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Caribbean maritime

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Title:
Caribbean maritime
Creator:
Caribbean Shipping Association
Place of Publication:
Colchester Essex, England
Publisher:
Land & Marine Publications Ltd.
Publication Date:
Copyright Date:
2010
Language:
English

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Genre:
serial ( sobekcm )

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University of Florida
Holding Location:
University of Florida
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Copyright Land & Marine Publications Ltd.. Permission granted to University of Florida to digitize and display this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.

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CARITIMBEAN

MARTIMME


CONTENTS S


No. 1 I MAY 2007


SPECIAL FEATURES
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


STANDARD FEATURES
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.


CARIBBEAN MARITIME I MAY 2007 1






EI EDITORIAL


CARIBBEAN

MARITIME
No.1 I MAY 2007


The official journal of the Caribbean
Shipping Association

* caribbean shipping association

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

GENERAL COUNCIL 2006-2007
President: Fernando Rivera
Vice President: Carlos Urriola
Immediate Past President: Corah-Ann
Robertson Sylvester
Group A Chairman: Robert Foster
Group A Representative: Michael Bernard
Group A Representative: 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
www.caribbeanshipping.org
EDITOR
Mike Jarrett
Email: csa@mikejarrett.net
PUBLISHER:

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


2 CARIBBEAN MARITIME I MAY 2007


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






MESSAGE FROM THE PRESIDENT W


Statement from


the President


on the launch


of 'Caribbean


Maritime'


II


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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Geea Maagr Caiba Shppn Association


CARIBBEAN MARITIME I MAY 2007 3






B' GENERAL MANAGERS MESSAGE




A year of challenges


successfully met


Open letter from the CSA General Manager


DEAR MEMBERS,

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

4 CARIBBEAN MARITIME


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.

Training
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
courses.
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
environment.
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"






GENERAL MANAGERS MESSAGE I


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.

Caribbean
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.

NVOCCs
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-
ticipation.

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
industry.

36th AGM,
Conference
& 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
Association


CARIBBEAN MARITIME I MAY 2007 5






B' CSA HONORARY MEMBERS




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,

6 CARIBBEAN MARITIME I MAY 2007


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

iyWiuCulists


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
growing.
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
Code.


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
Pacific.














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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






PUERTO RICO I


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
more.
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
changed."
Because of Puerto Rico's location and
its trade interaction, shippers have >

CARIBBEAN MARITIME I MAY 2007 11


A1J lr ji 04 9 *Vi J


jjj;I! 4ueo i






i' PUERTO RICO


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
maintained."

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



12 CARIBBEAN MARITIME I MAY 2007


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
users.
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"
















p-ilu






B' THE HUMAN FACTOR




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

14 CARIBBEAN MARITIME


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.

Critical
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
benchmarks?
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
achieve.
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






CARIBBEAN SCHOONER TRADE




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
islands."
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


'jaA

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Kincron i .a n L n: is Ud iciMd to s i. customers f and
safely without .rnrlrnise
/'/-t















KINGSTON WHARVES LIMITED
KINGPORT BUILDING. THrfRD STREET. NEWPOffRT WEST. P.. BOX 260, KINGSTOILN. JAMAICA WEST INDIES
TELEPHOCE (M87] 923-9211 9, 923-9121-4 FAX (87M) 923-5361S Weftle w A.lngstonwihar com inm






COVER STORY -JAMAICA


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


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.*9






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






B' COVER STORY JAMAICA



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
programme.

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. -


20 CARIBBEAN MARITIME I MAY 2007






C S -AMAICA





S .6
w c cr e ws a a 6m
the reli t of te 6s n
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foc t p
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i~~~~~~~eS,~~~~~6 6 6i~~dlg and had reitrdtA*n ftemotsal ot ntew rd

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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
efficiency.
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 /
40,000


30,000
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.

Achievements
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.


COVE STOR -JA AC



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
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CARBBEANMAR~ITIMEIffiMfAYl 2007BB 23 ^






















x


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
Bernard.
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






COVER STORY JAMAICA


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"






' COVER STORY JAMAICA


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
opportunities.
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
companies.
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
equipment.

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
recovered."
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
administer.
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.


26 CARIBBEAN MARITIME I MAY 2007






COVER STORY -JAMAICA


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.

Opportunity
"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-
signees.
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
efficiency."


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


CARIBBEAN MARITIME I MAY 2007 27


"We offer a tailor-made system which

we aim daily to make seamless"






iN NEWSMAKER



David Harding



An authority


on maritime


transport


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
principals.
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
succession.
"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
usual."
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
safety.


28 CARIBBEAN MARITIME I MAY 2007






NEWSMAKER R


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
remarked.
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
Bridgetown.
"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
States.>


CARIBBEAN MARITIME I MAY 2007 29


"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

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

NMern her of:


Padlarweg 3t6
1042 AA AMSTERDAM
The Netherlands


P.O Box 409
1000 AK AMSTERDAM
The Netherlands


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


IrterneL :wwwjplpi ehull c--i


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






NEWSMAKER R


"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
gardening.
"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


CARIBBEAN MARITIME I MAY 2007 31




- 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.


CARIBBEAN MARITIME I MAY 2007






GUADELOUPE /


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
10,2006.
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
carriers.
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


CARIBBEAN MARITIME I MAY 2007 33






A' THE HUMAN FACTOR


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.

External
contractors
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


34 CARIBBEAN MARITIME I MAY 2007


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
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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
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on the ships bows.
By naming its new ship
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name probably the most
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- will continue to be sei ved
The CFS Paianam, a 1,700
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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


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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
Region
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


their


Cruise




920


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


Us


CARIBBEAN MARITIME I MAY 2007 37


0






A' DEALING WITH GROWTH


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
shipping.

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


accordingly."
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
ports?
"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
cranes?
"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?"


38 CARIBBEAN MARITIME I MAY 2007






DEALING WITH GROWTH I


Much more
still to be
done, says
President

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
countries.
"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


Cruise
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
industry.
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.

Implications
of Canal
expansion

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


CARIBBEAN MARITIME I MAY 2007 39






B' DEALING WITH GROWTH



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


40 CARIBBEAN MARITIME I MAY 2007


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







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GUYANA I





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
press.
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-
andes.
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.

Expanded
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
Hinds.
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


CARIBBEAN MARITIME I MAY 2007 43


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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

Encourage
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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........ .. ....
. .....
.. ..... .. .
. ..........
WMMIllamm" .




......... .














A 41-


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- '." -


ERIC HASSELL
&SON LTD.


ERIC HASSELL & SON LTD. IS COMMITTED TO PROVIDING ITS CLIENTS
WITH EFFICIENT AND RELIABLE SERVICE BACKED BY OVER A CENTURY
OF EXPERIENCE IN THE SHIPPING BUSINESS.
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,
AGENTS FOR: SEAB ANTERNMTONAL NC






BARBADOS


in Miami, wheie locals can go without
encroaching upon the integrity of the
port.
"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-
tomers.
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"






AnL A MATTER OF LAW




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
context.
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-
at-law


48 CARIBBEAN MARITIME I MAY 2007


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








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DHMEN

DAME SHIPYARDS GORINCHEM

Industrieterrein Avelingen West 20 RO. Box 1
4202 MS Gorinchen 4200 AA Gorinhrem
The Netherlands


phone +31 (0}183 63 92 67
fix +31 (01t83 63 77 62


Member of Ine DAMEN SHIPYARDS GROUP

americas@damennl
wwwdemen,nt


0'.
,.Mj




Full Text

PAGE 1

No. 1 I MAY 2007 Port of Kingston Expanding Beyond Recognition Caribbean Shipping Dealing with Growth Puerto Rico Mayagez poised to take o

PAGE 3

SPECIAL FEATURES 6 CSA honorary members CSA appoints members-for-life 7 Puerto Rico Mayagez poised to take o 11 Jones Act still debated in Puerto Rico 13 Trinidad & Tobago Eciency 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 Curaao Curaao 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 CONTENTS 1 CARIBBEAN MARITIME I MAY 2007 No. 1 I MAY 2007 STANDARD FEATURES 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 reect the views and opinions of the Caribbean Shipping Association. The Editor. Cover story – The Port of Kingston 17 Kingston expanding beyond recognition 19 Jamaica works closely with US over port security 21 New logistics centre for Kingston 23 KWL continues to expand and improve its facilities 24 Getting the best out of Kingston’s human resources 26 Pioneering fee recovery specialist broadens its range of services

PAGE 4

A s 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 stung 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 eld 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-nals. 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 eort and attention to detail, excellence is achievable.” I also believe the converse of my motto to be true. Without relentless eort 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 ocial 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 rearm 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 eort 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 ecient 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 The ocial journal of the Caribbean Shipping Association MISSION STATEMENT “To promote and foster the highest quality service to the maritime industry through training development; working with all agencies, groups and other associations for the benet and development of its members and the peoples of the Caribbean region.” GENERAL COUNCIL 2006-2007 President: Fernando Rivera Vice President: Carlos Urriola Immediate Past President: Corah-Ann Robertson Sylvester Group A Chairman: Robert Foster Group A Representative: Michael Bernard Group A Representative: Ian 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.l. 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 www.caribbeanshipping.org EDITOR Mike Jarrett Email: csa@mikejarrett.net PUBLISHER: 1 Kings Court, Newcomen Way, Severalls Business Park, Colchester Essex, CO4 9RA, UK Tel: +44 (0)1206 752902 Fax: +44 (0)1206 842958 Email: publishing@landmarine.com www.landmarine.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 Oce Administrator: Lindsaye Nunn The pursuit of excellence A commitment from the Editor EDITORIAL 2 CARIBBEAN MARITIME I MAY 2007 No. 1 I MAY 2007 caribbean shipping association

PAGE 5

3 CARIBBEAN MARITIME I MAY 2007 T rue to its mandate to facilitate development of the Region’s shipping industry, the Caribbean Shipping Association takes another bold step forward in publishing its ocial 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 ocial 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 lled 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 It is with pleasure that I welcome all members and friends of the Caribbean Shipping Association to the rst issue of “Caribbean Maritime”. This new magazine will be recognized as the ocial maga zine of the CSA. The magazine will be dedicated to the transpor tation industry within the Region and will look at all aspects of the industry. It will tackle the current issues that we face within the Region such as labour, vessel operations, agent manage ment, human resource development and training. This will be a high-quality magazine which will serve all the interest groups within our very vibrant Association. We are very excited about this magazine as we believe that it will further enhance the image of the CSA as “the voice of the Caribbean shipping industry”. I urge everyone to distribute this magazine within your respective territory and to have copies in your oces as we rmly believe that this magazine will continue to help promote our Region as a very stable work environ ment and an area where we can see continued development. Having said that, I also urge us to support this venture by way of advertising and let us all be proud of this new achievement on the part of the CSA. Please give us your feedback as we strive to make this Asso ciation even more productive in the upcoming year. Stephen Bell General Manager, Caribbean Shipping Association MESSAGE FROM THE PRESIDENT Statement from the President on the launch of ‘Caribbean Maritime’ Caribbean Maritime will help promote our Region Fernando Rivera, President of the Caribbean Shipping Association

PAGE 6

DEAR MEMBERS, T he 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 3 6th 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 eciency. 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 their 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 fth in this series, which has replaced the semi-annual general meeting. Over 130 delegates from 15 countries attended the conference in Curaao 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 ights into Curaao. 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. Training 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 eorts to train port facilities security ocers. 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, Curaao and Antigua, had to withdraw owing to conicts with the start of the cruise season. Overall feedback from the course was good. Several people said they would be interested in follow-up courses. The second training semi nar was conducted in April in Curaao. This workshop was conducted at the Dutch Caribbean Training Centre and was attended by 15 shipping industry personnel from Barbados, Aruba, Anti gua, Curaao 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 environment. In August we once again partnered with Security Administrators Ltd (SAL) on a port security ocers course. A year of challenges successfully met “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” GENERAL MANAGERS MESSAGE 4 CARIBBEAN MARITIME I MAY 2007 Open letter from the CSA General Manager

PAGE 7

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 eorts. 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. Caribbean 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, Curaao, Grenada, Guadeloupe, Jamaica, Mayagez, 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 benets 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 eort. 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. NVOCCs We continue to keep this issue in the forefront of all group members. Based on a decision by General Council, we made a concerted eort, 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 eorts. Everyone agreed we should market the conferences to try to get more active par ticipation. 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 Mayagez 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 industry. 36th AGM, Conference & Exhibition The 36th Annual General Meeting, Conference and Exhibition was held in Panama for the rst time. Sophia Samuels, adminis trative assistant of the CSA Secretariat, visited Panama in September to conduct site meetings and get rst-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 benet 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 ecient 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 ecient way the Secretariat handles all the conferences – and this is due in no small part to the eorts of Sophia Samuels, Michael Jarrett, Dionne Mason-Gordon and Andrea Cameron who works with us at the AGMs. Stephen Bell General Manager, Caribbean Shipping Association GENERAL MANAGERS MESSAGE 5 CARIBBEAN MARITIME I MAY 2007

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T he 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 rst 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 dierent 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 rst 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 rst general meetings. Michael Blackman was the second President of the CSA. He was elected to oce 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 rst training director in 1981 and it was he who organized and produced the CSA’s rst training seminars in Barbados. Ludlow Stewart, the fth President of the CSA, was elected to oce on October 15, 1981. Mr Stewart was recognized for his role in reposition ing the CSA and raising its stature and prole 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 rst CSA training seminars, he put to rest arguments that the CSA was only a “talk shop”. Through eective public relations, Mr Stewart gave the CSA a higher prole 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 ve – Alvin Henry, the CSA’s second executive Vice President, was the rst 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. CSA appoints four honorary members CSA HONORARY MEMBERS 6 CARIBBEAN MARITIME I MAY 2007 Peter Evelyn is recognized by the outgoing President Michael Blackman receives his honorary membership Luddy Stewart is handed his honary membership of the CSA

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7 CARIBBEAN MARITIME I MAY 2007 E armarked for major development is the Puerto Rican port town of Mayagez, 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, Mayagez has always been a center of commerce for the country’s western region. Today it has a population of 101,000 and growing. Also known as ‘The Sultan of the West’ and ‘The City of Pure Waters’, Mayagez has emerged as a key manufacturing center. Numerous United States corporations set up plants in the Region, attracted by the bene ts of local and federal tax incentives such as Section 936 of the US Internal Revenue Code. Tuna industry Over the years Mayagez also became a center for the tuna industry. At one time an estimated 80 per cent of the tuna consumed in the US was processed and packed in Mayagez, including brands such as Bumble Bee and Star Kist. Recently, however, the Mayagez 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 Paci c. > Master plan for $1.7 billion development PUERTO RICO Mayagez poised to take o By John Collins Mayagez is a center of commerce for the western part of Puerto Rico

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unprecedented period of growth in the Mayagez Region. A comprehensive ‘Master Plan for Mayagez 2010’, coordinated by the Government of Puerto Rico under Governor Anibal Acevedo Vilar, identied $1.7 billion in invest ment in 17 municipalities – including Mayagez – and satellite communities. “This is why Mayagez is very proud to host the annual meeting of the Car ibbean Shipping Association in May,” said Mayor Rodrguez. “Maritime ship ping, both in cargo and cruise ships, is an important element in my plan to expand the economy of Mayagez and the surrounding Region.” Opportune time Expanding the role of Mayagez in shipping comes at an opportune time because the neighboring Dominican Republic has entered a free trade agreement with the United States and Central American countries called the Dominican Republic-Central American Free Trade Agreement (DR-Cafta). Puerto Rico’s largest trading part 8 CARIBBEAN MARITIME I MAY 2007 Employment in the sector formerly topped 10,000 – an indication of the importance of tuna processing to May agez. But, with the closure of most of the plants, it has dwindled to about 600. At the same time, manufacturers in key sectors like apparel and electrical assembly, having lost their tax incen tives, were drawn to other countries with lower wages and operating costs. This also led to dislocation in the May agez Region. Faced with this dire situation, Mayor Jos Guillermo Rodrguez is seeking to diversify and revitalize the economy of Mayagez. He has his eye on tour ism, high technology services and an expansion of the port of Mayagez and its facilities so as to take advan tage of its unique location astride a popular route for both cargo vessels and cruise ships. In 2010 Mayagez will host the Cen tral American and Caribbean Games and Mayor Rodrguez is convinced that this event, which will attract more than 6,000 athletes and tens of thou sands of spectators, will lead to an PUERTO RICO “Maritime shipping, both in cargo and cruise ships, is an important element in my plan to expand the economy of Mayagez and the surrounding Region” Mayor Jos Guillermo Rodrguez

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9 CARIBBEAN MARITIME I MAY 2007 ner in the Caribbean is the US Virgin Islands, but that trade is focused mainly on petroleum products from the giant Hovensa renery in St Croix, 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. Puerto Rico has nearly 50 rms with shared production facilities in the DR, which is in sight of Mayagez. 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, more than 20,000 jobs that were generated in the DR remain in place. One of the problems experienced 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 $2,000,” said Edmundo Rodrguez, President of Nestor Reyes Customs Brokers. “Large rms like Baxter and Hanes Sara Lee welcomed the advent of the ferry service from Mayagez to Santo Domingo because it brought the shipping cost per con tainer down to about $850 to $950.” Edmundo Rodrguez, who chairs the Transportation Commission of the Puerto Rico Chamber of Commerce, sees Mayagez as a key element in expanding Puerto Rico’s shipping role. But he sees a big problem at Mayagez 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 identied by Edmundo Rodrguez is the trac congestion between Mayagez and San Juan. “This situation has to be cor rected if Mayagez is to serve the San Juan metropolitan area and eastern Puerto Rico,” he said. Mayor Rodrguez requested bids for a major transformation of the May agez port facilities. Reportedly, > PUERTO RICO “Mayagez is very proud to host the annual meeting of the Caribbean Shipping Association” Mayagez is seen as a key element in expanding Puerto Rico’s shipping role

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1 0 CARIBBEAN MARITIME I MAY 2007 the winning $600 million bid was made by the Holland Group, which will refurbish and operate the port facilities. When the changes are made, May agez will emerge as a key player in both cargo and cruise business. Partners in the Holland Group include the Port of Rotterdam, a major construction company, European inves tors and local partners for architecture, design and engineering. “Mayagez is located astride the sail ing routes for the cruise ships and is an ideal port in which to break itineraries to Aruba, for example,” said a source in the industry. “It has the added advan tage of providing US Customs and Immigration clearance in a much less hassled atmosphere than Miami.” Enter the Holland Group Another source in the cruise industry pointed out that Holland America Line visited Mayagez last December and was impressed by the number of tours available in western Puerto Rico from Mayagez. The company also found the Mayagez municipal authorities very co-operative. The Holland Group, which looks set to be awarded the contract to refur bish and operate the Mayagez port facilities, has recommended several improvements to deal with some of the concerns of the shipping industry. High on the list is the dredging of the harbor at Mayagez to a depth of 35 ft. This vital improvement, which will require the approval and partici pation of the US Corps of Engineers, will enable Mayagez to receive larger cargo vessels and cruise ships, both of which are a priority. In addition, the Holland Group has recommended that facilities for cargo vessels and cruise ships be separated to reduce congestion and improve opera tional eciency. Nelson Perea is executive director of the Puerto Rico Techno Economic Corridor in Mayagez, a not-for-prot entity set up to support the creation of the Technological Corridor by bringing together the public and private sec tors with academia. It is funded by the Puerto Rico Industrial Development Co (Pridco) and also receives funds from the US Department of Labor under the workforce investment program. “The Central American and Carib bean Games are an important opportu nity to relaunch the Western Regional Strategy and develop our infrastruc ture, which needs improvement for us to attract new investment,” said Perea. “The port expansion project is very important in this because the mayor sees expanding the role of Mayagez in shipping as crucial. Cruises are a priority because they will attract more tourists who will then come back and stay longer.” Perea also expressed concern about the cumbersome permit process in Puerto Rico. “It has to be streamlined so that things can get moving faster,” he said. PUERTO RICO There are plans to dredge the harbor to a depth of 35 ft in order to receive larger cargo vessels and cruise shipsDid You know? Did you know that the CSA website is one of the most popular in the Carib bean? It is readily found by all of the major search engines on the internet, because of its wide and varied con tent about shipping. This makes the CSA website a major gateway to the Caribbean. It therefore makes sense to have your company’s website linked to the CSA at www.caribbeanshipping. org. Contact the CSA Secretariat, csa@ cwjamaica.com, for details on how to link your site to the CSA.

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11 CARIBBEAN MARITIME I MAY 2007 By John Collins In 1920 the United States Congress enacted one of the most signi cant 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 documented in the US, the transportation of merchandise between points in the USA, including its territories and possessions embraced within the coastwise 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 more. The Jones Act also applies to the states of Alaska and Hawaii as well as to the US possession of Guam, in the Paci c. Interestingly, the US Virgin Islands, like the other US possessions in the Paci c – American Samoa and the Northern Marianas Islands – are exempt. Over the years there have been repeated e orts in Puerto Rico to gain exemption from the Jones Act. E orts for exemption Advocates of exempting Puerto Rico have generally cited the impact of higher shipping rates on Jones Act vessels 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 considerations. 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 eet as fostering self-reliance and thus avoiding dependency on foreign operators. That argument was bolstered following the 9/11 terrorist attacks in the US. “E orts to get Puerto Rico exempted from the Jones Act encountered sti resistance following the 9/11 terrorist attacks,” said Edmundo Rodrguez, 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 di cult unless they also applied to all the US o shore territories. I don’t see that happening because the whole US national defense climate has changed.” Because of Puerto Rico’s location and its trade interaction, shippers have > PUERTO RICO Jones Act still debated in Puerto Rico Critics charge shipping on US cargo vessels costs more. Supporters argue shipping on foreign vessels cost as much

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actually gured out ways to utilize both Jones Act carriers and foreign carriers for their clients. Rodrguez 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 Rodrguez. “Subsequently, a ferry service between Mayagez 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 eet, such as the Jones Act, should be maintained.” 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 1 2 CARIBBEAN MARITIME I MAY 2007 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, SeaLand, pioneered the marine container shipping industry. Horizon has the largest Jones Act containership eet, 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 capita gure 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, sh 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 users. Twelve years ago there was a big debate in Puerto Rico about the impact of the Jones Act. A leading gure 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 bueted 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. “The US needs a maritime policy tailored to 21st century needs” PUERTO RICO 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’.

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P ort Point Lisas in Trinidad expects to achieve higher levels of eciency and productivity through a new contract with the con sultancy rm SSA Marine, which will be advising on port operations. The contract between SSA Marine and Point Lisas Industrial Port Develop ment Corporation Ltd (PLIPDECO) came into eect on March 1, 2007. Two logistics and port development experts are being seconded by SSA Marine for the initial contract period of six months. Enhancing Capt Rawle Baddaloo, of PLIPDECO, said he expected the relationship with SSA Marine to take Port Point Lisas to a new level of eciency and productiv ity by assisting with port management, improving technology and enhancing the benchmarking against major inter national ports. The (then) President of the Shipping Association of Trinidad and Tobago (SATT), Stewart Sankar said: “SATT is pleased to see the proactive approach taken by PLIPDECO to continue their transformation to a world-class facil ity. This, coupled with their planned expansion, can only lead to improved eciencies and best practice which shipping lines, agents, importers and consumers will all benet from.” SSA also owns and operates one of Port Point Lisas’ main sister ports, Man zanillo International Terminal (MIT), of Panama. Since 2002 PLIPDECO has had a formal memorandum of understand ing (MOU) with Manzanillo, one of the world’s 50 largest ports. The MOU promotes the develop ment of business and the sharing of technical training and information. It provides the two ports with a frame work for co-operation in two main areas: internally, to improve technol ogy, systems, skills and processes for the benet of customers; and exter nally, to increase business. Both PLIPDECO and MIT are threetime winners of the Caribbean Ship ping Association’s prestigious Port of the Year Award. Manzanillo won in 1999, 2000 and 2004 and PLIPDECO in 2001, 2002 and 2003. The memorandum was signed in Fort-de-France, Martinique, at the CSA’s 32nd AGM. Haydn Jones was elected Presi dent of the Shipping Association of Trinidad and Tobago (SATT) at the Association’s 69th Annual General Meeting on March 28. For the past 11 years Mr Jones has been employed at the National Gas Company of Trinidad and Tobago (NGC) where he is Marine Superintendent, Ter minal Operations at one of NGC’s subsidiary companies, the National Energy Corporation of Trinidad and Tobago Ltd (NEC). He is responsible for maintaining and operating the six NEC owned petrochemical terminals at Point Lisas as well as for managing and operating the LABIDCO port at La Brea. All of Trinidad and Tobago’s ammonia, methanol, urea and direct reduced iron products are exported from the NEC’s Point Lisas terminals. Mr Jones also sits on several govern ment appointed committees on mari time related aairs. Eciency experts will work with PLIPDECO TRINIDAD & TOBAGO 13 CARIBBEAN MARITIME I MAY 2007 New man at helm of SATT Haydn Jones, President of the Shipping Association of Trinidad and Tobago

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I consider myself a mari time professional. My Master’s Certicate (FG) certies that I met the cri teria for certication 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 eective manner. I was taught to consider costs by my owners. I learnt to utilize time on passage in the most eective 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 eective 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 sta and the latter by the termi nal and stevedoring sta. 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. Critical Meet the terminal/shift supervisor. He has 720 minutes to utilize in a 12hour 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 oce for him to work in with modern output measuring equipment? Have we provided radio equip ment to all key people to coordinate activities? Have we taught him how to do a time audit, measure cycle times and set objectives to exceed benchmarks? 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 achieve. This is all about port per formance and productivity by professional people By Peter J. Fitt Port performance and productivity by professional people 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. 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 14 CARIBBEAN MARITIME I MAY 2007 THE HUMAN FACTOR

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15 CARIBBEAN MARITIME I MAY 2007 E very 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 islands.” 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 neighbouring 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 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-o 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 ocer [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 ow 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.” *See profile of David Harding on Page 28 CARIBBEAN SCHOONER TRADE Is there a future for the Caribbean schooner trade?

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17 CARIBBEAN MARITIME I MAY 2007 I n 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 Container Terminal (KCT) will have boosted its rated capacity by over 100 per cent in two years. Phase 4, which previously expanded capacity by 25 per cent, was completed as recently as September 2005. Staggering and dramatic KCT’s rate of expansion has been staggering, while the increase in business handled by the terminal has been dramatic to say the least. When the terminal started in 1975 it received 59 vessel calls from two shipping lines and handled just 12,113 teu. By 2006 it was handling over 1.5 million teu and had ‘maxed out’ its rated capacity. > COVER STORY JAMAICA Kingston expanding beyond recognition

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18 CARIBBEAN MARITIME I MAY 2007 Even as work proceeded on Phase 4, the port authority realized that, by the time it was completed in September 2005, all the additional capacity would be fully utilized. In December 2005 the port author ity entered an agreement with Maersk, the world’s largest container shipping line, to make Kingston its regional hub. Under this agreement Maersk was expected to generate some 600,000 teu of additional throughput at KCT in 2006. Total vessel calls to the terminal in the year ending March 31, 2006 increased by 259 resulting in a 30 per cent increase in container moves to the terminal. This was the seventh consecu tive year of increased activity at the terminal. Transshipment continued to dominate, accounting for 918,949 moves (1,507,076 teu) or 88.6 per cent of the 1,036,706 moves (1,679,464 teu) handled during the scal year ended March 31, 2006. Projected throughput for the 2006/7 scal year is 2,265,288 teu. In just over 40 years the Port of Kingston had expanded almost beyond recognition. APM Terminals, which manages KCT, reports that the terminal has consist ently been among the top 10 of its 39 container terminals worldwide. Phase 5 The port authority expects that greater eciency and productivity in conjunc tion with the 3.2 million teu capacity resulting from Phase 5 will help push Kingston up the league table from its current 55th ranking among the world’s top 100 ports. Phase 5 will boost the rated capacity of KCT’s transshipment facilities from 1.5 million to 3.2 million teu. The heavy equipment has already begun to arrive on site. On January 24 and 25 the port authority took delivery of the rst two of six 65 tonne super post-panamax cranes and these are now in service. The remaining four cranes are due to arrive by September from the Chinese manufacturer Shanghai Zhen hua Port Machinery Company Ltd. KCT will then have: • 19 ship-to-shore gantry cranes (including 14 super post-panamax cranes • 74 straddle carriers • 14 empty container stackers • 1,392 reefer plugs • 100 hectares of paved yard space and open storage. A further 30 hectares will be pre pared and brought on stream by 2008 in line with demand. The port authority expects that by 2009 growing demand will result in full utilization of the additional capacity provided in Phase 5. In fact, plans have already been drawn up for the next phase of expansion after Phase 5. These plans call for further expansion of Kingston’s transshipment capability from 3.2 million to 5.2 million teu. That development, which will utilize lands at Fort Augusta, a historical landmark, is expected to take place in three phases, with Phase 1 being completed in 2011. COVER STORY JAMAICA Containers handled at KCT by major lines 2005/2006 Ham. Sud 40,091 4% Maersk P&O 83,344 8% Hapag-Lloyd 120,993 12% CMA/CGM 236,100 23% Noratia 15,297 1% Compania 53,696 5% Other 35,653 3% Zim 451,550 44% Noratia Compania Other Zim CMA/CGM Hapag-Lloyd Maersk P&O Ham. Sud

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19 CARIBBEAN MARITIME I MAY 2007 Kingston is now one of the safest, most secure ports in the hemisphere thanks to decisive action by some of Jamaica’s principal maritime organi sations and other interested parties. In the 1970s Kingston had security issues that created untold problems for the people of Jamaica. Illicit export of narcotics created a nightmare for the government, the port authority and the Shipping Association of Jamaica. The Shipping Association responded aggressively, however, and today the outstanding work performed by Secu rity Administrators Ltd and the capital investment of the port authority have paid o. In the wake of 9/11, the port author ity installed state-of-the-art security systems at all the public ports under its charge. At Kingston Container Termi nal, the upgraded security system has modern technology that includes: • Mobile X-ray systems deployed on the ports of Kingston for inspection of containers, bulk and refrigerated cargo • CCTV surveillance systems for 24hour monitoring of the ports’ perim eter and inner areas • An access control system that elec tronically controls and regulates access to all port areas • Strategically placed underwater surveillance cameras to inspect the hulls of ships entering and leaving the ports • Coastguard patrols to enforce the sterile area around cruise ships as well as providing waterside surveillance of vessels at dock. ISPS Code The main ports of Jamaica, including KCT, were among the rst in the world to be certied under the International Maritime Organization’s International Ship and Port Facility Security (ISPS) Code – well before the stipulated deadline of July 1, 2004. The Jamaican government made the port authority responsible for reorganizing port secu rity to comply with the ISPS Code. In June 2006 Jamaica and the United States signed a declaration of principles relating to the US Container Security Initiative. Through this program, signa tory countries will have goods being shipped to the US pre-cleared by US Customs at designated ports in those countries, so that they enter the US as domestic cargo. > Kingston history How Kingston developed its world-class container terminal The rst facility in the Caribbean Region dedicated to the transship ment market was Kingston Con tainer Terminal (KCT), which opened for business in June 1975. The Port Authority of Jamaica was instructed to develop the facilities after two private sector companies had declined an invitation from the Jamai can government to develop a transship ment terminal at Newport West. The port authority began development of the Kingston transshipment port with borrowed capital of US$ 14 million. At its opening, KCT consisted of the North Terminal, with the following features: Berth – 640 meters (2,100 ft) Terminal yard – 17 hectares (42 acres) Cranes – two panamax ship-toshore gantries Capacity – 400,000 teu. In its rst year of operation the terminal received 59 ship calls from two shipping lines and handled 12,113 teu. In 1979 KCT received 559 ship calls from four shipping lines. Throughput was 147,061 teu, an increase of 1,114 per cent over 1975. In the 1980s, thanks to a big mar keting eort by the port authority, spearheaded by the Hon Noel Hylton, Kingston Container Terminal attracted major shipping lines such as Ever green. > COVER STORY JAMAICA Jamaica works closely with US over port security

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20 CARIBBEAN MARITIME I MAY 2007 COVER STORY JAMAICA 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 ocers to be posted at local ports as agreed by the American and Jamaican authorities. These US Customs ocers 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 identication, screening and sealing of high-risk containers is carried out swiftly through the use of modern inspection equipment • To establish a framework for cooperation between the US Department of Energy and Jamaica Customs to prevent illicit tracking 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 ocials 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 programme. New Customs building Arrangements have been made for the stationing of ocers from the US and Jamaica under the CSI program. Construction has begun of a new build ing for Jamaican Customs ocers 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 proles 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 ocials in other countries. Kingston Container Terminal was one of the rst port facilities in the world to be certied under the ISPS Code.

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21 CARIBBEAN MARITIME I MAY 2007 The Jamaica International Free Zone Development Ltd (JIFZDL) welcomed its rst client in May 2006 in the form of Kingston Logistics Center Ltd. In a joint venture between the Port Authority of Jamaica (75 per cent) and Zim Integrated Shipping Services Ltd (25 per cent), the free zone organisa tion – which is a subsidiary of the port authority – acquired a property at Newport West from Cable & Wireless Jamaica Ltd The start-up of operations by Zim was seen as a rst step towards real izing the port authority’s – and espe cially Kingston’s – ambition to become a distribution hub for the Americas – or, as the port authority termed it, “the Dubai of the Caribbean”. Kingston Logistics Center Ltd (KLCL) is a joint venture between Zim and Jamaica Fruit & Shipping Ltd and forms an integral part of Zim’s ports and global logistics network. The logistics center has leased the Newport West facility from JIFZDL. KLCL will be providing various serv ices, including: • Consolidation and deconsolidation of shipments • Bonded warehousing • International distribution of goods on behalf of clients. When the port authority established the Kingston Transshipment Terminal in 1974, it also provided a free zone to deal with light manufacturing and dis tribution of goods. Expectations in this regard were never realized, but with the development of the transshipment center into a regional hub, an opportu nity has been provided to re-establish the free zone on a more modern basis. Jamaica’s Minister of Transport, Robert Pickersgill, said the distribution hub capabilities being established by the port authority were modeled on existing facilities in Dubai, Panama and Curaao with modern innovations. Enterprises operating in the distri bution hub will be involved mainly in stripping, repackaging, assembly and redistribution of goods. The Minister believes there will also be scope for light manufacturing. The distribution hub operations are being integrated with the Airports Authority of Jamaica. Hub port “We believe that the prospects for the success of the distribution hub are bright, because it is being facilitated by the development of the Kingston Container Terminal into a hub port with the greatest transportation system in the Region,” said Mr Pickersgill. He said three Chinese companies were already following in Zim’s wake and had registered to commence operations at the distribution hub in Kingston in the near future. The Minister said the development of a major distribution hub in Kingston would underline Jamaica’s determina tion to make a niche for itself in the shipping industry and to reap the benets of participation in interna tional shipping. It would also provide an additional platform for Jamaican and other Caribbean business interests to market their goods, both regionally and internationally. Kingston history continued There was also a project to improve the reliability of the island’s naviga tional aids serving the growing number of ships calling at Jamaica’s ports. The power source for these navaids was upgraded from gas to solar. In the 1990s The rst major expansion of Kingston Container Terminal, KCT Phase 2, between 1994 and 1996, involved the construction of the new South Terminal on lands known as Gordon Cay. At the end of the project, the KCT had: Berthing – 1,220 meters (4,003 ft) Cranes – 10 ship-shore gantries (includ ing ve post panamax) Terminal yard – 54 hectares (133 acres) Straddle carriers – 38 Tugs – two Capacity – 800,000 teu During 1995 and 1996 the ship chan nel and basin of Kingston Harbour were dredged to a depth of 13.0 meters (42.7 ft) to accommodate larger vessels. Since 1998 KCT has been operating 24 hours a day, all year round, with a exible working week – the standard for the industry internationally. The port has enjoyed relative industrial sta bility for nearly 30 years and is now one of the most stable ports in the world. In the 2000s Another major expansion of Kingston Container Terminal, KCT Phase 3, was undertaken between 1999 and 2001 at a cost of J$ 3 billion. This involved: Berth expansion at South Terminal – 542 meters (1,778 ft) Paved terminal area – 11 hectares (27 acres) Dredging of berth face at South Termi nal to a depth of 14.0 meters (46 ft) > COVER STORY JAMAICA New logistics center for Kingston “We believe that the prospects for the success of the distribution hub are bright”

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23 CARIBBEAN MARITIME I MAY 2007 Condent 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 aoat, enabling the company to further develop the trans shipment side of its business. Transshipment trac has more than quadrupled, from 11,223 moves in 2003 to 46,318 in 2006. (see below) KWL has been a xture 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 eciency. 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 drive up eciency. 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. Achievements 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. Kingston history continued Acquisition of four super post-panamax cranes, 12 straddle carriers; four trucks and six multi-trailer Systems This development resulted in addi tional capacity of 400,000 teu. In 2001 the East Channel from Rackham Cay to Port Royal Point was dredged to a depth of 18.0 meters (59 ft) and the area from Port Royal Point to the basin was dredged to a depth > of 14.0 meters (45.9 ft). KCT became the largest transshipment terminal in the Region and is ranked 56th among the world’s top 100 ports (source: Contain erisation International). 2005 – KCT Phase 4 KCT Phase 4 involved a redevelop ment of the berthing at the North Terminal, paving of land at the North Terminal, acquisition of four new cranes and extension of berthing at the South Terminal. New facilities included: Berthing – 1,835 meters (6,020 ft) Depth alongside: North Terminal 15.24 meters (50 ft) South Terminal 14.0 meters (46 ft) Reefer plugs – 694 Terminal yard – 91 hectares (225 acres) Cranes – 13 (eight super post panamax and ve post-panamax) Straddle carriers – 50 Capacity – 1.5 million teu. In 2004 KCT handled 1,219,267 teu from 18 shipping lines and had 1,275 ship calls from mega-sized vessels. In the 2005/2006 scal year, actual throughput at the terminal exceeded the 1.5 million teu rated capacity with 1,609,522 teu being handled from more than 1,600 ship calls. COVER STORY JAMAICA KWL continues to expand and improve its facilities KWL Transshipment moves 2002 2006 50,000 40,000 30,000 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

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24 CARIBBEAN MARITIME I MAY 2007 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 Bernard. The SAJ is mainly responsible for providing the port with its highly skilled stevedore workforce. As one of the Region’s largest national shipping associations, the SAJ has trained and developed Jamaican human resources in the shipping indus try for over 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 stevedoring. And with ever-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 Authority of Jamaica acquired 500,000 additional container moves into Kingston via Maersk Ship ping Line. This led the SAJ to resume employing stevedores in the casual category. From November 2005 to Sep tember 2006 the Association recruited and trained 139 stevedores. This was supplemented in October 2006 by the employment of 10 substitute winch operators in response to an increase in cement shipments at Kingston Wharves. Over the past year the SAJ has invested heavily in development and COVER STORY JAMAICA Vote of condence in leadership Members of the Shipping Associa tion of Jamaica (SAJ) have under lined their condence in Michael Bernard as President. At the Association’s 68th Annual General Meeting in December 2006 he was returned for his second consecu tive term of oce. In fact, the membership expressed total condence in the directors by returning the entire SAJ directorate ‘en bloc’. Earlier, members of the Caribbean Shipping Association in Group A had expressed their condence in the leadership qualities of Mike Bernard by electing him a representative of Group A to the CSA’s General Council. Getting the best out of Kingston’s human resources Jamaicans have been trained to be multi-skilled Michael Bernard, President of the Shipping Association of Jamaica

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25 CARIBBEAN MARITIME I MAY 2007 training of personnel. An intensive training program has provided the port with stevedores who are trained as straddle carrier operators, gantry crane operators, stevedore co-ordinators and fork-lift operators. Today, stevedores in Kingston are multi-skilled personnel capable of performing a range of tasks on a regular basis. In addition, the SAJ has begun developing a certication program for stevedores in a project spearheaded by the Association with the assist ance of Jamaica’s Human Employment and Resource Training (HEART) Trust and the National Vocational Training Department. (see footnote) A technical team made up of rep resentatives from the SAJ, HEART and other relevant agencies completed the competency standards for Level 1 of the program and then started work on Level 2, which is expected to be com pleted early in 2007. Mike Bernard says the SAJ wants to go on providing training and develop ment for port workers to the highest International Labour Organization (ILO) standards so that they can respond to changes in global shipping. Foreign language classes In keeping with its mandate and long history of training and developing Jamaica’s human resources in the shipping industry, the SAJ has begun a project to make Jamaicans working in the shipping industry multilingual. “We live in a global village and ship ping links the various communities,” said Mike Bernard. In July 2006 the Association took the rst steps towards establishing a multi lingual steps industry when it sent the rst batch of employees on a 12-week Spanish course under the care of an instructor from the Venezuelan institute. Thirty students took part in this pilot project. As a result of its success, the SAJ plans to continue this programme in 2007 and is looking to expand the project to include port workers. In reviewing the achievements of 2006 and the programs and challenges of the current year, the SAJ President said: “There are still some challenges ahead of us, but I have condence 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 dear to the President’s heart is his own initiative to rezone the Newport West community into a gated industrial park. Newport West is the industrial area on which the Port of Kingston was built. Constructed largely on reclaimed land, the port is next-door to some of the most impoverished and densely populated districts in Jamaica. This reality has cre ated many social and economic prob lems similar to those found in most urban centres where a major industrial network lies next to a huge area of poverty. COVER STORY JAMAICA The SAJ has been in the forefront of eorts 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 train ing for many who live in these districts. However, other problems have aected the shipping community, specically, employees of companies located in Newport West and their customers who must visit from time to time. The answer, as Mike Bernard sees it, is to transform Newport West into a gated industrial park with controls and systems to protect the port community, making the area safer and more secure. “We have received widespread verbal support of the project and are now in the process of obtaining the written consent of the owners and ten ants in the community,” he said. “Our lawyers advise that this is a prerequisite for proceeding to the next level of actu ally getting approval of the scheme from the municipality, the Kingston and St Andrew Corporation.” Once completed, this will allow the Port of Kingston to be developed fur ther, making it not only one of the most technologically advanced port systems in the Region but also one of the most pleasant places in which to work and do business. The Human Employment and Resource Training (HEART) Trust was established by Government in 1982. The Trust is financed through a compulsory three per cent payroll deduction levied on qualified private sector firms, supplemented by assistance from international partners. “We live in a global village and shipping links the various communities”

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26 CARIBBEAN MARITIME I MAY 2007 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 opportunities. 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 companies. 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 signicant 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 eciencies to the market and more eective use of equipment. Benecial partnerships Benecial 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 oers myriad opportunities for socalled developing nations. “Globally, shipping lines have sought to outsource several services princi pally through the shipping agent,” said Ms Yeo. “Lines were met with a specic challenge in the Jamaican market of containers not being cleared or returned within the allotted free time, with the added diculty 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 inecient use of the containers resulted in greater costs – and these costs needed to be recovered.” 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 administer. 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 o 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 identied the business opportunity and pursued the formation of the rst demurrage and detention collection company in the English-speaking Caribbean. Pioneering fee recovery specialist broadens its range of services COVER STORY JAMAICA 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 “Lines were met with a specic challenge in the Jamaican market of containers not being cleared or returned within the allotted free time, with the added diculty of collecting demurrage and detention charges that were incurred” Frances Yeo, General Manager, ARL

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27 CARIBBEAN MARITIME I MAY 2007 Under the stewardship of its General Manager, Trevor Riley, the SAJ served as the incubator for this project. Time was devoted to nancial 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 eort. Opportunity “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 startup 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 ow 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 signees. Ms Yeo said: “We oer 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 condentiality that is required to ensure the condence 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 inuence the turnaround time of equipment. The consignees are encour aged to identify entities responsible for delays and press for change, demand eciency.” 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 benet from solid returns on their investment. COVER STORY JAMAICA “We oer a tailor-made system which we aim daily to make seamless” Container deumurrage and detention charges are collected by ARL

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D avid 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 principals. 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 denes as ‘a knock-on eect’. 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 succession. “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 sta. They conclude that when David Harding is not here, it is business as usual.” 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 oce of Bookers Shipping, of Liverpool, and in 1971 took over as Opera tion Manager at the Bridget own oce 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 safety. NEWSMAKER 28 CARIBBEAN MARITIME I MAY 2007 David Harding An authority on maritime transport By Charles Harding

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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 25year-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 remarked. 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 reection 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 ve 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 eorts to rationalize the Port of Bridgetown. “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 signicant 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 States. > “Whatever bad has occurred then you can blame me. Whatever good, I would accept the credit” NEWSMAKER 29 CARIBBEAN MARITIME I MAY 2007

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“Now we have a relationship that allows us to use their platform and allows them to use our platform when we speak about maritime matters. That organization [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 including Maritime Management Services Ltd, Fast Transit Shipping Ltd and the Allied Freight Group Inc comprising Windward Agencies Ltd, Freight Handling Services Ltd and Ocean Air Transport Services. He is chairman of Robulk Agencies Inc, a director of Norton Lilly (Barbados) Ltd and manages four large o shore companies for Canada’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 Barbadian ice cream company BICO. Its Harbor Cold Store division is a sub-agent of the Barbados Port Inc, handling cold storage 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 Association 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 shing, 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 ne 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 nd time for Celia, his wife of 34 years, who shares his passion for gardening. “We share a lot of time together. She has been one of my strengths in this business. 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 provided 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 decisions 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 September 20 this year, is planning 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 o ce 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.” NEWSMAKER 31 CARIBBEAN MARITIME I MAY 2007 ADVERTISING IN CARIBBEAN MARITIME ADVERTISING IN CARIBBEAN MARITIME CSA AGM Issue The next edition of “Caribbean Maritime” will be published to coincide with the CSA AGM that is being held in the Dominican Republic 15-17 October 2007. To advertise, contact Lester Powell at Land & Marine Publications on +44 (0)1206 752902 or e-mail: lesterpowell@landmarine.com

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32 CARIBBEAN MARITIME I MAY 2007 T he French island of Guadeloupe has made signi cant 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 particularly in port operations – no news is good news and, according to Mr Saingolet, “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 tra c 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 (EDI) 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. Operating well Mr Saingolet said the entire system had been operating well, assuring the optimal 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 rst 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 pro le of the port, have enhanced the capability and ship management capacity of the terminal. Guadeloupe well on the way to modernization GUADELOUPE

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33 CARIBBEAN MARITIME I MAY 2007 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 benet from this accreditation, which was conferred on Jarry on July 10, 2006. What is making such a dierence? 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 carriers. 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. 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. 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 Alliances for Clovis* project has been validated by Interreg III and will strengthen relations and co-operation between Caribbean ports. The hub will also oer 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.” GUADELOUPE EDI system puts Guadeloupe on par with leading French ports *Clovis = Caribbean Laboratory for Open and Value Added Information System **Email: sabine.dorrifourt@ceiba-gp.com “The aim is to boost the port’s productivity while providing security, safety and traceability of trade”

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34 CARIBBEAN MARITIME I MAY 2007 F or too long, Human Resources (HR) has been perceived as the ‘softer’ side of the mari time industry, lled 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 protable 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 eorts must be driven by, and in support of, the service performance indica tors of timeliness, consign ment care, compliance and corporate eciency. Training for stevedores, crane opera tors and administrators must be measured for eectiveness 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 eorts for mutual survival. Reductions in teu through specic ports should permit the relocation of their trained stevedores and operators across geographical borders to high trac 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 ecient 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 nancial ones. External contractors Eciency 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 exibility 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 sta, particularly stevedores, and not solely through the unions. Remember, they are our sta, 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. Human resources and the bottom line HR must become the internal counsel to captains of industry by providing sound, objective and honest feedback THE HUMAN FACTOR 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 By Burnett B. Coke

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35 CARIBBEAN MARITIME I MAY 2007 The eet of Caribbean 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. Wellnitz, former President of the Caribbean Shipping Association, traveled to the Aker shipyard at Wismar, in Germany, to christen the ‘CFS Paranam’ by performing the traditional ceremony of breaking a bottle on the ship’s bows. By naming its new ship after Paranam, a port in Suriname, the company wants to send a message that Suriname – probably the most southerly point in its network – will continue to be served. The ‘CFS Paranam’, a 1,700 teu geared containership, will join the company’s eet, providing feeder services in the Caribbean Region. Caribbean Feeder Services started in August 2000 to o er feeder services to global and regional carriers. It currently operates 12 feeders of various sizes and calls at 25 ports in the Caribbean, Mexico, Central America, Colombia, Venezuela 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 Caribbean Region have become larger, so Caribbean Feeder Services is ready to follow its customers’ needs by upgrading the size of its feeder vessels. SHIPS Caribbean Feeder Services takes delivery of its largest ship

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37 CARIBBEAN MARITIME I MAY 2007 W hat has been described as “an impending boom” in Curaao’s cruise industry was a topic of keen discussion at a three-day conference held by the Curaao Ports Authority in January 2007. There was much talk about the Panama Canal and its implications for the Caribbean Region and Curaao in particular. And the conference heard that a committee 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 rmly established for some years, Curaao has been hesitant to build a second mega pier because it did not nd the gures 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 Curaao 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 Region • 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 Curaao must act now in order to prepare for what it describes as “this exciting onslaught in the near future”. To this end, the authority is working on a master plan and feasibility study for the new terminal. Curaao is becoming more popular as a Caribbean cruise destination in line with an overall growth in the island’s tourism sector. In 2006 Curaao 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 passengers. This means a growth of 34.6 per cent of calls and 8.1 per cent of passengers in comparison with 2006. A further growth in calls and passengers is forecast, with numbers set to increase by up to 400,000 passengers a year. On February 18 this year Curaao celebrated the maiden call of ‘Club Med II’ of Club Med Cruises and on May 29 the country expects to receive its rst call by ‘Holiday Dream’, a sister ship of ‘Blue Moon’ of Pullmanturs. The CPA says that throughout 2007 it will continue its e orts to market Curaao as a vibrant cruise destination 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, Curaao 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 in uential partners in this initiative. At the 25th anniversary conference in January, there was enthusiasm and interest from the Port of Rotterdam. In its biannual publication, ‘Curaao 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 Curaao Port Developers.” CURAAO Curaao plans second mega cruise terminal A recent conference to mark the 25th anniversary of the Curaao 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 460 16% 205 7% 920 32% 1,304 45% Other Cruise Tankers Freighters Curaao – vessel calls 2006

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Expanding the Panama Canal P erhaps 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 eectively 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 Pacic side. Each lock complex will have three chambers, including three water-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 Gatn Lake will need to be elevated. The project, which is expected to cost US$ 5.25 billion, will be self-nanced 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 Terminal, hosted CSA delegates on that trip and elded questions about the expansion project and its implications for Caribbean shipping. 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 rst time in our his tory of regional port devel opment, there is a denitive date. So every port in the Caribbean Region must plan accordingly.” 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 ports? “Economies of scale will dictate that these vessels call at fewer ports, but with more cargo. Eciency 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 cranes? “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?” Continuing growth in shipping industry is major challenge for Caribbean DEALING WITH GROWTH 38 CARIBBEAN MARITIME I MAY 2007 By Mike Jarrett 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 Sierhuis, and the Chairman of Group A, Robert Foster – have been discussing developments that will shape the future of the Region’s shipping industry

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Much more still to be done, says President 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, debtridden countries had little or no signicant support from the real beneciaries of these security measures – the more developed countries. “And while these small territories struggle with the tremendous cost of develop ing ecient and dependable port operations and having to purchase expensive security technologies from the devel oped countries, we are faced with the damaging eects 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 coordinated 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. Implications of Canal expansion 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 ment hubs to develop as eciently 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 eciency] yet have the ability to transport cargo quickly and eciently 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.” Cruise 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 industry. Both in the United States and in Europe, the cruise industry is on a growth 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. > DEALING WITH GROWTH 39 CARIBBEAN MARITIME I MAY 2007 “There is already a limit to what size ships the smaller Caribbean island ports can accommodate” CSA’s role as a forum The Caribbean Shipping Association provides a forum for carriers, port management, port and terminal opera tors and shippers to work together to facilitate trade. The Association is made up of three groups: • Group A – Shipping agencies, private stevedore operators and national shipping associations • Group B – Port, wharf and terminal owners and operators, including national port authorities • Group C – Ship owners and operators. There has also been signicant growth in a fourth area of CSA membership: non-vessel operators and freight consolidators. In addition, the recently formed CSA Cruise Committee has focused attention on the Region’s cruise industry, a pillar of Caribbean national economies.

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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. 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 nancing models are needed for these projects, as most governments are no longer in a position to nance 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 more on 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 ve 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 eort to escape congestion and oer a new, unique and fully controlled experience to their pas sengers. Recent examples are Costa Maya [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 eort to keep up with the market and with increased competition.” As Mr Sierhuis sees it, the stakes are getting higher, competition is erce 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 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 eects 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 benets. This also benets 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 Curaao, 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. www.caribbeanshipping.org “The arrival of more and bigger ships continues to pressure the cruise lines to seek for new home ports, new itineraries and new destinations” DEALING WITH GROWTH 40 CARIBBEAN MARITIME I MAY 2007

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CSA NEWS 41 CARIBBEAN MARITIME I MAY 2007 CSA TRAINING Some of the Caribbean’s most competitive companies, including port facilities, are involved in both cruise and cargo shipping. This is a growing trend and the CSA responded by organizing a training course on Strategic Management for Cargo and Cruise Operations last year in Curaao. Participants from Barbados, Aruba, Antigua, Curaao and Bonaire were led through a number of discussions dealing with practical ways to position their com panies for this continuing trend by Mr Fritz Pinnock. This course, held at the Dutch Caribbean Training Centre in Curaao on April 4 and 5. When New Orleans was devastated by Hurricane Katrina in August 2005, the Caribbean people could readily empathize. They deal with hurricane devastation and upheaval on an annual basis. Members of the CSA started a fund-raising eort for the benet of the workers of the Port of New Orleans. The money collected was pre sented to the port’s President and CEO, Gary LaGrange, by Corah Ann Robertson Syl vester, then President of the CSA, at a conference of the American Association of Port CSA PORT AWARD SPRC, Colombia was voted Caribbean Port of The Year – Best Container Terminal for the second consecutive year. Giovanni Benedetti, Direc tor of Marketing and Sales, received the trophy at the CSA’s 36th Annual General Meeting, Conference and Exhibition in Panama City, October 17, 2006. CSA PRESIDENTIAL THREE, ON BOARD Editor Mike Jarrett got Carlos Urriola (left) Fernando Rivera ( centre) and Corah Ann Robertson-Sylvester together during the CSA partial transit of the Panama Canal, at the 36th Annual General Meeting last October (2006); just 24 hours before they changed their respective roles in the CSA. Carlos became Vice TWO WOMEN Photographer Jorge Quin tana of Panama caught the moment in the semi-silhou ette of delicate natural light. Two of the leading women in Caribbean shipping, Corah Ann Robertson-Sylvester (left) (CEO of Seaboard Jamaica and CSA PRESIDENT MEETS JAMAICAN PRIME MINISTER Jamaica’s Prime Minister, Mrs Portia Simpson-Miller (right) had a warm hug and greeting for recently elected President of the Caribbean Shipping Association, Fern ando Rivera when the two met in Miami, Florida at the Caribbean Central Ammeri can Action (CCAA) annual Conference on the Carib bean in December 2006. The Jamaican Prime Minister rec ognized the importance and role of the CSA in regional devleopment. Mr Fernando was a discussion panelist at the Conference and the Jamaican Prime Minister was a featured speaker at one of the conference events. CSA asssists New Orleans Authorities in New Orleans in September last. The Port of New Orleans is a long-stand ing member of the CSA and has hosted a number of CSA conferences. The Associa tion last met in New Orleans for the 30th annual general meeting in October 2000. SMIT Harbor Towage Panama Inc made a substantial dona tion of US$5,000 to the CSA Training Trust Fund, following a discussion between SMIT’s Loek Kullberg and CSA Past President and Chair of the Trust, Frank Wellnitz in Panama City on the occasion of the CSA’s 36th Annual General Meeting. Here Capt. Ronald Neomagus (left) of SMIT makes the presen tation to CSA Vice President Carlos Urriola. The presentation was made at SMIT’s Panama oce on December 27, 2006. The CSA Training Trust Fund supports CSA training and human resource development programmes across the Carib bean Region. DONATION TO CSA TRAINING TRUST FUND Erica Luke, Marketing Director of Eric Hassell & Son Ltd of Bar bados share a brief moment of bonding during a break at the 36th Annual General Meeting in Panama City last October (2006). It was Mrs RobertsonSylvester’s last meeting as President of the CSA. President; Fernando became President; and Corah Ann demitted oce (having served three consecutive) terms to become Immediate Past President. EDITOR’S CHOICE

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43 CARIBBEAN MARITIME I MAY 2007 W hen 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 ocials from the Guyana Revenue Authority on a familiarization tour of the port, wanted to acquaint himself with processes, working conditions and issues confronting Customs ocials 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 ocial opening of its expanded facilities and the Minister was understand ably impressed with what he saw, as reported in the local press. In Guyana, JFL is accepted as the leading containerised cargo han dling facility. The company has grown signicantly 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 dicult to handle LCL (less than container load) cargo. “Our growth created a problem in that we needed more space,” said Mr Fern andes. 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. Expanded In addition to the new ware house, the company moved to create an expanded container yard. An area of mudat immediately west of the new warehouse was revetted, landlled and sur faced and established as the company’s import container terminal. It was this facility that was ocially opened on October, 10, 2006 by Guy ana’s Prime Minister, Samuel Hinds. 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. GUYANA John Fernandes expansion strengthens Guyana’s shipping industry The company’s import container terminal was opened in October

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45 CARIBBEAN MARITIME I MAY 2007 F aced with the challenge of port congestion as a result of growing cruise and cargo tra c, the small but vibrant port of Bridgetown, Barbados, is investing in a major expansion to retain its competitive edge. Among other notable investments, the port has licked its security challenges by acquiring the latest in antiterrorist technology. To be ‘best in class’ for services and facilities is a key objective for Everton Walters, the port’s chief executive o cer. “He has always determined that this is the standard that the Bridgetown Port should achieve and seek to maintain,” said marketing specialist Freida Nicholls of Barbados Port Incorporated. “We cannot compete with, say, the Port of Kingston [Jamaica] in terms of size – but we can compete with them in terms of our operations. “To be best in class means the type of services we o er, the type of facilities we o er. Best in class comes from the distinct focus on the customer.” Few other government or quasistate organisations in Barbados have attracted the same level of investment 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 created from a land reclamation project that connected Bridgetown with tiny Pelican Island in the southwest. Over the years, the port has undergone major extensions to cope with changes in international shipping. One extension, between 1975 and 1979, provided more docking places, facilities for small vessels, a container terminal and a modern administration building. Encourage The current expansion, begun in 2002, includes dredging of the inner harbour to increase the depth from 9.6 to 11.6 metres and to encourage mega cruise ships to call at Barbados. As part of a rearrangement of port areas, the dredging spoil was used to reclaim nine acres on which to provide a new cargo berth and more container yard space. A fth berth was opened last year, increasing berthage to 1,513 metres and enabling the Port of Bridgetown, though relatively modest in size, to accommodate a large number of > BARBADOS Bridgetown invests in major expansion 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 The Port of Bridgetown can accommodate ve mega sized cruise ships at a time

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vessels, including ve mega sized cruise ships, such as ‘Adventure of the Seas’ and ‘Queen Mary 2’, at any given time. Bridgetown, which has won more awards than any other Caribbean port since 1993. It also acted swiftly to comply with the International Ship and Port Security (ISPS) Code, putting all the required systems in place well before the July 1, 2004 deadline. More than US$10 million was invested in a range of equipment specied by the ISPS code including high intensity lighting scanners, security cameras and X-ray equipment. The port is also in the process of acquiring a US$ 2 million Integrated RFID and Sensor System of wireless ground and under water sonar and video cameras that work in concert to manage security threats. “Nothing in our security is [too] expensive,” said Ms Nicholls. “Security now demands a larger chunk of our budget than in previous years. Ten years ago you did not have 9/11 and a shifting in the world’s insecure centre. Ten years ago you didn’t have to deal with that.” Meeting demands Although the Port of Bridgetown has met international standards since its inception, the current expansion and renewal project, originally estimated at BDS$100 million, resulted from a spe cial study in the 1990s. This study indi cated that the port must renovate its infrastructure and expand on its core business areas of cargo handling and the cruise sector to meet the demands of the 21st century. The reform began with the incor poratization of the Barbados Port Authority as Barbados Port Inc – an institutional change in the port’s BARBADOS administration that paved the way for new investment and development. The port is now being divided into four zones for greater eciency and safety of port operations. Cruise ship handling will be con centrated in the south of the port and a new cruise pier, originally estimated at US$ 20 million, will be installed to accommodate two large cruise ships simultaneously. This will provide extra capacity to handle the expected rise in cruise arrivals and cargo. The two berths will boost the port’s daily passenger handling capacity by 8,000 and will allow the port to continue to separate its cruise and cargo handling operations in the interests of passenger safety. Port management is also putting in a post-panamax gantry crane to serve cargo vessels with a capacity of up to 3,500 containers. Cargo handling will continue in the main port and bulk handling will be concentrated on recently reclaimed land to the north. Leisure craft will be accommodated at the Shallow Draft Wharf behind the main cargo quay. The sugar loading towers, a land mark at the breakwater since 1961, will be dismantled and relocated to new sugar facilities at the Land Reclaimers site, near the Flour Mills o the Spring Garden Highway, just north of the port. The port’s bulk sugar terminal is also being redesigned and converted into a facility for cruise passengers. Ms Nicholls said: “We are looking at creating a facility outside the environs of the port but with accessibility for land-based residents and visitors as well, similar to what obtains at Biscayne 46 CARIBBEAN MARITIME I MAY 2007

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47 CARIBBEAN MARITIME I MAY 2007 in Miami, where locals can go without encroaching upon the integrity of the port. “We are looking at a crew facility. We don’t have one,” she added. Although plans are not yet nalized, considera tion is being given to a multipurpose facility that would include recreational activities for ships’ crews. Key benets One of the port’s molasses tanks will be converted into a potable water storage system with ancillary pumping facilities. It is all part of an expansion and renewal that is intended to bring key benets to both port users and cus tomers. Ms Nicholls said the major challenge facing Barbados Port Inc was that the Deep Water Harbour was originally con structed as a cargo handling port. “We have to tweak and adjust and rehabilitate and revise to create a cruise facility within there. And as cruise pas sengers increase and cruising becomes more popular, demands on services and facilities are going to be greater.” Pointing to St Marteen, where there is a purpose-built cruise facility, Ms Nicholls said: “Newer players into the market have a decided advantage because they can design a facility specically geared towards the require ments of the cruise passenger. We have to make adjustments.” She agreed that, like other public and private sector organisations, the Port of Bridgetown had faced challenges. “But we seek to ensure that the peculiarities of port operations and port services are addressed by ensuring that we have ongoing training,” she said. The marketing focus has also been rearranged to emphasise port devel opment and delivery of service. The spotlight is on frontline sta, including cashiers, receptionists and security ocers, who interact with customers. Port marketing has not only shifted from selling to a customer focus, but as Ms Nicholls explained: “We are going even a step further to the modern-day concept of marketing, which is building lasting relationships. “If you have a relationship with your customer that allows your customer to feel that he is important, that he has been well served, when the problem occurs – and it will – you are better able BARBADOS “We seek to ensure that the peculiarities of port operations and port services are addressed by ensuring that we have ongoing training” to hold on to that customer because that customer knows that you have his best interest at heart and you are going to seek to x what is not right. “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 the maintenance of equipment, the provision of timely service and ongoing training of the port’s human resources. The Port of Bridgetown has earned a ne reputation as a multipurpose port and has won best port awards from the Caribbean Shipping Association (CSA), Dream World Cruise Destinations and World Cruise Destinations and Seatrade in the categories of Most Improved Port Facilities and Most Receptive Destina tion since 1993. Bridgetown won the CSA Port of the Year awards in 1993, 1995, 1996, 1997, 1998 and 2003 and was named the CSA’s Best Multipurpose Port in 2004. It was runner-up in the elds of World Best Destination and Best Destination in 1996. Bridgetown has won best port awards from the CSA and other organizations

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48 CARIBBEAN MARITIME I MAY 2007 M an’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 denition. During the late 16th to early 18th centuries piracy – dened 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 nancial benet, 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 specic 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 o 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 ve 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 indenitely 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 servicebased 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 aects the other. The vulnerability of regional shipping interests is thus apparent. Indeed, one may even be of the view that the aforedescribed 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 context. It is a sensitivity to these issues that may in turn transform what may be viewed by some as extrane ous “rst 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. Piracy and maritime terrorism: a convergence of challenges for Caribbean shipping By Milton J. Samuda and Stacey-Ann Soltau-Robinson* A MATTER OF LAW *Both Milton J. Samuda and Stacey-Ann SoltauRobinson are attorneysat-law The practice of attacking and robbing ships at sea was commonplace throughout the Caribbean