti, a new, two-berth general cargo and container wharf is nearing comple- tion with financial assistance from IDB, while reconstruction work has been started recently on an adjacent, older finger pier. These improvements are expected to provide the foreign trade terminal capacity needed at this port through 1985.

3.31 A national transport survey of Haiti, completed in 1977 with UNDP financial assistance, recommended government support for the improvement of domestic coastal shipping services and ports as an economical alternative to construction of costly access roads serving isolated communities and agri- cultural production areas near the coast. In response to this recommendation, the government has initiated engineering work for construction of three pilot terminals for coastal shipping, at Port-au-Prince, Jeremie, and Port-de-Paix; these ports are not intended for use by intra-regional shipping. Financial assistance for the construction of the .hree terminals is currently being con- sidered by IDA; in the credit for this project, funds would also be provided for preinvestment work on (a) additional coastal shipping port improvements (for which UNDP support is also being considered) and (b) improvements for the port of Cap Haitien, where expansion of commercial and tourist terminal facilities has been recommended.

3.32 For foreign and domestic shipping services in Haitian waters, the improvement of navigational aids, the updating of navigation charts, and the provision of auxiliary services to vessels are considered to be of high priority. - 16 -

(v) Netherlands Antilles

3.33 The extensive port facilities already existing on the island of Curacao, which has the region's deepest harbors, are being supplemented by the construction of a two-berth container terminal in . The landfill for this project has been started recently with financial assistance from the Government of the Netherlands. The port, which handles a relatively small amount of general cargo (compared with its bulk oil traffic), will have the capacity to serve as a major transshipment point in the Caribbean region.

3.34 The island of Aruba, which also has major deepwater port facilities (but none for handling containers), has reportedly applied to the government of the Netherlands for financial assistance in the construction of a one-berth container terminal. The matter is still under consideration.

C. Policy and Investment Implications

3.35 There appears to be an adequate supply of extra-regional maritime services to and from the Caribbean, and it is evident that the principal ports of the region will have sufficient capacity in the near term to handle pro- spective foreign trade after currently funded expansion projects have been completed -- with the exceptions of , Trinidad and Georgetown, Guyana. It has not been possible, however, to determine in the course of this review whether the conference rates of international shipping services to principal regional ports are excessively high, as is frequently asserted; neither has it been possible to conclude whether inefficiencies in these ports play a significant role in setting such rates.

3.36 Some smaller islands and territories in the region (CARICOM LDC's) have an obvious disadvantage in extra-regional foreign trade, with respect to both quality and cost of maritime services which frequently involve trans- shipment. Several of the islands also have port capacity constraints, but the type and amount of justifiable investment in certain proposed terminal facilities will depend on the characteristics of services to be developed in the Caribbean for both extra- and intra-regional maritime trade.

3.37 There is an obvious potential for over-investment in container terminals within the region. All islands and territories would like to have direct liner services to overseas trading partners and, therefore, compete for resources to build terminals that would allow large, modern vessels to load and discharge directly and efficiently. It is doubtful, how- ever, that such services would materialize for the smaller ports, even if major investments in terminals were made, because the costs of vessels now involved in ocean trade prohibit frequent stops for small volumes of cargo; for container vessels of the larger sizes (over 20,000 DWT), the costs in port are US$20,000 per day (Table 5).

3.38 A potential for overinvestment in container terminals also exists at principal ports of the larger countries in the region, which compete for market shares of the transshipment trade, since it is evident that (a) the total number of "load center" ports that extra-regional carriers can effec- tively serve is limited and (b) the locations where "load center" ports could - 17 -

successfully operate will depend on the intra-regional distribution system. Definition of the latter system by the governments concerned, in close consul- tation with major liner services, is therefore considered a prerequisite for future investment decisions on expansion of container terminals in most of the region's principal ports.

3.39 Key issues in the development of policies for future intra- regional shipping will be the roles of NAMJCAR and WISCO, e.g., their route and tariff structures, service frequencies, fleet composition, and competi- tive posture toward both the small vessels serving the region and the sub- sidiary services of extra-regional carriers. A related but entirely separate issue is the question of establishing a regional for long- distance routes (para 3.08).

D. Opportunities for Development Assistance

3.40 This review has confirmed that significant development has taken place during the past decade in the maritime transport sector of the Caribbean region, resulting in a large number of projects (predominantly public port terminals) which have been completed recently or are in progress, with funding from bilateral or international sources. Future assistance to maritime transport should focus, in the first instance, on complementary projects designed to ensure effective utilization of the investments already made. There are a few areas, however, where additional major investment may also be justified in the next five years.

3.41 In the course of this review, over 40 proposals or suggestions for additional investment projects and other forms of assistance to maritime transport have been made, either by the agencies contacted or by members of the review team; the total cost would be on the order of US$130 million. The proposals are listed in Annex 3 and those considered by the review team as being of highest priority for regional transport are noted with (*). The vast majority of these proposals require further definition and discussion with the responsible agencies before (a) judgments can be made regarding project priority or (b) funds can be allocated for the initiation of assistance. In particular, sufficient time should be spent on the design and preparation of study proposals to ensure proper focus, effective collaboration with public and private agencies concerned, and correct sizing of foreign assistance and local counterpart budgets.

3.42 With the above reservations, a general statement can be made concerning the areas in which assistance to maritime transport in the region would be most appropriate. There are several proposals in the area of maintenance and navigation safety which should be addressed; these include dredging of harbor channels in several of the smaller islands harbors (Antigua, St. Lucia) and navigation aids (Haiti). The rehabilitation of terminal facili- ties and channels in Guyana is also in this category, but should probably be undertaken as part of a comprehensive development planning and management improvement effort, if the Government of Guyana considers this work of suffi- cient priority. - 18 -

3.43 Selective improvement of existing terminal facilities at a few principal ports and-expansion (through provision of ro-ro facilities or additional berthing facilities) at several of the small island ports, together with light cargo-handling equipment and auxiliary shore facilities, should also be considered. However, it is in the area of major civil works for this purpose that the potential for overinvestment exists, and it is therefore suggested that civil works projects of this type, on which funding has not yet been committed, be held in abeyance until a comprehensive analysis of the regional container distribution system and of "load center" ports has been made. Such analysis is considered to be one of the highest priority items for maritime transport in the region.

3.44 In addition, there are a number of technical and management assistance projects and training needs for port operators and administrators which appear to be urgent for improving the functioning of existing ports and for vessel operations. Regarding the latter, assistance to the small vessel fleet and to WISCO is considered to be of high priority (see Annex 3, items 1.03 and 1.06).

IV. AIR TRANiSPORT

A. Air Services

4.01 Airline services are the mode of the principal passenger flows throughout the Caribbean Region, both on intra- and extra-regional routes. They provide the means for the great majority of arrivals, on business as well as holiday journeys.

4.02 Intra-regional services are provided by BWIA based in Trinidad; by ALM based in Curacao; by LIAT, the multi-government-owned carrier, based in Antigua; and by PRINAIR based in San Juan; however, other airlines operate in less extensive parts of the region. Thus Guyana Airlines, Belize Air Services, Dominicana Airlines, Haiti Air Inter, and Air BVI operate on a more restricted flight network with an emphasis on domestic services. A large number of small domestic operators also provide scheduled and charter services.

4.03 While these airlines provide important regional and inter-island services, most do not generate tourism on any scale from outside the region. These latter flows, which are of paramount importance to the development of tourist traffic from North and South America and Europe, are handled by the larger regional carriers such as BWIA and the specialized tourist carriers such as Air Jamaica, also by major overseas airlines from Europe and from North and South America. The overseas traffic has declined on most of the key sectors through 1974-1976, but signs of growth are apparent for 1976-1977. Air tourism from Europe and North America is expected to take a strong upward turn in 1978. In addition, the major international airlines are gradually extending their systems to new gateways. The Caribbean is thus well provided with extra-territorial links and offers a wide range of load-center facilities which act as gateways to the intra-island services of the regional air carriers and domestic island operators. - 19 -

4.04 Air cargo (freight and mail), as in the case of passenger movements, is carried primarily by extra-regional carriers. To date, the Caribbean regional carriers have generated very little revenue from this source. LIAT, for example, sometimes does not even have enough capacity to carry passenger baggage. Greater provision in aircraft capacity and keener atten- tion to the potential of this market are emerging gradually.

4.05 For the healthy development of air transport as an aid to tourism and to intra-Caribbean economic growth, the basic needs of the airlines are for an adequate supply of highly trained management and staff, efficient infrastructure in buildings and equipment, and aircraft well matched to the routes and sectors. Bilateral and multi-lateral assistance, especially from international organizations such as ICAO, seems to have been well used in the Caribbean, but the need will soon exist for more competitive aircraft on both long and short-haul routes. For example, BWIA and Air Jamaica plans are soon likely to include the acquisition of wide-body jets. In addition, once growth in tourism re-establishes itself--and there are strong signs of this in 1978--the major airlines will bring increasing pressure upon the regional carriers' capacity and upon the airport facilities as well (Table 6).

4.06 Great difficulty is encountered in operating very short sectors, such as LIAT's or Winair's, with any type of aircraft and with even the best management. Short-haul operators have fundamentally different problems from the long-haul international carriers. These are:

- Low revenue flying hours due to short flight sectors.

- High fuel costs due to a high proportion of air time spent on climb and descent.

- High maintenance costs on engine systems and undercarriage items due to high frequency landing cycles.

- Poor schedule-keeping due to frequent ground cycling and the temptation to economize (increase utilization and revenue) by planning too tight a schedule.

Finally, regional carrier fares in the Caribbean are generally low and do not always reflect the cost of service, whereas the large worldwide operator has other high density routes on which to obtain most of his revenues. Thus a major problem for the regional airlines is the competition from the interna- tional airlines of the U.S., Canada and Europe, which can jump over the intermediate islands and make free use of bilateral agreements.

4.07 The tariffs of the principal international carriers, as well as the incentive fares schemes, are set up within the framework of the Inter- national Air Transport Association (IATA). When an airline is not a member, competition is, in fact, a principal arbiter of its fares.

4.08 Tourism to the larger centers of Barbados, Trinidad, Jamaica, Antigua, the Netherlands Antilles, etc., is gradually becoming dominated by the inclusive fares, which are used also by businessmen and which can be - 20 - expected to be the major ingredient of the long-haul jet operators' revenue. These may be provided on scheduled flights or on special charter flights which, with some large operators, amount to a schedule of charters.

4.09 Fare levels and, hence, airline revenues have been reduced in real terms with the falloff of tourist demand in 1975-1976. Earlier (1965-1972), introduction of large four-engine jets allowed lower fares without airline revenue loss because of lower direct operating costs. Inflation in fuel price and wages has since cut sharply into airline profitability, and increased fares are likely in 1978-1979 as the tourist flow increases again. The next generation of wide-body jets is not likely to result in another substantial reduction of unit costs and fares, but tourists will probably gain from the inherent advantages of scale by the fact that growth in airline costs will be held to a rate well below the rates of inflation in North America and Europe.

4.10 Fare levels of the intra-regional carriers will be more difficult to control. They are at present at a level well below the cost of operation, which is always high on short flight stages, and reflect the competitive add-on cost charged by the long-haul operators. Since competition is intense, fare increases may be difficult to implement. The long term economic health of the carrier necessitates the charging of fares which closely reflect the cost of the most efficient operators.

4.11 LIAT's ground operating costs are higher than average, possibly because it supports comparatively more ground personnel than other carriers. Since most of LIAT's segments are only 15-30 minutes, reducing the number of cabin attendants might also be investigated as a way to reduce operating costs. The possibility of pooling services with other airlines may also result in cost reductions.

B. Airport Facilities

4.12 The scale of air transport movements (in aircraft, passenger and cargo) is reflected in the ground infrastructure (airport terminals, runways, aprons, car parks, roads and air navigational aids) which needs to be estab- lished to handle it. Clearly, the lesser movements generated by the smaller islands will set requirements on a less ambitious scale, with less sophistica- ted equipment and ground aids. In practice, the less ambitious facilities will create more of a problem in economic viability since secondary revenues (from concessions) provide a major source of revenue at the larger airports.

4.13 In the Caribbean, airport facilities vary from the simplest island STOL strip of less than 2,000 feet on the Grenadines to the runways at Barbados, Santo Domingo, Nassau, and Curacao, which can handle most types of long-haul transport. With the high standards of facility in these and other gateway islands such as Guadaloupe and Puerto Rico, the region has a well- dispersed series of gateways from North America, South America, and Europe. A number of significant air hubs, however, still need runway extension. Trinidad's Piarco Airport, Jamaica's airports at Kingston and , St. Lucia's Hewanorra Airport, Antigua's Coolidge Airport and Francois Duvalier in Haiti lie in this category since they are unable to offer full- weight operations on long-haul flights to wide-body jets. However, because - 21-

the U.S. and Canadian flights are shorter than the European and because North America now dominates the extra-territorial Caribbean market, it may be wise to defer costly runway development until the European market has developed further (Table 7).

4.14 Major terminals, taxiways, apron and access roads have been under active development throughout the Caribbean in the last 10 years, with aid both from individual donor powers which favor particular projects and with grants and loans from international agencies. Even so, there are still some ongoing programs, the largest being at Piarco (Port-of-Spain) where a two- phased program is currently resulting in the total replacement of the existing passenger terminal on the opposite side of the airport and other new ground facilities. Since the lead time in major airport projects is five years or longer, studies well in advance of the likely demand date are essential. In Trinidad, Grenada and Jamaica, the need for supplementary development is recognized because congestion and/or operational restrictions are already in evidence. In the Dominican Republic, there is a need to develop a master plan for the principal international airport, which may reach satura- tion in 1980-1981. Facilities in Belize and Guyana are just adequate for current air traffic levels and should be upgraded as soon as possible to make ready for growth in the 1980's. A wider assessment of the long-term needs of the region could be well justified today because the hiatus in tourist growth appears to be nearing an end and because the airlines are currently preparing for their next expansive phase, with a new generation of jet aircraft anticipated in the early-to-mid-1980's.

4.15 Smaller airfields may have just as urgent a need for development as the major airports. The requirements for night landings, lighting and navigational and approach aids may prove to be essential in order to sustain the flexibility of a short-haul operator such as Haiti Air Inter, LIAT or PRINAIR. Problems also arise through poor approach paths over adverse terrain. This matter, together with the difficulty in siting adequate lighting, has created problems at Dominica and Grenada. At St. Vincent, the current airport lighting project and road diversion should assist consider- ably in improving the operational usability and safety of Arnos Vale. In Guyana and Belize, phased agricultural/industrial projects and settlements in the interior can be aided by developing airstrips and landing cargo aircraft with building materials and equipment. Finally, general aviation, including air taxi companies and private light aircraft, will continue to grow in the Caribbean as elsewhere, but basic strips and small aprons will be all that is called for in the next five years to provide daylight air links between the smaller islands.

C. Policy and Investment Implications

4.16 Explicit agreement on mutual consultation, coordination and collabora- tion on selected joint enterprises seems to be the most effective policy for aviation in the Caribbean over the next five years. The uniquely diverse character of the Caribbean Islands and peripheral states makes it clear that no single air transport undertaking could meet their individual and separate requirements. The differing stages of economic developments, the significance of tourism, the limited local financial and trained human resources available, - 22 - and the geopolitical location are all factors militating against a single, standard approach to air transport needs. Nor can one discount the effect of the many historic extra-regional linkages. The basic need is to recognize and coordinate the diversity of civil aviation enterprises and to assist where shortfalls in aircraft, infrastructure and technical expertise can be identified.

4.17 An important step in this direction, supported by governments and private enterprise, would be the establishment of a Caribbean Air Transport Board. Besides working to standardize and upgrade procedures and practices, such a Board would be in a stronger position to negotiate with extra-regional carriers and the UK-CAA and US-CAB to retain more profitable routes for the regional carriers. Coordinating the elements of a regionally accepted and adhered-to aviation transport policy would be the long-term objective of the Board.

4.18 A coordinated policy including the major extra-regional carriers would be greatly favored by the regional carriers since low-priced tours using large jets may encourage visitors in certain sectors of the market; however, there may be a surprisingly small net gain to the Caribbean countries concerned. BWIA, LIAT and ALM cannot themselves so readily penetrate the mid-west areas of the U.S., Canada, and the Western European market. Also, they need schedules and routes that are well coordinated with extra-regional carrier arrivals.

4.19 Extra-regional, long-distance air services were found to be in adequate supply at rates competitive with those to similar destinations in other regions. Further development of the U.S. carrier routes is imminent, and the Civil Aeronautics Board has recently defined the scope of a Caribbean Route Study. Since this study could have policy and investment implications for the regional carriers and the facilities in the region, it should be followed closely by the Caribbean aviation sector and the Caribbean govern- ments. The region's carriers or governments may want to participate since the carriers are competing for larger market shares and intend to purchase larger jets, and many governments' policies are to foster tourism on a larger scale. While the larger airports have adequate capacity, the possible implications for further facility development are evident, especially with regard to improved tourist access or transfer connections to the smaller islands.

4.20 The establishment of a regional airline of the Caribbean is not seen as likely in the near future since this region needs several separate foci for air transport development to match the varying levels of economic development and to serve the different tourist/business potentials of each area. There is need, however, for a greater degree of discussion on planning, schedule coordination, aircraft type selection and spare parts provisioning, for joint ownership of services and facilities (e.g., reservations systems and training) and for investment in minor improvements to the smaller airports. A number of organizations are already providing services and joint facilities for aviation in the region, such as the Caribbean Tourism Research Center (Barbados), the Caribbean Aviation Training Institute (Trinidad), and the various Civil Aviation Directorates of the Flight Information Regions. ICAO will continue to be a major - 23 - coordinating factor at political and technical/operational levels, thus contributing to regional unity and standardization in the civil aviation field. Fuller attention still needs to be given, however, to the raising of technical and operational training levels throughout the region. Likewise, a study might be undertaken of the feasibility of forming a consortium of nationally owned airlines of CARICOM countries flying passengers and/or cargo, both within and outside the region.

D. Opportunities for Development Assistance

4.21 As stated above, there has been a rather active program of air facilities development in the Caribbean region by both individual donor nations and international organizations. However, there are some signif- icant areas where the need for additional study, investment, or technical assistance still exists and should be confirmed. These can be classified as projects which are (a) essential for safety of operations, (b) necessary for economic efficiency, and (c) needed to achieve growth and/or public convenience. A summary of these proposals is given in the following paragraphs, and details are given in Annex 4. The total cost would be in the order of US$200 million. Those considered by the review team as being of highest priority for regional transport are noted with (*).

4.22 Those projects essential for safety of operations are primarily in the areas of basic, practical fire and rescue training and equipment, communications and navigational equipment (to ICAO standards), and airport management/staff training. The most urgent needs of this type occur on the smaller islands. Additionally, it is considered urgent that LIAT replace its obsolescent aircraft and add to its existing intensely utilized fleet.

4.23 Projects necessary for economic efficiency include studying the advantage of establishing a Caribbean Air Transport Board (CATB) and studying route structures, scheduling, fleet utilization and future fleet requirements of intra-regional carriers. The CATB responsibilities could include over- seeing bilateral agreements with extra-regional carriers, advising on fares and freight rates, regulating air route licensing within the region, and offering guidance on future facility and service planning. The Board would work closely with agencies such as ICAO, CAA, and FAA, and permanent staff might number 15 to 20. A second study proposal arises partially out of the plans of three of the region's carriers to expand and diversify their fleets (in response to anticipated increased tourist demand) and partially out of the fact that intra-regional feeder connections are not well coordinated with the major extra-regional carriers' schedules. A subproject would involve studying the feasibility of a hovercraft/hydrofoil service for both passengers and freight, to determine whether this could provide a least-cost solution for certain transport services in the region and, therefore, be an alternative to air services.

4.24 Growth and public convenience projects include studies on additional capital investment in airport facilities in Grenada, Belize, and Haiti, as well as the feasibility of constructing several small air freight facilities throughout the region. In addition, national airport master plans should be drawn up, for countries where capacity constraints could occur by the early 1980's. - 24 - TABLE 1 Page 1 of 2

CARIBBEAN REGIONAL TRANSPORT REVIEW

REGIONAL PASSENGER MOVEMENTS

1976 Visitor Arrivals * 7 Change By Air By Sea Country (Stayover) (Day Trips) TOTAL from 1975

CARICOM: Antigua 56,398 32,385 88,783 + 1% Barbados 224,314 99,406 323,720 + 1% Belize (est.) 10,000 -0- 10,000 + 1% Dominica 20,884 1,908 22,792 +34% Grenada 22,856 106,882 129,738 +22% Guyana 120,042 -0- 120,042 +12% Jamaica 326,780 143,008 469,788 -15% Montserrat 9,605 1,207 10,812 -10% St. Kitts/Nevis/Anguilla 14,684 3,056 17,740 - 9% St. Lucia 53,826 69,084 122,910 +23% St. Vincent 17,177 15,592 32,769 -12% Trinidad & Tobago 153,660 NA 153,660 +15%

Dominican Republic 259,763 NA 259,763 12%

Haiti 85,918 201,808 287,726 + 4% Netherlands Antilles: Aruba 139,846 67,735 207,581 +11% Bonaire 10,273 5,973 16,246 +27% Curacao 118,858 178,109 296,967 + 5% St. Maarten/Saba/Eustatius 163,301 89,252 252,553 +41%

Sub-total 1,808,185 1,015,405 2,823,590 (64%) (36%) (100%) Bahamas 939,910 404,620 1,344,530

Total 2,748,095 1,420,025 4,168,120 (66%) (34%) (100%)

* Does not include stayover arrivals by sea, which equal approximately 2% of total visitors.

Source: Caribbean Tourism Association. Report of Tourist Travel to the Caribbean for 1976, September 1977.

March 1978 CARIBBEAN REGIONAL TRANSPORT REVIEW

REGIONAL PASSENGER MOVEMENTS

1976 Origins of Air Arrival Visitors Caribbean/ Country USA Canada Europe Latin America All Others Total CARICOM:

Antigua 22,891 8,066 6,425 15,310 3,706 56,398 Barbados 56,041 73,005 43,627 44,949 7,692 224,314 Belize (est.) * * * * * 10,000 Dominica 1,715 740 4,594 8,556 5,279 20,884 Grenada 6,095 2,509 2,818 8,633 2,801 22,856 Guyana * * * * * 120,042 Jamaica 229,338 48,516 27,473 14,923 8,382 326,780 Montserrat 3,524 1,539 945 * 3,597 9,605 St. Kitts/Nevis/Anguilla 4,127 1,261 993 7,670 633 14,684 St. Lucia 13,852 11,214 13,619 14,438 703 53,826 St. Vincent 5,203 1,424 1,186 7,097 2,267 17,177 I Trinidad & Tobago 38,950 16,560 15,410 82,710 30 153,660

Dominican Republic * * * * * 259,763

Haiti 47,203 10,639 14,668 12,120 1,288 85,918

Netherland Antilles Aruba 94,780 * 601 1,334 43,131 139,846 Bonaire 3,585 120 * 4,583 1,985 10,273 Curacao 33,219 1,882 2,436 50,536 30,785 118,858 St. Maarten/Saba/Eustatia * * * * * 163,301

Subtotal 1,968,622

Bahamas 706,670 143,220 60,870 * 29,150 = 939,910

CRTR Area Total 2,748,095

* No disaggregation available.

0 Source: Caribbean Tourism Association. Report of Tourist Travel to the Caribbean for 1976, September 1977. H

March 1978 CARIBBEAN REGIONAL TRANSPORT REVIEW

PRINCIPAL MARITIME SERVICES IN THE REGION

Major Liner Services

Carrier Regional Ports Served (average monthly callings) Type of Service

Sea Land (US) Jamaica (10), Trinidad (4), Dominican Republic (12), Haiti (4), Curacao (4) Container Atlantic (US) Windward/Leeward Islands (2) General Cargo Saguenay (Canada) Jamaica (2), Barbados (2), Trinidad (2), Windward/Leeward Islands (1) General Cargo Harrison (UK) + Antigua (2), Windward/Leeward Islands (1), Guyana (2) General Cargo Barbados (4), Trinidad (4), Curacao (1), Jamaica (2), Belize (1) KNSM (Netherlands) + Trinidad (6) Container Hapag-Lloyd (Germany)+ Barbados (2), Trinidad (2), Curacao (2). Aruba (2), Dominican Republic (2), Container Haiti (2), Jamaica (2) Booker (UK) St. Kitts (2), Antigua (2), St. Lucia (2), Trinidad (2), Guyana (2) General Cargo CGM (France) + Iuyana (2), Trinidad (2), Barbados (2), St. Maarten (2) Container CTMT (US) Dominican Republic (4), St. Maarten (2), St. Kitts (2), Antigua (2), Ro-Ro/Container St. Lucia (2), Dominica (2) Barge Geest (UK) Grenada (4), Dominica (4), St. Vincent (4), St. Lucia (4), Barbados (4) General Cargo Namucar (Costa Rica) Jamaica (2), Trinidad (2) General. Cargo WISCO (Trinidad) Guyana (3), Trinidad (2), Grenada (1), Barbados (1), St. Lucia (1), General Cargo Dominica (1), Montserrat (1), Antigua (1), St. Kitts (1), Jamaica (2) Gulf Caribbean (US) Dominican Republic, Haiti, Jamaica Combination/Barge 0' Grancolombiana (Columbia) Jamaica (1), Belize (1), Aruba (2), Curacao (2), Dominican Republic (1), Trinidad (1), Barbados (1), Haiti (1) Bank & Savill (UK) Jamaica, Barbados, Trinidad Combination/Bulk Zim (Israel) Jamaica Container Columbus Barbados, Jamaica, Trinidad Container Booth (UK) * General Cargo Royal Mail (UK) * General Cargo Alcoa (US) * General Cargo Delta (US) * General Cargo Prudential (US) * General Cargo Seatrain (US) *Haiti, Jamaica, Dominican Republic Container K-Line (Japan) * General Cargo Ned-Lloyd (Netherlands) * General Cargo Grancolombiana () Jamaica (1), Belize (1), Aruba (2), Curacao (2), Dominican Republic (1), Trinidad (1), Barbados (1), Haiti (I).

Details unavailable. + The Carol Service

Source: Individual companies: advertising and discussions.

March 1978 CARIBBEAN REGIONAL TRANSPORT REVIEW

CARICOH AREA FREIGHT MOVMEHNTS

Sunmary of Intra-Regional General Cargo Maritime Traffic October 1975 - September 1976 (Expressed in Freight tons)

St. KiLts/ Origin/Destination Cuyana Trinidad Barbados Jamaica Grenada St. Vincent St. Lucia Dominica Antigua Montserrat Nevi a Belize Haiti TOTAL

MDC' a: Guyana x 23,264 12,471 32,221 1,037 3,339 1,579 1,594 2,287 251 234 - - 78 817 Trinidad 51,100 x 37,034 45,789 19,452 14,785 17,999 3,269 6,162 2,131 3,437 1,508 520 203,186 Barbados 5,736 16,576 x - 2,434 1,791 4,380 2,105 - 245 499 - - 33,766 Jamaica 11,201 21,558 9,805 x 828 987 8,921 1,910 1,679 347 1,253 - 51,489

LDC's: Grenada 154 1,541 230 27 x 174 112 317 19 14 17 - 2,605 St. Vincent 66 2,305 501 - 133 x 214 2 3 - - _ 3,224 St. Lucia 3 2,285 451 1 455 113 x 17 34 72 - - 3,431 Dominica 71 380 2,055 1,297 238 19 198 x 190 8 110 - - 4,566 Antigua 710 600 19 90 224 1,115 153 x 743 789 16 - 4,459 Montserrat 6 223 1 - 11 18 23 143 204 x 222 - 2 853 St. Kitts/Nevis 23 75 195 16 12 35 36 182 525 322 x - - 1,421 Belize - - 999 ------999

Haiti 5,607 - 5,375 - - - 550 1,490 - 838 751 - - 14,611

TOTAL 74,696 71,557 70,496 79,370 25,343 21,545 28,352 11,214 11,691 5,178 8,363 1,524 522 409,851

Source: Inter-Island Shipping Survey, UN/ECIFA, 1977.

March 1978

C., TABLE 3 - 28- Page 2 of 2

CARIBBEANREGIONAL TRANSPORT REVIEW

CARICOMAREA FREIGHT MOVEMENTS

Estimated CARICOM Area General Cargo Trade: 1977 (Thousands of Freight Tons)

From/To MDC LDC Total

MDC 289 (69%) 105 (25%) 394 (94%)

LCD 15 ( 4%) 8 ( 2%) 23 ( 6%)

Total 304 (73%) 113 (27%) 417 (100%)

Source: WISCO Investment Planning Study: June 1977

CARICOM Area General Cargo Trade Forecast: 1977-1986 (Thousands of Freight Tons)

Year MDC-MDC MDC-LDC LDC-MDC LDC-LDC Total

1977* 289 (69%) 105 (25%) 15 (4%) 8 (2%) 417 1978 300 109 15 8 432 1979 311 113 15 9 448 1980 323 116 16 9 464 1981 335 121 16 9 481 1982 348 124 17 9 498 1983 361 129 17 10 517 1984 375 133 18 10 536 1985 390 137 18 10 555 1986 405 (70%) 142 (25%) 18 (3%) 11 (2%) 576

*Estimated

Source: WISCO Investment Planning Study: June 1977

March 1978 CARIBBEANREGIONAL TRANSPORTREVIEW

Major Regional Public Port Facilities

Special Facilities (Bulks- Wharf Number * Depth (20 Containers) (Ro-Ro Capability) Priate) (Reefer) Remarks Port Length (fr) of Berths Alongside (ft) Ship_s Gear Dock Crane

CARICOM: Yes Oil, Cement No Current need is channel dredging Antigua 1,200 3 35 Yes Yee _ No Oil, Sugar New container terminal and inter- Barbodos (Bridgetown) 4,400 8 32 Yes Yes island vessel facility nearly complete. Studying new container crane purchase. Sugar No Lighterage. 18' draft port under 1,050 0 5 No No No Oil, Belite construction. No Anticipste container equipment 680 1 36 No No Yes No Dominica arrival early 1979. No Yen No Yes Port Authority Legislation in House Grenoda 800 2 28 Yes Plans for container handling facili- ties, Ro-Ro rmp and small vessel wharf. Yes No Yea Bauxite, Sugar, Yes Constant coastal drift limits depth Guyana (Georgetown) 6,000 13 16-20 Rice to 22 feet HW. Yes Yes Oil Yes Free zone adjacent to transshipeent Jamaica (Kingston) 6,525 11 26-40 Yes port. 40 acres for container facility. Two cruise ship piers under construction. Oil No Lighterage. Upgraded wharf 180 1 24 Yes No Yes Montserrat available 1978. Yes Oil, Sugar No Lighterage. Deepwater pier to be St. Kitts 600 1 14 No No built, two passenger piers. Yes Oil, Grain Yes Container facilities available St. Lucia (V-F/Castries) 3,130 6 28-38 Yes Yes September 1978. Yes No Yes Ro-Ro berth available June 1978. St. Vincent 900 2 27-30 Yes No Wharf extension & container facilities proposed. Yes Oil Yes Extreme congestion. Carifta wharf Trinidad (Port-of-Spain) 6,200 11 30 Yes Yes extension completed 1978. Yes Oil, Sugar, Bauxite No 3-berth container facility to be Dominican Republic (SD/Hain) 5,650 11 18-29 Yes Yes constructed at Hain&--in detailed design stage now. Puerto Plats improvements for cruise ships in preliminary engineering stage. 2 other major ports to be rehab. No New 2-berth general cargo/ ontainer 2,250 5 30 Yes Yes Yes Oil, Cement, Flour Haiti (Port-au-Prince) terminal nearly completed. Recon- struction of older general cargo pier underway. Netherlands Antilles: Yes Yes Yes oil Yes Separate oil port and industrial port. Aruba (Oranjestad) 4,130 7 34-36 No Yes Oil No Separate oil terminal. Bonaire 1,050 2 34 Yes Yes Yea Oil Yes New 2-berth container pier *nd ferry Curacao (Will-estad) 22,500 + 42 + 18-46 Yea wharf under construction. Has 5 other deepwater harbors. A main oil refining/transhipment center. Yes No No Tidal harbour! 15 at HW, dry at LW. St. Naarten 1,477 3 16 Yes No Basin: entrance width 33 depth on sill 17' OST. in minor ports. * Excludes all private terminals outside the major public ports and all public terminals

Source: Ports of the World, 1977, and discussions with port manogement, February 1978.

March 1978 - 30 -

TABLE 5

CARIBBEANREGIONAL TRANSPORT REVIEW

Daily Vessel Operating Costs

Typical ConventionalGeneral Cost of Sailing Cost in Port Cargo Vessels (DWT) (US$ equivalents) (US$ equivalents)

3,750 4,600 3,400 7,500 7,200 4,800 12,000 7,800 5,000 16,600 9,000 6,200 20,000 10,000 8,000

Typical ContainerizedVessels (DWT)

4,600 6,500 5,100 17,000 15,000 11,000 20,000 21,000 13,500 25,000 (23.5 knots) 33,000 20,000 33,000 (21.5 knots) 32,000 20,000 31,000 (26 knots) 47,000 27,500 47,000 (26 knots) 61,000 33,000

Source: Maritime InternationalConsultancy Research Co. Ltd., 1976.

March 1978 - 31- TABLE 6 Page I of 2

CARIBBEANREGIONAL TRANSPORTREVIEW

REGIONAL AIR SERVICES

Major Airlines Serving the Region

Carrier Regional Airports Served (Approximate Number of Arrivals per Week)

*Extra;Regional Carriers: - (US) Haiti (7) Dominican Republic (7) Trinidad (7) Guyana (8) St. Lucia (2)

American - (US) Aruba (6) Curacao (3) Barbados (14)Dominican Republic (7) Jamaica (5) Haiti (6)

Eastern - (US) St. Maarten (9) Antigua (23) Trinidad (9) St. Lucia (4) Dom. Republic (28) Barbados (16)

British Airways (UK) Jamaica (5) Antigua (4) St. Lucia (3) Barbados (6) Trinidad (7) Guyana (3)

Air France (France) Haiti (8) St. Maarten (7) Antigua (2) Trinidad (4) Guyana (2)

Air Canacla Barbados (12) Antigua (4) Trinidad (3)

KLM (Netherlands) St.Maarten (5) Curacao (7) Aruba (5) Trinidad (2)

A.C. de Colombia Dominican Republic (2) Haiti (5) Aruba (3) Curacao (3)

Viasa (Venezuela) Curacao (4) Trinidad (4) Barbados (4) Dominican Republic (4)

Iberia (Spain) Dominican Republic (5) Haiti (5)

BWIA (Trinidad) Barbados (28) Trinidad (50) Guyana (14) Antigua (10) St. Lucia (5)

Caribbean Airways (Barbados) Barbados (11)

Dominicans Dominican Republic (35)

ALM (Curacao) St. Maarten (5) Dominican Republic (10) Haiti (11) Jamaica (6) Aruba (48)

Curacao (48) Trinidad (6) Guyana (3)

Air Jamaica Jamaica (42) Nassau (14)

* Intra-Regional Carriers:

LIAT (Antigua) St. Maarten (7) Dominica (26) St. Kitts (14) Montserrat (14) Antigua (41)

St. Lucia (31) Barbados (31) St. Vincent (22) Grenada (22) Trinidad (27)

Prinair (Puerto Rico) St. Maarten (42) Antigua (14) Dominican Republic (14) St. Kitts (28)

Aero Services Grenada, Grenadines,Barbados,St. Vincent, St. Lucia

Winair (St.Maarten) St. Maarten (42) St. Kitts/Bartholemy/Saba (22)

Tropic Air (Barbados) St. Lucia, St. Vincent, Barbados, Grenada

Belize Air Services Belize (14)

Air Martinique/Air Guadaloupe St. Maarten, Montserrat, St. Kitts, Dominica, Grenadines, St. Lucia, St. Vincent

Carib Aviation (Antigua) St. Maarten, St. Kitts, Montserrat, Antigua, Dominica

Source: ABC World Airways Guide, December 1977; Official Airlines Guide, December 1977; and Official Airline System Timetables.

March 1978 CARIBBEAN REGIONAL TRANSPORT REVIEW

REGIONAL AIR SERVICES

Airline Flight Statistics for Selected Regional Carriers

Available Seat Revenue Passenger Available Revenue Passengers Carrier Miles Passenger Miles Load Factor Ton Miles Ton Miles Carried

LIAT

1976 72,796,992 46,556,310 64% -0- -0- 324,417 1977 77,960,169 50,315,792 65% -0- -0- 346,977

PRINAIR 1975 122,753,376 64,796,408 53% 16,934,854 6,147,496 213,242 1976 124,093,446 65,862,698 53% 10,200,096 4J/71O004 218,307 1977 120,734,570 67,291,254 56% 28,713,180 11,204,810 202,767 AIPF JAMAICA 1975 1,528,923,000 899,835,000 59% 187,379,000 NA 696,843 1976 1,406,193,000 853,512,000 61% 172,610,000 NA 639,131

BWIA

1977 1,247,400,000 762,900,000 61% 170,584,200 96,797,500 592,126

Sources: Annual, quarterly, and monthly reports published by the individual airlines, 1977-78.

March 1978

FQ >

trl

N) - 33- TABLE 7

CARIBBEAN REGIONAL TRANSPORT REVIEW

Major Regional Airport Facilities

Current Total Total Total Runway Aircraft Passenger Freight (tons) Location Length (ft.) Movements Movements Unloaded (Loaded)

CARICOM:

Antigua 8,778 22,679 164,204 NA NA Barbados 10,730 27,122 708,485 1,494 634 Bahamas 8,288 16,955 711,258 693 NA Belize 6,144* NA NA NA NA Domiinica 4,672* 8,332 56,966 230 918 Grenada 5,312 8,946 83,222 562 77 Guyana 7,315 NA NA NA NA Jamaica: Kingston 7,936 40,586 965,049 9,011 5,307 Montego Bay 8,320 37,565 622,708 1,653 894 Montserrat 2,928 * NA 19,210 NA NA St. Kitts 7,411 12,658 71,360 937 977 St. Lucia: Vigie 5,558 5,700 107,652 383 Hewanorra 11,040* 8,725 St. Vincent 4,682 NA 76,857 384 83 Trinidad: Port-of-Spain 9,760 40,412 602,640 NA NA Tobago 6,000

Dominican Republic 10,730 19,673 852,308 13,219 16,932

Haiti 7,754 7,084 244,698 14,144

Netherland Antilles

Aruba 8,777 NA 279,692 NA NA Bonaire 5,600 NA 20,546 NA NA Curacao 10,912 34,690 565,408 6,070 1,359 St. Maarten 6,880 29,913 350,780 3,238 341

* Unlighted airfields, St. Vincent has project underway. There are also unlighted STOL stips on St. Eustatius (1933'),Saba (1184')and several Grenadines (1200').

Sources: ICAO Airport Traffic, 1976 and ICAO Air Navigation Plan, June 1976. March 1978 - 34 -

ANNEX I

CARIBBEAN REGIONAL TRANSPORT REVIEW

Agencies Contacted During Review

* CARICOM

Antigua

Directorate of Civil Aviation, Windward Islands L.I.A.T. (1974) Ltd. Port Authority

Barbados

British Development Division Canadian High Commission/C.I.D.A. Caribbean Development Bank Caribbean Shipping Association Caribbean Tourism Research Centre Inter-American Development Bank Plantations Trading Company Ltd. Port Contractors, Inc. Prime Minister's Office, Port Management Division Stevenson Hartke Associates Ltd. (Consultants for Bridgetown port development) Thorne Riodell Associates Ltd. (Consultants) U.S. Agency for International Development

Belize

Caribbean Development Bank - Representative Harbour Master, Retired Ministry of Works and Transport

Dominica

Airport Management Harrison Line Ministry of Communications and Works Port Management

Grenada

Airport Management Grenada Yacht Services Ministry of Communications & Works Ministry of Finance, Ports & Customs Department - 35 -

ANNEX 1

Grenada (continued)

Minister without Portfolio Planning and Development Unit Prime Minister's Office United Nations (UNDP Agricultural Marketing Advisor)

Guyana

CARICOM Ministry of Works Transport and Harbour Department United Nations - UNDP Representative U.S. Agency for International Development

Jamaica

Air Jamaica Ltd. Directorate of Civil Aviation

St. Lucia

Agricultural Marketing Board Airport Management Development Planning Department Geest Industries, Ltd. Hunte Shipping Co. (WISCO Agents) Ministry of Communications, Works, and Labor Ministry of Finance National Development Corporation Port Management United Nations - (UNDP Marketing Advisor)

St. Vincent

Agricultural Marketing Board Airport Management British Development Division (Advisor on Ro-Ro Project) Development Corporation Geest Lines Ltd. Ministry of Communications and Works Ministry of Finance Physical Planning Unit Port Management Tourist Board - 36 -

ANNEX 1

Trinidad

BWIA International Department of Civil Aviation International Aeradio Ltd. Ministry of Finance and Planning Port Authority United Nations - UNDP Representative UN Economic Commission for Latin America U.S. Agency for International Development West Indies Shipping Corporation

* Dominican Republic

Central Bank Conduti (Dominican Council of International Transport Users) Delcanda (Consultants for IDB Transportation Study) Department of Civil Aviation Department of Public Works Frederick R. Harris, Inc. (Consultants for Haina port design) Port Authority United Nations - UNDP Representative

* Haiti

Administration Portuaire de Port-au-Prince Secretariat d'Etat de Travaux Public, des Transports et des Communications Service Autonome de Transport

* Netherlands Antilles

Aruba

Airport Management Department of Economic Development Government Information Office Harbour Master's Office Kroonvlag Aruba Shipping Agents

Curacao

ALM Antillean Airlines Curacao Airport Authority Department of Civil Aviation Department of Economic Affairs Department of Industrialization and Development Government Information Service - 37 -

ANNEX 1

Curacao (continued)

Harbour ExploitationCompany Harbour Master's and Piloting Office Kroonvlag Curacao Shipping Agents Maduro & Sons Trading Company Prime Minister's Office Representative

St. Maarten

Airport Management Winair Airlines

USA

Civil AeronauticsBoard Inter-AmericanDevelopment Bank Royal Netherlands Steamship Co. (New York) Seatrain (New Jersey) U.S. Agency for InternationalDevelopment U.S. State Department

March 1978 - 38 -

ANNEX 2

CARIBBEAN REGIONAL TRANSPORT REVIEW

Present and Prospective Transport Demand

Freight Movements

1. A large amount of oil is both exported from Trinidad (20 million tons) and transshipped after refining from Aruba and Curacao (approximately 80 million tons in 1976). Because these volumes would dwarf all other cargo movements in the Caribbean, the following discussion excludes these tonnages. Other freight movements by air and sea are showing a slowly increasing trend after several years of depressed volumes. Total traffic is believed to be on the order of 30 million tons per year in the Caribbean areas under review. This can be contrasted with Puerto Rico, which alone has similar tonnages and which serves as one of the major transshipment ports for the Caribbean. However, the current serious lack of comparable and/or reliable data on disaggregated and aggregated shipping movements in the Caribbean precludes the possibility of any rigorous analyses or definitive statements being made.

2. The volume carried by common carriers amounts to approximately 10 million tons, consisting primarily of general cargo. The remaining 20 million tons are bulk movements which are usually carried by vertically integrated private companies using their own or chartered vessels. Air cargo comprises less than 1% of all cargo movements. The general lack of accurate statistics, however, is a serious limitation.

Extra-Regional Traffic

3. Bauxite, sugar, rice and bananas are the primary commodities exported to North America and Europe. Bauxite exports from Guyana, Jamaica, Haiti, and the Dominican Republic equal over 17 million tons per year. Sugar movements from the Dominican Republic, Haiti, Jamaica, St. Kitts and Guyana are estimated at 2 million tons per year. On a different scale, rice from Guyana and the Dominican Republic amounts to 325,000 tons per year and bananas from Jamaica and the Windward Islands equal 250,000 tons per year. From the countries included in the review, total estimated bulk export traffic was almost 20 million tons per year. Exact tonnages cannot be provided since most bulk movements are through private facilities. General cargo exports are believed to be on the order of 5 million tons annually. Import tonnages are also thought to be about 5 million tons, the majority being manufactured goods, iron and steel, machinery, cereals/feeds, chemicals/fertilizers and dairy products. Over 60% of the imports are from North America and Europe.

4. The growth rate for exports over the next five years depends on several external and internal factors. For the traditional export groups such as sugar, bananas and bauxite, external factors such as the rate of - 39 -

ANNEX 2 worldwide economic recovery and the balance of payments situation of the major trading partners are important. For the newer group of exports, such as tropical fruits and vegetables and light industrial manufactured goods, the rate of growth will depend more on internal factors. For example, the organizational structure and facilities of Agricultural Marketing Boards, their incentive programs and the ability to pay for agricultural inputs such as fertilizers and pesticides will determine whether a state will produce only enough for import substitution of foodstuffs or whether it can also export. Since many LDC's are now attempting to increase their rates of import substitution, there may be some changes in the composition of their imports, with raw materials, semi-finished goods, and heavy construction/ transport equipment gaining in importance.

5. Forecasts of agricultural and industrial exports and imports can only be indicative since they are dependent on an aggregate of independent decisions. Also, in many states there is anonimity of the monetary forces (because many do not have central banks) and also no comprehensive government development policy which could be used to mobilize and focus scarce national resources. However, it would be reasonable to relate annual growth rates to GDP and arrive at 4% to 8% for the Dominican Republic, Netherlands Antilles, Belize, and the MDC's and 2% to 5% for Haiti and most of the LDC's. These estimates of extra-regional trade increases are higher than those for intra- regional trade (approximately 3.5%), chiefly because of the similarity of the economies (and potential exports) of the states and the limited purchasing power of the small regional market. Also, since the Caribbean economies are less diversified than those in Europe and North/South America, their rates of recovery (and thus demand for imports) are thought to be lower than those of their major extra-regional trading partners.

Transshipment Traffic

6. The only transshipment information available in tonnages is that for the CARICOM area. It is defined here as that general cargo which originates extra-regionally (primarily North America and Europe) and is off-loaded at load-center ports in the MDC's in the CARICOM Caribbean for shipment to other smaller CARICOM destinations. In 1976, ECLA estimated that transshipments among CARICOM area countries amounted to 12,000 tons or less than 3% of the total 417,000 general cargo tons shipped intra-regionally. (The rest is general cargo originating in the CARICOM area.)

7. Many of the extra-regional ocean carriers plan to reduce their number of direct callings at the smaller Caribbean islands because of the high cost of new containerized vessels. In anticipation of this development, they recently provided estimates of their tonnages (containerized and break- bulk) which could be transshipped from one or two load-center ports to the Windward and Leeward Islands. Total available CARICOM area transshipment cargo originating extra-regionally is expected to be 85,000 tons per year. Of this, WISCO hopes to obtain at least 10%, or 8,500 tons, which would provide higher traffic levels on legs presently lightly loaded. For the rest, it is presumed that the extra-regional carriers will conclude arrangements with - 40 -

ANNEX 2 other privately-owned Caribbean transshippers (such as the CTMT ro-ro barge service) who can handle containers or that the containers could be unstuffed at the load-center ports and carried by the small vessels. Manufactured/ semi-finished goods, alcoholic beverages and tobacco and foodstuffs are the main transshipment commodities.

Intra-Regional Traffic

8. No intra-regional traffic flow or transshipment data were available for the Netherlands Antilles or the Dominican Republic, but information is again available from ECLA on intra-regional general cargo flows for 1976 among the 12 CARICOM states, and Haiti. This amounts to 418,000 tons per year, or one-half of the total intra-regional traffic, the other half being bulk commodities, primarily mineral fuels. When these data are grouped into MDC's (Barbados, Guyana, Jamaica, and Trinidad) and LDC's, the predominance (69%) of MDC-to-MDC tonnage (fertilizers, cement, manufactured products) clearly emerges, as does the estimation that 94% of intra-regional general cargo originates in the MDC's. The LDC's do not trade very heavily among each other because cf the similarity of their economies. Assuming a renewal of positive trends in the gross domestic products of Caribbean states (led by the agricultural, mining/refining, and tourist sectors), but a continuance of slow worldwide economic growth, the ten-year forecast of intra-regional general cargo rises from an estimated 417,000 tons in 1977 to 576,000 tons in 1986.

9. Market share information available on the shipping services which carry CARICOM-originating general cargo helps to indicate the strength of the "small vessels," which numbered 149 in 1975. Small vessel traffic amounted to 273,000 tons, or 65% of this market, while WISCO and the liners each carried 72,000 tons (17%) of the total general cargo 410,000 tons moved in the ECLA study area. It is clear that the small vessels will continue to provide serious competition to WISCO, especially on the high-volume Eastern Caribbean MDC routes; the liners plan to reduce their number of direct calls to the Windward and Leeward Island and thereby to provide WISCO and other regional liner services with a potentially greater share of this market. Major commodities transferred intra-regionally are rice, cement, foodstuffs and fresh fruits/vegetables, manufactured goods and machinery.

Passenger Movements

10. The tourism sector has been slowly regaining its early-1970's stature within the real GNP of many Caribbean countries and territories, after a period of almost no traffic growth in 1972-1976. The average increase in tourist arrivals between 1975 and 1976 was 10%, with the LDC's showing the greatest percentage increases. Excluding the Dominican Republic (for which data were unavailable) and the Bahamas (which alone attracted over 1.3 million tourists), the Caribbean study area noted 1.6 million air arrival visitors and 1 million cruise ship passengers in 1976 for a total of 2.6 million tourists. - 41 -

ANNEX 2

The approximate breakdown of tourist origins is 50% from North America, 10% from Europe, 20% from the Caribbean/Latin America and 20% from all other areas.

11. Of the LDC's, only Haiti and St. Lucia show clear, five-year patterns of steadily increasing air and sea arrivals. The MDC's show quite varying trends, with Trinidad, the Dominican Republic and the Dutch Antilles experi- encing the steadiest increases. While retained tourist expenditures data are not available, it is interesting to note that the length of stay in the LDC's is often twice that of the MDC's, and three times that of the Dutch Antilles. Some seasonality in passenger traffic flows does occur, but the individual peaks and troughs tend to vary from country to country, both for sea and air arrivals.

12. No projections are available from cruise ship operators, but a sampling of passenger traffic statistics provided by selected regional air carriers shows several optimistic trends. BWIA, the extra-regional airline based in Trinidad, estimated an 8.5% increase in its long-haul passenger traffic from 1976 to 1977 and forecast an 11.5% increase for 1978, bringing its total market share to 320,000 passengers in 1978 (BWIA's total market estimated to be 758,000). The number of Air Jamaica's long-haul passengers almost doubled from 1972 to 1975 (to 700,000). Also, if the number of visitors to the Cayman and Virgin Islands, Puerto Rico, and the two French departments of Guadaloupe and Martinique are added to the numbers of the areas under review, the total number of long-haul Caribbean tourist arrivals almost doubles.

13. On intra-Caribbean routes, BWIA forecasts its total available passenger market to be over 980,000 for 1978. LIAT, the region's primary, short-haul scheduled airline serving most Windward and Leeward Islands and Trinidad, estimates that its market will grow at 3% to 4% per year, or to 450,000 passengers by 1980, but higher growth rates may be feasible with increased aircraft capacity.

April 1978 - 42 -

ANNEX 3

CARIBBEAN REGIONAL TRANSPORT REVIEW

Maritime Transport Assistance Proposals 1/

Proposals for assistance to maritime transport in the Caribbean region are listed hereunder in the following order: (1) regional projects, (2) CARICOM countries (in alphabetical order), (3) Dominican Republic, (4) Haiti, and (5) Netherlands Antilles. Since it has not been possible in the course of this review to verify cost estimates, only approximate infor- mation is given on cost ranges, as follows:

A - under US$100,000

B - US$100,000 to US$500,000

C - US$500,000 to US$2 million

D - US$2 milion to US$10 million

E - over US$10 million.

1. Regional Projects

*) 1.01 Dredging of existing ports is a recurring need at several smaller islands (Antigua, St. Lucia) to maintain or improve channel depths. A joint approach, possibly by contracting a dredging firm for several projects, may result in significant economies. Cost ranges: study - A; dredging - not known.

*) 1.02 Establishment of a data collection system for maritime trade infor- mation is considered urgent, to provide an adequate basis for future service and investment planning. After a brief study to set criteria and data format, a permanent staff of 3-4 will be needed to operate the system on a regional basis. Cost range: Study - A; system operation - A per year.

*) 1.03 The provision of support to small vessels and schooners servicing intra-regional trade should be studied to determine how insurance, financing and technical assistance can best be supplied to vessel owners and operators (see para 3.13). Cost range: A.

*) 1.04 Container distribution and "load center" ports in the region should be the subject of a comprehensive analysis, in close collaboration with major extra- and intra-regional carriers and port interests, to reach a consensus

1/ Items considered by the review team to be of highest priority are designated by (*) in the margins. - 43 -

ANNEX 3

on basic system characteristics from which investment requirements for the fleet and ports can be derived (see paras 3.38 and 3.43). A brief study (without sophisticated systems analysis) could define major options, on which collective decisions by carriers and port interests could then be based. Cost range: study - B; port investments - E; fleet investments - D or E.

1.05 A study of fleet replacement and expansion of WISCO may be needed to supplement a recently completed study on this subject, but consideration should be given to postponing this until item 1.04 has been completed. Cost range: A.

1.06 Improvements in the management and operation of WISCO may require assistance. Cost range: A.

1.07 Establishment of a maritime school for the region has been under discussion and may require both technical and financial assistance. Cost range: B or C.

1.08 Standards for port authority legislation and for regionally based shipping services have been suggested as a possible area of technical assis- tance. The intent would be to simplify institutional development for smaller ports and provide a basis for vessel licensing. Cost range: A.

1.09 Establishment of a regional flag carrier for extra-regional services is under consideration (see para 3.08). Study of this topic should take into account the findings of item 1.04 above. Cost range: study - A; fleet investments - E.

2. CARICOM Countries

Antigua

2.01 Principal current requirements at the port of St. John are a mobile container crane for container handling, a roll-on/roll-off ramp, extension of the transshipment area and channel maintenance dredging; the latter is urgent. These items would result in further development of a port which experienced its last major investment in 1968. Current requests are based on the 1968 consultant report, which also indicated a need for two more 600' berths. However, this type of development should await the results of a regional container distribution port study. Cost ranges: crane - C; ro-ro ramp - B; transshipment area - B; dredging - not known.

Belize

2.02 Since there is considerable acreage adjacent to the site of the new port, several miles from the city, development of an industrial park is being considered. Cost range: study - A. - 44 -

ANNEX 3

2.03 Expansion of the existing program of installation of navigational aids along the coastline of Belize was given high priority. Cost range: A or B.

2.04 When the present construction program for the new deepwater port of Belize is completed and cargo transfer by lighter is no longer necessary, WISCO may be able to provide a transport link with other CARICOM countries. A study is proposed which would lead to recommendations of the most economical manner for WISCO to provide shipping services. Cost range: study - A.

2.05 Provision of technical assistance to the new port of Belize for the development of operational practices, efficient equipment utilization, admin- istrative and accounting practices, etc., is proposed. Cost range: A.

Dominica

2.06 There appears to be a delay (until early 1979) in delivery of container and general cargo handling equipment to the new deepwater harbor at Woodbridge Bay. This equipment is being financed by CIDA. Because opera- tions are very restricted, the immediate need is for interim cargo handling equipment. Some external financing may be required. Cost range: A.

2.07 Expansion of the recently completed port at Woodbridge Bay has been proposed, but the scope and justification for possible investments have not yet been provided. Alternatives under consideration are: addition of a roll- on/roll-off ramp, construction of a complete new berth, and additional storage facilities such as a new reefer shed. A list of additional port development projects has been provided to Venezuela, as a possible source of study funding. Cost range: ro-ro ramp - B; berth - D; shed - C. (See World Bank Report #2001-CRB, Economic Memorandum on Dominica, 1978.)

Grenada

2.08 The CDB has agreed to finance a pre-investment study for improvement and expansion to the port of St. George's. A small vessel wharf for inter- island trade, a ro-ro ramp, 2-3 acres of reclaimed land, and navaid improvements have been proposed. Technical assistance may also be required. Immediate needs of the port are for pallet and container handling equipment. The CDB is a possible source of funding for the items being studied, but no source has as yet been identified for the equipment. Cost range: study - A; civil works proposals - D; equipment - B.

2.09 Since the government plans to make pilotage within the port of St. Georges comupulsory to ocean going ships, there is a need to train two harbor pilots. This could possibly be done at the Barbados Port Authority. External counterpart funds have not yet been found. Cost range: A. - 45 -

ANNEX 3

2.10 Carriacou Island is seen as a link in the inter-island, small vessel trade and as a tourist attraction. A new jetty has been proposed to facili- tate these movements. Detailed engineering has been completed, ard the BDD has been approached for financing. Cost range: construction - B. (See World Bank Report #1994-GRD, Economic Memorandum on Grenada, for 2.08, 2.09, and 2.10.)

Guyana

2.11 Reconstruction, extension, and modification of the existing wharves and dolphins are being considered at Georgetown and smaller ports (see para 3.16); a 3-year phased port rehabilitation program has been proposed. Technical assistance to improve maintenance will be necessary. Cost range: construction - D; technical aid/maintenance - A.

2.12 The estabishment of a port authority to rationalize port services and determine economic charges for such services is proposed, based on two consultant reports. Subsequent to a full market analysis, development of a master plan for the Port of Georgetown should be completed and implemented. No potential study sponsors have been identified. Cost range: B.

2.13 Another current proposal, based on several studies, is to establish a national shipping line to operate on the UK/Eastern Caribbean route, possibly in partnership with an experienced line and other Caribbean territories. It would carry general cargo westbound and bulk sugar and bauxite eastbound. There are indications that the project may be undertaken in 1978, but an economic justification and information on financing have not been provided. Cost range: E.

2.14 A Guyana-Surinam ferry between Springlands in Guyana and Clara in Surinam is also proposed. Each country would support the capital investments for its fixed installations and contribute equal shares to cover the capital and operating costs of the ferry. A study will be completed in 1978, and the service should begin in 1979. EEC funding is anticipated. Cost range: C.

2.15 To improve the efficiency of the government's present dredging capability, purchase of a new, multi-purpose dredge with maxiumum dredging depth of 45' and 1,000 tons capacity is proposed. A study was completed in 1975, and the ODM has been approached as a potential funding source. Cost range: D.

2.16 Three coastal vessels are proposed by the Transport and Harbours Department (THD) to operate services to the North West District and Berbice River. Based on a master plan prepared for THD, two cargo vessels and one passenger vessel are proposed. Funds are to be provided by ODM. Cost range: C. - 46 -

ANNEX 3

St. Lucia

2.17 The port of Castries has been undergoing major expansion with financial assistance from CDB and is scheduled to be completed in September 1978. Because of escalating costs, the budget for the transit shed has been exceeded and additional funding is needed. No sources have yet been identified. Cost range: B.

2.18 A feasibility study to determine costs and benefits of constructing a separate pier for cruise ships has been proposed. It is anticipated that congestion might occur once the new container facilities are in operation and vessel traffic increases. Also, safety and efficiency of operation of both cargo and passenger vessels would be enhanced. Funding sources have not yet been identified. Cost range: study - A; construction - C.

2.19 A loan has been approved in principle by the CDB for a feasibility study on the organization, development,and marketing of a free trade zone at Cul-de-Sac Bay. Consultants are now being chosen. Cost range: study - A; construction - not known.

2.20 Since Castries Harbor channel is too narrow for the larger ocean- going vessels to moor independently and tugboats are too expensive to operate, a dredging proposal to widen the channel has been made. Detailed definition of the channel sections to be widened and costing are required. It may be possible to lease the Hess Oil Co. dredge currently in use at Cul-de-Sac Bay for the required harbor dredging. Cost range: - C.

2.21 The current jetty at Vieux-Fort is inadequate to handle increasing amounts of products being used or produced in the industrial area nearby. Expansion of the jetty by 250' has been proposed; alternatively, equipment acquisitions may increase operational efficiency and provide the needed throughput capacity without investment in civil works. Detailed feasibility analysis and costing is required prior to investment decisions. Cost range: study - A; construction - C. (See World Bank Report #1999-CRB, Economic Memorandum on St. Lucia, 1978 for 2.17, 2.20, 2.21 above.)

St. Kitts

2.22 Contractors are being pre-qualified for construction of a new deepwater berth, ro-ro facility and sugar handling equipment. This would replace the current transfer of cargo by lighter. The CDB is considering financing part of this work. Cost range: - D.

2.23 A second maritime project in St. Kitts is the purchase of a new bow- loading ferry. Possible lending agencies are undetermined. Cost range: B. (See World Bank Report #1998-CRB, Economic Memorandum for St. Kitts for 2.22 and 2.23.) - 47 -

ANNEX 3

St. Vincent

2.24 The g- ernment is currently reconsidering proposals made in 1972-73 for berth expansion and back-up facilities. However, private industry has indicated that they have other suggestions for port development. Before water front improvements begin, there should be a more comprehensive study of St. Vincent's future requirements, including (a) cargo market analysis based on sectoral development priorities, (b) a land-use analysis for the 16 acres of unused waterfront land adjacent to the port, and (c) a study on increasing efficiency at the existing pier. Immediate needs are additional breakbulk transfer equipment, a mobile container crane, and trailers, as well as help in financing construction of a new ro-ro ramp to accommodate ODM's gift of a 100-ton ro-ro vessel. Cost range: study - A; construction - D; equipment - B; ro-ro ramp - C.

3. Dominican Republic

3.01 Establishment of a system for data collection on transport has been identified as a priority need by the recently completed National Transport Survey (see para 3.29). Cost range: - A.

3.02 A survey of national port development needs for the Dominican Republic has also been suggested by the consultants undertaking the National Transport Survey. The Government is considering this proposal at present. Cost range: A or B.

3.03 The need for various port improvements, largely in the area of rehabilitation of existing facilities at four terminals other than Rio Haina, has been identified in the National Transport Survey, but studies and invest- ment decisions on specific projects should in most cases await completion of item 3.02 above. The priority ranking of such additional projects, within the transport sector and for the country as a whole, is not known at this time. Cost range: - D or E per port.

4. Haiti

4.01 Development of the port of Cap Haitien was given high priority in the National Transport Study. Project components may include repair of an existing wharf, new berths for tourist vessels, a coastal shipping wharf and channel improvements. Funds for study are considered for inclusion in a 1978 IDA project. Cost range: study - C; construction - D. - 48 -

ANNEX 3

4.02 The absence of navigation aids is a hazard for both international and coastal shipping in Haiti. A review provided with French assistance (January 1977) recommended investments in the order of US$15 million for lighthouses and buoys, requiring annual maintenance of about US$1 million. These costs are considered excessive in the context of Haiti's current situa- tion; furthermore, the review did not take into account findings of the National Transport Study and proposed developments of coastal shipping ports. A supplementary study is needed prior to financial commitments for installa- tion of navigation aids. Cost ranges: study - A; facilities - D.

4.03 Navigation charts for coastal waters in Haiti are obsolete and require updating. The U.S. Coast Guard has made soundings in the bay of Port- au-Prince and revised charts are under preparation. Other coastal water areas of Haiti may also need charting. Cost range: not known.

4.04 Assistance to vessels in distress and repair facilities for small vessels are deficient in Haiti. Supply of coast guard vessels and construc- tion of a small drydock have been discussed as potential items for assistance from Germany. Cost range: C.

5. Netherlands Antilles

5.01 Aruba does not have facilities or container ships and has requested the Government of the Netherlands for assistance in the construction of a modern container berth. In view of the low volume of general cargo at Aruba and the container terminal under construction at Curacao, the need for the Aruba facility is uncertain. Cost range: E.

5.02 The need for replacement of an old tug boat for Aruba has been mentioned but no decision has been taken. Cost range: C or D.

5.03 Need for expansion of the Free Zone area at Curacao was mentioned. Depending on area and location (need for landfill) cost range may be C or D.

April 1978 -49 ANNEX 4

CARIBBEAN REGIONAL TRANSPORT REVIEW

Air Transport Assistance Proposals 1/

Proposals for assistance to air transport in the Caribbean region are listed hereunder in the following order: (1) regional projects, (2) CARICOM countries (in alphabetical order), (3) Dominican Republic, (4) Haiti, and (5) Netherlands Antilles. Since it has not been possible in the course of this review to verify cost estimates, only approximate infor- mation is given on cost ranges, as follows:

A - under US$100,000

B - US$100,000 to US$500,000

C - US$500,000 to US$2 million

D - US$2 milion to US$10 million

E - over US$10 million.

1. Regional Projects

*) 1.01 A study of airport fire and rescue requirements and communications for many of the smaller airports in the region has been proposed to define equipment, personnel and training needs. Cost range: A.

(*) 1.02 An analysis of LIAT fleet requirements and route structure has been proposed to define an aircraft replacement program and service improvements for this airline. Cost range: A.

*) 1.03 Establishment of a Caribbean Air Transport Board (CATB) should be given consideration (para 4.23); under the auspices of CATB, studies of route structures, scheduling, fleet utilization and future fleet expansion needs of intra-regional services should be initiated to identify possibilities of improving service quality and reducing costs by pooling of services, schedule coordination and joint use of terminal and supply facilities. Cost range: B.

1.04 Expansion or new construction of air cargo terminal facilities is an apparent priority need at several of the smaller airfields in the region. While these projects could be undertaken individually, combined analysis of cargo terminals at several airports may result in development of economical solutions that could be adapted to most sites, resulting in lower cost procure- ment of building components in a joint venture. Cost range: study - A; buildings - B or C.

1/ Items considered by the review team to be of highest priority are designated by (*) in the margins. - 50 -

ANNEX 4

1.05 Analysis of hydrofoil/hovercraft service potentials for some of the shorter inter-island routes has been proposed to explore supplements or alter- natives to short-haul air services. For the Grenada-Trinidad route, such an analysis has already been initiated; other routes may also have promising potential and could be studied jointly. Cost range: B.

1.06 BWIA is now studying future fleet requirements, including wide-body jet aircraft for long-distance services. Cost range: E.

1.07 Air Jamaica is now establishing a five-year plan which is likely to include the acquisition of two wide-body jet aircraft for long-distance services. Cost range: E.

1.08 ALM is considering the acquisition of small jet aircraft for inter- island services. Cost range: D or E.

1.09 Improvement of the reservation system for LIAT has been identified as a priority need, to provide link-ups with extra-regional carriers. A study of this subject has been proposed, but may be integrated into the scope of item 1.03 above; preferably, it could be carried out as a separate exercise. Cost range: A.

2. CARICOM Countries

Belize

2.01 To enable Belize International Airport to handle increased air traffic, BDD consultants in 1973 proposed several projects to further this airport's development. The immediate need is to expand the existing apron, but runway extension, construction of a new terminal building and ancilliary facilities are also required. EDF and the UK are considering financing for some of the items. Cost range: D.

2.02 Construction of an airstrip on Cave Caulker has been proposed by the Government. A survey was completed in 1976 and the UK has been approached for grant financing. Cost range: B. (See World Bank Report #1995-CRB, Economic Memorandum on Belize, 1978 for 2.01 and 2.02).

Dominica

2.03 VHF and other navigational/ground-to-air aids and equipment (primary and standby) are urgently needed to improve the safety of operations at Melville Hall. Cost range: B. - 51 -

ANNEX 4

2.04 Present airport operations are severely limited by topographical conditions and there is a problem of road access from the airport to the capital city of . Venezuela has provided initial studies for a new airport, but not financing for a comprehensive study. Cost range: study - B; construction - unknown. (See World Bank Report #2001-CRB, Economic Memorandum on Dominica, 1978 for 2.03 and 2.04).

Grenada

2.05 Because of topographical conditions restricting operations at the existing airport, development of a new international airport at Point Saline near St. George's is again proposed. Several studies have been done in the past, all identifying Point Saline as the preferred location. Terms of reference for an updated feasibility study have been completed by CIDA. IBRD, CDB, and CIDA have been approached for financing. Cost range: study - B; construction - E.

2.06 The airstrip on Carriacou Island is in need of resurfacing since it is severely deteriorated and is considered unsafe. Prefeasibility study has been completed by CDB, which has been approached for financing. Cost range: B. (See World Bank Report #1994-GRD, Economic Memorandum on Grenada, for 2.05 and 2.06).

Guyana

2.07 The government would like Corporation to provide a new feeder service between Guyana and international services terminating in Trinidad, as well as to develop links between Guyana, Surinam, and . A study is required to determine potential traffic as well as the financial viability of the proposed services. Airport development at Ogle Airfield is likely to result, to include runway construction, terminal and aircraft buildings, and roads. A study for this development will be carried out in 1978, supplementing a study completed in 1975 by UK-CAA. Cost ranges; service study - A; facility study - A; construction - D.

2.08 Improving 16 airstrips in the hinterland to minimum safety standards to accommodate regularly scheduled service by Guyana Airways Corporation using either Twin Otters or 748's is proposed. The development plans are based on a 1975 UK-CAA study, and construction would be phased between 1979 and 1981. Cost range: D.

Jamaica

2.09 Runway extensions at Kingston and at Sangster (Montego Bay) Airports are in progress with World Bank financing. For potential, longer distance European tourism flights, additional capacity may be needed (see item 1.07); feasibility studies may be required, including hydraulic investi- gations at Kingston. Cost range: Kingston study - B; Sangster study - B; construction - unknown. - 52 -

ANNEX 4

St. Kitts

2.10 Installation of an Instrument Landing System is proposed to make possible long-distance jet service. The project is at the funding stage. Cost range: B. (See World Bank Report #1998-CRB, Economic Memorandum on St. Kitts/Nevis/Anguilla, 1978.)

3. Dominican Republic

3.01 According to the findings of the National Transport Survey, the principal international airport terminal building at Santo Domingo may reach saturation in 1980-81 (see para 4.14). Preparation of an airport masterplan has been proposed; this should take into account future possible diversion of air tourist traffic to the Puerto Plata airport. Cost range: B.

4. Haiti

4.01 The airport at Cap Haitien, one of Haiti's tourist centers with very good development potentials, can be served only by small aircraft (up to DC-3s). Runway improvements, to allow service by charter jets from the US and Europe, are being studied with French assistance, which may also be available for financing of the construction. Cost range: not known.

4.02 A study of small airport requirements in Haiti has been proposed. Cost range: B.

4.03 The existing terminal building at the international airport at Port- au-Prince is congested frequently during peak traffic.hours. A study of methods to increase the capacity of the existing terminal and, probably, extension of the building are considered desirable in the next 2-3 years. Cost range: study - A; construction - C.

5. Netherlands Antilles

5.01 The communication and navigational air system in the Netherlands Antilles needs updating and expansion. A plan is presently being prepared by the Department of Civil Aviation. Cost range: E.

5.02 At present, Curacao Airport has an air freight building of 4,000 m2, which appears to be inadequate; reportedly2 air freight had to be refused because of lack of space. A request for a 5,000 m building has been submitted to the Dutch Government. Cost range: D. - 53 -

ANNEX 4

5.03 Aruba airport has submitted a request for a 5,000 m2 air freight building. Cost range: D.

5.04 A plan for the expansion of the apron, and improvements to the terminal building of the St. Maarten Airport is being prepared by consultants for possible consideration of financing by the European Development Fund. Cost range: D.

April 1978

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