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Title: Caribbean maritime
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Permanent Link: http://ufdc.ufl.edu/UF00099408/00001
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Title: Caribbean maritime
Physical Description: Serial
Language: English
Creator: Caribbean Shipping Association
Publisher: Land & Marine Publications Ltd.
Place of Publication: Colchester Essex, England
Publication Date: May 2007
Copyright Date: 2010
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No. 1 I MAY 2007

6 CSA honorary members
CSA appoints members-for-life
7 Puerto Rico
Mayaguez poised to take off
11 Jones Act still debated in Puerto Rico
13 Trinidad & Tobago
Efficiency experts will work with PLIPDECO
15 Caribbean schooner trade
Is there a future for the Caribbean
Schooner trade?
32 Guadeloupe
Guadeloupe well on the way to modernization
37 Curacao
Curacao plans mega cruise terminal
38 Dealing with growth
Continuing growth in shipping industry
a major challenge for Caribbean
43 Guyana
John Fernandes expansion strengthens
Guyana's shipping industry
45 Barbados
Bridgetown's investment in major expansion

2 Editorial
The pursuit of excellence
3 Message from the CSA President
4 Letter from the General Manager
A year of challenges successfully met
14 &34 The Human Factor
28 Newsmaker
David Harding -An authority on
maritime transport
35 Ships
CFS takes delivery of its largest ship
41 CSA News
48 A Matter of Law
Piracy and maritime terrorism
challenges for Caribbean shipping

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




No.1 I MAY 2007

The official journal of the Caribbean
Shipping Association

* caribbean shipping association

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

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

Publications Ltd
1 Kings Court, Newcomen Way,
Severalls Business Park, Colchester
Essex, C04 9RA, UK
Tel: +44 (0)1206 752902
Fax: +44 (0)1206 842958
Email: publishing@landmarine.com
Managing Director: Gary Gimson
Sales Director: Lester Powell
Studio Manager: Carl Thompson
Design: Guy Clubb
Editorial: John Tavner, Robert Deaves
Advertising Administrator: Judith Gimson
Office Administrator: Lindsaye Nunn


The pursuit of excellence

A commitment from the Editor

As I write this, the Caribbean people are hosting Cricket World Cup, the
biggest single event in the game. I just watched the Australian team beat
the stuffing out of what, up to now, looked like a very capable Sri Lankan
side. In so doing, the Aussies chalked up their 20th consecutive victory in the
Cricket World Cup. Yes, 20 consecutive World Cup victories the operative
word being 'consecutive'.
Now, a careful look at the Aussie players will reveal one simple fact. They are
all human beings. Not one appears to have supernatural powers and, to the best
of my knowledge, none has demonstrated such powers on the field of play. To
my mind, this is the single most inspiring characteristic of the individuals in the
Australian team. The fact is, they are mere mortals, playing by the same rules and
in the same conditions as all the others, with no greater accumulation of individual
talent than any of the other leading teams. They certainly do not boast the world's
best batsman. The team with that individual, the world record holder, is not even
a contender at this stage for the semi-finals. The Aussies do not have the best fast
bowler or the best spin bowler in this competition.
If nothing else, the Australian cricketers' performance so far proves my argu-
ment that excellence is achievable. It is not the exclusive domain of special or
gifted persons.

Excellence is achievable
My sons have adopted my personal motto. Indeed, Andrew and Jason have placed
it at the top of their curriculum vitae. "With relentless effort and attention to
detail, excellence is achievable." I also believe the converse of my motto to
be true. Without relentless effort and attention to detail, excellence cannot be
achieved and sustained.
I bring my motto as a personal commitment in establishing 'Caribbean Mari-
time' as the official journal of the Caribbean Shipping Association. I start this jour-
ney celebrating a quarter of a century of counsel to the General Council of the CSA
and even more years of journalism and writing experience under my belt. Against
this background I made a commitment to General Council on January 22, 2007 in
proposing and naming this publication. And here, as Editor, I reaffirm and recom-
mit to the CSA; to all our readers; to our advertisers; indeed, to all the peoples of
the wider Caribbean Region. With relentless effort and attention to detail 'Carib-
bean Maritime' will achieve excellence and hence sustainability.
In future editions, this space will carry the Editorial of 'Caribbean Maritime'. The
Editorial will document the position of the CSA as it continues its historical mission
of bringing development to the peoples of the Caribbean, by helping to build an
efficient and viable shipping sector. The CSA's objectives are clearly articulated
in its mission statement. 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. In this pursuit, we seek and invite your support
and, indeed, criticism.

Mike Jarrett, Editor


Statement from

the President

on the launch

of 'Caribbean



True to its mandate to
facilitate development
of the Region's shipping
industry, the Caribbean
Shipping Association takes
another bold step forward
in publishing its official jour-
nal, 'Caribbean Maritime'.
The CSA is the voice of the
Caribbean shipping industry
and 'Caribbean Maritime' will
be a major institution in the
work of the Association. 'Car-
ibbean Maritime' is now the
official journal of the CSA.
'Caribbean Maritime' will
be a high quality, full color
business magazine. Its edito-
rial philosophy is "to support
the growth and develop-
ment of the maritime
industries of the Caribbean
Region". Content will there-
fore focus on development
issues. Coverage will include
cargo shipping, the cruise
industry, port and terminal
operations and the individ-
uals and organizations that
make development happen.
Its pages will be filled with
thought-provoking articles
and informed commentary.
'Caribbean Maritime' will
be published three times a
year and distributed in over

30 countries in South Amer-
ica, Central America, the
Caribbean, the United States
of America and in European
countries where shipping
lines serving the Caribbean
have headquarters. In addi-
tion to CSA members and
the wider shipping com-
munity, the magazine will
be distributed to suppliers
of goods and services to the
shipping industry.
'Caribbean Maritime' will
be produced by the CSA. Its
editor is Michael S.L. Jarrett, a
journalist with over 30 years'
experience who has been
the CSA's Director of Informa-
tion and Public Relations for
the past 16 years. Mike will
be using the services of one
of the UK's leading maritime
publishers, Land & Marine
Publications Ltd, which
currently produces the CSA
Handbook of Caribbean Ports.
I encourage all players
in Caribbean shipping to
advertise in this magazine
and, in so doing, to support
regional shipping.

Fernando Rivera
President, Caribbean
Shipping Association

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A year of challenges

successfully met

Open letter from the CSA General Manager


The year 2006 was one
of challenge for the
Caribbean Shipping Asso-
ciation as we faced the
task of bringing together
a new discussion group for
NVOCCs. We also acted as
secretariat for the Carib-
bean Village at the Seat-
rade Cruise Conference in
Miami. And we faced the
challenge of electing a
new President and Gen-
eral Council at the 36th
annual general meeting in
Panama. Nevertheless, we
had a successful General
Council meeting on Janu-
ary 30 that allowed us to
plan and prepare for the
coming year.
The Secretariat used the
time in January to discuss
plans for both conferences
scheduled for the year as well
as looking at ways to improve
efficiency. One area of con-
cern is the amount of paper
we produce and we will
continue to pursue the use of
the internet to communicate
and send documents.
Last year we completed
the revision of our guide-
lines for hosting confer-
ences. We also created
a contract for exhibitors
participating in the CSA's
Shipping Insight business
exposition so that both par-
ties are fully aware of thei r


responsibilities. The Secre-
tariat also discussed matters
raised at the General Council
meeting, including the
possibility of a study tour
for senior executives in the
maritime industry.
The CSA presented
another successful annual
Caribbean Shipping Execu-
tives Conference, the fifth
in this series, which has
replaced the semi-annual
general meeting. Over 130
delegates from 15 countries
attended the conference in
Curacao on May 22, 23 and
24. We faced challenges
before the conference as
the volcano in Montserrat
erupted, creating an ash
cloud that led to the cancel-
lation of quite a few flights
into Curacao. Despite these
challenges we once again
had a successful conference.
On the third day of the con-
ference we presented the
cruise shipping forum. There
is quite a bit of interest from
our members, but the CSA
has to look at how best we
can develop this area.

The CSA conducted two
training seminars since we
last met at the 35th AGM &
Exhibition in Barbados in
October 2005. In addition,
we partnered with Secu-
rity Administrators Ltd as a
minor sponsor in its con-

tinued efforts to train port
facilities security officers.
The CSA hosted a course
in Montego Bay, Jamaica,
aimed at cruise operators
and shore excursion busi-
nesses. This was a new
attempt by the CSA with
regard to training as we are
looking to further our foray

- and our name-brand into
the cruise ship industry. This
highly concentrated course
discussed practical ways in
which a company's manage-
ment practice will continue
to enhance and improve
its performance. It focused
on the fact that all systems
techniques and operations
must be dynamic as well
as being able to forecast
strategies for survival in this
competitive market.
A total of nine par-
ticipants, all from Jamaica,
registered for the course,
of whom seven are on the
shore excursion side of the
industry. Two registered
participants, Curacao and
Antigua, had to withdraw

owing to conflicts with the
start of the cruise season.
Overall feedback from the
course was good. Several
people said they would
be interested in follow-up
The second training semi-
nar was conducted in April
in Curacao. This workshop

was conducted at the Dutch
Caribbean Training Centre
and was attended by 15
shipping industry personnel
from Barbados, Aruba, Anti-
gua, Curacao and Bonaire.
Entitled Strategic Manage-
ment for Cargo and Cruise
Operations, the workshop
was geared to managing
directors and senior opera-
tions managers at port facili-
ties and shipping agencies.
This was a powerful man-
agement seminar on how
to run a port facility within
the current fast-changing
In August we once again
partnered with Security
Administrators Ltd (SAL) on a
port security officers course.

MAY 2007

"The CSA Secretariat acted as
secretariat for the Caribbean Village
at the Seatrade Conference in Miami
in March 2006. Thirteen destinations
participated jointly in the annual
trade show and exhibition under the
Caribbean Village banner"


It was a well attended course
with over 35 participants
from four countries. This
is an ongoing series being
spearheaded by SAL and
we fully endorse its efforts.
The company's Managing
Director, Capt John Ulett,
has made presentations at
CSA meetings over the years
and has always been willing
to work with the Association.
We had also scheduled a
course in partnership with
Trainmar for the last week
of July, but this had to be
postponed owing to costing
(presenter's fee) and low
registration. Based on expe-
rience, we will refrain from
presenting courses in June
and July because of low par-
ticipation from members.

Maritime Institute
Throughout 2006 we
continued to work with the
Caribbean Maritime Institute
on various projects. We note
that CMI has a new Manag-
ing Director, Fritz Pinnock,
who is well known to the
CSA, having worked with us
as a presenter for our train-
ing seminars. We continued
to serve as a member of the
Jamaica Maritime Trust Fund
and once again we were
invited to participate at the
graduation ceremonies for
the institution.

Caribbean Village
The CSA Secretariat acted
as secretariat for the Carib-
bean Village at the Seatrade
Conference in Miami in
March 2006. Thirteen desti-
nations participated jointly
in the annual trade show
and exhibition under the
Caribbean Village banner at
the Miami Seatrade Cruise

Convention 2006. These 13
destinations are Antigua,
Barbados, Bonaire, Curacao,
Grenada, Guadeloupe,
Jamaica, Mayaguez, Marti-
nique, Port of Miami, Puerto
Rico, St Lucia, and Trinidad
& Tobago. Together they
represent over 3 million pas-
senger arrivals.
The primary aim of
the Caribbean Village is
to leverage the Region's
dominance in the cruise
shipping market and pro-
mote further collaboration
between national cruise
shipping organizations. The
Caribbean is still the premier
destination for cruise lines
and the key message to the
cruise and travel community
is that we look forward to
continuing to develop this
market, in conjunction with
our industry partners, in a
way that benefits everyone.
The Caribbean Village also
participates at Seatrade
Europe and we expect
that the Caribbean Village
will continue to grow and
expand as more destinations
and industry partners join
this collaborative effort.
This was a successful
conference for members of
the Caribbean Village and,
based on feedback from
those attending, the con-
cept was well received and
we should see our member-
ship continue to grow. For
further information please
contact the CSA Secretariat.

We continue to keep this
issue in the forefront of all
group members. Based on a
decision by General Council,
we made a concerted effort,
with the aid of the President,
to have a discussion meet-

ing for Non Vessel Operating
Common Carriers at the 36th
AGM. We were moderately
successful, with only six
NVOCCs in attendance, but
I feel this is a step in the
right direction. The mem-
bers thought so, too, and
pledged to continue their
support for the CSA's efforts.
Everyone agreed we should
market the conferences to
try to get more active par-

Cruise Committee
The Cruise Committee
remains enthused about
what can be accomplished
if we continue to market this
area. The committee has
had success with staging the
Cruise Day seminar as well as
acting as secretariat of the
Caribbean Village.
We note that the Cruise
Day needs to be better devel-
oped and we are looking
at how best to market this
product to take advantage in
Mayaguez in May 2007. This
is an area of growth in which
our members need to get
actively involved in order to
remain viable in the maritime

36th AGM,
& Exhibition
The 36th Annual General
Meeting, Conference and
Exhibition was held in
Panama for the first time.
Sophia Samuels, adminis-
trative assistant of the CSA
Secretariat, visited Panama
in September to conduct site
meetings and get first-hand
knowledge of the hotel and
conference facilities.
Our PR director, Mike
Jarrett, did a good job of
marketing the conference

in partnership with the host
country. Brochures for the
AGM were colorful and elic-
ited positive responses from
our membership on the
presentation. The host for
the 36th AGM did things dif-
ferent than in the past. The
trip to the port tour was by
train and we were properly
looked after on the Panama
Canal Railway Co. Delegates
also had an opportunity to
tour the Panama Canal by
vessel. The CSA also held its
second annual golf chal-
lenge with over 15 golfers
participating in the benefit
tournament, which will con-
tinue to attract golfers in the
maritime community.
This year's port award
competition attracted over
10 entrants and we saw
Kingston Wharves Ltd and
SPRC in Cartagena walk
away with the prestigious
trophies for most efficient
ports in the Region.
The 36th AGM, Confer-
ence and Exhibition was an
extremely successful event.
With over 260 delegates
attending, it continues
to demonstrate the CSA's
importance in the regional
maritime industry. Del-
egates, participants and
presenters were pleased and
impressed with the profes-
sional and efficient way the
Secretariat handles all the
conferences and this is
due in no small part to the
efforts of Sophia Samuels,
Michael Jarrett, Dionne
Mason-Gordon and Andrea
Cameron who works with us
at the AGMs.

Stephen Bell
General Manager,
Caribbean Shipping



CSA appoints four

honorary members

The Caribbean Shipping Association
has recognized the contribution
of four stalwarts by appointing them
honorary members of the Association.
Peter Evelyn, Michael Blackman
and Ludlow Stewart were present in
Panama at the 36th annual banquet on
October 17, 2006 to receive the instru-
ment of honorary membership and the
accolades of their colleagues from the
outgoing President of the Association,
Mrs Corah Ann Robertson-Sylvester. The
fourth person, Noel Hylton was not
present in Panama.
Peter Evelyn was the CSA's founding
President. He was chair of the steering
committee that did the development
work in establishing the Association and
was elected to lead the Association at its
first General Meeting held in Nassau in
the Bahamas on October 19, 1971. Under
Mr Evelyn's leadership, the CSA moved
forward dealing with the fundamental
decision-making, problem-solving and
the setting of standards that is neces-
sary in establishing an organization with
members from different countries.
Noel Hylton, who today heads the
Port Authority of Jamaica, was General
Manager of the Shipping Association of
Jamaica and was also a part of the steer-
ing committee that established the CSA.
As the SAJ's General Manager, Mr Hylton
did much of the work in registering and
establishing the CSA and its Secretariat
in Kingston, Jamaica. He was the CSA's
first secretary and executive Vice Presi-
dent and had to deal with much of the
documentation and establishment of
procedures that the new organization
required. His was the task of organizing
the content and logistics of the Associa-
tion's first general meetings.
Michael Blackman was the second
President of the CSA. He was elected
to office at the third annual general
meeting, held in Kingston, Jamaica,


in October 1973. Mr Blackman served
one term as President. When Ludlow
Stewart moved to make training central
to the work of the CSA, he turned to Mr
Blackman to lead the way. Mike Black-
man was therefore named the CSA's first
training director in 1981 and it was he
who organized and produced the CSA's
first training seminars in Barbados.
Ludlow Stewart, the fifth President
of the CSA, was elected to office on
October 15, 1981. Mr Stewart was
recognized for his role in reposition-
ing the CSA and raising its stature and
profile in the Caribbean. By inviting
the political leaders in the Caribbean
to participate in the opening ceremo-
nies of the CSA (which he initiated), he
brought the existence and work of the
Association to the attention of regional
governments. By engaging experts
to make presentations to CSA confer-
ences on topics relevant to shipping
and development, he empowered CSA
members. By making training a CSA pri-
ority and appointing a training director
who organized the first CSA training
seminars, he put to rest arguments
that the CSA was only a "talk shop".
Through effective public relations, Mr
Stewart gave the CSA a higher profile
in the Caribbean, expanded member-
ship across the Region and gained the
recognition of organizations including
Caricom, allowing the Association to
claim the title "the voice of the Carib-
bean Shipping industry".
These appointments bring the
number of honorary members of the
CSA to five Alvin Henry, the CSA's
second executive Vice President, was
the first person to be so honoured.
Honorary members of the CSA are
exempt from membership dues and all
fees for attendance at conferences are
waived. Honorary members of the CSA
are members for life. m

Peter Evelyn is recognized by the
outgoing President

Michael Blackman receives his
honorary membership

Luddy Stewart is handed his honary
membership of the CSA

dhsalia l by LY bllion W&v aopns


Earmarked for major development
is the Puerto Rican port town of
Mayaguez, which appears poised to
pull itself up by the bootstraps. High
on the list are plans to dredge the
harbour to 35 ft.
Founded in 1760 and located on the
west coast of Puerto Rico, Mayaguez
has always been a center of commerce
for the country's western region. Today
it has a population of 101,000 and
Also known as 'The Sultan of the
West' and 'The City of Pure Waters',
MayagOez has emerged as a key manu-
facturing center. Numerous United
States coi portions set up plants in the
Region, attracted by the benefits of

local and federal tax incentives such as
Section 936 of the US Internal Revenue

Ovei the years Mayaguez also became
a center foi the tuna industry. At
one time an estimated 80 per cent
of the tuna consumed in the US was
processed and packed in Mayaguez,
including brands such as Bumble
Bee and Star Kist. Recently, however,
the MayagQez area saw a downturn
in manufacturing as a result of the
phasing out of Section 936 by the US
Congress and the decision of the tuna
industry to transfer operations to the

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ner in the Cai ibbean is the US Viigin
Islands, but that trade is focused mainly
on petroleum products fior the giant
Hovensa refinery in St Cioix, a joint ven-
ture between Hess Oil and Petroleos de
Venezuela SA.
Traditionally, however, the Domini-
can Republic has always been a key

partner of Puerto Rico in the Caribbean
in a trade worth over $1.6 billion a year.
Puei to Rico has nearly 50 fii ms with
shared production facilities in the DR,
which is in sight of Mayaguez.
The proliferation of these joint ven-
tures, sometimes called twin plants, was
in some cases spurred by loans under
Puerto Rico's Section 936 program in
support of the Caribbean Basin Initiative.
Although the program has been phased
out, movie than 20,000 jobs that were
generated in the DR remain in place.
One of the problems expel ienced
by manufacturers in Puerto Rico with
plants in the DR was the high cost of
shipping. "Originally, to ship a con-
tainer from Puerto Rico to the DR
was $1,500 to 52,000," said Edmundo
Rodriguez, Piesident of Nestor Reyes
Customs Biokers. "Large firms like
Baxtei and Hanes Saia Lee welcomed
the advent of the fen y service from
Mayaguez to Santo Domingo because
it brought the shipping cost per con-
tainer down to about $850 to $950."
Edmundo Rodriguez, who chairs
the Transportation Commission of the

Puerto Rico Chamber of Commeice,
sees Mayaguez as a key element in
expanding PueI to Rico's shipping iole.
But lie sees a big problem at Mayaguez
because the harbor has less than 30 ft
of depth compared with 50 ft at Ponce
and 35 to 40 ft at San Juan.
Another problem identified by

Edmundo Rodliguez is the traffic
congestion between Mayaguez and
San Juan. "This situation has to be coi-
rected if Mayaguez is to sei ve the San
Juan metropolitan aiea and eastern
Puei to Rico,' he said.
Mayor Rodriguez requested bids for
a majoi transformation of the May-
aguez port facilities. Repol tedly,

C \RIBBI \N M1RIIIM ll I '.I-i 21- 9

Stroy' m


Critics charge shipping
on US cargo vessels costs
more. Supporters argue
shipping on foreign
vessels cost as much

By John Collins

In 1920 the United States Congress
enacted one of the most significant
laws regarding Puerto Rico and
87 years later one provision of it
remains a subject of debate.
It is called the Merchant Marine Act
of 1920 or Jones Act for short. The
voluminous measure is known by most
Puerto Ricans for awarding United
States of America citizenship to Puerto
Ricans who had become subjects of the
US as a result of the Spanish-American
War in 1898 during which the island
had been occupied by the US.
Another section of the Jones Act,
however, is widely known in shipping
and by business people. Its Section
27 restricts, to vessels built and docu-
mented in the US, the transportation
of merchandise between points in the
USA, including its territories and pos-
sessions embraced within the coast-
wise laws. The Jones Act applies to all
vessels engaged in US domestic trade,
including US possessions. It therefore
applies to all shipping between the US
mainland and Puerto Rico.
For years, critics have charged that
shipping on US cargo vessels cost
more. US shipping lines that enjoy the
monopoly between the US and Puerto
Rico counter that shipping on foreign
vessels would cost as much or even
The Jones Act also applies to the
states of Alaska and Hawaii as well as
to the US possession of Guam, in the

Pacific. Interestingly, the US Virgin
Islands, like the other US possessions
in the Pacific American Samoa and
the Northern Marianas Islands are
exempt. Over the years there have
been repeated efforts in Puerto Rico to
gain exemption from the Jones Act.

Efforts for exemption
Advocates of exempting Puerto Rico
have generally cited the impact of
higher shipping rates on Jones Act ves-
sels and their impact on consumers. In
a recent study, Mohinder Bhatia, of the
Puerto Rico Management & Economic
Consultants, found that the application
of the Jones Act to Puerto Rico cost
$264 million.
Bhatia estimated that the cost to
each person in Puerto Rico was $14 or
$15 per year.
Defenders of the Jones Act have
often cited US national security consid-
erations. They also cite the importance

of a strong US Merchant Marine that
could be used in wartime or periods of
national emergencies. They also view
a domestic fleet as fostering self-reli-
ance and thus avoiding dependency on
foreign operators. That argument was
bolstered following the 9/11 terrorist
attacks in the US.
"Efforts to get Puerto Rico exempted
from the Jones Act encountered stiff
resistance following the 9/11 terror-
ist attacks," said Edmundo Rodriguez,
President of Nestor Reyes Customs
House Brokers and chairman of the
Transportation Committee of the
Puerto Rico Chamber of Commerce.
"Any changes in the Jones Act would
be quite difficult unless they also
applied to all the US offshore territories.
I don't see that happening because the
whole US national defense climate has
Because of Puerto Rico's location and
its trade interaction, shippers have >


A1J lr ji 04 9 *Vi J

jjj;I! 4ueo i


actually figured out ways to utilize both
Jones Act carriers and foreign carriers
for their clients. Rodriguez pointed out
that 80 per cent of containers coming
from the US mainland to Puerto Rico
routinely return north empty. This is
because Puerto Rico requires a vast
amount of consumer goods for its
population of 4 million and additional
millions of visitors.
"Several years ago we would ship
containers for our clients to the Domin-
ican Republic on Jones Act vessels and
the charges were routinely $1,500 to
$2,000 per container," said Rodrfguez.
"Subsequently, a ferry service between

Mayaguez and Santo Domingo was
introduced, which cut the cost in half."
The ferry operator is a foreign carrier.
When New Orleans was recently
struck by hurricane, President Bush
exempted it from the Jones Act
because of the national disaster. But
Bush remains supportive of the Jones
Act while advocating that it should be
adapted to meet modern challenges.
"The US needs a maritime policy
tailored to 21st century needs," said
Bush. "Programs that have contrib-
uted to the growth of our domestic
fleet, such as the Jones Act, should be

Jones Act assets
Carriers that serve the Puerto Rico
route strongly defend the Jones Act
and consider its provisions so impor-
tant that they often refer to their
vessels and land-based equipment as
'Jones Act assets'.
One of the principal carriers in the
route is Crowley.
"The Jones Act assures that the
people of Puerto Rico have a reli-
able and competitive ocean shipping
service," said Roberto Lugo, Crowley's
Vice President and General Manager


in Puerto Rico. "The Jones Act guaran-
tees that the carriers serving Puerto
Rico can continue to provide hundreds
of good-paying jobs to residents in
Puerto Rico as well as in the mainland
US. This also enhances the security of
Puerto Rico's shipping operations and
provides maritime resources that are
vital to the national defense. In terms of
service, quality and cost, the shipping
services provided to Puerto Rico under
the Jones Act are outstanding."
Another carrier in the Puerto Rico
route is Horizon Lines, the nation's
leading Jones Act company, account-
ing for 36 per cent of total US marine

container shipments between the
mainland US and three non-contiguous
Jones Act markets: Alaska, Hawaii and
Puerto Rico. It has served Puerto Rico
since 1956 when its predecessor, Sea-
Land, pioneered the marine container
shipping industry.
Horizon has the largest Jones Act
containership fleet, with 16 vessels and
some 22,200 containers.
With one of the most dynamic
economies in the Caribbean, Puerto
Rico has a diverse industrial sector
that dominates the country's econ-
omy. With a population of 4 million
on an island of 3,500 square miles,
Puerto Rico is one of the most densely
populated islands in the Caribbean. Its
gross domestic product is an esti-
mated $74.9 billion translating into
a per capital figure of $18,725. Its labor
force of 1.3 million is divided between
services (including government and
transportation) at 77 per cent, manu-
facturing at 20 per cent and agricul-
ture at three per cent. Unemployment
is about 12 per cent.
According to the World Factbook,
Puerto Rico's exports of $46.9 billion
are dominated by chemicals, electron-
ics, apparel, medical equipment, rum,

beverage concentrates and tuna. The
main export trading partners are the
US (90 per cent), the United Kingdom
(1.6 per cent), the Netherlands (1.4 per
cent) and the Dominican Republic (1.4
per cent).
On the other hand, Puerto Rico
imports an estimated $29.1 billion per
annum consisting mainly of chemicals,
machinery and equipment, cloth-
ing, food goods, fish and petroleum
products. The major import trading
partner is the US (55 per cent) followed
by Ireland (23.7 per cent) and Japan 5.4
(per cent).
Indications of the level of develop-
ment of Puerto Rico are 1.1 million land
telephones and 2.682 million cellular
phones. It has 32 television stations, 74
AM and 53 FM radio stations, 404 inter-
net hosts and over 1 million internet
Twelve years ago there was a big
debate in Puerto Rico about the impact
of the Jones Act. A leading figure in the
country's shipping industry summed
up the attitude of the skeptics: "There's
going to be a lot of talk, but when it's
all over and the dust settles, not a thing
is going to change there are too many
vested interests involved."
Puerto Rico continues to be buffeted
by the impact of globalization and
free trade as it adjusts to the profound
changes taking place in the world. As
it seeks to increase its international
trade, the application of the Jones Act
and the continued debate on whether
it should be amended will undoubt-
edly prevail, but any change will
require a consensus between San Juan
and Washington that most consider
unlikely. m

John Collins received an Overseas
Press Club of Puerto Rico Award
for his in-depth business feature
article, 'The Jones Act: Good or
Bad?', which appeared in 1995 in
'Caribbean Business'.

"The US needs a maritime policy

tailored to 21st century needs"



Port performance

and productivity by

By Peter J. Fitt professional people

I consider myself a mari-
time professional. My
Master's Certificate (FG)
certifies that I met the cri-
teria for certification based
on my knowledge and
skills. I served nine years
on vessels moving freight
from one port to another.
I am trained to move
freight at sea, to progress
a voyage in the most safe
and effective manner. I was
taught to consider costs by
my owners. I learnt to utilize
time on passage in the most
effective manner and contin-

ually seek ways to increase
speed or reduce time and
distance. I was in the time
management business.
Our ship was built with
a capacity in tons, a speed
in knots at a certain fuel
consumption per day. These
measurements were given
in ratios. These are measure-
ments, which give a delivery
capacity or output.
The voyage was split
between passage time and
port time. Our primary role
was to progress the passage
from FAOP to EOP in the
most effective manner. We
were not only well educated


and trained but we were
given the most up-to-date
measuring equipment and
navigational aids.
Today, a 25,000 ton
deadweight vessel costs
$30,000 per day at 16 knots
using 15 tons of fuel per day
to progress the passage. The
voyage consists of passage
and port time. The former is
managed by the ship's staff
and the latter by the termi-
nal and stevedoring staff.
The cost of operating a
modern terminal is also in
the region of $30,000 a day

(another ratio). No, the ship's
crew does not go home.
They still have to be paid,
fed and housed. The ship
still has to be insured and
paid for. It still costs $30,000
a day! The combined cost of
ship and terminal is $60,000
a day twice the cost of the
ship at sea $2,500 an hour.
The freight rate charged by
the shipowner has to cover
port and passage time.
It is the time manage-
ment of the loading/dis-
charge operation that will
have the greatest impact
on the freight rate. Terminal
utilization depends on the

number of ships it services
per year. Measuring output
and continually striving to
increase productivity will
improve the performance of
the ship and terminal.

Meet the terminal/shift
supervisor. He has 720
minutes to utilize in a 12-
hour shift. Have we made
sure that the total minutes
are operational time and
not non-operational or idle
time? Have we told him what
cycles the cranes and lift
trucks are capable of? What
their capacity is and what is
the benchmark?
Have we told him about
basic ship stability, the
strength of tank tops and
why we have to spread the
load between hatches? Have
we told him why we trim the
ship by the stern? Have we
taught him about grain space,
stowage factors, angles of
repose and sweat, etc?
Have we provided a
decent office for him to
work in with modern output
measuring equipment? Have
we provided radio equip-
ment to all key people to co-
ordinate activities? Have we
taught him how to do a time
audit, measure cycle times
and set objectives to exceed
The answers are mostly
'no'. We hope that he learns

on the job or learns by trial
and error. Can we honestly
call them professionals if we
have not insisted on basic
knowledge and skills?
Should we invest in
supervisor's education,
share the knowledge about
operating costs with them?
Teach them the principles
of logistics and productivity
and cycles and outputs?
Doing things better
should be a measured proc-
ess, not what we hope to
This is all about port per-
formance and productivity
by professional people m

Peter Fitt is a Ship
Master and trained
Industrial Engineer who
has spent his career in
the ports industry in
southern Africa and
Canada. He founded the
Maritime Institute in
1985 and developed a
Ports College in Canada,
an operating division of
the Maritime Institute.

MAY 2007

Today, a 25,000 dwt vessel costs
$30,000 per day at 16 knots
using 15 tons of fuel per day
to progress the passage


Is there a future for the

Caribbean schooner trade?

Every so often there is talk of a possible resurgence in
schooners moving small volumes of cargo between
the island states of the Caribbean.
The argument is usually put forward as a solution to the
problems of inter-island shipping costs and the disecono-
mies of scale inherent in shipping small quantities.
One person who does not see this as a viable or bankable
solution in today's world is David Harding*, former President
of the Caribbean Shipping Association, who believes that
what was once a thriving Caribbean schooner trade is now
dead without hope of resurrection.
"The schooner trade has had its time," said Mr Harding.
"Although there are still some small vessels operating, the
schooner trade business is dead. What killed it are contain-
erisation and the same deepsea services that load for several
A few schooners still operate, predominantly out of St
Vincent, as Mr Harding acknowledged. These captain-owned
and operated vessels run fresh fruit and other cargoes into
the neighboring islands.

Insurance premium
However, Mr Harding pointed out that, when a ship from Miami
visited Barbados and was leaving for St Lucia, the Barbadian
manufacturers could put their cargoes securely, safely and with
low insurance rates in this vessel and ship them to Castries.
He went on: "Before, you ran the risk of insurance compa-
nies saying this schooner is so many years old, the premium
is so high, and you ran the risk that the owner-captain might
decide he has your cargo on board but he just got a call there

* r

is cargo in Trinidad that he can go and load ... and instead of
your shipment getting there in two days' time, it gets there
in two weeks' time."
Mr Harding pointed to developments at the Port of Bridg-
etown to strengthen his argument that the schooner trade
was dead.
"When the Bridgetown Port was further extended, they
added what is known as the Shallow Draft, particularly for
the schooner trade, to move it out of the Careenage. What
has happened in recent times is that there has been a tre-
mendous fall-off of cargo transiting the Shallow Draft. I think
the port would be well advised to have it [the Shallow Draft]
used for something that would give a better return," he said.
Mr Harding also gave the thumbs-down to recent calls
for a regional ferry service, saying it would only work if the
Caribbean Single Market and Economy (CSME) developed
into the kind of operation that was hoped for.
"There is too much hassle for Joe Public to drive his car
on board a ferry in Barbados and then it has to be inspected
by a Customs officer [in St Lucia] and then you have to pass
all kinds of warrants. By the time you are freed to take the
car from the port in St Lucia, you are ready to come back to
Barbados," he argued.
"A ferry service would work well, but it has to be under
arrangements similar to those that are set up for Cricket
World Cup where there is a free flow within the Region. That
is what is required, and I think it will come, but the ferry serv-
ice will not work well for the operator until that day." m

*See profile of David Harding on Page 28



( 'dIIII %N N %III rINIF 1




c'*ail" d a ca rni to 1ran p rd Str. Kiq tn w.

T ir I di 1 riiL : rri r- l r-fi 'i ir I i-it I I
e 3i. i lbl- 4 r0L.r 1 c 1 ', Lj.. -t 3 pe' 3 r

Kincron i .a n L n: is Ud iciMd to s i. customers f and
safely without .rnrlrnise

TELEPHOCE (M87] 923-9211 9, 923-9121-4 FAX (87M) 923-5361S Weftle w A.lngstonwihar com inm


In the year Jamaica gained its Independence in 1962,
a major development project was begun that would
change the face of Kingston forever.
Dredging operations were started in the northwest section
of Kingston Harbor with some 750 hectares (300 acres) being
reclaimed from the sea. It was on this new land space, Newport
West, that Jamaica subsequently established one of the largest
and most modern port facilities in the Caribbean Region.
By December of this year, the Port Authority of Jamaica will
have completed Phase 5 of its ongoing development of the Port
of Kingston and Kingston Containei Tei minal iKCT I will have
boosted its iated capacity by ovei 100 pei cent in twoyeais
Phase 4, which previously expanded capacity by 25 pei
cent, was completed as recently as Septembei 2005.

Staggering and dramatic
KCT's late of expansion has been staggering, while the
increase in business handled by the terminal has been dra-
matic to say the least. When the terminal started in 1975 it


Cotieshade tKT ymjrlne 0520

.I I U~UI I I 99 99


00i l

S ... .. ...


Jamaica works closely with 7

US over port security

Kingston is now one of the safest, tionically controls and regulates access . -
most secure ports in the hemisphere to all port areas e *.
thanks to decisive action by some of Sti ategically placed undle watei -
Jamaica's principal maritime organi- surveillance cameras to inspect the hulls so s s* s
stations and other interested parties. of ships entei ing and leaving the poi ts -
In the 1970s Kingston had secuL Ity Coastguard patrols to enforce e the -
issues that created untold problems foi steiile area alounld Cil uise ships as well
the people of Jamaica. Illicit expoi t of as providing water side sul veillance of
narcotics cleated a nightmare for the vessels at dock. -
goveinment, the poit authority and the ISPS Code
Shipping Association of Jamaica .P -
The Shipping Association responded The main ports of Jamaica, including
aggressively, however, and today the KCT, were among the fiist in the vvoild *Id
outstanding vvoi k pei formed by Secu- to be cei tified undel the Intei national *
iity Administiatoi s Ltd and the capital Maritime Oiganizations International
investment of the poit author ity have Ship and Port Facility Security flSPS) *. 000
paid off Code well before the stipulated
In the wake of 9 11, the poi t authol- deadline of July 1, 2004. The Jamaican -.-
Ity installed state-of-the-art secuL ity govei nment made the poi t authority
systems at all the public ports undei its responsible foi reorganizing port secuL- s -
chaige. At Kingston Container Tei mi- i ity to comply with the ISPS Code. - -
nal, the upgl aded secuL ity system has In June 2006 Jamaica and the United -
modern technology that includes: States signed a declaration of pi inciples -. -
Mobile X-iay systems deployed on relating to the US Container Security -
the poi ts of Kingston foi inspection of Initiative. Though this program, signa- : 0 .I
containers, bulk and refrigerated caigo tory countries will have goods being s *
CCTV suL veillance systems for 24- shipped to the US pre-cleaied by US -. -. -
hour monitoring of the poi ts pei in- Customs at designated poi ts in those - . .
etei and inner areas countries, so that they entei the US as -
An access control system that elec- domestic caigo. >

.* 00


Port security continued

The agreement, signed by represent-
atives of US Customs and Border Protec-
tion (CBP), the US Department of Energy
and Jamaica's Ministry of Finance and
Planning and the port authority, allows
for US Customs officers to be posted at
local ports as agreed by the American
and Jamaican authorities. These US
Customs officers will follow Jamaica Cus-
toms guidelines under the supervision
of the US Ambassador in Jamaica. They
will co-operate with Jamaica Customs
to identify, screen and facilitate the seal-
ing of high-risk cargo containers using
inspection equipment approved by the
World Customs Organization.
The main aims of the agreement over
the Container Security Initiative are:
To strengthen bilateral Customs
co-operation by exchanging informa-
tion and working closely to ensure that
identification, screening and sealing
of high-risk containers is carried out
swiftly through the use of modern
inspection equipment

To establish a framework for co-
operation between the US Department
of Energy and Jamaica Customs to
prevent illicit trafficking in nuclear and
other radioactive material.
Since the Declaration of Principles
between Jamaica and the US relating
to the US Container Security Initiative
program was signed in June last year,
there has been a series of meetings
between the port authority, Jamaica
Customs and Jamaican security officials
and teams representing US Homeland
Security, Customs & Border Patrol and
other federal agencies. The discussions
were to work out the details of the pro-
gram leading to the commencement
of operations by Jamaica under the CSI

New Customs building
Arrangements have been made for
the stationing of officers from the US
and Jamaica under the CSI program.
Construction has begun of a new build-
ing for Jamaican Customs officers and
another building is being renovated

and refurbished to provide a base for
the American CSI personnel.
A new team of representatives from
the US arrived in Jamaica in Febru-
ary to do the groundwork before the
actual program. They will be there until
August 2007.
In addition to training of personnel
for the new program, other activities
include the building of profiles on the
movement of cargo relating, among
other factors, to shipping lines, coun-
tries of production, ports of origin and
destination and frequency of ship-
ments. This involves close collaboration
with Customs and security officials in
other countries.

Kingston Container Terminal was one ...
of the first port facilities in th@ i..:
to be certified under the ISPS Code. -



S .6
w c cr e ws a a 6m
the reli t of te 6s n
t a s 6. gro6in num
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(25~~~~~~~~~ ~ ~ ~ ~ ~ ~ pe cent) th frezn6raia uaa ihmdr noain. edo h rjcteKThd
tio n~~~~~~~~~~ ~ ~ ~ ~ ~ ~ ~ v6 h6.hisaSUbii yo h ot Fnepr e prtn h iti

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was~~~~~~ ~ ~ ~ ~ ~ 6ee as a **@ -s stp6varsraI- lgtm n~atlig h iti~
izing ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 6 th 6or auhrt6 66d e-- prtosaebin nertd Tria ad 4hcae 13ars
cra ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 66~ I.~ 6y 0i n- g A nbtont eom ihteArot Lt~iyo an
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success~~~ 6f th 6itib to 6u ar rg t frteidstyitrainlyh

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i~~~~~~~eS,~~~~~6 6 6i~~dlg and had reitrdtA*n ftemotsal ot ntew rd

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We make it our business to offer our customers the highest quality
service without exception to all the markets we serve.


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U U I U *

S 3 U U S U U


(268) 462-4863
(242) 356-7624
(246) 436-6102
'571) 313-0513
(809) 539-7000
(345) 949-4977
(592) 226-3241
(509) 221-5220


(876) 923-0054
(507) 210-9600
(869) 465-2002
(011) 5995-542-4380
(011) 597-401801
(868) 679-1570
(011) 58212-993-2922

MAIN OFFICES, MIAMI, FLORIDA TEL: (305) 863-4444 FAX. 1305)863-4777

I iq~

r -
~ AiA

KWL continues to expand

and improve its facilities

Confident in its ability to pro-
vide premium services, Kingston
Wharves Limited has embarked on a
redevelopment project that involves
the complete rebuilding of berths
Nos 8 and 9.
When this is complete in July 2007,
the draft at these berths will have been
increased from 10 meters to 13 meters.
This will allow KWL to handle the most
modern vessels afloat, enabling the
company to further develop the trans-
shipment side of its business.
Transshipment traffic has more than
quadrupled, from 11,223 moves in 2003
to 46,318 in 2006. (see below)
KWL has been a fixture on the King-
ston waterfront since 1945 and there
have been many changes in its opera-
tions over this period. In 2004 the com-
pany's revenue base was enhanced by
the introduction of stevedoring services.
By 2006 these services accounted for
about 20 per cent of KWL's total revenue.
KWL invested about US$ 10 million
over two years in cranes, stackers and
associated equipment to improve port
The company also placed an emphasis
on information technology by upgrad-
ing terminal and planning software and
introducing other enhancements such as
a port community system and bar-coding
of vehicular cargo.This has all helped to

KWL Transshipment
moves 2002 2006

50,000 /

20,000 -
10,000 -

2002 2003 2004 2005 2006

Grantley Stephenson picks up the
coveted Multipurpose Port Award on
behalf of Kingston Wharves from the
CSA's Corah Ann Robertson-Sylvester

drive up efficiency. Within two years, as a
result of these investments, productivity
levels increased from an average of eight
moves an hour in 2004 to a current aver-
age of 22 moves.

Small wonder that KWL's achievements
in 2005 have been recognized by the
Caribbean Shipping Association. The
CSA's coveted Caribbean Port of the
Year Multipurpose Port Award was
presented to KWL at the Association's
36th annual banquet in Panama City on
October 17, 2006.
KWL's growth over the past three years
has been due in no small part to collabo-
ration with its next-door neighbour, King-
ston Container Terminal (KCT), a dedi-
cated transshipment terminal. Vessels
calling at KCT are unable to serve smaller
Caribbean ports directly by feeder serv-
ices, and KWL has been able to capitalize
on this by serving these ports.
The company intends to move its
expansion plans forward with more
redevelopment of its facilities in the
near future. This will cost about US$ 75
million including new equipment to
serve the expanded facility.


ThBis development resulted inBaddi-i

drde to a det of 18. meer (5

of 14.0 mees(4.006 C ecm h

200 AC Phae
SPhase 4 involvedaredevelop

Berhin 1,3 meer (600t

-0 Sot Temnl1.-mtr 4 t

Refe plg 00 0694

Crns- 13 (eigh sue potpaaa

Stad l carir 506 0
Caact 1.5 million *e*-
In.004 oC ade ,1,6 e
from 18 shipping linesandh
ship cals from mga-sizedvessels
In the 2005/2006 fisca^^l yea^r, atul^^~^^^^^^^

throghpt a th teminal exceeded^^^^
the .5 illin tu rated capacity with ^^
1,609522 tu bei^^ng handled from more^
than 1,600 ship calls.



Getting the best

out of Kingston's

human resources

A key role in helping the Port of
Kingston and its personnel to
develop and modernize is being
played by the Shipping Association
of Jamaica under the continuing
leadership of its President, Mike
The SAJ is mainly responsible foi
providing the poi t with its highly
skilled stevedore vvoikfoice.
As one of the Region s largest
national shipping associations, the SAJ
has trained and developed Jamaican
human resources in the shipping indus-
tiy for ovei 60 years.
It was the SAJ that trained Jamaicans
to operate in new skill areas such as
operation of equipment and co-ordina-
tion of stevedoiing. And with evei-con-
tinuing advances and changes in tech-

nology, the SAJ has used its training
initiatives to keep the Port of Kingston
supplied with the skills it needs
Training and employment
A milestone was reached in late 2005
when the Port Author ty of Jamaica
accluiied 500,000 additional contained
moves into Kingston via Maeisk Ship-
ping Line. This led the SAJ to resume
employing stevedoies in the casual
category. Fiom Novembei 2005 to Sep-
tember 2006 the Association recruited
and tiained 139 stevedores. This was
supplemented in Octobei 2006 by the
employment of 10 substitute winch
opeiatois in response to an increase in
cement shipments at Kingston Whai yves.
Ovei the past year the SAJ has
invested heavily in development and


training of personnel An intensive
training program has provided the poit
with stevedoies who are tiained as
straddle car iler opeiatois, gantiy cane
opelatois, stevedore co-oidinatois and
fork-lift operators. Today, stevedoies
in Kingston aie multi-skilled personnel
capable of pei foi ming a range of tasks
on a regular basis.
In addition, the SAJ has begun
developing a certification program foi
stevedores in a project spearheaded
by the Association with the assist-
ance of Jamaica s Human Employment

and Resource Tiaining iHEARTi Trust
and the National Vocational Training
Depai tment. (see footnote)
A technical team made up of rep-
iesentatives from the SAJ, HEART and
other relevant agencies completed the
competency standards for Level 1 of
the program and then started woi k on
Level 2, which is expected to be com-
pleted early in 2007.
Mike Beinaid says the SAJ wants to
go on providing training and develop-
ment for poi t workers to the highest
International Labour Organization lLO

standards so that they can respond to
changes in global shipping.

Foreign language classes
In keeping with its mandate and long
histoi y of training and developing
Jamaica s human iesouices in the
shipping industry, the SAJ has begun a
project to make Jamaicans wvoiking in
the shipping industry multilingual.
"We live in a global village and ship-
ping links the various communities,
said Mike Bel nard.
In July 2006 the Association took the

first steps towaids establishing a multi-
lingual steps industry when it sent the
first batch of employees on a 12-week
Spanish coui se undel the care of an
inst uc toi from the Venezuelan institute.
Thirty students took pait in this pilot
project. As a result of its success, the
SAJ plans to continue this piogramme
in 2007 and is looking to expand the
project to include poit workers.
In reviewing the achievements of
2006 and the piogiams and challenges
of the cui ient year, the SAJ President
said: "There are still some challenges
ahead of us, but I have confidence
that as an Association we will continue
to create solutions that deepen and
strengthen the SAJ s relevance to our
industry into the future."

Newport West Industrial Park
One program now on the table that is
deal to the Piesident s heal t is his own
initiative to rezone the Newport West
community into a gated industrial park.
Newpoi t West is the industi ial area
on which the Poi t of Kingston was built.
Const Lucted largely on reclaimed land,
the port is next-door to some of the most
impoverished and densely populated
districts in Jamaica. This reality has cie-
ated many social and economic piob-
lems similar to those found in most ui ban
centres wheie a major industl ial network
lies next to a huge area of povei ty

The SAJ has been in the forefront of
effoi ts to assist these poverty-stricken
communities. It has maintained a
number of welfare projects, largely in
health, education and social welfare, as
well as providing employment and tiain-
ing for many who live in these disti cts.
However, othei problems have affected
the shipping community, specifically,
employees of companies located in
Newpoi t West and then customer s who
must visit from time to time
The answer, as Mike Bernaid sees
it, is to transform Newpoi t West into a
gated industrial park with controls and
systems to protect the poi t community,
making the area safer and more secuLe.
"We have received widespread
verbal suppoi t of the project and ale
now in the process of obtaining the
written consent of the owners and ten-
ants in the community, he said. "Oui
lawyers advise that this is a prerequisite
for proceeding to the next level of actu-
ally getting approval of the scheme
fiom the municipality, the Kingston
and St Andiew Coipoiation
Once completed, this will allow the
Poi t of Kingston to be developed fur-
thei, making it not only one of the most
technologically advanced po) t systems
in the Region but also one of the most
pleasant places in which to woik and
do business.

The Hunian Emplo.yment ianii
Resource Tiraininml iHE ART Trust
vias established ily Government
in 1982. The Trust is financed
throuhli a compulsory three per
cent pa'Iroll dellduction levied on
quialifie1 private sector firms,
sutpplemelnted by' aIssistllnce froln
internationally partners.

( \IIBlIi \N N \R I IIMI '.I 25

"We live in a global village and shipping

links the various communities"


Pioneering fee recovery specialist

broadens its range of services

The success story of a Kingston-based company that
pioneered the collection of container demurrage and
detention charges in the English-speaking Caribbean
is entering a new chapter

The container charge collecting
company Assessment Recoveries
Limited (ARL), based in Kingston,
Jamaica, is launching a chassis rental
collection service that will expand
its client base and boost its revenue
The service was due to be launched
in May 2007 following a year of discus-
sion and development. Initially ARL will
contract with logistics companies, col-
lecting charges directly from trucking
ARL's General Manager, Frances
Yeo, said this step had been taken in
response to a need that had been high-
lighted in the equipment support seg-
ment of the wider shipping industry.
ARL is recognized as the company that
brought a significant measure of order
to the management of equipment in
the Jamaican shipping industry.
ARL has been one of the success
stories of the Caribbean shipping
industry, demonstrating the capacity

of the region's institutions to operate
on a truly global level. The company,
which is responsible for the central-
ized collection of container demurrage
and detention charges, opened for
business in Kingston in August 2004
and has brought greater efficiencies to
the market and more effective use of

Beneficial partnerships
Beneficial partnerships have been
formed with major shipping lines, local
agents and terminal operators. Chal-
lenges have been met head-on as ARL
has put customer service at the core
of its operations, listening to its clients
and meeting their needs. A study of the
genesis of this company, its develop-
ment over the past two and a half years
and its initiatives to launch the new
service demonstrates that shipping
offers myriad opportunities for so-
called developing nations.
"Globally, shipping lines have sought

"Lne weemtwt

to outsource several services princi-
pally through the shipping agent," said
Ms Yeo. "Lines were met with a specific
challenge in the Jamaican market
of containers not being cleared or
returned within the allotted free time,
with the added difficulty of collecting
demurrage and detention charges that
were incurred.
"This problem was not exclusive to
Jamaica, as lines serving the Dominican
Republic and other Caribbean coun-
tries also found that inefficient use
of the containers resulted in greater
costs and these costs needed to be
Traditionally, the line Agent was
responsible for collecting demurrage
and detention. But the Agent needed
to prioritize, and often the focus rested
on freight collection, seeking new
cargo and serving the customer base
- the areas that brought in 95 per cent
of income. Across the industry, it is
agreed that freight collection is easy to
Demurrage and, to an even greater
degree, detention are hard to admin-
ister because the process involves
tracking the container movement and
collecting fees after the equipment has
been returned empty. Unpaid deten-
tion charges were written off annually.
The need for cost recovery drove
the lines to explore the possibility of
outsourcing demurrage and detention
collection. A group of local shipping
agents led by Grantley Stephenson,
currently chairman and CEO of Kingston
Wharves who at the time was manag-
ing director of Seaboard Jamaica and
President of the Shipping Association
of Jamaica (SAJ) quickly identified the
business opportunity and pursued the
formation of the first demurrage and
detention collection company in the
English-speaking Caribbean.



Under the stewardship of its General
Manager, Trevor Riley, the SAJ served as
the incubator for this project. Time was
devoted to financial projections, care-
fully negotiating the support of all lines
and developing proprietary software as
a base for the operations. Nevertheless,
the project stalled. There were doubts
over whether it would be as success-
ful as hoped. Many people doubted
that a demurrage collection company
could work in Jamaica. Some believed
it would have a negative impact on
business and felt that the risk was not
worth the effort.

"ARL was one of my deliverables as
the new General Manager of the SAJ,"
said Trevor Riley. "The groundwork
was laid, SAJ had invested in the start-
up through a loan agreement, the
opportunity was clear and the timing
was right. I needed to ensure that the
opportunity would not be missed."
Frances Yeo, a trained project
manager with a history of successes
in marketing, project development,
implementation and general manage-
ment, was recruited in May 2004 to pull
the project together. Three months
later ARL was in business.
ARL now collects on behalf of 11
shipping lines. Before lines retained
the services of ARL there were claims
that the problem of collection rested
with detention and not demurrage. The
numbers show that, with the introduc-
tion of an independent company, both
demurrage and detention collections
have improved. Increases in demurrage
collections in some cases surpassed
200 per cent.
Other lines saw smaller but notice-
able increases as waivers of charges
were now more controlled and pay-
ments had to be made before the
equipment left the port. Detention,
which many had deemed uncollect-
able, began to flow in steadily, with
month-on-month increases. The
predictions of steadily dwindling col-
lections have not materialized. And
containers are being returned more

promptly by small to mid range con-
Ms Yeo said: "We offer a tailor-made
system which we aim daily to make
seamless. We are determined to be
accurate in the calculation and applica-
tion of charges and to provide data and
information to clients while maintain-
ing the confidentiality that is required
to ensure the confidence is maintained.
It is more than the software."

Some consignees and brokers have
resisted the introduction of ARL to the
market. Their reluctance to accept the
responsibility for charges is a result
of regulations not being enforced in
the pre-ARL era. ARL operates on the
premise that all charges against the
cargo are the responsibility of the con-
signee cited on the master bill of lading.
Furthermore, if the container is not
available to the line for use and free days

have expired, charges are applicable.
An ongoing process of public edu-
cation has been essential in turning
around the resistance.
Ms Yeo said: "There are factors
beyond the control of the consignee
that influence the turnaround time of
equipment. The consignees are encour-
aged to identify entities responsible for
delays and press for change, demand

With a team dedicated to the
monitoring of container movement,
verifying information, explaining
processes and willingly responding to
the needs of lines, Agents, consignees
and brokers, ARL will achieve its goals.
Equipment will be returned in a timely
fashion. This will result in cost recovery
for the lines as well as satisfying share-
holders, who will benefit from solid
returns on their investment, m


"We offer a tailor-made system which

we aim daily to make seamless"


David Harding

An authority

on maritime


By Charles Harding

David Harding's passion
for shipping is equal to
his fervor for organization,
development training and
innovation. His is a burn-
ing desire, a passion, to do
what he believes is good
and right.
At his Bridgetown-based
company, Sea Freight Agen-
cies (Barbados) Ltd, he has
molded a creative workforce
and equipped them with
skills to manage maritime
change and development.
And he has encouraged
them to believe in them-
selves, establish trust and
build lasting relationships
with his company's overseas
Mr Harding is Chairman
and Managing Director of
Sea Freight Agencies and
was President of the Carib-
bean Shipping Association
from 1997 to 2000.
He did not want a com-
pany where employees felt
they were only there for the
pay cheques without being
inspired to use initiative and
to innovate.
"One of the things I made
sure that we did was to
embrace the notion that
everybody on my team must
understand the business we

are in," he explained. "Even
before I became President
[of the CSA] I allowed the
opportunity for training to
ensure that the level of serv-
ice would not be compro-
mised if I am not around.
"It worked. And I think it
can work for any organiza-
tion. One must recognize
that, even if you are the CEO,
you are not playing a game
of cards where you hold
them close to your chest.
You sit with people and you
let them know why they are
doing what they are doing."

Professional style
Mr Harding's style of
management has had what
he defines as 'a knock-on
effect'. He speaks highly
of his team at Sea Freight
Agencies as being profes-
sional with constantly
upgraded skills. He says
this is why he did not lose a
minute's sleep about what
was happening at home
while he was traveling
abroad on CSA business. It
also explains why he talks
about retirement when
he turns 60 in two years
- without worrying about
"We do have a great

management team. Right
through this organization
they are good people," he
said. "The agency's business
is done on relationships and
trust and the relationships
we have built with our over-
seas principals have allowed
them to express their views
on our staff. They conclude
that when David Harding
is not here, it is business as
Mr Harding is an authority
in the Caribbean on mari-
time transport. He entered
the world of shipping as
a clerk with DaCosta and
Musson Ltd, part of the
Barbados Shipping & Trad-
ing conglomerate, in 1966,
the year Barbados gained
its Independence. Three
years later he was appointed
Operation Manager at the
Barbados office of Bookers
Shipping, of Liverpool, and
in 1971 took over as Opera-

tion Manager at the Bridget-
own office of Ocean Trading
UK Ltd.
His rise through the ranks
of the maritime industry was
meteoric. He served as Master
Stevedore in training with H.V.
King Stevedoring Ltd and Ste-
vedoring Manager and senior
director of the Niblock Group
of Companies, a Barbados
concern, before founding Sea
Freight Agencies (Barbados)
Ltd in 1988.
Mr Harding has had
extensive training in the
20-year period between
1972 and 1992 in all aspects
of stevedoring with various
shipping lines including
Geest, Ivaran and Saguenay.
This included setting and
rigging preventors and guys,
slinging heavy lifts, rigging
snatch blocks and single
derricks lifts and under-
standing the principles of



Between 1987 and 1992
he was hired by a United
States-based shipping line,
Antilles Lloyd, to work as
port captain on its vessels
in Trinidad, where general
cargo and heavy lifts were
discharged at Galeota Point
for oil drilling operations.
During this period he per-
sonally supervised some 80
vessel calls to Galeota Point
and Point Fortin with an
aggregate tonnage of about
520,000 tonnes of breakbulk
OWS and heavy lifts.
He said: "I have been
exposed to several train-
ing modules through the
Caribbean Shipping Associa-
tion, Barbados Port Inc, the
Geest Line and Ivaran Lines
on cargo handling, port
management and I am listed
by the Caribbean Shipping
Association as a resource
specialist in stevedoring that
can assist members within
the Association."

Knowledge shared
He also describes himself
as a student of 'Thomas
Stowage', the bible of cargo
characteristics for safe and
secure handling, stowing
and discharging. It is that
knowledge and over 40 years
of experience that he has
brought and shared with the
various national and regional
maritime organizations and
shipping councils and com-
mittees with which he has
been associated. He has been
the longest serving President
of the Shipping Association
of Barbados, spawned by the
Barbados Employers' Con-
federation in 1981. He served
three terms as President and
was at the helm of the 25-
year-old shipping group for
11 of those years.

"So whatever bad has
occurred then you can
blame me. Whatever good, I
would accept the credit," he
He was a director of the
state-owned Barbados
Port Authority during the
political administrations of
the Barbados Labour Party
between 1981 and 1986 and
the Democratic Labour Party
in 1989 to 1994- a reflection
more of his maritime and
port management knowl-
edge, ability and expertise
than his political neutrality.
Mr Harding was a director
of the board that presided
over the rationalisation of
the Bridgetown Port in 1991
to 1992.
"I was one of the archi-
tects of the rationalized port,
along with the then and still
current CEO Everton Walters
and the late Edmund Har-
rison, who was the chairman
at the time. Since then Barba-
dos has won the Port of the
Year award five or six times."
He went on: "It does not
mean that the Barbados port
does not have problems.
There is no port without
problems." In this regard,
he commended the Barba-
dos Workers' Union (BWU)
for recognizing the need
and responding to efforts
to rationalize the Port of
"They [the union] part-
nered with us in under-
standing that, for Barbados
and the Barbados economy
to grow, there must be some
changes. From a national
point of view that is the
single biggest achievement
that I can lend my name to."
Apart from the port's
rationalisation, the ship-
ping agent admitted that

the nine years he spent with
Barbados Port Authority had
been a significant feature of
his own development in the
shipping industry.
"It allowed me to rec-
ognize the problems that
happen and can occur
ashore, as well as the prob-
lems aboard ships. So I have
a healthy respect for the chal-

lenges that port managers
face and equally a healthy
respect for the problems
shipping lines face when
ports are congested and they
can't get their ships berthed.
"We talk about big ships -

a big ship today costs about
US$ 30,000 or US$ 40,000 per
day to operate. You cannot
keep those ships at anchor
anywhere. They must get
in, they must discharge with
despatch and get out."
Mr Harding treasures his
memories of the years he
spent on the CSA's general
council, from 1991 to 2003.

Under his watch as CSA Pres-
ident, from 1997 to 2000, he
was able to bring together
the Region's shipping sector
- gathered in the CSA and
the Association of Caribbean


"Whatever bad has occurred then
you can blame me. Whatever

good, I would accept the credit"

Plai tc Lie M buutdu
Dointiicaii Re[)ublic
foi the
Caribbean Shlpp-iig ikssoclatloll
37th A1111LIal (,-je:-mal Meefilig,
Coiifei-eiice Liid Exhibitic.41

I nt Don? I

. ip

YOU C,11 trust Sea Freight % 2ClL i.: to h11dnde
allI ofyou r %hi ppli nl, needs, Whether you are

Sea Freight Agencies

(B'dos) Ltd.
iJ~I~# Firstl..i Atlantis 1IImk12inp,
~~ Shallow D~raught, Bridgetown.
Tel. Q246) 429J-9688 or 42V9-9689
Im 2 Al.I) 4 2 1I. 7

Wesidte: www,,sealrL.com

'- ~ ~ ~ -- I" CiCunuui W I J 0-

NMern her of:

Padlarweg 3t6
The Netherlands

P.O Box 409
The Netherlands

Tel1 4 3 2 44&t4t5J
Fax +31 20 44SB427

IrterneL :wwwjplpi ehull c--i

n o ...............


"Now we have a relation-
ship that allows us to use
their platform and allows
them to use our platform
when we speak about mari-
time matters. That organi-
zation [the ACS] is broader
than Caricom because the
ACS includes Latin America
and therefore broadens our
own platform," he said.

A confession
Although he confesses that
"shipping is in my heart
forever", there is much more
to David Harding, a husband,
father and grandfather, than
maritime trade, chairmanship
and directorship of several
shipping entities includ-
ing Maritime Management
Services Ltd, Fast Transit
Shipping Ltd and the Allied
Freight Group Inc compris-
ing Windward Agencies Ltd,
Freight Handling Services
Ltd and Ocean Air Transport
Services. He is chairman of
Robulk Agencies Inc, a direc-
tor of Norton Lilly (Barbados)
Ltd and manages four large
offshore companies for Cana-
da's Potash Corporation, the
world's largest fertilizer group.
Potash owns PCS Nitrogen in
Trinidad and has interests in
Brazil, Chile and China. He is
also a director of the Barba-
dian ice cream company BICO.

Its Harbor Cold Store division
is a sub-agent of the Barbados
Port Inc, handling cold stor-
age on behalf of BPI.
Mr Harding is Honorary
Consul in Barbados for Chile.
Does he have time for
recreation? The question
produced his trademark
heart-warming smile.
"The days of taking
four weeks' holiday and
all that are long passed,"
he quipped. "I don't think
I will see anything like that
until I retire. But what I have
learnt to do over the years
is, whenever I travel on
business, whether it is the
Caribbean Shipping Asso-
ciation business of my own
organisation's business, my
wife accompanies me and for
two or three days after the
business has been concluded
I have a vacation.
"If I am in Florida, I'd go
down to the Florida Keys and
do some fishing, which I love.
If we're in Grand Cayman, I'd
hang out on the beach like
tourists." He also made the
point that, for him, there was
no longer time to enjoy the
fine beaches of Barbados.
"People think I am crazy -
that I live in Barbados with the
most beautiful beaches but
I tell them I work in Barbados.
I have not been on a beach in

Barbados in 10 years."
But he does find time for
Celia, his wife of 34 years,
who shares his passion for
"We share a lot of time
together. She has been one
of my strengths in this busi-
ness. She understood very
early my days of running the
docks and of stevedoring in
the port meant that I had to
leave the house at 5.30 in the
morning and that I may not
be back until 11.30 at night.
As a matter of fact, in the early
days of my two daughters,
Karen and Christina, I don't
think they really recognized
that I was the father. They saw
me so seldom. But Celia pro-
vided me with the support.
I never had to worry about
what happened at home."
His wife is also a silent

director of several of his
companies. "I make the deci-
sions and call the shots. She
is happy just to point out to
me when I am going wrong,"
he admitted. Christina is
Sales Manager at Sea Freight
Agencies while Karen, the
older daughter, is in the
Accounting department.
Although the Shipping
Agent, who turns 58 on Sep-
tember 20 this year, is plan-
ning for early retirement in
two years' time, he has made
it reassuringly clear that "if
it comes to pass that I go at
60 as managing director, I
would still not be far away.
I will have a small office in
my home, or somewhere on
the south coast where I live.
But I will be in contact I will
retain the chairmanship of
the Company."m


- I Is-=ar AI

~zIi Ti r

The French island of Guadeloupe
has made significant strides
towards the development of a
paperless port community system.
"Our community data processing
department has now reached cruising
speed," said Vance Saingolet, President
of Guadeloupe's Maritime and Port
Union (UMEP).
In the shipping industry and par-
ticularly in port operations no news is
good news and, according to Mr Sain-
golet, "from the economic and social
point of view 2006 was a relatively calm
year for maritime and port activities" in
the small French territory.
Asked to give his perspective
on port operations in 2006 he said:
"Merchandise and cruise traffic were
relatively stable in 2006. However, they
both present a better perspective for
2007. On a social basis, our port was
managed smoothly. Every player in the
chain showed a spirit of collaboration
and professionalism."
As regards the total integration of port
computer systems, Mr Saingolet spoke
about the recently introduced electronic

data interchange (ED I) platform Ademar,
which manages the import and export
of goods in Guadeloupe, co-ordinating
all port community computer software
including the Customs information
technology system and the container
handling system ICARE.

Mr Saingolet said the entire system had
been operating well, assuring the opti-
mal safety, facilitation and traceability
of the movement of goods in and out
of Guadeloupe.
He said this information system
had enhanced the strategic position
of Guadeloupe within its Caribbean
environment and would contribute to
the construction of strategic alliances
within this environment.
In the first half of 2006 Guadeloupe's
container terminal, Pointe Jarry, added
two post-panamax cranes to its three
existing gantry cranes. The two new
cranes, which have literally changed
the profile of the port, have enhanced
the capability and ship management
capacity of the terminal.



EDI system puts Guadeloupe on

par with leading French ports

French Customs has placed the Port
of Jarry in Guadeloupe at the same
level of safety and traceability as
four of the principal ports in metro-
politan France.
Le Havre, Marseilles, Nantes St Naza-
ire and Rouen are the only other French
ports to benefit from this accreditation,
which was conferred on Jarry on July
What is making such a difference?
A computerized maritime, port and
Customs data interchange platform,
implemented and managed by Ceiba
Ltd in Guadeloupe, allows control of
the island's imports and exports. Ceiba
Ltd receives the ship's manifest elec-
tronically four days before her arrival,
thus allowing all parties to prepare for
discharging of cargo.
The software driving the system is
called Ademar+ (short for Acceleration
of Maritime Trade). This allows all the
players in the maritime transport chain
to interface with each other. Customs
is at the heart of the system. Today,
96 per cent of imports are managed
through this system, which was devel-
oped by Soget Ltd of Le Havre.
The EDI platform was an initiative by
the port community of Guadeloupe. A
study by the Maritime and Port Union
of Guadeloupe (UMEP) underlined the
need to facilitate the operations, logis-
tics and procedures of the port com-
munity by linking all the players. Other
partners in the project are the Port
Authority of Guadeloupe, the Associa-
tion of Forwarding Agents (SCDTG), the
Association of Maritime Agents and
Maritime Companies (AACN) and the
The aim is to boost the port's
productivity while providing security,
safety and traceability of trade. The
community platform manages con-
tainerized and conventional goods and
vehicles in a secure manner through
the traceability of all commercial,

Customs and logistics operations. All
the links in the maritime transporta-
tion chain are involved: agents and
maritime companies, brokers, the
port authority, Customs, warehous-
ing agents, importers and exporters,
forwarding agents and carriers.

To realize this project, Ceiba Ltd
has set up steering committees in
Dominica and St Lucia with representa-
tives from Customs, port authorities,
maritime companies, warehousing
agents, forwarding agents, importers
and exporters and carriers.

"The aim is to boost the port's productivity while
providing security, safety and traceability of trade"

Ceiba Ltd, which installed the system
in Jarry, has acquired real competence
in leadership and change manage-
ment through this project. Greater
transparency in the maritime transport
chain has been achieved thanks to the
Ademar+ project, which won the Distri-
bution, Logistics and Transports Award
in 2006 (LMI).

Linking the Caribbean
Building on this experience, Ceiba Ltd has
plans to extend the project to the Carib-
bean Region by taking the same type of
platform to other ports and linking them
together so as to facilitate and secure the
exchanges while providing the Region
with a highly competitive port hub.

The Alliances for Clovis* project has
been validated by Interreg III and will
strengthen relations and co-operation
between Caribbean ports. The hub will
also offer port alternatives in the event
of natural disasters such as hurricanes,
earthquakes or volcanic eruptions.
Project manager Sabine Dorrifourt**
said "The logistic, business and admin-
istrative exchanges obtained will help
to achieve common economic objec-
tives and will contribute to the research
of economies of scale and alternatives
capable to sustain these alliances." m

*Clovis= Caribbean Laboratory for Open
and Value Added Information System
**Email: sabine.dorrifourt@ceiba-gp.com



Human resources

and the bottom line

By Burnett B. Coke

For too long, Human
Resources (HR) has
been perceived as the
'softer' side of the mari-
time industry, filled with
paper pushers who have
no sense of urgency or
appreciation for commerce
and are willing to virtually
'give away the farm'.
Reducing margins and
recent reductions in teu
movement in the West have
greatly impacted the Carib-
bean shipping industry. Our
continued heavy reliance on
stevedoring mandates the

urgent need for fundamental
change in human resources
practices, since investments
in capital such as post-pan-
amax cranes will only be as
profitable as the human ele-
ment which operates them.
At the outset, HR must
become the internal counsel
to captains of industry by
providing sound, objective
and honest feedback.
HR needs to become an
active participant in design-
ing business strategy by
employing a global vision
which predicts and manages
change instead of simply
displaying 'knee jerk' reac-
tion. This will see HR guiding
business decisions based on
whether the maritime opera-

tor is in start-up, growth,
maturity or decline.
HR efforts must be driven
by, and in support of, the
service performance indica-
tors of timeliness, consign-
ment care, compliance and
corporate efficiency. Training
for stevedores, crane opera-
tors and administrators must
be measured for effectiveness
and returns on investment.
Remember, what doesn't get
measured doesn't get done!
It is also timely that HR
joins discussions on mergers
and strategic partnerships
among regional players.
Using economies of scale
across regional ports, opera-

tors should seek to avoid the
usual bad fate of small satel-
lite states and enterprises.
Given the drive towards
establishing fewer, regional
mega transshipment ports,
it is opportune that we pool
efforts for mutual survival.
Reductions in teu through
specific ports should permit
the relocation of their trained
stevedores and operators
across geographical borders
to high traffic ports. In so
doing, HR should help ship-
ping interests to capitalize
on the greater ease of labor
movement facilitated by the
Caribbean Single Market &
Economy (CSME).
This approach demands
co-ordination, but is cheaper

and more efficient than train-
ing even greater numbers
while others are concurrently
deemed redundant. This
inevitable reality will require
structured synchronization
of cultures by HR since over
two-thirds of mergers fail
because of people issues, not
financial ones.

Efficiency also demands that
HR evaluates what aspect of
business may be outsourced
to external contractors,
thereby allowing operators
to focus on core business.
The increased need for labor
flexibility also mandates that
HR must determine whether
the workforce comprises
employees or contractors.
The maritime industry could
perhaps look to Alcoa Miner-
als, of Jamaica, also a tradi-
tional heavy industry, which
took a quantum leap in 2001
and fundamentally trans-
formed its workforce from
over 500 employees to 220
contractors. This radical but
necessary shift was paved
largely through HR-led ini-
tiatives. While not a panacea
for all ills, this catalyzed
the way for investments in
excess of US$1billion and
therefore warrants review.
To truly get a handle
on labor productivity, an
HR-led team must become
proactive in submitting the
industry's collective bargain-
ing claims and expectations
as opposed to perpetually

responding solely to claims
from the unions. Ideally,
compensation structures
must begin to be based on
objective measures of pro-
ductivity rather than carte
blanche entitlement.
In light of the dynamic envi-
ronment, HR must lead direct
communication with staff,
particularly stevedores, and
not solely through the unions.
Remember, they are our staff,
and for too long we have abdi-
cated that role to others.
Finally, the HR team must
create an environment
which links productivity and
fun. With the high concen-
tration of young workers, it
is entirely conceivable that
regional sporting competi-
tions, which drive esprit de
corps, could be hosted.
Simply stated, if we con-
tinue to do what we've always
done, we'll continue to get
what we've always gotten.
For HR to impact the
bottom line, practitioners
must make a shift away from
simple 'horse trading' with
unions and move towards
becoming true strategic part-
ners in industry. Only then
can the viability of Caribbean
shipping be secured. m

Burnett Coke has 16
years' experience in
Human Resources, Indus-
trial Relations and Con-
ciliation/Mediation. He
holds an MA in Labour
and Development from
the Institute of Social
Studies in the Netherlands


HR must become the internal counsel
to captains of industry by providing
sound, objective and honest feedback

Thef"leet of Caribbea n
Feeder Services is being
expanded to 13 ships with
the arrival of its newest
- and largest vessel.
On May 5 this year Heidi
Wellnitz, wife of Frank R. Well-
nitz, former President of the
Caiibbean Shipping Associa-
tion, ti aveled to the Akei ship-
yard at Wismar, in Geimany,
to chiisten the 'CFS Paranam'
by performing the traditional
ceremony of breaking a bottle
on the ships bows.
By naming its new ship
after Paranam, a polt in Sun-
name, the company wants to
send a message that Sun-
name probably the most
southeily point in its netwoi k
- will continue to be sei ved
The CFS Paianam, a 1,700
tell geared containei ship,
will join the coml)panly s fleet,
providing feedei sei vices
in the Ca ibbean Region
Calibbean Feedei Sei v-
ices stai ted in August 2000
to offel feedei sei vices to

carriers. It currently operates
12 feeders of various sizes
and calls at 25 ports in the
Caribbean, Mexico, Central
America, Colombia, Ven-
ezuela and the Guyanas.
The new ship will be
joined in July by a sister
vessel, the CFS Panama',
from the same shipyard.
According to Frank
Wellnitz, main liners into
the Cai ibbean Region have
become larger, so Ca ibbean
Feedei Services is ready to
follow its customer s needs
by upgLading the size of its
feedei vessels m

.-::I-' l1

r- -4
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... ...

. 1

Port of Curacao is a full service port with:

Curacao Port Authority; Cruise facilities
Curacao Port Services; Stevedoring services
Curacao Drydock Company; Ship repair
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* Stevedoring services
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C U RA A 0


A recent conference to mark the 25th anniversary of the Curacao
Ports Authority produced some lively discussion about future
development of the nation's ports. Speakers included Fernando
Rivera, President of the Caribbean Shipping Association, and
Carlos Urriola, Vice President of the CSA and General Manager of
Panama's Manzanillo International Terminal

What has been described as "an
impending boom" in Curacao's
cruise industry was a topic of keen
discussion at a three-day conference
held by the Curacao Ports Authority
in January 2007.
There was much talk about the Panama
Canal and its implications for the Carib-
bean Region and Curacao in particular.
And the conference heard that a com-
mittee had been set up to handle the
development of a second major cruise
terminal, to be completed in three years.

Cruise market growing
Although the trend towards ever larger
cruise ships has been firmly estab-
lished for some years, Curacao has
been hesitant to build a second mega
pier because it did not find the figures
convincing enough to warrant the
expenditure, says the CPA.
But now, as the CPA now sees it, "the
need for a second mega pier in Curacao
is evident".
Three major industry developments
have led to the CPA's decision to move
forward with the project:
There are now more alternative
destinations in the southern Caribbean
Cruise lines are turning to the
southern Caribbean in search of unique
ports of call to meet the demands of
their passengers

Home-porting issues in Puerto Rico
have been solved, so the number of
cruise ship visits is growing.
The CPA believes that Curacao must
act now in order to prepare for what it
describes as "this exciting onslaught in
the near future". To this end, the author-
ity is working on a master plan and feasi-
bility study for the new terminal.
Curacao is becoming more popu-
lar as a Caribbean cruise destination
in line with an overall growth in the
island's tourism sector. In 2006 Curacao
received 205 cruise ship calls about
seven per cent of total vessel calls
- with 326,885 passengers. The forecast
for 2007 is 276 calls with 353,277 pas-
sengers. This means a growth of 34.6
per cent of calls and 8.1 per cent of pas-
sengers in comparison with 2006. A fur-
ther growth in calls and passengers is
forecast, with numbers set to increase
by up to 400,000 passengers a year.

Curacao vessel calls 2006




On February 18 this year Curagao
celebrated the maiden call of'Club Med
II' of Club Med Cruises and on May 29 the
country expects to receive its first call
by 'Holiday Dream, a sister ship of'Blue
Moon' of Pullmanturs. The CPA says that
throughout 2007 it will continue its efforts
to market Curacao as a vibrant cruise des-
tination as well as improving its facilities
and services in preparation for growth.
It is against this background that
the Authority is drawing up the master
plan for a second mega pier.
"With the arrival of a second mega
pier, Curacao can receive more ships and
will create more capacity and facilities
for home-porting," the CPA has stated.

Rotterdam interested
The CPA will apparently have strong
and influential partners in this initia-
tive. At the 25th anniversary conference
in January, there was enthusiasm and
interest from the Port of Rotterdam.
In its biannual publication, 'Curacao
Portcall', the CPA reported: "Although
talks have not yet been completed, Mr
Lopez Ramirez seemed enthusiastic
over a possible investment in CPA and
the mega pier by the Rotterdam Port
Authority. The Port of Rotterdam has
long since been a close associate of CPA,
sharing expertise and joining in business
ventures such as the joint shareholding
of the Curacao Port Developers."m





Continuing growth in

shipping industry is major

challenge for Caribbean

The Caribbean Sea is a centre of world shipping the southern
gateway to the world's largest single market. It facilitates all
ships using the Panama Canal. It is the cruise ship capital of the
world. Recently some of the leading voices in the Caribbean
Shipping Association the President, Fernando Rivera, the Vice
President, Carlos Urriola Tam, the Cruise Committee Chairman,
Jan Sieihuis, and the Chairman of Group A, Robert Foster
have been discussing developments that will shape the future
of the Region's shipping industry

By Mike Jarrett

Expanding the
Panama Canal

Perhaps more than any
other facility in the
world, the Panama Canal,
opened in 1914, is central
to world trade.
Each year more than
14,000 ships transit the canal
carrying over 203 million
tons of cargo. Many of the
leading trading partners of
the United States use the
canal to ship their cargo.
In 2006 the government
and people of Panama
approved the single largest
project in the canal's history
- one that will effectively
double its capacity.
The expansion is
expected to take up to
eight years to complete and
involves the construction
of two lock complexes, one
on the Caribbean side of
the isthmus and the other
on the Pacific side. Each
lock complex will have

thlee chamber s, including
thlee watel-saving basins
New access channels to the
locks will be excavated and
existing navigation channels
widened and deepened to
accommodate the larger
ships. The maximum operat-
ing level of Gatin Lake will
need to be elevated.
The project, which is
expected to cost US$ 5.25
billion, will be self-financed
through higher transit tolls.
The plan was unani-
mously approved on July
14, 2006 by the National
Assembly, which authorized
a national referendum on
the proposed expansion,
held on October 22, 2006 a
few days after the CSA's 36th
Annual General Meeting in
Panama City.
During that meeting of
the CSA, over 200 mem-
bers and delegates had
an opportunity to see the
Canal in operation. CSA Vice
President Carlos Urriola Tam,
General Manager of Pana-

ma s Manzanillo Interna-
tional Tei minal, hosted CSA
delegates on that trip and
fielded questions about the
expansion project and its
implications for Caribbean

Impact on
Caribbean ports
Mr Urriola said Panama
had taken a decision that
would change the shipping
business in all regions of the
world including the Carib-
bean. "By the people voting
their approval, Panama
can now begin the work of
expanding the canal to allow
post-panamax vessels to
transit by a new set of locks,"
he said.
"The new sets of locks will
be ready for the year 2014
and then post-panamax ves-
sels will transit our Region.
For the first time in our his-
tory of regional port devel-
opment, there is a definitive
date. So every port in the
Caribbean Region must plan

Given this new reality,
said Mr Urriola, the Carib-
bean governments and
ports must ask themselves
an important question:
should they expand so they
can accommodate these
monster vessels or should
they continue being feeder
"Economies of scale will
dictate that these vessels
call at fewer ports, but with
more cargo. Efficiency and
reliability will be key. But
before we operate, we must
build it or improve our facili-
ties. Do we have the funds
to build 16 meter depth
berths? Do we have the
capital to buy post-panamax
"Also, we must under-
stand that the actual Canal is
already close to full capacity.
While Panama is building the
new locks, there will be more
pressure in the terminal to
provide a faster and reliable
service. Are we ready?"



Much more
still to be
done, says

Despite the CSA's tremen-
dous role in facilitating
development during its
36-year history, much more
has to be done in a con-
stantly changing and rapidly
expanding industry, accord-
ing to the Association's
President, Fernando Rivera.
Addressing the 30th
Caribbean Central Ameri-
can Action Conference on
the Caribbean in Miami
last December, he said:
"Economic realities have
prevented us doing as much
as we want to do." He said
there were problems related
to economies of scale and
scarcity of capital resources.
"For example, the smaller
ports in the Caribbean were
forced to comply with the
ISPS [International Ship
and Port Facility Security]
regulations and all the WTO
[World Trade Organization]
and FTAA [Free Trade Area
of the Americas] security
measures at tremendous
expense in order to continue
doing business into the USA.
However, these poor, debt-
ridden countries had little
or no significant support
from the real beneficiaries
of these security measures
- the more developed
"And while these small
territories struggle with the
tremendous cost of develop-
ing efficient and dependable
port operations and having to
purchase expensive security
technologies from the devel-
oped countries, we are faced

with the damaging effects of
overweight containers being
landed on our wharves. Not
only does this damage the
ports that we have only just
recently spent large sums
building, but they do untold
damage to the road network
of our countries the same
roads that we must use to get
our exports to the ports.
"We need the carriers that
call on our ports to under-
stand the great social and
economic problems that this
causes," he said.
He said the CSA had co-

ment hubs to develop as
efficiently as possible. Every
time a container is loaded
and discharged, costs are
incurred. In order that costs
to the importer and then to
the ultimate consumer are
contained, it is necessary to
handle cargo as few times as
possible. Multiple handling
of containers also makes
them and their contents
susceptible to damage.
"The challenge for the
major lines is to create the
economies of scale neces-
sary [for efficiency] yet have

industry looks
to the future

The expansion of the
Panama Canal will bring
more and bigger ships to
the Caribbean. And regional
concerns over ship size and
their implications will apply
to the cruise sector as well
as the cargo side of the
Both in the United States
and in Europe, the cruise
industry is on a growth

"There is already a limit to what size ships the
smaller Caribbean island ports can accommodate"

ordinated the upgrading of
security at seaports across
the Region and all but two
had met the International
Maritime Organization's
deadline of July 1, 2004 for
introducing the ISPS Code.

of Canal

For the next seven years,
Caribbean territories will
continue to grapple with the
implications of the expan-
sion of the Panama Canal.
The chairman of the CSA's
Group A, Robert Foster,
believes that, as shipping
lines continue to pursue
cost reductions, they will
do so by creating better
economies of scale. Vessels
are going to get bigger and
bigger, he predicted.
"There is already a limit to
what size ships the smaller
Caribbean island ports can
accommodate, hence, it is
necessary for the transship-

the ability to transport cargo
quickly and efficiently to
the small outlying markets
across the Region. I think
the key then is the selection
of the appropriate vessel to
service these smaller territo-
ries. The vessel cannot be so
big that it cannot enter the
smallest port yet it has to
be large and fast enough to
service the route within an
acceptable schedule."

path once again, leading to
new investments in ports
and destinations, says Jan
Sierhuis, chairman of the
CSA's Cruise Committee.
He said new players and
the trend towards ever larger
cruise vessels had triggered
a fresh round of investments
in ships that, in turn would
mean new investments in
port facilities and generally in
cruise destinations. >

The aribeanShniping Association provides afrum^^^^
tor an shppr to- woktgte o failtaerae

Gru gA *hpig agnces prvt stvdr operators
*and natioa sh ng associations 0

Group C -Sh ipowners-andoperators.
Thr has als bee sinfcn growth in a fort are of
mebrhp nonvese oprtr an frih conslidaors



The big question, according to
Mr Sierhuis, is what role MSC Cruises
owned by the container operator Medi-
terranean Shipping Company will play
in the market in the coming years.
Carnival and Royal Caribbean, the
two largest cruise groups, are penetrat-
ing new markets, while embarking on a
strategy of product improvement and
changes in existing markets. Asia, Africa,
the Middle East and South America are
new cruising grounds that are seen as
alternatives to traditional markets in the
Caribbean, Alaska, Mexico and Europe.

[Mexico], Belize and the Turks and Caicos
Islands. Traditional cruise destinations in
Jamaica, Sint Maarten, Barbados, Aruba
and Curacao are investing in expansions and
improvements to their infrastructure and
product, in an effort to keep up with the
market and with increased competition."
As Mr Sierhuis sees it, the stakes are
getting higher, competition is fierce and
hence the risks are also improving.
Traditionally, the Caribbean is divided
into the western, eastern and southern
markets, with the western market show-
ing strong growth. The southern market

"The arrival of more and bigger ships continues
to pressure the cruise lines to seek for new home
ports, new itineraries and new destinations"

Cruise lines do invest in several key
markets, but traditionally they limit them-
selves to long-term agreements and other
forms of co-operation instead of actual
participation in port-related projects.
Hence, new financing models are needed
for these projects, as most governments
are no longer in a position to finance such
large infrastructure projects.
At the same time, increasing competi-
tion between regions puts pressure on
port and tax revenues from cruise ships.
"On the other side of the coin, as cruise
ships become larger and larger, cruise lines
are depending more and moreon a handful
of large destinations that can handle their
business," said Mr Sierhuis. "Congestion
and declining destination experience
are issues of concern, but the opera-
tors expect these issues to be resolved
through joint partnerships and programs.
A recent FCCA study on the impact
of the cruise industry in the Caribbean
showed that almost 75 per cent of pas-
senger spending in the Caribbean was
concentrated in five to six destinations.
Spreading cruise calls and passenger
spending more evenly over the Carib-
bean would require massive investments
and political leadership, said Mr Sierhuis.
"Cruise lines are beginning to invest
in new ports of call in an effort to escape
congestion and offer a new, unique and
fully controlled experience to their pas-
sengers. Recent examples are Costa Maya


has growth potential but is hampered by
the relative distance to home ports in the
US as well as the limited home-porting
capacity of most Caribbean territories.
"Home-porting of European ships
seems an attractive alternative for
southern Caribbean destinations," said
Mr Sierhuis. "Aruba, Barbados, Dominican
Republic and, to a lesser extent, Jamaica
and Curacao are receiving turnaround
operations for the European markets. For
the time being, however, these seem to
be winter operations only."

Competition for
berthing space
Mr Sierhuis noted that there was some
competition between cruise and cargo
ships for berthing space and pilot assist-
ance in some destinations, but said that,
more and more, these issues were being
resolved or the negative effects were
being reduced to acceptable levels.
"I always like to bring forward that a
cruise ship also brings business to a port
and, because it generates cargo and
foreign currency, the country benefits.
This also benefits the shipping and port
industry. Furthermore, the past animosity
between the cruise and the hotel indus-
try in the Caribbean is quickly fading
away as both are starting to realize that
they also have a common interest get
people to take a Caribbean vacation
and market the Caribbean as a safe and

attractive vacation option, whether it is
a hotel or a cruise ship package and,
actually, people buy both."
On the implication of larger cruise
ships in the Caribbean, Mr Sierhuis said:
"The arrival of more and bigger ships
continues to pressure the cruise lines to
seek for new home ports, new itineraries
and new destinations. The Caribbean, by
demand and by necessity, will remain the
largest cruising ground for these vessels."
He went on: "Currently, new devel-
opments are taking place all over the
Caribbean, particularly in the western
and southern Caribbean, where new
ports and destinations are being created
in Mexico, Guatemala, Belize, Hondu-
ras, Costa Rica, Panama, Colombia and
Venezuela. In the Dominican Republic,
Puerto Rico, Sint Maarten and Barbados,
new port investments are also under way.
And Curacao, my own destination, is in
the process of investing in a second facil-
ity for the mega-ships.
"The issue for the Caribbean is how to
balance the positive impact of this vibrant
industry against the obvious negatives of
congestion and overcrowding. Is there an
optimum level where volumes, invest-
ments, revenues and social and environ-
mental costs level out and guarantee the
long-term sustainability of the destina-
tions and the Region? These are issues that
will have to be addressed on a regional
level, sooner rather than later."
Mr Sierhuis added: "I believe the
awareness and willingness are there.
What we need now is someone taking
the lead to make all this happen."
He said various organizations must
jointly set the agenda and increase their
co-operation, including the Caribbean
Tourism Organization, the Florida-Car-
ibbean Cruise Association, the Cruise
Lines International Association and the
American Ports Authority Association as
well as the CSA. m

www. caribbeanshipping. org


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John Fernandes expansion

strengthens Guyana's

shipping industry

When Guyana's Min-
ister of Finance, Dr
Ashni Singh visited two of
the country's main wharf
operations in November
last, he was full of praise
for the initiatives and
improvements he saw at
John Fernandes Ltd (JFL).
The Minister, who led a
team of officials from the
Guyana Revenue Authority
on a familiarization tour of
the port, wanted to acquaint
himself with processes,
working conditions and
issues confronting Customs
officials and the public who
did business at the port.
Christmas was approach-
ing and the Government
minister needed to see for

himself what the operations
were like.
Only a month previ-
ously, in October, JFL
held ceremonies to mark
the official opening of its
expanded facilities and the
Minister was understand-
ably impressed with what he
saw, as reported in the local
In Guyana, JFL is
accepted as the leading
containerised cargo han-
dling facility. The company
has grown significantly over
the past 15 years, steadily
gaining market share. How-
ever, as the business grew
under the leadership of Chris
Fernandes, the company
found it increasingly difficult
to handle LCL (less than
container load) cargo.
"Our growth created a
problem in that we needed
more space," said Mr Fern-
In 2005 the company

purchased a building imme-
diately north of its main
terminal on the Demerara
River from the Guyana gov-
ernment. The building was
extensively refurbished and
now houses John Fernandes
Ltd's new LCL warehouse.

In addition to the new ware-
house, the company moved
to create an expanded
container yard. An area of
mudflat immediately west
of the new warehouse was
revetted, landfilled and sur-
faced and established as the
company's import container
terminal. It was this facility
that was officially opened on
October, 10, 2006 by Guy-
ana's Prime Minister, Samuel
This new container han-
dling facility has further given
JFL a competitive edge and
has allowed the company to
further increase its market

share to about 65 per cent
of the country's import and
export container trade.
According to Mr Fern-
andes, the Minister of
Finance and the Commis-
sioner General on visiting
the company in November
were vocal in their praise of
the initiative taken by JFL and
they called on other shipping
entities to follow the lead set
by the company.
In February this year, JFL
took possession of its sixth
Terex PPM Super Stacker as
well as 12 additional chassis.
"This will to ensure that
we have adequate equip-
ment to service the increased
business resulting from our
recent capital investment,"
Mr. Fernandes said.
John Fernandes Ltd is a
long-standing member of
the CSA and Mr Fernandes
has served on the CSA's
General Council for many
years. m



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2nd. o, Irdn Hue.,
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Bhrldos, West hls.
Telephone 12461427 9860/64
Fax: (246)426-1392
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In a wide-ranging interview, Freida Nicholls, Assistant Manager (Market Development
& Public Relations) of Barbados Port Incorporated, tells CHARLES HARDING about the
challenges facing the Port of Bridgetown and about its many notable achievements

Faced with the challenge of port
congestion as a result of growing
cruise and cargo traffic, the small but
vibrant port of Bridgetown, Barba-
dos, is investing in a major expan-
sion to retain its competitive edge.
Among othei notable investments,
the poi t has licked its secu ity chal-
lenges by aCCILIunig thle latest in anti-
terrorist technology.
To be 'best in class' for services and
facilities is a key objective for Everton
Walters, the port's chief executive officer.
"He has always determined that this
is the standard that the Bridgetown
Port should achieve and seek to main-
tain," said marketing specialist Freida
Nicholls of Barbados Port Incorporated.
"We cannot compete with, say, the Port
of Kingston [Jamaica] in terms of size

- but wve can compete with them inI
tei ms of ouIi oI)ei nations
To be best in class means the type
of sei vices wve offel, thie type of facilities
wve offei Best in class comes fiom the
distinct focus on the customeli
Few othei gove Inment 01 Cluasi-
state oiganisations in Baibados have
attracted the same level of invest-
ment and development as the Port of
Bridgetown, built on reclaimed land
and opened in 1961 as the Deep Water
Harbour. It was a sheltered port with a
breakwater and two cargo sheds cre-
ated from a land reclamation project
that connected Bridgetown with tiny
Pelican lj uthvwest.
Over the yeai s, the poi t has under-
gone major extensions to cope with
changes in international shipping. One

extension, between 1975 and 1979, pio-
vided mole docking places, facilities foi
small vessels, a contained tei minal and
a modei n administration building

The cui ient expansion, begun in 2002,
includes dredging of the innei hai botL
to increase the depth fiom 96 to 11 6
metres and to encourage mega cruise
ships to call at Barbados. As part of a
rearrangement of port areas, the dredg-
ing spoil was used to reclaim nine acres
on which to provide a new cargo berth
and more container yard space
A fifth bei th was opened last yeai,
increasing bei thage to 1,513 meties
and iaahling the Poi t of Bi idgetown,
though relatively modestW -ize, to
accommodate a laige number of >

-.-, .

The Port of Bridgetown can
._ accommodate five mega
sized cruise ships at a time



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A 41-


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Eric Hlasseli Son Ltd. is a familt-oucned shipping agency. Wt'e handle orvr -#X) vessels per annum
and currently repret senif ariouis ihdk catriers, conitaiter tnes and tornlduid' NYOtCC operating' .
it is our guiding ph fhilopy tob prurvide he most hiest. effickieit und hassle-free sen'ice ava table,


in Miami, wheie locals can go without
encroaching upon the integrity of the
"We aie looking at a crew facility. We
don't have one," she added. Although
plans are not yet finalized, consideia-
tion is being given to a multipurpose
facility that would include recreational
activities for ships' crews.

Key benefits
One of the port's molasses tanks will be
converted into a potable watei storage
system with ancillary pumping facilities.
It is all part of an expansion and
renewal that is intended to bring key
benefits to both poi t usei s and cus-
Ms Nicholls said the major challenge
facing Barbados Poi t Inc was that the
Deep Watei Haiboul was originally con-
sti ucted asa cargo handling port.
'We have to tweak and adjust and
rehabilitate and revise to create a ci uise

facility within there. And as ci uise pas-
sengei s increase and ci using becomes
more popular, demands on sei vices
and facilities aie going to be greater."
Pointing to St Marteen, where theie
is a purpose-built cruise facility, Ms
Nicholls said: 'Newel played s into the
market have a decided advantage
because they can design a facility
specifically geared towaids the requnie-
ments of the cil ise passenger. We have
to make adjustments."
She agreed that, like other public and
private sector organizations, the Poi t of

Bridgetown had faced challenges. "But
we seek to ensure that the peculiar ities
of port operations and poi t services are
addressed by ensuring that we have
ongoing training," she said.
The mar keting focus has also been
rearranged to emphasise poi t devel-
opment and deliver y of sei vice. The

spotlight is on frontline staff, including
cashiers, receptionists and security
officers, who interact with customer s
Port marketing has not only shifted
from selling to a customer focus, but as
Ms Nicholls explained: "We aie going
even a step fui their to the modein-day
concept of marketing, which is building
lasting relationships.
"if you have a relationship with yourt
customer that allows your customer to
feel that he is impoi tant, that he has
been well served, when the problem
occurs and it will you are better able

to hold on to that customer because
that customer knows that you have his
best interest at heart and you aie going
to seek to fix what is not i ight.
"So that relationship building is
in the forefront of how we hope to
maintain that best in class vision, Ms
Nicholls declared, adding that the
vision extended to thie maintenance
of ecluipment, the provision of timely
service and ongoing training of the
port's human resources
The Port of Bnidgetown has earned a
fine reputation as a multipurpose port
and has won best port awards from the
Caiibbean Shipping Association iCSAi,
Dieam World Cruise Destinations and
Wolld Ci uise Destinations and Seatiade
in the categories of Most Improved Port
Facilities and Most Receptive Destina-
tion since 1993.
Bridgetown won the CSA Port of the
Yeai awards in 1993, 1995, 1996, 1997,
1998 and 2003 and was named the
CSAs Best Multipurpose Poi t in 2004.
It was runner-up in the fields of World
Best Destination and Best Destination
in 1996. m

( \1111BBI \N M I I IIMI 1 'I 6'. 47

"We seek to ensure that the peculiarities of port
operations and port services are addressed by
ensuring that we have ongoing training"


Piracy and maritime terrorism:

a convergence of challenges

for Caribbean shipping

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

Man's actions are often
the products of his
motivations. The activities
of terrorists or "persons
who use violence and
intimidation in the pursuit
of political aims" accord-
ing to the Oxford Diction-
ary have reluctantly yet
unavoidably captured our
attention. So inimical to
their identity is their moti-
vation to achieve their
particular political objec-
tive that it forms a part of
their very definition.
During the late 16th to
early 18th centuries piracy
- defined by the dictionary
as "the practice of attack-
ing and robbing ships at
sea" was commonplace
throughout the Caribbean.
Their motivation was prima-
rily, and readily recognizable
as, economic gain. In its
modern form, the motive for
piracy still appears to still be
financial benefit, although
one view is that many of
today's pirates are "terrorists
with an ideological bent and
a broad political agenda"
(Luft, Gal & Korin, Anne: 'Ter-
rorism Goes to Sea').
In any event, it would be
reasonable to conclude that,
as long as these motivations
continue to exist within the
breast of the various actors,

whatever they may be in any
specific instance, piracy and
terrorism will continue to
take place. It would also be
reasonable to say that, irre-
spective of their individual
motivations, with incidents
such as the attack on the
USS 'Cole' in 2000, terrorism
has literally come to occupy
the same space that is, the
sea as piracy, with acts akin
to piracy.

Creative terrorists
It is of no moment that the
Caribbean Region may not
be currently experienc-
ing the kinds or levels of
terrorism/piracy activities
that have taken place in
other areas of the world
such as, according to Luft
and Korin, the South China
Sea and the waters off the
coast of western Africa.
Indeed, there may be those
who point to the fact that,
according to the Interna-
tional Maritime Bureau,
there were only about five
incidents of piracy in the
Caribbean area in 2005 and
four in 2006. The point is
that it may be impossible to
stem this tide indefinitely
as terrorists become more
creative in their attacks.
These undesirable activi-
ties are the concern of both

international and Caribbean
shipping interests, especially
since "both disrupt normal
[societal] routes and under-
mine institutions", according
to Donald J. Puchala in his
comparison of [historical]
piracy and transnational
terrorism, 'Of Pirates and Ter-
rorists: What Experience and
History Teach'.
The challenges presented
by piracy and terrorism thus
converge, and the shipping
interests of the Region must
participate with the rest of
the world in tackling these
threats potential or actual
depending on the scope of
one's business reality to
their continued commercial
viability as they for instance
face increased security, com-
pliance and insurance costs.
It should also be empha-
sized that several economies
in the Region are service-

based and depend on indus-
tries such as tourism, one of
their primary markets being
the United States. The inter-
woven nature of businesses
in this area, such as the cruise
and aviation sectors, means
that a threat to the viability

of one invariably affects the
other. The vulnerability of
regional shipping interests is
thus apparent.
Indeed, one may even be
of the view that the afore-
described required reaction
by the shipping interests
of the Region may, in fact,
be an obligation of Carib-
bean shipping interests as
each seeks to discharge its
responsibility as a good
corporate citizen in a global
It is a sensitivity to these
issues that may in turn
transform what may be
viewed by some as extrane-
ous "first world" problems
that have little to do with
regional shipping concerns
into a motivating factor that
will color the ways in which
the shipping interests of
the Region react to these
concerns henceforth. m

*Both Milton J. Samuda
and Stacey-Ann Soltau-
Robinson are attorneys-


The practice of attacking and robbing
ships at sea was commonplace
throughout the Caribbean



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