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No. 4 IA -AGST20
CAR.*MBAN
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CARIBBEAN
MARITIME
No. 4 MAY-AUGUST 2008
COVER STORY
12 St Maarten Progress
Man of vision inspires success
SPECIAL FEATURES
5 Port Security
CSA moves to assist Caribbean ports
and terminals
9 Financial Accounting in Caribbean Ports
Don't shoot the messenger
16 St Maarten's Expansion
Major expansion growth driven
19 Puerto Rico
Major redevelopment for the San Juan waterfront
22 Panama Canal Expansion Programme
Excavation of Pacific Access Channel
well advanced
24 Foreign Port Management
International expertise is Region's number
one import
27 Cartagena
Cartagena invests in major new
container facilities
28 Suriname
Suriname port expansion will benefit economy
29 Cuba
US$ 250m plan to transform Mariel into
transhipment hub
30 Guyana
Guyana bridging a trade gap
32 CSA Training
CSA members can benefit from collaboration
with Puerto Rican university
32 Port of Spain
Fourth gantry crane for Port of Spain, Trinidad
34 Port Security
High cost of combating terror
36 Information Technology
Driving maritime development with IT solutions
....go thdie
Puert a. ***
______ immf~iji~yTjT'j^
CONTENTS S
STANDARD FEATURES
2 Editorial
The weakest link
3 Message from the CSA President
An action plan for national shipping associations
38 Newsmaker
David Harding accepts chair at Barbados Port Inc
39 Newsbriefs
40 Hazardous Materials
In the name of safety, give that information
42 CSA news
45 The Human Factor
A case for true strategic partners
47 A Matter of Law
Seabed authority believes in doing good
by stealth
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 AUGUST 2008 1
EI EDITORIAL
CARIBBEAN
NMARITIME
No. 41 May-Aug 2008
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 2007-2008
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: lIan Deosaran
Group A Representative: Francis Camacho
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,
PO Box 1050, Kingston C.S.0, Jamaica
Tel: +876 923-3491
Fax: +876 757-1592
Email: csa@cwjamaica.com
www.caribbeanshipping.org
EDITOR
Mike Jarrett
Email: csa-pr@mikejarrett.net
PUBLISHER:
MARINE
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
The weakest link
When proverbs degenerate to cliche, we risk losing the collective wisdom
of our forebears. You may consider this an odd, even melodramatic way
to start, until you too are faced with having to apply or recite an old truism
that has, over time, lost its deeper meaning through overuse.
By moving to assist the Caribbean's smaller ports with sustaining an impregna-
ble port security system, the Caribbean Shipping Association has demonstrated an
appreciation for age-old wisdom: "A chain is only as strong as its weakest link".
Overuse may have robbed this proverb of some of its profundity. So I invite you
to ponder anew. The proverb implies that the chain is relatively strong to begin
with and that the weakest link renders the entire chain weak. Deduce, therefore,
that the weakest link makes it impossible for the chain to achieve its full potential.
Following on our new-found appreciation for the frightening possibilities of
terrorism, as demonstrated on 11 September 2001, we should approach port
security as a world system rather than local initiative. In this respect, port security
may therefore be likened to a chain: designed to restrain and control; and, com-
prising separate but linked components (i.e. ports and terminals). Where one such
component is weak, the port security system in every port with which it has a sea
link is exposed and open to threat. It is the direct link, ships connecting ports, that
justifies the "chain" analogy.
Marine terminals of the world, although separated by space and governance,
must be linked in a seamless, global security system that protects not only human
life and property but which preserves lines of trade. It is in this context that the
CSA wants to strengthen the weakest links and has been discussing how it can
support ports of the Region to achieve and sustain a viable port security system.
These discussions within the CSA have only just begun and CSA President Fern-
ando Rivera has been having exploratory discussions with a number of agencies
and organizations.
To be clear, the CSA is not about to develop and implement security systems.
Rather, the CSA, in recognizing the need for an impregnable port security system
across the entire Caribbean area, has become proactive. In this regard, the Associa-
tion is concerned that:
* Caribbean ports and terminals should have appropriately designed, frequently
audited and tested port security systems;
* Caribbean ports and terminals should have timely access to the latest informa-
tion and decisions regarding port security regulations recently enacted or being
discussed for enactment;
* Regional ports and terminals should have access to relevant information and
intelligence that will help prevent security risks and breaches;
* Regional ports should have a forum in the CSA in which to address issues and
work out solutions for sustaining an impregnable Regional port security system.
The CSA sees this as part of its continuing work of assisting Caribbean develop-
ment and this fundamental principle, that is, supporting and facilitating Regional
development, was reaffirmed at the CSA General Council's strategic planning
retreat, held in March 2008 in Miami, Florida.
Mike Jarrett, Editor
2 CARIBBEAN MARITIME I MAY AUGUST 2008
MESSAGE FROM THE PRESIDENT I
An action plan for
national shipping
associations
THERE IS NO DOUBT
that the previous
editions of'Caribbean
Maritime' have been a
total success and we have
accomplished the goals we
established at the outset.
Every new edition shows
an improvement over
the previous one and the
distribution is expanding at
a fairly rapid rate in fact,
beyond our expectations.
This fourth edition,
dedicated to the ports and
terminals in our Region,
promises to be even better.
This edition will highlight
the great improvements
that have been made or
are being implemented in
some Caribbean ports and
terminals and the excellent
facilities that we have avail-
able in the Region.
Issue No 4 of 'Caribbean
Maritime' will be ready
for the Caribbean Ship-
ping Association's seventh
Caribbean Shipping Execu-
tives' Conference, to be
held on 19, 20 and 21 May
in St Maarten, Netherlands
Antilles. This conference
promises to be very success-
ful, based on the excellent
agenda and speakers con-
firmed to participate.
Encourage
I want to take this oppor-
tunity, as previously, to
announce our plans to reor-
ganise the National Associa-
tions Committee during the
May conference. I encourage
every president or manager of
each national shipping asso-
ciation to attend this meeting
of the National Association's
Committee, scheduled for
Sunday, 18 May. I will person-
ally chair the meeting. Our
main goal will be to establish
an action plan to improve the
capability of national ship-
ping associations.
Again, I want to thank
all our corporate sponsors
and the many individu-
als and organizations that
continue to support the
Caribbean Shipping Associa-
tion. Your involvement has
contributed in no small way
to the continued growth
and development of this
regional body one of the
very few organizations that
includes in its membership
public and private sector
entities across four different
language groups.
I look forward to seeing
you all in St Maarten for the
seventh annual Caribbean
Shipping Executives' Confer-
ence, hosted by the CSA in
collaboration with the Port
of St Maarten.
Fernando Rivera
President, Caribbean
Shipping Association
CARIBBEAN MARITIME I MAY AUGUST 2008 3
'I want to thank all our corporate
sponsors and the many
individuals and organizations
that continue to support the
Caribbean Shipping Association'
The next issue of "'Caribbean Maritime"
M E will be out in October 2008. So don't
the boat. Call today to book your
n t miss the boat! ads'ertisement.
Got a message to put across? Then you won't Please contact Lester Powell at
find a better spot than "'Caribbean Maritime", Land & Marine Publications Ltd:
the regional publication of choice for people in Tel: +44 (0)1206 752 902
the shipping industry. Email: lesterpowell@landmarine.com
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* Direct, regular service between the United
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* Fixed day sailings
* Roll on/Roll off service & Load on/
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* Sophisticated camera security system at the
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EA N EARD
M A R I N E
CSA moves to
assist Caribbean
.ports and termin
By Mike Jarrett
.. .. .. ..
L. A, -, .
P UiL se.urILy was Lt e main eILIi
on the agenda in Santo Domingo
in April last when representatives
of the Caribbean Shipping Associa-
tion sat down in conference with
the Organization of American States
(OAS) and the US Coast Guard. CSA
President Fernando Rivera, accom-
panied by General Manager Stephen
Bell, flew into the Dominican Repub-
lic to participate and to deliver a
paper on 11 April that explained the
CSA's objectives and initiatives.
The Caribbean Shipping Association
has become increasingly concerned
about poI t seemi ity issues and has been
looking at how it can assist the smaller
states of the Cai ibbean legion The
topic of po0 t seeml ity has always been
at the top of CSA piioities In fact, the
Association maintained a close ielation-
ship with the Mai time Secui ity Council
throughout the 1980s and 1990s and
was leplesented at most MSC meetings
duLing that period. So the Plesident s
ti p to the Dom Rep was not altogether
LIIunusual and was mole of a continua-
tion of theCSAs wvoik and interest in
matters of pol t secu ity.
Since Septembei 2001 however, poIt
secuLIty matters have become mole
urgent foi the CSA The Cai ibbean s
" 1:i,,.% "
als
main I ( 11 I U IIng paJI tl l .S ale demandingIIII
state-of-the-ai t caigo inspection sys-
tems and big ticket haidvwaie and soft-
vvaie items Caiibbean states, most with
national populations half the size of
many of the woi Id s majoi cities, must
cutting edge digital electronics and
vely, vely expensive
In voicing his concern, at the General
Council meeting, held in Kingston in
January 2008, the CSA President was
particularly mindful of the security
The CSA has become increasingly
concerned about port security issues and
has been looking at how it can assist the
smaller states of the Caribbean region
luiiLy to find investment to acquire the
same type 01 Cuality of equipment as
the most developed counties on the
planet This is necessary, all things con-
sideied, but po) t secul ity technology
does t come cheap
Foi micio states, and theie aie many,
in the Cai ibbean, the level of budget-
ai y expendituie lecliled foi security
bi ings the poi t into shai p competi-
tion foi scarce financial esouLces,
increasing the national debt of already
debt-buldened economies Of course,
it is necessary to protect Regional trade
and the ships which move goods within
and across the Cai ibbean Sea However,
this lecquies effective and dependable
port secul ity systems, much of which is
needs of small Caribbean nations and
the cost of acquiring and maintain-
ing viable port security systems. He
pointed out that there were cases
where small territories could obvi-
ously benefit from technical advice to
prevent them purchasing the wrong
equipment or acquiring systems and
hardware that they did not need.
What is CSA doing
about port security?
And what exactly does the CSA plan to
do about port security?
The CSA President said in January:
"Our main goal [immediately] is to
develop an action plan to assess the
security necessities of all territories >
CARIBBEAN MARITIME I MAY AUGUST 2008 5
14L .. ... ....
h* :.. ':V.: N.
PORT SEe.IT
sm l outis. Thso acinplnwl
nu be 0f bodies wihi Ah Region
inl0in th 0 nte -So.te .0as .0. .h 00 00sien
Gurd A ai m th Organzto .ai 00 t-- - - 0at Domng
of 00ria Stte 00.S an 0te c-- - - - -00 0[o exm l]hr
mai0 m im otn 0raiain. 00 .a als bee 0t.00e00.-s-c.n0e0 n
sai 0h 0.s im otn 0 lm n f abu 10 pe 0en sca0.ingco0i00
th 0cio pla wa 0t mak 0ur tha 0ro 0l qures One 0f 0u ln -
00. know 0.er eac terior stnd stadin me bes wh 0 nw 0t 6-
toa .0arin al seurt meas Caribea ver wel 0u tsmpy
urs Thi .0l alo us to se 000t are hundre 000ntsanig nls
wise0 000 tha is, *ha the build or 0ur me br othCaib nsip ng S tol D mnosi Aprl Fer.00d
chase wha 0s rell neesar fo thi frtrnt 0.00 bee sain abou 0.e Rier 6xlind *Ou ofhidalgu
0.tcua ned. noio of 0100 pe cen 0cnin. Hi 0n intaie whc ma 0nov on
reeec wa 0to 000en prnuc- 0r more of the 00tlaeal .ga
3-nt fro th 0 S Goenmn *n to 0 hc *h A *s asocatd
m00 in Mim 00d dicssd 00on al ot lne o *S *ot sh o -l be to- *aibea ShpigAss*iaton
ote thns matr relate *o 0or elcrnial A cnnd a -orm nn co u0~ n t Iwthpr
was abe o dicls to shone nc bea -- aes Thi s n prepar0atiAnfor
0p*r* secuity -soali *e over th 0 0er 0it Caib ineenet *niae o rgniato
0nomain exlrn 0atesi pos0 00.anis000on00.nee0
towihi sascitdadstigu an 000 pe ntio n of tainn wor- Supler- of seurt sof.0-rean
ma Aee it Th 000 cato ha- -oben-si- -h-ad-ririi0.
Tho-.h the *** Aest *w w poiu at 0.feene and* meetings- o~
bein exrese by some 00bes 0hs 0sus 00weg aeo alscoso h
seeowihh -appropra-ns of 0 hi th dilo u te A -gsie th Asoitn has
cicu sane abugotscrteise.Tiea he ifre bu ha srqie n
the time frames within which they must
commission new systems.
In various messages and articles,
published and presented verbally
in meetings and conferences and in
training seminars, the CSA has brought
attention to port security issues.
The Association has consistently
bought po t seciinty to the
foie and kept it on the
!ii. Regional agenda
Immediately following 11 Septembei
2001, the CSA moved port secui ity to
centre stage and at every conference
presented technical papers and docIu-
mentation to help Caribbean poi ts
deal with the new situation presented
by the spectre of terrorism The suLIs-
tained effort then was at least pal tally
responsible foi the fact that almost 100
pei cent of Cai ibbean seapoi ts met the
ISPS deadline- in July 2004
It is against this background of
achievement that the Association
moved to ensuile that the effoi ts and
saci ihces already made by Cai ibbean
counti ies to bi ing port secu ity to
present standards are not wasted and
that the ei iors and shoi comings
that may have attended that
pi ocess of development
are not repeated u
The ISPS Codle wii's instititteil i
pailt of the ilIte,,iitioliall o1/11
iiin's IvstioIse to the .Se[Pteintl'r
of tilL FIL'iicI oil tivikev Linll ir'i.
The I,. S. C otist GL1,1111 alS thet
IC1'1i( 11L)CIIL ill tiie I 'ijitedl Staltes
(khIeltioli to the Iiite,,uiatioiall
igJ1'OCAiMt~ or the met'asiue. The
Codeit? I(I 171iie"d (It aI Iuetii1li of
the~ II'-S siaimitovies to the SOL AS
co~l''ei~tiolii i Loidon ill Deceiii-
bev i L' The niel~esLes titivee
iiiuele the Cod'l wevee bIIIhi111t
iiito force Onl *ILI1' 1, 200)4.
Adikibaeip)oring.
possibilities with mu
organizations to which it is asso:
and setting up an internal structure t
deliver support to Caribb apl. r nd, d4
terminals whb' .
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DIRMEN
DAMEN SHIPYARDS GORINCHEM
Member oi the DAMEN SHIPYARDS GROUP
In:dustrelterrein Avelngen West 20 RO. Box 1
4202 MS GaC-nche-n 4200 AA Gorincheum
The Netherlands
phone -31 (0)183 63 92 67
fk --31 (0)183 6377 62
americaso.damen, ni
www da nt-ni
*g:
i..
S .
N
N
0
Un't shoot
the messenger
KV
By David Jean-Marie
Discussions about ports tend to
focus on operational matters,
degrees of efficiency and effective-
ness and labour-management rela-
tions. However, the recent interpre-
tation of the financial performance
of the Port Authority of Jamaica
(PAJ) in one of Jamaica's leading
daily newspapers, the 'Jamaica
Observer', on 20 February 2008 has
brought into sharp focus the need
to inform and discuss how ports
account to shareholders and stake-
holders generally. This is particularly
important in the present era, when
accountability and transparency are
demanded as fundamental to the
ethos of doing business.
Ports have been evolving from
being departments and state entities
through to corporatised and fully
commercialised organizations with
varying degrees of public-private par-
ticipation.
David Jean-Marie, a member of the CSA's General
Council, discusses how ports account and report
their financial situations.
In the case of the Port of Bridge-
town, the transition from a port depart-
ment to a statutory corporation, the
Barbados Port Authority, occurred in
1979. Following the Reform and Expan-
sion Project, this statutory corporation
was re-incorporated in 2003, leading to
the formation of Barbados Port Inc, a
company owned by the Government of
Barbados as sole shareholder.
Principles
In general ports, like any other for-
profit entity, are required to follow
generally accepted accounting prin-
ciples. Management accounts are set
up along departmental and functional
lines and reports produced normally on
a monthly basis for management and
board review. Year-end results are then
audited by an independent external
auditor reporting to the shareholder.
Management is responsible for the
preparation and fair presentation of
these financial statements in accord-
ance with international financial
reporting standards. The independent
auditor, on the other hand, conducts
the audit in accordance with Interna-
tional Standards on Auditing (ISA) and
expresses an opinion thereon.
Throughout the Region, ports have
clearly shown their commitment to
being accountable by having up-to-
date audited financial statements. A
review of these audited statements
reveals conformity to international
financial reporting standards and best
accounting practices with all such
audits being unqualified.
A qualified audit opinion is issued if
the auditor disagrees with the >
CARIBBEAN MARITIME I MAY AUGUST 2008 9
A' FINANCIAL ACCOUNTING IN CARIBBEAN PORTS
treatment or disclosure of information
in the financial statements. If the state-
ment that "in our opinion the financial
statements give a true and fair view"
is given as an audit opinion then the
audit is unqualified. This is what should
happen.
The 'Observer' report on the finan-
cial performance of the Port Authority
of Jamaica for 2007, and specifically
Kingston Container Terminal, may be of
concern to shareholders, but not due
to any doubt or qualification by the
external auditors.
These results, though not ideal with
respect to port operations, in no way
reflect negatively on accounting prac-
tices. These practices have been tried
and proven in a rigorous manner over
the years. The concern may be the effi-
ciency of the Port Authority of Jamaica,
its pending loss of transhipment busi-
ness given the level of capital expendi-
ture on equipment and expansion, as
well as its cost management issues as
highlighted by the 'Observer'.
Dynamic
The maritime business in the Caribbean
is rather dynamic, with major play-
ers in the cargo and cruise industries
tegic investments in berths, property
and equipment, given the competition
among the many traditional ports and
the newly opening ones in countries
such as Dominican Republic and Cuba.
It is in the interest of regional ports
to enter into carefully considered
contracts with lines where significant
investment outlays are necessitated,
lest the result is unused port capacity
and related unmanageable debt.
Other areas of concern for Caribbean
ports include the state of labour-man-
agement relations, productivity regard-
ing berths and cargo throughput, the
ability to satisfactorily service cargo
and cruise stakeholders, the competi-
tiveness of port tariffs and the level of
certification and training of port work-
ers as well as environmental and secu-
rity requirements. These are weighty
matters, each worthy of elaboration in
its own right. However, they do not in
any way diminish the rigorousness of
the application of international finan-
cial reporting standards in accounting
for ports.
The maritime business in the Caribbean
is rather dynamic, with major players
in the cargo and cruise industries
repositioning assets in the market to
their advantage
repositioning assets in the market to
their advantage. Caribbean ports have
therefore to be wise when making stra-
Profits are sometimes affected by
gains due to the disposal of assets and
business segments, the revaluation of
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10 CARIBBEAN MARITIME I MAY AUGUST 2008
It is in the interest of regional ports to
enter into carefully considered contracts
with lines where significant investment
outlays are necessitated, lest the result
is unused port capacity and related
unmanageable debt
FINANCIAL ACCOUNTING IN CARIBBEAN PORTS I
assets, accounting adjustments related
to prior periods as well as current year
operations, in the main. A conglomer-
ate recently reported a profit which, on
close examination, was due to gains on
the sale of certain assets brought to the
income statement.
As reported by the 'Observer', the
Port Authority of Jamaica showed a
net surplus of J$1.76 billion, but this
included J$1.56 billion attributed to
investment property fair value adjust-
ment (following IAS40), J$682 mil-
lion from cruise facility fees and an
amount from property leasing and
management fees, implying a worrying
operational performance in both 2006
and 2007.
Concerned
Leaders of these and all commercial
entities have to be concerned about,
and do make decisions to enhance,
their firm's operations. This would
redound to improved shareholder
value. Accounting standards and rules
as well as auditors combine as messen-
gers to provide and verify the mes-
sage in the form of the annual audited
financial statements. It is not wise to
shoot the messenger simply because
the message is not good news.
Accounting for ports is sound in the
Caribbean and is an integral element in
the drive towards sound accountability
and corporate governance practices in
the shipping industry. u
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CARIBBEAN MARITIME I MAY AUGUST 2008 11
MAY
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or
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Port
SRemember
L i'AJ ILI i~ Ld u L'1 ~I u.I~Q jI 111 .11
Current cargo facilities comprises of the Captain David Cargo Quay with a length of
270 meters and docking capacity for two general Lift-On Lift-Off (LOLO) and three
Roll-On Roll-Off (RORO) cargo vessels. Water depth and approaches are 10.5 meters;
container storage capacity for 2,500 TEUs; fuel and water services are available.
Coming to You Is 2009
The Port of St. Maarten cargo facility is being expanded to match the growth In the
cargo transportation and handling business. An extension to the cargo quay wall will
be made by 260 meters and an additional 8400 square meters of container storage
and handling space will be added.
:Q::::: :G::: lUwdoauuWy
Prt of St. Maarten proudly serves as a transshipment hub for the North Eastern
*af It Is one of the most ultra modern and efficient cargo handling ports in
..t..he Caribbean catering to the major global cargo service lines.
Comay N.V.
o Faes
Poi nahe
A n till ....................
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. MAARTEM
St Maarten port traffic
A
YEAE
T"IAi
Cruise lines calling at St Maarten
* Aida
* Carnival
* Celebrity
* Classic International
* Costa
* Crystal
* Cunard
* Delphin Seereisen
* Disney
* Fred. Olsen
* Holland America
* MSC
* Norwegian
* Orient Lines
* Royal Caribbean
*P&O
* Princess
* Pullmantur
* Regent Seven Seas
* Seabourn
* Seadream Yacht Club
* Star Clipper
* VShips
* Waybell Cruises
* Windstar
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on~ mao expansio6
T HE P RT OFSt Maaten hs St M artenwill hve 6. 6ags 6san goer m n e St 66ate
ema re on wha is sai to be cris 6or 6.ilt in th6 not-at HrorHldn o pn.TeS
the~~~~~~~~~~ ~ ~ ~ ~ ~ ~ 6igs por ex666io prjc Caiba .0teedo 09wente MatnIln egsaieCuclgv
in th not-es Caiben isan' seon cris Aie ener serv 6ts aproa toteepnio ln n
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long an 61 6etr6 wie wil be metes *A6 fute 8,40 sqar me6tres
6~~~o containe 6trg and-- 666andling 6
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veslso 22,.0 r thtaecurnl rIn h oa
bi ng 16 il at I\ shpadsi uop.Te. -koTiia
new~~~~ criepeSscniee ecsay ad~ao anvl
The new tender jetty on the left of this
illustration is already in use. The finger
piers can accommodate up to six vessels
simultaneously with a draught of
5.0 metres
firm
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WVarrtml. Caribbean: Tel. +1 787 701 2288, F.u +1 787 701 2211
Wartsill Panama: Tel. -507 317 4100, Fax 507 317 6794
WmrtsilI Dominicana: Tel. 1 809 564 7184, |F +1 809 372 7968
WARTSILA
am....
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ofetoa llwvesfo ohuln opruiisfrrsdns
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6an us Th for of th S66 6ua Wat6* erfron
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in o m wa e fr n 9neigh6ourho6d6M a rin a
guestrooms,~ ~~~ ~ 6ulie as folos Th Pu-t 6ioPrsAuhrta
wd va reyone ussicuig slce IsadGoaYchngt
a9 a i o a dhuig 9otiu hoes comer 66vlo 666 opeat 6 9 6 mega
cil .6retin returns **6s an 6ah main as6 par o6 6h ne a
fee o6. grun WtratvtthtcneptsTemria a ilhv bu0mg
Inerto 9it th negbuho cain an66 6bou 6700 sqar 6ee *6.of.
that~~~~~ ~ ~ ~ ~ *upot 6oa *6.es rmoe rudflo eal
CAIBA MAITM *. MA -AGS 200 21*6 * ** 6
B' PANAMA CANAL EXPANSION PROGRAMME
Excavation of Pacific Access
Channel well advanced
'Caribbean Maritime' continues this series of
update articles on progress with the Panama
Canal Expansion Programme
Three of the initial construction
projects in the Panama Canal
Expansion Programme were in
progress within seven months of the
official start of what was being called
'the largest construction project on
the planet'. And by the end of 2008
the Panama Canal Authority (ACP)
expects to award the most impor-
tant contract, for the design and
construction of the third set of locks.
Work stipulated in the first contract,
for dry excavation of the Pacific Access
Channel (PAC) to connect the Pacific
Postpanamax locks with the Culebra
Cut, was on 31 March estimated to be
about 35 per cent complete. The Pana-
manian company Constructora Urbana,
S.A. finished the clearing of the 146
hectares in order to remove potentially
hazardous Munitions and Explosives
of Concern (MECs) that may have been
left behind following the United States
military presence in Panama. The
company has excavated and removed
1.9 million cubic metres of materials,
mainly from Paraiso Hill, during the first
three months of this year.
The Mexican company Cilsa Minera
Maria Panama received notice to pro-
ceed to implementation of the second
contract of the Pacific Access Channel
.~ ~fl
,Ig.fl
Work in progress at Paraiso
Hill on the first phase of the
Pacific Access Channel
Excavations made by Cilsa Minera
Maria Panama as part of the second
Pacific Access Channel contract
. I
i' FOREIGN PORT MANAGEMENT
Iak1 -0 :
II
ffutulf)luIf
.j , tI: *l-
III
hA
.::: m"" ::...
we _
---.4K -
.--*
NN*.T
or over 65 years the team atl he
Shipping Axr-ialiiin of .irnaica has
pro%-ded a hi.,hh il.lied cost
L'iI.tivL wvjrkltLeiL in the Port of
Kingston. Al ihe same lime, we drive
to ensure the socio-economic
development of out member
companies, our employees the
jamaki-an port, the shipping industry
and the nation at large.
We've also expanded our funcions to
include the provision of a wide range
of information technoloy and
communKiation series through Pkil
Computer I d, Moe recently, a
Canine Division has been set up as a
service to members and exports to
detect illicit drnus and contraband.
These nerw de'elopmnenv5 .-re
evidence of ou commitment to the
modemisation of the Pad of Kingston.
I,,'- 1ipI r iass aoCIa tiio ibamaica
4 FourthAenue, Newpott West.
P.o. t K 1050, C.S.O. Kil rln, jam.ik.a
Tel:t876a 92-491, 97-01 17
Fax:1876) 923-4321, Email: saj@jamporst.comw
I k"
4U q,
Sh SUR IN AM E
Sur imame port expansion
will benefit economy
voum htr oflessevr for theo said Mr Castelen "ewn
By Ivan Cairo
In the midst of a major
rehabilitation and
expansion of Nieuwe
Haven port, Suriname's
port authorities report an
increase in container han-
dling for the seventh con-
secutive year. For imports,
company statistics indi-
cate a rise from 16,796
teu in 2001 to 35,088 teu
in 2007. Exports reached
10,954 teu compared with
3,379 in 2001. Breakbulk
imports, however, showed
a decline from 310,254
tonnes in 2001 to 229,896
tonnes in 2007. Breakbulk
exports were down from
29,265 tonnes in 2001 to
11,656 tonnes in 2007.
"These statistics show
certain growth in the
Surinamese economy and
development of the Nieuwe
Haven Port," said Guno Cas-
telen, director of commercial
affairs, planning and devel-
opment. He said that, while
consultants had projected
cargo growth of two per
cent annually, the target of
handling 40,000 teu in 2008
had already been reached.
"We have realized a
tremendous growth in the
port and currently we have
to handle more cargo in the
same allotted time and in
doing so we have to operate
more efficiently."
With plans under way to
deepen the Suriname River,
Mr Castelen expects more
Nieuwe Haven port, espe-
cially as significant projects
in agriculture, mining and
other sectors are to com-
mence. These activities
would lead to more cargo
being forwarded to the port
for processing, he said.
"We expect more cargo
ships, but at the same time
we don't want these ves-
sels to lay too long at the
docks and therefore have
to increase our processing
capacity and efficiency."
In order to increase
capacity, Suriname Port
Authority is negotiating with
to create jobs for the local
communities and boost
economic activities in that
region."
Bauxite
Meanwhile in anticipation of
future bauxite mining activi-
ties in West Suriname, the
port management is seeking
to take over the port facili-
ties in Apoera managed by
state-owned mining com-
pany Grassalco. According to
the port official, discussions
with the authorities on this
matter have already started.
For the West Suriname region,
Container development import containers in teus
Nieuwe Haven year 2001 t/m 2007
3000o
1000
CONTAINER develop
12000
1000
800
600
400
200
OEXPORT 3379 4390 3810
counterparts in neighbour-
ing French Guiana.
"We are looking into
the possibility to develop
industrial sites and industrial
activities around the future
port in the Albina region in a
bid to prevent migration of
people to the French side,"
1111
26.5 2 1..7. 28620
pment export containers
6745 9136.5 1049.2 10
the focus is on spin-ol
ties from the mining s
Mr Castelen said reha
tion and expansion r
at the Nieuwe Haven
were continuing "prc
sively". This project, e
mated at Euros 33.25
is being financed par
the European Union. The
entire port is undergoing a
major overhaul and docking
facilities will be expanded
by 80 metres. The expan-
sion projects also include a
new reefer station, power
plant, container inspection
and repair unit and industry
zones.
Projects
At the same time, several
other development projects
are being implemented that
will cost a total of US$ 60
J3588 million. Among other things,
Mr Castelen referred to the
rehabilitation of the Nick-
erie Port, construction of a
Cruise ship facility, an impact
study on deepening of the
Nickerie River and develop-
ment of industry zones near
the main port in Paramaribo.
96 I These additional projects
will depend, among other
ffactivi- things, on the securing of
ector. suitable financing.
abilita- Mr Castelen said the
projectss National Port Authority was
Port enabling itself to absorb the
)gres- growth in various economic
sti- sectors as it positioned itself
million, to facilitate growth in the
tly by economy of Suriname. m
28 CARIBBEAN MARITIME I MAY -AUGUST 2008
I^nf I g1 i^ i I 9lln f il l9 n9^
I 9 I CUBA9
US$ 250m plan0to transform
D UBA POT is neoitn with fo sua an cmn .l acon for abu 30 pe cen 00
th Cua goenmn to ines The lags pot in Cub are San 00t emlymn an grs 0domestic
$250 mii~f llio~fn 'in onetigthor t tCTBf^^^ 8iMago aaaadCefegsi ht pout
por 00. Lar -e of Cub Nes 000esio in th ProfHvn. hadcurny anng n e po-
Cua' pots reprt tha a fail- Caiba eta Ameica Ato n manl in al-icusv resrtsin eac
ity 00ud 0.s bee cm isoe.0 thr ar 0 pot in Cub inluin aras At on pinCbwntafe
Maril 00i s 24 mi s wst of H 16 eigt m r p s c bt e d of 0
N^^^ fego~tfiiationsare be~ti~ing atce uatn hnlsbuksga n hol h U marob ifei
- - -g agiulua item obai approve
Cubanport0 could 00. .0cnsoidaiab ea0i0
Cuba, but Washington is being lobb0.i
and .9 9 transipment point frcro9 by 91rm 9tates to ift he Vstrictions so
0.0y can 0upply Cuba's markets.
into and out of the US Cubans with access to hard currency
Shul 00- -- -- embar-go end Maie nia 00.ea handle suar ru an 0000e icuig aaa Mxc n
cou 0 ^0 .~ ld sev 0. a con sol idation iandmolase s.heDo inca Rpuli.
Soie Uno in 198 an th do z pouato .f1,328 0. Fo decade00000s
d^^ ^
400 shp a year in 0.s hedy but by arkyexors
200 th volum had -elneo onl Dept th emaro Cub is.
10,00 0.ne 0r s four per cen of exeiecn siniicnfreg
Th Mae chane is 5 0 t60 ft mor prvtescore poyet
000000EA MAITM 0 MAY -AGS 020008* 0
I9
't3'
it[
John Fernandes Ltd.
EXPERTS IN THE FIELD OF WAREHOUSING & CARGO HANDLING.
* Of-port container terminal
* Increased warehousing
*A large ransportalion fleet
-Six Superstlac s torgreateefrlliency in
handling containers
- An extended pier allowing two shtips ro be
discharged simridlaneouly
1 1 v--p
LU
II
IANA
LkGhM
......
B' CSATRAINING
CSA members can benefit
from collaboration with
Puerto Rican university
The Memorandum of
Co-operation signed in
October 2007 by the Carib-
bean Shipping Association
(CSA) and the Pontifical
Catholic University of
Puerto Rico (PCUPR) in
Ponce allows co-opera-
tion and collaboration in
a number of areas. One
of these is the establish-
ment of new training and
educational programmes
for CSA members and
affiliates.
According to Jaime L.
Santiago Canet, Dean of the
College of Business Admin-
istration, the PCUPR has a
strategic alliance with Maine
Maritime Academy (MMA),
one of the leading maritime
colleges in the United States.
This alliance was established
in 2006. The CSA will also
benefit from an alliance
between Maine Maritime
Academy and PCUPR.
The Pontifical Catholic
University of Puerto Rico
offers degree and non-
degree courses for CSA. This
includes continuing educa-
tion, professional certifi-
cates, master and doctoral
level degrees.
Diploma
Students registered as con-
tinuing education courses
obtain a diploma at the
end of the course. Those
registered in credit granting
courses can obtain academic
credit towards the profes-
sional certificate, the master
or the doctoral programme
offered at the Ponce Campus
of the PCUPR.
Courses can be taken in
different regions or areas via
video conferencing originat-
ing from the PCUPR, says Dr
Santiago.
For more information,
contact Dr Santiago Canet,
Dean of Business at the
Pontifical Catholic University
of Puerto Rico, at: jsantiago@
email.pucpr.edu m
oI.DTOU
I I
nio
B' PORT SECURITY
High cost of combating terror
By Stephen Bell
The fight against terror- now commonplace to have
ism is a global one in not a person but an entire
which the member coun- department dedicated to
tries of the Caribbean are security practices.
quite intricately involved. Terminals in the Carib-
We in the shipping indus- bean continue to invest in
try are acutely aware of updated technology and we
the fact that, because of now note terminals using
our close proximity to hand-held technology to
North America, terrorists manage the discharge proc-
are likely to see Caribbean ess for both ro-ro and lo-lo
ports as a good point from operations. Stackers are
which to inflict havoc on fitted with mobile display
the USA. units for immediate record-
It has also been exten- ing of containers moved by
sively documented that the these machines. Terminals
threats we face today are are now monitored by
quite different from what closed circuit television and
we experienced 10 years personnel have to display at
ago. In our case, ships can all times proper identifica-
be viewed as a platform for tion to enter secure areas.
attack or as a weapon itself. We have also seen the instal-
Faced with this and other lation of gamma ray scan-
The ports of the Caribbean are now
faced with the challenge of 100 per
cent scanning. How can our small
countries finance this cost in addition
to all the other requirements that we
have to maintain?
realities, the countries of the
Caribbean have to remain at
the cutting edge of security
technology, even as we try
to remain competitive in
this global market. To do
this, we have to continue
to develop the infrastruc-
ture of our ports as well as
enhance our technology to
keep pace with this ever-
changing industry. Given
the catastrophic events of
11 September 2001 as well
as other terrorist attacks, it is
ners for containerised cargo.
Despite all the Region is
doing, there is still concern.
The Caribbean is made up
of small, poor countries
trying to keep pace with
the demands of buying
extremely expensive tech-
nology for security purposes
or otherwise face the reality
that ships and cargo pass-
ing through our ports will
not be allowed to enter the
United Sates. Here we are
talking about some 360
Regional ports, 95,000 miles
of coastline, 25,000 miles of
navigable waterways and
4,000,000 miles of exclusive
economic zone. Given these
numbers and our relatively
weak economies, we must
ask whether this is an
equitable situation?
Challenges
How does the USA, given all
the recent regulations and laws,
begin to secure its borders?
Can this be done effec-
tively, taking into considera-
tion such challenges as:
* Limited crew with a focus
on safety of navigation and
cargo operations
* Broad range of ports and
routes with irregular fre-
quencies
* Broad range of cargo types
with potential for terrorist acts.
The ports of the Caribbean
are now faced with the
challenge of 100 per cent
scanning. How can our small
countries finance this cost
in addition to all the other
requirements that we have
to maintain? To say this is
an onerous task is a gross
understatement. And the
costs involved are having a
stifling effect on the econo-
mies of our countries. It has
been said that, unless new
technology is developed
within the next five years,
the 100 per cent scanning
will have a direct impact on
world commerce. It has also
been pointed out that, aside
from the acquisition and
operational cost of expen-
sive imaging equipment,
technical and infrastruc-
ture shortcomings mean
that efforts to line up and
scan more than 11 million
USA- bound containers per
year will lead to crippling
congestion at ports and
will actually force shippers
to spend more money on
inventory. The question that
remains unanswered, but is
whispered in the corridors
of the global market, is what
will be the impact on world
commerce if other countries
respond by also demanding
that all export containers
from the United States be
scanned? What happens at
that point?
The question facing the
Region is how can we afford
to pay for the new security
measures and, more criti-
cally, how would we finance
the maintenance cost of this
operation?
Concern
This is of grave concern to us,
because some Caribbean
countries are so small they
could perhaps fit inside some
container terminals around
the world. Some are so small,
their gross domestic product
- the total amount of goods
and services produced is
less than the corporate budg-
ets of some companies in the
North. Yet we are expected to
meet the same requirements
and standards and to pur-
chase technology at the same
34 CARIBBEAN MARITIME I MAY -AUGUST 2008
price with basically the same
terms and conditions as the
rich industrialized nations.
In the Caribbean we
might not have the equip-
ment, but we do believe
that an important part of
the security machinery that
seems to be overlooked is
the training of our employ-
ees. Training remains a
major concern of the CSA
and, like many before him,
our current president, Fern-
ando Rivera, has made this a
priority of his presidency.
* We must continue to
develop our human resources
* We must continue to train
our people so that they are
as effective as possible
* We must continue to train
our employees so that they
can deliver efficiencies and
fully exploit the potential of
the systems and equipment
in which we have invested
so heavily
* We must continue to
increase their knowledge
and hone their skills so
that we get the maximum
returns on investment. Even
if we have the best equip-
ment in the world, if we do
not know how to operate it
efficiently then it is of little
use to us.
This matter of human
resource development
seems often to be pushed
on to the back burner. This is
a mistake. If our employees
are properly trained to be
more aware, more in tune
with what is required, note
what is out of place and
what is not being done cor-
rectly, then we are ahead of
the game.
Aware
The CSA is aware of this
and through our training
programmes as well as
working with our regional
partners we continue to
expand the various training
options that are essential to
achieving the highest level
of efficiency and excellence
in service.
The CSA and the regional
maritime sector remain
aware of the challenges
PORT SECURITY I
that are ahead and we are
striving to meet them. The
concerns are not only about
security. There are trade
implications as well. Minis-
ters of Commerce must have
discussions with Ministers of
Transportation. There must
be ongoing discussions with
Caricom to seekfinancial as
well as technical assistance.
Integral
The transport industry is
vital for many countries in
the Caribbean. If the idea is
to combat terrorism globally,
then it is imperative that we
come together and, more
importantly, work together, n
CARIBBEAN MARITIME I MAY -AUGUST 2008 35
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36 CAIBA AIIEIMY-UUT20
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00 0ARIBB0A00MARITIME- I00A00-IU'UST92F0F F7
iN NEWSMAKER
David Harding accepts
chair at Barbados Port Inc
CSA Past President
David Harding is
again in the NEWSMAKER
spotlight. He has been
appointed chairman of
Barbados Port Inc. His
appointment took effect
on 11 March 2008.
Barbados Port Inc oper-
ates and manages the Port
of Bridgetown as a commer-
cial enterprise
David Harding brings a
wealth of knowledge and
experience to the post. He
has been the longest-serv-
ing president of the Ship-
ping Association of Barba-
dos, having served three
terms as president. He was
President for 11 of the first
25 years of the Association.
No stranger to his new
portfolio, David Hard-
ing was a director of the
state-owned Barbados Port
Authority during the politi-
cal administrations of the
Barbados Labour Party (BLP)
between 1981 and 1986
and the Democratic Labour
Party (DLP) in 1989-1994. In
fact, he was a director of the
board that presided over the
rationalisation of the Bridg-
etown Port in 1991-1992.
As he recalled in an exclu-
sive interview for 'Caribbean
Maritime' last year: "I was
one of the architects of the
rationalised port along with
the then and still current
CEO Everton Walters and
the late Edmund Harrison,
who was the chairman at the
time."
Immediately following
that rationalisation pro-
gramme, the Port of Bridg-
etown won the Caribbean
Port of the Year Award. In fact,
the port went on to win this
Region-wide competition six
times between 1993 and 2005.
Career
David Harding is a Carib-
bean authority on maritime
transport. He started his
career in shipping in 1966
as a clerk with DaCosta and
Musson Ltd, part of the Bar-
bados Shipping and Trading
(BS&T) conglomerate. Three
years later he was appointed
operation manager at the
Barbados office of Book-
ers Shipping, of Liverpool,
and in 1971 took over as
operation manager at the
Bridgetown office of Ocean
Trading UK Ltd. He served as
master stevedore (in training)
with H.V. King Stevedoring
Ltd, stevedoring manager and
senior director of the Niblock
Group of Companies, a
Barbados concern, before
establishing his own firm,
Sea Freight Agencies (Barba-
dos) Ltd, in 1988. Sea Freight
Agencies was to become one
of the most successful liner
agencies in Barbados and the
Caribbean.
David Harding has had
extensive hands-on experi-
ence and training in his rise
through the ranks of the
shipping industry. In his 40
and more years in the busi-
ness, he has seen it all and
has done most of it. He has
seen the shipping industry
in his own country evolve
into a relatively efficient and
sophisticated subsector of
the national economy.
Visionary
As President of the Carib-
bean Shipping Association
from 1997 to 2000 he dis-
played the kind of visionary
leadership that Barbados
Port Inc will now enjoy. It
was on David Harding's
Presidential watch at the
CSA that the annual CSA
exhibition Shipping Insight
was established. In fact, he
was the first to grasp the
new concept proposed
for the CSA website and,
through capable leader-
ship, got his colleagues to
understand and support an
initiative that ultimately saw
the CSA establish one of the
most successful member-
ship association websites in
the Region.
In acknowledging David
Harding's appointment as
chairman of Barbados Port
Inc, CSA President Fernando
Rivera said the decision that
had led to this was "an inspired
one". The letter from the CSA
President said, inter alia:
"The decision to appoint
you to this office is an
inspired one. Your worth
and capabilities are well
known in the Caribbean
Shipping Association, having
led the growth of this Asso-
ciation, as President, from
1997 to 2000. We are there-
fore confident that your vast
knowledge of the shipping
industry and the wider Carib-
bean will similarly stimulate
development and growth in
your country." m
38 CARIBBEAN MARITIME I MAY -AUGUST 2008
NEWSBRIEFS A
The 15-country Carib-
bean Community (CARI-
COM) will begin negotiating
a new trade and aid pact
with Canada by mid-2008.
Canada has urged CARICOM
to begin discussing updates
to the more-than-10-year-old
CaiibCan agreement. Cana-
dian P ime Ministei Stephen
Harpel is said to have pro-
posed an aid package worth
US$600 million over 10 years.
Caiicom should be ieady
to begin talks in June aftei
completing a trade and aid
pact with the EU, the bloc's
secretaiiat stated. Caiib-
bean negotiators have been
holding informal talks with a
Canadian parliamentary team.
The Caribbean-Canada Trade
Agreement known as (."CAR-
IBCAN"; is a Canadian govern-
ment programme, established
in 1986. The agreement aims
to promote trade, invest-
ment and provide industrial
cooperation through pref-
eiential access of duty-free
goods from the countries of
the Commonwealth-Carib-
bean to the Canadian mai ket.
Features of the agreement
include: seminars for Cai ib-
bean businesspersons to
learn about developing
their products in the Cana-
dian market; pilogiamme to
expand export capabilities by
Caribbean businesses; and,
the assistance of the Canadian
Depai tment of Industi y and
Technology in the Region for
regional trade commissioners
with the aim of trade promo-
tion efforts to the Canadian
mai ket.
T he Meia goenmn was p 21. Thi por wole the ke to a ne
decrbe as th lares inrsrutr Am rc' herlad Cotinr SfSom Asi
o'ject in tht utrys hs1.tr1't. The countSry o ld be dIicg n Mos aCli-
cold[i ~ trasfr theill farin v] illage Iof Punta IFrom : thr they wou~l'ld'emoe I by'I I railto=
BBl.' Hlllt l~lll'llI ai 1HBn t i lEB lIfi i111t''d ooJ
billion The pla is for it to be co plte by su me 2009.
gAnSIii[.. intiPi*
^^^uI^E^^mS.-. 55* -----*-- -S -- SOS^^^^^tl3^B^^^^^^^^
S **S S S .5 5 55. *.0 55* S -- S^U~m^^^^^^^^^
S *S. S SS* S S**SS gee^^^^^^^^^^^^^^^^^^^^^^^^^
New port for T&T
Trinidad and Tobago's istate-owned' National Eneigy
Coi position ,INEC has begun consti action of a S105
million poi t to sei vice tlihe Essai Steel HBI and downstream
plants, as well as the Westlake Polyethylene Complex Both
plants will ble located at Savonetta, on lands foi meily owned
by Caioni 1975 Limited The hailboUl and dock which will be
located south of Point Lisas is expected to be completed by
the last cIual tel of 2009 The annual tuli novel at the newv dock
is expected to be about foili million meti ic tonnes of non oie
to be used by Essai
The Port Authority of
Jamaica's i.PAJ.) debt
burden is repoi tedly "ovel-
poweiing its balance sheet"
and the expectations are
that its long-term loans will
increase 46 per cent, fiom JS
21.8 billion to just under J$
32 billion. Long-teim loans
climbed from J$ 13 billion to
J$ 18 billion at March 2007.
According to the PAJ, added
liabilities this year were
for the most pai t linked
to the Falmouth ci uise-
development project. The
PAJ plans to refinance USS
143 million (JS 10.15 billion)
of the loans on its books
this year by either leplace-
ment of current debt with
cheaper loans, or extending
the maturity profile of the
debt on its books. Last year,
Kingston's throughput fell
to 1.8 million teL, from 1.98
million the previous year.
The PAJ credited this decline
to business cycles and that
most ports at some point
will experience a reduction
in business.
C %RIBBI AN N1 %III I INII %1-1 i -0 .1 NI A11-01 39
B' HAZARDOUS MATERIALS
In the name of safety,
give that information
By Harry Lux
THERE IS AN old saying
that shippers have
used for years when deal-
ing with carriers: "I never
needed to furnish my last
carrier with that informa-
tion."
When do they use that
line? When the carrier asks
for the full hazardous mate-
rial shipping information,
required to legally ship their
products.
Carriers realise that ship-
pers generally are not resist-
ing the furnishing of the
information just to save time
or money. In many cases it
is the result of some carriers
and/or freight forwarders
Other contributing
factors may be that some
governments do not have
their own regulations for
shipping hazardous materi-
als or the staff to enforce
the international regula-
tions. Look at your own
government today. Do you
have rules governing haz-
ardous material shipments?
Who regulates a hazardous
material shipment travelling
your city streets or airports
or seaports? What rules do
they follow and who audits
for compliance?
Often, governments
who do not have their own
regulations fail to realise
Often, governments who do
not have their own regulations
fail to realise they need to be
enforcing the international
standards for shipping
hazardous materials
who, over the years, had
accepted hazardous material
shipments without the cor-
rect paperwork, placarding
and even loading compat-
ibility.
Yes, there were and
probably still are a few who
saw profits as more meaning-
ful than compliance.
they need to be enforcing
the international standards
for shipping hazardous
materials.
Non-compliance therefore
is a combination of factors,
such as complacency, lack of
knowledge, lack of regula-
tions and lack of enforcement
as well as monetary gain.
It is a new world since
terrorists started using many
of our basic hazardous mate-
rials as 'weapons of mass
destruction'. To most ship-
pers, these basic hazardous
materials are just commodi-
ties they sell or use in their
daily lives. To terrorists, they
may be the ingredients to
create disastrous concoc-
tions. That is why we need
the regulations and why we
must enforce them.
Concern
Another concern is for per-
sons handling hazardous
materials during the ship-
ping process. If something
spills or leaks, how would
the responders know what
to do if they did not know
what the material is or how
to find out what chemicals
it is made of? Again, the
regulations set the ship-
ping requirements and,
like it or not, we would not
have any control without
them.
Whenever shipping haz-
ardous materials, shippers
are required to describe
the hazardous materials
on a transport document
which contains the follow-
ing basic information:
1 Name and address of the
consignor and consignee.
2 UN number. Dangerous
goods are assigned UN
numbers according to their
hazard classification and
their composition
3 Proper Shipping Name.
Shipping names in the
Dangerous Goods List or the
Hazardous Material Table are
of the following four types:
(I) Single entries for well
defined substances or arti-
cles (for example, UN 1090
ACETONE)
(11) Generic entries for well
defined groups of sub-
stances (for example, UN
1133 ADHESIVES)
(111) Specific NOS entries cov-
ering a group of substances
of a particular chemical or
technical nature (for exam-
ple, UN 1987 ALCOHOLS,
NOS)
(IV) General NOS entries cov-
ering a group of substances
of one or more hazard classes
(for example, UN 1993 Flam-
mable Liquid, NOS).
4 Hazard class. Hazardous
materials are assigned to
one of nine hazard classes
according to the hazard or
the most predominant of
the hazards they present.
40 CARIBBEAN MARITIME I MAY -AUGUST 2008
HAZARDOUS MATERIALS I
Some of these classes are
subdivided. For example,
Class 3 for flammable liquids
or Class 2.1 for a flammable
gas, 2.2 for non-flammable
gas or 2.3 for toxic gases.
5 Subsidiary (secondary)
hazard class or division
numbers) when assigned.
6 Packing group. The pack-
ing group to which a sub-
stance is assigned is shown
in the Dangerous Goods
List or Hazardous Material
Table where applicable and
is assigned based on the
degree of danger it presents.
7 Other supplemental
information that may be
required includes technical
names for NOS and other
generic descriptions. Empty
uncleaned packagings which
contain residues shall be
described as Residue Last
Contained before or after the
proper shipping name. If the
goods to be transported are
marine pollutants, the goods
shall be identified as Marine
Pollutant. And if the danger-
ous goods to be transported
have a flashpoint of 60oC or
below, the Minimum Flash-
point shall be indicated.
8 The total quantity of haz-
ardous materials covered by
the description by volume
or mass as appropriate of
each item of dangerous
goods bearing a different
Proper Shipping Name is
also required.
9 The shippers' hazardous
materials declaration form
(transport document) shall
also include a signed certifi-
cation that the consignment
is acceptable for transport
and that the goods are
properly packaged, marked
and labelled and in proper
condition for transport in
accordance with the regu-
lations. Whoever packed
or loaded the hazardous
materials into any container
or vehicle is required to
provide a signed container/
vehicle packing certificate.
10 Don't forget the Emer-
gency Response information,
starting with a complete and
accurate Shipping Descrip-
tion, Emergency Response
Procedures for Ships (EmS
guide), 24-hour telephone
numbers and Material Safety
Data Sheets (MSDS).
Note: Always refer to the
regulations for full descrip-
tion requirements as they
may differ by mode of trans-
port and/or specific govern-
ment regulations.
So remember the next
time a carrier or freight
forwarder asks for addi-
tional information about
hazardous materials, they
are doing it to make sure
you are complying with the
regulations. Not only will
this help defer penalties, but
it will ensure the safety of all
those handling your ship-
ment throughout the supply
chain. Shipping hazardous
material safely takes team
effort. And for these ship-
ments, that team is the ship-
per, carrier and consignee.
Don't furnish excuses,
furnish the required infor-
mation. m
CARIBBEAN MARITIME I MAY -AUGUST 2008 41
Fast, Dependable Transit
Accurate Documentation
Dry and Refrigerated Containers
Machinery & Rolling Stock
iSeaFreight
/. --. r-
MIAMI (305 592-eCo
US Geral Agents: Seftreitg Agencin USA. Inc.
Web i5t sneItuitagencim.com
JACKSONVILLE PORT EVERGLADES ARUBA BARBADOS BONAIRE
CURACAO GRAND CAYMAN GRENADA GUYANA HAITI JAMAICA
MARGARITA PANAMA ST LUCIA ST. VINCENT SURNAME
TRINIDAD VENEZUELA
.... .. ....
The No;.td
III 0
10- AK1.1ed
Th Uhrad
sa -
DISTI^NGUSE USS hSA we^fiB^c~^^^fflcomed a number of jTiBARBADOS^
ditnuse uet ois3t Anua Genra Meein in PRSDET Gyee S il
San Uto DomijH ngoEHrom igtIoJua n PerV
^^^B!ffBayonet, representfingthe Chief otff (Navy
U^^^^^*~i^^ U U U UU I * U^^^P^^^^^^^^^^^^^^^^^^
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*JMIC' VIC PRSDET Uongs to be elce head
in f s b i MFidauthsSiedi
UU*^^^ U ^i-TM i^
Bacelr' dere i. Inentoa Buies.H scurnl
the UVice PresidfUAgncias NnvilrjwB ad s
PRGRS IN HAITI
Haiti, u: 11 CSA on ..........
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.^^^^^ .........-^^^^^^^^^^^^^^^*i*?~~iwT"7iswsn fn~lJj^
positiveB develpment inJi^^^^^^^^^^^^^'S^^ZS^Z3lS^^^^^^^^^^^^^^^
the shBippingindustry in0
his^^^^^^^ i .^^^KBhomeland.BB^^^^^^^^^^^BMH^3^^^Bi^^^^^^
A^^*^^^^ SEON TERM:^BCf~fiTSfMK^^^^^^t- Re-elected^B^^H^-^^^^
PresB^^^ident' of the Shippingid^^^^^^^^t^^^^^^^^H^^^^B^K^^^^^^^
Association^^B ofy~nfjnfBiiMw^^^^^^^Bi~^^^^^^^^^n ^Hl^ Trinidad BI4^^^^
and^^^ TobagoB forJfjiTf7iJ^^^^^^^^^^^^^^ a^^^^^^^B^^ second^^^Bl^^^^
con^Ksecuiv trm, Haydn Jones A GIFT FOR THE OCC^ASIN The Doinican Republic's^^
w^^ ^ill7bethehot rei deTTM n~nt whn ecetay f tat, dd Matiez(riht, eadofth
the CSA holds fits3thAnulcunr'sCnrefr xotf and ^^^BBi^Bi^^~iB^^^^^^^^^^^B^^ Investments, receives theCSA ^
Generul^M eeting, ^^^d^t^^^|^f Conferene Decantr from CA Vice Pesident arlos Uriola aftr he ha
and xhibtionin ort f Spin i deliver th keyoteaddrss a theopei ng ceremonyof
Octobiery2iiOf'^O8 ^^^^Bil~i^^^the 37th Annual General Meeting^^
44 CARIBBEAN MARITIME I MAY -AUGUST 2008^^^^^^^^^^^^^^
THE HUMAN FACTOR 1
By Burnett B. Coke
THERE IS AN old adage
that "whatever doesn't
get measured doesn't get
done".
Today, more than ever,
human resources (HR)
development, as a strategic
partner, needs to prove the
effectiveness as well as effi-
ciency of its functions. This
can only be done through
the diligent development
and application of metrics
- systems of measurement
- and processes to evaluate
HR operations, and more so,
their impact on the maritime
organisation.
Improving value
The first step towards
improving HR value adding
is to understand the differ-
ence between effectiveness
and efficiency. Efficiency is
primarily the ratio of inputs
(stevedores/staff) to outputs
(TEUs) and the cost per unit
moved. Effectiveness is the
extent to which HR meets
the goals of the organisation
and satisfies the needs of
the stakeholders. It is possi-
ble for HR to be effective but
not efficient, or efficient but
not effective. It is now neces-
sary for HR to prove that it is
both, concurrently.
A case for true
strategic partners
Measuring the effectiveness
of human resources operations
The process begins with
a thorough understanding
of the organisation's goals
and, thereafter, identifying
and measuring employee
behaviour and programmes
which are related to these
goals. The number of these
metrics should be enough
to ensure thoroughness, but
not too many to cause con-
fusion. In addition, HR must
avoid equating efficiency
and effectiveness with a
simple counting exercise. In
other words, it's not about
the number of stevedore
training programmes,
time to fill vacancies or the
number of applications.
Instead, HR should develop
and measure metrics which
give a holistic picture of HR's
impact on port viability.
The number of metrics is
contained solely by imagi-
nation, but the following
would prove beneficial for
adaptation:
1. Human capital return on
investment (ROI). That is, net
income/compensation costs.
Whereas it does not create a
direct correlation between
staff developmental input
and port output, it does give
a reference point for evaluat-
ing the return on investment
in employees. For a more
thorough understanding,
output should be com-
pared with historical data
to determine whether HR
programmes are influencing
port profitability.
2. Workers' compensation
costs/employee. That is, total
WC costs/average number
of workers. The use of cur-
rent versus historical costs
and absenteeism can assist
in evaluating programmes
designed to reduce work-
place injuries, illnesses and
turnbuckle accidents. Given >
CARIBBEAN MARITIME I MAY -AUGUST 2008 45
A' THE HUMAN FACTOR
the increasing vigilance of
state occupational safety and
health policies and inspec-
tors, HR will be placed in
good stead to bring signifi-
cant value to the bottom line.
3. Cost per hire total
expenses of recruitment and
selection/ number of new
hires. This metric is used
to evaluate programmes
advertising, recruiter costs,
interviewing manager and
support staff salaries, web-
sites and so on.
4. Turnover rate. Using
industry averages, HR can
assess the effectiveness of
staff retention programmes
within the regional ports.
Often undervalued, the real
cost of high turnover includes
Simply stated, HR needs to introduce
and/or expand the measurement of
output and rate of output.
to automate, streamline or
contain recruitment costs.
The total expenses in the
recruitment process include,
but are not limited to,
the loss of skills, the cost of
replacement (up to 60 per cent
of annual salary costs) and low
workplace morale as well as
reducing worker loyalty.
5. Training investment factor.
Total training cost/aver-
age number of employ-
ees. This metric measures
the level of investment in
worker development and
should be compared to
industry benchmarks or
organisational historical
data. Combined with the
human capital ROI, HR will
be provided with a better
picture of staff progress and
development: prerequisites
for port viability.
6. HR cost factor. This can be
done as the HR costs relative
to the total organisational
costs or relative to the aver-
age number of employees.
Either method will provide
data on HR efficiency and
should be compared to
benchmark ports to give a
wide picture of input versus
output.
Strategic
Simply stated, HR needs to
introduce and/or expand the
measurement of output and
rate of output. In so doing,
HR will continue towards
true strategic partnership on
the ports, thereby enhanc-
ing the efficiency and effec-
tiveness of regional ports. m
* Burnett Coke, human
resources, industrial
relations and conciliation/
mediation specialist, is
head of the Jamaican firm
Silverback Consultants
46 CARIBBEAN MARITIME I MAY -AUGUST 2008
A MATTER OF LAW Et
Seabed authority believes
in doing good by stealth
By Milton J. Samuda, LL.B.
As planet earth
becomes more
crowded and its resources,
once considered limitless,
become more and more
finite, man has sought new
frontiers for exploration
and exploitation. Outer
space looms the largest,
and the day will come
when 'ships' ply that new
'sea' and new rules and
treaties and conventions
will have to be written to
govern passage, trade,
commercial exploitation
and environmental pro-
tection. Yet, immediately,
right on our doorstep or,
more appropriately, our
seashore is that other
great frontier. Explored
for centuries yet still hold-
ing unexplored mysteries.
Ruthlessly exploited, yet
still able to yield new and
exciting possibilities for
its continued contribution
to the welfare of mankind.
The sea. The sea and the
riches of the seabed.
Against that seascape,
how many of us remem-
ber that our Region, and
Jamaica in particular, has
the honour of being the
seat of the International
Seabed Authority (ISA)? Do
you recall that the United
Nations Convention on the
Law of the Sea (UNCLOS)
was signed in Montego Bay
on 10 December 1982? Did
you know that on 21 March
1983 Jamaica became the
fourth signatory to UNCLOS?
Did we know that the
Bahamas and Belize joined
Jamaica among the first
10 signatories to UNCLOS?
Did you know that UNCLOS
came into force only on 16
November 1994, a year after
Guyana became the 60th
state to sign the treaty?
Pivotal
This Region, led by Jamaica's
then prime minister, Michael
Manley, played a pivotal
role in the negotiations and
lobbying that went into the
crafting of UNCLOS and the
establishment of the ISA.
When in 1994 the ISA finally
came into existence, it was
historically just that the
order in the exploitation of
the resources of the seabed.
Established as an intergov-
ernmental body, the ISA
- and its parent, UNCLOS
Despite the obstacles and
opposition, the ISA in its first
14 years has already made a
contribution to bringing justice
and equity to one of mankind's
final frontiers
Region and Jamaica should
become the seat of the ISA.
Interestingly, Fiji, the first
signatory to UNCLOS on 10
December 1982, also gave
the ISA its first and still serv-
ing secretary-general, that
great Fijian diplomat, Satya
Nandan, now enjoying his
third four-year term since
1996.
The ISA was the interna-
tional community's response
to a growing demand for
- have not been without
their share of controversy.
Although the remit of ISA
is clearly set out in Part Xl
of UNCLOS, it took a subse-
quent agreement signed in
New York on 28 July 1994
to settle the basis on which
Part Xl of UNCLOS would be
implemented. The agitation
for that 'implementation
agreement' was led by the
United States as it felt that
Part Xl in its original form >
CARIBBEAN MARITIME I MAY -AUGUST 2008 47
Bt A MATTER OF LAW
was inimical to the national
security and the commercial
interests of the US. Those
concerns remain. Despite
the entry into force of the
1994 Implementation Agree-
ment, two years later, on 28
July 1996, the US had not
ratified UNCLOS. A consider-
able lobby continues in the
US against UNCLOS and the
ISA, even in the face of sup-
port for the Convention by
President Bush. The US has
opted for observer status at
the ISA, but actively partici-
pates in the meetings and
sends significant delegations.
Despite the obstacles and
opposition, the ISA in its first
14 years has already made
a contribution to bringing
justice and equity to one of
mankind's final frontiers. The
principles of good govern-
ance and transparency have
been brought to bear on the
commercial exploitation of
the minerals in the interna-
tional seabed. Nothing dero-
gates from the sovereignty
exercised by nation states
within the limits of national
jurisdiction, but an interna-
tionally acceptable regime
now applies under the aegis
of this autonomous organi-
sation.
To be sure, seabed
mining activities have not
been 'unbelievable', but
that does not detract from
the importance of the ISA
and its role under UNCLOS.
The Convention specifically
recognizes the international
seabed and its resources as
'the common heritage of
mankind'. The ISA, backed
by its 155 member states,
has been entrusted with
the great responsibility of
managing that common
heritage and ensuring that
the riches reaped from the
international seabed are
divided not on the basis of
some ancient rule of 'first
to plunder' but on the basis
of agreed equity between
those who find and extract
and the rest of the interna-
tional community.
Equitable
The ISA is the Region's best
kept maritime secret. It is
a powerful international
organisation, operating
largely without the fanfare
and glare of publicity that so
often attend international
organizations of similar
reach. The Region not only
contains the seat of the ISA,
but also plays host to man's
combined determination
to manage the resources
of the seabed in a sustain-
able and equitable way as
the common heritage of all
mankind.
The Region and Jamaica
should be honoured to do
so. m
* Milton Samuda is a
partner in the Jamaican
firm of attorneys-at-law,
Samuda & Johnson
Fax to: +44 1206 842958 or e-mail your request to: publishing landmarine.com
48 CARIBBEAN MARITIME I MAY -AUGUST 2008
The ISA is the Region's best-kept
maritime secret. It is a powerful
international organisation,
operating largely without the
fanfare and glare of publicity
that so often attend international
organizations of similar reach
'I
Femu
-a I1
I.
9
CARIBRBF 10~yR
CL MARINE LIMITED (Caribbean Dockyard & Engineering Services Limitedj
Caridoc Complex, Western Main Road, Chaguaramas, Trinidad, West Indies
Tel: (868) 634 4127 29 Fax: (868) 634 4130 -* Email: info@'tdockyard.ciom
i. .'
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DIMEPARDS RINHM
DAMEN SHIPYARDS GORINCHEM
Member of the DAMEN SHIPYARDS GROUP ]b
Industrieterrein A, lirn,r. West 20 RO. Box 1
4202 MS Gorinchem 4200 AA Gorinchemn
The Netherlands
phone +31 (0)183 63 92 67
fax +31 (0)183 63 77 62
americas@damen.nl
www.damen.nI
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CARIBBEAN
MARITIME
No. 3 JANUARY-APRIL 2008
COVER STORY
16 Panama Canal
Work under way on Panama Canal expansion
SPECIAL FEATURES
4 National Shipping Associations
CSA to help strengthen national shipping
associations
5 Puerto Rico Shipping Association faces
a busy year
6 Shipping Association of Guyana to set up
permanent training facility
7 Education and training of workers is key
challenge for Shipping Association of Jamaica
8 SATT to be more inclusive; to expand
membership
9 Challenging year ahead for Shipping
Association of Barbados
10 Cruise
CSA fosters training and co-operation
in cruise sector
12 Caricom Single Market and Economy
Are we ready?And what does it mean for
Caribbean shipping?
19 Bigger Ships
Bigger ships, bigger ports in the Caribbean
and Latin America?
22 Ship Registration
One in four of world's fleet now registered in
CSA countries
24 Training
CSA in joint venture with Puerto Rican university
25 The Year Ahead
CMI expands to Eastern Caribbean
26 The Year Ahead
Ominous signs, positive indicators, optimism
28 Ports
Timely dredging can head off a financial storm
2_ IL M_
:%u
31 Liner Business
Quality leadership
the key to a successful liner business
33 Cartagena
Cartagena set to break records in 2008
38 Innovation
Carrier wins patent for 53 ft container
loading process
STANDARD FEATURES
2 Editorial
Plan for success
3 Message from the CSA President
35 Newsmaker
Grantley Stephenson receives national
award in Jamaica
37 Late News
41 Hazardous Materials
Make hazmat compliance your New Year
resolution
43 CSA News
46 The Human Factor
47 A Matter of Law
Sunken treasure: the next frontier
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 JANUARY APRIL 2008 1
CONTENTS .
V1 EDITORIAL
CARIBBEAN
MARITIME
No. 3 I JAN APR 2008
The official journal of the Caribbean
Shipping Association
4 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 2007-2008
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: lIan Deosaran
Group A Representative: Francis Camacho
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,
PO Box 1050, Kingston C.S.0, 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
Plan for success
The year ahead promises challenges that will demand concentration,
experience, skill and patience. However, the dark clouds will have silver
linings, and of that we can be relatively certain. Amid the difficulties and
trials, the uncertainties and fears, there will be opportunities for success and
there will be serendipity.
You owe it to yourself to meet the challenges with confidence and calm, relying
on your own good sense and on the skills, knowledge and experience of your col-
leagues, compatriots and the CSA. Don't be overwhelmed by fear; nor should you
be fearful of uncertainty. Rather, go boldly forward, secure in the thought that it
was not mere luck that got you to this point, but some ability and intelligence. Self-
confidence and a positive outlook will allow you to exploit the opportunities that
2008 may present, even in a sea of adversity. On the other hand, the twin obstacles
of fear and dismay will sap your energy and weaken your resolve to succeed. They
will blunt your innate ability to overcome, conquer and transcend.
Success in the year ahead will depend largely on how positive and responsive
you are; how quickly you respond to the challenges and opportunities that will
come your way. And if there is one thing you can be sure of: opportunities will
come. They may come intertwined with challenges and disappointments, but
there will be chances to make good and opportunities to score. Yours is the task to
seek and find such opportunities and to turn misfortune and adversity into jewels.
The theme of this issue of 'Caribbean Maritime' is The Year Ahead. You will read
of plans by the Caribbean's leading national shipping associations for 2008. The
similarities between them are obvious. They expect challenges regional reper-
cussions from global economic issues but the national shipping associations of
Barbados, Guyana, Puerto Rico, Jamaica and Trinidad all have positive plans for
development. Training and development of human resources are high on their list
of priorities for 2008.
The CSA looks to the year ahead with eager anticipation and hope. Indeed,
President Fernando's message, reproduced on an adjacent page, is encouraging
and underscores the CSA's role as an agent for change and a catalyst for develop-
ment. There are also positive signs in the cruise industry and, notwithstanding the
recent weakening of the US dollar to which many Caribbean currencies are tied
- there are expectations for growth in the year ahead.
So, start the year ahead by planning for success. Work with your people. Every-
one in your organisation is important. Sit down with your managers and supervi-
sors. Talk with your messenger and the gate staff. Make an ally of them because, if
you don't, someone else will. Start the process of planning for success by discuss-
ing not just the challenges and perceived problems but, more importantly, specific
strategies for achieving set goals. Then put a team together to plan for growth,
cost cutting and improved efficiency.
Plan realistically. Plan scientifically. There are many models that you can adopt
or adapt.
The year ahead could be your most successful year in business. But, you do
need a plan!
Mike Jarrett, Editor
2 CARIBBEAN MARITIME I JANUARY APRIL 2008
MESSAGE FROM THE PRESIDENT .
CSA has full agenda
for development in
the year ahead
This being our first issue
of'Caribbean Maritime'
for 2008, I want to take the
opportunity to thankyou
all for the support given,
not only to our two previ-
ous issues of this magazine,
but also to me as President
of the Caribbean Shipping
Association (CSA).
Without your help and
involvement we could not
have accomplished all the
things we did last year.
As we look ahead to 2008
there are many important
things that we must continue
to work at and new projects
that are necessary for the
continuous growth of the
CSA. During this year we will
be offering our members
the first academic courses
and training as a result of the
Memorandum of Co-opera-
tion signed last year with the
Pontifical Catholic University
of Puerto Rico. We will con-
tinue with our efforts to build
and expand our relationship
with other organizations in
the Region.
Regarding security issues,
there are a couple of things
on which we are concentrat-
ing our efforts and will con-
tinue to do so. We must assist
all CSA member territories
to get the necessary training
so that they can comply with
all the new security require-
ments. In this respect we
have met with the US Coast
Guard and a security confer-
ence, sponsored by the Coast
Guard and involving the
CSA, will be held from 8 to 10
April 2008 in the Dominican
Republic. The purpose of
this conference is to provide
a forum for the territories
within the Region to identify
principal problems, highlight
best practices and map out
security initiatives within the
Region.
This is a significant event
for the Caribbean, particu-
larly the smaller territories. It
will be co-ordinated by the
US Coast Guard 7th Region
in Miami, the San Juan office
and the CSA. During this
conference, a Memorandum
of Co-operation between
the US Coast Guard and the
Caribbean Shipping Associa-
tion will be signed.
Another item which I
consider the most important
is what the CSA is doing
and what we will do to help
all small ports in the Carib-
bean to comply with all
the security requirements.
During the CCAA Confer-
ence in Miami late last year,
this item was discussed and
CSA will be designing a plan
to accomplish this. The CSA's
General Council, meeting in
Jamaica on 21 January, will
discuss this and work should
start on this immediately
following that meeting.
Another item that we
have to work on in the year
ahead is the re-energising
of national associations and
the importance of re-estab-
lishing the CSA's National
Associations Committee.
The CSA has a full agenda
for the year ahead. It is all
about development and
improving the shipping
industry of the Caribbean.
There is no doubt in my
mind that we can accom-
plish these projects, with the
help of everyone.
May the year ahead be
one of happiness and good
health to all.
Fernando Rivera
President, Caribbean
Shipping Association
CARIBBEAN MARITIME I JANUARY APRIL 2008 3
WE
The next issue of "'Caribbean Maritime" will
M E be out in May 2008. So don't miss the boat.
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on t miss the boad Please contact Lester Powell at
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the shipping industry.
V0 NATIONAL SHIPPING ASSOCIATIONS
CSA to help
strengthen
national
shipping
associations
Bedrock that gives CSA stability
Fernando Rivera, Presi-
dent of the Caribbean
Shipping Association, says
he wants to help national
shipping associations to
strengthen their organisa-
tions so they can better
serve their local shipping
communities.
Mr Rivera was speaking at
the CSA's 37th Annual Con-
ference in Santo Domingo in
October during a meeting of
Group A.* He was respond-
ing to a paper delivered by
CSA Past President Ludlow
'Luddy' Stewart, himself a
retired ship agent.
In his presentation, 'Build-
ing the CSA, Strengthening
the Foundations', Mr Stewart
said national shipping asso-
ciations were the foundation
of the CSA. He described
them as the bedrock that
gave the CSA stability and
the energy that made the
CSA grow.
"They are the bridge over
which the CSA is able to pro-
mote and assist, at the local
level, development of the
Caribbean shipping indus-
try," said Mr Stewart.
Undoubtedly, it is in the
best interests of the CSA
and, indeed, all the peoples
of the Caribbean that strong
and viable national ship-
ping associations should be
developed and sustained.
The Caribbean needs
solid, professional
national shipping
associations, able
to initiate and
support projects
and programmes
for new develop-
ment, expansion and
growth while protecting its
membership and industry
standards.
This was how the CSA got
started in the first place. The
initiatives of the Shipping
Association of Jamaica in
the 1960s had caught the
attention of the shipping
communities in a number
of Caribbean territories.
The free sharing of informa-
tion between these ship-
ping communities made it
evident that a permanent
organisation of shipping
interests across the Region
would be a good thing.
The formation of national
shipping associations like
the Shipping Association of
Jamaica and the Shipping
Association of Trinidad and
Tobago, both in the 1930s,
had therefore been encour-
aged by the architects of the
CSA. The national shipping
associations were the foun-
dation on which the CSA
was built.
However, as Mr Stewart
noted, at the time when
the industry should be
working towards strength-
ening national shipping
associations there had
been a decline in these
efforts within the CSA.
In this regard, he
recalled that the
CSA's attempts
to develop the
national asso-
ciations had failed
when the National
Associations Commit-
tee, formed in 2002, finally
floundered.
"There is need at this time
for the CSA to establish and
maintain a programme to
build, enhance, strengthen
and develop national ship-
ping associations so that,
through these organizations,
the CSA can further its work
of Regional development".
The CSA Past President
proposed that Group A, the
'home'of the national ship-
ping associations, should
discuss the building and
strengthening of national
shipping associations in order
to develop them into efficient,
professional organizations
capable of dealing with the
demands and technologies of
the 21st century.
National
Associations
Committee
In his response, the CSA Presi-
dent said the General Council
would be looking to re-estab-
lish the National Associations
Committee. This committee
will provide a forum in which
executive directors, manag-
ers and secretaries of national
shipping associations will
meet (as a Standing Commit-
tee of the CSA) to exchange
information and help each
other to upgrade and expand
the services they offer to their
members.
The National Associa-
tions Committee will look at
common problems; current
systems and procedures;
and discuss collective strate-
gies where this can help the
local shipping industry to
develop.
Meanwhile, most national
shipping associations across
the Caribbean are complet-
ing plans and drafting strat-
egies for the year ahead.
*Group A (Ship Agents
and Private Stevedores)
is the CSA's oldest and
largest group
4 CARIBBEAN MARITIME I JANUARY APRIL 2008
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Age -ntco ittee
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NATIOAL SHPPIN ASSCATIN
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to exan membership5
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fo th Shppin P soito Pf wil Pe Pthe
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r@ CSME
Caricom Single Market and Economy
Are we ready? And
what does it mean for
Caribbean shipping?
By Sacha Vaccianna,
Shipping Association
of Jamaica
The Caricom Single
Market and Economy
(CSME) has been a topic
for discussion for some
time but questions still
persist. Why the CSME?
Why me? Why now? Why
bother?
For the maritime trans-
port community, the ques-
tions seem more pertinent.
After all, trade has been
taking place globally for cen-
turies without the shipping
fraternity having to give
much thought to the current
catchphrases of 'integration',
harmonisationn' and 'free
movement'. The Ansa McAls,
the Grace Kennedys and
the Goddard Industries are
exemplary Caribbean busi-
nesses, trading and expand-
ing, circulating personnel,
becoming household names
region-wide, apparently
with or without the facilita-
tion of ambitious machina-
tions like CSME.
After all, shipping just
happens naturally, doesn't
it? It is simply a question of
supply and demand eco-
nomics, right? Why don't we
just get on with the business
of shipping as usual? It is
easy to feel that shipping is
to industry and commerce
what water is to life, so why
bother? It's full speed ahead,
right?
Wrong. The CSME is
important for us all, at
individual, corporate and
industry levels. For the
Caribbean Shipping Associa-
tion (CSA), an appreciation
of this is critical if it hopes to
maintain its relevance as an
organisation.
Why the CSME?
With an uninspiring history
of attempts at integration,
the question of 'Why the
CSME?' seems justified.
Among its primary objec-
tives are:
full employment of
all the factors of produc-
tion within a region with a
cumulative population of
some 6 million (with Haiti, 14
million)
improved standards of
living
accelerated, co-ordi-
nated and sustained eco-
nomic development for the
whole region
increased intra-Carib-
bean trade
better opportunities
for businesses to penetrate
third country markets
increased economic
leverage and effectiveness
vis-a-vis third party states.
The Single Market, which
began in 2005/2006, seeks
to create a seamless eco-
nomic space. This will be
facilitated by the removal
of restrictions (legislation
or restrictive administrative
practices), the free move-
ment of goods and services,
capital, labour and the right
to establishment.
Proponents of the CSME
believe the creation of a
Single Market and economic
space will enhance the
region's ability to face the
obstacles of globalisation
and increasing liberalisa-
tion of trade. The CSME is
expected to provide the
The CSME will
involve the
harmonisation of
' investment and
incentives, create
-cmpetifive
services and in
many ways will
be the Region's
dress rehearsal
for globalisation
12 CARIBBEAN MARITIME I JANUARY APRIL 2008
region with a unique oppor-
tunity to prepare for more
efficient and competitive
production and trade within
a wider global environ-
ment, while capitalising on
synergies for production
and trade within our own
commercial market. In many
ways, it is the region's dress
rehearsal for globalisation!
As lofty as these ideals
may be, Caricom has
advanced in its implemen-
tation of the first compo-
nent. Admittedly there are
important outstanding
issues, including the imple-
mentation of the Regional
Development Fund, which
was instituted as a key ele-
ment in complementing the
establishment and imple-
mentation of the Single
Market by providing finan-
"* cial and technical assistance
to disadvantaged countries,
sectors and regions of the
)* *- community. Issues relating
to electronic commerce,
free circulation of third
party goods, the treatment
*", of goods in free zones and
similar jurisdictions as well
4 as contingent rights are out-
standing, but form part of a
built-in agenda for further
negotiations.
The Single Economy, for
its part, is scheduled for
2015, a change from the
initial target date of 2008.
Admittedly, a more com-
plex system to put in place,
the Single Economy will
involve the harmonisation
and co-ordination of various
policies including invest-
ment and incentives and
convergence in monetary,
fiscal and economic policy.
Among these will be the
introduction of a single cur-
rency with a single currency
authority. Ultimately, the
Single Economy is expected
to be the final stage of mon-
etary union for Caricom.
Why is it crucial
for us?
There is no denying that the
geography and size of the
Caribbean territories put us
at a disadvantage in terms
of global trade. There are
well known handicaps such
as trade imbalances, high
distribution and tranship-
ment charges, diseconomies
of scale when negotiating
freight rates with shipping
conferences, lack of reliable
and regular shipping serv-
ices and general inefficien-
cies in port operations.
Our scattered geography
places more emphasis on
air and maritime transport
in deepening our integra-
tion process and shipping
remains our major mode
of supply for international
trade. In fact, ocean trans-
port is crucial for the com-
petitiveness of Caribbean
countries to enhance the
economy and improve the
standard of living and qual-
ity of life of our people.
Participation in the
global economy is condi-
tional upon a functioning
maritime transport system.
Inadequate transport will
undoubtedly reduce our
piece of the global pie by
thwarting our efforts to
expand and diversify our
trade as well as the competi-
tiveness of our firms.
While the global trend in
costs is downward, the high
cost of providing maritime
services in the Caribbean
inhibits growth and devel-
opment of the sector. The
cost of transport services
is increasingly important
for the competitiveness,
development and economic
integration of the Caribbean.
Inefficient transport ham-
pers trade and the devel-
opment of non-maritime
industries and services.
The Caribbean trade is
small in value and volume,
rendering it unattractive in
terms of a reasonable return
on investment. Most fleets
are small and relatively aged.
Where there is a capacity for
vessel employment, particu-
larly in the larger islands such
as Jamaica and Trinidad &
Tobago, it is in highly special-
ised sectors. Additionally, most
economies continue to export
traditional goods and raw
materials for which the world
value continues to decline, cre-
ating an imbalance between
import and export cargo in
most territories.
Maritime services
in the Caricom
framework
Caricom has recognized the
importance of shipping and
has made provision for the
transport sector and its role
in the deepening economic
integration process.
Article 140 of the Revised
Treaty provides for, among
other things:
Promotion of sustain-
able development within
the shipping sector
Establishment of a
regime of incentives to
encourage the development
of shipping services to the
Community
Improvements and
rationalisation of regional
port facilities
Promotion of joint
ventures among Community
nationals >
CARIBBEAN MARITIME I JANUARY APRIL 2008 13
CSME .
"A
A
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In partnership with
extra-regional shipping
enterprises, to facilitate the
transfer of technology, the
harmonisation of training
programmes to strengthen
the capabilities of regional
training institutions and the
setting up of efficient port
and cargo handling systems
to reduce transport costs.
As if to reinforce its
importance, Chapter VI of the
Revised Treaty provides for a
Community Transport Policy
by providing the right condi-
tions for the orderly devel-
opment of air and maritime
transport sub-sectors as well
as setting out a Community
Transport Policy to provide
adequate, safe and interna-
tionally competitive transport
services for the development
and consolidation of the
Single Market and Economy in
Caricom. Article 8 zooms in on
maritime services specifically
and makes special provisions
for the sector.
Tradition of
region-wide
restrictions in
maritime services
Notwithstanding this
obvious recognition of the
importance of the maritime
sector and the commitment
of countries to removing
restrictive practices and
administrative regulations,
there are still region-wide
restrictions on maritime and
auxiliary services to varying
degrees across the member
states. Among these are
restrictions on the nationality
of seamen, officers and pilots
- for example, in Barbados,
Belize, Guyana, Jamaica, Suri-
name and Trinidad & Tobago.
Others require work permits
for vessel crews, shipping
agency and Customs broker-
age services for example, in
Belize, Guyana and Suriname.
Dominica, St Lucia, and
St Vincent & the Grenadines
have discriminatory licens-
ing requirements for foreign
vessels, pilots and crews.
Suriname continues to main-
tain a closed ship registry,
while pilotage and berthing
services exclude foreigners
in Belize, Grenada, St Lucia
and Jamaica.
Legislative provisions such
as the Alien Restrictions Act
in Antigua & Barbuda speak
to the nationality require-
ments of ship masters in that
country. Barbados has an
Aliens Act that restricts the
nationality of those able to
procure a pilotage licence.
Jamaica, under its Customs
Act 1955, holds a residency
and work permit require-
ment for Customs brokers.
Clearly, there is still work
to be done in order to
remove the last vestiges of
separation in what is sup-
posed to be a seamless mari-
time space. Notwithstanding
the outstanding legislative
action by some member
states, Caricom has renewed
its efforts to advance the
issue of transport infrastruc-
ture development. And,
indeed, it is a propitious
time for the maritime indus-
try in the context of regional
economic integration.
Renewed focus on
maritime services
within Caricom
In May 2007 the Council
for Trade and Economic
Development (Coted) met to
discuss the issue of regional
transport. Among its deci-
sions were:
(1) To establish a Commu-
nity Transport Policy
(2) To establish a single
market for maritime trans-
port services, including
the granting of cabotage
rights to nationals of other
member states
(3) To develop and carry
out programmes to improve
the efficiency of seaports
(4) To promotion and
develop trans-Caribbean
maritime routes as well as
under-served routes within
the Community by means of
incentives.
Potential
opportunities in
the CSME
The CSME supports an
integrated maritime policy
to explore opportunities in
joint ventures in port devel-
opment that will be facili-
tated by the freer movement
of capital. More experienced
countries can export their
port management services
under the free movement of
labour and skills.
With these rights and
freedoms in place, Cari-
com businesses can set up
sub-hubs, feeder and ferry
services in less geographi-
cally competitive territories
(for example, the Organisa-
tion of Eastern Caribbean
States). Those territories
disadvantaged in maritime
services by their landlocked
locations for example,
Belize, Guyana and Suriname
- also have opportunities to
capitalise on a good trans-
port infrastructure to offer
their landlocked neighbours
overland access to the sea.
With all the synergies
afforded by the single
economic space, the devel-
opment of logistics and
multimodal transport, key
determinants of competitive-
ness in international com-
merce, would also increase
the speed of intra-Caribbean
shipments and make sourc-
ing within the region more
attractive for importers. It
also enhances the ability of
regional producers to meet
rules-of-origin criteria for
third party export markets in
a more effective and expedi-
tious manner.
One of the key benefits of
the CSME is the harnessing
of the factors of produc-
tion, not least of which is
the supply of labour. The
sustainable provision of
labour to work the industry is
crucial for shipping and will
undoubtedly facilitate the
movement of the skills pools
necessary to the trade such
as stevedoring and piloting.
The Caribbean ranks low,
globally and among develop-
ing countries, in the supply
of seafarers. As a region with
a relatively high literacy level
and the added advantage
of being mainly English
speaking the language of
trade and shipping there is
an untapped opportunity to
supply manpower.
But are we ready?
All these are opportunities,
but are we ready as an indus-
try to seize them? Unfor-
tunately, there are several
things the industry needs to
'fast track' now if it is to catch
the ship before it sails.
Lobbying will be crucial
for industry players like the
CSA. They need to lobby for:
(1) Immediate action
on an integrated Caricom
Regional Transport Policy to
generate growth, jobs and
sustainability
(2) Regional incentives to
14 CARIBBEAN MARITIME I JANUARY APRIL 2008
-r CSME
promote the development of
regionally owned shipping
(3) Harmonisation of ship-
ping legislation
(4) Policies that give
more favourable treatment
to CSME services and less
favourable treatment to non-
CSME competing services
(5) Free movement of
skilled people (categories
to include marine pilots and
seafarers)
(6) A change in local cabo-
tage laws to allow Caricom-
owned lines to benefit from
equal treatment and access
to cargo
(7) Removal of remaining
restrictive legislative and
administrative practices.
The shipping commu-
nity must be at the table to
advance these positions.
Business people must tell
negotiators and governments
specifically what to negoti-
ate on their behalf in order
to foster the growth of the
industry. We must engage
the Caricom machinery and
others, including our national
government ministries.
It is only with a spirit of
co-operation and exchange
that we can succeed. We
must overcome the 'enemy
within' syndrome. We must
see our Caribbean counter-
parts as partners. The CSA
must gather, exchange and
disseminate information
for policy-makers to garner
relevant industry data and
develop strategies for the
sector, thus raising the
profile of the industry and its
contribution to the region.
Can the CSME
help us?
With all this lobbying and
engaging, one may still ask:
can the CSME do us any good?
While the CSME is not a
panacea for the region's ills,
we have several things to
guide us in the considera-
tion of this question. First,
our own assessment of mar-
kets. Undoubtedly, a larger
market benefits those who
trade in it. Second, there
is the experience of other
organizations, notably the
European Union, which has
provided immense benefits
for most Europeans.
To give a balanced view,
the rapid convergence of
Irish living standards to EU
levels during the 1990s.
Ireland was poor in 1973. It
had high unemployment,
low levels of income and
high levels of emigration. In
statistical terms, it had an
average income per head
at 62 per cent of the EU
average. Ireland's economic
growth was the result of
a combination of many
factors: billions of euros of
EU funding over 33 years,
that transport infrastructure
is an important driver of
future economic prosperity
and social well-being will
make the CSME and any
other valiant efforts at inte-
gration meaningless.
In its Vision 2020 state-
ment, the Community of
European Shipyards Asso-
ciation says: "The history of
civilisation and of commerce
cannot be separated from
that of waterborne trans-
port."
Failure to recognize that transport infrastructure is
an important driver of future economic prosperity
and social well-being will make the CSME and any
other valiant efforts at integration meaningless
one can look at the British,
arguably the biggest naysay-
ers on European integration.
"The EU has brought ben-
efits in many areas, though
certainly there are other
areas where the UK gov-
ernment would like to see
improvements.. .The market
has created more competi-
tive services, greater choice
and lower prices, supporting
wealth and job creation...It
has lowered business costs
and opened new oppor-
tunities...When the whole
of Europe speaks with one
voice, we have more clout
on the world stage.. .We are
stronger in trade negotia-
tions if we negotiate as one
economic bloc." [Source:
www.fco.gov.uk]
According to the Irish
Regional Office: "The Euro-
pean Union's regional policy,
through the Structural
Funds, has played an impor-
tant part in the transforma-
tion of the Irish economy, in
particular by bringing about
a single European market
established between the EU
members, the encourage-
ment of free and fair compe-
tition between EU countries,
unrestricted trade between
EU member countries using
common rules, a large and
growing market of consum-
ers as the EU enlarged and
more countries joined..."
While the CSME is not
the panacea, a wholesale
superimposition of the EU
approach to integration on
our region is certainly not
a cure-all either. However,
there is much be learned
from their experience.
Conclusion
While some countries have
made strides, the Caribbean
region as a whole has failed
to anticipate the speed of
the global production shift
and neglected to build suf-
ficient region-wide transport
infrastructure to cope. Col-
lectively we have been left
behind. Failure to recognize
This statement, though
seemingly pedestrian, is
true. As we seek to create
our own regional history
with the implementation of
the CSME, I contend that this
cannot and, indeed, should
not be without the critical
input and contribution of
the maritime sector.
It is only through the
engagement of industry
players that this statement
will hold true for our Carib-
bean future. We must ensure
that our anchor holds firm
and deep in the billows of
globalisation and increased
trade liberalisation to ensure
a lasting and sustainable
foothold into the global
economy, carried by the
maritime transport sector. m
- From a paper presented
at the 37th annual
conference of the CSA in
Santo Domingo, Domini-
can Republic
CARIBBEAN MARITIME I JANUARY APRIL 2008 15
CSME .
-- -
S --22-Oc-tob-ei 2 -that the
peopLe-of Panama oveLwihelminglv
--i d-fthyit r, app oV jed -expaision of the Canal -
ainvit- The piojectn two Pactincya thild lane
he etrthe contract tyesigr 6o- ffiCThtbJgTIrwVateli av by b)1id-
I'-tt .h.if ing a new-set of locks This will allow
S.z ---- -biedgtqg iGatamfn Lake and te --- .wdei and lai er ships to hansit and will
S..:G;7.I-a E- 4Lt oM l" eom ~nice Ll double thle Canal s capacity to ovel 600
.- -.- --ris yea an-the ACP vv-i tforc-vtt-- -m million Panama Canal tons pei yeai
I-i- -- -- comiptAlete that project to gualantee io In suinm, the e:ipansion piogiaile
-.. .. "!">" ..... .a-.. Paclhct ea 1w0l 111 aid ne *1a1c l tlclo e ocksa d e
adisi diiptions Canal traffic a Tniludes
-he. ACP is cufiently driaV:inlg 1.I) Deepening of the Pacific and Atlan-
S-- S atilOn o)ackages and reviewing tic enhances of the Canal
ii" b.-id ".'. -' Locks and 3aalding contracts related to Deepening and widening of ihe
lthe expansion pl oject navigational channels of Gatun Lake and
As pai t of the project, the Atlantic deepening of the Gaillaid ICuleb ia Cut
and Pacific enhances will b)e widened Conilstiluctionil of nev locks and watei-
and deepened, as will the navigational saving basins in the Atlantic and Pacific
Waterway awaits channel at Gatun Lake. One lock com- Raising Gatun Lake to its maximum,
enlargement plex will be located on the Pacific side, operational level
south-west of the existing Milarlores The new locks will allow the passage
.-..- Locks The othei will be located east of of vessels with a breadth of 49 meties
the existing Gatun Locks 1 160 fti, an overall length of 366 meties
16 4 \1(114141 \N RI \R1 I IND I I I - wvii
THE YEAR AHEAD
Location of new locks
(1,200 ft) and a draught of 15 metres (50
ft) with a maximum capacity of 170,000
dwt or 12,000 teu
Water saving
Environmentally sound wvatei-saving
basins will be built alongside the new
locks These will le-use 60 pei cent of
the watei In each transit, piesei ving the
fleshwatel iesouLces along the Vwatel-
way The ACP is a signatory of the UNs
Global Compact and all const fiction
wvOI k is being called out in accoid-
ance with the highest environmental
standards and principles Because all
constiCtlOil sites 31e outside theex:ist-
ing channels and operating aieas, the
exIpansion vvoik will not intellupt traffic
and no existing lanes will be closed.
Tiansit delays aie not anticipated.
The ACP has bought in consultants
on financial, legal and environmental
matters and project management to
0 Deeenqing ol Ike Pacific t Deepening and widening @ Canrsuction of the 0 Raising Gamie
and ilanic Entances of lith navigaflunil dinnmis new locks and Lake la its maximum
il Galin Lak and deepening water-saving basins in the uperatinnal level
oliCulebra cul Alantic and Pacific
effectively. Then study analysed 0basein informa-
mate pla an exaso 0rpsl 0.0rnena 0.aemn pln Th.s
0.0nia moel cotace 0.e service of .2 Hill,
Shearman & Steri'lBlMing LLP, amaret a eaig ntrntinl roram
iEBBB orpoate Baktderine lock. 00 Hl is d
opin fo th 0rjet proec maaemn inform0at.ion00.
o .0proval f 0rom the Nt*iona 5niron- 0monitor all a t of t
en0vir.onmenta impact study on the when32, 000 0..of explosives were >
CAIBA .AMM I JAUR *0.M 200 170
" *iW : 'M
**aC^.^ * ^
Lock: Existing vs.
postpanamax
LOak cmber,
(1-- 10 pies)
UWEWE EEy
Le0hof
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(1I.
Mt6.
14201.
.-.- (l80pies)- -
. i j.
I I IL"
lad5
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S.- 55
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T IIfin N- \'RIIIMI
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)17H
APM Terminals'
Robert Bosman
I;
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V0 SHIP REGISTRATION
One in four of world's
fleet now registered
in CSA countries
By Eric Deans
Over a quarter of the world's tonnage
is registered in countries represented
by the Caribbean Shipping Association.
Eric Deans looks at ship registration
in the Region, its history, the CSA's
global impact and prospects for
additional maritime endeavours
In its simplest definition, An unregistered ship has:
ship registration is the No guarantee of secu-
process by which a vessel is rity. Under international
formally identified with a law, a 'stateless ship' has no
particular state. The ship is nationality and therefore
thereby given a nationality, has no guarantee of secu-
Ship registration is guided rity when operating on the
by the following conditions. high seas.
Cannot engage in
lawful trade. Recognition
of a vessel for entry into
and clearance for exit from
a port are based solely on
her nationality. A 'stateless
vessel' therefore cannot
engage in lawful trade
within or between ports as
she would be denied entry
and exit or detained.
No diplomatic protec-
tion. Registration entitles a
vessel to diplomatic protec-
tion or consular assistance
from the flag state. It gives
her the right to engage in
certain activities within the
territorial waters of the state.
In times of war, it serves to
determine the application of
'rules of war'and neutrality.
Registration also serves as the
basis for any claim for naval
protection from the state.
Open registry:
how it all started
All countries operate reg-
isters that are structured
primarily for their national
interests. However, the first
open registry, where a coun-
try registered ships owned
by foreigners, was that
of Panama, currently the
world's largest ship registry.
The practice of reflagging
ships that is, changing
from the domestic flag to an
open registry grew in pop-
ularity between 1920 and
1933, the time of Prohibition
in the United States, when
American 'rum runners' car-
ried illegal alcohol under the
Panamanian flag.
In 1948, in a bid to
diversify its options, the
US helped Liberia create
its open registry, now
the second-largest open
registry in the world. The
Liberian registry attracted
US oil companies and Greek
shipowners who sought
to avoid high labour costs.
The success of Liberia's
registry encouraged the
opening of other registries,
which created competition.
Some notable examples are
Bahamas (the world's third-
22 CARIBBEAN MARITIME I JANUARY APRIL 2008
SHIP REGISTRATION .
-
-v- -
largest registry), Antigua &
Barbuda and St Vincent &
the Grenadines.
Benefits of
registries
In addition to the nationality
benefits, ship registries usu-
ally offer a mix of incentives
to attract potential vessels
to their register. Registries
competing in a global
market are successful only
where the specific needs of
shipowners are met.
In this market, the registry
~9
that best identifies and
anticipates the needs of the
owner and is able to provide
incentives to fill that need
have the competitive edge.
A shipowner may choose
to register a vessel in a
foreign country because
this offers opportunities for
reduced operating costs or
avoiding excessive tax. The
attraction may otherwise be
a registry country's infra-
structure, such as a world-
wide network of consulates.
Whatever the reason, it
must be recognized that,
under conventions of inter-
national law, the country of
registration determines the
source of law to be applied
in admiralty cases, regard-
less of which court has
personal jurisdiction over
the parties.
CSA's sphere of
influence
According to the UNCTAD
Review of Maritime Trans-
port in 2004, about 45 per
cent of the world's tonnage
of merchant ships was
registered in countries with
open registries that is, 404
million dwt of a total of 895
million dwt. Some reasons
for this are avoidance of
heavy taxes; availability of
crews of their choice from
lower-wage countries; and
an overall reduction in
operational costs.
Countries in the geo-
graphical region rep-
resented by the CSA
accounted for over 240 mil-
lion dwt. In other words, 27
per cent of the world's ton-
Major Open Registers
Flag
Panama
Singapore
Liberia
Belize
Cyprus
Malta
Honduras
St Vincent
Bahamas
Norway (NIS)
Antigua & Barbuda
Denmark (DIS)
Hong Kong, China
Number of Vessels
6,173
1,737
1,726
1,593
1,581
1,550
1,525
1,435
1,316
744
638
475
432
Gross Registered Tons
104,295,002
21,554,230
59,466,907
2,465,019
23,478,126
26,980,296
1,217,031
7,846,440
28,657,166
19,694,358
3,465,336
5,333,928
6,752,344
nage is registered within the
CSA's sphere of influence.
Member countries of the
CSA can further leverage
their substantial involve-
ment in global shipping.
From a registration per-
spective, this involvement
centres on safety and legal
matters related to the ves-
sels. Tremendous scope
exists in the provision of
other services such as ship
finance, marine insurance,
ship management and ship
ownership.
The example has been set
by countries such as Sin-
gapore, Malta, Cyprus and
Bermuda small countries
with a significant impact
on the world's maritime
industry. The CSA could
study these examples to see
how development may be
encouraged and facilitated
through knowledge and
adaptation. m
CARIBBEAN MARITIME I JANUARY APRIL 2008 23
Marcelina V7lez de Santiago, President of the
Pontifical Catholic University of Puerto Rico and CSA
President, Fernando Rivera a ceremonial handshake,
symbolising the start of collaboration between the
university and the CSA on 8 October 2007
wihTe Assciaion
d. Cotatn faculty,.
parol failtis an al mat-
ra s reae totecuss
e0.6 Noiyn th. stuent
of grdsadaaei
stand.ng.
f Grntn the partcipa
tio cetiicte prfssoa
certificat oraae i
degeeacoringly.
g.Th cmenemn
ceem n wil be0.li
Ponc ontesmSaea
Th Unvrst' grauaio
ceremony-.
h. Al th euaramns
trative aciite Sprore
by~~~ Th Unvriy
This O illb fetv
for tw yer im edatl
afe ithsbe indb
both patis 0.d cab
extnde auomticllyan
U "efniel for two-yea
periods
Thi MOC ca be can-
cele by an of twSate
Poce Puet Rio.a
THEYEAR AHEAD K
CMI expands to Eastern
Caribbea
The Caribbean, which
once enjoyed doing
business at its own com-
fortable pace, is now
compelled to fast-track its
operations in response to
the unavoidable forces of
globalisation.
The top two Caribbean
ports are managed by global
terminal operators King-
ston Container Terminal by
APM Terminals and Freep-
ort Bahamas by Hutchison
Port Holdings and many
Caribbean countries have
experienced a decline in the
number of local shipping
agencies. A high degree of
consolidation and the open-
ing up of direct line-owned
offices are replacing small
local shipping agencies.
These are just confirmation
that the industry is changing.
In 2008, as greater con-
solidation continues in the
shipping industry, small lines
will be taken over by global
lines through mergers and
take-overs. This will have a
ripple effect on the Carib-
bean in that traditional liner
agencies will be without
lines, thereby forcing them to
reinvent themselves or exit
the market. Many traditional
liner agencies have been
converted into non-vessel
operating common carri-
ers (NVOCCs). Companies
have taken on more value
added services. The reality
is that forces are now being
dictated by the customer and
not by the lines.
It is estimated that 60
per cent of the container-
ised cargo moving east and
west are under the control
of NVOCCs. Many shipping
lines are providing the basic
ocean transport services,
while the intermediary
groups are taking on more
of the logistics and supply
chain functions.
In addition to global
changes, the rise in oil prices
is affecting the operational
cost of shipping lines. The
impact of higher insurance
cost and fluctuating steel
prices affect the building of
ships. All of these will have
a negative impact on the
charter rates of ships, which
will continue to rise. Security
issues will continue to be a
major concern.
Overall, 2008 will be
another record year for the
shipping industry. There will,
however, be some changes
in the country-to-country
mix as the shift from the
United States to Asia will be
more evident in the figures
of 2008.
Impact
How does this impact the
Caribbean Maritime Institute
(CMI)?
CMI seeks to redefine itself
as an organism rather than
an organisation through the
adoption of the Blue Ocean
strategy, as we become more
market responsive. The year
ahead will see expansion
to the Eastern Caribbean
through CMI's own distance
education system (CMI
Onclass). This is in addition to
the five bachelors degrees in
International Shipping; Port
Management; Logistics and
Supply Chain Management;
Cruise Shipping and Tourism
Management; and Industrial
Systems Operation and Main-
tenance offered in Jamaica.
CMI also anticipates the
launch of a Master's degree
in collaboration with an ivy
league European university.
In the year ahead, the CMI
plans a 100 per cent increase
in enrolment as it expands
its core seafaring courses
in an attempt to meet the
projected shortage of over
10,000 officers globally. A new
range of short and custom-
ised courses will be delivered
regionally in collaboration
with strategic partners.
Expansion and introduction
of new courses under the
memoranda of understand-
ing signed with the University
of Technology, De Ruyters
Training Centre, Dutch Carib-
bean Training Centre, among
others, are also planned. m
CARIBBEAN MARITIME I JANUARY APRIL 2008 25
0
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crolnsasawywlbegn-o sreothwetrcossomayHydrographic surveyi, inntn pormerset
.av o s a p o r n 6 6 and harbou6 6 l 666 .6 A 6 i 6 p a
We had 6.64 naesomsi20. 6 e beaches los of road 6n daag to drwn or chri eivrd
impac ths strm hav on o :r live- asda ai.Tesae oorpy spcaitcm aishv h aa
and 6ivl .ho 6 but 6ha abu thi ca chne wit seietadsns blt. It is an ar beasadge
efec on th enion et moin 6ro on plc 6o anthr of 6666.6lit is eseta 6o ad.p in a
cale str surge 6.nsrem 'Exxo 6--------e was bac in the6
No onl lo-yn an eniomn Wha ca be don to enur th nes ee br ta a ua
tal deict coslie 66fe as a 6eul 666et of navgaio in ths crtia ero an th hp i oc.M r
of 6hs phnmea but als bul-u aras reenly 6.e Dia ond suff66ere6666 d
can hea of a 6 .6..-.66~
fia6ia 6sto6rm 6~. 6
Ower of 6hip covyn pasngr or haadu cag .11 L 6* *6
canl bveyaaeotheodadae 'foutiksfft as
expensive, try having an accident' David McPherson, UK
Hydro graphic Office, Taunton, Somerset
By Rihr .6 0mo
28 CAIBEN AITM I JAUR APRIL 2008
I IA::" A: "" : ": "
iii
S.s.. eaFreight
US General Agenls: Searelgh Aenes iSA, ,Im
i Ij vE4i] la2 Web s ann
JACKSONVILLE o PORT EVERGLADES ARUBA BARBADOS 80NAIRE
CURACAD GRAND CAYMAN GRENADA GUYANA HAITI JAMAICA
MARGARITA PANAMA ST. LUCIA ST. VINCENT SURNAME TRINIDAD VENEZUELA
Quality leadership
- the key to a successful
liner business By Jennifer Nugent-Hill
Success is when revenue
generation activities
and cost overruns kiss
goodbye.
What makes a cargo com-
pany successful? It is more
than just another refriger-
ated container on the vessel.
It is the opportunity to take
that container and turn it
into revenue generating
activity for all the stakehold-
ers. After all, the primary
goal of any profit-making
business is that of generat-
ing revenue.
However, there are other
elements to the definition of
a successful liner business.
They are passion, innovation
and corporate leadership.
Passion is when a leader
and an organisation reflect
real commitment to people,
a world-class service and
demonstrate an unrelent-
ing flame for ensuring a
profitable and sustainable
shipping company.
Innovation is reflected
in cargo lines when the
leadership wholeheartedly
encourages best practices
and the corporate culture
where constant learning and
the hunger to satisfy new
demands from customers
is the norm rather than the
exception.
Corporate leadership in
the liner business is where
strong business ethics and
core values go hand in hand
and TRUST is a bond never
to be broken. The 'win at all
costs' approach is never a
viable option at companies
where the culture of quality
leadership is the standard.
The quick and easy
answer to the question
of what makes successful
companies is often stated
as simply 'good leadership
and revenue'. In the Octo-
ber 2007 issue of 'Fortune'
magazine I read an obser-
vation that "the world's
best companies realise that
no matter what business
they're in, their real busi-
ness is building leaders."
In short, the author asserts
that leadership and revenue
are inextricably linked.
Philosophically, the under-
pinnings of leadership and
revenue might be visualised
as a rope that tethers a com-
pany to its success a rope
that is woven with strands
of effective and successful
leadership.
Liner business
This discussion of the key
to a successful liner busi-
ness through leadership
development is framed
in the example of Tropi-
cal Shipping as a company
with a culture of leadership
development. Further, it
is a discussion of the true
meaning of leadership in
a successful organisation,
its intermediate detail and
what an organisation must
do to develop leadership in
ways that contribute to its
overall success.
Tropical Shipping began
44 years ago as a rela-
tionship that developed
between a man shipping
building materials to the
Bahamas and later to the
Caribbean and its people.
The company grew to what
we are today: operators of 19
vessels carrying thousands
of containers. The prior-
ity then is the same today:
PEOPLE.
How did the company
grow when hope is not a
strategy? There is certainly
a fair amount of business
planning and all the typical
forecasting in which any
company must engage, but
there has to be more. More, >
CARIBBEAN MARITIME I JANUARY APRIL 2008 31
V0 LINER BUSINESS
as in the people behind
the growth and success, the
inspiration of people and
relationships, the integrity
of persons, innovation and
- the most important 'more'
- the company's role as an
enduring organisation in the
business community.
Tropical Shipping is com-
mitted to its customers, its
team and the communities
it serve. This commitment
is embodied in its Tropi-
cal Shared Values, which
build the foundation of all
relationships and almost
everything we do.
Investments
One of the most obvious
investments in leadership
development is observed
through our partnership
with agents in 21 of our
destination ports. Island
nationals are an integral part
of our team and leadership
structure. This is one of the
biggest deterrents against
leadership attrition.
I often share this quote
that I found somewhere a
long time ago:
"If you have passion for
what you do, the company
you keep, the life you live, it
will be reflected in what-
ever you create. Passion
is like that. It springs out,
jumps, unpredictable and
unplanned into everything
we touch. If it doesn't, others
know. Passion can't be faked
and it can't be manufac-
tured, which is why it is so
priceless."
Synthetic
It is worth reiterating that
the human element of pas-
sion cannot be replaced by
any synthetic provisions.
So it is a 'must' that lead-
ers cultivate this element
among their people and
team. In the end it is per-
formance and personal
ownership, combined with
the passion to succeed, that
ushers in profit. Profit, in
turn, is the result of all the
elements passion, people
and performance being in
alignment.
Any shipping line taking
self-inventory for partner-
ship and leadership values
should ask itself and hon-
estly assess:
How would you value
your company's community
leadership?
What are your compa-
ny's core values?
How is the Caribbean
shipping industry viewed in
the market?
What can we collabo-
rate on to help strengthen,
improve and sustain the
communities in which we
do business?
Tropical Shipping has
subscribed to and com-
mitted its resources to
- various opportunities that
have helped develop strong
leadership both inside and
outside the company.
In the tourism sector,
Tropical Shipping has initi-
ated the Freestay Caribbean
Cruise Conversion pro-
gramme. This is a direct rein-
vestment in host countries to
encourage cruise passengers
to return to destinations for
extended, land-based vaca-
tions. There are 12 member
countries in the programme.
More information about
each of the members' pro-
grammes and offerings can
be found at www.freestay-
caribbean.com.
Initiative
As a humanitarian initiative,
Tropical Shipping has organ-
ised disaster management
workshops that helped to
elevate the policy focus.
There is a First Responders
First feature that provides
for the families of emer-
gency services personnel in
the event of a disaster.
Trade facilitation reform
partnerships have been sup-
ported by Tropical Shipping
in meaningful ways that
include the development of
software, change manage-
ment and public education
campaign designs as in the
pilot project in Dominica.
Finally, in a successful
shipping line, company poli-
cies and guidelines are where
we should find the leader-
ship concept applied in the
most rudimentary ways:
Sincerely recognizing
people as the company's
greatest asset and maintain-
ing them better than office
equipment
Creating a corporate cul-
ture for learning. Reinvesting
in people through services,
or products, and a desire for
profit sharing
Establishing community
partnerships. Realising that
part of our job is also on
Main Street and in the local
market places.
Leadership is more than
who say we are it is what
we do. The definition of
leadership would benefit
from an expanded defini-
tion to include community
economic sustainability and
support of equal and fair
public policies.
So my closing question to
you is, what does leadership
look like in your organisation?
Is it just a buzzword, a cliche,
or is it a true commitment and
concept that sets your organi-
sation apart from others in
the local community? m
32 CARIBBEAN MARITIME I JANUARY APRIL 2008
"If you have passion for what you do, the
company you keep, the life you live, it will
be reflected in whatever you create"
CARTAGENA .
IL
7I~
91M gI I l
1 d :
Ill
I Lq
V0 CARTAGENA
increased its productivity,
quadrupled its throughput
and optimised its workload
without hiring additional
employees in the past year.
Since it opened in
December 1993, the port
has recorded success after
success. Its achievements
are now reflected in awards
and accolades. In 2001 SPRC
was named 'The Miracle of
Cartagena' by 'Containeriza-
tion International' magazine
for using its automated
systems to help advance the
port's operations. And, in
2005, 2006 and 2007 SPRC
took the CSA's title of Best
Container Terminal in the
Caribbean.
SPRC attributes its success
to the quality of its staff, its
tenacity and its dedication
to duty.
With growth, the terminal
has been making an effort
to deliver improved services
and increased productiv-
ity to vessels. According to
SPRC, the port has been
able to react and implement
more strategic measure-
ments using Navis Sparcs
software, for example. The
use of real-time information
and optimisation tools such
as Expert Decking and Prime
Route has been one of its
keys to success.
Faster and more
efficient
SPRC is now able to fully
automate and optimise
vessel handling, yard alloca-
tion and equipment dispatch
with minimal worker direc-
tion or interaction, which
means faster, more efficient
load and discharge. The
terminal has also doubled its
container handling capabil-
ity now that it has informa-
tion age technology to help
manage larger vessels carry-
ing more containers.
The port increased
throughput from 231,549
teu in 1997 to 468,864 teu
in 2004- an increase of 105
per cent. For 2008 the port
is expecting to handle more
than 900,000 teu.
Cartagena's Contecar
Container Terminal is
expected to be one of the
most modern and efficient
ports in world maritime
industry by the year 2014.
This is the culture that is
being developed among
staff. Cartagena has leveraged
technology to position itself
as a premier container termi-
nal and service provider.
Cartagena has achieved a
lot in a relatively short time
and, given its plans, policy
directions and a dedicated
staff, has a lot more to achieve
in the coming years. m
34 CARIBBEAN MARITIME I JANUARY APRIL 2008
The port increased throughput from
231,549 teu in 1997 to 468,864 teu in
2004 an increase of 105 per cent.
For 2008 the port is expecting to
handle more than 900,000 teu
Nff_ _-:5 -j- * -*-^-
NEWSMAKER .
Grantley Stephenson
receives national
award in Jamaica
G rantley Stephenson,
the chairman and
chief executive of King-
ston Wharves Ltd, has
been awarded a national
honour for his contribution
to the development of
Jamaica's shipping industry.
At a ceremonial event in
October to honour Jamaica's
outstanding citizens, he was
presented with the Order
of Distinction (Commander
Class) by the Most Honourable
Professor Sir Kenneth Hall, the
Governor General of Jamaica.
Mr Stephenson, who sits
on the General Council of the
Caribbean Shipping Asso-
ciation, has made much of
his 30 years in the industry,
having worked in the areas of
shipowning, vessel opera-
tions, ship management and
ship agency representation in
Mexico, the UK and Jamaica.
He was educated at the
College of Arts, Science and
Technology (now the Univer-
sity of Technology of Jamaica)
and the University of the West
Indies as well as the University
of Plymouth in the UK.
He was president of
the Shipping Associa-
tion of Jamaica from
1998 to 2003. During
his first year as presi-
dent he was appointed
Honorary Consul Gen-
eral in Jamaica of the
Kingdom of Norway.
Today, he serves as
Dean of Jamaica's
Consular Corps.
A member of the
team which set up the
Jamaica Maritime Institute in
1977, Mr Stephenson served
as a director for 15 years.
He also served as alternate
director for Jamaica on the
board of the multinational
shipping line Namucar until
the dissolution of that com-
pany in the early 1980s.
Mr Stephenson is a
director of the Jamaica Fruit
Group of Companies, of
the Maritime Authority of
Jamaica and of Jamaica's
Port Security Corps. He is
also chairman of Port Com-
puter Services Ltd and Secu-
rity Administrators Ltd. m
For over 65 years the team at The
Shipping Asslxiation 01 Jamaica ha,;
provided a high' 4LiIled. costi
eflei lL~e w.rklorcei in [he~ Port oi
Kinn~on At the~ same time9 %% r%
to ensure the soc~io-ec'-jnomic
de~Iupmntn ol our niermber
compdnie.; uurF emrplo~ee. the
j,;maican port th shipping indlusm
we~ 12 akr. expanded our lunctions to
ncludc* the p~ro% simr of a %%idne range
Of iniormatiion technoIlgb and
cmmunurra3ioJn 4.eruce through Pori
COMrptirer Lrd Ni1ore rc~enti. a
an-ne D,%ic~on has been set upas a
s~er% ice to mnembers anrd exporter, to
detect It(-,[ drugs and contraband.
T h~e ne%% de% elopnifwn Ls a re
e% idence -.) our ommrirmn~t~ to [he~
mnodernisation cl the' Puirtl 1Kingston
rh ihppi .wm*, dia,vo janl~u.i
Tel Ld-j 9,1-341.I. 1- 1 I'-
Fa ii, -w 9, Ermil. i'a crb n c
CARIBBEAN MARITIME I JANUARY APRIL 2008 35
,,,r.- ,-
my
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CARIBBEAN FEEDER SE .ICEO CF5I
LATE NEWS S
Barbados is again looking
at plans for a dedicated
pier foi cruise ships in the
Poi t of Bridgetown. The idea,
which has been mooted for
some time, was shelved last
year aftei a decline in cruise
passenger ai rivals. But Sena-
toi Rudy Grant, Pai liamentary
Secretai y in the Ministry of
Tourism, says the idea is under
discussion once more. Cruise
passenger arrivals in Barbados
last year were expected to
be 720,000- up 12 pei cent
on 2006. A dedicated ci uise
pier would ease congestion
at the port and provide an
opportunity to develop retail
activities, the government
official said.
Prmoio at SeIeih Line
Searegh Lin ha anone d the promo tw vesl in th Caribea trade Tod.
tiv vice prsien fro I Deeme 2007 pots
In his ne caaiy MrRs-wlae oe- Se-. ih' Roan 6.6 n-S t sai Mr
Lie' cotie sevie betee Floida of it actvit an reeus Anaieo
stf n im. Kir 66n in6 Flrd poeoiigSari
Mr ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 6. * 6os jondSarih gnis svc gnis ei adrco fSari
prsdn makein in Janar 199 when Line Ltd S h Agnce 66 SA Incan
the co pn was fou yer old oprain *6~em a Hodig L
New Miami tunnel set
to ease congestion
The City of Miami is planning a tunnel undei Biscayne Bay
to provide ciuis L passengers and caigo interests vilth
a diiect link between thle poi t and thle intei state highuvay
system, thus easing congestion in the dowvntowvn aiea
Expected to cost ovei S1 billion, the 1 1 mile, twin-tunnel
pIoject will be financed by the state and local governments
The State of Flo ida has committed S462 million to tlhe
pi)oject while Miami- Dade County has eaimai ked just ovei
S400 million
Redevelopment of Falmouth
port gets go ahead
W ork on redeveloping to start in February because
the Port of Falmouth, we have to complete it in
on Jamaica's north coast, time for the arrival of that
east of Montego Bay, is 19-storey ship, which is due
expected to start in Febru- to come in 2009. So we have
a ry 2008. to be ready to be one of the
The Minister of Transport ports of call."
and Works, Mike Henry, said Mr Henry confirmed that
work at Falmouth should be an expansion of the Port of
finished in time for a visit by Kingston, now under way,
the'Freedom of the Seas' would require the closing
in 2009. He said most of the of Tinson Pen aerodrome
contracts and studies had and construction of a new
been completed. "Work will aerodrome at Caymanas,
start in February and it has just west of Kingston.
The Panama Canal
Authority has awarded
Consorcio Cilsa Minera Maria
the contact to excavate
a channel linking the new
locks on the Pacific side
with the existing Gaillard
Cut. The contract winner is a
joint venture between com-
panies based in Panama
and Mexico. The project
involves removing 7.5 mil-
lion cubic metres fiom a
2.4 km stretch just north
of where the new Pacific
locks will be built. (Foi more
details see Page 16).
The International Mari-
time Organization (IMO)
has elected Jamaica to its
Council in Category C foi the
2008-2009 biennium.
Category C represents
states with a 'special inter-
est' in maritime transport
or navigation. Jamaica has
been a member of the IMO
since 1976 and currently
chairs the Standards of Train-
ing and Watchkeeping (STW)
sub-committee.
Jamaica's election to the
Council comes after months
of preparation by the Mari-
time Authority of Jamaica,
the Ministi y of Foreign
Affairs and Foieign Trade
and the Ministi y of Trans-
port and Wolks.
The IMO is a United
Nations specialist agency
responsible foi develop-
ing common intei national
standards of ma time safety,
security and marine enviion-
ment protection.
Jamaica was elected to
the Council on 23 November
at the 25th session of the IMO
Assembly, held in London.
C %11113BI AN NI %III I INII 1-J PPH Aico, 37
/#
ION
A ne ehdo Ti aetpoet sl-prple shps A reen es of fou caresi h
cotie stckng unqe cost--e----------a-pect----ud----ies-v-es--------ticulate puet Ric trde wit1
Inc is se tenacco- ar lae to have fial tha 6000 deaths anuly th iln.6 Mr Mcow 6si
"i=e i th P s i si Joh D with t6 e.
The Unte Stae Paen & of Trie Brdg Inc "We prbbytebgetevrn 07wsu o prdwt
,e O. as g a i t t .
te uni l a
exlsvl 56 3 ft 6ona6nrs usn onl 53 ft coties inid cui spc an fie mots of 207ndng3
the 53 ftcnanesotssad----ode-----e-mst opein spae main it of $1326co prdwt
ocansevie etee te feciv fr hipes nd eair o ov plltsinan alssof$88 ilio6fr h
US manln an Purt a so h otcnitn. ot hyas av eesd sm eidteya eoe
CARIBBEAN SHIPPING EXECUTIVES CONFERENCE .
Three-day shipping
executives conference
heads to St Maarten
The annual Caribbean
Shipping Executives
Conference will be held in
May 2008 in St Maarten,
considered one of the fast-
est growing cruise desti-
nations in the Caribbean.
On 19 May, at the Sonesta
Maho Beach Resort, the
President of the Caribbean
Shipping Association (CSA)
Fernando Rivera, will call
to order the seventh sitting
of this CSA conference. The
conference has grown in
size and content since it was
first held in Georgetown,
Guyana, in May 2002, with
110 persons attending the
two-day event.
The Shipping Executives
Conference is now run over
three days. As usual, the first
two days will deal with a
wealth of topics relating to
cargo shipping and manage-
ment. A third day was added
to allow the CSA a platform
to assist the development of
one vital aspect of regional
shipping, the cruise industry.
Important
dimension
Organised by the CSA Sec-
retariat in collaboration with
the CSA's Cruise Committee,
this third day of presenta-
tions and deliberation has
added an important dimen-
sion to the conference and
has created a formal situa-
tion where operatives in the
cruise industry can receive
and discuss issues of devel-
opment and sustainability.
Jan Sierhuis, who chairs
the Cruise Committee, said
the CSEC cruise seminar on 21
May would "focus on future
trends and the Caribbean
agenda for co-operation in
ensuring that our product
remains competitive".
It will be followed by
a two-day cruise training
workshop focusing on mat-
ters relevant to Caribbean
cruise destinations. The sem-
inar and training workshop
are open to members and
non-members of the CSA. m
MARITIMA DOMINICANA, S.A. II
)I P. 0. Box 1301 Carretera Sanchez Km. 12 1/2, Santo Domingo, Rep. Dom. Telf.: 809-539-6000
SGS Tefefax: 809-539-7200 / 809-539-7300 E-mail: info@mardom.com http:www.mardom.com
CARIBBEAN MARITIME I JANUARY APRIL 2008 39
Port of Curacao is a full service port with:
* Curacao Port Authority; Cruise facilities
* Curacao Port Services; Stevedoring services
* Curacao Drydock Company; Ship repair
* Miami Diver; Underwater ship repair
* Excellent ex-pipe bunkering facilities
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hImh.~
HAZARDOUS MATERIALS
Make hazmat compliance
your New Year resolution
By Harry Lux
Don't run the risk of severe penalties
When you think of the
year ahead and how
to grow your operations,
where does shipping, stor-
ing, using or selling any
type of hazardous materi-
alsfit into your plans?
Depending on your
current compliance levels,
some companies and ports
may need to reprioritise
their project list to include
hazardous material shipping
requirements or they could
lose their ability to buy and
ship these commodities.
Recently, the United
States alone has released
two additional rules on
hazardous materials:
1. The Chemical Security
Anti-Terrorism Standards
require facilities that have
the listed chemicals at or
above the threshold limits
to complete and submit a
top-screen assessment to
the Department of Home-
land Security. This assess-
ment must identify the
chemicals and the security
measures that are being
taken during the manufac-
tui ing, stoi ing, packaging
and shipping I)Iocesses
This will affect many of us
because of the trickle-down
process. For example, if
you are part of the supply
chain, you will eventually
be required to verify your
steps for securing hazmat
shipments in order to go
on dealing with reputable
suppliers.
2. The Federal Motor Car-
rier Safety Administration
(FMCSA) Notice of Enforce-
ment Policy states that a
hazardous materials safety
permit may not be issued
to a motor carrier that has
a crash rate, driver, vehicle
or hazardous material out-
of-service rate in the top
30 per cent of the national
average pursuant to 49 CFR
385.407.
Within the United States,
a company transport-
ing what are considered
to be high consequence
dangerous goods must be
iegisteied, inspected and
* approved to obtain this
permit Losing this abil-
Ity will, in tlin, reduce the
numbI)el of ca lleis which,
of course, can affect your
shipping arrangements.
Knowing your carriers'
capabilities up front helps
to ensure that your ship-
ment will not be delayed by
a permit issue.
If you have not started
your security enhance-
ments yet, start with C-TPAT
(Customs Trade Partnership
Against Terrorism)
Not only will it serve as a
good facility audit for your
operation but, if approved,
it will enhance your clearing
process with US Customs
and most of the major sup-
pliers. It is a great win-win
process to help secure
hazmat shipments.
In addition, there is the
new International Maritime
Dangerous Goods Code,
Amendment 33-06, effec-
tive 1 January 2008. These
rules regulate the interna-
tional transport of hazard-
ous materials by water. With
new regulations comes
change, so you must make
sure your team is aware of
these changes in order to
ensure youl compliance. A
partial list of changes ale:
additions to the Dangei-
ous Goods List, revisions to
basic shipping desculptions,
new shipping description
sequence, recommenda-
tions for safety and security
training, new packaging
instructions, new Division
5.2 labels and Classification
change for Class 3 (flash
point is reduced to 60C c.c.).
Looking at the few
changes listed above, you
should get the idea that the
world of shipping hazard-
ous materials has changed,
is still changing and will
continue to do so as long
as it can be made safer. Yes,
you may see and think of
hazardous materials only
from the perspective of
their intended use for
example, paints, pool sup-
plies, fertilisers, propane,
bleach, etc. However, the
transport and shipping
industry regulates them as
flammable liquids, oxidis-
ers, poisons, flammable gas,
corrosives, etc because of
the hazards associated with
them and the risk involved
in handling them. For this
reason, specific rules must
be followed in order to >
CARIBBEAN MARITIME I JANUARY APRIL 2008 41
"Don't be part of the problem.
Be part of the solution instead"
Ir HAZARDOUS MATERIALS
transport these commodi-
ties safely and securely. The
whole supply chain, from
manufacturer to end-user,
must ensure that hazardous
materials are transported
as safely as possible or face
being fined for non-com-
pliance.
The consequences
The best way to ensure
compliance is to train your
staff. Let them understand
the requirements of these
regulations. This is impor-
tant. After all, education is
the seed for success.
The consequences of
non-compliance whether
or not you are trying to
work within the guidelines
- include severe penalties
such as monetary fines or
blocked cargo. US Hazard-
ous Material Civil and Crimi-
nal Penalty Guidelines have
increased from $32,500
to $50,000 for knowing
violation and to $100,000
if the violation results in
serious illness or severe
injury to any person, death
or substantial destruction of
property.
Imprisonment has been
increased to 10 years in any
case in which the viola-
tion involves the release of
a hazardous material and
results in death or bodily
injury to a person.
You may be shipping
from or into a foreign
"The world of shipping hazardous
materials has changed, is still
changing and will continue to do so
as long as it can be made safer"
country where the US has
no jurisdiction over you and
therefore cannot collect the
fines. But remember, other
countries have requirements
as well and can assess their
fines accordingly. Even if
you beat paying a fine, these
countries can block you
from importing or export-
ing through their country
because of the threat you
pose by not following the
hazardous material regula-
tions.
So don't be part of the
problem. Be part of the
solution instead. Set your
hazardous material compli-
ance target date for 2008
and help make the world a
safer place. m
Harry Lux is a US-based
consultant on hazardous
materials, safety and
security with an intimate
knowledge of the ship-
ping industry
AVIATION BUSINESS & INDUSTRY
COMMERCIAL VESSELS
RMIG
MARINE OPERATIONS PRIVATE CLIENT
TRANSPORTATION YACHTS
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8300 NW 53 Street, Suite 102 Miami, FL 33166 305 477-3755 Fax 305 477-3858 800 926-2811 www.rmig.us
For further information please contact Karen Miller Noreen Salas Jose Bello
42 CARIBBEAN MARITIME I JANUARY APRIL 2008
44 CARIBBEAN MARITIME I JANUARY APRIL 2008
eas the CSA.~e
--U. U UB--S
Gru Shpwer n
I.. U U U U U U U^^^^^^^^^^
' vesel pertor grup ee
in^ a cose-dor esson
Ar THE HUMAN FACTOR
Skilled labour -
the key to viability
and sustained profit
By Burnett B. Coke
With all the discus-
sions on globali-
sation and its impact,
maritime interests can
state without fear of
contradiction that they
were the first of the global
industries. Were it not for
maritime interests, the
earth would have contin-
ued to be perceived as flat
and lines of trade would
never have been created.
Notwithstanding this his-
torical fact, maritime players
ironically have the dubious
distinction of also being
among the last to embrace
the need to evolve with
more recent global trends.
Skilled labour
One such vital area is that
of recruiting, engaging,
developing and retaining
skilled labour at all levels.
Succinctly stated, skilled
labour is the key to viability
and sustained profit. Many
companies will see pockets
of excellence and profit, but
to truly maintain efficiencies
through challenging times,
maritime principals must
begin to tangibly engage
their workforce. And no time
is as good as the present.
Assuming you have
already made your business
resolutions for 2008, I would
strongly recommend that
you attach the following:
1. Improve recruitment
to ensure a better match
between each individual's
talents and the require-
ments of the job, whether
it is stevedoring, operating
a gantry crane or admin-
istrative work. Recruit for
attitude and then train for
skill. Avoid like-mindedness
and instead actively seek
out individuals who are
mavericks and are willing to
challenge the status quo by
being innovative. Business
icon Jake Welch stated that
in manufacturing, busi-
nesses try to stamp out
variance, but with people
variance is everything.
3. Train and develop
multiskilled workforces to
S' ~"- better manage the increas-
ing pressures of volatile
markets, reducing margins,
S mega ports and demanding
consignees. This will serve
to better harness stevedore
and general employee
potential and consequently
profit. Should your company
still stumble, your former
Sluemployees would have been
prepared for alternative
opportunities a gift worth
more than fleeting redun-
p mdancy or retrenchment
S payments.
4. Engage and empower
your staff, allowing them to
see their and the company's
future as interwoven. This
will require your businesses
2. Recruit and identify poten- to communicate openly
tial leaders in your organi- and frequently the vision
station and develop their and strategic directions
capabilities. Strong delegates throughout the workforce,
potentially make strong with structured avenues for
supervisors. Strong supervi- employee feedback. Studies
"Maritime players ironically have
the dubious distinction of also being
among the last to embrace the need to
evolve with more recent global trends"
sors grow into strong manag-
ers. Strong managers make
effective CEOs. This therefore
allows for structured succes-
sion planning. Remember, if
you cannot be replaced, you
cannot be promoted.
from the Gallup organisation
confirm that employees with
an above-average attitude
to their work will generate
38 per cent higher customer
satisfaction scores, 22 per
cent higher productivity and
46 CARIBBEAN MARITIME I JANUARY APRIL 2008
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