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Caribbean maritime
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Permanent Link: http://ufdc.ufl.edu/UF00099408/00016
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Title: Caribbean maritime
Physical Description: Serial
Language: English
Publisher: Land & Marine Publications Ltd.
Place of Publication: Colchester Essex, England
Creation Date: January 2012
Publication Date: 05-2012
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PORTS & TERMINALSINSIDE THIS ISSUE:CARIBBEAN MARITIMECELEBRATING FIVE YEARS OF SERVICE TO REGIONAL SHIPPINGPANAMA CANALOBSERVATIONS AND EXPECTATIONS OF AN EXPANDED CANAL CSA PORT AWARDSPROMOTING DEVELOPMENT FOR 25 YEARS JACKSONVILLEAn ideal hub for distribution 2007-2012 No. 16 I MAY SEPTEMBER 2012

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25 351 Cover StoryViews 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.2 EDITORIAL Good now seems to be outweighing the bad3 M E SSAG E FRO M TH E C SA PR E SID E NT Giving a voice to our shipping industry41 GRA PEV IN E 44 BRIDG EV I E W Managing change: 25 billion now what?46 T H E H U M AN F A C TOR Changing an organisations culture for survival47 A MATT E R OF L AW Climate change, policy and the Caribbean Sea (a Jamaican initiative) Regular Features5 J A CK SON V ILL E An ideal hub for distribution No. 16 MAY SEPTEMBER 2012 8 C SA PORT A WARDS Promoting development across the Caribbean 10 5TH A NNI VE RSARY M IL E STON E Celebrating ve years of service to regional shipping16 5TH ANNI VE RSARY P HOTO R EV I E W Recalling ve years of Caribbean Maritime20 G UYANA Development of the Demerara port, Guyanas most urgent priority23 SURINA ME Moengo port facilities up and running25 C URA AO Curaao sees growth Plans for development being kept under the radar27 R EB RANDING P ORT M IA M I Call it rocking PortMiami30 A PM T E R M INALS A W IN WIN M OD E L Developing public-private partnerships32 C SA P HOTO AL B U M 34 COSTA RI C A Moin a new terminal in the making35 C OLO MB IA Cartagena continues in growth mode, sets new record36 P ANA M A C ANAL EXP ANSION U P DAT E Road bridge project under way37 P ANA M A C ANAL EXP ANSION O B S E R V ATIONS EXPEC TATIONS 38 P ANA M A C ANAL EXP ANSION CHALL E NG E S Implications for Caribbean ports Special Features Special Features 2007-2012 Contents

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No. 16 MAY SEPTEMBER 2012 Time seems to drag when times are difcult. T o the contrary, it seems to slip quickly by when you are having fun. T hese erroneous perceptions are familiar to most. A s we all know, time goes by at the same measured pace, minute by minute, day by day. H owever after ve to six years of a global recession, the shipping industry may be excused for feel ing that it has been an eternity since buoyancy and growth were the norm. As we go to press, celebrating the fth anniversary of this publication, we note the con tinuing ow of mixed signals as we search for signs that suggest a return to life and balance sheets as we once knew them. And, like the proverbial drowning man, we instinctively grab at anything resembling hope that is oated. The latest Shipping Condence Survey from international accountant and shipping adviser Moore Stephens stated that overall condence levels in the shipping industry increased slightly in the three months ended February 2012, to reach their highest level since May 2011. This was the third successive quarter in which there was a small improvement in condence.P R E DI C TIONSThat aside, container and bulk shipping lines are still feeling the pinch, on both cheeks excess capacity and weak freight rates while being hammered by rising fuel costs. In some areas, rates have reportedly begun to improve, if only marginally, but not many are taking bets that the trend will persist. As one analyst points out, fuel prices may fall as demand drops off, but its price is driven by so many unconnected factors that it would be insane to base any cost predictions on a decreasing oil price. Meanwhile, production in Chinas factories fell for the third consecutive quarter between January and March, causing renewed fears for global shipping. Mixed signals indeed. As we celebrate the fth anniversary of Caribbean Maritime, with the theme Ports and Terminals, we look back over the past ve years that this publication has served the regional shipping industry. The recession into which Caribbean Maritime emerged in 2007 is still with us; however, it appears that things are not getting much worse, even if a recovery is not happening as fast as we would like. The IMF now expects growth to accelerate this year as Europe exits a shallow recession and is predicting growth in Europe and the USA in 2013. The Panama Canal Expansion project, featured extensively in this issue, is proceeding apace and there are many other positives including a slight but continuing improvement in the US job market. Indeed, there are more positive signs now than at any time during the past ve years and there has been signicant growth and expansion of the maritime industry in the Caribbean and Latin America, as documented in this publication. Mixed signals there are, but the good now seems to be outweighing the bad.Mike JarrettEditor, Caribbean MaritimeMIXED SIGNALS AS CARIBBEAN MARITI M E CELEBRATES 5TH A NNIVERSARYThe official journal of the Caribbean Shipping AssociationM ISSION STAT EME NT T o 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. G E N E RAL C OUN C IL 2011-2012 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: Roland Malins-Smith Group C Representative: Stephen Bell Group D Chairman: John Abisch Director Information and Public Relations: Michael S.L. Jarrett Caribbean S hipping A ssociation 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 E DITOR Mike Jarrett Email: csa-pr@mikejarrett.net P U B LISH E R : 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 association2 5TH ANNIVERSARY EDI T ION2007-2012 Editorial

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Giving a voice to our shipping industryThe C SA meets on N orth A merican soil in May, courtesy of the Jacksonville Port A uthority, for the annual convention of the shipping industry of the Caribbean and L atin A merica. T he 11th annual Carib bean S hipping Executives Conference will bring into sharp focus the many issues and concerns with which we grapple at this time. This conference has developed over time into an effective forum for dealing with nuts-and-bolts issues. The discussions are of a very high standard and the treatment of topics reects the latest thinking. Develop ments, trends and shifts come under the microscope, making the Caribbean Shipping Executives Conference not only meaningful but immediately useful.P RO B L EM SOL V INGDiscussion sets the stage for problem-solv ing. And forums which facilitate discussion are therefore critically important in the search for solutions. Such are the forums of the CSA, whether they be our annual confer ences, training seminars or this magazine, Caribbean Maritime.S E AR C H FOR SOLUTIONSCelebrating its fth anniversary, Caribbean Maritime has met expectations and in some instances has surpassed what was expected when it was established. The coverage of the magazine has extended across all the Americas and its high quality has been sustained. More than this, it has provided a forum for discussion of regional shipping at the leadership level. This makes Caribbean Maritime important in the search for solutions. The CSAs effectiveness in sustaining a viable regional network of industry leaders and in building a consensus around devel opment issues, is supported and assisted by this magazine. Through its pages, the state and progress of the shipping industry of the Caribbean and Latin American region over the past ve years have been tracked and monitored. It has given a voice to players in the industry. It has presented articles which teach and articles which stimulate man agement ideas. It has become a research tool for students and researchers. And, it is delivered free of charge to anyone who is interested. This magazine is a development tool. It is a CSA gift to the regional and, indeed, global shipping industry. Carlos UrriolaPresident, Caribbean Shipping Association The coverage of the magazine has extended across all the Americas and its high quality has been sustained3 5TH ANNIVERSARY EDI T ION2007-2012 President's Message

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PLIPDECO ADVERT

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Satised customers nd Jacksonville ...An ideal hub for distributionWith thousands of acres of new warehouse and distribution facilities joining the millions of square feet of such operations already in place, the Jackson ville area is poised to signicantly enhance its position as a preferred logistics hub in the US S outheast. For our growing customer base, the ability to formulate a cost-saving strategy, leveraging different products of their supply chains, represents new efciencies that t todays economic demands, said Raul Alfonso, senior director, trade development and global marketing for JAXPORT. Simply said, shippers can do more with less and such rationalisation is setting a new shift to the pace of logistics around JAXPORT. With access to more than 55 million consum ers within an eight-hour drive, shippers can take advantage of Jack sonvilles location at the crossroads of three interstate highways I-95, I-10 and 1-75 to get their goods quickly to market. More than 100 trucking and drayage rms operate in and around JAXPORT to take advantage of the citys highway system. In addition, importers and exporters shipping through Jacksonville enjoy services from Class I rail networks CSX and Norfolk Southern as well the regional rail line Florida East Coast Railway.P ARTN E RSDistribution points receive cargo from JAXPORTs three marine terminals, which enjoy worldwide carrier services and are capable of handling every type of general and project cargo. From breakbulk to containers to vehicles to bulk, JAXPORT and its maritime partners handled more than 8 million tons of cargo in 2011. With its unique ability to serve as a hub for inbound and outbound cargo and for distribution of goods throughout the US Southeast and beyond, it is little wonder that Jacksonville is develop ing a burgeoning reputation as Americas Logistics Centre. JAXPORT and Jacksonville are increas ingly top of mind for shippers as word spreads of the efciencies we offer, said JAXPORT chief executive Paul Anderson. Leather goods leader Coach Inc has been sold on the advantages of Jack sonville since 1995, when the rm opened its original 300,000 sq ft distribution centre in Jacksonville. And the companys top logistics professional believes the area and its port offer still more benets today. Jim Prior, Coachs divisional vice presi dent for transportation and trade compli ance, said Coach now had 850,000 sq ft of distribution facilities in Jacksonville, serving stores throughout the United States and 5 With access to more than 55 million consumers within an eight-hour drive, shippers can take advantage of Jacksonvilles location JAXPORT chief executive Paul Anderson JAXPORT senior director for trade development and global marketing Raul Alfonso Jaxport

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Canada. Mr. Prior pointed to the introduction in 2008 of MOLs Asian service into Jackson ville as a key development. We took advantage of the very rst ship, and weve probably had containers on the service every week since, he said. MOLs 158-acre TraPac Container Terminal is to soon be joined at JAXPORTs Dames Point Marine Terminal by another leading-edge container terminal to serve vessels of Hanjin Shipping Co Ltd and its alliance partners. Mr. Prior said he was impressed by the very easy out and in access between Dames Point docks and Coachs distribution centre, about 15 to 20 minutes away, as well as by manufacturer of graphic paper products, cited favourable backhaul intermodal and trucking rates and rail options offered by CSX Transportation and Norfolk South ern Railway among attributes that make Jacksonville ideal for serving the Southeast, as well as more competitive for serving Mid west customers than mid-Atlantic ports. UPM annually brings some 500,000 tons of graphic papers from Finland via Spliethoff ves sels into Jacksonvilles port and the distribu tion facilities of Jacksonville-based Seaonus. I think Seaonus and JAXPORT have been excellent partners with UPM, said Mr. Bauer. We like to think we have a competi tive advantage and that our supply chain is one of our best selling points. Seaonuss vice president for business development and customer relations, Rick Sharp, said his rm, which operates about 330,000 sq ft of multi-temperature facilities and 720,000 sq ft of dry warehouse space in Jacksonville, was looking to leverage Jacksonvilles advantages to link markets from Latin America to Europe with the US Midwest in addition to the Southeast. Seaonus is partnering with CSX in an initiative to offer a 56-hour transit time between Jacksonville and the Chicago area. This year, Seaonus hopes to make this link via a distribution facility the company is building in Kingsbury, Indiana, about 40 miles south-east of Chicago. In addition to bringing imports into the Midwest, this effort should facilitate outbound shipments of poultry, pork, beef and other commodities from the Midwest to Puerto Rico and Caribbean markets via Jacksonvilles port. 6 We made the strategic move to consolidate operations into Jacksonville as the port has developed greater inbound capability from Asia JA XPORT facilities are served by over 30 shipping lines, combining to offer services throughout the Caribbean, including Puerto R ico, Central A merica, S outh A merica and Mexico as well as A sia, A ustralia, the Middle East, the Mediterra nean, Europe and A frica. Ocean carriers serving JAXPORT include: Abou Merhi Lines Aliana Lines Inc American Roll-On Roll-Off Carrier (ARC) APL Atlantic Container Line (ACL) CMA CGM COSCO Crowley Liner Service CSAV Eukor Frontier Liner Services Great American Lines (GALI) Grieg Star Shipping Gulf Africa Line Hamburg Sd N.A. Hanjin Shipping HMM Hegh Autoliners Horizon Lines K-Line Liberty Global Mediterranean Shipping (MSC) Mitsui OSK Lines MOL (America) Inc Nordana Line NYK Line (NA) Inc Sea Freight Line Sea Star Line Spliethoff Trailer Bridge Wallenius Wilhelmsen Lines Yang MingJAXPORT served by 30-plus ocean carriersexcellent JAXPORT security, quick availability of containers at the port, and competitive trucking rates. Jacksonville gives Coach three-day delivery to stores in California with two-driver teams of truckload carriers.FA C ILITI E SMichaels Stores Inc, North Americas No 1 arts and crafts retailer, uses more than 500,000 sq ft of Jacksonville distribu tion facilities to serve its stores throughout the Southeast, as far north as the District of Columbia and west to Louisiana, accord ing to Rich Markovich, Michaels director of international logistics and compliance. We made the strategic move to consoli date operations into Jacksonville as the port has developed greater inbound capability from Asia, said Mr. Markovich. A real point of strength is the workforce in the Jackson ville area on top of the dynamics that make Jacksonville a very attractive place when it comes to domestic transportation. Mike Bauer, North American logistics manager for UPM, the worlds leading Jaxport

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Carriers are also taking note of Jackson villes cost-efcient logistical connections. JAXPORT has proven to be critical not only for exports but also import cargo, especially with our new direct ve-day transit from Puerto Limon, Costa Rica, said David G. Ross, executive vice president of Miami-based SeaFreight Agencies (USA) Inc. This service places imported fruit at the doorstep of many of the major distribu tion centres in the Southeast.BE N E FITINGIndicative of the companies that are benet ing from Jacksonvilles logistics eminence is Bridgestone Americas Tire Operations LLC, based in Nashville, Tennessee, which in 2008 opened a 1 million sq ft distribution facility at Cecil Commerce Centre. Robert Gardenhire, Bridgestones general manager of warehousing, said the facility was a hub for tyre imports from Latin America and, potentially, Asia. He was impressed by the business-friendly approach of profession als in Northeast Florida. The people in the region, whether at the port or in the Jacksonville business com munity, continue to be user-friendly, and we do appreciate that, said Mr. Gardenhire. They are supportive of our presence and are good business partners. JAXPORT executive vice president Roy Schleicher said: The distribution segment of the industry is forging forward in Jack sonville because of our location, a growing population and the new services that we offer to our customers. Our new east-west trade capabilities can connect very nicely with our north-south trade and establish new relationships and partnerships for the future. The abundance of third-party logistics companies and warehouse capac ity in this area truly makes Jacksonville Americas Logistics Centre. 7 JA XPORT s three cargo terminals handle every type of general and project cargo. F rom bulk to containers to vehicles to breakbulk, J A XPORT moved more than 8 million tons of cargo and over 520,000 vehicles in 2011. Jacksonville now ranks among the top container ports in the United States and is one of the countrys busiest vehicle handling ports. At its 173-acre Talleyrand terminal, JAXPORT handles containerised cargoes, passenger vehicles and breakbulk com modities, including paper, frozen poultry, beef, steel and lumber. S E R V I CE SThe 754-acre Blount Island Marine Terminal is JAXPORTs largest container facility and one of the biggest vehicle import/export centres in the US. The terminal also handles ro-ro, heavy lift, breakbulk and liquid bulk. JAXPORTs Dames Point Marine Terminal is home to the 158-acre TraPac Container Terminal, where vessels from Tokyobased MOL and other carriers offer direct containership services with global reach. Immediately to the northwest of the TraPac Terminal, JAXPORT is working with Hanjin Shipping Co towards the development of a new 90-acre automated container terminal. JAXPORT terminals feature 18 container cranes, on-dock refrigerated and freezer warehousing, Foreign Trade Zone status and outstanding intermodal connections. To help speed goods to market, shippers can take advantage of Jacksonvilles location at the crossroads of three major railroads (CSX, Norfolk Southern and Florida East Coast Railway) and three interstate high ways (I-95, I-10 and 1-75). Jacksonvilles port offers high container crane productiv ity averaging 37.5 moves per hour and fast truck turnround times averaging 15 minutes for one move and 23 minutes for two moves (drop-off and pick-up). A network of privately owned maritime facilities also operates in Jacksonvilles harbour and in Northeast Florida more than 65,000 jobs are related to port activity, which creates an economic impact of almost $19 billion annually.R AIL, ROAD LIN K S The Port of Jacksonvilles rail and highway connections are among top advantages offered to shippers choosing the growing Northeast Florida cargo gateway. Lad Daniels, former president of the Jacksonville-based First Coast Manufactur ers Association, said: Jacksonvilles inter modal capabilities are second to none and offer growth opportunities for manufactur ers and distributors seeking to expand their presence in the Southeast and Midwest. JAXPORT terminals are served by two Class I railroads CSX and Norfolk South ern as well as the regional Florida East Coast Railway. CSX provides port custom ers with access to its 22,000-mile network encompassing 23 states and Canada, while Norfolk Southern covers 21,000 route miles through 22 states and the District of Colum bia. FEC offers multiple daily departures serving Florida locations. Future developments include plans to invest in a new intermodal container transfer facility. Projected to open as early as 2014, this new facility will complement existing on-dock rail at JAXPORTs Tal leyrand Marine Terminal and Blount Island Marine Terminal and will further enhance the competitiveness of the TraPac Container Terminal in providing swift and efcient movement of growing cargo volumes through Northeast Florida. More than 100 drayage and interstate trucking rms also operate in and around Jacksonvilles port, enjoying swift truck turnround times and ready access to such interstate highways as I-95, I-75 and I-10. Competitive rail service and superb high way connections give a major edge to compa nies that move goods through Jacksonville, said JAXPORT chief executive Paul Anderson.JAXPORT facilities handle every type of cargo

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Perhaps the greatest contri bution to regional develop ment that the C SA has made in its 40-year history is the host ing of the annual Caribbean Port A wards competition. On the request of the CSAs governing General Council, the CSAs Port Award Committee met in retreat in Jamaica in January and began a process of overhauling and improving this event. Out of this one-day retreat, a number of improve ments for the 2012 Caribbean rst meetings, I have been part of the development and evolu tion of this regional event.INS P IR E DAgainst this background, I boldly make the claim that this single event has been, historically, one of the most important activities in Caribbean business, simply because it has inspired and encouraged development of a vital aspect of economic life. By acknowledging and reward ing best practices on marine terminals, in a region domi nated by island-states, the CSAs port award competition has over the years brought attention to the need for efcient, dependable, secure marine terminals. After all, an island-state with no overland economic links with trading partners must depend heavily on its ports and marine termi nals for the very existence of its people. In this scenario there is little room for inefciency and unreliability. For almost a quarter of a century, since 1987, the CSA Port Awards competition has brought recognition and respect to many marine ports across the four language groups of the Caribbean and Latin America. Many of these marine facilities have been recognised by the CSA for successes in various aspects of terminal operations, taking awards for Dependability, Ef -PRO M OTING DEVELO PM ENT A C ROSS THE CARIBBEAN FOR 25 YEARS New trophies acquired. Barbados wins again 8 The CSA Port Awards competition has brought recognition and respect to many marine ports across the Caribbean and Latin America By Mike Jarrett Port of the Year competition were discussed. Ever since it was launched in 1987, the Caribbean Port Awards has encouraged and stimulated best practices in marine terminals across the entire Caribbean and Latin American region. This was the reason for its establishment and it has fullled this role for almost a quarter of a century.B RAIN C HILDAlthough it was the brainchild of the CSAs rst PR director, Anthony Gambrill, mine was the task of creating an identity for this CSA initiative; an iden tity that would nd credibility among CSA members, govern ment authorities and news media across the region. From writing the early news releases in 1986 and 1987, subsequent news features and speeches and as a de facto member of the CSAs Port Award Committee since its very Point Lisas (PLIPDECO) Guadeloupe The old trophy: Port of Bridgetown displays its early successes C SA Port A wards

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ciency, Growth and Development and, since 2001, Security. Of the many, about a dozen have won the top award and the trophy for being the best in the region. With the rapid change and advancement in mari time industries, driven by the technological revolution of the late 20th century and the digital age of the 21st century, this event has undergone more change than any other CSA programme. At various times in its history, the CSA Port Award Competition has been tweaked, expanded and retted to meet the changes and challenges brought by the introduction of new systems, emerging ideas, improved methods and increased demands placed on marine terminals. Indeed, the only thing constant about this CSA event is change. This competition has assisted a number of Caribbean ports and terminals to market their facilities and to promote their development and expansion programmes to a world audience. The Caribbean Port Award competition has helped to attract new business for regional seaports and has helped to validate the efforts and initia tives taken by local port authori ties and terminals to upgrade and improve their facilities.C O MPE TITIONThe competition encourages and promotes port development and efcient port operations. It recognises those ports that have sustained a high level of efciency while maintaining programmes for ongoing devel opment of human resources as well as management and operational systems. Indeed, no other single event in the Caribbean and Latin America has done more to encourage efciency and development of marine terminals and seaports than the CSAs annual Carib bean Port Award competition. Each year, the CSAs Port Award Committee compares the performance of partici pating ports. The Committee looks at operational efciency, dependability of services and at programmes and initia tives implemented to achieve higher levels of productivity, growth and development. A high premium is placed on meas ures to make port facilities safer and more secure. At the end of the process, the CSA is able to announce to the world those Caribbean ports and terminals that have achieved high standards of operational performance.S IZ E NOT A FA C TORSize and budget are not deter mining factors in selecting the winning ports and terminals. Rather, the CSA looks at perform ance, improvement and security. This means that any port in the Caribbean can win the top prize or any of the various sectional prizes, providing its management sys tems are sound and its corporate outlook is progressive. In 2011, for example, two of the regions smaller ports won the major prizes. Paramaribo, Suriname, won for the rst time, taking home the Luddy Stewart trophy for Best Multipurpose Terminal. Fort-de-France, also winning the top award for the rst time, was named Best Container Terminal in a region with container terminals that are many times bigger. St Lucia won the top award for Best Multi purpose Terminal in 2009 and Guadeloupe won it in 2008. The guiding principle of the Port Award Committee has been: its not how big you are; its how good you are. For list of winners since the inception of this competition visit the CSA website (www.caribbeanshipping.org); About CSA; Caribbean Port Awards. 9 Size and budget are not determining factors in selecting the winning ports and terminals Martinique Barbados (Sectional prize) Kingston Wharves Ltd. (Sectional Prize) Colombia Suriname

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In January 2007 the General Council of the Caribbean Shipping Association accepted proposals for the establishment of a magazine to serve its interests. The new magazine, as proposed by the Associations Director of Information and Public Relations, was to become the publication of record for the regional shipping industry and the of cial organ of the CSA. There was scepticism initially by many within and without the CSA. Publications produced by not-for-pro t organisations are not known to be nancially self-suf cient over time. Indeed, the CSAs previous magazine had failed, but not just for economic reasons. It had become editorially weak, irrelevant and had lost the respect of its readers. Adamant that, despite the legacy of doubt and uncertainty, Caribbean Maritime could be successful, the CSAs PR Director persisted with initiatives to develop and launch a new magazine worthy to be called the of cial journal of the Caribbean Shipping Association. In October 2006, riding one of the hemispheres oldest railroads, across the isthmus of Panama, Mike Jarrett sat with Gary Gimson, Managing Director of Land & Marine Publications Ltd, of the UK, and again raised with him the possibilities of launching a magazine to document the history and development of the Caribbean shipping industry. The publication was to be self-supporting, with no nancial assistance from the CSA. Why should this attempt be any different, Gimson asked. Why shouldnt the proposed publication not also fail like the previous CSA magazine? Mike argued that with high standards of journalism, knowledgeable writers and high publishing standards such as Land & Marine was known for, success could be achieved. Gimson, still sceptical about the economic feasibility but loyal to the Caribbean and the CSA, took the decision to give the new magazine, which Mike had by then named Caribbean Maritime, a try. DISCUSSIONSThe two decided that three years was all that could be afforded for this trial period. These discussions were being held even as the economies of the world headed for one of the most crippling recessions ever. Within one year after that meeting on the train in Panama, people in the USA were losing their homes to foreclosure and their lifelong savings to bank failures. Caribbean Maritime started its early years in the most hostile situation imaginable, riding an economic storm that raged across the entire planet. The rst issue of Caribbean Maritime came off the press in May 2007 and was well received by the membership of the CSA. In his editorial column in the rst issue, headed Pursuit of Excellence, the Editor wrote: The mission of Caribbean Maritime is to support and facilitate the CSA so that the Association may achieve its goals. This we will do through the pursuit of excellence. With relentless effort and attention to detail, Caribbean Maritime will achieve excellence and hence sustainability. Three issues a year have been produced since May 2007 and the publication has never been late. Unlike its predecessor, it is not abandoned as garbage by CSA members at the end of CSA conference. To the contrary, readers are careful to take their copies with them and often seek to get a second or third to take home. As the still edgling Caribbean Maritime celebrates its fth anniversary, it already enjoys the respect of the shipping industry within the Caribbean and without. Its articles and commentaries are quoted widely. It is circulated in hard copy and via the internet in the Americas, Europe and Asia. It has become an authoritative source of information as it documents the work, achievements, concerns and aspirations of the CSA, its members and stakeholders in the shipping industry of the Caribbean and Latin America. CELEBRATING FIVE YEARS OF SERVICE TO REGIONAL SHIPPING 10 2007-2012It already enjoys the respect of the shipping industry within the Caribbean and without the possibilities of launching a magazine to document the history and development of the Caribbean shipping industry. since May 2007 and the publication has never been late. Unlike its predecessor, it is not abandoned as garbage by CSA members at the end of CSA conference. To the contrary, readers are careful to take their copies with them and often seek to get a second or third to take home. As the still edgling celebrates its fth anniversary, it already enjoys the respect of the shipping industry within the Caribbean and without. Its articles and commentaries are quoted widely. It is circulated in hard copy and via the internet in the Americas, Europe and Asia. It has become an authoritative source of information as it documents the work, achievements, concerns and aspirations of the CSA, its members and stakeholders in the shipping industry of the Caribbean and Latin America. 10 5th Anniversary milestone

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11 When you participate in the annual meetings of the CSA in October each year, or in the Caribbean Shipping Executives Conference in May, it is easy to recognise that this is a very diverse and unique association of vessel owners, agents, ports and terminal operators and, as of late, NVOs and forwarders. Unique, because the group comprises not only the full spectrum of the maritime industry and its peripheral services but also the private sector and government institutions. Yes, we are all members of the Caribbean Shipping Association. We meet, we compare notes, listen to presentations. We provide training for our young people and we network. Sometimes we argue, for the bene t of all members and for the bene t of the Caribbean region and its people. What keeps us together? No doubt, the common interest but it needed some glue. Our Editor Mike Jarrett some ve years ago came up with the proper concoction: a kind of glue that keeps our members together and provides reading material for those who care to know about us and what we stand for. He calls it the Caribbean Maritime magazine. You read about developments in the region and its ports, controversial issues, legal aspects, members points of view and much more, not to forget a kaleidoscope of social activities, which shows without a doubt a healthy and happy family. In short, the glue is working. The magazine is a full success. We need it.A kind of glue that keeps our members together Frank R. Wellnitz,Director, Caribbean Feeder Services Ltd and Past President, Caribbean Shipping Association One of the greatest tools CSA has to achieve its present and future goalsAlthough my travels have been limited in recent years, I always try to keep informed about the Caribbean Shipping Association and its continuous progress. My active days with CSA placed a chip of a ection in my heart and my memories of those days are a treasure to me. The Caribbean Maritime has emerged to be of a quality second to none and its information is of great assistance to me and my management sta Our Caribbean shipping industry is always reinventing itself and has to continue this path to be able to maintain its quality level of the services it o ers. I am proud to have seen CSA grow to improve the level of services to the principals to gain their respect and appreciation. This publication is one of the greatest tools CSA has to achieve its present and future goals.Luis A. Ayala-Parsi,Past President, Caribbean Shipping Association The publication has consistently informed and with quality reportingThis publication is a signi cant contributor to the livelihood and well-being of the people of the Caribbean. Many take maritime transportation for granted, not realising that it is an important part and has always been of the global economy. In an increasingly globalised world, the publication has consistently informed and with quality reporting about the regions shipping, its ports, its port security issues, port and shipping logistics, port and shipping modernisation, and problems and issues related to ports and shipping in the region. The Caribbean Institute of Media and Communication (CARIMAC) of the University of the West Indies Mona Campus in Jamaica that has students from across the Caribbean, has consistently used the publication to (a) inform students of the importance and value of the shipping industry and shipping services to Caribbean economic development, and (b) as a quality publication to demonstrate an approach to specialist journalism that informs about important aspects of Caribbean development.Canute James, PhDDirector and Senior Lecturer Caribbean Institute of Media and Communication (CARIMAC) University of the West Indies

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12 The magazine provides a very important forum for the industry and its partnersAs Minister responsible for shipping in the Government of Barbados, I am very pleased to have this opportunity to congratulate Caribbean Maritime on the attainment of its fth anniversary. The Government of Barbados recognises that the magazine provides a very important forum for the industry and its partners to be kept abreast of issues which are of signi cance to the entire maritime community of Latin America and the Caribbean, the sphere of operation of the now 40-year-old Caribbean Shipping Association Barbados remains committed to maritime safety and security and the protection of the marine environment and in this regard a comprehensive review of our maritime administration will shortly be undertaken with a view to enhancing its administrative, operational, regulatory and legislative aspects. We are working with the Barbados Port Inc. and other relevant agencies to improve the infrastructure and ensure increased safety and security at our port of entry. At the regional level, the Government of Barbados is very pleased that, as of May 1, 2011 the wider Caribbean Sea has been declared a Special Area under Annexe V of the International Convention for the Prevention of Pollution from Ships (Marpol), thereby protecting our fragile marine environment from the disposal of garbage. Barbados recognises the role played by shipping and its range of maritime activities in the socioeconomic fabric of the region and will therefore continue to support regional initiatives relevant to the growth and development of the shipping industry. I am happy to wish Caribbean Maritime every success as it continues its work on behalf of the region. The Hon. E. George Hutson, Minister of International Business and International Transport of Barbados Recording and amplifying the voice and vision of Caribbean ShippingAchieving your fth birthday while remaining fresh, vibrant, topical and interesting means one thing: you got it right rst time. As a long-serving member of the Caribbean Shipping Association, with a lot of water under my hull (sorry, Schettino), I wish to congratulate Caribbean Maritime and its inimitable editor, Mike Jarrett, for recording and, indeed, amplifying the voice and vision of Caribbean Shipping. Under the heading Spirit of the CSA in edition No 13 (May to September 2011) on Page 47, the rst paragraph so succinctly states who we are and what we do, that it is worth repeating here: The Caribbean Shipping Association has been a binding force for over 40 years. It brings together, in a vast network, the leaders and decision-makers in the shipping industry of the Caribbean and Latin America as well as North America. The Associations sphere of in uence includes countries and territories from four language groups English, Spanish, French and Dutch from the northern coast of South America, across the Caribbean and Central America, to North American ports on the Gulf of Mexico and the Florida peninsula (the region). If the foregoing statement were a mathematical test, we could simply state: QED. This is what we do. The Italians of infamy would say cosa nostra and the Trinis would declare that wine is what we do; beer is what we drink. Shipping is what we do, and in vibrant Caribbean style. And nowhere else is it captured, in print and photo essays, as in Caribbean Maritime So, Mr Editor, I salute you and your publication with the rm conviction that these rst ve years are just a period that portends a future lled with timely information and the exciting quality articles that will continue to make Caribbean Maritime a cover-to-cover read. Bravo, Caribbean Maritime David Harding,Chairman of Barbados Port Inc. and Past President, Caribbean Shipping Association 5th Anniversary milestone

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We are proud to have Caribbean Maritime as an ongoing part of the Digital Library of the CaribbeanCaribbean Maritime is an amazing resource for businessmen, scholars and students because of its pan-Caribbean coverage of Caribbean ports and the Caribbean maritime industry and all of its aspects, including both shipping and tourism. It is totally unique in its eld. We are proud to have Caribbean Maritime as an ongoing part of the Digital Library of the Caribbean.It has been a pleasure working with Caribbean Maritime Caribbean Maritime has been a true partner and a solid medium for us at Wrtsil to share our expertise. As Editor Mike Jarrett pointed out some years ago, Caribbean Maritime is the tool that the CSA employs to stimulate a regional dialogue for solutions. This magazine truly stands to his statement. It has been a pleasure working with Caribbean Maritime to accomplish our common goals in delivering solutions and up-to-date discussions to the Caribbean shipping industry. We in Wrtsil plan to continue the collaboration with Caribbean Maritime and wish this top-notch editorial much success in the coming years. Will Canova,Newspaper Projects Coordinator, Digital Library Centre & Florida Digital Newspaper LibraryTamara A. Rivera,Marketing & Communications Administrator, Wrtsil Caribbean Inc. 13 This magazine has complemented the work of the CSA to the fullestUpon the rst issue of Caribbean Maritime published in May 2007, it was said that the journal would be a major institution in the work of the Caribbean Shipping Association. The philosophy then was that the journal would support the growth and development of the maritime industry in the Caribbean by providing relevant information. Over the past ve years this journal has done that and much more. It has proven to be a major source of information on all aspects of the industry, whether cargo shipping, the cruise industry, operations on the ports or key organisations that drive the development of the industry. This magazine, which is the regions leading magazine of its type, has complemented the work of the CSA to the fullest. The magazine has garnered tremendous popularity because of the relevancy of the articles covered. I congratulate the team as their hard work, perseverance and commitment has helped the magazine to reach this milestone. As a past president of the CSA, I am proud and honoured to be associated with its publication over the ve years. I know the publication will continue to enjoy worldwide readership and provide a forum for the exchange of ideas which will support the growth and development of the industry. Congratulations! Corah Ann Robertson-Sylvester,CEO, Seaboard Freight & Shipping Jamaica Ltd and Past President, Caribbean Shipping Association is an amazing resource for businessmen, scholars and students

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14 14 I have seen the quality of the publication go from strength to strengthCaribbean Maritime has, indeed, been the standard-bearer for the regional shipping community in being relevant, up-to-date and informative. I have seen the quality of the publication go from strength to strength and today I can proudly say it is one of the premier shipping publications. Many of the stakeholders in the industry, both regionally and internationally, now use the publication as a credible source for information, staying abreast and remaining connected. It is now a major marketing tool as well for players in the industry. Congratulations to the Caribbean Maritime publishing team for continuing to maintain the interests of stakeholders in a positive and profound way. Ashley Taylor,President, Point Lisas Industrial Port Development Corporation (PLIPDECO) As you reach your fth anniversary, let me salute this special journalThrough a friend who writes a column for your magazine, I have watched the publication and read with surprising interest the content of the last couple of years. Your magazine is an excellent publication and I like many of its elements. The glossy, contemporary look of the publication is attractive. The cover always has an intriguing photograph and the contents page, broken down in a logical way, is conveniently placed, with colour photos that break up the print and welcome the reader to enjoy and learn. The contents are clear and precise. The mission statement placed at the top of the page near the front, under the name and issue date, clearly de nes this as the publication of record, linking nations, islands, cultures and ideas in a thrust for regional development. The editorial page is interesting and in the following pages you deliver comprehensible, diverse and informative material in a pleasing, colourful fashion. I like the articles throughout, but have a great appreciation for the in-depth features, including the one in No 11 (October to December 2010), Pages 25 to 33, on the chronology of the oil rig disaster that began with the terrible event of April 20, 2010. The details, photographs and charts provide critical information that helps the layman (and, I suspect, the expert) to understand the sequence of events of the accident, as well as the terror of the days that followed. The clarity and recording of detail is the best I have seen anywhere, including the top newspapers and news magazines of the world. As you reach your fth anniversary, let me lift a glass and salute this special journal and congratulate the editor, writers, sta and layout people for jobs well done. Georg R. Sheets, Historian, Publisher and Literacy Advocate, Harrisburg, Pennsylvania, USA I encourage you to continue publishing for another 50 years!Thank you so much for your willingness to archive Caribbean Maritime with the Digital Library of the Caribbean. High-quality industry publications such as this one are valuable to your current subscribers and to a variety of researchers for decades to come. Congratulations on your fth anniversary. I commend you for the work you have done so far, and I encourage you to continue publishing for another 50 years!Brooke Woolridge,Project Director, Digital Library of the Caribbean, Florida International University, 5th Anniversary milestone

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15 15 Second to none it keeps the membership well advised Caribbean Maritime has been with us for ve years now. It is the o cial magazine of the Caribbean Shipping Association and it keeps its membership well informed by: Latin America, even touching on the US ports that rim the Caribbean Sea and learned opinions This publication is second to none, as its on-time delivery keeps the membership well advised as well as in eager anticipation of upcoming meetings. Indeed, its readership and participation stretches worldwide as shipping by its very nature embraces the world. A few publications ago, keeping up with world trends, Caribbean Maritime went electronic. This, I think, was a master move. As we know, travel is an integral part of this business, so having this valuable and entertaining publication on line facilitates us even more. Caribbean Maritime by no means came easily. It is by dint of the hard work performed by Mike Jarrett that we are here. Mikes no-nonsense attitude for meeting deadlines and producing quality documents is why we are here. So, Mike, to you and your team, congratulations, and I look forward to continue reading and keeping up to date with Caribbean Maritime Captain Rawle Baddaloo,Past President, Caribbean Shipping Association electronic. This, I think, was a master move. As we know, travel is an integral part of this business, so having this valuable and entertaining publication on line facilitates deadlines and producing quality documents is why we are here. So, Mike, to you and your team, congratulations, and I look forward to continue reading and keeping up to On the cutting edge in providing information on key issues facing the industryOn this your fth anniversary, I hereby extend my heartiest congratulations on behalf of Seaboard Marine to the team at Caribbean Maritime. The publication continues to play a critical role in the Caribbean maritime industry through its insightful presentation of information relevant to the further growth and development of the sector. It is commendable that the publication has remained on the cutting edge in providing information, whether it be relating to new trends in the industry, best practices or key issues facing the industry. Of note is its commitment to highlighting the various ports as well assisting in promoting the transportation sector in this region. In addition, Caribbean Maritimes continuous and unwavering support to the Caribbean Shipping Association as its o cial publication has facilitated the further strengthening of that organisation and its position as a voice for all stakeholders within the Caribbean maritime industry. As a stakeholder within that landscape, Seaboard Marine is grateful that the publication still remains as a source of data and analysis of opportunities and threats to the sector. I wish for the organisation every success in the future. Stephen Bell,Regional Vice President, Seaboard Marine

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16 1 2 3 4 9 8 11 12 13 18 19 24 16 17 22 23 5th A nniversary photo review

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FIVE YEARS OF C ARIBBEAN M ARITI M E(1) CSA training course on Strategic Management for Cargo and Cruise Opera tions held at the Dutch Caribbean Training Centre in Curaao on April 4 and 5, 2006. Mr. Fritz Pinnock led participants from Barbados, Aruba, Antigua, Curaao and Bonaire through discussions about practical ways to position their companies. (2) Three CSA Presidents in Panama in October 2006: newly elected President Fernando Rivera is anked by then Vice President Carlos Urriola (left) and IPP Corah Ann Robertson-Syl vester. It was at Mr. Riveras rst General Coun cil meeting as President (January 2007) that approval was given for the launch of Caribbean Maritime. (3) CSAs 14th President, Fernando Rivera, gets a warm hug from Jamaicas rst female Prime Minister, Portia Simpson-Miller, in Miami, Florida, at the Caribbean Central American Action (CCAA) conference in Decem ber 2006. (4) Following the devastation of New Orleans by Hurricane Katrina, the CSA raised funds for the port workers. Caribbean Maritime recorded the presentation of the cheque to Gary LaGrange, CEO of the port, by then President Corah Ann Robertson-Sylvester. (5) The CSAs Founding President, (the late) Peter Evelyn, receives the CSAs Honorary Members instru ment from then CSA President Corah Ann Robertson-Sylvester in Panama in 2006. (6) Gary Gimson, the winning golfer in 2006, receives the Land & Marine Trophy, donated by his own company, from Corah Ann RobertsonSylvester, as well as the Presidents trophy. (7) Stephen Bell is cited for the quality of his work and dedication to the CSA during his tenure as General Manager from 2003 to 2008. (8) Capt. Rawle Baddaloo (left), the CSA member with the highest points in the 2008 CSA Golf Challenge, receives the Land & Marine Trophy from President Fernando Rivera. (9) CSA President Fernando Rivera (left) and CSAs Director of Information and PR, Mike Jarrett (right), share a light moment prior to the start of the 38th AGM in Port of Spain. At centre is Dr. Carlos Gallegos, then Secretary of the Inter-American Committee on Ports Organi zation of American States (CIP-OAS). (10) CSA President Fernando Rivera (centre) receives an OAS ag from Dr. Carlos Gallegos, 17 5TH ANNIVERSARY EDI T ION2007-2012 4 10 5 6 7 14 15 20 21 25

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18 27 32 26 28 31of the Inter-American Committee on Ports, when the two organisations signed a Memo randum of Cooperation at the CSAs 38th Annual General Meeting in Port of Spain in October 2008. At right is CSA Vice President Carlos Urriola. (11) Members of the CSAs Silver Club gathered in Port of Spain at the 38th AGM, Octo ber 2008. (12) Newly appointed CSA General Manager Clive Forbes (right) greets his pred ecessor, Stephen Bell, at the 38th AGM. (13) CSA Cruise Committee chairman Nathan Dundas (right) greets John Tercek, of Royal Caribbean Cruises, at the 38th AGM in Trinidad and Tobago, where Mr. Tercek addressed the CSA. (14) Caribbean Maritime has documented progress of the Panama Canal expansion. This picture (published in CM7) shows the ceremo nial start of the evaluation of three proposals for the third set of locks. (15) and (20) CSA Past Presidents David Harding and Fernando Rivera, honoured for services to regional shipping by the Caribbean Maritime Institute, receive their award from Jamaicas then Minister of Trans port, Michael Henry. (16) Winner of the CSAMonica Silvera Scholarship, Wallace Collins. (17) The President of Suriname, His Excel lency Runaldo Ronald Venetiaan (left), was presented with the CSAs ships decanter by then Vice President Carlos Urriola at the 39th AGM in Paramaribo. (18) John Fernandes Ltd celebrated its 50th anniversary in Georgetown with a glowing ceremony hosted by its chair man and CSA stalwart, Chris Fernandes (right). (19) CSA Past President (the late) Ludlow Stewart says farewell to the CSA and receives a citation from President Carlos Urriola at the 40th AGM in Montego Bay. (21) MIT staff volunteers in the companys social and community outreach programme were featured in CM10. (22) The Governor of Curaao, Lizanne Dindial, receives the coveted CSA ships decanter from CSA President Carlos Urriola after she gave the keynote address at the 9th Caribbean Shipping Executives Conference in May 2010. (23) CSA Past President (the late) George Noon honoured by the Shipping Associa tion of St. Lucia. (24) Panama Canal Administra tor Alberto Aleman (right) addresses the CSA in October 2010. (25) CSA Silver Club in session, Montego Bay, October 2010. (26) Fernando Rivera poses with Jamaicas Usain Bolt. (27) Caribbean Feeder Services celebrates its 10th anniversary with a special event at Port Royal Jamaica, hosted by its founder and director (and a CSA Past President), Frank Wellnitz (right). (28) The chairman of the Caribbean Tourism Organization, the Hon. Ricky Skerritt (left), and CSA President Carlos Urriola at the 2011 Carib bean Shipping Executives Conference in Guad eloupe. (29) The Prime Minister of Barbados, the Hon. Freundel Stuart, gives the keynote address at the opening of the 41st AGM, October 2011. (30) and (32) As part of the social projects of the Panama Canal expansion, the Panama Canal Authority (ACP) taught the women who lived in the canal watershed to carve ships out of the basalt rock extracted from the excavations. Here (30) the President of the Shipping Associa tion of Barbados, L. Marc Sampson, and (32) the Acting CEO of Barbados Port Inc., David JeanMarie, receive from the CSA President, Carlos Urriola, their piece of the Panama Canal. 29 30 5th A nniversary photo review

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The delay in dredging the Demerara Navigational Channel has been identi ed by Guyanas maritime sector as the basis for issues that have reduced oppor tunities for growth. According to the Shipping Association of Guyana (SAG) in a review produced exclu sively for Caribbean Maritime: The countrys maritime sector continues to be challenged to respond positively to international develop ments in the transportation sector. The Demerara Harbour is currently the main hub of all import and export trade. However, there is a point of view in the countrys shipping community that the issues that have stymied opportunities for signicant growth are inextricably linked to the delay in implementing port development measures in the countrys main harbour. The Shipping Association of Guyana has been making its voice heard on this issue (that is, the need to do major work on the Demerara port). It received the support of the Caribbean Shipping Association when CSA President Carlos Urriola visited and addressed the Association in 2010. Then, last year, the SAGs lobby to develop a public-private sector partnership that would deliver a workable solution to enhance and modernise existing port infrastructure recorded further success. The SAG report edly attracted broad private-sector support, particularly from the main business organi sation, the Private Sector Commission. This development initiative by the SAG is expected to generate signicant benets for all operators in the maritime sector, especially for entrepreneurs involved in the sugar, timber, fuel and cement industries.E C O N O M I C I N T EG RATIO N WITH BRAZILThe Demerara port is also expecting a tremendous boost in cargo exports in the years to come. Last year, the private sectors in Guyana and Brazil formally entered into an economic integration agreement and by the end of the year the initial market survey was nearing completion. With Guyana positioned on the Atlantic seaboard close to the countries of the Caribbean, Brazilian business operators have identied the tre mendous benets for export to be derived from using cross-country corridors and overland transport systems to access the Demerara port. Ofcials from the Brazilian business sup port organisation, Sebrae, indicated early in the negotiations that transporting Brazil ian produce, especially from the southern states of Roraima and Amazonia, through Guyana to the Demerara port would be less time-consuming and costly than using the Brazilian Atlantic ports in the north. The government of Guyana is clearly enthusiastic and has been proactive in facili tating this economic integration programme between the two South American countries. The Guyana government has reportedly allocated an 80-acre parcel of land in the border town of Lethem for construction of a huge transshipment facility. PORT A ND RIV E R C ORRI D ORSThe SAG intends to spearhead the process that will involve movement of cargo through Guyanas road and river corridors from Lethem to the Georgetown Port, said the Association in a statement of commitment. The membership of SAG examined these initiatives very carefully at a high-level caucus last October. The caucus was called to priori tise the maritime enhancement strategy for quick implementation during this year. Conscious of its role of represent ing maritime interests and championing maritime development in an ongoing dia logue between the commercial sector and GUYANA S MOST UR G ENT PRIORITYDEVELOPMENT OF THE DEMERARA PORT... 20 The country s maritime sector continues to be challenged to respond positively to international developments in the transportation sector Guyana

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governmental oversight bodies, the SAGs timetable for this year includes frequent engagements with these various entities. This dialogue between all the relevant agen cies and departments will help to keep the main issues affecting the maritime sector at the top of the national development agenda. The consensus is that the most urgent agenda item, by far, is the long-overdue development of the Demerara Harbour. The urgency of this programme cannot be overstated, said the SAG. It has a direct bearing on the viability of local commerce and Guyanas capacity to sustain existing market agreements with countries in the Caribbean, North America and Europe. UP G RA D I NG H UM A N R E SO U R CE SIn its thrust for development, the SAG is mindful of the need for its staff to be well trained. The SAG has linked viability of the maritime sector to the skill and capabilities of its workforce. The drive to signicantly improve the viability of Guyanas Maritime sector in 2012 will also involve closer collaboration with the Caribbean Maritime Institute (CMI) in the area of training and skill development, said the SAG. The CMI had, in the past, facilitated a diploma-level programme at the Critchlow Labour College and with the University of Guyana. SAG is already in discussion with the CMI seeking technical assistance to resusci tate university-level programmes in Maritime Transportation and Transport Logistics.SKILLSMeanwhile, private terminal owners and all other service providers have begun to identify the skills needed at all levels of their operations. The resulting needs analysis is expected to form the basis for SAGs renewed advocacy with the countrys Ministry of Education to include maritime academic pro grammes in the curriculum at the University of Guyana. 21 The drive to signicantly improve the viability of Guyana s maritime sector in 2012 will also involve closer collaboration with the Caribbean Maritime Institute in the area of training and skill development

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23 While container handling has not yet become reality, cargo and packed goods are already being processed While container handling has not yet become reality, cargo and packed goods are already being processed. According to Eugene Projt, container handling is delayed because of the ongoing recon struction and upgrading of the east-west highway to French Guiana. Currently, a lot of freight for French Guiana is being handled at the Nieuwe Haven port in Paramaribo. He anticipates that some of this freight will ultimately be handled at Traymore Docks. The road, however, is in a deplorable state in some sections and is now under reconstruction. The French border is just a 30-minute drive away, if the road was in good condi tion, he said. At the moment it would be too difcult to transport containers. Traymore Docks also expects contracts in the near future from the USA-based M OEN G O PORT FACILITIES UP AND RUNNIN GJust three years after T raymore Docks took over an obsolete bauxite export terminal in Moengo, eastern S uriname, from the U S -based multinational A lcoa, this privately owned port has been trans formed. T he terminal at Moengo is being retted to offer regular port services and has become a major fuel distribution point in the area. Last year Traymore acquired port equip ment including mobile stackers and upgraded security systems.O N TRA C KTraymores CEO, Eugene Profijt, said: We didnt process any containerships as yet, but we are still on track to become Surinames secondlargest port facility and a major hub for freight destined for neighbouring French Guiana. Discussing the ports current activities and future plans, Mr. Projt said that, before year-end, storage facilities would be offered to wood exporters. The port manager said a signicant amount of Surinames wood destined for foreign markets was being harvested in the Marowijne district. Why take the logs all the way to the port in Paramaribo, some 100 km away, when you have a facility nearby and making use of that could save you a lot of money as exporter, he argued. G ROWI NGMeanwhile, the Moengo company is tapping into the areas growing economic activities, especially in the mining and forestry sectors. From its 53,000 barrels bunkering facility, Traymore distributes fuel to sand and gravel miners and other building material produc ers. Fuel is also sold to small-scale gold miners and forestry companies. Each month the port handles two fuel tankers from Trinidad and Tobago. We have our own fuel trucks for distribution, said Mr. Projt.By Ivan Cairo Entrance to Traymores Moengo facility Traymore workers unload equipment for local mining company S uriname

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mining multinational Newmont, which is currently negotiating with the Suriname government a gold-mining contract near Moengo. Newmont has announced that it would invest up to US$ 800 million in estab lishing a gold mine in the Merian area, south of Moengo. In order to meet international port stand ards, security at the Moengo facilities has been upgraded. The docks are fully monitored electronically, with armed guards on duty. Since there is no adequate hotel accommoda We are condent that the economic activities in this part of Suriname will continue to grow and that our port facili ties will play an important role in the future development of the Marowijne district, said the Traymore CEO. 24 tion in Moengo, Traymore has established several fully furnished apartments on its premises to provide overnight accommoda tion for ships crew. The company has also purchased two buildings in the former bauxite city to provide housing for a local manager and ofce accommodation.FA C ILITAT EWe dont want to be a competitor for other ports in the country, but we want to position ourselves as a port to facilitate economic development in the Moengo and Marowi jne region, said Mr. Projt. One of our main objectives is to facilitate production activities in this region. Whoever wants to do business in this area, in the long run will have to deal with us, since it would be more cost-efcient to do business with us. He regards the investments in the Moengo port as a long-term asset. However, the company is already seeing some return on its investment.Mr. Eugene Profijt, Traymore CEO Container stackers have been acquired M oengo

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25 Cruise ship calls have increased by 13 per cent as Curacao s popularity as a cruise destination increases programme has been boosted so as to ensure dependability at this facility. KTK Tugs, the Curaao Towage Com pany, has seen an upturn in local operations because of the increase in vessel calls and is now focusing on optimising its local services in tug assistance and maintenance. Regional and international ventures for towage and salvage are still a high priority for KTK and the company has deployed, through lease arrangements, three of its tugs on the inter national market. Curaao Drydock Company (CDM), once regarded as the most competitive in the entire Caribbean-Latin American region, has come up with a turnround vision. CDM is concen trating on rebuilding this reputation and the implementation of plans towards this end C URA C AO SEES G ROWTHP lans for development being kept under the radar C uraao, now in its second year as an autonomous state within the Dutch K ingdom, is on the threshold of a new period of development and the shipping industry in that country is looking to the future with optimism and eager anticipation. Following the dissolution of the state of the Netherlands Antilles on October 20, 2010 new political parties have been formed, elections have been held and plans for development are being drafted or otherwise already being implemented. A new vision has been created for the countrys maritime sector. The plan involves expanding and upgrading maritime services in and around the ve harbours of Curaao and especially at the port of Willemstad, where the focus is on developing the proper ties next to the wharves. These plans are part of the harbour policy which is embodied in the economic thrust of the new government.E NC O U RA G I NGThe pains inicted by the global recession still hurt; but port performance last year, as compared with 2010, was encouraging. The number of ships piloted inwards in 2011 was the same as 2010. Tanker calls increased by 23 per cent. The ISLA renery (the Reneria ISLA Curaao, located in Curaaos Schottegat harbour) is fully operational again and storage facilities at the port of Bullenbaai have been upgraded. Workboats and platforms have made good use of the ports of Curaao in recent years and their presence has increased, marginally, by about two per cent. Cruise ship calls have increased by 13 per cent as Curaaos popularity as a cruise destination increases. Activities last year at the container ter minal, operated by Curaao Port Services (CPS), compared favourably with 2010. The two gantry cranes are slated for upgrading in the near future. Meanwhile, the maintenance C uracao

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26 has already begun. Expectations are high as CDM has all the facilities and expertise needed to regain its market share. The ISLA renery is in full operation again. The cat cracker and the energy support plant, which had what have been described as operational challenges in 2010, have been upgraded and have been functioning satisfactorily for over a year. The spin-off business that the renery brings to Curaao is of great economic signicance.P E RFOR M A NCEThe Curaao Pilots Organisation (CPO) reported improved performance and effectiveness in time management and operations. The skill and professional ism of Curaaos pilots, especially over the last 10 years and more, have earned them the reputation of being among the best in the region. Small wonder, since they have to deal with and overcome, daily, the challenges of manoeuvrability posed by the limited berthing space in the port of Willemstad. Emphasis is now being put on registration and automation so as to further improve the daily operations in the ports in which they operate. Curaao is seeing growth in cruise ship business. Indeed, the country expects 500,000 cruise visitors this year and there is a strong determination to keep this momentum. Plans for the construction of a second pier just outside the entrance of the port, next to the existing pier, have long been discussed and the new government is resolute in its plans to construct this berth. In preparation for the start of construction of this long-awaited facility and a new cruise terminal, a master plan has been devel oped. Expectations are for the rst founda tion stone to be laid this year. This will be a timely move as Curaao plans to host the 2012 Florida-Caribbean Cruise Association Conference and Trade Show in October. The port and terminal development in Curaao have been the focus of the port authoritys efforts this past year, but there has not been a lot of emphasis on publicity and promotion. Indeed, most plans have been kept out of the spotlight. Not all ideas, plans or projects need to be high-prole if your main objective is change and sustainability, said one port executive. Quality in performance and elevated standards are not tangible virtues. Sometimes it is smart to be discreet and navigate under the radar. C uracao

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27 At PortMiami a new era is upon us and with it a new look dredge charges might damage the founda tions of their high rises. The rail line has generated little contro versy so far because none of the slow freight trains have followed the newly recon structed tracks through the most dense section of downtown Miami, stalling trafc on all roads but the Interstate. But PortMiami has a long history of over coming community consternation. There are some who are trying to slow us down, said Johnson. I can assure you, we remain committed to the timeline that will have our channel at minus 50 ft come 2014. Responding to the environmental chal lenge, he said: This is a federal project managed by the Army Corps. I can assure you they, along with our port and the State of Florida, are committed to protecting our most important natural asset Biscayne Bay and the surrounding ecosystem. Our dredge project has been studied for more Call it rocking PortMiamiThere has been a change in the lexicon of cargo carriers and cruise operators calling that Dodge I sland port on Biscayne Bay. No longer the P ort of Miami, it is now called P ortMiami. Director Bill Johnson recently told a sold-out state of the port luncheon: At PortMiami, business as usual is not busi ness as usual. The many projects now under way and accomplishments I am about to describe prove that PortMiami is rocking. At PortMiami a new era is upon us and with it a new look, Johnson told port stake holders. He spoke about the port access tunnel, under construction; the nearly completed near-dock, the Florida East Coast railroad track; and the long-awaited Deep Dredge. The tunnel seems to be a done deal, with only three questions remaining. Which law enforcement agency among the half dozen in South Florida will police the tunnel? Which emergency responders will respond if an accident should occur under Govern ment Cut? And how difcult will it be to con trol heavily loaded containers up and down the tunnels extremely steep gradient?Q UE STIO N SThe Deep Dredge, permitted by the Corps of Engineers to 50 ft, also faces some rocky questions asserted in a court challenge by a coalition of environmental activists and the millionaires who occupy an island hideaway next to the planned explosions and excava tion. The conservationists are concerned about adverse impacts on sh and sea grass. The wealthy are worried that the By Rick Eyerdam M iami

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than 10 years and meets the highest envi ronmental standards.O PPORT UN ITY TO G ROWJohnson told the luncheon: The one thing we cannot do is delay the dredge unless we are willing to pass up whats been called a once-in-a-generation opportunity to grow our economy. As for the new rail line, which is 80 per cent complete, Johnson said: No major port can be successful without on-port and on-dock rail. Time to market thats the bottom line for everyone in this room who moves product the shippers, logistic providers, freight forwarders. Johnson praised the port partners for sustaining productivity amid the constantly changing access and construction projects on the port and a mercurial trade economy beyond.NUMBE R O NEAgain, we are on top as the number one container port in Florida, he said. Nation wide we are Number 11, up from Number 13 a couple of years ago. I am pleased to report that cargo trafc increased seven per cent last yeara solid performance given the ongoing economic difculties in the global marketplace. This follows a ve per cent increase the previous year. Johnson, in his sixth year as port direc tor, said: By any measure, PortMiami has navigated well, very well, through a very tough economy. In the four-year period since 2008 when the recession hit hard est teu [handled] at our port increased 9.2 per cent, more than many major container ports. We outperformed New York/New Jersey, Los Angeles, Long Beach, Houston, Charleston and our neighbour up the block, Port Everglades.P RAIS E FOR SE A B OAR DJohnson singled out non-union Seaboard Marine for praise among the three Port Miami cargo terminals. The dedicated terminal surpassed both the common-user terminals. We continue to make signicant improvements to the yard used by Sea board Marine, our largest shipping line, he said. Seaboard posted a record last year at PortMiami, moving in excess of 400,000 teu, more than 40 per cent of our busi ness. Thank you, Seaboard we value our partnership.PART NE RSThen he immediately said: At this time, I would like to recognise some of our other critical partners in growing the business, starting with ILA Local 1922 and 1416. In August, Local 1416 will celebrate its 75th anniversary at our port. You play a vital role in growing our business. PortMiamis largest score in the recent years has been among the cruise ship companies. No other cruise port in the world comes close to matching our cruise passenger trafc, said Johnson. In 2011, for the fourth year in a row, 4 million plus cruise vacation ers passed through our port. He asserted the challenge to Port Ever glades, again proclaiming: PortMiami has long been known as the Cruise Capital of the World and it will always be the Cruise Capital of the world. To make the case, Johnson cited: Three additional cruise lines, some of the best names in the business, are coming to our PortMiami. Regent Cruises, a market leader in the luxury segment of the industry, announced that is relocating its opera tions to PortMiami in the fall of 2012. An agreement with MSC Cruises, which is making PortMiami its exclusive home port, beginning in the fall of 2013. Disney Cruise Lines makes its debut in December 2012 when the Disney Wonder sets sail from PortMiami. Reaching a long-term lease with Royal Caribbean, thus ensuring that the com pany will keep its headquarters in the port through to 2021. The expansion of the PortMiami cruise eet will include three new ships still under con struction in Europe: the Celebrity Reection, the Carnival Breeze, and the Oceania Rivi-era. These new vessels will rank among the most exciting and innovative in the world. Globally, only four new ships will be introduced in the US this year, said Johnson, and three will come here to PortMiami. The Miami port director said part of the attraction was the just-completed $3 million upgrade to a boutique terminal used by luxury lines. Also under way is a $15 million expansion of Terminal D, which serves the ports larg est customer, Carnival Cruise Lines. 29 No other cruise port in the world comes close to matching our cruise passenger trac M iami

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APM Terminals has established quite a presence in the western hemisphere and particularly in the Caribbean, Central America and South America. And, with 6.5 per cent growth projected for Latin America by Drewry Maritime Research, it is now clear that Latin American container markets will continue to be a focus area for the European giant. APM Terminals already operates facilities in Buenos Aires, Argentina (Terminal 4); and Itaja and Pecem, both in Brazil. In July last year APM Terminals added Muelle Norte in Callao, Peru, to its list of terminals, having won the concession in a competitive tender process. Other recently announced investments in Latin America include the construction of new facilities in Moin, Costa Rica (see Page 34); Lazaro Cardenas, Mexico; and Santos, Brazil. Kim Fejfer, chief executive of APM Terminals, said: With over 550 million people and signi cant growth in seaborne trade, Latin America has unmet demand for access to the global logistics chain. APM Terminals will pursue opportunities in the region to facilitate trade and support economic growth. Joe Nielsen, former chief nancial of cer for APM Terminals activities in the Americas Region, has been appointed managing director, Latin American Terminals. Mr. Nielsen, who is based in Panama, said: Having been able to add port terminals to our regional portfolio and improve access to global trade for the related countries is the result of hard work of our business development team in Latin America, in close cooperation with our local partners, governments, port authorities and other key stakeholders. APM Terminals will continue to explore opportunities throughout the region and support modernisation of infrastructure.GOVERNMENT LIKED OUR PLANLooking back at the successful Callao tender, Robert Bosman, APM Terminals general manager Business Development Americas, said: We worked on the Callao project for one and a half years closely with our local partner, Central Portuaria, the Peruvian government and the port authority. We started the process by proposing a private initiative to the Peruvian government in which we offered to modernise and operate Muelle Norte as a multipurpose terminal. We invested a lot of man-hours and knowledge in this proposal and initially you do not know if your proposal will be accepted. But we always believed in this project. The government liked our plan and decided to start a public tender process for Muelle Norte. The concession contract guaranteed the Peruvian government investments of US$ 749 million in modernisation of the terminal. This level of investment will ensure DEVELOPING PUBLIC-PRIVATE PARTNERSHIPS FOR PORT DEVELOPMENT 30 APM Terminals will pursue opportunities in the region to facilitate trade and support economic growth A win-win model in actionthat Peruvian importers and exporters have an ef cient and reliable multipurpose terminal. This is important for Peru as the Port of Callao is the nations main gateway for international trade and a potential hub for the west coast of South America. APM Terminals connect with governments and local port operators to build long-term mutually bene cial partnerships for the development of port infrastructure to a level that countries need in order to stay competitive in international commerce, given the rapidly developing customer requirements and market demands of todays world. This model APM Terminals

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Joe Nielsenof cooperation works well and offers advantages for port terminals in the region. Such advantages include operational knowledge, commercial relations with over 60 shipping lines, global training programmes, access to equipment contracts, information systems and other economies of scale which APM Terminals, as an international operator, can offer. A good example is the case of the Muelle Norte in Callao (mentioned previously), now operating as APM Terminals Callao. Since assuming control of Muelle Norte on July 1, 2011, crane productivity has increased to more than 26 moves per hour per crane. Gate turnround time has decreased by 49 per cent to 28 minutes in the rst 29 weeks of operations. Already, APM Terminals has invested US$ 27 million of a total of US$ 749 million earmarked to modernise and expand the existing facility. Plans are to build a terminal which will eventually have a capacity of 2.9 million teu. The installation of a new grain silo will allow for 9.9 million tons of general cargo capacity over the next decade. In APM Terminals we believe in the development of an environmentally sustainable and safe operational platform, as everywhere in our terminals around the globe, said Mr. Bosman. A good example of this is the use of electric rubber tyred gantry cranes in Callao. The development of the new terminal of APM Terminals in Moin, Costa Rica, will see full implementation of these policies. The focus will not only be on environmental protection measures but, equally importantly, the introduction of clean energy sources for reducing carbon dioxide emissions at the Moin facility, with recycling processes at all levels within the operation as well in the community at large. Through job creation, health and safety initiatives, business practices, proactive environmental policies, APM Terminals sees great potential to create positive change in local communities, a responsibility that is clearly taken very seriously. PRIORITYSafety is a global priority within APM Terminals. We want our employees to go home safe and in good health after a working day, said Mr. Nielsen. We made signi cant positive changes in terminals that we took over around the world, but we always want to improve further. We have a zero tolerance on safety issues. The safety culture of APM Terminals was recently acknowledged in the United States, where the company was presented with the Gerald H. Halpin Safety Excellence Award for 2010-2011 by the Signal Mutual Indemnity Association. APM Terminals operations in the USA were cited for Signals highest award, which recognises the Signal member that best exempli es the promotion of employee safety and health throughout its organisation. Accident prevention and safety culture are at the very heart of APM Terminals daily operations throughout the world. Last year the company also won the Lloyds List Global Safety Award. Mr. Bosman believes APM Terminals has a lot to offer in developing port terminals throughout the region. And he says this has been proven by the new terminals in which the company is engaged. APM Terminals manage31 ment style is transparent, open and straightforward, he said. We work according to our values and we have clear business principles. We truly want to create and operate ef cient, safe and environmentally sustainable port terminals with our partners, enabling countries to compete effectively in global trade and facilitate economic growth. Joe Nielsen agrees. We truly believe that public-private partnerships and other types of cooperation between developing port terminals in Latin America and APM Terminals can be developed in such a way that it is mutually bene cial. National interests are protected and ef cient port terminals for the future are ensured, offering services that customers need. This will enable countries to connect competitively to global commerce. Infrastructure is a key priority to avoid bottlenecks for further growth in Latin America. APM Terminals have seen and created examples in Latin America of successful port infrastructure projects. We are con dent that we will see more successful regional port infrastructure projects in the future and APM Terminals wants to be part of that. Robert Bosman

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Name: Job title: Company name: Address: City: Country: Zip code: 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!Fax to: +44 1206 842958 or email your request to: publishing@landmarine.com

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CSA PHOTO AL B UMAn album of photographs taken at the CSAs 41st Annual General Meeting in Barbados, October 2011. 33 CSA P hoto album

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34 Moin a new terminal in the makingWhile Costa Rica has had exceptionally consist ent economic growth over the past two decades, little of this growth has been in evidence in the Caribbean province of Limon, where most of the Jamaican descendants have resided since the late 1800s. This is about to change with the development of a modern container terminal in Moin. Captain Paul J. Gallia, managing director of APM Terminals Moin, explained: The Costa Rican government has in place, as part of its strategy for continued growth in international commerce, a master plan to modernise the ports and logistics in the country. A major component of this plan is the new Moin Container Terminal.C ON C ESSIONIn March 2011 the Netherlandsbased company APM Terminals won a 33-year concession to design, nance, construct, operate and maintain the Moin Container Terminal (TCM). Following an investment of US$ 992.2 million, the new facil ity is due to enter service in 2016. It will therefore benet from the Panama Canal expansion, having been designed to serve the larger post panamax ships. In its rst phase of opera tion, TCM will have 600 metres of berthing; 40 hectares of container storage on reclaimed land, protected by a 1.2 km breakwater; a 16 metre deep access channel; and 14.5 metres depth alongside. Six super post panamax STS cranes will provide world-class productivity. Safety and security will exceed mandatory interna tional standards. APM Terminals general manager in Moin, Rogelio Douglas, a native Costa Rican, said: The existing ports of Limon and Moin can currently only handle ships up to 2,500 teu. Despite this restriction in vessel size and a lack of cargohandling equipment in 2011, they handled just under 900,000 teu. The projected economic growth of the country and the increasing containerisation of refrigerated exports suggest this gure will increase to over 2 million teu within 20 years. This forecasted growth underscores the need for a modern, safe and efcient container terminal operation. The TCM project is the largest single infrastructure private investment to date in the country and APM Terminals is the rst multinational major investor in Limon since the Standard Fruit Company back in the early 1990s.INTE R EST Mr. Douglas said: Since the announcement of the conces sion award and the contract signing a few months later, there has been an increasing volume of interest from foreign investors interested in develop ing operations close to the new container terminal location, where the local transportation costs, warehousing and labour are expected to be much more attractive. This investor con dence has already been crystal lised by real estate developers, nature tourism specialists, Free Trade Zone investors and the manufacturing sector look ing to install their centrally located Americas logistics and distribution operations close to a modern deepwater terminal. The Caribbean province of Limon provides Costa Ricas highest level of native bilingual ism (English and Spanish); a culturally diverse labour force (African-Caribbean, Latin, indigenous and oriental descendants); and very attrac tive operation cost-points. The TCM project has quickly gained a high prole domes tically with a potential to increase the national GDP by one point as well as inter nationally underscoring the governments interest in major infrastructure projects under concession partnership with private enterprise. Captain Paul J. Gallia Costa Rica

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35 Cartagenas growth is mainly related to the strengthening of Colombias national economy Perhaps the greatest challenge is that Colombia is rapidly becoming a trade hub without having really planned it. We continue in many ways with an Andean mentality, said one ofcial. It is costing us a lot to develop infrastructure in the coastal cities for all the new industrial developments moving from the highlands to the coasts. Many times winner of the CSAs Caribbean Port Awards, the Port of Cartagena, with its three efcient terminals, has proven it has the capability and the leadership to deal effec tively with growth and expansion. Cartagena continues in growth mode, sets new recordThe Port of Cartagena has announced strong growth gures for 2011 and the setting of a new annual production record. The port has been recording double-digit growth gures for ve consecutive years. A total throughput of 1,853,342 teu in its three terminals (Manga, Contecar and El Bosque) was achieved for the year just ended, up 17.02 per cent as compared with 2010 when the leading Colombian port handled 1,581,401 teu.G R OWTHCartagenas growth is mainly related to the strengthening of Colombias national economy as well as increased volumes in transshipment operations. This perform ance has made the South American port one of the most dynamic hubs of the region. The port expects even further growth in the years to come as the country is actively involved in establishing new free trade agreements with the USA, countries in Europe, Turkey and South Korea. In order to prepare for the larger ships expected to serve the region once the Panama Canal expansion is completed, the Port of Cartagena has prioritised three aspects of its operations: (a) infrastructure; (b) people; (c) technology and equipment. The strategy involves: Implementation of an expansion plan, in phases, which will bring a combined capacity of 5 million teu into two main terminals (Contecar and Manga); Construction of a new access channel (18.0 metres draught); Plans to operate 22 STS gantry cranes over 1,700 metres of quay wall for ves sels of up to 14,000 teu capacity; Focus on the needs of the workforce; hiring of motivated employees and con stantly preparing and training workers for the new challenges ahead; Updating technology and challenging systems and methods in order to ensure a reliable service. The Port of Cartagena sees its greatest challenge as coping with ever-growing volumes of cargo in Colombia, the result of the tremendous economic growth that the country is experiencing at present.C HA LL ENGESWe, as a country, need to develop the inter nal infrastructure in order to optimise the new challenges and opportunities that Free Trade Agreements as well as the Panama Canal expansion will bring, the port declared in a recent statement. We need to understand the market, in these troubled times, and invest in a timely matter for all the opportunities that are out there. Colombia

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36 PRE-QUALIFIED BIDDERS NAMEDAmid news reports that the Panama Canals new locks will probably not be ready for the scheduled opening in O cto ber 2014, the Panama Canal A uthority ( A CP) has announced the pre-qualication of the two consortia and one company interested in bidding on a tender for a road bridge over the canal at its A tlantic end. A report in a normally reli able global publication, the Journal of Commerce, said that, after a three-month delay, the locks would be ready for a trial run in December 2014. (See Grapevine, Page 42). Although this story could not be conrmed up to press time, there was no denial from the ACP up to then. The bridge construction project is proceeding apace, however, with the naming of the three entities pre-qualied in the tender process. The prequalied tenderers are: Consorcio Acciona Infrae structuras-Tradeco (Spain and Mexico) Odebrecht and Hyundai Joint Venture (Brazil and South Korea) Vinci Construction Grands Projets (France). The pre-qualication was made after a technical board compris ing canal professionals ana lysed all the information sub mitted by the interested parties relative to the technical criteria, their experience and nancial capacity. The bidders will now participate in the second round of the process, after which the contractor responsible for con struction will be selected. The second phase of the proc ess will begin with the submission by the ACP of the instructions to tenderers. This will include the design and contract specica tions; a special site visit organised for the pre-qualied tenderers; and the receipt of nal proposals in or about August of this year. Construction of the bridge by the ACP is authorised by law. It is included in Article 3 of Law 28 of July 17, 2006 the legislation under which the construction of the Third Set of Locks for the Panama Canal was authorised. That legislation mandated the construction of a road bridge on the Atlantic side to link both canal banks. The bridge design was inspired by similar existing infrastructure in France, Spain, China, South Korea and Japan. The double-plane, twin pylon, cable-stayed bridge will carry four lanes of trafc. It will be 4.6 km long and will rise 75 metres above sea level. The bridge will be located 3 km north of Gatun Locks and the new post panamax locks on the Atlantic side and Thelma King Avenue in the province of Colon. Once completed, it will bring much-needed relief for neighbouring communities as it will ease the ow of vehicle trafc over the canal. The bridge design is inspired by similar infrastructure work in Spain, Korea, France, China and Japan. It will be located 3 km north of Gatun Locks and the new post-Panamax locks on the Atlantic side. Road bridge project under way Panama Canal Expansion

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37 In about two years or less, after seven years of noise and dust, the industrial sounds of rock blasting, earth moving and the rumble of heavy equipment across the isthmus of Panama will go quiet and one of the largest construction projects on planet E arth will be at an end. And when the hundreds of construc tion workers, engineers, surveyors and other construction specialists pack up and go home, they would have left behind the worlds largest locks, capable of handling most of the worlds biggest ships. They would have more than doubled the current capacity of the Panama Canal. What then? The expansion of the Panama Canal, to be completed in 2014, will be a catalyst for changes to container distribution networks, especially those plying transpacic trade routes. The changes will be obvious and particularly noticeable at North American container ports and especially where there are intermodal connections. However, there are mixed views as to whether the expan sion of the canal will signicantly change the status quo between US West Coast and East Coast ports. Nonetheless, changes in the all-water route deployments would result in repercussions on ports and intermodal carriers as I argued in my dissertation Cargo flow dynamics influenced by the expansion of the Panama Canal. For my research, I used cargo ownerrevealed preferences to estimate the aggregate economic effect of different port improvement projects that seek to attract redeployed containerships, especially the deployment of vessels with dimensions that exceed the current panamax limitations. The transpacic route has two trafc ows. The eastbound leg moves greater volumes of trafc. The westbound leg has lower demand because of structural imbalances of trade between Asia and the Americas, resulting in lower vessel capacity utilisation (with loaded containers). In the transpacic trade at present, the imbalance is substantial, with almost two loaded containers in the inbound US direc tion for every return container.C ONT R A C TIONThe Panama Canal expansion, by itself, will not generate new cargo. Therefore, the ability of the Panama Canal to accommo date larger ships will likely, at least initially, result in a contraction in the number of transits. So, as a result of the use of larger ships, fewer port calls will be made. Container terminals are specialised facilities. They accommodate container ships and the intermodal vehicles that enable inland distribution. Terminal facili ties include ship channels, berths, gantry cranes and storage yards. Attributes such as depth of the harbour, number of berths, number and capability of cranes, size of storage areas and intermodal access are factors which determine a particu lar terminals strategic importance to its users. These various features collectively determine a marine terminals capability to handle its throughput and invariably inu ence the marginal cost to a shipping line using a particular facility. Container activity at US seaports has resulted in a concentration of vessel calls and container trafc in a few leading or pre-eminent ports. This is partly because of a tendency for larger and more special ised vessels to be drawn to ports that are best equipped. As a consequence, some container ports such as Los Angeles/Long Beach, Seattle/Tacoma and Oakland on the US West Coast are commanding a lions share of the cargo and have evolved into dominant hubs. Along the eastern seaboard, ports such as New York/New Jersey, Savan nah, Norfolk, Charleston and Baltimore are the container hubs in greatest demand. Data was sourced from the Federal Highway Administrations Freight Analysis Framework (FAF3), which integrates freight movement data among states and major metropolitan areas by all modes of trans portation. FAF3 reveals that up to 30 per cent of the Far East cargo transiting West Coast ports is destined for areas outside the natural hinterland of those ports. Most of the commodities transported in contain ers from Asia are time-sensitive consumer goods and other merchandise and would suffer from the time penalties imposed by an all-water route to the East Coast versus the competing West Coast routes. There fore, a redistribution of market share of less than the maximum of 30 per cent from West Coast to East Coast ports is expected. The deployment of larger vessels on transcanal routes will have an effect on Caribbean transshipment hubs such as Kingston, Free port and Panama. These ports have depths of about 15.0 metres and the supporting infra structure to handle ultra-large containerships. Draught limitations at East Coast ports could see carriers expanding transshipment options within the Caribbean to serve US trades in addition to South American trades. OBS ER VATI O NS AND E X PEC TATI O NS O F AN E X P AND E D C ANAL The expansion of the Panama Canal will be a catalyst for changes to container distribution networks By Dr. Eric Deans Panama Canal Expansion

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38 By Fritz Pinnock, Ph.D. and Ibrahim Ajagunna, Ph.D. The global container shipping industry is the backbone of intercontinental supply chains, accounting for some 98 per cent of intercontinental containerised trade volume and 60 per cent of trade value. In addition, the global shipping industry is driven by two forces of scale and technology and the Caribbean, comprising a group of small islands sharing space, is challenged to nd relevance within this paradigm. It is true that sustained globalisation and global logistics would not be possible without a dense and efcient transport network. It is equally true that both the concept of globalisation and global logistics and their enabling tools such as informa tion technology and intermodal transport have had a tremendous impact on maritime transport. Both globalisation and global logistics trends beg the question: how does the Caribbean t into this picture? C HA R GESGiven the poor performance of most con tainer terminals in the Caribbean, it is not surprising that handling charges are two or three times as high as in similar ports in other regions and that the overall cost of transport and insurance in the Caribbean basin is some 30 per cent higher than the world average. For example, the route from Shanghai (China) to Los Angeles (USA), a distance of 19,270 nautical miles, attracts a freight rate of approximately US$ 700. By contrast, the distance between Kingston (Jamaica) and Orangestad, Aruba, a distance of 513 nauti cal miles, attracts an average freight rate of US$ 2,800. However, for shipping lines specialising in container cargoes, the news has been especially bright for the anticipated increase in the size of ship equipped with modern technology. At least one shipping line, Maersk, believes the future looks bright. This news has led Maersk to order 10 of the worlds largest-ever ships, with the rst due for delivery in 2013 in anticipation of the opening of the Panama Canal. EX P ANSI O N O F PANAMA CANAL AND C HALL E NG E S F OR CA R IBB E AN POR TSBigger ships also mean greater ef ciency, but only if they can be lled to capac ity. Industry analysts believe that more and more companies will try to reduce their carbon footprint for both public relations and protability reasons. Industry analysts also point out that the vessels enormous capacity will enable Maersk Line to move the greatest number of containers pos sible for its customers in the most energyefcient way and with the smallest carbon dioxide footprint. T HE CA R IBBEAN C ASE S C ENA R IOThe Panama Canal is a major gateway for cargo moving from the Far East to the US West Coast and on to the US East Coast via the intermodal transportation network. In fact, the prospect for Caribbean trans shipment involvement is integrally tied to the efciency and competitiveness of the expanded Panama Canal. The following key drivers to transshipment will inuence the highly coveted Caribbean hub port status: Port must be located at the crossroads of principal maritime trade routes Productivity of stevedoring operations Guarantee of berths Competitive tariffs Control of operations Safety and security Dedicated feeder services. Major competing hubs within the Caribbean are Kingston, Jamaica; Freeport, Bahamas; Port of Spain, Trinidad and Tobago; Caucedo, Dominican Republic; Panama; and Colombia. Snchez and Wilmsmeier point out that the number of services and the number of directly connected ports describe well the embeddedness of terminals in the global network and simultaneously the potential for import and export development of the respective hinterland. But connectivity alone is not sufcient to explain port throughput. While there is no doubt that containerisation is a necessary condition to increase trade in the Caribbean, its very presence does not guarantee that such development will occur. The reach of shipping networks from a country or port, however, shows potential trade opportuni ties. This is particularly true for smaller ports that rely on feeder and small vessel services. According to Snchez and Wilms meier, these ports depend not on their direct connectivity but on the connectivity to a transshipment hub, which denes their inte gration in the global liner shipping network.CA R IBBEAN T R ANSSHI P MENT T R IANG L E WITH HUB P O R TSIndustry experts believe that the expan sion of the Panama Canal is opening a new phase for transshipment in the Caribbean. According to Rodrigue and Notteboom, it is important to underline that, at global level, only 17 per cent of commercial relations involve direct connections between ports, so transshipment is a fundamental aspect of maritime shipping networks. In recent years, an active transshipment market has emerged in Panama and the Caribbean, particularly within what has been dubbed the transshipment triangle. The growth in Caribbean transship ment activities is related to issues such as economic growth in Latin America being at the crossroads of trans-Atlantic and north-south trade ows and the need for shippers to reconcile, within their ship ping networks, these many inbound and outbound trade ows. Transshipment activities are thus a mix of hub-and-spoke network congurations as well as interlining between long-distance Panama Canal Expansion

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39 shipping routes. The advantages gained in terms of network interconnectivity and better use of ship assets outweigh the additional handling costs that transshipment entails. According to Rodrigue and Notteboom, the expansion of the Panama Canal comes at a time in world trade developments that is prone to uncertainties, since the main trade drivers, such as North American importbased consumption, are being questioned while new trade relations are not rmly established. In addition, South America rep resents a remarkable potential for additional volumes and transshipment activities. In the triangular transshipment hubs, local and regional carriers continue to play a major role in local trade, but are threat ened by loss of global and some regional trade to alliances between operators. These global operators can offer more competi tive prices when exploiting economies of scale. Local and regional carriers can only compete in service and not in price, as their advantages lie in close customer relations with preferences and exibility in payments. Regional carriers, for example, are largely niche carriers specialising in LCL (less than container load) and mixed container loads and non-containerised goods, especially in the inter-island trade. Such services are specialised in handling cargo such as three boxes, three pallets or three containers. These types of handlings are very difcult for big operators as they do not t in their rationale for cargo handling.PO R T SE C TO R BOTT L ENE C KSPort costs ripple right through national economies, especially those of small islandstates. In fact, port costs affect the price of goods and services in nearly every sector of the economy. Competitiveness requires a modern, well-managed, cost-effective port system. While the standards of infrastruc ture in some Caribbean countries can be considered as acceptable, a major problem has been its maintenance. Other problems of infrastructure in the Caribbean are: inadequate management; tariffs that are too low to support the services; accumulated debt; and discontented customers. The state of the infrastructure is also affected by the Regions vulnerability to natural disas ters and the tendency of governments to make decisions concerning major invest ment projects without appropriate hazard assessment and information on mitigation measures. Another challenge for infrastructure development in the Caribbean is govern ment interference in the operation of public providers. The principle of institutional independence has been proposed to create creditworthy Caribbean public utilities, capable of nancing themselves. This would entail legislative reform requiring, for example, rules for the naming of independ ent boards of directors; nancial disclosure obligations; clear hiring practices; efcient and transparent public markets; and pricesetting freedom for utilities, subject to com pliance with the price review mechanism. It would also require the strengthening of local government through management training and enhancing the capacity of local governments to raise revenue. Another prerequisite is adequately trained staff to ensure effective compliance and enforce ment of regulations. The presence of an Appropriate Regula tory Framework is essential for private-sec tor participation in infrastructure projects. This would require the rewriting of national legislation and the upgrading of staff and their ability to enforce compliance with these regulations. For example, to manage infrastructure costs, human settlements should not be allowed to develop haphaz ardly without proper land-use planning. These settlements should be planned ef ciently. Such polices have to be coordinated with other measures such as green taxes and development charges directed at major land users. In port development, the importance of local and regional factors has to be con sidered and in various cases has produced unique frameworks which, in the worst case, impede strong collaboration with the mari time sector. The most important regional and local factors are the institutional operating and regulating framework and the nancial environment for investments. A restriction on the development of maritime transport and port development, men tioned by several interviewees, is the lack of national infrastructure development plans and export facilitation policies. This impedes the functioning of port communities, mixed consultative and deliberate entities, as in Montevideo, Hamburg and Barcelona. The Caribbean needs to focus on training facilities not only in the maritime and port sector but also in the logistics sector. The lack of infrastructure development plans is also reected in rising congestion in portrelated automotive transport. The current situation in the bigger islands Barbados, Jamaica and Trinidad and Tobago reveals the need to integrate national port policies in national transport and infrastructure development policies. According to industry analysis, other trends affecting Caribbean ports that have had a signicant inuence on the way port operations are planned, developed, oper ated, positioned and marketed include: Changing trends in production and con sumption of goods and materials Changing patterns in distribution and trade transport Joint investment by port operators and private companies in various maritime activities, as is the case in Suriname Increasing cooperation among ports to share resources in capacity building Enhanced focus on security and safety Changing composition of port ownership Greater involvement of shipping compa nies in container port development Greater attention to handling bigger, more sophisticated ships carrying larger volumes of cargo Intense use of technology and IT applica tions to assist port operations More focus on improving tariff structure as a competitive strategy Introduction of value-added services and infrastructures More focus on intermodal linkages. Experts have argued that these trends will continue to shape the planning, organisa tion, development, management and opera tion of seaports in the years to come. Port authorities and terminal operators will have to adjust their strategies, development and operations to suit the dynamics and realities

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40 of the port business and trade environment. They must pull all the stops to keep pace with trends and developments affecting the maritime sector, especially in areas such as shipping, intermodal transport, production, economics and trade. In addition, port operators must gear themselves to accommodate the trend towards ship upsizing, which will require deeper draught, higher crane productivity to minimise berthing time and enable vessels to maintain their voyage schedule. Even the smaller ports should have plans in place to expand their capacity for the upsizing trend in ships. RECOVERYGiven the signs of global economic recovery, the expanded capability of the Panama Canal will have a great positive impact on the Caribbean shipping industry. The Caribbean region is positioned to take advantage of this development. What will become necessary are the infrastructural and logistical components, all essential if the region is to reap rich bene ts. Key developments (along with the Panama Canal expansion) which will shape the future of the regional shipping industry are: the emergence of ultra large container ships; declining freight rates; overcapacity in the global shipping industry; and carrier consolidations. According to Noel Hylton, both large containerships, declining freight rates, overcapacity in the global shipping industry and carrier consolidations will have tremendous impact on the industry going forward. In the short to medium term, however, the global economic climate remains highly volatile and uncertain. The Panama Canal Authority equally points out that the containership sector is the main driver of growth in canal traf c. Trade between North East Asia and the US East Coast re ects the highest canal transit growth rate and will become an important driver of canal growth. Finally, the Panama Canal expansion will impact the regional shipping industry because of the increase in the size of ships it handles. Ships in the 4,000 to 8,000 teu range will be plying the north-south trade routes with more vessel-sharing agreements being formulated to pull service volumes together; and continued growth and expansion of transshipment ports across the Caribbean. References1. Hylton, N. (nd), the expansion of the Panama Canal. A paper presented at the Caribbean Shipping Association 41st Annual General Meeting, Conference and Exhibition, October 2011, Bridgetown, Barbados. 2. Ricardo J. Snchez and Gordon Wilmsmeier (2009), Maritime sector and ports in the Caribbean: the case of Caricom countries. Natural Resources and Infrastructure Division Santiago, Chile. 3. Jean-Paul Rodrigue, J P. and Notteboom, T. (The Panama Canal expansion: business as usual or gamechanger? Available at www.porttechnology.org Challenges

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41 GRAPEVINE*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.JAMAICAN GOVERNMENT PLANS DEVELOPMENT FOR KINGSTONAnthony Hylton, Jamaicas recently appointed Minister of Industry, Investment and Commerce, announced in February plans for development of a global shipping and logistics hub for Jamaica. According to a leading Jamaican newspaper, this is to be the agship project of his ministry. Mr. Hylton said his main role would be to nd the necessary capital and investors. He said the projects ve components would be attractive to investors given the expansion of the Panama Canal. The Minister said he had already received expressions of interest from potential investors in the Persian Gulf for the development of the hub, which he said could position Jamaica as the logistical centre for trade in the Americas. The ve elements are: Vernam eld in Clarendon All ve projects are carry-overs from previous government administrations.Panama Canal Authority sets recordsT posted a number of records in its The reason was a continuing growth in tonnage moving through the canal and higher tolls, particularly for containerships. In nancial year 2011, a record total of was moved through the waterway, up three per cent on the ACPs previous record achieved in 2007. Notable was the strong rise in panamax ships using the canal, accounting for from tolls. Overall, the ACP registered a cent jump in earnings compared with 2010. As a result, the companys pro t Grapevine

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42 E R I C DE ANS CO M P L E T E S STUDY is strategically located close to the Canal, the research provides up-to-date insights that could allow Jamaica to capitalise on maritime opportunities with The research analysed shippers preferences for ports and designed a model that could be used to prioritise investments in ports. In addition, the strong environmental component of the academic programme tive to the committee. measures to reduce ship emissions. He was the author of a proposal to reduce greenhouse gas emission from ships through port-state control measures. This ment Protection Committee.Panama Canal: new scheduleT Quoting Jorge Quijano, the engineer in charge of building the third set of ready for their scheduled opening in October 2014 but would be ready the concrete, which according to the specications is required to last for not be completed until April 2015, six months after the target date for operation. According to the Journal of Commerce, Mr. Quijano will become the Caucedo set for Panama Canal expansionP Worlds Caucedo Multimodal reportedly announced on March 15 that, as of March 22, the Merchant Marine would be using operations centre for container shipments between North and completion of the Panama Canal expansion in 2014. Located east handles about 25 containerships a has a sophisticated security system, with over 100 cameras and motionactivated sensors. invested in security measures, according to the report. The port has an annual handling capacity of 1.25 million teu. An expansion completed in 2011 has increased deepwater berth and equipped it with two new mobile cranes in addition to the existing ve post panamax gantry cranes. The port now has three deepwater berths The terminal covers an area of 50 hectares with storage space for G rapevine

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43 M ontserrat port back in operation after 15 yearsThe government of Montserrat is giving sand miners who ship through the reopened Plymouth Port a 50 per cent reduction on export charges. up the governments invitation to ship sand via the pier, which has been out Premier Meade said the rst day of shipping had gone smoothly and he praised the public and private partners for their joint eorts. He said that use of the port would allow the sand mining industry to continue uninhibited by limiting the quantity of sand that can be carried on the main roads. N ew head of SAL appointed managing director. Port Authority of Jamaica wins againT At the convention, the PAJ signed a sisterport agreement pairing Jamaicas C MI SIGNS P A C T WITH FRE N C H INSTITUT EThe Caribbean Maritime Institute Management de Normandie in Le Havre, France. The alliance with the French institute is part of the CMIs quest to remain rel evant in meeting the needs and expec tations of the maritime and land-based shipping industry of the Caribbean and eration in the following areas: executive training programmes projects ment de Normandie. In addition, the institutions plan to access nancial support for joint projects from the International Maritime Organi and other third-party funding bodies. in a series of meetings sponsored by cipal aim of these meetings was to strengthen ties in the areas of applied research and port/maritime studies.

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On February 13, 2012 the computer giant A pple launched a promotion, offer ing a prize to the person who downloaded its 25 billionth application. S o, downloading an app to an iPhone, iPad or iPod T ouch gave the purchaser a chance to win. T he prize? A $10,000 A pple S tore gift card. For the few who may not know, app has become the popular abbreviation for application. In less than one month, on March 5, Apples home page read: A billion thanks, 25 times over the App Store has reached 25 billion downloads. Thanks for getting us there. Wow! Congratulations to Apple and to the winner of the $10,000 gift card. To reach 25 billion of anything is nearly beyond comprehension. Ten Indeed, we have a tipping point tipping towards a new model for computing, digital content, software and the web. Not surprisingly, tipping points are without borders. In previous issues of Carib-bean M aritime, I offered fore casts of the next new thing and next new think under the Janus View1, and Eleven Ways to Cope with Future Shock2 rubrics. In these columns I cited apps as technology markers for change. While new to some, this growing model is transition ing the way our lives and our businesses are conducted. This transition began on March 6, 2008 when Apple made available a tool kit for third-party independent software developers to make apps for its iPhone. At record pace apps affordably engaged the user, the retail customer. Of the hundreds of thousands of apps now available, half are for free or cost between US$5 and US$9. Gradually, and in the very near future, apps will likely migrate to the enterprise level and become quite an ordinary part of our computer systems likely our smartphone computer-inour-pocket. Of note, Microsoft app is included in the new Windows 8 operating system. W HAT DOES A LL O F THIS MEAN F O R OU R BUSINESSES?This is less about apps than it is about our leadership and our ability to effect changes in our companies. And changes, ulti mately, are manifested as our future success or failure. The Apple app event was not an accident. Offering tool kits to developers was deliberate. There was strategic intent. By extension, it offered its custom ers the opportunity to create their own value and ultimately to create a business system Managing change :25 BILLI O N N O W WHAT ? 44 to the ninth power; nine zeros after the one; 1,000 millions; or, in computer parlance, just a bit less than a gig. Off the charts? Lets relate this to realworld numbers. It is roughly the income of the Christy Walton Family (Wal-Mart). Or, accord ing to Bloomberg Billionaires Index, nearly half the income of Microsofts Bill Gates or Warren Buffett.MAGNITUDERegardless of the number of zeros, the magnitude of this accomplishment (that is, selling 25 billion units) is far-reaching and of serious implication. In his 2000 best seller Tipping Point: How Little Things Can Make a Big Difference, Michael Glad well posits that a single event, with scale, changes a culture.Of the hundreds of thousands of apps now available, half are for free or cost between US $ 5 and US $ 9 By Joseph Cervenak B ridgeview

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allowing them to do more, do better and at less cost. For us, this is a time for rigorous self-examination of our value offerings and value-creat ing systems that is, if we have such. And it is an examination of how we run our business. No, this is not external nor a macro factor. This is pervasive and close to the vest. The inscription Know Thyself at the Temple of Apollo at Delphi and so often posited by Socrates some 2,500 years ago, never rang so true. We need to develop plans to achieve forward-looking accomplish ments and do so (most likely) by changing and reshaping our business model. While we may hope for charts with slopes that are gradual linear regressions and predict able, our preference for change is three or four years away. While we would like to live in 2015 and 2016, visualising the future so we can anticipate and solve todays problems, it simply is not in the calculus. Our actions today demand that we set a strategy emanating from the challenges and changes of our time and grasp the big picture. (Read: innovation, creativity, developing people and technology.) According to Henry Mayers Hyndman, author of The Evolu tion of Revolutions: Leadership is about coping with change ... leading an organisation to constructive change begins by setting a direction. And, if I may add, ours is to set forward-look ing strategy that is grounded in todays reality while making necessary change and guiding our people to above-the-bar accomplishments. Jim Irsay, owner of the Ameri can football team Indianapolis Colts, understands this reality. Does he pay the $28 million roster bonus to NFL quarterback Peyton Manning or let Manning become a free agent? When you are younger, you think theres a wise man behind that door with a white beard, and you can go see him and hell tell you the answers, Irsay said. But that man is not there. He goes on: Continuity is a great thing: stay ing the course and being patient, those are important virtues. But, also, there is virtue in being realistic enough to know you have to make serious changes sometimes.F UTU R ISTConsider Tom J. Frey, Googles top-ranked futurist and host of FuturistSpeakers.com where he writes of 28 Major Trends for 2012 and Beyond: Our vision of the future creates our actions today. He adds: This is a period of extreme chaos and also a period of extreme opportunity we are in a very uid changing world. How ever, prudence suggests we acknowledge that our world is still coupled to an ever-so-slow recovery from economic crises. To this point, Lynda M. Apple gate, Martin Marshall Profes sor of Business Administration at Harvard Business School, extolled in her article entitled Sharpening Your Skills: Leading Change ( HBR newsletter June 6, 2009): An economic crisis is a charter for business leaders to rewrite and rethink how they do business. The key, Ms. Applegate advises, is:Dont think retrench ment; think growth. Her key con cepts are to identify and exploit innovation; to rethink offerings, markets, business processes and organisational structure; and to create innovative new offerings. Interestingly, albeit with tongue in cheek, we have identi ed two opportunities: one from the ongoing economic crisis and one from providing a channel to the customer for ongoing valuecreating activities.W HAT TO DO WITH THESE O PP O R TUNITIES?We begin by acknowledging that change is an engineering proc ess that replaces the funda mental nature of an institution. Alternatively stated, we are re-engineering our company yes, once again, and thank you Messrs Hammer and Champy3. Further, we need to move to the fore the effort of re-examin ing our mission, conrming our vision and validating our purpose. Without doubt we are challeng ing our very being: the business model of today, and this, of course, is frightening. However, or as Mike Jarrett is fond of adding, the sobering thought, however, is that it may not work for tomorrow. As such, we might have to move quickly and far from our core business model. In contrast, if after examination we decide to effect change and innovate before we have to, thus avoiding the shroud of urgency that diminishes our options, we are then able to develop alterna tive strategies and embark on incremental adventures. Make changes, take on initiatives that are inconsequential but not life threatening think accretion. Another however, this time a caution as put forth by author Scott Anthony refer encing Kodak, which led for Chapter 11 (bankruptcy) protection on January 19, 2012: Even an insightful company can go wrong if it doesnt push far enough, fast enough into uncomfortable territory. No need to read tea leaves; instead, we need to develop new and better systems to regulate, 45 manage and leverage the activi ties surrounding them. And, in the light of new experiences, reexamine, re-examine and act. All such said, where will we be when we realise everything has changed? For Apple, with rumoured release of iPhone 5, the new iPad, Macbook Air and 25 billion downloads; and, crossing the $500 billion mark, 2012 is a banner year Apples annus mirabilis a miracle year. It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. Charles Darwin. 1 Joseph Cervenak, The Janus View, Changes and Transitions 2011, Caribbean Maritime No. 12, (January April 2011): 52-53. 2 Joseph Cervenak, Eleven Ways to Cope with Future Shock, Carib bean Maritime, No 15 (January to April 2012): 46-48. 3 Hammer, M., & Champy, J. (2001) Reengineering the Corporation: A Manifesto for Business Revolution. New York: HarperCollins Publishers Inc. *Joseph Cervenak is managing principal of Kemper-Joseph, LLC www.kemperjoseph.com Email: info@kemperjoseph.comThis is less about apps than it is about our leadership and our ability to eect changes in our companies

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The 1980s saw increased attention paid to organisational culture as a key deter minant of success. D uring this period, experts argued that developing a strong organisational culture was essential for success. According to these experts, while the link between organisa tional culture and organisational effectiveness is far from certain, there is no denying that every organisation has a unique social structure. They argued that these social structures drive much of the individual behaviour observed in organisations. Organisational culture can be viewed at three levels based on manifestations of the culture in tangible and intangible forms. At the rst level, an organi sational culture can be observed in the form of physical objects, technology and visible forms of behaviour. For example, people may interact with one another, but what the underlying feelings are, or whether there is under standing among them, would require some probing. C U L TU R A L VA L UESAt the second level, there is greater awareness and inter nalisation of cultural values in which people in an organisa tion try solutions of a problem in ways which have been tried and tested in the past. If the approach is successful there will be shared perception of that success, leading to cognitive changes. Perception turns into values and beliefs. The third level represents a process of conversion, when a group repeatedly observes that the method that was tried ear lier works most of the time. This then becomes the preferred solution and gets converted into underlying assumptions. These three levels range on a scale from supercial to deeply embedded. And, as cultural symbols get converted to shared assumptions, they move from a supercial level to a real internationalised level.INEVITAB L ENevertheless, change is inevitable and changing the organisations culture is always one of the toughest tasks an executive ofcer will ever take on. It is important to note that an organisational culture is formed over years of interac tion between the individuals in the organisation. Therefore, changing the accepted culture can feel like rolling rocks uphill. Organisational cultures are formed for a reason. Perhaps the current organisational culture matches the style and comfort zone of the companys founder or its CEO. In the Carib bean shipping industry, where companies are predominantly family owned, managers tend to hire people just like themselves. 46 Change is inevitable and changing the organisation s culture is always one of the toughest tasks an executive ocer will ever take on The established organisational culture is therefore reinforced by new employees.TH R EE SIGNI F I C ANT STE P SIt is sometimes argued that, for people to consider a change of an organisations culture, a sig nicant event must rst occur. An event such as bankruptcy or a signicant loss of sales and customers may awaken people to a need for change. Even then, recognition that the organisa tions culture is the cause and that there is need for change is not always readily understood or accepted. Even if it is, the initial steps towards change are dif cult to take. The following are three signicant steps to chang ing an organisations culture: 1. Before an organisation can change its culture, it must rst understand the current culture. 2. Objectives of the new culture must be clearly dened. Identify where you want to go and what the organisational culture should look like to support success. Then, map the strategy and direction. Questions pertaining to what vision the organisation has for its future and how should the culture change to achieve this should be resolved. CHANGING AN OR GANISATI O N S C ULTU RE F OR SU R VIVALBy Fritz Pinnock T he Human F actor

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By Milton Samuda3. Finally, the individuals in the organisation must decide to change their behaviour so as to create the desired organisational culture. This is the hardest step in culture change.BUILDING A TEAM CULTUREFostering teamwork will ultimately create a culture that values collaboration. In such an environment, people understand and believe that problemsolving, planning, decisionmaking and planned actions are better when done cooperatively. People recognise, and even assimilate, the belief that none of us is as good as all of us.TEAMWORKIts hard to nd workplaces that exemplify teamwork. In the Caribbean, for example, institutions (such as schools), family structure; sport and pastimes emphasise winning; being the best and coming out on top. Workers are rarely raised in environments that emphasise true teamwork and collaboration. One can, however, create a teamwork culture by doing just a few things right. Admittedly, theyre the hard things; but with commitment and appreciation for the value, you can create an overall sense of teamwork in your organisation. To make teamwork a reality, the following powerful actions must occur: 1. Leaders communicate from the top the clear expectation that teamwork and collaboration are expected. 2. Leaders model teamwork in their interaction with each other and the rest of the organisation. 3. The organisations members talk about and identify the value of a teamwork culture. 4. Teamwork is rewarded and recognised. 5. Important stories and folklore that people discuss within the company emphasize teamwork. KEYS TO TEAM BUILDING1. Provide training in systematic methods so that the team expends its energy on the project, not on guring out how to work together as a team to approach it. 2. If team members are not getting along, examine the work processes they mutually own. The problem is not usually the individual personalities of the team members. It may be the fact that the team members often have not agreed on how they will deliver a product or a service or the steps required to get the problem solved. 3. Take the team to a sporting event. Sponsor dinners at a local restaurant or in the of ce. Go to a movie. Hold a monthly or quarterly company meeting. Sponsor sports teams and encourage team support. What these keys suggest is a set of value systems that are shared equally by all the members of a team. These sets of values take a long time to evolve but when achieved are sustained over a long period. They become the nucleus around which consensus can be built. Dr. Fritz Pinnock is Executive Director of the Caribbean Maritime Institute47 Policymakers must realise that the implications actually start outside of our ports Climate change, policy and the Caribbean Sea ( a Jamaican initiative )On December 29, 2011 Jamaicas Portia Simpson-Miller led the Peoples National Party to an emphatic general election victory. On January 5, 2012 she was sworn in as the seventh Prime Minister of Jamaica. Just hours after her swearing in, the new Prime Minister announced her Cabinet. Interestingly, she announced Robert Pickersgill as Minister with portfolio responsibility for water, land and the environment. Of note, however, was the nomenclature of the new Ministry. It was designated the Ministry of Water, Land, Environment & Climate Change.THEMEClimate change? Really? What was the Most Honourable Prime Minister thinking? One may be forgiven for thinking that my introduction is irrelevant to the theme of this issue of Caribbean Maritime, Ports and Terminals, and must have nothing to do with law. But let us look deeper. Surrounded or bordered by the Caribbean Sea or bordered by the Atlantic Ocean, Caribbean and Central American territories, their governments and ports must be concerned about the issue of climate change and its potential impact on seaports. All the results of climate change the rise in global temperatures, the resultant glacier melt, the rise in sea levels, increased ooding, storms of greater intensity, stronger and more frequent storm surges have real implications for A Matter of Law

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48 our ports. In a region already vulnerable to tropical depres sions, storms and hurricanes, Caribbean ports must prepare to mitigate and manage the con sequences of climate change. Bear in mind that the Caribbean Sea supports three vital indus tries: sea transport, shing and tourism.C L IMATE C HANGE AND THE L AWPolicymakers must realise that the implications actually start outside of our ports. Climate change has an impact on, for example, agriculture (affect ing yields) and on road and rail transport (affecting usage), thus ultimately affecting the delivery of cargo to ports. The need to be proactive will result in the re-enforcement of structures and adjustments to inland infrastructure, all in an effort to respond to the growing appreciation of the risks posed by climate change and the need for adaptation. Against that background, the preparation to mitigate and manage, and to recognise and adapt, must include matters of law treaty arrangements, statutes and regulations which frame a united response, coordinated across, at the very least, the Caricom territories. Legal details to be addressed, I suggest, should embrace, at the regional, and maybe hemi spheric, level, a coordinated response to climate change, building on the work already done by organisations such as the Association of Caribbean States (ACS), particularly its Caribbean Sea Commission.R ESO L UTIONThe work of the ACS towards having the United Nations declare, by resolution, the Caribbean Sea a special area for sustainable develop ment not only recognised the potential impact of climate change on ports and low-lying coastal areas but also the critical importance of the three industries shipping, sh ing and tourism to the ACS countries of the Caribbean and Central America. Treaty obliga tions should reect the threats of climate change. They should set new standards for shipping and for the use of the Caribbean Sea. Governments throughout the region should collaborate in identifying funding for mitigation and adaptation responses and should agree on the criteria for access to treaties.R EA L PR A C TI C A L ISSUESAt municipal level, the neces sary statutes and regulations must be updated in order to provide for: (a) an approach to the provision of catastrophe insurance; (b) the tax treatment of the additional expenditure necessarily made by ports in response to climate change mitigation and management; and (c) the regulation of safety and other issues concerning the movement of cargo to port, the storage of cargo on port and the loading/discharge of cargo. It is clear that the law will have to respond through the lens of concepts such as force majeure, negligence, foresee ability, reasonableness, insur ability, liability, responsibility, loss and damage. Ultimately, case law will develop from actual claims and will assist shipping and other interests in interpreting their own place in this specic part of an everchanging world. These are not esoteric or philosophical matters discussed against the background of a rash and baseless theory. They are real and practical issues born of a scientically conrmed phe nomenon with which our region must grapple for solutions.PO L I C Y AND NEED F O R A C TIONAt a press brieng follow ing his attendance at the 17th Conference of Parties (COP) to the United Nations Framework Convention on Climate Change in Durban, South Africa (Novem ber 28 to December 10, 2011) Minister Pickersgill announced the formation of a department within his Ministry to deal exclu sively with climate change. He said Jamaica intended to access nancing under the Conventions Climate Change Adaptation Fund. He said Jamaica would embark on a programme of adaptation in response to the effects of climate change.R E C OGNITIONMr. Pickersgills statements indicated a recognition of the importance, if not yet urgency, with which a response to climate change must be made. Against the background of a languishing Kyoto Protocol and Jamaicas suffering of hur ricane and storm damage in excess of US$1.4 billion over the last eight years, Mr. Pick ersgill said: As Jamaicans, as a government and as a ministry, we cannot but respond to the new challenges being posed by climate change since our survival depends on it.CON CL USIONWhatever the Jamaican Prime Minister was thinking, it was strategic and timely. The recognition by Prime Minister Simpson-Miller of the threat, her open acknowledgment of the need to address that threat, and her inclusion of the words climate change in a named Ministry, are exemplary. She has sent a clear message to the region and has, in the process, struck a blow for the protection of the natural environment and for the commerce, livelihood and indeed national develop ment, so heavily dependent on the Caribbean Sea. Milton Samuda is managing partner of the Jamaican-based law firm Samuda & Johnson. Ultimately, case law will develop from actual claims and will assist shipping and other interests in interpreting their own place in this specic part of an ever-changing world A M atter of L aw