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Caribbean maritime
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Permanent Link: http://ufdc.ufl.edu/UF00099408/00014
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Title: Caribbean maritime
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Language: English
Publisher: Land & Marine Publications Ltd.
Place of Publication: Colchester Essex, England
Creation Date: October 2011
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Holding Location: University of Florida
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No. 14 I OCTOBER DECEMBER 2011 MEGA-SHIPS IMPLICATIONS OF SIZE CRUISE CRUISE & LUXURY YACHTS & LUXURY YACHTS PORTS THE DILEMMA FACING LATIN AMERICA AND THE CARIBBEAN PLIPDECO CELEBRATING 45 YEARS THE PORT OF BRIDGETOWN: CELEBRATING 50 YEARS OF SERVICE

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5 The Port of Bridgetown Celebrating 50 years of service No. 14 I OCTOBER DECEMBER 20118 Barbados cruise port Upgrading of facilities and services planned11 CSA Album General Council in Guadeloupe14 CSA in conference The 10th annual Caribbean Shipping Executives Conference held in Guadeloupe, May 201116 PLIPDECO Celebrating its 45th anniversary...18 Port of Jacksonville Upgrading to receive post panamax ships 20 Jamaica Four cruise destinations on one coast22 Mega yachts Miami River hosts mega yachts24 Freeport Harbour Set for a soaring future27 Martiniques Hub Carabe project A new future for the port28 Caribbean ports The dilemma facing Latin America and the Caribbean32 Cruise Cuba Cruise shipping in Cuba33 Cruise challenge Summer remains a challenge for cruise tourism in the Caribbean36 Erica Luke Indomitable shipping executive42 Panama Canal expansion Canal builders pioneer new exible water barrier 1CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 2 Editorial We should not repeat the errors of the past3 Message from the CSA President Skilled and capable staff spells success39 Grapevine 44 BridgeView A love-hate symbiotic relationship46 The Human Factor The future of middle managers in an emerging organisation47 A Matter of Law Mega-ships: Implications of sizeSTANDARD FEATURES CONTENTS COVER STORY SPECIAL FEATURES 42 14 22 5Views and opinions expressed by writers in this publication are their own and published purely for information and discussion, in the context of freedom of speech as guaranteed by our democracies. They do not necessarily represent the views and opinions of the Caribbean Shipping Association. The Editor.Cover image Barbados Port Inc.

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2CARIBBEAN MARITIME No. 14 I OCTOBER DECEMBER 2011 When sail gave way to steam, Caribbean ports were hardly ready. Old wooden wharves were still in place and gear for loading and discharging cargo was rudimentary. Loading of export bananas, for example, was accomplished largely with manual labour. Twentieth-century steamships carried more cargo, were more expensive to operate and called more frequently. All this pointed to a need for faster, more efcient port operations. High xed costs caused shipping lines to lose money when the ship was stationary. Ships needed to discharge cargo and be on their way as soon as possible, so ports had to be mechanised. The old ways of manual labour had quickly become outdated. Regional ports were caught atfooted, totally unprepared for the aggressive resistance to mechanisation mounted by port workers and their trade unions. Cruise business is a relatively new sub-sector. However, the huge cruise ships which now overwhelm small Caribbean ports with their size and large volume of passengers did not simply appear overnight. Mega cruise ships brought more than 900,000 passengers to the Caribbean in 1983. In the next 10 years the volume of passengers had more than doubled to more than 2 million. Over the next 15 years the business expanded rapidly. In 2009 more than 13 million cruise passengers arrived, according to the Florida-Caribbean Cruise Association. The high volume of passengers now visiting the Caribbean and the dramatic increase in arrivals over 25 years are readily explained by the increased size of the ships. Cruise ships today are carrying four and ve times more than their forerunners. A similar situation is faced by the cargo sub-sector. The Panama Canal had to be expanded for this reason. Most of the Caribbeans ports cargo and cruise were clearly not ready for this massive increase in ship size in so short a time. The ships being built now are even bigger. Milton Samuda asks the very pertinent question: Just how massive will the ships of the future be? (A Matter of Law, Page 47). Its one to ponder, not just for trivias sake, but for issues of development and for the complexity of implications. Increased legal risks, the threat to the environment and catastrophic disasters of greater scale due to the large volumes of cargo now carried are issues which must be addressed as a matter of urgency, even as we tread water, waiting out the global recession. This 14th issue of Caribbean Maritime again looks at the cruise industry and luxury yachts. Cargo shipping is the mainstay of the regional shipping industry; but cruise ships are very important port users. Cruise business is vital for Caribbean development, providing we are prepared and responsive, diligent enough to plan and manage sustainable growth and smart enough to safely exploit the opportunities this sub-sector provides. To be sure, we should not repeat the errors of the past; of not being ready and prepared for change and modernisation. This edition of Caribbean Maritime joins with the CSA president in saluting Barbados Port Inc on its 50th anniversary of service and the Shipping Association of Barbados for its 30 years of leadership in the development of the Barbados maritime sector. MIKE JARRETT, E DITOR WE SHOULD N OT REPEAT THE ERRORS OF THE PASTEDITORIAL The ofcial journal of the Caribbean Shipping AssociationMISSION STATEMENTTo promote and foster the highest quality service to the maritime industry through training development; working with all agencies, groups and other associations for the benet and development of its members and the peoples of the Caribbean region. GENERAL COUNCIL 2010-2011 President: Carlos Urriola-Tam Vice President: Grantley Stephenson Immediate Past President: Fernando Rivera Group A Chairman: Michael Bernard Group A Representative: Rhett Chee Ping Group A Representative: Roger Hinds Group A Representative: Glyne St Hill Group B Chairman: David Jean-Marie Group B Representative: Linda Projt-del Prado Group C Chairman: Cyril Seyjagat Group C Representative: David Ross Group D Chairman: John Abisch Director Information and Public Relations: Michael S.L. Jarrett Caribbean Shipping Association 4 Fourth Avenue, Newport West, PO Box 1050, Kingston C.S.O, 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: Land & Marine Publications Ltd 1 Kings Court, Newcomen Way Severalls Business Park, Colchester Essex, CO4 9RA, UK Tel: +44 (0)1206 752902 Fax: +44 (0)1206 842958 Email: publishing@landmarine.com www.landmarine.comcaribbean shipping association

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3CARIBBEAN MARITIME I OCTOBERDECEMBER 2011 PRESIDE N TS M ESSAGE Skilled and capable staff spells successAs we present this 14th issue of Caribbean Maritime there is discus sion about the state of the world economy and whether we are, in fact, pulling out of the global recession. Recall how every positive indicator a year ago was being grabbed by optimists and presented as proof that we are pulling out of the worst recession since the Great Depression. Today, more than a year since journalists and econo mists started writing that there were indications that we had seen the worst of it, the discussion has shifted. Not only are our economies still not in very good shape, but the discussion is no longer about how close is a recovery, but rather whether we have entered a new recession. Are we in a second recession or is the rst one still alive and well? Are we in a double dip? Many in the Caribbean did not experience a spike in production, sales or revenues in 2010, so the idea that this is a second dip of the graph may not reect reality for everyone. For most it has been one long dip. I had previously warned CSA members to be wary of a tendency to talk about recov ery before there were actual signs that new growth was sustainable. There is work still ahead in the continuing proc ess of making our operations, systems and human resources more efcient in order to deal with the real recovery, when ever it arrives.TrainingI keep coming back to the business of human resource development. It is important for us to understand that, no matter how much is spent on capital equipment and infrastructure development, it is training that will guarantee that you get what you have paid for. Skilled and capa ble workers can be created through effective training. A skilled and capable staff spells success. So even as we seek to expand, develop and build, in anticipation of the completion of expansion of the Panama Canal, lets not lose sight of the fact that it is your people that will make all the investment in expansion and retooling worthwhile. At the CSA we have been constantly reviewing our sys tems and operations in deal ing with the recession. The association is a not-for-prot service organisation, commit ted to the process of regional development. Our training programmes and activities have felt the brunt of the recession, even as our mem bers struggle to survive. On the positive side, the Interim Management Committee, which I appointed following the resignation of our General Manager at the end of July, has been working like a welloiled machine and, in col laboration with our members in Barbados the Shipping Association of Barbados and Barbados Port Inc has made great strides in planning the 41st Annual General Meeting in Bridgetown. In this regard and in anticipation of a truly great conference in Barbados, October 10, 11 and 12, I would like to congratulate the team, headed by IPP Fernando Rivera, for its work in planning this event. I must also document congratulations to Barbados Port Inc, which is celebrat ing 50 years of service to the Barbados nation; and the Shipping Association of Bar bados, which is celebrating 30 years of supporting devel opment of that countrys shipping industry. The CSA, itself celebrating 40 years of service to the Caribbean and Latin American region, recognises the efforts and achievements of these two Barbados organisations and salutes those whose leader ship made it all possible.Carlos UrriolaPresident, Caribbean Shipping AssociationIt is training that will guarantee that you get what you have paid for

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The P o rt of Bridgetown:Celebrating 50 years of serviceA new era in the history of Barbados began with the construction of the Deep Water Harbour, opened on May 6, 1961 by then Prime Minister of the West Indies Federation and former Premier of Barbados, Sir Grantley Adams. Since that time, this national facility has expanded into the bustling Bridgetown Port a driving force of the Barbados economy and a vital economic asset of this vibrant Caribbean nation. Bridgetown currently handles each year, on average, more than 1 million tonnes of cargo, 88,000 teu of containers, 50,000 barrels of personal effects and, in 2004, over 800,000 cruise ship passengers.Effect of constructionDuring the four-year construction phase that began in 1957, Pelican Island, 600 yards off the coast, was joined to the mainland. Over 90 acres was reclaimed from the sea to create the Deep Water Harbour. Until the 1940s, Pelican Island had served as a quarantine station, processing Barbadian nationals, crew members and passengers from ships that had crossed the Atlantic. Before the harbour was constructed, ships coming to Barbados anchored in Carlisle Bay and their cargo and passengers were transported to the wharf by lighters manned by local workers. The new harbour therefore displaced hundreds of lightermen; but the government set aside EC$1,750,000 to relieve the plight of those displaced and some 600 were re-employed when operations commenced at the new facility. In its rst year of operation, the port handled about 175,000 tonnes of cargo. In response to business demand about 15 acres of additional land was reclaimed in 1978. New infrastructure was put in place including additional roadways, an expanded container park, commercial Shed 4 and the Shallow Draught Facility. For the rst time since construction, the inner harbour was dredged in 2002 to accommodate the mega cruise ships then being built. The dredged material was used to add nine more acres to the ports land inventory.Administrative changesThe port has seen a number of administrative changes over the past 50 years. Originally administered as Port Contractors Ltd, the Barbados Port Authority was established in 1979 as a statutory board. At the end of 2004 the organisation was incorporated as Barbados Port Inc, registered under the Companies Act of Barbados. During this 50-year period, only two general managers have been at the helm. Peter Parker, the third president of the Caribbean Shipping Association, led the change The modern Bridgetown Port, with Kensington Oval in the backgroundAerial view of Pelican Island o Barbados circa 1957 5CARIBBEAN MARITIME I OCTOBER DECEMBER 2011BRIDGETOWN

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from Port Contractors Ltd to the Barbados Port Authority. In 1994 Everton Walters was appointed and he presided over the conversion in 2004 to Barbados Port Inc.Infrastructural upgradesFollowing a study in the 1990s which indicated that the city of Bridgetown was coming to a crossroads, the port, in order to meet the needs of the 21st century, embarked on a Reform and Expansion Project to upgrade its human resources pool, improve its technology and security, renovate its infra structure and expand its core businesses of cargo handling and the cruise sector. Most visible has been the work on Trevors Way, the area leading to the main entrance of the port. This has been upgraded and landscaped and a new revetment constructed. The container yard has been repaved, water mains replaced, new fendering installed, the Cross Berth repaired, Berth 4 extended and the new Berth 5 completed.Institutional measuresBecause of the high cost of the project, the port has been forced to take a hard look at complementary insti tutional measures, necessary to ensure a regime of cost and operational efciency. Similarly, to ensure that there is both trust and con dence in its industrial rela tions, the company continued to emphasise and value its relationship with the Barbados Workers Union. This corporate attitude created a pathway for the introduction of muchneeded port reform and ef ciency initiatives, with minimal dislocation or work stoppage.Aiming to be Best in ClassThe Best in Class designa tion refers to being the best among regional ports with similar land size and opera tions. Bridgetown has won the CSA Port of the Year Award six times, between 1992 and 2003; several awards as an outstand ing cruise destination and multipurpose port; and the Novaport Cup from the Port Management Association of the Caribbean for Most Improved Port Performance for two consecutive years (2009 and 2010) and the port continues to strive to improve on its performance. There has been an emphasis on communication through enhanced ICT to ensure that maritime trade in Barbados is efcient and competitive. The eManifest was introduced in 2008 making it easier for shipping agents to submit information and disposition lists by way of the internet before the cargo arrives. Operations at the cargo sheds were com puterised and the movement and storage of breakbulk cargo was monitored elec tronically. The KleinPort CS comprehensive port manage ment system was introduced in 2011 and will help to improve overall operations and customer service. Efforts by the port to develop cruise ship homeporting were recognised by Dreamworld Magazine in 2007, which recognised Barbados as the Best Turnaround Destina tion. This award took into con sideration the airlift and airport capacity, transport link, ground handling, hotel stock, tourism appeal and seamless transfers to and from the seaport. In addition to the ports obligations under the Inter national Ship and Port Facility Security (ISPS) Code, the experience with Cricket World Cup 2007 resulted in the inte gration of the ports systems into regional and national plans, to ensure a top quality security regime in the port. These measures were com bined with extensive training of security personnel. The purchase of the new 5,200 hp tug Barbados II and a new pilot launch Carlisle Bay has enhanced the servic ing of vessels berthing at Barbados. And the gantry crane has been refurbished to ensure smooth cargo throughput.The way forwardThe port administration plans to create additional facilities and services in the cargo sector. These will include extending Berth 5, installation of a panamax gantry crane, replacement of the equipment eet, construction of a central container examination facility for Customs, and paving of an additional ve acres in the container park. A risk management assessment of the ports health and safety policy is under way so as to provide specially tailored programmes for all port employees and an intensive training programme is being implemented. In addition, an on-site medical facility, staffed by two indus trial nurses, handles workers health matters. Port staff must undergo an annual medical check-up. There are also plans to ensure consultation with stakeholders through a revived Port Facilitation Com mittee. And a comprehensive customer service programme is being implemented to ensure quality service to all the ports customers. Barbados Port Inc has embarked on a proactive approach to managing the challenges as the port looks to the future. The efciency gains and improved service to stakeholders and port users should serve the island nation of Barbados well into the future. 7CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 BRIDGETO WN Construction in progress on the Deep Water Harbour in the late 1950s with Pelican Island in the backgroundBarbados Port Inc. has embarked on a proactive approach

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The government of Barbados has announced plans to build a cruise facility in Bridgetown. In October last year Caribbean Maritime indicated there were reports of plans in Barbados to build a port facil ity dedicated to the cruise industry. The countrys Minister of International Trans port, George Hutson, has now ofcially conrmed this. In his speech at the 50th anniversary staff awards of Barbados Port Inc on 10 September, Mr Hutson said: The government has embarked on plans to reform the cruise facilities in Barbados. If we are going to remain relevant, if we are going to capitalise on the opportuni ties available from cruise tourism, we must renew our plant from the basic infrastructure currently existing to one which will accommodate and service the increasingly large cruise ships, address ing the aesthetic image of the facilities, the shopping and entertainment struc ture for cruise passengers. The new cruise project will include dedicated cruise berths, reclamation of land for new commercial retail development, new home-port facilities, ground trans portation support, space and facilities. Port and Ministry of Tourism authori ties had already announced plans for a US$100 million dedicated cruise pier that could accommodate simultaneously two mega ships. This pier is expected to berth its rst cruise ship in the latter part of 2012. Apart from this information, previously reported and perhaps now outdated, details about the project have been closely guarded, as the Barbados government carries out due diligence. The Minister did tell his audience, which included Barbados Port Incs chairman, B ARBADOS CO MM ITTED TO BUILDI N G CRUISE PORT upgrading of cargo facilities, services also plannedBARBADOS CRUISE8 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011By Mike JarrettB ARBADOS IS A PRI M ARY CRUISE SHIP DESTI N ATIO N

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David Harding, that, to complement the work in the cruise industry, the port would create additional facilities and services in the cargo sector. These will include extending Berth 5, installation of a crane, replace ment of equipment eet, construction of a central container examination facility and paving of an additional ve acres. As chairman of Barbados Port Inc, David Harding must know something about the details of the project, but he is not saying. He did conrm, however, that the facility would be built and that it would be attractive. Barbados Port is committed to the full separation of cruise and cargo by way of creating a dedicated and attractive cruise facility, Mr Harding said, adding that when the new development is operational, berthing delays suffered by cargo ships during the cruise season will become a thing of the past. At the same time it is also developing a Port Master Plan that would enhance the more efcient han dling of cargo, among other things. Utterances from the Minister as well as the port chairman, although guarded, spell exciting times for the port of Bridg etown, which has been essentially two ports on one footprint: a cruise port by day and a cargo terminal by night. Yet, despite the split personality and inevita ble compromises, the port of Bridgetown has been a leading port in the region, winning the CSA Port of the Year Award in 1995, 1997, 1998, 2004 and 2005.CRUISE LINESShips from some 30 cruise lines call at Barbados including Carnival, Celebrity, Cunard, Princess, Royal Caribbean, Star Clippers, Sun Cruises, Windjammer and Wind Star. The list also includes Club Cruises, Costa Cruise Line, Festi val Cruises, Holland America Line and Orient Lines. Carnival, Celebrity Cruises BARBADOS CRUISE and Royal Caribbean International lines use Barbados as home port. Indeed, Minister Hutson wants to make Bridget own the leading cruise destination in the southern Caribbean. The potential benets of this project reinforce the policy position towards the development of Barbados as a cruise tour ism hub and to reposition the country as the leading cruise destination within the southern Caribbean.

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11CARIBBEAN MARITIME I OCTOBERDECEMBER 2011 CSA ALBU M GENERAL COUNCIL IN GUADELOUPE(1) CSA President, Carlos Urriola (left) and Vice President Grantley Stephenson; (2) David Ross (right), Group C member; (3) Cyril Seyjagat (left), Group C chair; and, Michael Bernard, Group A chair; (4) Rhett Chee Ping, Group A representative; (5) Glyne St. Hill (left), Group A representative; and, former General Manager, Clive Forbes; (6) Michael Bernard; (7) David Ross and Cyril Seyjagat; (8) Roger Hinds (left) Group A representative and Grantley Stephenson; (9) Fernando Rivera (left) Immediate Past President; Glyne St. Hill and Roger Hinds; (10) David Ross; (11) Carlos Urriola; (12) Fernando Rivera (13) Grantley Stephenson (14) CSA GENERAL COUNCIL 2010-2011: (left to right) Fernando Rivera, Glyne St. Hill, Roger Hinds, Grantley Stephenson, Carlos Urriola, David Ross, Cyril Seyjagat, Michael Bernard, Linda Projt (Group B representative) and Rhett Chee Ping. Absent from photograph: David Jean-Marie, Group B chair; and, John Abisch, Group D chair. (Continued on page 13) 1 2 3 5 6 4 7 Mike Jarrett photos

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13CARIBBEAN MARITIME I OCTOBERDECEMBER 2011 CSA ALBU M 8 10 12 9 11 13 14Mike Jarrett photos

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CSA I N CO N FERE N CE14CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 1 2 3 4 6 5

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15CARIBBEAN MARITIME I OCTOBERDECEMBER 2011 CSA IN CONFERENCEThe photos in this album were taken during the 10th annual Caribbean Shipping Executives Conference held in Guadeloupe, May 16-18, 2011 (1) Juan Carlos Croston of Manzanillo International Terminal; (2) Grantley Stephenson, CSA Vice President and CEO of Kingston Wharves Ltd; (3) Ricky Skerritt, Minister of Tourism and International Transport of St. Kitts and Nevis and Chairman of the Caribbean Tourism Organisation (CTO) (left) and CSA President Carlos Urriola; (4) Sabine Dorrifourt-Bajazet (2nd right) and part of the Guadeloupe conference team; (5) Real-time language translation was provided throughout; (6) Journalist Julian Rogers (left) takes an audio sound byte for broadcast; (7) Scott Veira, Trustee, Shipping Association of Barbados; (8) Gerard Petrelluzzi (left) former CSA General Council member and compatriot Louis Collomb, Vice President of UMEP Guadeloupe; (9) Glyne St. Hill (centre) CSA General Council member and IPP of the Shipping Association of Barbados serves as moderator of the session on Transshipment outlook for the Caribbean Terminal Operators Perspective, addressed by Juan Carlos Croston (left) of MIT and Hector Tamburini of DP World Caucedo, Dominican Republic; (10) President of the Shipping Association of Barbados, L. Marc Sampson gives a preview to plans for the 41st Annual General Meeting; (11) Frank Wellnitz (left), Director of Caribbean Feeder Services addresses issues of cargo movement in the region. (12) SILVER CLUB HELPING TO BUILD CSA TRAINING TRUST FUND: Treasurer of the CSAs Silver Club, Emerson Alleyne (left) presents US$2,000 to CSA President Carlos Urriola, part proceeds from the Silver Club Roast. This annual event has allowed the Silver Club to make a signicant contribution to the CSAs training initiatives across the Caribbean. 7 11 12 10 9 8Mike Jarrett photos

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Celebrating 45 years in September 2011, the Point Lisas Industrial Port Development Corpora tion Ltd (PLIPDECO) has unveiled development plans that include a capital expansion of its facilities. The Trinidadian facility is looking to benet from the expansion of the Panama Canal; the continued rapid growth of the Brazilian economy; the increased potential for regional trade; and the handling of larger ships. Plans include: A strong employee devel opment programme to estab lish a results-driven culture Procuring additional handling equipment Greater corporate empha sis on health, safety and protecting the environment Investment in technology upgrades Provision of additional value-added logistics services. Major capital expansion works of both the estate and the port are due to start within the next decade, says PLIPDECO. The medium to long-term plan for the port includes the phased develop ment of six new container berths. Phase 1, the construc tion of two container berths, is to start in 2014. Undeveloped estate lands have already been earmarked for the development of logis tics services. Point Lisas handles over 45 per cent of the countrys domestic container trade and 90 per cent of its breakbulk trade. Volumes of containerised cargo volumes almost tripled between 2000 and 2010. PLIPDECO operates two lines of business:POINT LISAS INDUSTRIAL ESTATETrinidad and Tobago is the worlds largest exporter of methanol and ammonia and the largest exporter of liqueed natural gas (LNG) to the United States. The 860 hectare Point Lisas Industrial Estate facilitates these trades. It has 103 tenants: large pro -PLIPDECO U N VEILS DEVELOP M EN T PLA N SPLIPDECO16 CARIBBEAN MARITIME I OCTOBERDECEMBER 2011UNDEVELOPED ESTATE LANDS HAVE ALREADY BEEN EARMARKED FOR THE DEVELOPMENT OF LOGISTICS SERVICES Celebrating its 45th anniversary...ducers of ammonia, metha nol, urea and steel; smaller manufacturers; and service industries. Altogether, these companies employ more than 12,000 people.PORT POINT LISASBuilt to support the develop ment needs of the industrial estate, Port Point Lisas has grown into a 24-hour facility handling bulk, breakbulk and containerised cargo. Its facili ties and systems include: Five berths. One dedicated to container operations has a maxi mum draught of 11.5 metres Two post panamax shipto-shore gantry cranes Six rubber-tyred gantry cranes 23 tractor trucks and other back-up equipment NAVIS terminal operating system.

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Jaxports executive direc tor, Paul Anderson, has had the rare opportunity to see the maritime indus try of the USA from four often-competing sides. A former Federal Maritime Commissioner from 2003 to 2008, Anderson spent 10 years with JM Family Enter prises, a diversied automo bile business that is one of Jaxports top tenants, import ing thousands of Toyota and Lexus vehicles through the port each year, then prepar ing them for distribution throughout the South-East. Anderson also served as a senior director of Seabulk Marine Services, Inc, of Fort Lauderdale, Florida. And, just before his recent appoint ment at Jaxport (see Carib bean Maritime May 2011) he was both a Senior Fellow of the Transportation and Infrastructure Committee in the US House of Representa tives and president of the International Oil Shipping Company based in Boca Raton, Florida. A graduate of the Uni versity of Florida and the Senior Managers in Govern ment programme at Harvard Universitys John F. Kennedy School of Government, Andersons early career was in politics and included a stint as aide to former Florida Senator Paula Hawkins. Today, Jaxports tall, con dent and articulate executive says the number one lesson he has learned from this varied experience is that to succeed and sustain growth, a seaport such as Jaxport must be run more like a business than a political subdivision. It is a very exciting time to be in this industry, Anderson said when asked about the new role. It is truly different to be in the private sector again.And what is the difference?We at the port have to behave like we are a busi ness. We have to offer the very best customer service. He said the benets of improving customer service through improved infra structure were clear to the Jacksonville community, but not so clear to the decisionmakers among the budget leadership of Congress. We at Jaxport are hon oured to serve a community that understands the value of our nations ports, said Anderson. Studies show, and our community is aware, that every dollar invested in port facilities is returned sev enfold. But all the port com munities ought to be aware of the outdated, bureaucratic processes that our country has tied itself to in funding our national critical infra structureand it is strangling our countrys ability for capacity-building and holding back job creation. Washington veteran Anderson recently hosted Department of Transporta tion Secretary Ray LaHood in a bid for federal funding for key projects. At the top of the list is the $37 million re-engineering of the tidal ow where the St Johns River encounters the maximum turbulence at the Mile Point junction with the Atlantic Intracoastal Waterway.VesselsThere, large vessels under tow cannot safely manoeuvre for large parts of the day, constraining arrivals and departure times for alreadytight cargo ship schedules. The situation demands either idle work hours or expen sive overtime for the upriver union stevedores and crane operators awaiting the arrival of vessels. Locals built a training wall at the Mile Point more than 100 years ago to train the powerful cross-currents to stay in the navigational chan nel. The US Army Corps of Engineers began monitoring the area in the early 1930s. The training wall makes the area impassable for ships with a draught greater than 33 ft trying to navigate to the Port of Jacksonville, about half of the day, when the tide is retreating. Army Corps ofcials say the proposed x would make the area pass able 24 hours a day. The proposed x involves removing 3,000 ft of a 6,000 ft training wall and relocat ing 2,050 ft of it to the east of the existing wall. The proposal is the result of seven years of studying at least seven alternatives, according to Army Corps documents.Jacksonville upgrading to receive post panamax shipsJACKSONVILLE18 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011By Rick Eyerdam Florida port looks forward to hosting CSA in May 2012 We at Jaxport are honoured to serve a community that understands the value of our nations ports

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JACKSONVILLE The study is only one part of a process that will take years, according to Ander son. He said success in xing the ow problem rested in part on the continued sup port of the Duval County delegation; its citizens, who have written thousands of letters to Congress; and the support of Congressman John Mica, who chairs the key authorisation committee.DelegationOur entire community and Congressional delegation from the governor on down are focused on getting the needed funding, he said. But we still must get Con gress to authorise the project and that can only be done through a Congressional water bill. The problem, he said, was that Congress had passed no water bill since 2007 and there was little chance there would be a water bill in this Congress. Anderson said the delays on Mile Point had not frus trated the ports efforts to use any resources available to improve services. When we welcome the Caribbean Shipping Associa tion next May for their rst meeting in Jacksonville, we will have a lot of positive things to show them, said Anderson. And we are very excited to have them here in 2012.ProcessHe went on: We are in the process of doing the Blount Island upgrades to both the bulkheads and the rail. And that is another of the challenges facing Americas ports. Like Blount Island, port terminals across the country have ageing infrastructure, while bulk cargoes that move across the terminals are heav ier and larger than the ones for which they were originally designed. Also on the horizon is a new set of post panamax cranes for the Talleyrand Terminal with a capacity of 100 tons and a reach across 18 containers. This will increase our abil ity to handle with alacrity the post panamax ships that cur rently call through the Suez services, said Anderson He said negotiations were progressing with Jacksonville-based CSX for rail services to accommodate the TraPac Terminal and the planned Hanjin Terminal at Dames Point. We have a very good partner in CSX and we are preparing a Tiger 3 grant application to help with the funding, said Anderson. To enhance velocity and throughput you have to have that on dock rail.

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JA M AICA20 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 For years Jamaica promoted itself as the Caribbean destination with three distinctly different cruise shipping destinations Montego Bay, Ocho Rios and Port Antonio. But everything changed this year when the sleepy 18th century Georgian town of Falmouth opened its brandnew 21st century port. Falmouth has increased the number of ships coming to Jamaica from 180 in the rst half of 2010 to 202 in the correspond ing period this year. The number of pas sengers also increased, from 482,607 up to 30 June 2010 to 562,248 in the same period of 2011. If Jamaica keeps this up, it should improve on the 908,000 cruise passengers who arrived in 2010 and could even exceed the 1,170,000 of 2007. Here is a glance at the four cruise ports which make Jamaicas north coast one of the busiest stretches in the Caribbean cruise business.MONTEGO BAYCruise ship calls to Jamaica in the modern era may have started in Kingston, but the cruise sector became big business when Montego Bay became the destination of choice for the emerging cruise lines. The Montego Bay cruise ship pier is located at Montego Freeport, a few miles outside the city centre. The port area is uninspiring, clearly in need of upgrading and modernisation. However, it is just a ve-minute drive into the smaller of Jamaicas two cities. Montego Bay has suffered a decline in cruise ship calls in recent years. In 2007 a total of 154 cruise ships brought 415,000 passengers to this north coast city. How ever, in a matter of three years this trafc had slowed signicantly to 120 ships (down 22 per cent) bringing 299,000 pas sengers (down more than 27 per cent). In the rst six months of this year Montego Bay received 60 cruise ships and 136,000 passengers, compared with 70 ships and 161,000 passengers in the corresponding half-year of 2010. The decline continues. However, as MoBay is only 20 minutes from the new port at Falmouth, its attractions remain popular and the citys famous Jimmy Buffetts Margaritaville Bar is considered by many an experience not to be missed. Most of the leading cruise lines call at Montego Bay, including Carnival Cruises, Royal Caribbean Cruises, Celeb rity Cruises, Princess Cruises, Holland America Cruises, Costa Cruises, MSC Cruises and P&O Cruises. And despite the advances and beauty of other cruise des tinations in the region, MoBay is still an important port of call on their itineraries.FALMOUTHOne of the newest destinations in the Caribbean, the port of Falmouth has been in operation only since February of this year. Already it is the second-largest cruise destination on Jamaicas north coast, receiving 48 cruise ships and 181,500 passengers up to 30 June. While a representation of this Georgian town has been built around the port area specically for cruise ship arrivals, in the background the real old town of Falmouth, capital of Trelawny parish, has been reinvigorated by the development. Property prices have been increasing and restorations and upgrad ing of facilities are in evidence. There is little to do in the old town itself, but new attractions are begin ning to show. A heritage tour, which allows tourists to walk and experience this historical town, is one of the newest attractions. Even newer is a pirate ship called Captain Hook. The US$120 million port is a joint venture development project between the Port Authority of Jamaica and Royal Caribbean Cruises International. The pier is the only one in Jamaica that can accommodate the new Oasis class of mega cruise vessels. At 20 storeys tall and 1,187ft in length, the Oasis of the Seas can carry 6,300 passengers and 2,300 crew altogether signicantly more than Falmouths population of about 7,500. Ships currently calling at Falmouth include Navigator of the Seas, Freedom of the Seas, Allure of the Seas and Oasis of the Seas, all from Royal Caribbean. Ships from Holland America Cruises calling at Falmouth include the Maasdam, Eurodam, Rydam, Westerdam and Veendam.OCHO RIOSMost cruise ships in Ocho Rios dock at the purpose-built pier, but others dock at the Reynolds bauxite pier next door. The Rey nolds pier, while an eyesore, with adjacent buildings and facilities stained red with bauxite dust, earned some fame because of a ght scene on the steel sea horses that serve as loading mechanisms featur ing in the 1962 lm Dr No, which starred Sean Connery as James Bond. Like Montego Bay, the Ocho Rios port is also in somewhat of a decline, especially since the advent of the Falmouth port. In 2007 the port received 275 ships and 750,000 passengers, compared with 201 ships and 607,000 passengers in 2010. By Ricky BrowneJ A M AICA: F OU R C R UISE DESTINATIONS ON ONE COASTOcho Rios

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JA M AICA In the rst six months of 2010 Ocho Rios received 107 cruise ships and 320,000 passengers, but has received only 92 calls in the corresponding period this year and 243,000 passengers. It is estimated that this year the port will receive only about 400,000 passengers (34 per cent fewer). Recently, only one ship has been arriv ing each week. From being the busiest of Jamaicas cruise ports, Ocho Rios is now under pressure of decline. Over the last decade, the cruise busi ness has brought a resurgence of attrac tions. In the past, Ocho Rios had one major attraction, Dunns River Falls. Today, other attractions include a dolphin park, a bus trip to Bob Marleys birthplace, a canopy tour and a Cool Runnings inspired bobsled ride. Recently, Ocho Rios has been receiving only ships from Carnival, but a long list of cruise lines have called in the recent past, including Royal Caribbean Cruises, Carnival Cruises, Princess Cruises, Norwe gian Cruise Line, Celebrity Cruises, Costa Cruises and Holland America Cruises.POR T ANTONIOPort Antonio was Jamaicas rst real tourist destination and cruise ship port, when banana boats started to bring passengers from the USA more than a century ago. Port Antonios heyday is long gone, but there has been a revitalisation of the towns port. The Port Authority of Jamaica under took the development of what is now the Errol Flynn Marina at West Harbour, with its 32 slip facility for large yachts. The refurbished Ken Wright cruise ship pier, which adjoins the marina, can handle only small to medium-sized boutique ves sels up to 660 ft in length limited by the size of the channel leading to the pier. This has the positive side-effect of safeguard ing the towns image as an exclusive ecotourism destination catering to a totally different market segment. Among the vessels that have visited or are expected to visit are the Zenith, Windsurf, SeaDream II, Saga Ruby and Regatta. Port Antonio is by far the smallest of the four ports. From welcoming 13 ships and 7,099 passengers in 2008 it received only three cruise ships and 766 passengers last year. Up to 30 June this year it received just two ships and 688 passengers. The situation is so poor that Port Antonios citizens could be forgiven for thinking that cruise shipping no longer exists and that Jamaica is fast on the way to becoming a three-port destination once again. Falmouth

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At least once every four years, yachts must nd a boatyard with sufcient lifting capacity and qual ity workmanship to tweak the running gear, repaint the hull, add the latest in electronics and occasion ally, as was the case with the Golden Odyssey, add a few metres in length to accommodate some new interior design concept that pleases the owner. Only a few locations on the Atlantic coast offer the mix of mega size haul-out and top quality workmanship. And even fewer offer both within walking distance of the hottest destination in America today: Downtown Miami and nearby South Beach.SPONSORFor years, His Royal Highness Prince Khaled bin Sultan of Saudi Arabia, founder and chief sponsor of the Khaled bin Sultan Living Oceans Foundation, has carried on a tradition of calling at only the worlds nest destinations with his unique Golden Fleet of yachts. Besides his 265 ft Blohm + Voss Golden Odys sey, he has acquired a toy caddy, the Golden Shadow, which carries among its complement a nine-passenger Cessna turboprop Caravan aircraft, folded down below. Since February 2011 the ves sels of the Golden Fleet have adorned the entrance to the Miami River at their berth at the Epic Marina. UNIQUEThe Golden Odyssey alone is the 59th-largest yacht in the world. With its ever-present Golden Shadow tender and its sport sherman shadow, Golden Osprey, the Miami River can claim to be host to the largest and most unique single yacht ensemble in the world.AWARDAnd thats not all. Yacht builder David Marlow, who won an International Superyacht Society green boatyard award for his MIA M I RIVE R HOSTS M EGA YACHTSSouth Beach and dazzling Downtown Miami attract discerning yachtsmen to Miami River and its upscale marinas and boatyardsM EGA YACHTS22 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011By Rick Eyerdam Golden Fleet on the Miami river

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shipyard in China, has purchased the worldfamous Merrill Stevens boatyard on the Miami River where Malcolm Forbess Highlander and Jacques Cousteaus Calypso often called for service. Marlow says he expects to bring the same spirit of quality and environmental stewardship to Marlow Merrill Stevens. UPGRADEThe north yard of Marlow Merrill Stevens has a 500-ton Syncrolift and a 500-ton rail way. Marlow has told friends that he plans to upgrade this facility to 750 tons. The south yard has a 100-tonne Travelift that will be replaced by a 220-ton lift. With the upgrades, says Marlow, the yard will be able to haul 115 ft boats on the south side and 170 to 180 ft boats on the north side. The continued success of Jones Boatyard, Norsemen under Rick Herron, and Merrill Stevens under John Spencer and his crew through this dif cult economic time has dem onstrated that competence and quality can overcome out dated negative impressions, says Phil Everingham. A former Merrill Stevens executive, he has been retained by the non-prot Miami River Marine Group to work with yacht ing and boatyard interests to improve the level of services and co-ordinate booking and crew accommodation at the Miami River facilities. In addi tion to decades of service on maritime-related boards and organisations, Everingham served as senior vice president, general manager and principal at Merrill-Stevens Dry Dock Co until his interest was sold in 2005. He can be reached at: www.marineadvisorygroup.com Rick Eyerdam, a former editor of Southern Boating and Florida Shipper Maga zine, is executive director of the nonprot Miami River Marine Group. 23CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 M EGA YACHTS THE GOLDEN FLEET AT A GLANCEGOLDEN ODYSSEYYear built: 1990 Length overall: 263 ft / 80.2 metres Beam: 41.1 ft / 12.5 metres Draught: 13.3 ft / 4.05 metres Cruising / max speed: 16 knots / 18 knots No of guests: 12 No of cabins: 11 Double cabins: 3 Twin cabins: 6 Single berths: 2 Builder: Blohm + Voss Designer: Alberto Pinto Guest accommodation: Luxury mega yacht charter; 2 x double master staterooms each with dressing rooms and bathrooms en-suite; 1 x double guest cabin with bathroom en-suite; 4 x twin guest cabins with bathroom en-suite; 2 x twin staff cabins with shower room en-suite; 2 x single staff cabins with shower room en-suite. Onboard entertainment: 2 x TV satellite dishes; wide range of satellite channels available from multiple decoders; Kaleidescape video and audio on-demand system; all HD televisions, DVD, 42 inch and 50 inch plasma screens with full Dolby Surround Sound stereo equipment throughout the yacht No of crew: 25 Fuel consumption: 390 litres/hour Air conditioning: Full Communications equipment: 4 x satcoms (2 with internet access, if required); 2 x GSM base stations. Fitted with broadband internet access (1 Mbit download speeds) Tender and toys: Cessna 208 Caravan seaplane with 2 x 675 hp engines GOLDEN EYE 2 x 17 ft Novurania with 2 x 50 hp engines 30 ft Hydrocat with 2 x 170 hp engines GOLDEN SHADOW 38 ft Fabio Buzzi RIB with 2 x 300 hp engines 23 ft Patrick catamaran with 2 x 90 hp engines Yamaha Jet Boat with 2 x 90 hp engines 5 x 1,300 cc Yamaha Waverunners Kawasaki 750 cc jet ski Full diving equipment for 20 pax Double lock diving recompression chamber

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Freeport Harbour has exceeded the original developers expectations but has not yet fullled the present owners vision and master plan. Many developers would be happy to have achieved the level of success attrib uted to the planners, man agers and owners of Free port Harbour. However, the Hutchison team and their partners are unusu ally ambitious and have the audacity to believe they can improve upon FREEPORT HARBOUR SET F O R A SOA R ING F UTU R E that which is in place. As presently congured, Freeport Harbour is the envy of many. It is con stantly changing to meet the demands of its clients, while adhering to Hutchisons core values and the cultural and environmental demands of the port authority and The Bahamas Government. Freeport Harbour Com pany (FHC) has primary oversight of the ports daily operation and implementa tion of the strategic plan. FHC is privately owned and operated through a joint venture between The Grand Bahama Development Company and Hutchison Port Holdings (HPH), a sub sidiary of the multinational conglomerate Hutchison Whampoa Ltd (HWL), one of the worlds leading port investors, developers and operators. DEEPESTFreeport Harbour is one of the deepest and largest in the Caribbean. Over the past few years, vast amounts of lime stone have been removed, creating tremendous depth. In fact, at 52 ft (16.0 metres), Freeport Harbour claims the distinction of being not only the deepest harbour in the Caribbean, but also one of the deepest in the hemi sphere. There is also a huge expanse of sheltered waters, making it one of the larg est man-made harbours in the world. The port has over 2,000 ft of berthing space for wet docking of vessels, with two 900 ft wet docking berths. Vessels with a maxi -24 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011FR EE P O R T HA RB OU R

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25 F R EE P O R T HA RB OU R CARIBBEAN MARITIME I OCTOBER DECEMBER 2011Hutchison Whampoa. Recently, FCP welcomed the mega vessel MSC Brux elles, which has a fully laden capacity of 9,178 teu. With an overall length of 1,104 ft (336.7 metres) and a maxi mum draught of 49.2 ft (15.03 metres) below the waterline, the ship is powered by four diesel engines and can reach a speed of 25 knots. Its carry ing capacity is a breathtaking 18 containers wide across the deck with stacking up to seven containers high. Another popular xture in the harbour is the Freeport Harbour Cruise Facility, used for cruising and day ferry visits. Freeport Harbour can accom modate up to three cruise ships simultaneously. The cruise ter minal has recently been refur bished at a cost of about $20 million to ensure the integrity of its berths. Cruise ships of up to 1,000 ft in length overall can be accommodated. The island of Grand Bahama expects to welcome about 1 million cruise passengers over the next year.IMPRESSIVE VESSELTowage and pilotage services are available 24 hours a day. Last year FHC purchased the pilot boat Nina Anne. built by Gladding-Hearn Shipbuilding in Massachusetts. The Nina Anne is a Jacksonville-class pilot boat, designed to carry up to six pilots. This impressive, fully air conditioned vessel has a 52.5 ft aluminium deep-V hull with a beam of 16 ft 11 in and a draught of 4 ft 8 in. It has two C18 Caterpillar engines of 676 hp and one 12 kW Northern Light generator. The fuel tank carries 700 gal lons, while fresh water capac ity is 25 gallons. The pilot boat is equipped with automatic mum draught of 30 ft can be accommodated alongside. Businesses located at the port are varied but comple mentary in several respects. The entity with the strong est brand in the harbour is Freeport Container Port (FCP). Located 65 miles from Florida, it is strategically placed to serve as a major world container transhipment hub between the Eastern Gulf Coast of the USA, the Gulf of Mexico, the Caribbean, South America and trade lanes to Europe, the Mediterranean, the Far East and Australia. ADVANCED POR T COMPUTER SYSTEMSFCP was ofcially opened in July 1997 and has a total of 140.9 acres (57 hectares) of stacking area; 3,400 ft (1,036 metres) of berths with 50 ft 6 in (15.5 metres) depth alongside; and 52 ft (16.0 metres) depth in the channel and turning basin. FCP has in its inventory nine post pan amax quayside gantry cranes, a Gottwald mobile harbour crane, three empty container handlers and two top lifters. It has 72 straddle carriers and one Megaport straddle car rier, with radiation detection unit, controlled by the Navis operating system. FCP has a total capacity of about 1.5 million teu and offers ship ping lines a 24-hour service with advanced port com puter systems, operational expertise and professional management, coupled with state-of-the-art security and full surveillance. Freeport Harbour is continu ing to expand steadily, accord ing to Gary Gilbert, chief execu tive of HPH, who describes it as one of the proud jewels of

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FR EE P O R T HA RB OU R26 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 identication system (AIS) and global positioning system (GPS) technology as well as two Icom VHF radios, Furuno radar and plotter. There are ro-ro facilities for containers and LTL cargo. The port can accommodate ve ro-ro vessels at the same time. Other key operations include car transhipment, wet docking and a world-class ship care and repair facility, the Grand Bahama Shipyard. The depth of the harbour has enabled the shipyard to service the largest cruise ships in the world. REPUTATIONFreeport has also developed a favourable reputation for its mega yacht repair facility, Bradford Marine. Freeport Harbour is a com bination of tourism develop ment and industrial ventures. In both sectors, the harbour is comparable to cruise ports and container ports elsewhere. The industrial dimension is well developed and the brand of each business unit is strong internationally. In the short to medium term, the goal is to strengthen these brands and add additional businesses. The company Bahama Rock, an exporter of aggre gate, has been in the ports industrial corridor for many years, but without direct access to the harbour. Steps are now being taken to pro vide this company with direct access to the water. FCP has substantial land resources available if needed, whether for storage of con tainers on the quay or inland. The company is creating an improvement-driven environ ment. One lesson this rela tively young company learned from studying older compa nies was that the harbour had to be deep enough to accom modate the largest ships. The older ports, with depths of less than 45 ft, would have to be retrotted to accommo date such huge vessels. LEADERSHIPThe FCP leadership under stands that the earning per container is relatively low since transhipment activity does not add value to the cargo. Therefore, the com -A S T H E W OR L D ECO N OM Y REBO UN DS F REE P ORT HARBO U R E XP ECTS TO SOAR pany places great emphasis on productivity. High pro ductivity levels are necessary for the success of such ports. Thus far, based on through put numbers, FCP says it has been holding its own. Private ownership reduces the kind of bureaucracy often associ ated with government-owned ports. Protability drives deci sion-making and great effort is made to achieve efciency in all aspects of the operation. Hutchisons global presence enables best practices and resources to be brought in from all around the world. As the world economy rebounds, Freeport Harbour expects to soar. The stage is being set for it to do just that.

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27CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 M A R TINIQUE MARTINIQUES HUB CARABE PROJEC T: A NEW F UTU R E F O R THE P O R TFor the second time in its 150-year history, the Panama Canal is about to upset shipping paths and uses by changing intercontinental distances. From the opening of the third lock, through the gigantic 12,500 teu container vessels, Asia will be trading directly with the Atlantic side of the Americas and going straight to the western block of Europe France in particular. The Caribbean as a whole and Mar tinique specically will therefore nd themselves in the midst of a major mari time overturn that will redene routes and ow over the next 50 years. Taking over the traditional Americas and Europe sea links, the tremendously vital new ows from the North Pacic will irrigate the Gulf of Mexico and the Caribbean Sea, seeking for transhipment platforms. Martinique must be ready for this historical challenge and be part and parcel of this new industry. For several years the Fort de France Port Authority, with its unmatched draught in the region, has been quietly but decisively preparing this turning point. Its southernmost location makes the Fort de France installation a great match for the transhipment trafc to Latin America: In the rst phase, by the extension of the present container terminal (a regional sub hub with a transhipment capacity of about 250,000 teu) In the second phase by increasing capacities to target about 1 million teu. Launched in late 2003, the current container terminal at Pointe des Grives, handling 160,000 teu per year, must be immediately retrotted to accommodate the rst phase: the eastern and northern extension of its reclaimed platforms, on the one hand, and prolonging its exist ing quays, on the other. Technical surveys and socio-economic studies have been undertaken and all relating constraints have been identied. The facility is naturally sheltered from sea surges and wind and will be completed for a reasonable cost of 60 million. No damage will be done to the environment, the ora, the fauna or the (water) currents. And no palliative or curative expenditure will be required. However, the second phase, the Hub Carabe, while we are building the rst intermediary one, needs to be projected: 45 ha of reclaimed platforms tted with 1,400 metres of quay, including 1,150 metres with 18.0 metres depth and 250 metres of spare quay with 12.0 metres depth 28 ha tted with 550 metres of quay with 14.0 metres depth plus 200 metres of quay with 11.0 metres depth. As a matter of fact, the fosse de Dillon currently offers a natural depth of 17.0 metres that can accommodate deep draught vessels with no dredging of the site. The project will therefore t perfectly with only minor ecological changes for a balanced nancial cost. This two-phase project has garnered full support throughout Martinique. The time has now come for the shipping com munity to actively engage in promoting it.CONCESSIONThe Chamber of Commerce and Indus try in Martinique (CCIM) has had the port concession since 1953 and is in charge of managing the entire facility and forecasting its future. This is why it is wholly committed to this project. As the governmental body represent ing businesses, and guarantor of the port operations, the CCIM is rightfully generating momentum around this ambitious endeavour in port circles, but also in Martinique as a whole, thereby demonstrating its vitality and ambition and its recognition of its position as a agship of Europe ever seeking greater world coverage. Manuel Baudouin is President of the Chamber of Commerce and Industry in Martinique (CCIM)M ART INIQU E M U ST BE READ Y FOR T HI S HI STOR I CA L C H A LL E NG E A N D BE P ART A N D P ARCE L OF T HI S N E W IN D U STR YBy Manuel Baudouin

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The post World War II trade relations among regions have been marked by two important phe nomena. The rst is glo balisation, which brought tremendous change to the global economy and the world geography. This change has led to increased agglomeration and larger concentrations in urban spaces and, sub sequently, far better and more complex transport networks resulting in cost reductions and just-intime production methods. This transformation has resulted in world trade growing at an average annual rate of 6.5 per cent, with trade relative to output tripled. The second is regional integration, which has brought with it a signicant development in the global trading system. This regional integration, which has been driven by globalisation as well as the democratisation of political power and the search for stability in the global economy, has brought about changes in governance and technological innovation. According to Brlhart*, globalisation of the supply chain and intra-industry trade fuelled by increased trading of intermediate and nal goods, which accounted for 27 per cent of all trade in 2006 reached unprecedented levels, with growing opportunities for developing countries to take on ever more active roles in the global economy. At the same time, scale economies in transport, advances in infrastructure and transport services, containerisation, further streamlined proc esses and the production of manufactured goods have all led to economic agglomera tion, which have changed the landscape of the world econ omy. Trade patterns have also shifted, with increasing ows between neighbouring coun tries and trading blocs with similar factor endowments. However, commentators have argued that one expla nation of why Latin America and Caribbean countries have lagged in their integration into the world trading system is their inability to cope with a globalisation process that is inherently transport-intensive and where supply chains are now being organised on a global scale. Technological innovations driven by trans port technology develop ments have changed the economic landscape of the world, allowing countries to exploit economies of scale in both the transport and production of manufactured goods. However, the region continues to invest less than others in infrastructure and the logistics performance that would allow it to benet fully from these developments.EFFOR TSThese two phenomena are, in large part, a result of successive efforts by govern ments to establish a global trading system. Many com mentators have agreed on one point: that both Latin America and the Caribbean have been actively involved in transformational processes that have deepened consider ably since the 1990s with the unilateral opening of econo mies and more regional trade agreements. Latin America has a long tradition of regional cooperation and integration through the rise of ImportSubstituting Industrialisation (ISI) development strategies and the creation of the Latin American Free Trade Associa tion (Lafta) and the Central American Common Market (CACM). The ISI strategies have focused on promoting indigenous small-scale busi nesses through high levels of external protection, state participation and investment regulation with the inten tion of achieving export-led growth and lower depend ence on highly industrialised countries. This approach was premised on growth poten tial for the small businesses and to create production efciencies that will allow them to compete in the global market. However, owing to a complicated political and economic climate, the rst attempt at regional integra -D ILE MM A C A R I BB EAN P O R TS28 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011By Fritz Pinnock and Ibrahim AjagunnaTECHNOLOGICAL INNOVATIONS DRIVEN BY TRANSPORT TECHNOLOGY DEVELOPMENTS HAVE CHANGED THE ECONOMIC LANDSCAPE OF THE WORLD T HE DILE MM A F ACING L ATIN AM E R ICA AND THE C A R I BB EAN

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tion by Latin America was unsuccessful. This was due in part to factors such as: National protectionism, marked by tension between the state and the private sector; Trade negotiations did not provide sufcient incen tives to create a rule-based system, which will allow the benets from increased exchange to be distributed evenly among member countries; The development of national and regional infrastructure, low levels of investment and maintenance and poor transport services hindered the potential gains from increased regional cooperation among the Latin American countries. While this has been the case with Latin America nations, the Caribbean had a remark ably different history of economic integration, owing to the late independence of many of the colonies. The rst attempt at regional integration was with the Caribbean Free Trade Asso ciation (Carifta), established in 1968 with the aim to liberalising trade between member nations. In 1973 the association was replaced by the Caribbean Community (Caricom) as a result of an imbalance in benets accru ing to member nations. Following the debt crisis of the 1990s and the structural reforms promot ing trade and nancial liberalisation, Latin America and the Caribbean entered a period of revived regional co-operation in an attempt to reduce traditional barriers to trade, while at the same time promoting open and competitive economies. This also encouraged a develop ment strategy that brought about increased co-opera tion and trade by securing reform through institutional arrangements.INITIATIVESMany commentators have pointed out that, while subregional initiatives did not limit agreements to trade, they have incorporated structural considerations to reform the institutional environment and to build longer-term strategic policies that enable member coun tries to compete in the global trading arena. This strategic policy includes agreements in standards, transport, Cus toms co-operation, services, investment, dispute settle ment, labour and competi tion. Through these meas ures, member countries have sought to enforce internal regulatory measures as well as to capture the benets of increased opportunities for export diversication, foreign direct investment (FDI), greater specialisation, product differentiation and intra-industry trade result ing from increased market access and a clear regulatory framework.REDUCTIONThe last few decades have seen a remarkable reduc tion in barriers to trade and signicant improvements in maritime transportation, containerisation and informa tion and communications technology (ICT). These have led to a signicant reduction in the time and cost of global transactions and exchange. Importantly, regional integra tion has not only strength ened the bargaining power of many Latin American and Caribbean countries; it has also created opportunities for intra-regional trade and eco nomic growth. Despite all of these, the Latin American and Caribbean region continues to lag behind many of the industrialised countries in an effort to secure benets from increased trade liberalisation and regional integration, while at the same time being unable to maintain its share of world merchandise exports. Nonetheless, many coun tries continue to rethink and reassess the value of regional trading blocs while creating stronger incentives to deepen regional integration. Derived benets by many countries from regional integration have been expanded to include freight logistics, specialised infrastructure and trade facilitation. A 2003 IDB study points out that a 10 per cent decrease in freight costs and tariffs would boost bilateral imports of Latin America and the Caribbean by 46 per cent, with intraregional exports growing by an average of 60 per cent. According to experts, tariffs in the Latin America region have declined from over 40 per cent in the mid 1980s to about 10 per cent in 2008, while 57 regional integration initiatives have been signed. This gure has been lower in the Caribbean, as the regions average still hovers around 30 per cent. Nevertheless, the share of intra-regional trade within the regions major trading blocs has declined as a result of limitations in the integra tion process. According to experts, these have been caused by limited progress in trade facilitation measures, but difculties have also arisen from deciencies in funding opportunities and political deadlocks in advanc ing a more integrated trade and policy agenda.POLICYThis has led many commenta tors to argue that developing countries are nding them selves hard-pressed to adjust their trade policy agenda to take into account trade costs not covered in past rounds of trade negotiations. Despite efforts to increase regional co-operation in trade, Latin America and the Caribbean continued 29CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 D ILE MM A C A R I BB EAN P O R TS

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to show weak performance when compared not just with industrialised countries of the West but also with other developing regions. Logistics performance indicators con sistently show Latin American and Caribbean countries underperforming, relative to other emerging markets, not to mention the member countries of the Organisation for Economic Co-operation and Development (OECD). LOGISTICSThe two elements of the maritime component, ships and ports, constitute the movement of goods from one point to another, or from one country to another. The sum total of unique transport arrangements is referred to as the supply chain, the manage ment of which is referred to as logistics. The goal of logistics is the movement of goods across borders rapidly, reliably and cheaply. This, in turn, facilitates trade and development. The goal of Caribbean maritime transport develop ment should go well beyond the sea and encompass trade facilitation, Customs mod ernisation, the promotion of electronic processing of trade documents, improved access to trade and transport infor mation for the purpose of tracking and tracing, process ing and approval, and the cultivation of local logistics competence in forwarding, trucking and freight consoli dation. The Caribbean-Cen tral American Action (CCAA) drew attention to an impor tant World Bank measure called the Logistics Perform ance Index or LPI Connecting to Compete Trade Logistics in the Global Economy (World Bank, 2007). The LPI was constructed by surveying global freight forwarders and express car rier companies. It measured the impact of delays and costs associated with moving goods over the ports of 150 countries. This measure includes: Customs clearance; quality of infrastructure (ports, rail, and ICT); ease and affordability of arrang ing shipments; ability to track and trace; cost of local transport, port and terminal handling; warehousing; pre dictability of on-time arrival; criminal activities; solicita tion of informal payments; and degree of improvement or deterioration. While this survey included only three Community members, the following is a picture of their performance relative to the rest of the world (maximum score, ve; highest ranked country, Singapore at 4.19): While the goal should be to make progress on each of the elements that contribute to logistics performance, as they are self-supporting, it is probably true that Customs modernisation is a necessary condition. In this connection, the Caribbean region has made progress in implement ing UNCTADs Automated System for Customs Data (Asycuda) (www.asycuda.org). Asycuda was developed in 1980s. The aim was to harmonise Customs codes, international standards and simplied procedures. The expected outputs are a uniform application of the Customs laws and regula tions; a better command of the collection of duties and taxes; and the availability of timely and accurate statistics. Asycuda provides technical support for installation and training with suitable funding.TRANSP ARENCY Whatever the system, there must be transparency of governing rules and regula tions; efciency of the docu ment and clearance process; and predictability in the application of the rules and regulations by the authorities (World Bank, Global Facilita tion Partnership for Trans portation and Trade Trade logistics: Practical Measures). Increased efciency in freight logistics and the advancement of trade facilitation infrastructure will effectively enable new regional players to enter the global economy, thus promoting competition, improving distribution and reducing the logistics costs of companies. It will allow rms to take advantage of market access opportunities created through regional and mul tilateral trade agreements. Without a renewed focus on trade transaction costs, how ever, both the Latin American and Caribbean regions will continue to be left out of self-reinforcing production and trade networks, while economies of scale in pro duction and related transport performance will continue to make it more difcult to compete at global level. Because the Latin Ameri can and Caribbean regions lack the basic infrastructure to compete globally, both regions will need to focus specically on the follow ing in order to achieve the benets of integration: Provision of basic infra structure, particularly road networks and the develop ment of trucking services in each island state and within the Latin American intra-land Improvements in services and regulations that facilitate public-private partnerships, as in port and rail infrastructure Improved services delivered by each region to facilitate Customs management, border crossings, information and communication tech nologies and security Support for logistics and value chain management development in small and medium-size enterprises, operators and intermediaries Creation of an institute for high-quality logisticsD ILE MM A C A R I BB EAN P O R TS30 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 C ountry J amaica H aiti G uyana S core2.25 2.21 2.05Rank118 123 141

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Integration of regional infra structure development crite ria, giving priority to projects of greater regional impact Development of nancial mechanisms to increase investment in key areas Commitment to an agenda for productive integration and freight logistic services to support national and subnational entities in the public and private sectors. These initiatives will help the region cope better with a changing international environment and allow it to exploit the positive links between trade, integration and economic growth. An array of logistics per formance indicators shows the region lagging behind most industrialised countries and several developing regions. The 2009 Enabling Trade Index (ETI) shows Latin America and the Caribbean achieving an overall score of 3.76 out of six, the global average being 4.27. Similarly, the Logistics Perform ance Index overall ranking positions Latin America and Caribbean countries behind those of the Middle East and North Africa as well as the industrialised countries of Asia, with its lowest scores being in Customs performance (2.37 out of ve) and infrastructure (2.38). According to Guasch and Kogan (2006), poor logistics performance has also led to higher transport costs for the Latin American and Carib bean regions, relative to their counterparts. Currently, logis tics costs in Latin America and Caribbean range between 18 and 34 per cent of product value, while the OECD bench mark is nine per cent.RETHINKAs a result of underinvestment in infrastructure and poor performance in freight logistics, Latin America and the Caribbean are now pressed to rethink their trade facilitation agenda to incorporate physical integration projects, transport services and specialised logistics infrastructure in an effort to reduce nontraditional trade costs. Djankov et al. (2006) for example show that each additional day that a product is delayed prior to being shipped reduces trade by more than one per cent equivalent to a country distancing itself from its trading partners by about 70 km. This suggests that without a renewed focus on trade facilitation measures including physical infrastructure, overall land use and planning for logistics corridors and multimodal transport services, and regulatory frameworks to simplify international trade procedures the region will continue to be left out of self-reinforcing production and trade networks while transport and logistics costs will make it more difcult to compete at global level. *Brlhart, Marius, 2008, An Account of Global IntraIndustry Trade 19622006, working paper, University of Nottingham, UK

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Walk out of the Greco-Roman cruise ship terminal in Havana and you are right in the middle of Old Havana, in front of the Plaza San Francisco, with its cut-stone churches, horse-drawn carriages on cobbled streets and cafs in ancient squares. But the pre-revolution cars on the streets and clean laundry hanging from dirty balconies let you know that this is a living city, not a sanitised relic. Many of the citys most famous sites are within walking distance. The Malecon, where Havanas people gather to socialise against a background of waves occasionally crashing over the sea wall; Obispo, a busy shopping street that showcases the history of Havanas ornate architecture; the cathe dral, described as a symphony in stone; several of Ernest Hemingways favourite haunts, including El Floridita, the cradle of the daiquiri cocktail; the art deco Bacardi Building; and El Capitolio, a near replica of the Capitol building in Washington, DC, but in a startlingly tropical setting, right down to the palm trees swaying in the breeze. As the largest island in the Caribbean, with stunning colonial architecture, a beau tiful landscape and impressive white sand beaches, topped off with a heritage that includes salsa, rumba and rum bars, you might wonder why Cuba is not the number one cruise ship destination south of Miami. No doubt it would be, were it not for two small issues: American citizens are allowed to visit Cuba, but American law prohibits them from spending money there; and the US embargo prohibits cruise ships that visit Cuba to enter the USA for six months afterwards. As a result, only a few cruise ships will visit Cuba. But at least there were some European-based ships that visited. This came to a near halt in 2005 when Fidel Castro said he no longer wanted cruise ships in Cuba. He thought the cost of day-visit tourists tramping through Havana outweighed the benet. He criticised the business for being oating hotels, oating restaurants, oating thea tres, oating diversions that visit coun tries to leave their trash, their empty cans and papers for a few miserable cents. He then cancelled an Italian rms contract to run Cubas cruise terminals. The nal nail came a year later, when a Spanish ship, the Pullmantur, bypassed the island after being bought by an American rm that was subject to the US embargo. In 2005 Cuba received about 100,000 cruise passengers. However, following Fidel Castros comments in 2006, cruising to Cuba essentially disappeared. A total of 10,000 cruise passengers visited in 2010. The port in Havana, Terminal Sierra Maestra, with berthing space for up to six cruise ships at a time, is now slowly coming back to life. Cuba is wooing back European and Canadian cruise lines, welcoming, in January 2011, its rst large ship in almost six years. Ships currently visiting Havana and other Cuban ports include the Thomson Dream, Adriana, Explorer and Cuba Cristal.Thomson DreamThe Thomson Dream is a 42,092-ton Brit ish cruise ship. Measuring 243 metres (798 ft) in length, it can carry 1,500 passengers and 600 crew. From January to March the ships Caribbean tour includes a two-day stopover in Havana. For the rst visit, pas sengers were warmly greeted with salsa bands, dancing girls and people waving from the balconies. There is much anticipa tion that this marks the beginning of a new era for cruise ships in CubaAdrianaThe Adriana is a boutique cruise ship, but it has demonstrated the great potential of Cuba as a cruise destination, departing Havana and including four other stops in Cuba the Isle of Youth, Trinidad de Cuba, Santiago de Cuba and Cayo Saetia (a cay north of Holgun) as well as Ocho Rios and Montego Bay in Jamaica. The Adriana is operated by Tropicana Cruises. With a gross tonnage of 4,591 grt and a length of 103.7 metres (340 ft), it can carry 300 passengers with 135 crew.ExplorerA US-based ship, the 24,318-ton Explorer, applied to visit Havana in December on its world cruise. If approved, it will be the rst US ship to enter Cuban waters for almost 50 years.Cuba CristalCuba Cruise will be launching Cuban cruises in December 2011 with its 480-stateroom ship Louis Cristal, operating as the Cuba Cristal. The ship departs Havana and calls at six other Cuban ports: Bahia de Nipe, Cayo Guillermo, Santiago de Cuba, Cayo Caguamas, Cienfuegos, Trinidad and Punta Frances, the largest of the islands off Cuba and featuring six Unesco World Heritage Sites and four national parks and preserves. The Cuba Cristal, which can carry 1,200 passengers, will be operating mainly in the Canadian market. C R U I S E SH I PP ING IN CU BAC R UISE CU B A32 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 Cuba is wooing back European and Canadian cruise linesBy Ricky Browne

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33CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 CRUISE CHALLENGE S UMMER REMAINS A CHALLENGE FOR CRUISE TOURISM IN THE C ARIBBEANSt Kitts and Nevis Minister of Tourism Ricky Skerritt must be complimented for the way in which he addressed the issue of the slump ing summer cruise season in the Caribbean. In his new position as chairman of the Caribbean Tourism Organization (CTO), Skerritt has called for a meeting with the Florida-Caribbean Cruise Association (FCCA). This meeting will discuss what has become an enigma for the majority of Caribbean dependent tourism coun tries. Skerritt has taken a bold stand in calling for such a meeting and, in this regard, the tourism ministers of the CTO will be meeting the FCCA with the aim of reaping tangible results for the ben et of Caribbean cruise destinations. We should examine closely what is taking place in Caribbean countries that depend on tourism in the summer months. Starting with the Organisation of Eastern Caribbean States (OECS): only three ships call Antigua for the entire summer, from June to October; about seven ships call St Kitts, bearing in mind that Carnival Cruise Line makes four of those calls with one ship; St Lucia receives about as many ships as St Kitts (from the same Carnival ship). Barbados receives seven or eight vessels, the same as St Lucia and St Kitts. Grenada, Dominica, St Vincent and the Grenadines, Martinique and Guadeloupe receive no calls. This is signicant because, not so long ago, many of these destinations enjoyed sufcient cruise calls in the summer. Antigua and Barbuda can be used as a good example. In the early 1990s, when the Caribbean was viewed as the only year-round cruise destination, it received 12 to 15 calls. So we thrived on that. The beach was the place to be, and sand, sea and sun made an unbeatable tag line for advertisements. We became comfortable with the view that it would stay that way and, as the economic reality of the world was changing and we were forced in some ways to divert our revenue incomes from productions and manufacturing to tourism, we did not manage to upgrade and hold onto our niche at the time and expand it. I recall the former Prime Minister of Antigua and Barbuda, Lester Bird, telling me that sustainability was the key for the cruise business, and this has proved to be true. We should have gone into long-term arrangements with the cruise lines as we partnered with them to build the cruise business in the Caribbean. And by we I mean the entire Carib bean. Many people assumed that the cruise business was just a passing phase but, as we can see, it is here to stay. Meanwhile, Europe was taking a good look at our products, copying By Nathan Dundas*ONLY THREE SHIPS CALL ANTIGUA FOR THE ENTIRE SUMMER, FROM JUNE TO OCTOBER

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them and even looking to better them. Just recently, at the last Seatrade Cruise Convention in Miami, in March this year, the Europeans boastfully stated that they were now the Caribbean of the world as they were offering year-round cruises to the cruise community worldwide. The trend indicates it is not just Europe; the Asiatic countries, too, are now capitalising on the benets of the cruise industry and growing their prod uct to the extent where now the major cruise lines, including the American cruise lines that once centred their ships in the Caribbean, are now relocating some of these same cruise ships to Aus tralia, New Zealand and other places. It is clear that, based on the current trend, this expansion and diversion of the cruise lines will go further to Latin and South America. Places such as Brazil are already becoming great markets for the cruise industry. Even some of the European cruise lines which focused on the Eastern and Southern Caribbean in the not-too-distant past are now divert ing some of these same ships to South America and Latin America rather than the once-envied Caribbean islands. There has been a commendable effort by Barbados to bolster the home port concept of having operators start their cruises locally, with passengers being own directly from Europe, but even that is being challenged in the winter season by the recent news that Fred. Olsen will discontinue this opera tion next year. And, of course, during the summer, if there are no ships call ing, it will also have a serious effect on homeport activity. Many governments have invested heavily in cruise tourism, mainly in port infrastructure and terminals. The same can be said of the private sector, which has investments in many of the destina tions for example, the purchase of catamarans, attraction sites, duty-free shops and investment by taxi opera tors. The cruise lines themselves have invested hugely in their products, includ ing billions of dollars spent on building cruise ships like the colossal Norwegian Epic and Allure of the Sea. Cruise lines are in the business of making money and they cannot be blamed for their choice of destinations. Primarily, they go to the destinations where their passengers choose to go and also where their market sources indicate they can make more money. This is similar to the decision that many Caribbean countries took in diverting to tourism as their main money earner. The ministers of the CTO should therefore focus their talks on the busi ness aspect of the cruise sector. The key would be to nd a win-win situation for both the cruise industry and the Caribbean Island States. We cannot go into the discussion with the view that the cruise lines are obligated to us. That argument will not go down well with the cruise lines as they have no moral obligation to the Caribbean islands. If that was the case, then they would be out of business themselves. It is no easy feat for a cruise line to ll a 3,000 passenger vessel, never mind a 5,000 passenger vessel, on a weekly basis and maintain a prot margin. Most of the Caribbean islands are doing fairly well in the winter months from November to April. The problem is May to October, as shown by the numbers above. The cruise ships are not sitting idly by, waiting to get passengers to come to the Caribbean; rather, they are being positioned in the areas of high revenue for the cruise lines. St Maarten and Jamaica, unlike most of the other islands mentioned previ ously, have been able to maintain a number of calls during the summer. I attribute this mainly to two things: location and joint investment with the cruise lines. We can also mention good relations that cannot be measured in economic dollars. The cruise lines and the destinations are to be viewed as business partners. Within those two attributes, I believe there can be suc cessful negotiations with the cruise lines for the rest of the Caribbean islands. LOCATIONWe have to look to getting the cruise lines to reposition one or two of their vessels to be able to serve the Eastern Caribbean in the summer months. What would it take? Puerto Rico has to become the main player once again for the Caribbean islands to be able to benet. If San Juan homeport becomes active again during the summer season, then the rest of the Caribbean, especially the Eastern Caribbean, will become accessible with a seven-day itinerary by the cruise lines. This will make more sense for the cruise lines, economically and nancially, in view of the present fuel situation. It will, indeed, be less costly for the cruise lines to reach the other islands, burn less fuel and still be able to capture many of the destinations owing to their close proximity. JOINT INVESTMENTThe joint investment in the two islands mentioned above translates into com mitment from the cruise lines to guar antee a certain number of calls to those destinations. This covers both the winter and summer seasons. There are certain questions we need to ask ourselves. Can we look at joint marketing with the cruise lines? Can we CRUISE CHALLENGE34 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 M OST OF THE C ARIBBEAN ISLANDS ARE DOING FAIRLY WELL IN THE WINTER MONTHS

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create special opportunities to make our destinations inviting enough that families would want to visit the Caribbean from Europe and North America during the summer? The attractions created during those months would be unique to our destinations and there would be great interest and demand for the Caribbean. The opportunity for joint invest ment with the cruise lines should be looked at, not only in terms of port infrastructure but also of attraction sites and creating other tour activities that would boost cruise line revenues as well as local partner investments. Again, I would mention the aspect of joint mar keting to get the destinations to become the premier area of interest for cruisers. I strongly believe that, before engag ing in talks with the cruise lines, each minister of the Caribbean should rst seek to meet their principal local cruise stakeholders and garner from them their ideas and suggestions, so as to guide the discussions for the benet of the people of the Caribbean. In this regard, I must also commend the Hon. John Maginley, of Antigua and Barbuda, for taking the initia tive to engage the Antigua and Barbuda Cruise Tourism Association as partners. I must remind everyone that many businesses are going to be closed down during the summer. It is virtually impos sible to maintain a successful cruise operation for just six months; it has to be sustainable all year round for service providers to produce the best to the sat isfaction of visitors. Unemployment will rise during those months and the social fabric of the societies will be affected. If we think this summer was bad for us, the next summer season promises at this stage to be worse. Royal Caribbean Cruise Lines has announced the relocation of its only vessel in the OECS, the Serenade of the Seas, from the Caribbean to Europe. This means that the number of calls to Antigua, St Lucia, Barbados, St Kitts, St Maarten and other destinations will be further reduced in the summer of 2012. This underscores the seriousness and timeliness of the meeting that the ministers are going to undertake with the cruise line partners. The people of the Caribbean ought to take this matter seriously, as the many who depend on this business of cruise tourism will be affected in one way or another by this signicant meeting. Meanwhile, we can individually help to upgrade our service level in the tourism industry by treating every visitor as a poten tial stay-over visitor who will come again. *Nathan Dundas is chairman of the Anti gua and Barbuda Cruise Tourism Associa tion and chairman of the Cruise Commit tee of the Caribbean Shipping Association35CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 CRUISE CHALLENGE

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Few, at rst glance, would associate her with the leadership of a 42-year-old shipping agency that is a major player in a ercely competitive industry dominated by men accustomed to brokering and closing deals in an environment not intended for the fainthearted. Mrs Erica Luke, a familiar face for many years at Caribbean Shipping Association conferences, heads a family business, Eric Hassell and Son Ltd, founded by her grandfather in 1969 a position she attained more by chance, circumstance and tragedy than birthright. She is also the sole female stevedore member of the powerful Shipping Association of Barbados (SAB), founded in 1981, primarily to unite member agents on matters related to the handling of ships and cargo and to ensure a positive relationship between shipping agents, related port agencies and the union. In 1991, aged 23 and fresh from Concordia University, Montreal, with a Bachelor of Commerce degree, Erica Luke (then Erica Chaderton) was thrown headrst into the shipping business at a time when the company, as she puts it, was in the doldrums resulting from a decline in breakbulk shipping. Containerisation had started in the late 1980s. We didnt have a container line, she recalled.OpportunityHer grandfather had been offered the opportunity to be agent for Carifreight Line Ltd, a US$2.7 million company created to replace the West Indies Shipping Corporation by regional conglomerates, including Grace Kennedy and Co. Ltd. of Jamaica, Barbados Cosmetics Products and McEnearney Alstons (McAl) Ltd of Trinidad and Tobago. Marketing was a prerequisite for the company representing the new shipping line. Hassell called on his granddaughter, who had majored in marketing at Concordia, to take up the job and market Carifreights services. That is how I joined the company purely by luck, says Erica Luke, who had returned home in June 1991 looking for a job in Bridgetowns commercial centre. That would have been ideal, she said. I did not have my mind set on the family business. I never thought about the family business. I never ever thought that my grandfather would want me. He was one who felt he never needed to have all the family here. It was him and a son. That was good enough. Although she had been formally schooled in commerce in Canada, her skills and knowledge in the shipping world were acquired, guratively, at her grandfathers knee, in the very of ce she now occupies. The rst couple of months in the family business, she agrees, were exciting. Her grandfather was pleased his company was getting container lines. I was out there marketing and trying to soak up as much as I could from him, in terms of knowledge, because I knew nothing about PROFILE36 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 By Charles HardingERICA LUKE Her skills and knowledge in the shipping world were acquired, guratively, at her grandfathers knee indomitable shipping executive this industry. Yet I had to go out there and talk to importers and exporters and tell them to use our line. I spent a lot of time either speaking with him [Eric Hassell] here in the of ce or out on the road talking to customers. It was an exciting time. She learned quite a few lessons from her master mariner-cum-ship agent grandfather, especially those related to payment of bills and caring for staff. That is one of the things we do and do on time and religiously, she said. It has become the culture of the company. We pay our bills on time and treat our people well. The young shipping executive was pitched further up the corporate ladder when her grandfather died sud-

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denly in 1994. Her uncle Geoffrey, a natural successor to her grandfather, migrated to Canada with his family. Another uncle, Frank Hassell, had to be persuaded to leave his job as an engineer with a manufacturing concern and join his niece at Eric Hassell and Son Ltd. With the help of loyal staff, the two carried the company through good and bad times for the next 15 years until Frank Hassell retired in 2007, handing the tiller to his niece. She recalled the time in 1993 when the company, like most businesses, was experiencing challenges and Carifreights future seemed doubtful. Fortunately, Eric Hassell and Son Ltd secured the agency for Europe West Indies Line out of Europe and the UK. But the icing on the cake, so to speak, came in 2002. I had actually taken a break [her second child was still a toddler and she was preg nant with her third] when I got a call from a shipping colleague about a line want ing to meet with us. TalksShe called her uncle at the Bridgetown ofce, relayed to him the information she had received and without hesitation the two of them ew to Florida for talks with Seaboard Marine. It has been going very well and our relationship has grown from strength to strength, she said of Sea board Marine. Life, however, has been no bed of roses for the 43-yearold boss of the shipping agency. She has prospered on challenges and thrived against the odds, turning stumbles into strides and overcoming difculties of all sorts. With high school qualications (GCE A-levels) in French, Spanish and German, young Erica seemed destined to study languages at univer sity. Her grandfather, who had been a strong inuence, persuaded her to read for a degree in commerce instead. Then tragedy struck. A couple of months before she was due to y to Montreal in 1987, she was hospitalised follow ing a life-threatening headon motor vehicle collision. She lost most of a kneecap, underwent abdominal surgery for a ruptured liver and spent two months at the Queen Elizabeth Hospital in Bridget own, Barbados. She described that experience as one of the most difcult times of my life. I still live with pain today but I dont talk about it. I try not to dwell on that, Mrs Luke revealed without a hint of anger or regret.ChallengesShe lost her grandfather just two months before her wed ding to Douglas Patrick Luke, a partner with a local rm of architects. The wedding was postponed from July to December 1994 while the family mourned the passing of Eric Hassell. But one of her greatest challenges to date was nding support to continue the family business after his death. I was here with one of his sons, Geoffrey, who decided to emigrate to Canada follow ing the death of his father. I thought this business must continue. I was only 20-some thing. I was able to convince my Uncle Frank [Hassell] to take up the mantle. He spent 15 years here and retired in 2007. Thats when I was elected by the board to head the company. Erica Luke does not allow herself to become involved in gender issues or talk of women toppling all-male bastions and marching up the corporate ladder in the equal opportunity society of Barbados. She puts it simply: I dont focus on gender issues. I really dont pay attention to it. I am just like any other human being in a job doing a job to the best of my ability. She believes in team work and is adamant that the success of her company is due to its team effort. It is denitely not a one-person show. We have done what we have done because of our people. We have people who have been with us from the time the business started 42 years ago. We are a family business that cares for our people. We take care of our people and this is something that started from my grand father. My uncle continued it. 37CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 PROFILE It is the way we do business. She acknowledges the challenges in the shipping industry, pointing speci cally to the SAB. They are all men. I am the only female leader of a full-edged ship ping agency and stevedore contractor. While I would be happy to serve as a com mittee member or a senior member of the association, it hasnt arisen and that is ne. I am just an ordinary member, but I do make my voice heard when I need to. I try not to make myself spe cial because I am a woman, because at the end of the day it is an industry and I have to take my licks. FamilyThe Hassells, without contra diction, are the only shipping family remaining in Barbados, going back to the early 20th century (1906) when Erica Lukes great-grandfather, Captain Frank Hassell, sailed a schooner to Barbados from Saba, Dutch West Indies. He was accompanied by his eight-year-old son, Eric. At age 11, Eric was signed on to Sharing a light moment with then CSA President Corah-Ann Robertson-Sylvester (left)

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PROFILE38 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 the 65 ft schooner Edward VII, then under his fathers command, as a deck-boy, swabbing decks and splicing ropes. He was made captain of the same Edward VII after a 10-year apprenticeship and later captained other vessels, including the Comrade, Manuata and Lucille Smith before taking command of the ill-fated Zipper in 1959.Turning pointHe lost the Zipper, which took in water and sank on a voyage between Georgetown and Bridgetown in 1963, a development that signalled the turning point in Hassells seafaring career, eventually leading to the establishment of Eric Hassell and Son Ltd, which is now owned by the Hassell clan with a fully functioning board of directors. I have never sailed a ship but my uncles spent many years on board ships, said Erica Luke, con rming the Hassells connection with seafaring. Eric Hassell and Son Ltd had the distinction of being a founding member of the SAB. It introduced the rst openhatch bulk carriers of grain, corn and rice to Barbados in 1973 and in 1992 embraced containerised shipping, providing quality representation to a European and United Statesbased shipping line. Its leader is now interested in securing another European line to represent in Barbados and to build a stronger company. Erica Luke emphasises her desire to develop my people, because I believe strongly in training. My immediate plans are to keep going, nding new business and new lines. I enjoy visiting our customers with our sales persons to thank our customers and build new business. SubsidiaryIn May this year she established a subsidiary company, EHS Freightliner Ltd, a private bonded warehouse at Brighton, St Michael, on the outskirts of Bridgetown, just west of the port, and is looking at further diversifying the companys range of services without moving too far from shipping. But her main concern is to ensure that Eric Hassell and Son Ltd continues her grandfathers legacy. It is my dream to see the company live on to continue his legacy, she said. I dont expect to be here till 79, like my grandfather, but I am bent on continuing the business. I see it continuing whether it is with another family member or somebody from within the organisation. I want to see his legacy live on. The mother of three nds opportunities from the rigours of the shipping trade to share time with her family and spends at least every weekend swimming with her three children: Liam, a 14-year-old high school student with tennis ambitions; 11-year-old Mackenzie, who joins her older brother at Queens College in September; and eight-yearold Savannah, a student at St Gabriels, an Anglican Church primary school in Bridgetown. My children are my pride and joy my top priority, says the working mother.MotherhoodHow does she manage her full-time job with the challenges of motherhood? I practise yoga. Yoga relaxes me. It allows me to meditate, relax and keeps me on an even keel. Ask my husband. When I am getting stressed out, he would say: You need to get to yoga. I have to keep in shape. I have to keep t. We all do. Yoga is fantastic an amazing exercise.

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39CARIBBEAN MARITIME I OCTOBER DECEMBER 2011GRAPEVINE ? PANAMA CANAL AUTHORITY RENEWS TIESCMA CGM TO INVEST IN KINGSTONaccommodate these giants, which is currently not the case for most ports in the Caribbean and on the United States East Coast. The PAJ will undertake a dredging programme to increase the depth of the sea lanes at the Port of Kingston, keeping pace with the requirements of the new generation of larger ships. KCT has three main terminals in the Port of Kingston: the North, West and South. The PAJ has emphasised that this agreement with CMA CGM is separate from the planned privatisation of the KCT. PricewaterhouseCoopers (PwC) was awarded two consultancy contracts for the privatisation, worth a total US$3.8 million. The larger contract is for US$3.33 million. The rst contract signed in May 2009 was for US$525,000. The terms of the MOU signed with the Port of Kingston include (a) taking over operations in the current facilities and (b) phased expansion of the terminal. Once in service, the Gordon Cay Terminal will have a 1,300 metre quay and the potential to develop an additional 1,700 metres in a second phase; and a 17.0 metre draught capability to accommodate the new panamax vessels.CMA CGM is reportedly planning to invest US$100 million in Kingston Container Terminal (KCT) in exchange for a 35-year lease. According to reports, CMA CGM will use Jamaica as a major hub. A memorandum of understanding (MOU) for the operation, equipment and expansion of the Gordon Cay Container Terminal in the Jamaican port for a minimum period of 35 years was signed on 4 August 2011 by Rodolphe Saad, executive of cer of CMA CGM, and Noel Hylton, chairman of the Port Authority of Jamaica (PAJ), in the presence of Jamaicas Minister of Transport, Michael Henry. The MOU marks the start of a major investment programme before the terminal is fully commissioned in 2015. The project to develop the terminal will be based on the existing facilities. According to CGM, the Panama Canal Expansion Project will require a major reorganisation of shipping, particularly in the Caribbean and North American region, as the new panamax vessels, with a maximum capacity of 12,500 teu (compared with the current limit of 4,000 teu), will be able to transit the canal. Transport distribution will only be possible from a hub that can WITH HOUSTONThe Panama Canal Authority (ACP) and the Port of Houston Authority have renewed their strategic alliance until 2016. The two entities signed an MOU on June 22 in Panama City. The aim is to increase and expand trade along the all-water route between Asia and the US Gulf Coast through the Panama Canal and the Port of Houston. As a result of the canal expansion, the volume of containerised cargo going to Houston could grow by 15 per cent in the next few years. Projections are for a 150 per cent increase to total 4.5 million teu by 2030. The two entities plan to increase trade and traf c through the canal by data sharing and dual marketing efforts.WITH NEW ORLEANSThe ACP and the Port of New Orleans renewed their strategic alliance on 8 August with the signing of an MOU. Initiated in 2003, the partnership was developed to encourage investment, increase trade and promote the all-water route. With over 6,000 vessels moving by way of the Mississippi River each year, the Port of New Orleans is considered one of the worlds busiest waterways. It is the only deepwater port in the United States served by six Class One railroads, giving port users direct and economical rail services to all parts of the USA. WITH TAMPAThe ACP and the Tampa Port Authority agreed to extend their trade development cooperation. The agreement will focus on data and information sharing in order to forecast trade ows; market studies aimed at product development or business ventures; and technological interchanges that will spark development initiatives in the shipping and maritime community. The rst MOU was signed in 2005 and was renewed in 2008. This latest agreement is for an additional ve years. WITH SAVANNAHThe ACP and the Georgia Ports Authority (GPA), which owns and operates the Port of Savannah, renewed their eight-year relationship on 27 July with the signing of an MOU. The ve-year pact encourages and facilitates joint economic action. Areas of co-operation between the Canal Authority and the GPA include information sharing, joint marketing efforts, exchange of data, capital improvement plans, training and technology. The partnership also supports the promotion of the all-water route from Asia to the US East Coast via the Panama Canal. The GPA plans to deepen the Savannah River from 42 ft to as much as 48 ft under the Savannah Harbour Expansion Project (SHEP). GRAPEVINE*

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?GRAPEVINE40 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011Byline ? DP WORLD IN SURINAMEThe marine terminal operator DP World announced in July that it had acquired controlling interests in two ports in Suriname. The Dubai-based port operator said it had bought into Integra Port Services and Suriname Port Services (SPS). DP World said it will have a management services agreement for both terminals. Up to the time of going to press, the purchase price had not yet been disclosed, but it is understood the deals were to be completed by the end of September. Caribbean Maritime contacted CSA member Remy Vyzelman of Integra Port Services in July. Although he con rmed the news reports, he said he could give no more information at that moment. The recent rehabilitation of the Nieuwe Haven Port has strengthened its claim of being one of the port facilities in the Caribbean. In 2010 Integra successfully negotiated a 15-year concession to operate a container and breakbulk terminal at Nieuwe Haven. The terminal has a container throughput capacity of more than 100,000 teu and the potential to double this because of projected growth in the Suriname economy and a better road to Cayenne, French Guiana. An agreement between Suriname and France to use Port Paramaribo as the main hub for French Guiana, made possible by the new road, is expected to increase revenues for Suriname. Suriname Port Services, the other facility in which DP World has invested, operates a private breakbulk facility about 20 miles from Paramaribo. The Cuban port of Mariel is undergoing a major expansion. The International Economic Association and the Brazilian company, Odebrecht. Brazil are reportedly nancing the entire project. A total of $400 million in nancing had been disbursed up to July 2011 and $200 million of a promised $800 million had been approved. Mariel, 28 miles west of Havana, is the largest port on the north coast of Cuba, second only to Havana. The rst stage of the port development, expected to be completed in 2014, involves the construction of 700 metres of docks. On completion, it will be able to accommodate ships with draughts of nearly 40 ft. A supporting system of road and rail infrastructure is also being built. When completed, the terminal will have an annual capacity of about 850,000 teu (compared with Havanas 350,000 teu). Initially, the Mariel terminal will have 700 metres (765 yards) of berthing. Eventually, all industrial port facilities at the Port of Havana will be moved to Mariel so as to free Havana harbour to handle cruise ships and recreational boating activity. The industrial land area near the Port of Havana will then be redeveloped for tourist and eco-friendly uses. Mariel has been declared a Special Economic Development Zone in Cuba. In addition to future port operations, it will be the location for logistics facilities for offshore oil exploration and will have a container terminal, cargo storage facilities, a marine technical school and an area for new sources of employment including light manufacturing. The port of Mariel is run by the Cuban militarys Zona de Desarrollo Integral de Mariel, which is owned by Almacenes Universal S.A. The Singapore port operator PSA International has reportedly signed an agreement to manage the Mariel container terminal. PSA operates major terminals in over a dozen countries. The agreement is to manage the port and does not involve any investment in construction. PSA has strategic partnerships with the worlds largest container lines, including CMA, Cosco, K Line, MSC, NYK and PIL.MAJOR EXPANSION OF CUBAS MARIEL PORTCRUISE TERMINAL FOR MAIMN BAY, SANTO DOMINGO The Dominican Republics Tourism Minister, Francisco Javier Garcia, announced plans in August 2011 for the construction of a modern cruise ship terminal in Maimn in collaboration with Carnival Corporation. The terminal is to be built at a cost of US$65 million and is expected to generate about US$30 million in its rst year in operation. The Minister said the terminal would be able to berth two ships simultaneously and to handle at least 4,000 passengers. Construction is expected to start on 1 October and the project is due for completion in two years. The new terminal will occupy 50,000 square metres at Maimn Bay. *GRAPEVINE documents reports which have appeared publicly, in the news and circulated on the internet, so as to provide a historical context for the articles appearing elsewhere in this publication. The Caribbean Shipping Association, Caribbean Maritime and Land & Marine Publications Ltd do not endorse these reports, neither do we take responsibility for their accuracy. GRAPEVINE*

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With the ofcial opening date of the expanded Canal set at August 2014, the Panama Canal Authority (ACP) reports that the worlds largest construction project is 28 per cent complete and ahead of schedule. Part of this project involves a new type of building material. An impervi ous cement and bentonite barrier, now under construction, will allow excavation work for the new Atlantic access chan nel to the Canal to proceed without the risk of seepage from Gatun Lake into the work area. This mix of materials is being used for the rst time. Bentonite, a ne clay formed by the decomposition of volcanic ash, has properties to absorb large quantities of water and to expand to several times its normal volume. The Spanish subcontractor Rodio-Swiss boring began building the barrier in the second half of last year. The job has proved a challenge for everyone involved, not only because of the technical specications of the contract (for the fourth dry excavation phase for the Pacic Access Channel, conducted by the ICA-FCC-MECO consortium) but also because of the uniqueness of the task. The barrier is 458 metres long and requires 4,875 cubic metres of cement and bentonite, produced in two batching plants imported from Spain. The ben -PANAMA CANAL EXPANSION42 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 tonite, imported from Mexico, is hydrated over a period of 24 hours and is then mixed with cement in the batching plants. Subcontractor engineer Gonzalo Sanchez says the bentonite works as transporta tion for the cement since its physical char acteristics, once mixed with this material, produce a mix that can be poured with out the risk of cement settling. The nal product is a exible screen, like Jell-O, that moves, does not crack and, most impor tantly, is impervious to water. Pedro Lopez, project manager for the Panama Canal Authority (ACP), says the aim of the canal quality assurance pro gramme is to guarantee that the param eters established for this mix comply with the contract requirements, from the begin ning of the bentonite hydration process to the mixing of additives and cement. The idea is to produce a mix of cement and bentonite that guarantees the stability of the wall as the excavation goes deeper. Take into consideration that the mechanics of the process is to excavate and replace the excavated material with the mix, says Lopez. If the mix lacks the required characteristics, there is a poten tial for the walls to be unstable. The excavation, in an area north-east of Pedro Miguel Locks, will be as deep as 18 metres, down to rock. Quality assurance guidelines, as established in the contract C ANAL BUILDERS PIONEER NE W FLEXIBLE W ATER BARRIERCement and bentonite mix used for rst time THE BARRIER IS 458 METRES LONG AND REQUIRES 4,875 CUBIC METRES OF CEMENT AND BENTONITE

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technical requirements, stipulate that the mix complies with the required strength and permeability 28 days after production. The ACP is working closely with the contractor to ensure that the quality demands required for the construction of the cement and bentonite screen are met. This is a critical phase in the excavation of the new channel, which will link the third set of locks with the Culebra Cut.APPROVEDOn 22 October 2006, the people of Panama overwhelmingly approved the expansion of the Canal. One of the worlds largest construction projects, it involves the building of a third lane of trafc along the waterway and, in this regard, the construction of a new set of locks. The expansion, which has inu enced port and terminal expansion projects across the Caribbean and Latin American region, will allow the transit of wider and larger ships and will double the Canals capacity to over 600 million Panama Canal tons (PC/UMS) per year. As part of the project, the Canal entrances at the Atlantic and Pacic channels and the navigational channel at Gatun Lake are being widened and deepened. One lock complex is being built on the Pacic side, south-west of the Miraores Locks; the other is east of the Gatun Locks. 1. The impervious cement and bentonite wall barrier measures 458 linear metres. 2. The excavation is going as deep as 18 metres, down to bedrock, in an area north-east of Pedro Miguel Locks. 3. The cement and bentonite barrier will allow excavations for the new access channel to proceed without the risk of seepage from Gatun Lake into the work areas.43CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 PANAMA CANAL EXPANSION

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44CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 The rst in this series of columns, BridgeView, which appeared in the last issue of Caribbean Maritime (CM13), praised you for managing through the testy decade of the 2000s. Yes, the kudos is well deserved. Now, CM14 continues with such praise, but adds that sobering word however. The however is in the form of the mythical Hydra with its regenerating heads. Recently, in conversations with several seasoned Caribbean business people, it was unsettling to nd that a single subject could rear its head in so many places and in so many ways. It is, with few exceptions, a contentious relationship, decades long, pervasive and extremely complex. Cruise imbeds itself into the DNA of the Caribbean a magni cent heritage of sun, sand, surf, biodiversity and diverse cultures as well as a key position in the global maritime trade lanes. Yes, in turn, each of these genomes rears its head, but these are for another time. Politely stated, this interconnection between the cruise industry and the islands is both a symbiotic and a love-hate relationship. GrowthHow can you not love passenger spend, port tax revenue and the potential for return stayover (preferably at a non-inclusive hotel) with local spend? And how can you not love an industry that shows a decade of continued growth, whose economic impact on the USA was a 7.8 per cent increase over 2009?* Accepting but a trickle-down effect, the Caribbean, too, enjoyed an economic bene t. Conversely, Mike Jarrett, in his 2006 article Caribbean needs to study implications of bigger cruise ships (www. caribbeanshipping.org/ commentary), was spot-on in his observation that: The implications for the region are tremendous and should be studied. There are many issues not just economic but environmental and social. Fritz Pinnock and Ibrahim Ajagunna in their article Cruise Tourism Bene ts the Caribbean Illusion or Reality? ( Caribbean Maritime issue No 11) raised a testy question: What is the true cost of accommodating 50 per cent of the world cruise calls while receiving only ve per cent of the industry revenue? An impassioned relationship, an uneasy marriage to be sure, exists; yet the tourism and travel industry (read cruise) in the Caribbean really matters. No-one is exempt, in particular not those on the bridge, behind managerial desks or in the executive suite. However, in this economy, in which passengers now buy three T-shirts rather than seven, this is reality. If all are hungry and are scared into co-operation, could this not soften the contentious relationships? Why such a prickly history? I suspect we have known the answer for quite some time. So why not act with de nitive purpose? Is it that we have simply deferred or abdicated to Caricom/CSME and other acronymic organisations to construct our future? Is it that, while we pursue our personal and singular islandnation wants and needs, we continuously compete with our neighbour destinations with a silo mentality, rather than our true competitors, the Mediterranean and the Fjords? Caricom and other organisations may speak well for the Caribbean in certain circles and present a polished global face. However, what is needed is a long-term, islandnation-focused strategic plan: a plan that is both creative and innovative; one that draws on the destinations DNA-de ned product offerings and so establishes core competencies.DestinyThe rst step is the examination of self, the Delphic aphorism to Know thyself. In turn, and posited over 100 years ago by Ralph Waldo Trine in his classic work, In Tune With The In nite, there is the counsel that: Within yourself lies the cause of whatever enters your life. Can a country or countries create their own destiny and shape their own lives? Of course, this is a challenging task requiring serious effort. It will be most A love-hate symbiotic relationship By Joseph Cervenak B ridge V iew An impassioned relationship, an uneasy marriage to be sure, exists; yet the tourism and travel industry in the Caribbean really matters

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45CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 challenging to precisely de ne national aspirations, culture, geography and topography, revenue needs, costs, expenses and pro t goals. In essence, the need is to weigh possibilities and aspirations so as to de ne a unique island nation; and further, to recognise that a single country cannot be, nor should want to try to be, all things to all people. Instead, as the lyric of an old song commands, we should eliminate the negative, accentuate the positive. Each country must become a single destination in the world of travel and tourism. What follows is to answer two foundational questions: who do we want to be and what do we want to do? Answered in exact terms, they create a directed mission statement, the heart of a long-term strategic plan. Creating a single longterm, country-speci c strategic plan is the charge and obligation for each destination. The effort, neither complex nor complicated, is simply hard and focused work work constructed using primary, secondary and anecdotal research. It is managing the process of a critical business. As a guide, use Steve Coveys Seven Habits of Highly Effective People. Habits one to three are (1) Be proactive, (2) Start with the end in mind and (3) Organises the process by putting rst things rst. Somewhat paraphrased, it is: getting started, de ning where you want to go, and dealing with your house before playing in the neighbourhood. From Coveys guide comes a path to articulate the longterm strategic position and to identify the strengths, weaknesses, opportunities and threats (SWOT) and accept speci c quanti able goals using key performance indicators (KPI). It is a fact that we all know how to do all of this. Knowing this is to begin the process of charting and inventing ones future. The Caribbean Plate, more than 7,000 islands, islets, reefs, and cays. Thirty territories including sovereign states, overseas departments and dependencies My apologies for a Wiki reference. However, it adds scale and a dimension of magnitude to the statistic that over 50 per cent of the worlds cruise business takes place in the Caribbean. As asked before, who bene ts? SymbioticSomehow, somewhere, did the view of the beach get lost in the grains of the sand? The many-headed Hydra exists only because of the singleness of interest. Cruise is as important as the islands. It is, in fact, a not-to-beundervalued symbiotic entity. Its foundation cannot be built on a win-or-lose, zero sum competitive posture. It must be the opposite a relationship opting for winwin outcomes collaborative in intent and co-operative in practice. Is this reality? Can it be done? Will an uptick in the economy negate such practices? This is a legitimate question. However, winwin is winning and is likely to be less expensive and more rewarding than the alternative. I offer that the examples of Barbados and Guadeloupe foretell continued success. Coming full circle and roughly extracting from my earlier referenced conversations, a simple bidding comes forth: talk to one another and act as one. It is time for Hercules to slay the Hydra. Special thanks to Frank Wellnitz, director, Caribbean Feeder Services; Dimitri Cloose, director of marketing, Curacao Ports; Mike McFadden, principal, M A C Maritime Inc; Bob West, principal strategist, WorleyParsons; and the many islanders who shared their insights and information. The Contribution of the North American Cruise Industry to the US Economy in 2010, prepared by Business Research & Economic Advisors (BREA) for CLIA.

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THE HUMAN FACTOR46 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 The industrial revolu tion created middle managers, connecting top management to the lower-level workers. On the other hand, the second major revolution, the technological revolu tion, has been eliminating the middle manager. According to Professor Lynda Gratton from the London Business School, technology has become the great general manager and the classic job of the middle manager will soon disap pear. Her research shows that younger workers value a highly skilled master who is capable of mentoring instead of someone who simply keeps track of what they do. Gratton says the middle manager serves as jack of all trades by leveraging multi ple sources of information, thereby creating value by acting as a hub in a sea of complexity. The challenge is that companies do not hire managers who are experts at managing and instead reward individual contribu tors by promoting them into management positions. Over recent decades, many managers have been moved up the ladder because By Fritz Pinnockof their technical skills, expe rience, proven track record and, to a large extent, senior ity. This made sense for many companies working within local and regional environ ments with a strong focus on their core competencies and a traditional workforce.ValuedIn many situations, manag ers would be valued for being technical experts and would be required to identify problems within their teams, validate reports from team members and make nal deci sions. This sometimes creates fears for the newly appointed manager. The question that many would ask is: I am afraid of getting into this new position as I do not know all the details involved and then how do I know if something is going wrong? Middle managers are responsible for directing employees in key perform ance areas and their success is required for obtaining important business results. However, they often are neglected within companies, getting neither the respect nor the attention they deserve. Being successful as a manager, however, means having a clear understand ing of ones role as a bridge between top-level managers and subordinates. The under standing of this role requires cultural, generational and emotional intelligence on the part of the middle manager. The challenge for manag ers, however, is how to move from identifying and solving organisational problems to trusting and enabling their teams to accomplish this. Experts have argued that a successful manager will have to develop the ability to build and motivate a diverse team group and help them by developing and communicat ing a compelling vision and guiding and coaching them rather than micro-managing them. This requirement, according to experts, means that managers would need to spend more of their time on these tasks rather than on the operational aspect of the organisation. A recent study in the USA suggests there is a shrinking opportunity for middle level managers in many organisa tions. According to the survey, ofce automation has been the reason for the shrinking of middle management; and those who remain doubt their future with most functions now being further automated. While this may be the case for larger multinational com panies, in small and mid-sized rms the ranks of middle managers are actually grow ing. In the USA, for example, 2.6 million new managerial and professional jobs were created in the 1983-85 period, accounting for 24 per cent of middle managers.Stuck in the middle?What makes middle manag ers important in small and medium-sized organisations is their position within the company. Middle manag ers are close to the action, with knowledge of opera tions and processes as well as rst-hand relationships with customers and front-line employees. Middle manag ers network throughout the organisation and they know where problems exist, where opportunities lie and what are the important issues. Middle managers are ultimately the leaders who will either make change happen or throw roadblocks in its way when they are THE FU T URE OF MIDDLE MANAGERS in an emerging organisationA recent study in the USA suggests there is a shrinking opportunity for middle level managers in many organisations

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47CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 A MATTER OF LA W neglected. Neglecting this group could be detrimental to the success of a company because middle management is both the proving ground and the development ground for future executives. As with any change initia tive, it is important to obtain the buy-in from middle man agers for any developmental objective. Sharing business transition goals with them and gaining their input on what leaders in the company need to do differently in the future provide important information and valuable insights. This can also help identify success factors for a leadership competency model that can serve as the basis for achieving business goals. It is imperative, therefore, that senior executives rein force developmental action plans for middle managers with follow-up discussions and coaching. They should give particular attention to on-the-job experiences that might be helpful in developing individual skills and competencies. These projects need not be large. Smaller but more meaning ful projects can provide valuable training experience while also contributing to a companys business results. By targeting middle manag ers for development, senior executives send a clear mes sage about their importance to the organisation. At the same time, middle managers impact company perform ance every day, creating the next generation of executive leaders and aligning all parts of the company for achieving business success. Commentators have also argued that middle managers can be a challenging group of employees to develop and retain. According to a 2007 Accenture survey of middle managers around the world, 20 per cent reported dissatisfaction with their current organisation and that same percentage reported that they were looking for another job. One of the lead ing reasons cited was lack of prospects for advancement. According to Thomas Col ligan, vice dean of Wharton Executive Education, many companies are seeing a signicant turnover in middle management ranks. And with signicant turnover, they do not have the ability to execute strategy. Like wise, top management can spend all their time creat ing strategy; but without someone there to implement it, you are at the end of the day where you were at the beginning.StrategyAccording to Colligan, in addition to strategy imple mentation issues, the cost of turnover is extremely high for companies. Colligan noted that one large partnership facing a 20 per cent turno ver rate did a calculation in which it concluded that for each one per cent it could reduce turnover, it would increase partner earnings by $80,000. Colligan concluded that middle managers are very important to attract, develop and retain. Some companies are becoming painfully aware of this. In conclusion, middle managers are essential in every organisation, in part, because they link senior management and the rest of the company. MEGASHI P S : IMPLICATIONS OF SIZE By Milton SamudaLadies and Gentlemen, welcome to the era of mega-sized ships!A canal yardstickThe huge expansion of the Panama Canal is scheduled for completion in 2014. Just before we started this iteration of our conversa tion through the medium of this column, the contractor, Grupo Unidos por el Canal S.A. (GUPCSA), commenced the process of permanently concreting the sites of the two new sets of locks which will transform the geography, utility and economy of the Canal. The particular process of concreting is intended to ensure service over a century so that vessels greater in size than the present panamax vessels may safely transit the Canal. The projected capacity that will be accommodated is 366 metres in length, 49 metres in beam and 15.2 metres in draught. Is this the outline of the future? Just how massive will the ships of the future be?The fact of sizeUsing the expansion of the Panama Canal as a backdrop and gauge, let us now consider the dramatic and rapid change in the size of ships. We now have container vessels of over 390 metres in length designed to accommodate 11,000 teu and therefore requiring greater portside capability, support and services. There have also been similar developments for other types of carriers. Oil tankers were already impres sive at just under 100 metres, but we now have supertank ers of over triple that size, with carrying capacities which provide intense risk to the envi ronment. Bulk carriers have not been left out, already providing challenges to both the Suez and Panama Canals. However, perhaps the most dramatic example of the explosion in the size of water vehicles is the cruise ship. The world has now grown accustomed to oating villages of over 300 metres in length and 50 metres wide carrying in excess of 3,000 passengers. The largest of the large, the Allure of the Seas, weighs in at 225,282 grt and measures 360 metres long and 64 metres wide with a draught of 9.1 metres. It can accom modate up to 6,296 guests, in 2,706 staterooms, and 2,384 crew. So, given this phenome non, what are the implications in law?The law of sizeThe most obvious implica tion of size is the increased legal risk in several areas.

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A MATTER OF LAW48 CARIBBEAN MARITIME I OCTOBER DECEMBER 2011 Any casualty, whether in port or at sea, is likely to involve more people and a greater amount of cargo and assets. The risk to the environment is also greater because of the threat of more emission pollution, more waste generation and catastrophic disasters of greater scale due to the volume of cargo carried. Those two implications are easily demonstrated by comparing two facts. On 24 March 1989 the Exxon Valdez spilled 11 million of its 55 million gallons of oil into Alaskas Prince William Sound, creating an environmental catastrophe of Biblical proportions. Todays supertankers carry in excess of 70 million gallons. The risk in terms of potential liabilities also increases due to the larger number of crew and the larger amount of cargo and number of passengers and the greater values involved with respect to each, in real terms, compounded by in ation. From the cost of insurance to the possible award of damages to third parties (for example, where cruise passengers suffer food poisoning), the sheer size of vessels has a direct impact on the existing legal framework. In this scenario, it becomes clear that both international law and municipal law must respond to these issues and their implications by further addressing diverse matters such as relevant and applicable minimum standards in relation to safety and the environment; rationale and standards of behaviour to guide conduct and limit risk; an assessment of legal wrong to determine the applicability of criminal and/or civil laws and the resultant burdens and standards of proof; bases and limits of liability relative to loss, behaviour, economy and jurisdiction; bases and extents of damages relative to those same considerations; indicators of duty, responsibility and liability so as to identify potential culpable parties; investigative of cers, tribunals and mechanisms; jurisdiction and appropriate legal forums and tribunals and the basis for sanctions. To be sure, the framework already exists at the international law level in various treaties and conventions covering subjects ranging from emissions to jurisdiction, but the details must be revisited periodically to ensure that the law keeps Name: Job title: Company name: Address: City: Country: Zip code: Tel: Fax: Email: Would you like to receive a copy of Caribbean Maritime? If so, please ll in this form and fax or e-mail us your request Printed Copy E-version Choose which version:(Tick appropriate box) Subscribe for free!pace with developments on the high seas.ConclusionThe era of mega-sized ships does not necessarily call for megasized, intrusive and oppressive regulation that will blunt entrepreneurship, development and human interaction. However, it is agreed internationally that true development must be sustainable. And, to be sustainable, it must be as harmonious as possible with the environment and human development. Human interaction must be guided so as to be facilitated in safety. So, for example, the leisure industry, which includes tourism, cannot survive internationally if we continue to allow the indiscriminate dumping of waste at sea. The maritime industry has often set the world an example of international responsibility and co-operation. We can do so again. Milton Samuda is managing partner of the Jamaican-based law rm Samuda & Johnson.The world has now grown accustomed to oating villages of over 300 metres in length and 50 metres wide