A CARIBBEAN SHIPPING ASSOCIATION POSITION

President’s remarks at

29th Miami Conference on the Caribbean Basin

in discussions on Transportation and Logistics

InterContinental Hotel, Miami, Florida

2005, December 6

The theme selected for this 29th Miami Conference on the Caribbean is interesting as it puts on the table for discussion the problem of prosperity. The theme of this year’s conference is ‘A Prosperous Third Border’. It puts on the table for discussion matters and issues related to the economic and socio-economic well-being of the so-called Third Border of the United States, the Caribbean.

The more discerning among us will immediately realize that I have presented prosperity as a ‘problem’. Short of winning the lottery or receiving some significant inheritance or legacy, achieving prosperity is a challenge; a problem to be solved.

Undoubtedly, a prosperous Caribbean region is in every nation’s interest, especially the countries of this Western hemisphere. It was the search for riches that brought Europeans into the Caribbean; and, it was the prosperity that the lands we now refer to as the Caribbean and Latin America that made them stay. In fact, the wealth extracted from the Caribbean, Central and South America regions and the trade sustained by wealth extraction created much of the prosperity enjoyed by Europe today. It is therefore timely, indeed it is long overdue, that we discuss the prosperity of the Caribbean. As I said, a prosperous Caribbean is in everyone’s interest.

As we sit here today, it is important to note that the Caribbean is seeing an unprecedented level of cargo movement by sea. The most heavily serviced trade lanes out of Florida are those heading South. New and emerging trade routes are being charted to or though the Caribbean. And, even as we speak, new and expanded trade routes are being planned for the Caribbean. Today, most world carriers are serving the Caribbean. The volume of shipping to and through the Caribbean is at an all time high and our ports and terminals including some that have only recently completed major expansion programmes, are now contemplating further expansion and development. Port congestion is again on the rise and we have had to establish demurrage companies in an attempt to get boxes back into the trade.

DEEPER IN DEBT

In this scenario, it would be reasonable to deduce that the economies of the Caribbean basin are now enjoying a boom. And, if they are enjoying economic boom, why are we here discussing “A Prosperous Third Border”.   The fact is, collectively, the economies of the Caribbean are deeper in debt than ever before and generally are recording relatively little or no growth at all.

The Caribbean region depends on the shipping industry to turn most trading opportunities and ideas into reality. The countries of the region are generally separated by water. Very few neighbouring states have land borders. Yet, despite this fact and the reality of an ever increasing and expanding maritime trade, Caribbean operators have very little invested in that which makes the shipping industry possible – ships. Ships are the primary factor of production in the shipping industry. Our human resources are a critical factor in the equation but without ships there is no shipping industry.

Prosperity is directly related to ownership of the means of production. So, if we are going to discuss “A Prosperous Third Border” at this 29th Annual conference, we should also be discussing new strategies and initiatives to facilitate Caribbean ownership of the means of production.

Clearly this is a huge topic that cannot be fully treated in these few introductory remarks. It starts with the premise that real, sustainable prosperity starts with ownership of the means of production. These discussions would address models of ownership (and of these there are several); capitalization and access to venture capital.

Can real prosperity on the third border of the United States be achieved if the players do not actually own or share ownership in the means of production?

Can country objectives which led to treaties and alliances such as NAFTA, the Caribbean-Central American Free Trade Area and the CARICOM Single Market and Economy be achieved if the nationals of those countries do not own a stake in the process?

What is the role and potential of the Caribbean Development Bank in the context of the development of Caribbean shipping?   And, how can we promote Caribbean ownership of the means of production without soiling already dismal economic indicators, specifically Gross National Debt?

no discord or inconsistency

The Caribbean Shipping Association sees no discord or inconsistency between (a) ownership of transportation services; and, (b) the development of efficient transportation services. And whereas we in the Caribbean do not have a great track-record in liner operations, I submit that ownership is a completely different matter. Ownership, as I use the word, is about business and we, in the Caribbean, have established a marvelous track record in this area. The volume of shipping traffic going Southwards from here somehow attests to this fact.

As I said, it is a huge topic, one that the Caribbean Shipping Association must explore. For 35 years, the CSA has promoted growth and development of the Caribbean peoples through an efficient and viable shipping industry. We have discussed and studied every aspect of shipping in the quest for greater productivity. History has changed the setting over these past 35 years and today our governments negotiate pacts and treaties for free trade areas and special trading blocs. In this regard, ownership of the means of production may be a critical factor if the recent trade pacts our governments diligently negotiated on our behalf are to bear success.

This Conference promotes greater prosperity for the Caribbean region and, in that context, the “Building (of) Bridges Through Efficient Transportation Services” -- the title of our round-table discussion this afternoon.

Our topic, as worded, would have us address the building of bridges rather than development of efficient transportation services. I don’t know if this is what those who planned this session had in mind or rather, as I am presuming, they would have us address factors in developing efficient transportation services. Suffice it to say, if we are addressing the building of economic bridges, then maritime services, air travel, courier and cartage services will have to achieve higher and higher levels of efficiency. Prosperity and growth cannot be predicated on inefficiency.

Each component of the Transportation Services Sector must therefore continue to explore, adapt and adopt methods and systems which produce higher levels of productivity. And every player in the process will need to apply and sustain the passion and zeal necessary to achieve these sought-after increases in efficiency and production.

This latter element, passion and zeal, although not exclusive to owners, is (I would propose) highly inspired by ownership.

In addressing “Building Bridges Through Efficient Transportation Services” we must spend some time discussion efficiency in transportation. In so doing, we should at some point look at what stake the key players have in the shipping industry; and, how can increasing that share lead, ultimately, to increased productivity and the building of economic bridges.

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MSLJ 2005-12-01