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Title: Caribbean maritime
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Permanent Link: http://ufdc.ufl.edu/UF00099408/00002
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Title: Caribbean maritime
Physical Description: Serial
Language: English
Creator: Caribbean Shipping Association
Publisher: Land & Marine Publications Ltd.
Place of Publication: Colchester Essex, England
Publication Date: October-December 2007
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Bibliographic ID: UF00099408
Volume ID: VID00002
Source Institution: University of Florida
Holding Location: University of Florida
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Table of Contents
    Front Cover
        Front Cover
    Front Matter
        Front Matter
    Main
        Page 1
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        Page 44
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        Page 46
        Page 47
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    Back Matter
        Back Matter
    Back Cover
        Back Cover
Full Text










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CARIBBEAN

MARITIME

No. 2 I OCTOBER DECEMBER 2007


COVER STORY
5 Cruise capital of the world
An overview of the Caribbean cruise industry
Some facts and observations

SPECIAL FEATURES
4 Cruise industry and the CSA
Cruise industry is CSA's natural ally
11 Popular destination
Carnival expects a record
Caribbean is still cruising's most popular
destination
12 Caribbean views
What benefits to be derived from cruise tourism?
a Caribbean viewpoint
15 Branding the Caribbean
Branding the Caribbean, sustaining growth
19 Puerto Rico
Veteran Jose Busto urges support for Puerto
Rico's cruise sector
20 St Thomas
St Thomas facing cruise revenue decline
21 Dominican Republic
Operating the Caribbean's newest
container terminal
23 Dominican Republic set to receive 500,000
cruise passengers
24 St Maarten
St Maarten to expand cruise facilities
25 Trinidad & Tobago
Port of Port of Spain transformation
brings improvements
Developing the human resources
27 Barbados
Barbados invests in more cruise berths
29 Insurance
New maritime insurance products can help
avoid costly claims
30 European destinations
Does Caribbean cruise face a strong
challenge from Europe?


Er
I-


33 Hazmats
What every port should know about
hazardous materials
37 Suriname
Suriname's busiest port gets major upgrade
38 Obituary
CSA pays tribute to its founding president,
Peter Evelyn
45 Jamaica
KWL puts its security measures to the test
46 Customs modernisation
Customs modernisation and the Caricom
single market and economy

STANDARD FEATURES
2 Editorial
CSA Training
3 Message from the CSA President
14 &35 The Human Factor
18 Newsmaker
Jose 0. Busto To be the best of the best
39 Newsbriefs
41 CSA News
47 A Matter of Law
Are we really prepared to deal with a
major oil spill in Caribbean waters?


Except for that appearing in the Editorial column, the views
and opinions expressed by writers featured in this publication
are presented purely for information and discussion and do
not necessarily reflect the views and opinions of the Caribbean
Shipping Association.
- The Editor.
CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 1


CONTENTS S






EI EDITORIAL


CARIBBEAN

MARITIME
No. 2 I OCT-DEC 2007


The official journal of the Caribbean
Shipping Association

* caribbean shipping association

MISSION STATEMENT
"To promote and foster the highest
quality service to the maritime industry
through training development;
working with all agencies, groups and
other associations for the benefit and
development of its members and the
peoples of the Caribbean region."

GENERAL COUNCIL 2006-2007
President: Fernando Rivera
Vice President: Carlos Urriola
Immediate Past President: Corah-Ann
Robertson Sylvester
Group A Chairman: Robert Foster
Group A Representative: Michael Bernard
Group A Representative: lIan Deosaran
Group A Representative: Trevor Phillip
Group B Chairman: Grantley Stephenson
Group B Representative: David Jean-Marie
Group C Chairman: Johan Bjorksten
Group C Representative: Cyril Seyjagat
General Manager: Stephen Bell
Director Information and Public Relations:
Michael S.I.Jarrett
Caribbean Shipping Association
4 Fourth Avenue, Newport West,
PO Box 1050, Kingston C.S.0, Jamaica
Tel: +876 923-3491
Fax: +876 757-1592
Email: csa@cwjamaica.com
www.caribbeanshipping.org
EDITOR
Mike Jarrett
Email: csa@mikejarrett.net
PUBLISHER:

land&MARINE
Publications Ltd
1 Kings Court, Newcomen Way,
Severalls Business Park, Colchester
Essex, C04 9RA, UK
Tel: +44 (0)1206 752902
Fax: +44 (0)1206 842958
Email: publishing@landmarine.com
www.landmarine.com


CSA training

- a direct effect on Regional development

THE Caribbean Shipping Association has a commitment to work relent-
lessly towards development of the Region by empowering those who
work in the shipping industry through training and the development of
training programmes.
Before the CSA, not much real training was done in this sub-sector. Today,
however, the CSA plays a leading role in organising and supporting the Region's
maritime training.
Most of the Region is made up of island states. Those territories that are not
islands such as Guyana, Suriname and French Guiana have similar economic
realities to island states because there is little overland commerce across their
southern borders. Because almost everything must be imported from overseas,
the national economies and peoples of the Caribbean depend on the shipping
industry for survival. The CSA's role in developing the Region's shipping sector
therefore has a direct effect on development.
For much of its 37 years, the CSA has fostered the growth of the shipping sector
through training and development of human resources. Over the years, it has
organised training courses in various Caribbean territories. Through its outreach
and co-operation policies, the CSA has supported many regional maritime training
programmes, through Trainmar and such projects as the satellite-based distant
teaching initiative to deliver the Caribbean Diploma in Shipping Logistics (CDSL).
In collaboration with the Caribbean Maritime Institute (then the Jamaica Maritime
Institute), the CSA not only helped implement the CDSL project but also contrib-
uted financially to textbooks and reference materials.
Using the interest from fixed deposits of the Training Trust Fund, the CSA has
helped fund many of these training initiatives including the Monica Silvera Schol-
arship for studies at the Caribbean Maritime Institute.
A dependable and efficient port operation is not possible without trained port
workers. The historical experience of the Region's major ports proves the point.
And the new sophistication of the shipping industry has led to increased demand
for trained workers and managers.
Development of human resources inspired the creation of the CSA. It was
the efforts by the Shipping Association of Jamaica to train the port workers at
Kingston and to regularise their working modes and conditions that caught the
attention of other national shipping associations and brought about the idea of a
regional organisation.
At the sixth CSA Caribbean Shipping Executives Conference, held in May in
Mayaguez, Puerto Rico, the President of the CSA, Fernando Rivera, disclosed that
he had entered into dialogue with the Catholic University of Ponce to develop col-
lege-level training. These talks have continued since and the President is expected
to report on progress when the CSA holds its 37th AGM, Conference and Exhibition
in Santo Domingo in October.
These new initiatives can offer Caribbean nationals the kind of skills and career
opportunities that will further enhance regional development. We look forward to
the President's announcement in October.


Mike Jarrett, Editor


2 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007





MESSAGE FROM THE PRESIDENT I


Caribbean


Maritime -


a forum for


exchange


of ideas


THE first issue of our
official journal Carib-
bean Maritime, distrib-
uted during our sixth
Caribbean Shipping
Executives Conference in
Mayaguez, was indeed a
total success as we pro-
jected when we decided
to launch this magazine.
The special and standard
features were very well
accepted by our readers
around the world.
This our second issue,
dedicated mainly to the
cruise business, will comple-
ment what we have done


during the last few years at
our conferences and meet-
ings, which is to have more
participation in discussion
and dialogue about this
important sector of the
maritime industry.
I take this opportunity to
thank all players involved
not only in our first issue,
but also in this one. As I have
said before, I encourage
everyone in the maritime
business to advertise in this
your magazine.
We will continue to
work hard in the continued
improving of our journal. As


said by our Editor in the first
issue, our commitment is to
the pursuit of excellence.
I do not want to finish,
before I remind everyone
in Caribbean shipping, and
particularly members of the
Caribbean Shipping Associa-
tion, that this is our maga-
zine and we therefore invite
the participation of every-
one. The pages of Caribbean
Maritime provide a forum for


the exchange of ideas which
will ultimately support
development, growth and
expansion of the shipping
industry. Any development
in your area should be sent
to our Editor and also feel
free to give us your feed-
back. This is very important.
Fernando Rivera
President, Caribbean
Shipping Association


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 3


CikRIEBBE

The next issue of "'Caribbean Maritime"
M MTIM E will be out in January 2008. So don't
the boat. Call today to book your
Don't Miss the boat! ads'ertisement.
Got a message to put across? Then you won't Please contact Lester Powell at
find a better spot than "'Caribbean Maritime", Land & Marine Publications Ltd:
the regional publication of choice for people in Tel: +44 (0)1206 752 902
the shipping industry. Email: lesterpowelI@Iandmar!ne.com






B' CRUISE INDUSTRY AND THE CSA





Cruise industry is



CSA's natural ally


Under the leadership of
its first female presi-
dent, Corah Ann Robert-
son-Sylvester, the Carib-
bean Shipping Association
(CSA) took the decision in
2004 to establish a Cruise
Committee.
For the first time, the
growing importance of this
business for the Caribbean
maritime community was
formally recognized within
the Association, the voice of
Caribbean shipping indus-
tries for over three decades.
The effort to incorpo-
rate this business into the
body and work of the CSA
is strongly endorsed by the
current president, Fernando
Rivera, who himself is much
involved in this business.
The CSA's Cruise Commit-
tee immediately set out to
make the CSA membership
more aware of the contri-
bution of cruise tourism to
our national economies. We
organised presentations and
invited speakers to address
cruise issues of interest to
the Caribbean maritime
community and the CSA
membership.

Website
The CSA's website www.
caribbeanshipping.org
- now has a dedicated cruise
industry page and we added
a cruise workshop to our
annual Caribbean Shipping
Executive Conference (CSEC).
To me, it is only logical
that the CSA's official publi-


cation, Caribbean Maritime,
now dedicates a special
edition to this growing busi-
ness. I applaud the vision of
the editor, Mike Jarrett, for
supporting the committee's
efforts and I look forward to
reading the contributions
made by our members and
cruise partners.
As the largest cruise
market in the world, the


ing the size of small float-
ing communities, bringing
new challenges both for the
industry and for the destina-
tions receiving these vessels.
More and more, congestion
is measured not in traditional
port terms but in terms of the
capacity of the destinations
to absorb the ever-grow-
ing number of passengers
coming ashore. The industry


approach. Maritime trade
needs economic develop-
ment and we see the cruise
business as one of the growth
engines in our region. In this
respect, the cruise industry is
our natural ally.
The future of Caribbean
cruising looks bright and
the CSA is in strong support.
Growth brings with it new
challenges and puts more


"The future of Caribbean cruising looks

bright and the CSA is in strong support"


Caribbean has for a long
time taken the cruise busi-
ness for granted. However,
under the growing pressure
of competition from other
regions, this is now chang-
ing. Competition leads to
investments and the Carib-
bean's cruise investment
book is now larger than ever.
In the period until 2010
many millions of US dollars
in cruise-related port and
infrastructure investments
is planned in the wider
Caribbean Region. This will
trigger further investments
in maritime and tourism
services and products. These
investments are the result
of confidence of the cruise
industry, which is translated
into the building of yet
another generation of new
and larger cruise ships in the
order of US$ 15 billion in the
period 2007 to 2010.
These ships are reach-


now recognizes the need to
build stronger links with the
Caribbean communities and
is making efforts to build
strong, long-term relation-
ships with the Region.

Partnerships
On the other hand, the
Caribbean people more and
more realise the contribu-
tion of this industry to their
economies, thus paving the
way for further partnership
and growth. Our ministers,
our tourism organizations,
the CSA members, cruise
executives and representa-
tives all participate in our
efforts to contribute to the
growth of this partnership.
In this issue, you will read
their contributions and their
comments.
The CSA looks at the
cruise business primarily
from a maritime perspective,
and in this we take our own


pressure on existing ones.
Congestion and over-
crowding were already
mentioned, but the environ-
ment as well as safety and
security can be added to this
list. All these topics are on
the agenda of the CSA and
we will continue to address
them from our particular
maritime perspective. We
welcome everyone who
recognizes our efforts and
wants to participate. There
are no limits to what we can
jointly achieve. m

Jan Sierhuis
Chairman
CSA Cruise Committee


4 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


















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ai' COVER STORY CRUISE CAPITAL OF THE WORLD


The modern cruise industry has grown
and expanded rapidly in its relatively
short history. Passenger growth has aver-
aged 8.2 per cent per year since 1980. In
that time some 120 million passengers
had taken an ocean cruise about 60 per
cent of them in the past 10 years and 35
per cent in the past five years.
Growth seems set to continue. The
Cruise Lines International Association
(CLIA)* has calculated that 12.6 million
passengers will board cruise ships in
2007 500,000 more than in 2006. The
CLIA expects that 31,028,000 adults will
cruise within the next three years.
The projections are conservative


and, all things being equal, achiev-
able. Passengers are offered a variety of
convenient airlift options and the cruise
lines, aggressively marketing the out-of-
this-world features of their new ships, are
making it easier for the cruiser by putting
in place more cruise embarkation points.


New passengers are attracted by the
convenience of driving rather than flying
to the port of embarkation. This has
strengthened the appeal of cruising as a
vacation alternative.
The growth can be seen in the
number and size of ships calling at Car-
ibbean ports. On April 18 this year, Royal
Caribbean received its newest Freedom-
class ship,'Liberty of the Seas', from Aker
Yards in Turku, Finland. The 160,000 gt
'Liberty of the Seas' shares the title of
world's largest cruise ship with sister-
ship 'Freedom of the Seas', launched in
May 2006. The 'Liberty' has a capacity of
3,634 persons and the vessel's Carib-


bean itinerary started on May 19, 2007.
Royal Caribbean's new Freedom-class
ships will be joined by a third, 'Inde-
pendence of the Seas', in 2008.
For the cruise industry, 'big' is the
order of the day. Not all the lines are
operating big ships, however. Some still


. ..........
.. ...... ..


6 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


Handling larger ships with more passengers is a continuing
challenge for Caribbean destination ports. Ports must grapple
with problems of sustaining the environment on top of all the
physical and logistical challenges


Left: Grenada's new facilities
Right: Idyllic destinations



offer a more intimate or exclusive set-
ting. Pearl Seas Cruises offers a luxurious
cruising experience in a new fleet of
intimate cruise ships designed for world
service. These new ships, with a maxi-
mum capacity of 210 passengers each,
market the quality of their onboard serv-
ice. The company's first ship is sched-
uled to set sail in July 2008 to cruise the
Canadian Maritimes, New England and
the Caribbean. Also, Oceania Cruises is
offering cruises to the Caribbean and
Mexico, among other exotic ports of call.
Oceania is a distinctively different cruise
line with just three modern luxury ships
carrying 684 guests.
Handling larger ships with more pas-
sengers is a continuing challenge. Ports
must grapple with problems of sustain-
ing the environment on top of physical
and logistical challenges. Already, the
number of cruise passengers being
handled by some small ports every year
is several times the local population.

Revenue and direct spending
The countries of the Region benefit
from the taxes and fees paid by the
ship in port. However, most of the
income a country derives comes from
the spending of cruise passengers
while ashore. A study by the US-based
Business Research & Economic Advisors
(BREA)** found that cruise ship calls in
the Caribbean during the 2005-2006
cruise year generated $1.8 billion in
direct spending by passengers, crew
and cruise lines.
BREA found that, on average, the
typical cruise ship carrying 2,000 pas-
sengers and 800 crew members gener-
ated $190,476 in passenger and crew
expenditures during a single port-of-
call visit. The typical passenger spent
an average of $98.01 at each Caribbean
port visit, while average spending by
crew members was $74.56. However, as
Jan Sierhuis pointed out: "Spending is
very concentrated in five or six destina-



































































































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I'F COVER STORY CRUISE CAPITAL OF THE WORLD


'Westerdam'- have Caribbean itineraries.
Royal Caribbean has six ships in
Europe offering Mediterranean cruises
out of various European ports including
Barcelona, Venice and London. Royal
Caribbean has announced its largest-
ever deployment in Europe, with seven
ships visiting in 2008.
Princess Cruises, said to be the
most successful in capitalising on the
growth in Europe, placed five ships
there this year and says it has had no
problems filling cabins.
Celebrity has four vessels based in
Europe this summer/autumn season
offering round-trip sailings out of Rome.
Cunard's 'Queen Mary 2' and
'Queen Elizabeth 2' both offer cruises
out of London. Cunard's newest luxury
vessel, 'Queen Victoria', will launch this


December, also with London departures.
Disney Cruise Line was also involved in
the Mediterranean business this summer.
Cruise lines are looking to exploit
the success of the European market,
which returned significant growth and
healthy net revenue yields last year.
The Caribbean is usually 'soft' until late
October and early November after the
hurricane season, so ships that cruise


the Caribbean are staying in Europe
longer, not returning to the Region
until November or December.
Caribbean governments, through
their tourist boards and tourism devel-
opment agencies, may want to review
their approach to the industry, given
what today's signs say about the future.
The Caribbean has real competition
from Europe while having to deal with
new demands and expectations of a
changing cruise market.

Changing market
There are signs that the cruise market
is indeed changing. Younger persons
are taking cruises. In 2002 about 28 per
cent of cruise passengers were under
40 years old and 54 per cent were
under 50. By 2006 about 31 per cent of


cruise passengers were aged under 40
and 61 per cent under 50.
The figures suggest that only about 17
per cent of Americans have taken a cruise
vacation thus offering potential for
growth and that the so-called Genera-
tion X is the group most interested in
taking a cruise vacation. The industry will
therefore need to be more aggressive
and creative in its marketing techniques


and target directly Gen Xers, minorities
and children. The market is still largely
untouched and strategies are being
drawn up to beam advertising messages
at groups not previously targeted.
Currently, Caribbean cruise destina-
tions have been largely passive with
respect to marketing and promotion. The
destinations benefit directly from large
numbers of cruise passengers coming
ashore, yet little time and resources are
expended toward this end.
The lines do nearly all the advertis-
ing in cruise tourism. The messages and
visuals they present to target markets
are all about the ship: its state-of-the-art
amenities and the quality of food, staff
and service. In television, internet and
press advertising, the ship is the destina-
tion. Little is said or shown of the ports to
which the ship goes. And, since the cruise
ports themselves do not advertise, they
are not really visible in the market.
Young adults do not do the same
things their parents do for fun. Anyone
who has raised adolescent children
knows this. Young adults want more
excitement and high-energy activity.
They play harder and party longer. Their
parents may, but Gen Xers may not, find
the local butterfly conservatory or ostrich
farm exciting enough to entice them
away from their superlative onboard
experience. They are less likely to queue
up for a day of viewing arts and crafts
and shopping for straw goods or to


Cruise lines are looking to exploit the success of
the European market, which returned significant
growth and healthy net revenue yields last year






CRUISE CAPTIAL OF THE WORLD


feast on nature in a Caribbean lain forest
The younger generation of passengers is
mole likely to be looking for excitement
in the foilm of watei spoi t, deepsea fish-
ing and Iockclimbing.
If Caribbean ci uise destinations do
not provide this level of excitement,
then the ship certainly does. Cruise
ship designers include eveiy fun and
play activity conceivable and not many
destination poi ts can match this, so Cai-
ibbean destinations may need to review
their traditional approach. Passivity may
not be the best strategy foi growth at
this time. Caribbean destinations and
tourism planners will have to look at the
new demands of an emerging mai ket
and come up with new and exciting
ideas so as to keep pace
The lines have little choice in the
matter They have.to keep the steam
of ideas flowing..hey have ships in
s5ri ce and on order to fill They
have been advertising on television
and have been carefully reading the
demands and trends. Not only are they
constantly upgIading the produce t, they
have been increasing the number of ports
from which passengers may boaid.
Over 90 per cent of passenger s
surveyed see a real benefit to having
mole ci uise embai kation points. The
BREA sul vey showed that, foi passen-
gei s, the key benefits were cost savings
(73 per centj and a shorter d ive 173
per centi A significant piopoi tion 169


per centi identified not flying to the
point of embai kation as a real con-
venience Seventy per cent of cruisers
and potential cruisers said that having
mole ci uise embarkation points would
increase their likelihood of cruising in
the next three years.
New Yoi k, for example, is number six
ci uise port in the USA, largely because
of the new Brooklyn Ci uise Terminal.
According to the CLIA, there was a 45
per cent increase in passenger s embai k-
ing in New York in 2006 with 536,000
cruisers boarding .ship-This brings New
Yo k back.to the lee'lis of 2004, before
Royal Ca iibbea" moved its home port to
Cape Libel ty in New Jersey

Marketing
The lines have been relentless in their
mar keting efforts and, aimed with
good intelligence, have been Cuite suc-
cessful in justifying the capital invested
in ships now in service and ships not
yet delivered. There is literally too
much at stake foi them to be less than
aggressive, let alone passive, about the
cruise industry.
So it is understandable that they
are increasingly concerned about how
comfoi table, safe and enter tained
their passenger s are while on a shore
visit. The lines need the repeat busi-
ness Improving the infl asti uctue in
and around destination poi ts so as to
accommodate more passengers com-


fortably is an option being explored
Car nival has developed a poi t in the
Turks & Caicos Islands and is discussing
a project in Honduras. Holland Amelica
has developed an island in the south-
ern Bahamas called Half Moon Cay, also
used by Carnival Cruise Lines
The importance of cruise )Or ts
expanding and improving their infia-
str ucture to deal with bigger ships
calling more passengers cannot be
overstated The tend towards building
sup)e -sized cr uise ships, led by Royal
Ca ibbean, will continue As mentioned
earlier, after only just recently intio-
ducing the 160,000 gt Liberty and
Freedom ships, Royal Caribbean has
announced plans to build a 220,000 gt
ship for 51.24 billion.
Discussion and dialogue aLound the
issues are only just getting into sti de.
The cr uise lines are already I)Lltting
these mega-ships into ser vice m


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Oren Crie re'sponsibl fo moiorn trve Por of Phldepi & Cade and
Prncs Crie an tors trnd an prvdn P Pot (New~ Yok)


CARIBBEAN ~ MARTIM I OCOE -6EEME 620
































































Wartsiea Caribbean; Tel. +1 787 701 228 B. Fax *1 787 701 2211
Wartsii Guatemala; Tel. *502 2384 9600, Fax +502 2384 9610
Wartssia Panama: Tel. +507 317 4100, Fax +507 317 6794
Wartsili Dominicana: Tel. +1 809 564 7184. Fax +1 809 372 7968


wARTSILA














Carnival


expects


a record

* Carnival Cruise Lines is considered a
leader in the Caribbean, carrying more
passengers, sailing to more destinations
and operating more voyages in the
Region than any other cruise company

* Carnival expects 2007 to be a record-
breaking season in the Caribbean. It
will carry 2.9 million cruise passengers,
the most in its 35-year history

* In 2007 Carnival will deploy 18 ships
in the Caribbean with 14 of those offer-
ing year-round service

* The Company will offer more than
1,150 cruises of three to eight days'
duration in 2007

* In November 2008 the Company will
introduce its largest-ever 'fun ship',
the 3,006 passenger capacity 'Carnival
Splendor', out of Fort Lauderdale to
San Juan, St Thomas, Nassau and Casa
de Campo

* The parent company of Carnival
Cruise Lines continues to develop new
port-of-call facilities. The $42 million
Grand Turk Cruise Centre includes an
800 ft white sand beach, a swimming
pool, cabanas, retail shops and what
is said to be the Caribbean's largest
themed bar and restaurant

* Carnival has been working with desti-
nation partners to enhance and expand
shore excursion programming. In 2007
it will offer a choice of some 900 land-
side tours within the Caribbean.


By Brendan Corrigan


The Caribbean continues to be the
most popular cruise destination,
featured on roughly half of all North
American cruise line itineraries,
according to the Cruise Lines Inter-
national Association (CLIA).
Why is the Cai ibbean the niuml)e one
Noi th Amei ican cl uise destination' This
sp)ectacLtlai sailing legion offers eve-
y thing consumers want in a vacationI
pic tile-I)el fect wveathel, glaciots hos-
pitality, unicilIe sightseeing exp)ei fences,
gleat shopping and, of coUise, goigeolus
beaches But thele s movie to the Cai ib-
bean than gieat beaches This is one of
the most culturally diverse legions in the
wol Id, with a Iich histoi y dating back
centill es, magnificent aichitectuile and
historical attractions and landmarks
Ci uise ship guests ale no longer
content to sit on a I)Is and watch
the passing scene y They want to
ti uily expel lence (the destination and
immel se themselves in the cuiltuie and
traditions of the Islands they visit To
catel fol changing consumer piefel-
ences, Cl ise lines have incoi 1)01 ated
mole adventuie-type tolis into then
shoi e excul sions, evel y thing flom
kayaking, canoeing and hose iIding
to scubI)a diving, deepsea hshing and
so-called canopy totlI s wlveie guests
ti avei se the lush Cai ibbean cotnti y-
side V'o suspended cables
The Cal ibbean has a Iich history and


ci ulse lines have also updated then shoe
excui sion choices to pilovide guests with
a moe upI) close and I)ei sonal look at the
many diverse cultuies and traditions of
this fascinating legion A good example is
the toui called Natuiles Hidden Tieasuiles
& Calib Indians in Dominica on which
guests can intel act with indigenous Cailib
Indians, sample local cuIsine, expei lence
traditional Cai iI) Indian, Ituals, IIde a
hose though native foliage and still in
a aii forest

Unique perspective
Gianted, vacationers can still ielax on
the Cai ibb)ean s gorgeous white sand
beaches and enjoy ti additional e:\cui -
sions such as natuile walks and city
touiIs, but these mole active touis p1o-
vide visitor s with a uniclue i)eispec tive
on some of the wide-ianging activities
available within the legion
Like thle ciluise Industi y, thie Ca ibbean
continues to evolve, withll mole to see
and do than evel before, and ciliIsing is
thle pel fect way to expel ience the val iety
of enchanting destinations that make up
this fascinating and diverse legion
We in the ci uise industi y encoui age
vacationers to take advantage of the
wide iange of Cl uise choices, styles and
amenities and to explore all that the
Cal ibbean has to offel m

Breitiian Corriiian is senior vice
presiiellnt, miil-ille opel'tions,
Carni'ail Cruise Lines


< \RIil 4HI \N M NI \ II II I ... I i 1 1 1 i 1 '.11 1 _1 11






B' CARIBBEAN VIEWS




Does the Caribbean really


benefit from the cruise


industry?


Cruise tourism has
evolved as a global
industry in a relatively
short time. In its modern
form, it started to grow
and develop around the
mid 1960s.
The ca ulse industls as it
exists today is an eXtieme
foi m of capitalism In neai ly
evevy facet of its op)elations
- in the vast disconnect
between its capital base,
Its laboII) and its market, in
the extreme consolidation
of its powve and wealth, in
its relentless app))etite fol


innovation; in its nearly total
freedom from a strong gov-
ernmental hand the cruise
industry is business at its
most unfettered." (Kristoffer
Garin 2004. Devils and the

By Fritz Pinnock

Deep Blue Sea: The Dreams,
Schemes and Showdowns
that Built America's Cruise
Ship Empires. Penguin
Group. ISBN 0-670-03418-5)
According to Garin: "The
1960s and 1970s saw the
final demise of plantation


crops such as sugar, cotton
and copra in the Carib-
bean. Some islands such as
St Lucia, Dominica and St
Vincent turned to produc-
ing 'desert' crops such as
bananas and coffee. These
crops were sold at high
prices under special agree-
ments with European coun-
tries that once held them as
colonies." *1
"Now these protec-
tions are disappearing as
the trade rules within the
European Union make such
agreements illegal. The old


The Caribbean world's
number one cruise
destination






CARIBBEAN VIEWS I


plantation crops are being
replaced with a new lucra-
tive crop, the tourist crop,
which it was felt would bring
in a handsome sum to the
island revenues." *2
"Although the strategy
was never well thought out,
from the beginning tourism
was embraced as the pri-
mary development strategy
for the region. By virtue of
its geographic location, its
proximity of islands, tur-
quoise waters and cultural
diversity, it did not take
long for the Caribbean to
establish itself as the world's
number one cruise ship des-
tination with 46.6 per cent of
capacity deployment." *3

Over 103 million
passengers
Today, it is the fastest grow-
ing segment of the leisure
travel market, recording an
annual average passenger
growth rate of over eight
per cent since 1980. Over
103 million passengers have
taken cruises lasting two
days or more, from 1990 to
the present day, because of
its growing attraction. Carni-
val Cruise Lines, Royal Carib-
bean Cruise Lines and Star
Cruises control over 80 per
cent of the industry's market
share. This is expected to
increase to over 90 per cent
by 2010.
My doctoral thesis
(entitled 'Power Relations
Among Stakeholders and
the Future of Cruise Tourism
in the Caribbean') seeks to
determine if there is inequal-
ity in power relations among
the major players operating
within the Caribbean and
their impact on the future
of the Caribbean's cruise
tourism industry. Stakehold-


ers, in this context, refers to
all players actively involved
in this industry, includ-
ing ports, shipping lines,
government agencies, tour
and attraction operators, in-
bond shops and local shops.
A survey of 500 respond-
ents among the stakehold-
ers'group across the Carib-
bean revealed the following:
Seventy-six per cent of
stakeholders in the Carib-
bean cruise shipping indus-
try believe it is the strategy
of the cruise lines to encour-
age competition among
individual destination
countries. Cruise lines speak
to the Caribbean through
one voice, the Florida-Car-
ibbean Cruise Association
(FCCA), but negotiate with
the Caribbean as individual
countries.
Eighty-nine per cent of
respondents believe that,
while it is costing the Carib-
bean more to accommodate
these ever-larger cruise ves-
sels, the economic returns
to the Caribbean are getting
less.


Seventy-six and one half
per cent believe that most
of the money spent in the
local industry by cruise ship
passengers and crew mem-
bers goes to the in-bond
duty free stores and is not
filtered much into the local
economy.
Eighty-nine per cent
believe that, as the cruise


lines are increasingly nego-
tiating directly with the
attractions for lower prices,
the local tour operators are
getting weaker in the stake-
holder chain.
Ninety-four per cent
of respondents believe the
Caribbean islands have been
targeting absolute numbers
of passengers, rather than
average spending per pas-
senger, as the basic measure
of success that is, quantity
and not quality. The Carib-
bean needs to collect its
own statistics on cruise pas-
senger spending.
Eighty-two per cent of
respondents believe that
governments should place
quotas on the number of
landed cruise passengers
based on the carrying capac-
ity of their island.
"The same quirks of
law and history that have
enabled it to grow at such
a remarkable rate have also
given us a glimpse into a
possible future in which gov-
ernment has receded almost
entirely into the background


and society in nearly every
aspect is governed by the
markets alone." *4
Although the study is not
yet completed, preliminary
findings reveal that the
changes in cruise shipping
have become so drastic that
Caribbean governments
need to reconsider their
parochial approach to the


cruise shipping business. It is
suggested instead that they
adopt a more collaborative
approach with the aim of
extracting greater value
from their cruise shipping
customers rather than focus-
ing solely on taxes. m


1. Gossman, L. 1998.
The Political Ecology of
Bananas: Contract Farm-
ing, Peasants, and Agrar-
ian Change in the Eastern
Caribbean. The University
of North Carolina Press,
Chapel Hill, North Carolina.
2. Gilmore, J. 2000. The
Tourist Crop in: Gilmore J.
(ed) Faces in the Caribbean.
Monthly Review Press,
London, Latin America
Bureau, New York.
3. Business Research &
Economic Advisors (BREA)
2006. A survey-based
analysis of the impacts of
Passenger, Crew and Cruise
Line Spending. Economic
Impact of the Cruise
Industry, Cruise Passen-
gers Equal Profits. The
Florida-Caribbean Cruise
Association Magazine, First
Quarter 2007.
4. Garin, Kristoffer 2004.
Devils and the Deep Blue
Sea: The Dreams, Schemes
and Showdowns that Built
America's Cruise-Ship
Empires. Penguin Group.
ISBN 0-670-03418-5


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 13


By virtue of its geographic location,
its proximity of islands, turquoise
waters and cultural diversity, it
did not take long for the Caribbean
to establish itself as the world's
number one cruise ship destination






A' THE HUMAN FACTOR


Cruise shipping labour


- service not servitude


By Burnett B. Coke

If you have never taken
a cruise then perhaps,
immediately after read-
ing this article, you should
booka cruise: any cruise,
going anywhere. For those
who have previously taken
a cruise, the chances are
you can readily relate to the
high efficiency of the crew.
Over the past decade,
cruises have increasingly
posed a major challenge to
stopover tourism twice
the average annual growth
- by providing the best of
both worlds: the cruise as
one attraction and stopover
ports as another.
What defines the cruise
line industry, with its high per-
centage of repeat clients and
continued expansion from
its original upper income
market to middle income
mass market? Apart from
Flags of Convenience, the
answer lies in the visionary
leadership which has ensured
that the crew understands the
difference between service
and servitude. Professional-
ism resonates through the
officers, staff and crew, all
of whom help to maintain
the fantasy for clients while
remaining grounded in rigid
service standards. It was the
same imaginative leadership
that ensured the implemen-
tation of biometric security
measures even before the
9/11 crisis, thus reducing the


impact felt in other tourism
interests.
The view has been
advanced that cruise lines
recruit skilled but vulnerable
and malleable crew from
developing countries and
thereafter pay sub-minimum
wages. Concurrently, the
lines are said to implement
arduous terms and conditions
on crew members: six-day
working weeks for periods of
six months. While valid, and
warranting another discus-
sion, this is not unique to
cruises, nor would it explain
the sustained efficiencies. In
fact, it should serve to under-
mine those efficiencies and
professionalism.

Service
All too often you find
yourself at the end of poor
customer service for which
you have already paid hand-
somely. Such representa-
tives confuse their service
as being synonymous with
servitude and act out their
misconceptions. The cruise
ship crew, notwithstand-
ing terms and conditions of
employment, ensures that
you get value for money.
Necessity is the mother of
invention and cruise workers
have been honed into truly
multi-skilled workers to
ensure continued business
viability and survival at sea.
A quick scan of crew
demography reveals even
greater diversity than the
passenger list itself, with


crew members representing
up to 50 countries. This dis-
penses with the stereotypical
thinking that specific skills
are held solely by specific
ethnic and geographical
groupings. Instead, training
and development pro-
grammes are integral to the
workforce efficiencies and
your 'fantasyscape' on float-


ing theme parks. Cruise ship
crews are probably the most
globally diverse yet physi-
cally dense labour forces
anywhere. They constitute
a microcosm of what a truly
global workforce might look
like, and how multination-
als are responding to the
challenge of both recruiting
and managing such diverse
aggregations of workers.
This enviable workforce
competence and respon-
siveness is grounded in
programmes that ensure
structured and consistently
high standards without cre-
ating a rigid and impersonal
workforce.
One unfortunate omis-
sion of this phenomenal
success is the continued
failure of the Caribbean
region to fully capitalise on
glaring opportunities. While
Caribbean cruise shipping
accounts for over 40 per
cent of total cruise passen-


gers, Caribbean nationals
comprise less than seven per
cent of cruise workforces.
Not only does this deny the
Region of potential earnings;
it also denies regional work-
ers exposure to structured
training, development and
efficiencies. Filipinos, on the
other hand, comprise a dis-
proportionate but distinctly


favourable portion of crews.
In response, we need to
throw out the challenge to
Regional bodies, namely the
Caribbean Hotel & Tourism
Association and Caribbean
Tourism Organisation, to rec-
ognise best labour practices
and, where possible, to steal
programmes shamelessly for
regional implementation.
Succinctly stated, cruise
shipping provides fertile
data and practices for mim-
icry and companies should
learn that service, not servi-
tude, will be critical to global
competitiveness. m

Burnett B. Coke has over
16 years' experience
in human resources,
industrial relations and
conciliation/mediation.
He holds an MA degree
in Labour and Develop-
ment from the Institute
of Social Studies in the
Netherlands.


14 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


Over the past decade, cruises
have increasingly posed a major
challenge to stopover tourism





























T wo years ago, after recognis-
ing that the Caribbean was "the
world's best known, unowned brand"
we decided to set up an organisation
whose purpose was to "own, pro-
mote, protect, advance and enhance
the Caribbean brand". And, since
the Caribbean is mostly associated
globally with the tourism industry,
it made sense for that brand to be
owned by the tourism sector.
We further recognized that the own-
ership and development of that brand
had to be a joint private-public sector
exercise and so the Caribbean Tourism
Development Company was created
for that purpose. It is owned equally
and jointly by the Caribbean Tourism
Organisation and the Caribbean Hotel
Association respectively the largest
public-sector and largest private-sector
organizations in the Region.
The Caribbean Tourism Develop-
ment Company aims to achieve four
broad goals:

Delivery of experiences that compel
the visitor to extol the virtues of the
Caribbean on their return home

Efficient delivery of effective
information

Establishment of low cost, high fre-
quency, high quality transportation

Forestalling, reducing and eliminating
impediments to sustainable growth.


It was an examination of these goals that
propelled us to take a fresh look at the
cruise industry in the Caribbean and we
began to see some "inconvenient truths".
It was clear that, over the years, the
cruise industry had become the "whip-
ping boy" of the tourism sector. It was
the sector that we punished whenever
we would not punish the real object of
our wrath. A closer examination of the
facts led to the conclusion that land-
based tourism businesses were often
upset with the cruise industry because
cruise companies managed to get what
the land-based entities had failed to
get. We envy the cruise companies'
labour agreements. We envy their
organisation. We envy their purchas-
ing power. We envy their tax structure.
And, more than anything else, we
really, really envy their profitability.
We whip them because we envy the
significant business advantages they
have managed to wrangle for them-
selves to secure the lowest possible
operating costs.
On the land side, we needed to rec-
ognise that tourism is an export and few
countries knowingly reduce the com-
petitiveness of their exports by increas-
ing their prices through heavy taxation.
Instead, we need to find a way to make
our land-based businesses more com-
petitive in what is now the world's most
competitive business, tourism.
Let me make it very clear, I am con-
vinced that the economic benefits that
will flow to our countries from tour-


ism will increase substantially if, as the
cruise companies have done, we find a
way to make this export more competi-
tive in price on the world stage.


Until now in the Caribbean, most of the
passionate discussion about the cruise
business has been precipitated by
hoteliers because many believed that
all cruise passengers were potential
hotel visitors and if the cruise passen-
gers disappeared, their hotels would be
full. That we found to be nonsense.
On the other hand, the cruise industry
did not help matters by telling hoteliers
and governments that cruise passengers,
once they had enjoyed a wonderful
experience at a port, were all potential
land-based visitors at some point in the
future. That was also nonsense.


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 15










The truth is somewhere
in the middle and the truth
varies from destination to
destination.
For years, in the Carib-
bean, we havejuxtaposed the
20 million stopover visitors
against the 20 million cruise
passengers. Let us look more
closely at those numbers.
The Caribbean accounts
for about 41 per cent of the
global cruise business, which
represents some 5 million
people in total not the 18
to 20 million that is often
reported. This higher figure
is the result of counting
the same ci uise passenger
at each destination on a
multi-destination cl uise. The
fact is that we have 18 to
20 million opportunities to
impress these 5 million cruise
passengers whose average


length of stay in our ports is
less than a day Remember
that this number compares
with our movie than 20 million
true stop-over visitors whose
average length of stay is some
five days, representing 100
million full daily opportunities
to impress those visitor s.




Furthermoie, fiom oui
observations, theie aie at
least six categories of pas-
sengeis on most Caiibbean
cruise ships:
The first category covei s
pei sons who cannot afford
the Caribbean except if they
came on a cruise ship. Those
people cannot afford to be
converted.
The second category
covers persons who could


not affoid the land-based
equivalent of the kind of
multiple destination vaca-
tion offer provided by cruise
ships. Those people have no
interest in being converted.
We do not like to admit it,
but what many people buy
on a Caribbean cruise is a
multi-destination vacation.
Has anyone tried to price
such a land-based multi-
destination vacation, even if
the air connections woi k?
The third category covers
persons who piefel to
cruise. They, too, have no
interest in being converted.
If cruise ships did not exist
in the Cai ibbean, they might
go elsewhere entirely.
The fourth category covei s
people who can afford a land-
based vacation and can even
afford a multi-island vacation,
but they far piefei to expel i-
ence it on a cruise because of
the convenience. They also
have no interest in being con-
vei ted. They have no interest
in the packing and unpack-
ing and the multiple airport
experience required by a
land-based multi-destination
experience. This contrast has
only been exacerbated by
the recent security i ules at
aii ports.
The fifth category covers
people who have never been
to the Caiibbean before but
who, with sufficient evi-
dence and experience, can
be converted to take their
next Caribbean vacation on
land at a single destination
instead of a cruise ship.
The sixth category covers
people who are neither land
inclined nor ci uise inclined.
They aie vacation inclined
and they switch back and
foith between ciuises
depending on their whims.
These include meetings,


incentive groups, honey-
mooneis, weddings and
other niche groups.
Let me make it clear that
even though it appears that
four out of these six aie
difficult to convey t, we do
not know the size of each
category, so we do not know
if the numbers that can be
convey ted aie greater oi
smaller than the number s
not inclined to be convey ted.


But here are foul conclu-
sions that aie more cei tain.
The first is that, at some
level, ci uise ex: incremental expenditui e
for the destination. It is not
dilution of expenditure by
people who might have
stayed in a hotel.
The second is that, of
those who can be converted
to a land-based vacation,
they might be a relatively
very small proportion when
compared with the total
number of stopover visitors to
the Cai ibbean, so the dilution
effects might be minimal.
The third conclusion is
most important. Frederick
Reichheld published the
results of a study in the
December 2003 edition of
the Hai vaid Business Review
in which he concluded that
there was one number that
any company or country
needed to giow. That is the
number of people who will
recommend youL product or
service to their friends and
relatives. So, to a very laige
degree, recommendation is
much more important than
conversion. So thle cl uise
passenger expei ience is
important to the extent that
it leads to a recommendation
of your destination to fi lends
and relatives. If you don't


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believe me, ask the ci uise companies
how many of their own passengers
return to their ships every yeai They,
too, iely heavily on recommendations
instead of returns.
The fourth conclusion is also impol-
tant. Foiget the average expenditure of
ci uise passengers compared with the
average expenditure of stop-ovei visi-
tois. Remember that the total expendi-
tuie of cruise passengers at a pai ticular
destination is very concentrated and
therefore very important to some small
but impoi tant sectors of oui economies.
We know very well which ones they are.
One has to admiie the Flo ida Caiib-
bean Cruise Association iFCCAi because
they undei stand fai more than we do
today the powel of networking They
understand the powei of people with
common interests working for common
causes and working toward common
goals. We have asked before wvhy theie
is no FCAA, Floi ida Caribbean Airline
Association. Few people know that, in
the recent lobbying on the Western
Hemisphere Tiavel Initiative regarding
the implementation of new uiles for US
travellers to the Cai ibbean, the airline
industry was not only opposed to post-


poring the implementation date foi air
tiavellei s, but actively lobbied against
the possibility of an extension Are we
then surprised that cruise passengers to
the Caribbean ale not recluired to have
a US passport until June 2009 and the
iecluliement foi air passengers went
into effect in January of this year?
Finally, I have asked many hotel
executives the following question
why is it that if the vice-piesident of
marketing for a hotel tells his presi-
dent that the hotel will iun 70 per cent
occupancy lie is applauded, but if the
vice-piesident of marketing for a cruise
line tells her president that they will iun
70 per cent occupancy she gets fired?'
Imagine what our economic conditions
would be like if we filled the vacant
room nights in oui destinations and
giewV OUi business closer to 100 per


cent utilisation of our invento iles
Theie is clearly a different mind-
set operating in the cruise industry
compared with the land-based industi y
and there is much to be leaint fiom the
cruise side of the ecluation.
Today, the Caribbean ci uise industi y
is the low-cost, high-quality vacation
piovidei that also offei s the best pre-
packaged multi-destination vacation. So
the most effective way to compete with
tle cruise industry is to present much
more competitive land-based products
in tei ms of both cost and quality foi
those two categories of per sons on
cruises that can be converted to land-
based vacations The objective should
not be to raise the cost of ci uises, which
would only serve to reduce the incre-
mental benefits and revenues that they
bring, the objective should be to lower
the cost of land-based vacations in all
of our destinations so that we are much
more competitive globally with ci uises
and, movie impoi tantly, with other land-
based options. It is entirely possible
that, by lowering some taxes, products
become more competitive, volume
increases and the total taxes collected
by our government would also increase.


We also need to remember that the
cost of getting to our destinations is
very much a part of the cost of the total
vacation foi our visitors, so we have to
work relentlessly to become a low-cost,
high-cluality provider of air tiansporta-
tion to become much more competi-
tive overall In many cases, the cost of
an entire cruise is much lower than the
cost of the flight alone to our destina-
tions. Most vacationers would iathei
spend their money enjoying their vaca-
tion, not getting to their vacation.



We need much better training and
development programmes across the
board to become more competitive. We
hear constantly about the level of service
that is now experienced on many ships.


ES'


We need to find ways to make multi-des-
tination travel available, easier and less
expensive. This is a significant advantage
on the side of ci uise lines and co-ope a-
tion between destinations is the only way
to become more competitive in this area.
Most import tantly, we need to meas-
ure per formance relentlessly. Ever y
cruise ship uses its customer evaluation
surveys to identify problems and trends
and address them as rapidly as possible.
Far too many of our destinations are
flying by the seat of their pants in an age
when flying with facts is becoming less
costly by the day. We need to emulate
the cruise lines in this area so that wve
identify and immediately eliminate
those items that irritate our customers
That is a most important tool on the
load to increased competitiveness.
So, the inconvenient truth might be
that we have much to learn from the
ci uise industry. Far from diluting oui
land-based business, closer examina-
tion might show that the cruise busi-
ness, thankfully, is a largely incremental
business that we would not have
received if cruise ships did not exist.
There is no question that, as our
land-based business becomes more
competitive, globally, all sectors of oui
Caribbean tourism indust y will exist
in greater hai mony while delivering
the maximum social and economic
benefits to oui citizens m


There is clearly a different mindset operating in the
cruise industry compared with the land-based industry


I \14113111 \N NI \RI I INII -it i-il 11' Ill- C-H ir 17


10:21.=






iN NEWSMAKER



Jose 0. Busto




To be the



best of



the best


JOSE 0. BUSTO has had a
lifelong admiration for
ships. As a boy he would
go to the old piers in his
home town of Gij6n in the
Asturias region of Spain
to watch and admire the
luxury liners.


At the age of 19 he left
home and travelled to the
Dominican Republic where
he worked in the shipyards.
Later he joined the cruise
lines and eventually became
chief purser.
In 1973 he married Mila-


gros Alvarez and in 1975 they
decided to settle in San Juan
where he founded Conti-
nental Shipping. His timing
could not have been better
because San Juan was about
to emerge as an important
cruise port.
Today the firm handles
a business volume of $20
million annually with 24 full-
time employees and dozens
of other part-time employ-
ees involved in stevedoring
and baggage handling.
Jos6 Busto is president
of the Puerto Rico Shipping
Association and this year his
company was honoured as
Leading Service Industry by
the Puerto Rico Chamber of
Commerce. He has also been
active in the Puerto Rico
Hotel & Tourism Association,
the Puerto Rico Chamber of
Commerce and the Spanish
Chamber of Commerce of
Puerto Rico.
Dean of Consular
Corps
"Our growth paralleled that
of the industry as a whole
and today we handle 92 per
cent of the cruise vessels call-
ing at San Juan," said Busto.
It was through his familiar-
ity with the cruise lines that


another door opened into
his consular service. Busto is
dean of the Consular Corps
of Puerto Rico and has the
distinction of being the only
member who is honorary
consul for two countries,
Denmark and Norway.
Continental was already
representing several cruise
lines and Busto recalls that, in
1977, Knut Kloster, president
of Norwegian Cruise Lines,
told him he was recommend-
ing to the Minister of Foreign
Affairs of Norway that Busto
should be named honorary
consul of Norway in Puerto
Rico and the US Virgin Islands.
Two years later he was
named honorary consul of
Denmark as well.
"Honorary consuls are
important because of their
roles in regulating the sea-
man's laws." More recently
Busto was proud to receive
the Knighthood of Charles V
of Spain from Prince Enrique
de Borbon.
After more than 30 years
at the helm of Continental
Shipping, Busto shows no
signs of slowing down. "My
vision has been to be the
best of the best," said Busto.
"The company has certainly
stood the test of time."


18 CARIBBEAN MARITIME


EEC WELL &SN lID
FAST uIus7 SIuPRIMSM
GCWDARDS 94PPIIG 9 1MUES LTIf
H. JAISONJONES&C( LOLT
bR w TNO Ifmm.MUSE~ TRADING ULTI
BMW sh, I "11mu, (1*1 AIR TWASPORT SEflICS LMf
Babadn. Wo hiu PLAAI1NUM PORT AGENCY INC.
T.s&am r?*6UWIWAM RMKAGENCIES INC.
Fa DOPSO~M SEAFREIGHTAGENCIES lrD1S) LTD.
Eaud 5" WhgWM WINDWARD AGENCIES LilI[EE


OCTOBER DECEMBER 2007




















,vr~






SI ST THOMAS


St Thomas


facing cruise


revenue decline

New Crown Bay facility draws business
away from West Indian Co dock

By John Collins


Linking North America with Latin America. Europe,
Australia/New Zealand and the South Pacific Islands.
For more. visit us at www.hamburgsud.com



No matter what. HAMBURGC.-- D


THERE HAVE BEEN DAYS
in recent years when
St Thomas was visited by
close to a dozen cruise
ships and half of them
would have to anchor out,
with passengers being fer-
ried ashore by tenders.
The West Indian Co iWICol
dock had a virtual monopoly.
But then last year the Viigin
Islands Port Authority signed
a 10-yeai agreement with
Pi incess Ci uise Lines and Hol-
land Ameiica to receive their
vessels at the new Ciown Bay
Dock, operated by the port
authority.
Although the number of
visitors continues to glow,
it has not been at a rate to
keep both facilities happy
So now WICo is complain-
ing that it stands to lose S1.2
million this yeai as a result of
the Crown Bay deal with the
two cruise lines.
In addition, Edwaid
Thomas, chief executive of
WICo, says the loss of some
200,000 passengers at the
WICo dock will translate into
a reduction of $20 million in
retail sales at the adjoining
Havensight Mall along with a
decrease in whaifage, dock-
ing and passenger fees.
WICo originally belonged
to the Danish West Indian
Co but aftei its depai tuie


revei ted to the Virgin Islands
government Undei an
agreement, WICo contributes
Sl million each yeai to the
government's Geneial Fund
Thomas wants the annual
contribution reduced to
5500,000 which is 10 pel
cent of WICo's net profit
'Passengei arrivals
continue to giow, but gioss
receipts taxes a good
barometer of detail spend-
ing have not kept pace this
year with the increase, said
Thomas. 'We are of the fhi m
opinion that the major factor
is the movement of Pi incess
Cruise and Holland Ameiica
from the bustling Havensight
aiea to the undei developed
Clown Bay aiea."
Remaining optimistic,
Thomas said new attractions
in the Havensight area were
expected to bolster revenues
and jump-start a mole suc-
cessful 2007-08 season He
said movie than 700 ves-
sels weie slated to call at St
Thomas, led by the 'Freedom
of the Seas, 'Emeiald Princess
and 'Queen Mary 2, which
will make 15 calls between
November and Apiil.
WICo wants the Virgin
Islands government to
submit legislation to change
the way WICo s payments
are computed.


20 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007











































N THE LATE 1990s continued growth
in the national economy of the
Dominican Republic created an urgent
need to expand the port system near
the capital, Santo Domingo.


the Caucedo peninsula.
In February 2005 Dubai Ports Inter-
national (DPI) announced formally what
had been in public discussion since
December 2004. It had completed


Plans to expand in the near future include

another US$70 million in investment


Existing cargo handling facilities on
the south coast were unable to cope with
the growing economy of the nation.
In 2000 CSX World Terminals came
together with the Caucedo Develop-
ment Corporation in a $200 million
plan for a new container terminal.
The joint venture set up a local com-
pany, Zona Franca Multi Modal SA, to
build the terminal. CSX World Terminals
was responsible for development, mar-
keting and management of ongoing
port operations.
Construction of the new terminal
began in 2001 on a greenfield site on


acquisition of CSX World Terminals, the
international terminal business of CSX
Corporation. Caucedo was an operat-
ing container terminal and already
working numerous containerships.
Glen Hilton, executive director of DP
World Caucedo, told Caribbean Maritime:
"With an estimated initial investment
of US$300 million, we commenced
operations and received our first vessel
on December 4, 2003. We are now receiv-
ing vessels for 16 different shipping lines.
Plans to expand in the near future include
another US$70 million in investments,
building additional berths and container


yards and building the Caucedo Logistics
Centre. This mega terminal complex will
allow for direct access to the expanded
container terminal, a first-class cargo
logistics centre and the Las Americas
International Airport. This will provide
logistics services unparalleled in the
Dominican Republic."
According to Mr Hilton, DP World
Caucedo has "a very strategic and
privileged location" between one of the
country's most important international
airports and a successful free zone area.
The port is only five minutes' drive from
Santo Domingo's international airport
and just across the highway from the
Santo Domingo Cyberpark, a free zone
facility with mostly high-tech industries.

Safety
Personal safety and a clean environment
are given priority in the port's manage-
ment and operations philosophy.
"DP World Caucedo is committed to
providing a safe and healthy >


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 21






A DOMINICAN REPUBLIC


workplace to protect all those affected
by its activities and to avoid or
minimise any adverse environmental
impact of its business," said Mr Hilton.
"Everyone within DP World Cauce-
do's organisation is responsible for
managing health, safety and environ-
ment matters. It is critical that each
individual accepts their responsibility
and accountability to ensure that we
have a safe and healthy workplace and
environment."
Fatal Five
Mr Hilton said DP World Caucedo put
special emphasis on controlling those
hazards that represent the greatest
potential for fatal injury the so-called
Fatal Five:
Pedestrian safety
Handling loads
Mobile equipment
Working at heights


22 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007






DOMINICAN REPUBLIC I


Contractor management.
"Our job is not finished till everyone
gets home safe, every day," said Mr
Hilton.
DP World Caucedo has declared its
total commitment to complying with
the strictest environmental standards
and norms. According to Mr Hilton,
studies show that local water quality is
superior to other parts of the Region
- witness the colonies of young and
adult fish in the Caucedo turning basin
as well as the clarity and transparency
of the water, with low levels of sedi-
mentation over the past three years.
"DP World Caucedo is also contribut-
ing to national tourism," said Mr Hilton.
"We have just created an underwater
marine museum in front of the Boca
Chica beaches, sinking an old tugboat
for scuba divers to explore.
"Our vision is to fulfil our position as a
leading world-class operator, recognized
for the quality and service we offer and
for the satisfaction of our clients."

In 2006 the terminals operated
by DP World handled nearly 42
million teu in ports from the
Americas to Asia. A significant
expansion is under way in mar-
kets around the world, including
China, India and the Middle East.
Today, DP World has a capacity of
about 48 million teu and employs
30,000 experienced people serv-
ing customers in some of the most
dynamic markets in the world
including the Dominican Republic.


Dominican Republic


set to receive 500,000


cruise passengers


M ORE THAN half a million cruise
passengers are expected to visit
the Dominican Republic from some
300 vessel calls during the 2007-2008
tourist season.
This is expected generate an income
of over US$60 million according to
Tourism Vice Minister Magalys Toribio
as quoted in the local media.
The Minister said a recent study had
shown that the cruise industry contrib-
uted over US$21 million to the port's
immediate area.
From October 2006 to April 2007
a total of 256,165 cruise passengers
arrived in 139 ships. This was down
from the corresponding period in 2005-
2006 when about 300,000 passengers
arrived in the course of 260 vessel calls.
A study by the Business Research &


Economic Advisors (BREA) found that a
cruise ship's 2,000 passengers and 800
crew members spent US$190,476 in the
city where it made a stop. "If the har-
bour and services taxes are added to
this, each ship that arrives in a Domini-
can port contributes nearly US$260,000
to the region."
Investment
Toribio said Sans Souci and Don Diego
ports had been leased with US$50 million
invested in the new terminals. Sans Souci
Port will open in December with stand-
ards to compete internationally.
Currently, of Dominican Republic's
ports, only Santo Domingo (Don Diego)
and La Romana receive cruise ships,
whereas Catalina island and Saman.
have facilities for docking. m


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 23






i ST MAARTEN


St Maarten's future as a popular
cruise port seems assured.
As the Port of St Maarten continues
to enjoy its role as a cruise call of choice,
the territory's government has moved to
secure the future of the industry.
The plan is to build a 445 metre cruise
pier parallel to the existing pier at the
A.C. Wathey Cruise and Cargo Facilities.
Cost of the expansion project is
US$97.5 million. Financing will include a
US$40 million loan from cruise lines Car-
nival and Royal Caribbean. Carnival will
provide US$34.5 million at a fixed rate
of 5.9 per cent per annum for 20 years


while RCCL will provide US$5 million at
similar rates. Remaining funds will come
largely from loan refinancing, existing
cash flows and projected income.
New pier
The new 15 metre wide pier will be able
to accommodate two Genesis class
ships of 220,000 gt. This means the port
will be able to accommodate six cruise
ships alongside simultaneously.
Two acres of land will be created in
Great Bay to allow the pier complex to be
linked to the main thoroughfare in front
of the John Craane Cruise Terminal Build-


St Maarten to



expand cruise



facilities


ing. The expansion project also embraces
infrastructure work including a beautifi-
cation of Back Street and Festival Village.
To make the investment worthwhile,
Carnival has guaranteed an annual
figure of 700,000 passenger arrivals. In
a similar commitment, RCCL has guar-
anteed 300,000 to 400,000 passengers
a year for St Maarten.
The second part of the project
includes a 260 metre extension of
the cargo facility quay wall. This will
provide an additional 8,400 square
metres of storage and handling space
for containers. A breakwater will be
installed to protect cargo ships docked
at Captain David Quay from rough seas.
Harbour Affairs Commissioner Theo
Heyliger told the local 'Daily Herald': "We
had to give up none of our assets to Car-
nival to guarantee the loan. We just have
to guarantee our harbour rates, which
we are also allowed to increase over time
with Carnival's approval. Between the
two cruise lines, St Maarten would not
only have an investment for the two larg-
est cruise partners but also a guarantee
of more than a million passengers annu-
ally to ensure business is sustained." m






TRINIDAD &TOBAGO I


Port of Port of Spain



- transformation



brings improvements


F OR OVER 60 YEARS the Port
of Port of Spain, operated by
the Port Authority of Trinidad and
Tobago (PATT), has been the gate-
way to the nation's capital.
A natural harbour on the sheltered
north-west coast of Trinidad, only a few
miles from Venezuela, the Port of Port
of Spain is ideally positioned to serve
the major sea lanes between the Amer-
icas, the countries of the Caribbean and
trading links between the Atlantic and
Pacific via the Panama Canal.
Threshold
Today, the port is on the threshold of a
new era, with the functions of the port
authority being assigned to three stra-
tegic business units (SBUs) in pursuit of
greater efficiency, focus and account-
ability:
Port of Port of Spain (PPOS) Cargo
terminal operator/manager
Port of Spain Infrastructure
Company (Posinco) Landlord and
real estate owner and manager and
provider of cruise shipping and towage
services in Port of Spain
Trinidad and Tobago Inter-island
Transportation (TTIT) Inter-island fast
ferry and ro-ro service operator.
The PATT Governing Unit (PGU) >


Developing the human resources


It is widely recognized that, to become
world-class, the Port of Port of Spain
must develop its human resources.

In order to achieve this, a counterpart
programme to the main develop-
ment initiatives (see main article) is
being implemented. The consult-
ant's functional experts in general
management, marketing, operations
and finance have been assigned
local counterparts. These Trinidad
nationals are being coached to carry
out functions in totality at the end of
the management contract. The local
counterparts also contribute sig-
nificantly in providing industry and
institutional knowledge to achieved
the desired results and are equally


accountable for delivery of services.

Since this transformation began in
February 2006, a high priority has
been given to training, with a specific
focus on health and safety, improving
productivity and customer service.

All equipment operators are being
certified by internationally recog-
nised trainers. They go on regular
refresher courses to ensure the high-
est standards.

Health and safety is a vital part of the
port's new thrust for development
and is an integral part of the perform-
ance incentive system that has been
introduced.


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 25






A' TRINIDAD &TOBAGO


was set up to manage the transition
into the three SBUs and to ensure that
corporate governance is maintained.
In March 2006 the international
firm of consultants Portia Manage-
ment Services, based in the UK, was
contracted for three years to manage
operations at the port. Its mandate was
to spearhead the transition of Port of
Spain into a world-class cargo port with
premier ranking in the Region.
PPOS's strategic plan, now being
implemented, focuses on implementing
the 'hardware', 'software' and 'knowl-
edge transfer mechanisms' to ensure
that global standards are met and
maintained. The plan is supported by an
aggressive marketing drive to build trust
and confidence in the PPOS brand.

Boost for vessel productivity
PPOS has been showing an encourag-
ing level of performance in 2007, with
throughput expected to reach over


360,000 teu, vessel productivity to
grow by over a third and truck turn-
round time to be reduced by about 50
per cent. The port has acquired five
new rubber tyred gantry cranes and
12 new tractor trailers and will take
delivery of its fourth rail mounted ship-
to-shore gantry crane in March 2008. A
dedicated ro-ro vehicle storage facility
has also been developed.
The outlook for 2008 is even more
promising, with throughput expected to
top 400,000 teu. Additional capacity will
be made available by relocating a con-
tainer freight station from the port area
to an off-site location, where it will be
run by a private company. This will give
the port a 50,000 teu boost in capacity.
The management also anticipates that
vessel productivity will increase by over
50 per cent. The main catalyst for this is
the timely introduction of a performance
incentive programme that has already
been agreed by the labour union. m


You can trust Sea Freight \en, ies to h.indie
all of your shippi ng needs, whether you are
mI1'16 ing, or -.\pi ,llng

SSea Freight Agencies
(B'dos) Ltd.
j.Wjit ~Firsti Floor, Atlantis Building,
Shallow Drauighl, Bridgelown.
mIl T& (246) :4 21 ,.AN or 42'9-9689
Fax: (246) 429-5107
E-m ail: Ii.tl.igriiill'il- js" .ilrt .>in
Website: www.sealit.com

r ,1 I -,, O'*The Gees Liwc


Mcmhn[r tl1
* I'-iI.in..: Associaltion of BIarbados liair-ados Chamner ofCommnierce
Barbados Matinufilactuieis Associalioln


26 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


Throughput is expected to
reach 400,000 teu by 2008


























































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C SON LTD.


ERIC HASSELL & SON LTD. IS COMMITTED TO PROVIDING ITS CLIENTS
WITH EFFICIENT AND RELIABLE SERVICE BACKED BY OVER A CENTURY
OF EXPERIENCE IN THE SHIPPING BUSINESS.
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and current, represent various hulk carriers, container tines and worldwide F.VOCC operators.
It is our guiding philosophy to provide the most bonest. efficientt aod bassle-free sen icte available.

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Founded on Hard Work
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'Global shipping connections"
JAMES FDRT BUILDING
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E-MAIL: SBHPPIN@RIROBULK.CIOM
AGENTS FOR:
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28 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007






INSURANCE E


New maritime insurance


products can help avoid


costly claims


The maritime industry
is in constant flux and
growth, providing a contin-
uing opportunity for busi-
nesses in this field. With
this growth comes increas-
ing exposure to liability
and lawsuit from accidental
and negligent acts on the
part of the operator. Below
are examples of innovative
products designed to sup-
port the operator.

Tour Operator's
Liability:
Until fairly recently one of the
biggest problems facing the
cruise industry was liability
for the tours it sold onboard
the ships. The private tour
operators contracting with
the cruise lines could not find
insurance to meet two of
the most important require-
ments: United States juris-
diction and inclusion of the
cruise lines as an Additionally
Insured. Working with the
Florida Caribbean Cruise
Association (FCCA), a product
was developed in 2001
through a well known and
respected insurer, ACE USA,
rated A+ Superior, for tour
operators throughout the
Caribbean. It has now grown
to include tour operators
worldwide.
The coverage is basically
in three parts: General or
Third Party Liability; Contin-
gent Automobile Liability;
and Watercraft Liability.
Invariably, if someone is


injured on a waterborne
sightseeing tour, for exam-
ple, the injured party will not
sue in the foreign country
where the accident occurred.
The party generally sues the
cruise line from whom they
purchased the tour (and the
tour operator) in the coun-
try where the ship is based
- predominantly the United
States. The problem arose
in that the tour operator's
locally purchased insurance
would generally not respond
to suits outside of its home
country and rarely would
provide more than nominal
limits, thus subjecting the
cruise line to suit because of
its 'deep pockets'.
This policy protects both
the tour operator and the
cruise lines for such suits.
The programme is expected
to make this available to US
tour operators as well in the
near future.
Further cruise line-ori-
ented efforts are progressing
to include Ship Agent's Liabil-
ity, Concessionaire's Liability
and many other products
tailored to the needs of
members of the Caribbean
Shipping Association and the
FCCA.

Ship Agent's
Liability:
Currently the only coverage
available to ship agents is
Errors & Omissions (E&O). A
far more inclusive policy will
be introduced in the near


future. In addition to the
standard E&O it will pro-
vide coverage for General
Liability with bodily injury &
property damage, Contin-
gent Automobile Liability,
Employer's Responsibil-
ity, Executive Assistance,
Employer's Liability, Mari-
time Employer's Liability and
Employee Dishonesty. The
additional coverage is very
necessary to ship agents
because collectively they
provide comprehensive and


broad arrays of services to
and on behalf of their client.
For example, errors made
in booking a medical evacu-
ation of an injured party for
its client cruise line whereby
the transporter is involved
in an accident may not be
a covered incident under a
typical E&O policy the ship
agent may have. This will be
a truly comprehensive policy
for the ship agent and priced
competitively compared
with the simple E&O policy
currently available.

Concessionaire
Liability:
A concessionaire is a ship-
board employee employed
by the concessionaire, not the
cruise line, but still considered
a part of the crew, such as the
photographer, the spa staff,
the art auction staff, the shop


By Bill Roversi

staff, etal. These personnel
need General Liability insur-
ance, coverage for contents
and/or equipment onboard
and Jones Act coverage for
their crew. The GL policy
covers bodily injury and
property damage that might
be caused by the assured, loss
or damage to the assured's
inventory or equipment and
bodily injury liability to the
employees of the assured. For
example, the photography
staff inadvertently operates


improperly grounded flood
lights and a staff photog-
rapher staff is accidentally
shocked by the device, caus-
ing a heart attack and death
to the crewman. Improper
coverage could result in cata-
strophic financial harm to the
concessionaire.
Based on feedback and
acceptance of these pro-
grammes by the maritime
community, there is a clear
need for additional products
and in future this should
result in new and innovative
ways to meet that need. m

William P. Roversi has
over 35 years' experience
in marine insurance.
Most of his clients are in
the cruise industry or are
associated businesses.
He is also a licensed US
Coast Guard captain.


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 29


There is a clear need for
additional products













ff i


91i


^. ~7~


f






EUROPEAN DESTINATIONS I


There is also evidence that demand
and rates are stronger in Europe than
the Caribbean. But it does not follow
that those cruising in the Mediterra-
nean or northern Europe would oth-
erwise take a Caribbean cruise instead
at the same time of the year. Never-
theless, when long-time Caribbean-
focused operators such as Carnival and
Disney start to move to Europe then
the Caribbean as a destination should
sit up and take notice.
In fact, Disney claims that Europe
was the number one destination in a
recent poll of its existing clients. And
Carnival, which entered the market in
2006, says Europe is proving especially
popular with North American families.

Long-term competition
So let's take Europe and see what the
Caribbean is facing in terms of com-
petition. In northern Europe there is a
relatively short season one that coin-
cides conveniently with the Caribbean's
low-summer (hurricane) period. Can
a destination that, perhaps, is effec-
tive only from June to August really
give Caribbean tourist organizations
any sleepless nights? Somehow I don't
think so.
Yet northern Europe has various
sub-markets to which passengers can
return year after year without tiring: the
North Atlantic (Iceland, Greenland and
the Faroe Islands), the Norwegian fjords,
the Baltic Sea and the British Isles/Near
Continent. Each is a marvellously varied
destination in its own right and it would
be a disingenuous marketer who would
try to argue that the Caribbean can
match this for sheer variety.
The Mediterranean provides a
different picture. The climate is more
favourable and it mirrors the Caribbean
in terms of peak seasons. There is little
overlap here. However, there are signs
on the horizon that the Mediterranean
can impact on a more mature Carib-
bean market.
It is also interesting to note an
emerging but still limited trend in
year-round Med cruising, provided by
operators such as P&O Cruises, Costa


~- pp


and, most notably, MSC, which kept
its flagship 'MSC Musica' at home last
winter. MSC now prefers to base some
ships in Italy, for example, rather than
move to the Caribbean.


eastern Mediterranean's rainy season,
with a fair chance of high winds and
rough seas, so the Caribbean may have
little to fear when it comes to compet-
ing for weather.


Northern Europe has various sub-markets to which
passengers can return year after year without tiring


Winter rates in the Med may be
lower, but there are no rock-bottom
rate repositioning voyages. Mediter-
ranean cruise ports are largely deserted
in the off-season months, in direct con-
trast to their Caribbean counterparts.
What's more, many older passengers
might prefer to see the sights without
enduring the crowds and blazing heat
of summer.

The weather
Destinations such as Libya, Egypt and
the eastern Mediterranean are the
new winter favourites for P&O, Costa
and MSC. In these areas the weather
is still comparatively warm, with highs
perhaps in the mid-teens Centigrade
and with an average of maybe six hours
of sunshine per day. But this is also the


Maybe the original question is
wrong. It could be destinations other
than Europe, such as the Arabian Gulf,
the Indian Ocean and South America,
that are the real long-term threat to the
Caribbean as passengers seeks fresh
attractions.
Good year-round weather, undis-
covered destinations and highly exotic
itineraries could prove a tempting
combination when compared with the
tourist-crowded islands of the Carib-
bean which, as has been said, have
little to distinguish one from another.
For the time-being, at least, it seems
that if you want to take a cruise between
November and April then there are few
serious rivals to the Caribbean as a desti-
nation. As for the rest of the year well,
that's a different story. m


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 31

















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HAZMATS Et


What every port


should know about


hazardous materials

By Harry Lux


Port operations play
a significant role in
ensuring that shipments
of hazardous material
(hazmat), inbound and
outbound, meet the regu-
lations. Not only are they
responsible for facilitating
global commerce without
barriers, but they must
now ensure the security of
the cargo and the port.
The International Ship and
Port Facility Security (ISPS)
Code applies to companies,
ships and port facilities
engaged in the transport of
hazardous materials and the
International Maritime Dan-
gerous Goods (IMDG) Code
prescribes the international
regulations that control how
a shipment must be pre-
pared for ocean transport.
Countries that are
signatories to the United
Nations are agreeing to
these international rules and
regulations.
So how can ports meet
compliance?

1. Meet the ISPS require-
ments. This means doing a
port assessment to deter-
mine your risks, developing
methods to address and
reduce these risks and devel-
oping a written plan that
addresses actions to follow
in case of a security breach.


If you are not controlling
who can gain access to youl
facilities warehouse, tei mi-
nal, ships then you are not
securing hazmat shipments.

2. Ensure that hazmat
shipments comply with the
regulations. This can be dif-
ferent for each port depend-
ing on the role you play. If
your port operations have
responsibility for warehous-
ing, loading and unloading
of containers, stevedoring
and interchanging, then
your employees become
the primary gatekeepers to
ensure that shipments are
correct.

This would include but
is not limited to ensuring
that:

- Hazmat declarations are
received for each hazmat
shipment

- Hazmat segregation rules
are followed when loading
containers and when stow-
ing containers on vessels

- Hazmat containers are prop-
erly placarded (port loaded
and/or shipper loaded)

- A container packing cer-
tificate is completed for each
container loaded with hazmat


- Employees aie tia3ned in
hazmat general awvaleness,
Job function specific, safety
and security.

If your port contracts out
these services to private
companies, then it becomes
their responsibility to follow
these rules. However, to
ensure port security, you
should develop a system to
audit their compliance with
the regulations.

How can non-
conformance
affect your port?
Because many hazardous
materials have the poten-
tial for use as weapons of
mass destruction, ensuring
their safe transportation
has become a priority for
regulatory agencies. Many
island ports may not have
the agencies to enforce
these rules. This makes it
the port's responsibility to
enforce them if it intends to
introduce hazmat shipments
into international commerce
from its locations.
In countries with strong
enforcement groups, such
as the United States, Canada
and in Europe, agencies
regularly inspect hazmat
shipments based off the
paperwork. These agencies
will open containers to verify


CARIBBEAN MARITIME


that what is listed as hazmat
is indeed what is in the
contained, that the calgo is
compatible, that all hazard-
ous materials are adequately
blocked and braced to
prevent movement and that
the package labels match the
placards on the outside.
Shipments that are not
correct will be detained until
corrected, which could delay
shipments for days, weeks or
months. In addition, fines can
be imposed for non-compli-
ance. If a receiving country
continues to find discrepan-
cies with inbound hazmat
shipments, it can ban the
repeat violator the ship-
per and/or the port from
sending further hazmat ship-
ments into that country.
As levels of containerised
shipping grow higher each
year, ports must be ready to
meet this demand. They are
ensuring not only that they
have adequate facilities to
handle the volume of cargo
but also that they can safely
handle, store and process
hazmat shipments. Ports
that fail to make the neces-
sary adjustments to comply
with hazmat transportation
rules may find themselves
limiting their growth poten-
tial in the long term.
Comply today for a safer
tomorrow. m

OCTOBER DECEMBER 2007 33























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DI1MENI

DAMFN SHIPYARDS GORINCHEM

Industrieterrein Avelingen West 20 P.O. Box 1
4202 MS Go~inrhem 4203 AA Gorinnedie
The Netherlands


phone *31 (0)183 63 92 67
fax -31 (0)183637762


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I---L






THE HUMAN FACTOR I




Cleaning up the


environment -


What have we done?


By Commander Peter Fitt


During July we had
worldwide concerts
inviting us to focus on
global warming and pre-
serving the environment
and the former Vice Presi-
dent of the United States,
Al Gore, received an Oscar
for his movie, 'The Unwel-
come Truth'.
Over this period we were
invited to consider whether
we would be able to tell our
grandchildren what we did
or whether we should hang
our heads in shame.
So who are we?
We are the ship owners,
agents, forwarders, ste-
vedores and terminal
operators who pass freight
through the transport chain.
We use the oceans, covering
70 per cent of the earth's
surface, to move 90 per cent
of world trade.


Let us focus on the past
30 years (1977-2007) and see
what we have accomplished
and whether, in fact, we can be
proud of our achievements.
Before considering our
achievements, let's remind
ourselves that we are the
primary users of 70 per cent


of the earth's surface. We
get free use of the 'ocean
highway' to carry the fuel,
ores, food and finished goods
required by the world market.
In 1977 I1 had nine years of
sea time behind me. I must
admit, with guilt, that we
were major polluters. We
used the ocean as a big rub-
bish bin. This was witnessed
by hordes of seagulls that
awaited their next meal
circling the wake of the ship.
Statistics proved that the
world's fleet was dumping
12 million cans and plastic
containers per year.

Smoke stacks
We burned 50 tons of oil per
day to make steam for our
inefficient steam turbines,
whose lack of efficiency was
reflected in the smoke from
the stack and the soot on


the deck in the morning.
We had little thought
of the impact of oil being
pumped into the sea and
took hardly any precautions
against oil spills when refu-
elling. Oil spills in harbours
were a minor clean-up to us.
The big ocean liners, like


the cargo ships, disposed
of raw sewage straight into
harbours and the world's
oceans.
We built tankers of hor-
rendous size to carry oil from
the Persian Gulf to the United
States and Europe to fuel
growing economies, forget-
ting that only a one inch thick
steel plate separated 400,000
tons of crude oil from the
ocean. The 'Torrey Canyon
and 'Exxon Valdez' disasters
were a major wake-up call.
Since the end of the
Second World War, the Inter-
national Maritime Organiza-
tion (IMO) has guided the
world's maritime nations.
This United Nations organi-
sation is responsible for
enacting legislation on mari-
time matters. Its motto is
'Safer Shipping and Cleaner
Oceans'.
In 1983 representatives of
180 nations met and signed
the Convention combating
marine pollution (Marpol).
Since then we have enacted
six Annexes to that Conven-
tion, all of which have to
be written into the laws of
participating nations.
Annexe 1, published on
October 2, 1983, drew up
new construction standards
for tankers and prohibited
the disposal of oil slops at
sea. Shipping was made


safer by separation and
routeing of traffic. After
the 'Exxon Valdez' disaster,
double-hulled tanks became
mandatory for tankers enter-
ing United States territorial
waters.

Legislation
Over the period 1987 to
1992 legislation was enacted
to improve the carrying of
noxious substances by sea. In
1994 we saw the implementa-
tion of Annexe 4 prohibiting
the dumping of raw sewage
and requiring on-board
sewage treatment plants.
Then came Annexe 5,
prohibiting the dumping of
garbage at sea. This was the
first legislation affecting the
whole maritime transport
chain and it required the
participation and co-opera-
tion of all individuals. We
had to change the attitudes
and behaviour of all users of
ships (passengers and crew)
as well as stevedores, agents
and others. It required a
team effort. The dumping
of one plastic container
became a serious offence.
Compliance with Marpol
5 took many years and
required ships to be refitted
with garbage disposal sys-
tems, incinerators and com-
pactors. Ships also entered
the recycling business. >


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 35


The big ocean liners, like the cargo
ships, disposed of raw sewage straight
into harbours and the world's oceans


























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Cleaning up...

Ports were getting
involved in preventing the
spread of oil spills and provid-
ing clean-up equipment. They
were also required to remove
refuse from visiting ships.
Next, the industry tackled
air pollution. Marpol Annexe
6 deals with improving the
quality of gases from ships'
exhaust systems. It must be
noted that, over the 30 years
under review, the efficiency
of marine engineers has led
to a dramatic reduction in
overall consumption from 55
to 15 tons of fuel per day.
Annexe 6, enacted in
2005, seeks to:

* Further increase the
efficiency of marine diesel
engineers

* Improve the quality of
marine fuel

* Fit exhaust cleaning
devices.

My marine engineering
colleagues would be happy
to expound on SOx emis-
sions and how each diesel
engine has to have a certifi-
cate of efficiency.
So here we are in 2007.
Have we done enough to
protect the environment?
Can we hold our heads up
high and be proud of our
achievements? I believe we
can. There is still more to
be done. n

Commander Peter J. Fitt
is a ship master and
industrial engineer who
spent his career in the
ports industry in south-
ern Africa and Canada


Eg 4- ^ Ea-* -. N-a --* .- : a

** #


5-
:Um'
-J*i "iiki
^^*M^Cl~lU S


Surname's busiest port,
Paramaribo, is under-
going a major upgrading
with financial help from
the European Union.
Woik began in 2006 and
is due to be completed in
2008 and the project is "well
on tiack according to poi t
authority manager John
Defai es
Thiee local companies
- Continental Shipping Agen-
cies, Integra Marine & Fieight
Sei vices and VSH Shipping
- ale bidding to operate the
new port facilities.
Mi Defaies said that, aftei
reviewing the proposals, the
poi t authority would sign a
lease contact with the suc-
cessful bidder The autho ity
will continue to be iespon-
sible for poit security but
generally will function only
as a landlord
The Poit of Paiamaiibo
lies on the Suriname River,
the county's main i ivei.
The so-called New Poi t is
Suiinames main facility foi
gene al cargo and contain-
eis. It was built 40 years ago
and has not changed signifi-
cantly ovei its history, while
maintenance has been poor.
With volumes of impoi ts
and exports continuing to
grow over the years, the port
has become less and less
able to handle the number
of containers it receives.


"The layout of the port
is no longer conducive to
model n cargo handling
operations and the facility
has badly deteriorated, '
said a spokesman foi the
Dutch engineering company
Lievense BV, a consultant for
the rehabilitation project
Under its ninth Euiopean
Development Fund, the
European Commission has
allocated Euios 29.8 mil-
lion foi the reconstruction.
This is not the first time that
Paiamaribo has benefited
from EC assistance. The
Commission also sponsored
improvement projects at the
poi t in the 1960s.

New deck
Rehabilitation vvoik includes
repair of piles and construc-
tion of a new deck, new
fiont beam, new bollaids
and new fendei systems as
well as new utility infrastruc-
tuie including electiicity,
lighting, fire-fighting, sewel-
age and ieefei systems
Theie will also be new
paving ovei a total area of
some 50,000 square meties.
Rehabilitation of the New
Port is part of an integral
ovei haul and iestructui -
ing of Surinames tianspoi t
sector. Its second-largest
poi t, the Nickel ie Port, near
the bolder with Guyana, is
currently being improved,


I \RilliH \N NI \RIIIMI


also with help from the EU.
A feny tei minal was estab-
lished at the boidei with
Guyana and a load improve-
ment project has been
financed.
The Poit of Paiamaiibo
plays a key iole in the tians-
poi t of goods throughout
Sul name and to the neigh-
bouring county ies of Fiench
Guiana and Guyana. Of the
ports in the thiee Gulanas
- Sunname, Fiench Guiana
and Guyana only the New
Poi t can receive and handle
large oceangoing ves-
sels. Suliname s main poit
theiefoie has an important
regional function as well.
According to the Minister
of Trade and Industiy, Clif-
fold Mailca, within the Call-
com, Suniname is positioning
itself to become a gateway
linking South Amei nca and
theCaiibbean m

At press time iwe i ere
informed that the time for
the rehabilitation of the
Port of Paramaribo has
been extended to April
00)9, whilee a dredging
piroViiraime to deepen the
channel of the Suriname
River i'as expected to
start in December 200,.
The study to deepen the
channel \\-as executed by
bauxite mininl companies
Suiralo and BHP-Billiton


. 'i 1W i r 1i i '.1,i.1 . 37






W1' OBITUARY


CSA pays


tribute to


its founding


president,


Peter Evelyn


A delegation of Carib-
bean Shipping Asso-
ciation (CSA) members led
by Vice President Carlos
Urriola attended a memo-
rial service for CSA found-
ing president Peter Evelyn
on Saturday June 2.
Mr Evelyn died peacefully
at home in Florida on May 11
surrounded by his family.
CSA President Fernando
Rivera was unable to attend


because of other sched-
uled commitments.
The CSA Vice Presiden
read the CSA's tribute
at the memorial service
at Marco Presbyterian
Church, Marcos Island,
Florida, where Peter
Evelyn had worshipped.
A copy of the tribute
and the flag of the CSA
was presented to his
family. m


CSA tribute to

Peter Evelyn
The Caribbean Shipping Association owes its 1.,.I
existence to the work and leadership of Peter / ll.
He was Jamaica's gift to the Caribbean. And lhe
Region has benefited immensely from his int1l, lot ie,
skills and talents.
Peter Evelyn led the steering committee whIL i
developed the plans for the Caribbean Shippii.
Association. And, on October 19, 1971 shippii e\
tives from Antigua, Barbados, Bermuda, DonuL,.
Grenada, Jamaica, Montserrat, St Kitts-Nevis, % I /UL I,.
St Vincent, The Bahamas and Trinidad & Tobaa. ,, ne
in Nassau, Bahamas, making the CSA a reality: I, -',
here that the representatives from these 12 coniu ie
honoured Peter Evelyn for his pioneering work I,
electing him our founding president.
Today, in 2007, with membership in over 24 .. ,'nl
tries, the association is recognized as the voice ., I he
Caribbean shipping industry. Heads of state andi /a
of government have spoken at the CSA podium anl
the association has assisted the many peoples h I ie
Caribbean to develop their shipping industries. I I I % I%
the legacy of Peter Evelyn.
The CSA is happy to have been able tlo pay ou
respects to Peter in person at our 36th annual geser l
meeting in Panama City where, on October 17, .
he graciously received the instrument of honorary.
membership of the CSA. Honorary membership ,I Ile
highest award that the CSA can bestow on any iu,.i
vidual and only five persons have received this h, ,, ,i.
And yet, at the time we presented it to Peter, it seeie,
so insignificant a token for recording the sincerity and
depth of our gratitude for his work and contribute, ii.
We note, with apologies to Henry Longfellow, thL i:
Our dear Peter has now sailed and left us,
Having lived a life sublime,
But behind he has left to guide us,
Footprints on the sands of time.


t


On behalf of the CSA, its members past, present ,an
those to come, we acknowledge the contribution of P'eer
Evelyn. And to his f ainli, and loved ones we extend oiur
gratitude and appreciation for sharing his life with u
Fernando Rivera,
President


38 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


































Dominican Republic sees
upswing in cruise sector

G government plan- 2007, about 256,000 tourists
ners in the Dominican had visited the republic
Republic are forecasting an in 139 ships. In the corre-
income of some US$ 60 mil- spending period of 2005-
lion from over 500,000 pas- 2006 some 300,000 pas-
sengers and 300 ship calls sengers arrived in 260 ships.
in the 2007-2008 season. Cruise ships are handled at
Magalys Toribio, Vice Min- two ports in the republic,
ister of Tourism, said that, Santo Domingo (Don Diego)
from October 2006 to April and La Romana.


St Maarten adds $1 to cruise 'head tax'
St Maarten Island Council summer, will be in two incre- also approved a new secu-
has approved a $1 rise in ments of 50 cents, the first at rity fee of $1 per passenger
its cruise passenger 'head tax' the end of this year and the to cover the cost of security
to $6. The rise, approved this second in 2008. The council programmes at the port.


is












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The Jamaican terminal
operator Kingston
Wharves Limited (KWL)
has underlined its com-
mitment to port security
by conducting a major
training exercise at its Port
Bustamante facility.
The International Ship &
Port Facility Secuiity IlSPSi
Code lecluires more than the
implementation of a set of


systems and pioceduies. Foi
security to be dependable,
people need to be trained
and systems and procedures
must be effective and ready.
In compliance with the
ISPS Code, KWL success-
fully cai ied out an exercise
on Thursday, June 28. The
exercise tested communica-
tion, co-oldination, response
and resources and involved


a leal-time evacuation of all
pe sons on thie terminal.
The two-pai t exercise
included a table-top exer-
cise in which the KWL Poi t
Secul ity Committee simu-
lated the actions that would
be taken in the event of a
bomb threat at Berth 8 as
well as the live evacuation of
facility users to designated
assembly areas.


Facility users responded
to theemeigency silen and
weieevacuated to the assem-
bly aieas under the direction
of the safety monitor s.
The exercise was obsei ved
and evaluated by repiesenta-
tives of key national security
and emergency response
agencies along with guests
fiom the maritime sector and
related industi ies. m


S\%RIIBII \N I \RIIIMII Ij. l 'IWPl l il '.l.l l.' 1i 'i-






B' CUSTOMS MODERNISATION




Customs modernisation


and the Caricom single


market and economy


By Kawanhar Doopan


In a presentation to the Caribbean Shipping Association


It was in 1989 at Grand
Anse in Grenada that
the heads of government
of Caricom declared their
intention to deepen the
integration process and
strengthen the Caribbean
community by working
towards the setting up
of a single market and
economy.
Technical work on the
concept of the Caricom
Single Market and Economy
(CSME) was completed in
1992 and presented to the
heads of government for
endorsement.
The CSME was conceived
as a way of fostering the
economic development of
Caricom member states in a
liberal and global environ-
ment by creating a single
enlarged economic space for
free movement of goods and
services, skilled labour, capi-
tal and technology among
the community.
It became clear that the
1973 Treaty of Chaguara-
mas could not be a basis
for the CSME and that the
treaty should be revised.
This revision, completed in
March 2000, resulted in nine
protocols which have been
consolidated into the revised
treaty.
Among the key elements
identified in the setting up of


the CSME are:
Free movement of goods
and services by measures
such as eliminating barriers
to intra regional movement.
Forming a common
external tariff and the appli-
cation of a common rate of
duty by all members of the
community to a product
imported from a country
outside the community.
The Customs service is a
key player in the movement
of goods across borders and
the procedures applied to
these goods have a signifi-
cant impact and influence
on regional or international
trade. Customs throughout
the Region have assumed a
growing responsibility for
implementing government
policy with specific reference
to trade facilitation and the
rationalisation and simplifica-
tion of Customs procedures.
The setting up of the CSME
by its incremental develop-
ment brings with it many
challenges, many changes,
many threats and yet many
opportunities. Customs
departments are at a point
where demands are being
made for improved efficiency
in order to meet growing
competition in the global
environment and 'just in time'
manufacturing. Discussions
have centred on reform and


modernisation, succession
planning, delinking from the
public service and greater
emphasis on information
technology. In spite of all
these activities, however, the
'dilemma of development'
continues to haunt us and to
tear at the very fabric of our
organizations.
The dilemma that we must
confront head-on is how to
make our boundaries more
easily accessible to legitimate
trade while making it impass-
able to illegal and criminal
activities.


international trade
How, in fact, do we eradi-
cate the bureaucracy and the
hassle to allow the legitimate
trade in goods, services and
tourism while shutting out
the illegal trade in arms,
ammunition, dangerous
drugs, psychotropic sub-
stances, other illegal commer-
cial activities and terrorism?
Reform and modernisa-
tion of Customs among
member states with the focus
on facilitation of legitimate
trade have become impera-


tive not only for the success
of the CSME but also for the
individual member states.
We recognize that trade
facilitation is an engine for
economic growth and, to this
end, several member states
have already implemented a
number of measures to sim-
plify and harmonise docu-
mentation and procedures.
This has led to a reduction
in processing time for both
goods and people.
Examples:
Introduction of a Single
Administrative Document to


process import and export
transactions
Development of the
Common External Tariff
based on the Harmonised
System of Classification
Application of Rules of
Origin by Caricom member
states
Implementation of auto-
mated systems in the Region
(Asycuda etc)
Application of the GATT
Valuation Code.
While reform and mod-


46 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


The Customs service is a key player
in the movement of goods across
borders and the procedures applied
to these goods have a significant
impact and influence on regional or






A MATTER OF LAW W


ernisation are taking place
among several member
states, a lot remains to be
done. The framework for
trade facilitation has to be
formalised throughout the
Region. Customs procedures
need to be improved to
make them simpler and more
systematic without losing
any enforcement respon-
sibilities by addressing the
following:
Harmonisation of Cus-
toms laws in member states
Implementation of IT to
manage import and export
transactions to permit
electronic submission and
processing of documents
Harmonisation of docu-
ments and data requirements
Amendment of Cus-
toms laws to provide for the
submission of documents for
processing before importing
Amendment of Customs
laws to allow fast clearance
of low value shipments of
goods
Adoption of automated
risk assessment techniques
to facilitate the pre-arrival
processing of documents
and to speed the examina-
tion of passengers and cargo
brought in by importers who
have a long history of compli-
ance with the Customs laws
Establishment of a
closer collaboration with
the immigration authorities
with respect to passenger
management
Implementation of post-
clearance audits and greater
reliance on the examination
of traders' books of accounts
and cargo documentation
Introduction of a more
flexible means of duty pay-
ment
Application of a more
uniform and transparent


interpretation of the Customs
laws and procedures
Increasing the level of
professionalism of the staff
of the various administra-
tions by instituting proper
training not only in the area
of Customs procedures but
more specifically in the area
of customer satisfaction
Setting up regular meet-
ings with staff and the busi-
ness community
Ensuring compliance
by the business community
with the Customs laws and
procedures and penalising
transgressors.
A great deal of progress
has to be made within the
Customs administrations of
member states in order for
the CSME to be meaningful
and successful in the area of
regional and international
trading. However, this is not
only a challenge for the Cus-
toms administrations, but it
also for every member of the
business community.
For too long, Customs
administrations have taken
the blame for delays in the
processing and delivery
of cargo when this can be
traced to the delinquency of
the importers and/or their
agents. Let us not seek to
castigate anyone, but let us
form an unbroken partner-
ship between Customs and
business, working hand in
hand towards the develop-
ment of the CSME. m

Kawanhar Doopan is
a retired Comptroller
of Customs & Excise in
the Customs & Excise
Division of Trinidad &
Tobago, a position he
held from April 1997
until his retirement in
November 2002.


Are we really


prepared to


deal with a


major oil spill


in Caribbean


waters?


By Milton J. Samuda and
Stacey-Ann Soltau-Robinson*


The recent experience of
the coal carrier 'Pasha
Bulker' running aground
off the east coast of Aus-
tralia and the oil spill that
occurred during attempts
to refloat the vessel have
once again brought into
sharp focus the issue of
whether Caribbean ter-
ritories are sufficiently
prepared to deal with oil
spills in regional waters.
This issue is particularly
important because several
Caribbean jurisdictions
depend on tourism and
therefore their beautiful
beaches as well as on
the fishing industry as vital
sources of employment and
national income.
The fear of oil spills
in regional waters is a
legitimate one because our


waters provide a through-
way for many ships laden
with oil. Over a trillion gal-
lons of oil are transported
through Caribbean waters
each year according to a
senior consultant to the
International Maritime
Institute and to the Regional
Marine Pollution Emergency,
Information and Training
Centre Wider Caribbean.

Collisions
Unfortunately, the Region
has had some experience
in this regard. One need
only remember the col-
lision involving the very
large crude carriers 'Atlan-
tic Express' and 'Aegean
Captain' in 1979 that led
not only to the loss of many
lives but also to the explo-
sion and sinking of the >


CARIBBEAN MARITIME I OCTOBER DECEMBER 2007 47

























'Atlantic Express' 10 miles
off the coast of Tobago and
the spilling of a reported
240,000 tonnes of crude oil.
More recently, in 1991,
the Trinidadian barge 'Vesta
Belle', en route to Antigua
with over 500,000 gallons of
bunker fuel, sank 12 miles
north-east of Nevis, result-
ing in an oil spill, at points
35 miles long, that damaged
beaches in both St Kitts and
Nevis.
Caribbean countries such
as Jamaica and St Kitts and
Nevis have assumed the
responsibilities set out in
the Protocol Concerning
Co-operation in Combating
Oil Spills under the Conven-
tion for the Protection and
Development of the Marine
Environment of the Wider
Caribbean Region. This
includes, under Article 3 of
the Protocol, an obligation
to co-operate by taking all


necessary remedial meas-
ures to protect the marine
and coastal environment
from oil spill incidents.
The Protocol also sets out
specific obligations on the
part of each party, including:

* Appropriate procedures for
rapid reporting of oil spills

* Assisting each other as far
as possible in responding to
an oil spill incident

* To take steps, as far as pos-
sible, to respond to an oil
spill: Articles 5, 6 and 7.

Implementation
From an implementation
perspective, there is the
Regional Marine Pollution
Emergency, Information
and Training Centre Wider
Caribbean, which is respon-
sible for implementing the
Protocol. From a regional


perspective, most countries
are parties to the Carib-
bean Islands ORPC Plan,
which allows for a regional
approach and mutual assist-
ance in the event of a major
oil spill beyond the capacity
of an affected state.
From a domestic point of
view, several Caribbean ter-
ritories such as Jamaica and
St Lucia have drawn up plans
to manage oil spills within
their territorial waters. In
Jamaica, for example, this is
led by the Office of Disaster
Preparedness and Emer-
gency Management with
participation by entities
such as the Jamaica Defence
Force Coast Guard and the
National Environmental
Protection Agency.
The question must be
asked, however, whether the
Region is actually prepared
to respond rapidly and effec-
tively to a major oil spill in its


waters as occurred in 1979
- even with the assistance of
external parties such as the
United States?
Even with the best of
plans, and however under-
standable, the untested is
still untested. Perhaps the
solution lies in simulating
such an occurrence and
having a 'trial run' in order
to expose the areas that
require further refinement,
similar to an earthquake
preparedness drill. The
benefits to the Region and
its marine environment may
well outweigh the costs of
such a 'trial run'.


Milton Samuda and
Stacy-Ann Soltau are
attorneys-at-law practis-
ing in Jamaica


Name:

Job title:

Company name:

Address:


City:


Country:

Zip code:


Email:

Fax to: +441206 842958 or e-mail your request to: publishing@landmarine.com


48 CARIBBEAN MARITIME I OCTOBER DECEMBER 2007


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