CSA President urges dialogue

to exploit opportunities

2006, June 1: The Caribbean shipping industry is experiencing rapid growth and fundamental change at this time and the implications of these developments must be studied and response strategies formulated.

In this regard, the President of the Caribbean Shipping Association (CSA) has urged all players in the industry to listen, learn and engage in dialogue.

Addressing the opening ceremony of the CSA’s annual Caribbean Shipping Executives Conference, held this year in Willemstad, Curaçao ( May 22 – 24), Mrs. Corah Ann Robertson-Sylvester urged CSA members to seek out the opportunities inherent in change and to make the adjustments necessary to benefit from the new situations presented.

“There has been significant growth in our industry. The operations of our terminals and our agencies are completely different from thirty-five years ago when the CSA was formed. Many of our terminals boast the most sophisticated technologies; and, our agency offices are all fully computerized -- a big change from 10 years ago.

“Industry growth is clearly evident in terminal expansion, equipment upgrades; human resource development, expansion in the capacity of vessels serving the Region and development of new services; as well as many changes in Agent representation and formation of new shipping related business. Of profound importance to us is the fact that the political leaders in our countries now see this industry as one of the foundations necessary for a vibrant and productive national economy,” the CSA President said.

EXPANSION

Addressing over 100 of the leading decision-makers in the Regional shipping industry, in the presence of Curaçao’s Governor, Mrs. L. M. Richards-Dindial who declared the event open, the CSA President took note of the fact that container terminal expansion and changes in terminal management were taking place all around.

“Members of our Association have announced major expansion programmes and changes in the management of their operations. A few months ago, Trinidad and Tobago’s Minister of Works and Transportation announced that his Government had awarded a United Kingdom company - Portia Management Services Ltd., a 3-year contract to manage and operate the Port Authority’s terminal in Port of Spain. It is expected that this new management company will take the Port of Port of Spain to a higher level of international cargo handling standards.

“In Jamaica, the Port Authority of Jamaica has started massive expansion at the Kingston Trans-shipment Terminal to facilitate the increased trans-shipment business that Jamaica has contracted.

“It is not only the Government-run operations that are making these changes. Privately owned terminals are expending significant financial capital in order to accommodate more business and provide greater efficiencies in port services.

CHANGE

“Accompanying these new developments, are changes in the way businesses are operated. With the implementation of automated processes for cargo handling, the terminals in the Caribbean will now offer some of the services that shipping agencies traditionally handled exclusively. This will undoubtedly result in revenue losses for Ship’s Agents. However, it is not a trend that the Agents can fight. The Agents will have to embrace and work with the system and find new ways to replace the lost revenues.

“Smaller territories that have one multi-purpose port -- where the space has to be shared between the cargo operators and the cruise vessels -- continue to be challenged. It is vital that the Port Authorities and terminal operators speak with the cargo entities and their agents, and work together to find solutions for the use of limited space.”

The CSA President said that the Caribbean Shipping Association provided a “medium for dialogue and we encourage the Agents and Ship Owners to have discussions with the terminal operators and port authorities on how best they can work together for the greater good of the Regional shipping industry.”

CRUISE INDUSTRY

Turning attention to the cruise industry, a pillar of Caribbean national economies, the CSA President said: “I noticed, with interest, the (cruise ship) Freedom of the Seas, now the largest cruise vessel in the world, docked in the New York Port. What came to my mind at once, was that these vessels are getting larger and larger; a point which has been discussed at our meetings before.

“How will this affect the infrastructure of the Ports? And it is not only the infrastructure of the Ports that are of concern here, but the entire infrastructure of our countries. With these vessels carrying more passengers, how will the tiny streets deal with thousands of passengers disembarking at the same time?

“What is clear is that some of these smaller islands may find it difficult to accommodate the large vessels and the volume of passengers.

GROWTH

Addressing other areas of growth, Mrs. Robertson-Sylvester spoke about the proposed expansion of the Panama Canal.

“The Panama Canal authority unveiled its plan to double the Canal’s capacity at a cost over $5 billion by 2025. What will this mean for our Region if the Panamanians approve this expansion by referendum? This topic will need much discussion as there will be effects on our (Caribbean) Region from a cost perspective and vessel size.

She noted that the CSA will hold its 36th Annual General Meeting, Conference and Exhibition in Panama later in the year (October 16 to 18) and this topic will be explored.

“The price of oil continues to be a major concern. New York taxi operators are reportedly proposing a surcharge on their fares for fuel … a new concept for that kind of business. We in the shipping industry have been experiencing bunker increases for some time now. The reality of today’s shipping industry is that the bunker adjustment factor is here to stay. Shippers and consignees have a right to an explanation and (Ship) Agents and all players must explain the necessity for these additional charges,” she said.

OPPORTUNITIES

“One of the new opportunities for our region is in the field of logistics. This is one of the areas of the new transportation cycle. Everywhere you turn customers are requiring that carriers and shipping agents provide more value-added service.

“Inventory control, bar coding, repackaging, warehousing, and delivery are just some of the services which are being demanded. We have seen many of the large ocean carriers provide logistic arms as add-on service to their regular container business. This is one area in which there is a lot of potential for growth for CSA members.

“Listen, learn and implement what you have learnt now. It is important that you listen to the information and see how some of these ideas can be translated into new business in your respective countries.”