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Title: Caribbean maritime
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Permanent Link: http://ufdc.ufl.edu/UF00099408/00006
 Material Information
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: January-April 2009
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Bibliographic ID: UF00099408
Volume ID: VID00006
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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Table of Contents
    Front Cover
        Front Cover
    Front Matter
        Front Matter
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
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        Page 21
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        Page 23
        Page 24
        Page 25
        Page 26
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        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
    Back Matter
        Back Matter
    Back Cover
        Back Cover
Full Text




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DR1MEN

DAMN SHIPYARDS GORINCHEM

Industfieterrein Avelingen West 20 P.O, Box 1
4202 MS Gorincherm 4200 AA Gorinchem
The Nltheorlnds


phone -31 (0)183 63 92 67
fw +31 (0)183 63 77 62


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wwwdacen.nl






CARIBBEAN

MARITIME

No. 6 I JANUARY- APRIL 2009

COVER STORY
13 Security
Maritime security suffering from the
'Silo Syndrome'


SPECIAL FEATURES
8 Shipping Association of Barbados
Looking ahead to 2009 with cautious optimism
8 Guadeloupe: The Year Ahead
Port community 'honoured'by CSA award
10 Puerto Rico Shipping Association
Looking forward to a good year
11 Shipping Association of Guyana
Maritime sector gives backing to national
development
16 Kingston Wharves
KWL rated tops among sub-regional ports
19 Training
Over 200 CMI graduates in 2009
19 Jamaica crewing
Jamaica moves to develop as a crewing nation
21 The Year Ahead: in the CSA
The year ahead progress for the CSA
22 Panama Canal Expansion: Update
Panama Canal expansion project within
schedule and budget
25 Financial crisis in the USA
Will the Caribbean catch pneumonia?
28 The year ahead: the Caribbean
The morning after the night before
30 The Year Ahead: Caribbean Cruise
The ships and passengers will keep coming but ...
33 Security
Return of the Pirates
34 Caribbean Port Awards
And the winner is...


CONTENTS






COVER PHOTO
'At the end of the day,
a new year arrives.'


27 -Cartagena
hosts CSA
A l1


36 Economic partnership agreement with EU
Can EPA bring real benefits for Caribbean business?
42 Candid Moments 2008


STANDARD FEATURES
2 Editorial
In 2009, plan for recovery
3 Message from the CSA President
4 CSA Camera
40 Newsbriefs
43 Hazardous Materials
The Year Ahead Spotlight on key amendment
to International Maritime Dangerous Goods Code
46 The Human Factor
The competitive difference
48 A Matter of Law
Shipping and ports are not recession-proof


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 JANUARY APRIL 2009 1


.. .tan. C. a l ..
S, O Wnon'






E? EDITORIAL


CARIBBEAN

NMARITIME
No.6 I Jan -Apr 2009

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 2008-2009
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: Francis Camacho
Group B Chairman: Grantley Stephenson
Group B Representative: David Jean-Marie
Group C Chairman: Cyril Seyjagat
Group C Representative: David Ross
General Manager: Clive Forbes
Director Information and Public Relations:
Michael S.L. 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-pr@mikejarrett.net
PUBLISHER:

MARINE
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


In 2009, plan for recovery

THE ADVICE to Caribbean companies and business interests from Sir Court-
ney Blackman (page25) on how we should deal with the current economic
crisis is timely. As the recession deepens in the USA there are clear signs
already that it is affecting and will continue to affect Caribbean shipping and
the national economies of the region. Sir Courtney advises that businesses
should try to keep their assets intact so as to be better placed to recover and
resume when the economic upturn comes. In this situation, according to the
celebrated Caribbean economist, cash flow is more important than earnings,
so businesses should simply concentrate on staying afloat.
Interestingly, as our columnist Milton Samuda discusses in this issue (page 47),
the International Monetary Fund took the same basic position in its World Eco-
nomic Outlook: we should plan for the recovery that will inevitably occur.
As 2008 drew to a close it was clear that the economic situation would get
worse before it got better. In fact, the IMF readjusted its forecast downwards for
2009. Its projection for global growth in 2009 was lowered to 3.8 per cent in Octo-
ber and by November it was lowered again to 2.2 per cent. It is, indeed, a projec-
tion; an educated guesstimate, if you like. However, only the most optimistic are
forecasting an upturn before the end of 2009.
Blaming the financial market conditions and correction in the USA's hous-
ing market, the IMF believes that emerging economies such as China and India,
although not insulated from the effects of the crisis, are likely to weather the storm
better than the USA and other advanced economies. Indeed, growth in GDP is
projected for a number of countries.
How bad will it get? Answer with a question: how long can we tread water?

Good news
The good news is that this crisis is not likely to last very long, if we are to believe
those who make a living studying these matters. Sir Courtney believes there is
enough economic intelligence gleaned from in-depth studies of the Great Depres-
sion to guide the decision-making that will stimulate a turnround. He therefore
does not think the present crisis will last for very long, although he was careful not
to put forward a timeframe.
Pessimists are not predicting a turnround in 2009 but neither are they predict-
ing a long recession.
Caribbean shipping would do well to take advice and plan for recovery. Rather
than weakening our organizations by jettisoning invaluable assets like skilled staff,
we should be retraining, retooling and upgrading our capability. To a boxer, this
advice might sound like leaning forward for the punch instead of ducking. How-
ever, if we do otherwise, we will only aggravate and complicate our situation.
On the other hand, if we are able to stay cool and weather the storm, as Sir
Courtney advises, we will be in a better position to resume growth and profitabil-
ity in the shortest possible time when the recession finally recedes. Otherwise we
may have to start all over again, if that is even possible.
We may have to tread water but, it appears, it may not be for too long.


Mike Jarrett, Editor


2 CARIBBEAN MARITIME I JANUARY APRIL 2009






MESSAGE FROM THE PRESIDENT I


President's



Message


THIS BEING the first issue for 2009,
I want to take this opportunity to
wish you all a very happy and pros-
perous new year.
The theme of this edition is The Year
Ahead. Normally, we dedicate the first
issue of the year to this theme and
to the work of the national shipping
associations. National associations are
the bedrock of the Caribbean Shipping
Association. The founding members
of the CSA were national associations.
The CSA has revived the National
Associations Committee and we have
had two workshops. The workshops
will develop a plan to improve the work
and services delivered by these associa-
tions to their local shipping community
and to help organise national shipping
associations in territories without one.
2009
As we look ahead to 2009, we do so
in a very positive way. We have a full
agenda ahead, but we know that
with the commitment not only of the
General Council but of all members, we
will accomplish the goals we have set
for 2009.
We have started preparing for our
two main events in the year ahead
- the Caribbean Shipping Executives'
Conference in Cartagena, Colombia, in
May and the CSA's 39th Annual Gen-
eral Meeting in Paramaribo, Suriname,
in October. We have already received
confirmation from key speakers and
interesting presentations are being
prepared.
As mentioned before, security and
training are my top priorities. Regard-
ing security, we will continue to finalise
all the details of the CSA Security
Assessment Council. Most of the key


players have already committed to
this project and during our General
Council meeting in January we will
develop the action plan for implemen-
tation. As regards training, a complete
programme will be discussed at our
General Council meeting and once
approved will be presented to CSA
members. This will include, among
others, the Cruise Committee training
proposal on cruise matters, seminars
and training courses prepared by our
Secretariat, and the Puerto Rico Ship-
ping Association programme, which
includes one training seminar each
month and will be available to all CSA
members.
Co-operation
We will also continue to enhance the
relationship with other organizations
in the Caribbean region. The co-opera-
tion agreement with the Inter-Ameri-


can Committee on Ports (OAS), signed
in Port of Spain in October, is already
producing results beneficial to both
parties. We had a meeting with CCAA
during their conference in December
with the same purpose and we have
started conversations with the Carib-
bean Tourism Organisation to look at
areas for co-operation. We also value
our relationship with Caricom and
anticipate a closer relationship in the
year ahead.


I do not want to finish without
thanking all our sponsors, the vari-
ous organizations with whom the CSA


works across the Caribbean area and
all those who engage in the business
of Caribbean shipping, particularly the
members of the Caribbean Shipping
Association.
Looking forward to seeing you all in
Cartagena on 18, 19 and 20 May.


Fernando L. Rivera
President, Caribbean Shipping
Association


CARIBBEAN MARITIME I JANUARY APRIL 2009 3


We know that with the commitment
not only of the General Council but of
all members, we will accomplish the
goals we have set for 2009



























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-414






Won Van Tilburg (left) and Huib Gerretsen (right), of the Dutch Caribbean Training CSA General Council mo
-entre, share ideas with Jon Sierhuis, who chairs the CSA's Cruise Committee. Ion Deosoran.


4 Nathan Dundas
(right) moderated
the session in
which John
Tercek (left), of
Royal Caribbean
Cruises, spoke on
waterfrontand
portrealestate
development.



CSA General Manager
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100 CAIBA MA00IM I JANAR 0PI 2009






SHIPPING ASSOCIATION OF GUYANA 1


Mertime sector gives backing to


wanted l ve unt


THE YEAR AHEAD will see the
Shipping Association of Guyana
(SAG) striving for closer collabora-
tion with other stakeholders in ship-
ping. The association will develop


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strategies in order to make a mean-
ingful contribution to the overall
objectives of Guyana's national
development strategy.
Also high on SAG's 2009 agenda is
action to reduce the volume of com-
plaints from exporters and importers.
The association will also continue
to emphasize training, a major item on
its budget. SAG sees this as
an investment and not
an expense. In 2009
SAG will encour-
age companies to
invest in their most
valuable asset,
their labour force.
A comprehensive t
training programme
is being looked at
and an on-line training
course in collaboration with
the Caribbean Maritime Institute (CMI)
is being considered.

Capacity data
Guyana is still in the process of reha-
bilitating its national infrastructure
and economy and SAG is committed to
participating fully in this process. This is
to ensure that shipping is, indeed, high
on the national priority list for devel-


opment. As part of Guyana's strategic
outlook, the National Competitiveness
Strategy Unit, in collaboration with the
SAG, is working to establish a database
to aid in the development of the nation's
shipping industry. This will enhance
Guyana's export capacity by identify-
ing and removing constraints currently
facing exporters and shippers.


The aim of this initiative is to obtain
reliable data about which export routes
from Guyana face capacity constraints
and which others have spare capac-
ity, as well as to get information about
exporters' plans for future export
volumes and routes and to make
recommendations for removing any
constraints that have been identified.

L urity
Safety and security are
also of immense value
to shipping. In order to
Guarantee the safety of
local and international
mariners, and in the wake
of an increasingly vulner-
able maritime environment
both locally and internation-
ally, the SAG intends to collabo-
rate more with the security forces.
This initiative is, in fact, a request by
the country's Minister of Transport at
a recent SAG business luncheon. The
association will assist by helping to pro-
vide additional river patrols. This will
complement the heightened security
systems already in place at terminals, in
conformity with the ISPS Code.
On a wider national scale, there is
every intention to continue the devel-


opment of Guyana's infrastructure. This
has already started with the construc-
tion of bridges at strategic points. Now,
the emphasis is being placed on access
roads and a fully integrated modern
highway system.
These projects, some of which are
led by SAG, shipping operatives and
maritime industry agencies, support


CARIBBEAN MARITIME I JANUARY APRIL 2009 11


There is every intention to continue the development
of Guyana's infrastructure. This has already started
with the construction of bridges at strategic points

































the government's efforts to achieve
higher standards and more efficiency
in the local maritime sector. With such
initiatives, SAG hopes to improve the
level of service being offered within the
industry, to achieve lower freight costs
and to open new avenues for business,
since it is recognized that Guyana is a
main outlet to the Atlantic Ocean for
this continent.
The association also intends to work
closely with the Caribbean Shipping
Association in its development plans
for national associations, as outlined at
the Annual General Meeting.

Highlights of 2008
Looking back, the past year could be
described as one of mild success for
the SAG. During the year, consultations
and meetings were held with indus-


try stakeholders to
develop a common
strategy to stimulate
improvement in
operating standards
within the industry
particularly in the
Demerara Harbour,
where the majority of
commercial shipping
terminals are located.
Those consultations
included discussion on:

d Capital dredging in the
Demei a ra River

n Pinacy, safety and fire protection

* Increased export capacity

* Acquisition of a container scanner

* Establishing a training regime with
theCMI

* VAT on shipping services

* Night retraction of the Demerara
Harbour Bridge

* Plans for a deepwater harbour.

Discussions with other stakeholders
during 2008 also examined ship-
ping rates, new shipping routes from
Guyana to other Caribbean countries
and increased demand for containers
due to increased sectorial exports and
inadequate air cargo space.


During the year there were also sub-
missions on the need for more collabo-
ration between the Maritime Adminis-
tration Department, the SAG and other
maritime-related agencies. As a result,
attention is being given to the issue of
dredging, with the government initiat-
ing a survey of the Demerara River
to determine the existing draught as
against what is required.

First event
A training partnership has been estab-
lished between the SAG and the CMI
and the first training event, Port Opera-
tions and Management, was conducted


in June 2008. This course was attended
by 32 participants from a wide cross-
section of the industry.
Meanwhile, after several meetings
with the Revenue Authority, a decision
was taken that VAT should be removed
from a number of shipping services on
which it was previously levied. m


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12 CARIBBEAN MARITIME I JANUARY APRIL 2009



































Suffering from the



'Silo Syndrome'

On 3 December 2008 CSA general manager Clive Forbes delivered
the CSA's position on maritime security at the Caribbean Central
American Action (CCAA) conference in Miami, Florida. He address
the CSA's concerns about security and the critical importance at thi
time for the Caribbean, the USA's third border, to be developed as c
seamless, impregnable defence system against terrorism.


THE Caribbean and
Latin American region
benefits significantly from
waterborne trade due to
its geographic proximity
to the USA. This has aided
the region in developing
strong cultural, economic,
political and social ties
with the USA. The per-
centage of imports from
the USA to the region far
outweigh the percentage


of exports from the region
that are destined to the USA.
Annually, approxi-
mately 12 million teu are
transhipped throughout
the region, originating
and destined to various
worldwide locations. The
Caribbean basin plays an
important role in sea trade
as over 1.6 million contain-
ers are moved throughout
the region per year. In 2006


approximately 47 per cent
the total number of contain
ers was moved through
the Caribbean basin with
75 per cent of this amount
being transported to North
America (part of this amou
relates to goods that are
transhipped through the
region especially between
North and South America).
This underscores another
major role that the region


MARITIME SECURITY I


































plays in international trade.
Since the terrorist attacks
in the USA on 11 September
d 2001 the world has achieved
is a heightened sense of
security awareness. The
United Nations, through
Security Council Resolution
1373 (2001), called on the
of international community to
n- redouble its efforts to pre-


nt


vent and suppress terrorist
acts, including full imple-
mentation of all anti-terrorist
Conventions.
Implementation
It is undeniable that, since
the implementation of the
International Ship and Port
Facility Security (ISPS) Code
under IMO SOLAS Conven-


CARIBBEAN MARITIME I JANUARY APRIL 2009 13


dm
lq






i' MARITIME SECURITY


tion in 2004, ports in the
Caribbean and Latin Ameri-
can region had to invest
heavily in securing perim-
eter boundaries, upgrad-
ing of lighting systems,
improving of access controls,
installing of CCTV and other
technological requirements
which increased operating
costs considerably in some
small ports in the region
by over 100 per cent. Local
businesses have also been
affected, as more funds have
to be expended to update
technology and ultimately,
train employees.

Challenging
It has proven challenging for
the region to be in contin-
ued compliance with US


maritime security legisla-
tions as these strict regula-
tions not only severely affect
the capacity of the region's
governments to imple-
ment and administer these


Latin American countries
some are paying as much as
US$0.70 out of every dollar
of GDP to service debts.
This leaves very little for
infrastructural and capital


most challenging periods
for the Caribbean and Latin
American region over the
last decade.
The development in the
region's port and logistics


In light of the global economic meltdown, fluctuations
in oil prices, on which the region is highly dependent,
the next 12 months, will prove one the most challenging
periods for the Caribbean and Latin American region


over the last de

requirements in a cost-e
tive and timely manner
but also deflect funds frc
much-needed areas of
national, social and regic
development.
With the heavy debt
burden of Caribbean an


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ffec- development as well as car-
rying on the operations of
om the government. The high
dependency ratio of some
)nal populations in the region, in
that a significant percentage
of the population is below
d the working age while a
high percentage of working
age individuals are unem-
ployed, put severe strain on
limited national resources.
This leaves very little or no
resources to invest in pro-
viding adequate scanning
machines for each and every
container destined to its major
trading partner, the USA.
It is not surprising, there-
fore, given the stated reali-
ties of the challenges the
Caribbean and Latin Ameri-
can region has encountered
in maintaining compliance
with international mari-
time security requirements
(which is not only unique to
us) that the Department of
Homeland Security is now
questioning the expecta-
tions/realities of the 100 per
cent Scanning rule for all
inbound traffic.
In light of the global
economic meltdown,
fluctuations in oil prices, on
which the region is highly
dependent, the next 12
months, will prove one the


industry has been lopsided
in that the focus has been
mainly on the ports while
the information technology
system and supporting infra-
structure, such as inadequate
and poor quality warehous-
ing facilities, along with other
weak links in the logistics
chain is often overlooked.
The security system can only
be as strong as its weak-
est link and one strong link
cannot make a strong chain.

Operating in silos
The Caribbean Shipping
Association believes that
before we begin to identify
gaps in the security chain
and solutions, it is important
that all parties within the
shipping industry need to
have a holistic view of the
industry and an appreciation
that it functions as a grid
with inter-dependencies
between the business seg-
ments/sectors (cargo, cruise
and luxury yacht) the busi-
ness drivers (shipping lines,
regulatory agencies and
governments including port
authorities) and the business
operational support (ter-
minal and port operators,
shipping agents, stevedores,
tour operators, truckers, etc).
Too often, the legislative


14 CARIBBEAN MARITIME I JANUARY APRIL 2009




fr


(local and international),
productive and administra-
tive machinery operates in
silos and does not take into
account the impact on the
various customers along
the global supply chain. In
addition, this gives the per-
ception of a failure from the
respective entities to under-
stand the need for regional
economies to integrate into
the global supply chain to
achieve sustainable devel-
opment and survival.

Legislation
When stakeholders within
the shipping industry oper-
ate in silos, this will result in
a disconnection between
Caribbean and Latin Ameri-
can economies, international
legislation and the global
supply chain (this has been
evident in the recent past).
This can be summarised as
the lack of 'integration'. The
region can be described as
a chain of microstates with a
heavy load of international
debt burden straggling
burdensome international
legislation that does not
'flow' with global logistics.
The solution to get out of
this 'security quagmire' must
begin with the appropriate
integration between the
different shipping industry
entities that share a com-
monality of purpose that
is, satisfied customers along


the global supply chain with
the lowest possible input
cost for distribution.
The CSA, along with
our partner, CCAA, firstly
believes that a minimum
security standard that gov-
erns trade should be estab-
lished for the region based
on the ISPS Code that would
not put smaller state both
in size and GDP at a severe
disadvantage in complying
with international require-
ments.
The CSA and CCAA
believe that heads of Carib-
bean and Latin American
governments, members
of OAS, OECS, ACS, the
Caribbean Ship Owners'
Association, Port Manage-
ment Association of the
Caribbean, the UN Centre
on Global Counterterror-
ism Centre (CCGC), among
others, should be actively
engaged in a project (to be
funded by multilateral agen-
cies) to:

* Conduct an assessment
of port security across the
region (what now exists
throughout the region?)

* Establish a minimum
security standard that can
be implemented for all


regional ports based on
ISPS minimum require-
ments.

* Support relevant infra-
structural engineering
assessment and develop-
ment that is needs based.

* Establish a standard
for training (in accord-
ance with the minimum
requirements) of port
management and author-
ised private terminal per-
sonnel to address interna-
tional, regional and local
security concerns and
advocate for the execu-
tion of said training.

* Prepare best practices
port security manual for
distribution throughout
the region.

* Promote the institution-
alisation of a Caribbean
Regional Security Council
that would effectively
interact with national
designated authorities,
security service providers
as well as international
regulatory bodies.

It is to the region's benefit
that it standardises maritime


security legislation, in com-
pliance with international
law. The US, in achieving
a sustainable plan, would
need to provide financial
and technical support to the
Caribbean and Latin Ameri-
can countries in establishing
and maintaining minimum
compliance standards with
its maritime legislation and
to further assist with infra-
structural and technological
developments in ports as
was done in the case of the
Customs-Trade Partnership
against Terrorism (C-TPAT),
the Container Screening
Initiative (CSI), the American
Counter Smuggling Initiative
(ACSI) and the Megaports
Initiative. The support to the
Caribbean and Latin Amer-
ica should be at a regional
level and not to specific
countries, as this would still
leave loopholes and targets
for terrorists.
The USA should acknowl-
edge the region's depend-
ence on its market and the
region's role as a major part
of the global supply chain,
which could threaten stabil-
ity and development if there
is interruption in trade


CARIBBEAN MARITIME I JANUARY APRIL 2009 15


j)


MARITIME SECURITY I






B' KINGSTON WHARVES




KWL rated tops among


sub-regional ports


THE FUTURE of maritime
container transport
will be dominated by large
containerships of 12,000
teu or more, relayed by an
extensive fleet of feeder
vessels. And the conse-
quences for the maritime
geography of container
lines will be dramatic.
The picture already
emerging is one of a back-
bone service, formed by the
main east-west and west-
east loops, on which mul-
tiple north-south links are
grafted. These critical links
will occur in global or mega
hub ports. The network of
services will be completed
by various layers of tran-
shipment and feedering to
connect the global or mega
hubs with regional or sub-
regional hubs and the latter
with a multitude of feeder
ports. Such multilayered
networks will give each port
a distinct status within a


global service pattern and,
inevitably, this will alter
the competitive position of
individual ports.

Leading
Jamaica's Kingston Wharves
Ltd (KWL) was ranked as
the Caribbean's leading
'independently managed'
sub-regional hub port in
2007 by Containerisation
International.
The regional primary
transhipment hub ports
include Kingston Container
Terminal, managed by APM
Terminals; Freeport Con-


Dominican Republic, man-
aged by DP World of Dubai.
The leading sub-regional
hub port is KWL, followed
by Port of Spain, Trinidad,
managed by Portia Manage-
ment Services Ltd, of the UK,
and then by Point Lisas, also
of Trinidad.
KWL recorded a through-
put of 167,336 teu in 2007
ahead of Point-a-Pitre
(Guadeloupe) followed by
Point Lisas, with 147,136 teu.
This underscores the
point that KWL is not just a
multipurpose container port
- and winner of the coveted


trainer Terminal, Bahamas,
managed by Hutchison Port
Holding (HPH); and Caucedo,


Caribbean Shipping Asso-
ciation award in 2006 and
2007 but also the leading
sub-regional container hub
port serving the western
and eastern Caribbean.

Productivity
According to the Florida
Shipowners' Group, in
comparing average con-
tainer moves per hour the
standard measure of pro-
ductivity among container
ports KWL was top among
the sub-regional ports with
an impressive 17.86 teu
per hour for the period to
March 2008. In January 2008
the company recorded a


By Fritz Pinnock


monthly average of 22.66
teu per hour. Georgetown
Guyana was ranked ahead of
Point Lisas and Port of Spain,
the main competitors. In
comparing the average wait-
ing time for a berth, Point
Lisas was almost double
KWL while Port of Spain was
almost three times.

Completion
In April 2008 KWL com-
pleted a US$26.6 million
expansion project of its
facilities at Berths 8 and 9
to include the demolition
of 278 metres of suspended


concrete deck slab and
beams including the cutting
of 351 steel piles and the
construction of 278 metres
of new berthage. Both con-
tainer storage capacity and
vessel berthing capacity will
be expanded by 50 per cent
as a result of this expansion.
Water depth alongside the
berth will be increased from
the 10.0 to 13.0 metres to
accommodate the growth
in vessel size in keeping
with the expansion of the
Panama Canal and global
trends.
Kingston Container Termi-
nal is competing against
Freeport Container Terminal


16 CARIBBEAN MARITIME I JANUARY APRIL 2009


Jamaica's Kingston Wharves Ltd was ranked
as the Caribbean's leading 'independently
managed' sub-regional hub port in 2007 by
Containerisation International
















the .4k I :&


in the Bahamas, Manza-
nillo Terminal in Panama,
Caucedo in the Dominican
Republic and Colombia for
top regional hub port status,
while KWL is positioned as
the leading sub-regional hub
port supporting Panama and
Kingston Container Terminal


AVERAGE WAITING TIME
FOR BERTH (HRS)


KINGSTON WHARVES
GUYANA
MARTINIQUE
CAYMAN ISLANDS
NASSAU
CASTRIES
PORT OF SPAIN
MONTEGO BAY
BARBADOS
ANTIGUA
HAITI
POINT LISAS
DOMINICA
SURINAME
GRENADA
PROVIDENCIALES
ST. MAARTEN
ST VINCENT
ST. KITTS
FREEPORT
TURKS & CAICOS


as gateway to the western
and eastern Caribbean.
With its newly expanded
facilities, major invest-
ments in technology and
logistics capabilities, KWL
will strengthen Jamaica's
development as a world-class
maritime centre, helping the


country to capitalise on its
central geographical position
in the east-west and north-
south global trade routes.

The year ahead

The year ahead will be one
of challenges and opportu-
nities as the emergence of


AVERAGE CONTAINER MOVE PER HOUR


the Caribbean as a global
transhipment hub could
be affected by new strate-
gies by global carriers, such
as Maersk, using new hub
ports for example, Pacific
ports as transhipment
hubs. This would reduce the
amount of cargo transiting
the Panama Canal in smaller
vessels. This translates into
a new pattern that could
have a significant impact on
hub ports such as Kingston
Container Terminal, Port
of Caucedo and Freeport
Bahamas in the future. This
would see the traditional
global hub ports competing
with regional hub ports for
the larger regional tranship-
ment business. This would
put significant pressure on
sub-regional transhipment
ports to become more com-
petitive even while reducing
overheads.
In response, KWL made
a significant overhaul of
its staff infrastructure in
November in an attempt to
position itself for the chal-
lenges of 2009. m


CARIBBEAN MARITIME I JANUARY APRIL 2009 17


-__

- II

















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Ki S.on .. r'. _mil' ;; is s':,- bed -.,: its customers f'. itly and
safely without compromise.




KINGSTON WHARVES LIMITED
mmirnPM MuIMnu, m STREET, NrWPr ES PO. BOX 26. KKIN JAMAICA, WEST DIES
TELEPHONE (76) 3-S211-,923-1 41-8, FAX (87) 923M-5361, St Wee WWW.tkIneWlwtcmareSOm


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You can trust Sea Freight \gcIt i % to handle
all of your hi p ping needs, whether you are
ill'11, i rH i or f.,lhill'lig

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e-Mi CullIS a m. ..
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* I.,,i I'lh A.sociatiL-t'n Lf li-flhdlados ILrblad s Chm'ber of.ommrl't'e
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spletof















Raareg3
102 AArseIa
Th 4.1 -.and
P.O Bo I0


a- IT 4


B Bs -r.._ of.i? __Qr-um
C Uj^ / ~ ,-'- J -.l. j \jJ -- '-A1*-






THE YEAR AHEAD IN THE CSA I


The year ahead -



progress for the CSA


THE YEAR AHEAD prom-
ises progress for the
Caribbean Shipping Asso-
ciation as the organisation
moves forward in assist-
ing the regional shipping
industry to achieve and
sustain growth.
The year begins with the
Association's General Coun-
cil gathering in Kingston
on 19 January for its annual
planning session. Members
of General Council will sit
with Secretariat staff to plan
and schedule a variety of
programmes and projects.
The top priorities, as out-
lined by the CSA president,
are security and training.
As regards port security,
the General Council, will
finalise plans to activate
the proposed CSA Security
Assessment Council. This


will be a CSA entity to assist
and support terminals and
ports in the Caribbean
with initiatives and plans
to develop port security
systems adequate for their
needs. It will have an advi-
sory role and will be able to
assist ports and terminals to
estimate and identify their
security needs. This assist-
ance will not be imposed on
ports. Rather, the Security
Assessment Council will
provide advice and support
when requested.
Key players
CSA president Fernando
Rivera said: "Most of the key
players have already com-
mitted to this project and
during our General Council
meeting in January we will
develop an action plan for
implementation."
The CSA has been play-
ing a key role in the
& development


U


and presentation of train-
ing programmes designed
to raise and improve the
standards of performance in
all areas of Caribbean ship-
ping at management and


operational levels. The Gen-
eral Council will discuss and
finalise the 2009 training
programme, which will see
courses and events offered
in a number of Caribbean
countries. This will include
training events for the cruise
industry as well as manage-
ment seminars and other
special courses prepared
by the CSA Secretariat. In
addition, the Puerto Rico
Shipping Association (PRSA)
has opened its year-long
training programme to all
CSA members and national
associations. The PRSA plans
one training seminar each
month.
Two major conferences
are planned by the CSA
for 2009. The first is the
annual Caribbean Shipping
Executives' Conference,
which be held in Carta-
gena, Colombia. This event


is already in an advanced
stage of planning and topics
to be presented will help
Caribbean shipping execu-
tives make the most of the
opportunities and avoid the


pitfalls likely to be encoun-
tered in 2009 and beyond.
The eighth Caribbean Ship-
ping Executives'Conference
will be held over three days,
on 18,19 and 20 May.

Major event
The second major event is
the 39th Annual General
Meeting, Conference and
Exhibition, to be held in
Paramaribo, Suriname, in
October. This is the largest
event on the CSA's calendar
and the biggest single ship-
ping industry event in the
Caribbean.
The 39th AGM will see a
new president elected by
the CSA. The president may
serve a maximum of three
years. The sitting president,
Fernando Rivera, of Puerto
Rico, has been in office since
October 2006 when he was
elected 14th president. m


CARIBBEAN MARITIME I JANUARY APRIL 2009 21


The CSA has been playing a
key role in the development
and presentation of training
programmes designed to raise
and improve the standards of
performance in all areas of
Caribbean shipping










































.4'-
& ON1


gi -. ,


- CONTRACT COMPANY AMOUNT

Excavation of Pacific Access Channel Phase I Constructora Urbana S.A. $40,431,196
Excavation of Pacific Access Channel Phase 2 CILSA Ponam6-Minera Maria $25,489,200

1 Dredging of the Pacific Entrance Navigation Channel Dredging International $177,500,677.78






PANAMA CANAL EXPANSION: UPDATE I1


Access Channel, a 6.7 km channel,
almost parallel to the present Mira-
flores and Pedro Miguel locks, that will
join the new locks to Culebra Cut, near
the Centennial Bridge.

Levelling of Paraiso Hill
The request for proposals for the third
of these projects, which includes the
levelling of Paraiso Hill to 27.5 meters,
has already been published. When the
expansion project began on 3 Septem-
ber 2007 this hill had an elevation of
136 metres. Its height will be reduced
to 46 metres at the conclusion of the
first excavation project in 2010.
In terms of money, the biggest canal
expansion contract awarded so far is
the dredging of the Pacific entrance.
Initiated in November, this involves the
removal of 9.1 million cubic metres of
material from the seabed.

Largest component
The request for proposals for the
design and construction of the new
locks the largest component of the
expansion is well under way. This bid-
ding process began last year, with four
consortia being selected in December.
Thirty companies from 12 countries,
including nine of the best known in


their field, make up the four consortia.
The consortia must submit their
technical and economic proposals by
3 March. The ACP will then analyse
the proposals, with 55 per cent of


is submitted to the following oversee-
ing bodies:

* The Executive Branch and the Legisla-
tive Assembly


At the end of November, more than 5 million cubic
metres of material equivalent to the weight of
about 100 million adults had been removed


the weight going to technical value
and the other 45 per cent to the price
proposal.

Accountability
The ACP complies with its 'account
giving' mandate through an infor-
mation and communication proc-
ess. Accordingly, the ACP prepares
a quarterly progress report of the
expansion programme. This document


* The Comptroller's General Office

* The Ad Hoc Committee, which
includes representatives from the
church, workers' unions, businessmen's
associations, universities, and civic
organizations.

Most jobs in 2009
By the end of this year, about 2,000
jobs will have been created at several


I.4 EIr ',
slamB~~


Tedr onlin

COTATCOIGDT

Exaato of Paii Aces Chne Phs 3 Dece* 0























Hil i oi


I1h


Tr I


SI I I I K






FINANCIAL CRISIS IN THE USA I


Will the Caribbean


catch pneumonia?


THE YEAR AHEAD will be histori-
I cally significant. Not because one
of the world's largest markets went
into a recession, but because of
the remedies to be applied and the
results, or lack of results. It only make
it more interesting that a new Presi-
dent is in the White House.
Barack Obama, whose mandate for
change was already under assault
from the recession gremlins,
'increasing unemployment'
and 'declining pro-
duction', even
before ht


In.D


took up office on 20 January 2009, will
make history no matter what he does
or how well he does it. Regardless,
this year ahead will be remembered in
history for his having taken office and
s the tsunami of international goodwill this
single event brought to the USA.
Confirmation
He takes up office a month or so after
the US recession was made official. In
December 2008 came final, unchal-
lenged confirmation that the USA was
in an economic recession and, accord-
e ing to the National Bureau of Economic
Research, had been since December
2007. We were all right after all. And the
confirmation itself immediately became
the backdrop for all the year-end
reviews and analysis of stock market
declines and the government's finan-
cial bailout of super corporations.
Strategies
Even as the new President takes the
V reins, his fledgling administration will
immediately have to start imple-
menting strategies to get Americans
to perform a balancing act to save
and consume at the same time. In
the Caribbean shipping industry
there are many who would give
the new American President
props if his administration was
able to keep US markets thirsty
for foreign imports and convince
every American citizen to take a
cruise to the islands.

Linked
The US economy and those of
Caribbean nations are tightly
linked. It has often been said that
if the USA sneezes, the Caribbean
catches a cold. If the US economy
does well, then the Caribbean does

\IIHHIAN MARITIME I JANUARY- APRIL 2009 25











never miss another issue


S m --_____


www. Iandmarine.com/cm


ww, ii
~~1


I - -
uaaiu


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


Z 7 -Z:.


SIARMIE






FINANCIAL CRISIS IN THE USA I


well. And, as Sir Courtney Blackman
has argued, if the US economy is not
doing well, this affects the Caribbean.
Therefore, as the economic situation
in the USA is now very bad, then the
economic situation across the Carib-
bean must also be affected. The sad
thing is, this recession in the USA is
projected to run for a while longer and
through 2009. This is clearly more seri-
ous than a common cold. In which case,
will the Caribbean get pneumonia?

How long?
According to Sir Courtney, the present
financial malady will not last as long as
the Great Depression. That event and
period had been studied inside out and
exhaustively by economists all over the
world and, he suggested, there was
knowledge enough to set corrective
action in motion.
"It won't last as long as 10 years,"
he told delegates to the 38th Annual
General Meeting, Conference and
Exhibition of the Caribbean Shipping
Association in Port of Spain on 14
October.


That is some consolation. Perhaps
'how long will it last?' may not be the
pertinent question. Perhaps we should
be asking: 'How long can we last?'

Effects
Sir Courtney Blackman, eminent econo-
mist, author and founding governor of
the Barbados Central Bank, contended
that US consumers spend more and
import more than anyone else in the
world. As the recession continues,
imports to the USA will be negatively
affected and both blue and white collar
workers may decide it is financially
prudent to go without a vacation this
year. Together, a downturn in imports
and vacation travel could mean trouble


for the Caribbean. Add to that scenario
a decline in cash remittances from
Caribbean people living in the USA to
relatives in the region.
This recession could be hitting home
closer than you think.
Also, the volume of cargo sent home
each year by Caribbean nationals could
be directly affected as the impact of the
recession makes life difficult for those
working in the USA. Indeed, a lot of
business sectors freight consolidators,
truckers, LCL cargo storage, movement
and handling depend on barrels and
appliances being shipped home.

What strategy?
And what if US domestic imports
decline significantly in the year ahead?
What strategy should Caribbean busi-
nesses employ?
"Staying alive! Staying alive until the
sun comes up again," said Sir Courtney.
Cash flow is more important than earn-
ings, he said, so companies should be
so guided.
We should use this period of crisis and
uncertainty to look at new approaches


and strategies of operations, he sug-
gested. Also, he warned, businesses
should not cut assets; rather, they should
be cutting expenses. In this regard, he
advised companies to try to avoid laying
off staff, especially skilled workers.
"You don't want to lose skills and
assets," he said. "That will hurt both
recovery and the long-term prospects
of the business. You don't want to be
employing new people. Use the oppor-
tunity to train staff to get them ready
for the time ahead."
One delegate was concerned about
the effect of the financial crisis on
labour and trade union negotiations
in the Caribbean. Sir Courtney said he
believed trade unions should forget


about pay increases in the present
circumstances and try to understand
what was happening.
At the same time, the employers
might want to negotiate a pact with
the unions in which they agreed not to
lay off staff. In other words, as he had
pointed out earlier, the matter at hand
was 'staying alive'.

Lessons learned
The lessons to be learned from the cur-
rent financial crisis are many. Sir Court-
ney shared some of his observations:

* The USA will learn that it has to regu-
late its financial system

* Government is part of the so-called
'free market'. The market cannot exist
in the absence of government. Govern-
ment's involvement is only a matter of
degree

* There is no such thing as a 'free
market'. There has to be regulation.

"If it's free, it's not a market; if it's a
market, it's not free," said Sir Courtney.
As regards specific lessons for Carib-
bean business, he felt that insurance
should be paid not in local currency
but in hard currency. He clearly knew
that a lot of insurance premiums were
being paid in local currency. His advice
in this regard was well received by the
CSA and by more than 200 delegates
representing all four language groups
across the Caribbean region. m


CARIBBEAN MARITIME I JANUARY APRIL 2009 27


The sad thing is, this recession in

the USA is projected to run for a

while longer and through 2009




THE YEAR AHEAD FOR THE CARIBBEAN

The morning:
after the
night be fore
By Gary Gimnson
\^hfu^.







TEYAR AHEADO THE CARIBBAN







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di THE YEAR AHEAD: CARIBBEAN CRUISE


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making the Cariforum
M Economic Partner-
ship Agreement (EPA) with
the European Union work
for Caribbean businesses
requires an understanding
of the opportunities and
challenges that the agree-
ment presents. The very
idea of open competition
between our small econo-
mies and those of the EU
economic powerhouse
has given rise to critical
discussion and expres-
sions of alarm within
the region. This article
addresses some of the
concerns raised about the
EPA: What exactly did the
Caribbean give away and
what did it get in return?
How will the EPA affect
the region's development?
Does the EPA create real
opportunities for the
region's businesses?

Why did Caricom have to
negotiate an EPA?
The'banana'issue has not
gone away for the region.
Despite substantial cut-
backs in the preferences
that bananas from the
African-Caribbean-Pacific
(ACP) countries receive
when entering the EU, the
Central American countries
have continued to protest
that these preferences are
illegal and to litigate the
issue before the World Trade
Organisation.
The WTO decisions have
repeatedly sided with the
Central American countries
in this dispute. Furthermore,
the issue has expanded to
include preferential access
for all ACP products that
enter the EU market because
the WTO waiver for these
preferences to continue






ECONOMIC PARTNERSHIP AGREEMENT WITH EU I


expired on 31 December
2007 with little or no chance
of renewal. In sum, the days
of unilateral preferences are
numbered. The region had
been sitting on a ticking
time bomb and needed to
move assertively to minimise
the potential negative fall-
out from events over which
it has little if any control.
Negotiation of an agree-
ment that provides access
for its products to the EU
market in return for access to
the region's markets was an
effective means of achieving
this goal.

What did the region get
and what did it give away?
The region received from
the EU:

* An immediate guarantee
of duty-free, quota-free
access for 100 per cent of its
products (qualifications on
rice and sugar) that meet the
criteria for being qualified
as a product of Cariforum
(Caricom plus the Domini-
can Republic)

* Immediate access for
professionals and investors
to the service sectors in 27
countries

* Commitments of develop-
ment and co-operation assist-
ance to implement the EPA.

The region granted to the EU:

* From 2011 decreasing
tariffs on 90 per cent of EU
product leading to duty-free
access by 2034

* Immediate access for
professionals and investors
in up to 62 per cent of the
region's service sectors


* Commitments to imple-
ment reforms to support
EPA implementation.

Is the agreement
sufficiently
pro-development?
The true test of this is not
whether the agreement
dedicates sufficient funds
to help the region with the
transition. Although no-one
can quarrel with the posi-
tion that the region should
seek to get as much money
as possible to assist with this
costly and difficult process,
the reason this adjustment
is going to be so costly
is primarily because the
region will be trying to do
work that should have been
in progress, if not already
accomplished.
A better test is whether
the EPA will help the region
to advance its development
goals for the 21st century.
Does the agreement give
sufficient attention not just
to protecting the traditional
products and existing
industries but also to ensur-
ing that new and emerging
sectors and players will also
have their day in the sun?
No government official can
imagine or anticipate where
the entrepreneurial spirit
will take off and in what
direction. Their role, how-
ever, is to create the busi-
ness environment that sup-
ports rather than impedes
that creativity. What if, for
example, the region's recent
Olympic success prompts
development of a viable
sports tourism sector?
The agreement has a
number of very positive
features in this regard.
One of its hidden gems is
the commitment by both


parties to provide ongoing
monitoring of the operation
of the agreement as well
as prompt consultation on
issues as they arise.
As a result of these con-
sultations, the region's com-
mitments may be modified
to respond to:

* Serious difficulties with
the import of a given prod-
uct to allow modification to
the schedule for liberalisation

* Difficulties being experi-
enced by an exporter to the
EU market to allow changes
to the rules that determine
how the product qualifies
for preferential access;

* Serious problems with
the availability of or access
to foodstuff to allow use
of safeguard measures to
temporarily restrict imports

* Products being sold below
their cost of production
to allow for an increase in
duties on those products
(anti-dumping).

These mechanisms can also
be used to identify areas
for technical assistance and
co-operation. While it will
take work to ensure that the
appropriate mechanisms
operate effectively, they can
provide a direct vehicle to
policymakers in the EU to
raise and seek solutions to the
issues being encountered by
Caribbean exporters, manu-
facturers and consumers.

Does the EPA address the
expected loss in revenue
from tariff liberalisation?
Liberalisation of imports
will inevitably result in lost
revenue from reduced tariff


collections. However, the
region committed itself to
go down this path when
the countries joined the
WTO and its liberalisation
platform and to liberalise
trade within the Caribbean
Single Market. So it is unfair
to single out the EPA for this
criticism. At the same time,
the tariff reductions under
the EPA do not begin until
2011 and will be phased in
over five-year interim which
have been scheduled to take
into account the region's
ability to find alternative
sources of revenue through
improvements to tax collec-
tion, implementation of the
value-added tax and other
mechanisms.

Does the EPA MFN clause
prevent the region from
signing other agreements?
The Most Favoured Nation
(MFN) clause states that,
should the region negoti-
ate a trade agreement with
another country whose
GDP exceeds 1 per cent of
world economic trade, any
more favourable treatment
granted to that country
must also be extended to
the EU. Countries in this cat-
egory include the emerging
market economies such as
Brazil, China and India.
Here is a practical exam-
ple of this clause in opera-
tion. If the region decides to
negotiate a trade agreement
with Brazil, one potential
area for co-operation is the
development of alterna-
tive energy sources, using
ethanol made from sugar or
some other material. This is
an area in which Brazil has
made advances, has much to
offer the region and is inter-
ested in exporting its tech-


CARIBBEAN MARITIME I JANUARY APRIL 2009 37






A' ECONOMIC PARTNERSHIP AGREEMENT WITH EU


nology and expertise. Per-
haps, in return, Brazil wants
to get duty-free access for
its cars immediately, that is,
before the region is required
to grant duty-free access to
UK cars. When looked at in
this context, the MFN clause
could present a potential
stumbling block to a future
Brazil-Caricom trade agree-
ment.
Fortunately, however, the
EPA contains an additional
provision which allows the
region to make its case to
prevent the MFN clause
from applying. Using the
above example, the region
could argue that the more
preferential treatment
being granted to Brazil
would promote the use of
automobiles that rely on
a renewable alternative to
fossil-based fuels, thereby
promoting more sustainable
environmental growth. The
MFN clause is therefore not
insurmountable, but chal-
lenges the region to think
carefully about concessions
that it makes to future trade
partners.
What about the effect
of the EPA on the future of
Caricom relations with its
biggest trade partner, the
United States? Because it is
difficult to imagine the US
negotiating a trade agree-
ment that comes anywhere
close to the types of flex-
ibilities built into the EPA,
it is also difficult to imagine
the EPA affecting Caricom's
ability to negotiate an FTA
with the US in the near
future. Rather, the most
likely scenario for advancing
US-Caricom trade relations
is through negotiation
of Trade and Investment
Framework Agreements


with the US Government
and memoranda of under-
standing with agencies
such as the Departments of
Agriculture and Commerce
and the Export-Import Bank
to achieve specific and
targeted agreements and
commitments of technical
and financial assistance to
address existing bottlenecks
in the movement of goods,
services and investments.

Does the EPA create real
business opportunities for
Caribbean businesses?
In addition to guaranteeing
continued access for prod-
ucts that have traditionally
entered the EU market, the
EPA also promises market
access in new product areas
and in a number of service
sectors. Making this prom-
ise a reality will require
that companies, their trade
associations and Carib-
bean governments monitor
implementation of the EPA
by EU member states. To do
this, they must achieve the
necessary collaboration to
address the existing techni-
cal barriers to the entry of
goods and the requirements
for the provision of services
by Caribbean companies
and professionals.

Of interest to the CSA
Of primary interest to mem-
bers of the Caribbean Ship-
ping Association (CSA) are
the provisions that will allow
maritime** and courier com-
panies to provide services to
over 20 European countries.
Subject to specific
requirements within each
European country, CSA
members may establish a
commercial presence or
provide services across


borders that is, without
establishing a commercial
presence in such diverse
countries as the UK, Den-
mark, Spain, France and
Malta. The EU governments
must give such companies
national treatment, that is,
treatment no less favour-
able than what is given to
their domestic investors
and commercial entities
engaged in the same activ-
ity. They cannot impose
numerical or transactional
quotas, restrictions on the
participation of foreign
capital or limitations on the
type of commercial pres-
ence or ability to enter into
joint ventures with an EU
investor.
Of course, this also means
that Caribbean companies
will have to comply with
those requirements placed
on domestic providers, such
as registration, certification
and licensing.
As the EPA is recipro-
cal, providers of similar
services in the EU will also
have access to Caribbean
markets on the same terms.
This presents one area of
challenge to CSA members
as they will have to be pre-
pared to compete on their
home turf. At the same time,
the EPA stipulates the port
services to be provided by
the EU on reasonable and
non-discriminatory terms,
including pilotage, towing
and tug assistance, provi-
sioning and fuelling.
Caribbean ports will also
have to guarantee these
services to EU companies
entering the regional
market. Besides being in
the interest of the CSA to
ensure that these terms are
met so that there are no


retaliatory measures taken
against Caribbean maritime
providers, this requirement
has the potential to produce
benefits through overall
improved port services for
all users.

Gaining market entry
It is important to under-
stand that at this time there
is no unified EU services
market. This means that
Caribbean service provid-
ers have the opportunity to
gain entry to the markets of
EU member states before
companies in another EU
member state are able to do
the same. This also means,
however, that interested
investors will have to be
prepared to investigate the
specific requirements for
doing business in the coun-
tries of interest.
Another challenge, then,
for the CSA and its mem-
bers, is to become very
familiar with the require-
ments that currently exist in
those EU countries of prior-
ity interest and any limita-
tions placed on Caribbean
businesses by the individual
countries. Should these limi-
tations prove to be harsh
or unreasonable, follow-up
work must be done to make
the case that they need to
be revised or removed to
provide real market access
for Caribbean businesses.

Opportunities for regional
collaboration
Companies from across
the region can combine
their resources to provide
services to the EU market.
This includes the opportu-
nity to combine resources
with companies from the
Dominican Republic, now


38 CARIBBEAN MARITIME I JANUARY APRIL 2009






ECONOMIC PARTNERSHIP AGREEMENT WITH EU I


a Cariforum partner in the
EPA, opening up pos-
sibilities to capitalise on
their advantages, such as
language and culture and
any more established ties in
European markets.

Conclusion
Turning EU commitments
into reality is the primary
challenge to overcome in
ensuring that Caribbean
businesses receive real
benefits from the EPA. This
work will need to be done
by Caribbean governments,


companies and their trade
associations such as the
CSA. (We can be assured
that the EU counterparts
will be monitoring Carib-
bean implementation of its
commitments.) In addition,
the CSA has an ongoing role
to play in monitoring the
impact of the agreement
on its members and to use
the review periods built into
the EPA to slow or speed up
the liberalisation process,
as appropriate. Despite the
challenges, the opportuni-
ties are real, and with the


agreement already signed,
attention must now turn to
making it work. i


** This does not include
the provision of national
maritime cabotage, that
is, transport services
within an individual Car-
ibbean or EU state for
the carriage of passen-
gers or goods, as these
areas have been specifi-
cally excluded from liber-
alisation by both parties
to the EPA.


* Andrea M. Ewart is a
Washing-based trade
attorney. Her law firm
works with Caribbean
companies to minimize
costs and delays associ-
ated with importing into
the USA. She lectures
and writes on interna-
tional and trade law
issues.


CARIBBEAN MARITIME I JANUARY APRIL 2009 39






d" NEWSBRIEFS


Kingston Wharves Ltd
has unveiled a lestruc-
tuling plan that will result
in a number of employee
redundancies. This deci-
sion was taken after careful
analysis and was not taken
lightly, says KWL. It will affect
all levels of the organisation,
including managerial and
supei visory staff. Global and
regional competition are said
to have played theii part in
this development.
In particular, stiffer compe-
tition from several self-regu-
lated ports in the region that
began as gieenfield opera-
tions, such as the Dominican
Republic and Panama, were
cited as significant factors
that bought about the
restructuring. Operating
costs, given the harsh eco-
nomic environment locally
and overseas, have rapidly
outpaced revenue growth.
Other factors, including the
US recession, natural disas-
ters and the turmoil in the
financial sector have exac-
erbated the problem. The
refocused business strategy
is expected to strengthen the
company's competitiveness
and productivity.
KWL isoneof theCalib-
bean's leading multipurpose
tei minal operators, handling
ro-o and lo-lo vessels and
contained ised, bulk and break-
bulk caigoes. It is also involved
in tianshipment of cais.


WU 9 he th Caibea Shppn -s a 208wt -1 ereqa xeso n

Ma 200 me br and deeae 00l 0.v 1 .0 rube 0e ganrie. Thi isprto0
an oporunt to see th recent devlo US 0 milio log -t. rm 0.etmn to
-t *00ll*.0E na0.P* .0* - .ll0 *. . . .



opnn 00 the exane Paam Caal vesl of 12000 t apct by 20 12 00.a

Las yea alone,.0 0oiea Pot einl rt f2 0 t300 0otie moe0 ervse
de Catgn (SP : inese $1 0 mlin prhu. Catgea whc hadls hg
on 0ori prove0 ments. Its three fa0ilB0ities, v m f e i
KiBManga, CotHeiariand Mu lle de l B nosqu P s ignfcn rwhi rasimn uies




to Im illioB n in 2008. Thle f Sirs tp aseofthi center i aragn rthrthn s
the pgain roram bgnI early ^^^f ij^n other h^^ E^^ubsweedmsic cargo is lower.


Cuba deepening its ports

Cuba expects to complete deepening all its main sea-
)poi ts easily this yeai The diedging project, announced
by the govei nment in 2007, includes Havana, Santiago and
Clenfuegos, which together handle 85 pel cent of Cuba s
domestic caigo Diedging began in mid 2008 and was
expected to be completed at the end of 2008 oi easily in
2009 Pieviously, Van Ooid had a 2 million contact foi
maintenance dredging of the access channel and basin inI
(the ha13bou at Moa The project included (the poI ts of Mailel,
Nilpe, lNuevitas and Cai upano


A new cargo security
inspection system that
can detect radioactive mate-
rials has been installed at
Caucedo's multimodal facil-
ity. The Dominican Republic
is keen to underline its role
as a reliable trading part-
nor andrl tn drmonnctrate


that imports and expoi ts
are subject to the kind of
rigid security demanded by
the current state of woi Id
shipping. Installation of the
new inspection system was
announced by the Domini-
can Customns Agency DGA)
in November.


40 4 iZIim I N Psi RIis I INIF WjIjK


k il'l;[] Iu












Maersk and


CMA-CGM in


vessel sharing


agreement


The year ahead will see
Maersk and CMA-CGM
embark on a new venture.
Late last year, following
the success of a previous
vessel sharing agreement,
the Danish carrier Maersk
Line announced a new
vessel sharing agreement
(VSA) with the French-based
company CMA-CGM using
both the Panama and Suez
canals. This will commence
in May 2009. The VSA covers
the Far East to east coast USA
and Far East to the Pacific
Northwest. There will be two
strings, one taking advan-
tage of the scale benefits
of a Suez Canal crossing,


the other using the Panama
Canal. The first string will be
a pendulum between the Far
East, the Pacific Northwest
and east coast USA. It will
serve an eastbound port
rotation of Shanghai, Hong
Kong, Yantian, Singapore,
Newark and Norfolk, with
westbound calls at Singa-
pore, Hong Kong, Yantian
and Shanghai by way of
the Suez Canal. The second
segment of the pendulum
service will see service to the
Pacific Southwest discon-
tinued. However, access
to inland markets in North
America through Seattle and
Vancouver will continue.








































Aff




















4p



A4






HAZARDOUS MATERIALS I




THE YEAR AHEAD


Spotlight on key amendment


to International Maritime


Dangerous Goods Code


F OR CARGO OWNERS,
the year opens with the
international spotlight on
rules about the shipment
of hazardous materials.
On 1 January 2009 the
world's maritime industry
will have formally received
Amendment 34 of the Inter-
national Maritime Danger-
ous Goods Code (IMDG). This
amendment becomes law
on 1 January 2010.
Amendment 34 addresses
and updates a range of
issues related to the ship-
ping of hazardous materials
including chemicals, fuels
and batteries. It incorporates
changes to labelling stand-
ards and makes shoreside
hazardous materials training
a mandatory requirement.
The European Union
(EU) began the year with
its four-month-old 'com-
promise package' for a new
regulation on classification,
labelling and packaging of
substances and mixtures.

Compromise
On 3 September a majority
of the European Parliament
supported the 'compromise
package', which seeks to
align existing EU legislation
with the Globally Har-
monised System (GHS) of
classification and labelling
of chemicals. GHS is a United


Nations system to identify
hazardous chemicals and
inform users about them by
means of standard symbols
and phrases on packaging
labels, along with safety
data sheets (SDS).
It is just over a year since
the EU began to implement
the new REACH regulation
- on registration, evaluation,
authorisation and restric-
tion of chemicals aimed at
streamlining and improving
the EU's legislative frame-
work on chemicals. The 849-
page document took about
seven years to pass. REACH
has been described by some
as the most complex legisla-
tion in the EU's history. It is
perhaps the most impor-
tant legislation in 20 years.
REACH is the strictest law
to date regulating chemical
substances and will impact
industries throughout the
world. Among its tasks is
to protect human health
and the environment more
effectively from risks posed
by chemicals. REACH makes
industry responsible for
assessing and managing the
risks posed by chemicals
and providing users with
safety information.
The transport of hazard-
ous material and the pos-
sibility of tragic and costly
incidents are matters of vital


concern to the Caribbean
shipping industry. The rash
of international regulations
over the past decade, as
the remaining barriers to
international trade crum-


ble, speak to a worldwide
concern about hazardous
materials and the care and
safety systems that must
be used to ensure that
human life is protected, eco
systems are preserved and
the economies associated
with the free flow of goods
maintained.

Reminder
A timely reminder of the
shipping industry's need
to ensure safe and secure
handling of hazardous cargo
came in October from Cliff
Bartley, hazardous materials
manager at Horizon Lines,
LLC. He said cargo must go
through the entire transpor-
tation chain without inci-
dent and the industry must
ensure it did not fall into the
wrong hands. The industry
had to act in accordance


with the regulations, he said.
To begin with, all players
in the Caribbean shipping
industry the shipping
agents and portside opera-
tions specialists in Group A,


the terminal operators and
port authorities in Group B
and the ship operators and
carriers in Group C must
become very familiar with
all the regulations includ-
ing, and especially, new
amendments now being
introduced. In addition, they
have a responsibility to assist
and encourage their clients,
the shippers, to know and
implement these regulations
down to the last letter.
Unfortunately, said Mr
Bartley, too many waited
until tragedy struck before
they began the process of
preventing it.
"It is said that the rules
governing the transporta-
tion of hazardous materials
were written in blood," Mr
Bartley told the 38th annual
conference of the CSA in
Port of Spain. "Reforms are


CARIBBEAN MARITIME I JANUARY APRIL 2009 43


The transport of hazardous
material and the possibility of
tragic and costly incidents are
matters of vital concern to the
Caribbean shipping industry






A' HAZARDOUS MATERIALS


considered and/or enacted
each time a major catastro-
phe or near miss occurs."
The International Mari-
time Organization (IMO)
acknowledges that ship-
ping is one of the most
dangerous of international
industries. Against this back-
ground, the IMO takes the
position that the best way
of improving safety at sea is
by developing international
regulations that are followed
by all shipping nations.
"Clearly this works. It's like
ensuring that all motorists
understand and follow the
rules of the road. Without
articulated regulations that
are slavishly followed, ship-
ping becomes even more
dangerous," he said.

How are hazmats
regulated?
At any given time, a single
hazardous cargo shipment is
regulated by several gov-
ernmental and non-govern-
mental parties. Cargo must
be able to pass the tests of
a series of regulators and
enforcers before it is finally
and safely delivered to its
consignee.
"You may have to comply
with the international modal
hazardous materials regu-
lations, country or federal
governmental regulations,
state laws and sometime
local regulations as well.
Carriers will also have their
own policies that must be
followed." In this regard, said
Mr Bartley, the whole indus-
try needed to be aware of,
and familiar with, the United
Nations' Orange Book.
All hazmat regulations are
based upon 'Recommenda-


tions on the Transport of
Dangerous Goods Model
Regulations', known as the
Orange Book. It covers clas-
sification and definitions of
all dangerous substances;
packaging, labeling and
relevant shipping docu-
mentation; and training of
transport workers.
The Orange Book forms
the basis for modal agency
regulations including:

* International Maritime
Dangerous Goods Code
(IMDG)

* International Civil Avia-
tion Organisation Technical
Instructions
(IICAO)

* State Regulations

* Transport Dangerous
Goods (TDG) Clear Language
- Canada

. DOT PHMSA Hazmat
Regulations Title CFR49

. RIID and ADR- EU 'Agree-
ment by Rail & Road'.

This literature, so essential
for the shipping industry,
can be acquired through the
internet.
In Europe, REACH requires
manufacturers and import-
ers to:

* Register each chemical
substance or article in excess
of 1 tonne per year before
they may market it in the
EU. For existing substances
there are delayed deadlines
for registration provided the
substance was pre-regis-
tered by 1 December 2008.


* Collaborate to collect data
on the health and envi-
ronmental effects of their
products.

REACH provides for sub-
stances determined to be
of "very high concern" to be
restricted or eliminated.

Need to know
People moving hazardous
cargo need to know what
is being shipped. They can
determine the exact nature
of the cargo as provided by
Material Safety Data Sheet
(MSDS) information, but a
MSDS sheet will not always
indicate how the cargo is to


be classified for shipping.
Shippers need to know
the requirements of a
specific carrier and what
international or local laws
his cargo will encounter in
shipping potentially hazard-
ous materials. And carriers
on both sides of the wharf
need to know the required
method of loading, blocking
and bracing.
In booking cargo, the
industry has to be conscious
about hazardous materi-
als. At all levels, on board
ship and ashore, industry
operatives need to ensure
that associates are trained to
handle hazardous materials.
They need to keep a record


of training to make sure that
all their people are up to
speed.

Packaging
Cargo that potentially could
cause injury or health issues
or an incident that could
threaten life and property
should be packaged in such
a way that the handling
is as safe as possible. The
packaging should securely
contain the cargo to protect
it and keep it from doing
widespread damage in the
event of a package breach.
In booking cargo, the line's
representative cannot
be unmindful of this. In


fact, where the size of the
shipment and the nature
of the contract produce
an extended relationship
between carrier, agent and
shipper, it would be benefi-
cial for both sides to discuss
packaging for shipping
hazardous materials. The
discussion and actions they
trigger may not take much
time, but they could save
lives, prevent injury or, at the
least, save time and money.
Mr Bartley stressed the
importance of proper and
secure packaging and the
critical role played by labels
and placards in informing
warehouse and terminal per-
sonnel, emergency respond-


44 CARIBBEAN MARITIME I JANUARY APRIL 2009


Cargo that potentially could
cause injury or health issues or
an incident that could threaten
life and property should be
packaged in such a way that the
handling is as safe as possible






HAZARDOUS MATERIALS I


ers and ship crew about
what they are handling.
He said non-bulk pack-
ages should be clearly
labelled and warning plac-
ards should be clearly vis-
ible. Containers should carry
a warning placard, placed
so it is not covered when
the container is stacked or
when it is being transported
by rail.

Shipping of
containers
Mr Bartley said those
shipping a full container
of mixed hazardous and
non-hazardous cargo must
address certain questions:

* Is the cargo securely
blocked and braced? Is it
loaded near the rear of the
container with the labels
facing towards the door if
possible? Are placards prop-
erly placed?

* Does the shrink wrap
or overpack obscure the
marking and labelling on
the package and, if so, is an
overpack marking on the
package?

* Is any of the packages bulk
requiring the container to be
marked with the UN identifi-
cation number?

* Does the equipment
have a current Convention
for Safe Containers (CSC)
inspection?

* Is the equipment clean
and free of major damage?

He then 'walked' delegates
through shipping paper
entries and information


required, including: basic
description sequence,
marine pollutants, US poison
inhalation hazard zone A, B,
C or D designation, hazard-
ous substances, temperature
controlled hazardous cargo,
technical names, US spe-
cial permits or competent
authority certificates, haz-
ardous wastes, radioactive
cargo requirements, flash
points for Class 3 cargo and
limited quantities.
Mr Bartley said the United
States and Canada required
that an emergency response
telephone number be
placed on the Dangerous
Goods Declaration. It must
be a telephone line manned
24 hours a day, seven days
a week by a competent
person who can aid in inci-
dent mitigation.

Who is
responsible
If an incident occurred
during the shipment of
some hazardous cargo,
there would be an investiga-
tion to establish cause to
prevent a recurrence. Such
an investigation could take
on immense importance if
such an incident involved
fatalities or major prop-
erty damage and the first
order of business, one may
assume, would be to find
out who was responsible.
Clearly the shipper would
have a lot of explanation to
give the authorities.
Mr Bartley presented text
from two documents:

* Shipper Certification:
"I hereby declare that the
contents of this consign-
ment are fully and accurately


described above by [the
proper shipping name]
and are classified, pack-
aged, marked and labelled/
placarded, and are in all
respects in proper condi-
tion for transport according
to applicable international
and national governmental
regulations."

* ContainerPacking Certificate:
"It is declared that the pack-
ing of the container has
been carried out in accord-
ance with the applicable
provisions [of 49 CFR], [of the
IMDG Code], or [of 49 CFR
and the IMDG Code]."

However, most other links
in the transportation chain
would have to give account.
For example, Mr Bartley
raised questions about
moving cargo to or from the
marine terminal:

* Is your driver qualified to
transport hazardous cargo?
Does he have the proper
licence and endorsement?

* Is the driver trained to


understand hazardous
materials requirements?

* What about the safety
record of the driver and his
company?

* Does the company have a
security plan?

* Are they compliant with
the current regulatory
standards governing the
shipment?

Clearly, the shipper has a pri-
mary responsibility for packag-
ing, labelling and transporting
the product. However, a large
shipment of even some well-
known domestic and commer-
cial products could become
hazardous, even lethal, in
various circumstances along
the way. Therefore, everyone
in the transportation chain
- which is most of those read-
ing these words has to know
and understand and comply
with the regulations, even the
most recent, such as IMDG
Amendment 34, presented for
implementation in the year
ahead. m


CARIBBEAN MARITIME I JANUARY APRIL 2009 45






B' THE HUMAN FACTOR




The competitive difference


DURING the last quar-
ter of 2008 freight
rates collapsed on the
back of the world financial
crisis. Easy access to bank
financing vanished and
shipping stocks slumped
even faster than the aver-
age in plunging equity
markets.
Despite the gathering
of these dark clouds, the
financial crises may present
a silver lining for the world's
perennially boom-to-bust
shipping industry: it could
help to reduce a looming
oversupply of new ships.
Three years of record-
high freight rates on the
back of booming world
trade, thanks in part to
China's double-digit growth,
has led to giddy over invest-
ment in new ships. Over
the next four years, some
6,000 new vessels equal
to 60 per cent of the world's
current oceangoing fleet of
tankers, bulk carriers and


container ships are due to
enter service. But with the col-
lapse in the financial market, it
looks as if those ships now on
order at shipyards around the
world may never be financed,
much less built. This may not
be enough to save the indus-
try from its own excesses in
the short term, but it could
provide the basis for a strong
recovery in shipping sooner
rather than later.


It will certainly slow down
as is now the experience, but
recovery will be next and is
likely to be in line with the
economic performance of
the main drivers of the 21st
century, China and India.

Change
In the Caribbean, globalisa-
tion has both fostered and
brought to light a process
of sectorial change in the
composition of output in
favour of the services sector
and to the detriment of agri-
culture and manufacturing.
This process accentuates the
differences among Carib-
bean economies by creating
a dual pattern of specialisa-
tion, so that countries are
divided between service-
based and goods-producing
economies. Globalisation
also highlights the depend-
ence and vulnerability of
these economies. While
export growth has been
subject to the vicissitudes of


the agricultural and manu-
facturing sectors, import
growth, driven by consumer
goods, has receded since
the financial meltdown,
although it is still ahead of
exports by a ratio of 4:1. This
trade imbalance has been
one of the Caribbean's great-
est structural challenges in
providing attractive freight
rates to the region as the
import costs have to bear


the empty return to the Far
East and the United States,
the major import partners.
This situation has created
the need to attract foreign
capital to further stimulate
the growth and develop-
ment of sectors that have
been successful under glo-
balisation. Trends in employ-
ment and migration have
mimicked these changes in
output and capital flows.

Another
opportunity
The challenge for the Carib-
bean is declining volumes
and low productivity while
having to bear high labour
costs. This presents another
opportunity for the
Caribbean to embrace the
applications of information
technology (IT) so as to link
global supply chains and
uplift the level and quality
of human resource through
training and empowerment.
The shift from an indus-
trial society, where the
primary source of wealth
was machinery, to a knowl-
edge-based society, where
the primary source of wealth
is human resources, needs
to be noted. In essence, we
have undergone a meta-
morphosis. In the closing
years of the 20th century,
management has come to
accept that people, not cash,
buildings, or equipment, are
the critical differentiators of
a business enterprise, espe-
cially shipping.
A 2006 IBM study on
Global Human Capital indi-
cated that "people are the
competitive difference". The


By Fritz Pinnock

potential of people can be
transformed. Organizations
can respond successfully to
the challenges of a vola-
tile, ever-changing, global
market, especially in this
time of recession.
Human capital represents
the single greatest poten-
tial asset or liability that an
organisation will acquire as
it goes about its business.
Human capital is the only
intangible asset that can be
influenced, but never com-
pletely controlled; invested
in wisely, or wasted thought-
lessly; and still have tremen-
dous value.

Reality
The reality of the situa-
tion today is that 60 to 70
per cent of a company's
expenditures on average are
labour related. Data from
the Brookings Institute will
help to put the importance
of the measurement and
management of human
capital/knowledge assets
into perspective. In 1982
hard assets represented
62 per cent of a company's
market value on average. By
1992 this figure had dropped
to 38 per cent. More recent
studies place the average


46 CARIBBEAN MARITIME I JANUARY APRIL 2009


Over the next four years,

some 6,000 new vessels

are due to enter service






A MATTER OF LAW Et


market value of hard assets
in many companies as low
as 30 per cent. In other
words, up to 70 per cent of a
company's expenses may be
related to human capital.
For far too long, in time
of adversity or downward
cycles, the first cut is usually
reflected in human resource,
as it is still being treated as a
cost item rather than as the


a true mirror of the global
economy.
Prior to the economic
meltdown, the Caribbean
shipping industry was grap-
pling with the new supply
chain concepts and its new
role. To be successful in
global logistics operations,
it requires functional staff to
rethink and reposition them-
selves as strategic teams.


Shipping and


ports are not


recession-proof

By Milton J. Samuda, LL.B.


greatest asset in the indus- This can only be achieved What a difference a few months
try, even above the ships. through training and major can make in the world's

For far too long, in time business climate and how

of adversity or downward things are seen to be shaping
Sup in the maritime sector of
cycles, the first cut is the Caribbean region

usually reflected in


human resoui

The most adaptable com-
panies to survive recessions
and depressions are those
who focus on and invest
in their human capital and
integrated IT system into the
global supply chain as their
competitive advantage. The
traditional companies who
still look to their physical
tangible assets such as ships,
port infrastructure, aircraft,
etc without integrating their
human capital and IT are
among the first to join the
list of delinquent companies
or candidates for mergers
and takeovers.
This heralds the call
for the Caribbean ship-
ping and logistics industry
to focus on its long-term
competitive advantage and
building capacity, includ-
ing investment in training
and staff upgrades to meet
the upswing in the global
economy that will once
again drive the wheels of
this great industry, which is


cultural changes within
traditional companies within
the industry.

Upgrading
The Caribbean is grap-
pling with the upgrading of
our labour force to func-
tion within a globalised
economy. Owing to the
lack of understanding and
insufficient infrastructural
support, especially the
application of integrated
computer technology,
many companies increased
staff complements with a
corresponding increase in
productivity. It is important
for companies not to 'dump'
staff, their most valuable
assets, in times of great
challenge. Because these
are the times in which cut-
ting-edge human skills are
required to detect and capi-
talise on new and emerging
opportunities during the
transition stages created by
global changes.m


S HIPPING in the Carib-
bean came under the
spotlight in the 2008 issue
of the annual 'Review
of Maritime Transport',
published by the United
Nations Conference on
Trade and Development
(Unctad).
I encourage readers to
read carefully the chapter
entitled 'Review of Regional
Developments: Latin
America and the Caribbean'
Looking at the economic
background of the region,
the writer of this chapter
notes that:
"According to Eclac [the
UN's Economic Commission
for Latin America and the
Caribbean] the region's GDP
grew by around 5.6 per cent
in 2007, with a rise in per
capital GDP of 3.8 per cent...
This makes 2007 the fifth
year running in which the
region has marked a posi-
tive growth rate, reaching
an average annual rate of
increase of 4.9 per cent for
2003-2007, which is more


than double the 2.2 per cent
recorded for 1980-2002."
The chapter recognizes
the positive impact of
Asian demand for regional
resources; compares import
and export data; and
assesses the reality and out-
look for the region's ports
It concludes: "The outlook
on the whole is positive,
with some financial analysts
reporting that the region
has escaped much of the
knock-on effects of the US
sub-prime housing market."

Effects
Much has happened in
the short time since that
review was published. The
effects of the US sub-prime
housing market have now
exploded into the full and
robust global financial
crisis that looms large in all
of our economies and in
our industry. As the crisis
deepens further, as it will,
our economies will not be
immune and neither will our
ports. Shipping and ports


CARIBBEAN MARITIME I JANUARY APRIL 2009 47






AL A MATTER OF LAW


are not recession-proof.
To be simplistic, the
financial crisis has, as a
main ingredient, a shortage
of credit; which perforce
causes a slowdown in the
trade of goods and serv-
ices; which translates into a
decline in demand for sea-
borne transportation; which
includes, of course, a decline
in the demand for shipping
and port usage. Since the
global financial crisis began,
there has been a dramatic
decline in economic activity
worldwide and forecasts for
growth across the world's


economies have been uni-
formly adjusted downward.
To quote the IMF World
Economic Outlook, released
on 8 October:
"The world economy is
entering a major downturn
in the face of the most
dangerous financial shock


in mature financial markets
since the 1930s. Global
growth is projected to slow
substantially in 2008 and a
modest recovery would only
begin later in 2009."

Impact
This slowdown in global
growth will have a nega-
tive impact on the shipping
industry and will continue
to affect us as the crisis
deepens. The demand for
seaborne trade is in direct
proportion to global growth
and resultant consumer
demand. Therefore, the pre-


dicted fall-off in both, which
has already started, requires
that the shipping industry,
like so many others, should
urgently examine its new
reality and plan for the chal-
lenging times ahead.
When one considers
that the review asserts that


"in 2007, 63.2 per cent of
goods loaded in the world
originated in developing
regions, while 46.2 per
cent of world's shipments
were unloaded at ports in
developing countries", the
implications of a contrac-
tion in shipping demand
for developing countries is
obvious.
In planning for those chal-
lenging times, the industry
must also plan for the inevi-
table recovery. To be sure,
no-one can predict exactly
when that will be. The rapid
changes in economic condi-


tions make it even harder to
predict how long, deep and
extensive the crisis will be.
Consider, for example, that
the very assumptions under-
lying the IMF World Eco-
nomic Outlook have already
changed and some of the
consequent predictions no


longer hold. Also, some of
the plotted trends in the
review have been undone.
Consider further that, at any
give moment, one of the key
pieces of good news, the
decline in oil prices, could
change with an outbreak of
new or old hostilities in
any one of several sensitive
regions.

Dynamic
We are dealing with an
extremely dynamic situa-
tion. Yet despite all that, the
recovery is inevitable and
those who will do best are
those who are able to simul-
taneously plan for the worst
and ride out the storm while
laying new foundations for
success in the world that will
emerge.
We will need all our skill
and bold determination
- and a little luck. m


Milton Samuda is the
Marine Partner in the
Jamaican law firm
Samuda & Johnson


48 CARIBBEAN MARITIME I JANUARY APRIL 2009


This slowdown in global growth will have a
negative impact on the shipping industry and
will continue to affect us as the crisis deepens
















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WArtsili Carbbean: Tel. +1 787 701 2288, Fax +1 787 701 2211
Wirtsilr Dominicana Tel. +1 809 564 7184, Fax +1 809 372 7968


WARTSILA




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