Phillips lauds maritime sector TRANSPORT AND Works Minister, Dr. Peter Phillips, during his contribution to the 2001/02 Sectoral Debate in Parliament, said the Government's investment in the maritime sector has been reaping success. "Our policy of giving priority to modern infrastructure and facilities, quality service, and a stable industrial relations environment has 'paid-off' in placing our port sector firmly on the path to world-class status", the Minister observed. The Minister reported that the port had recorded significant growth in throughput during the year, continuing a trend that began in the mid-1990s. Last year, the port recorded 836,372 Twenty-foot Equivalent Units (TEUs) compared to 653,009 TEUs in 1999, representing an increase of 28.1 per cent, he said. Transshipment Dr. Phillips explained that Transshipment had accounted for 81 per cent of the over all volume, which confirmed the port's status as "a dedicated Transshipment terminal, the first such facility in the Americas. He said this growth period had followed the second expansion in the mid 1990s, which doubled the terminal's capacity, noting that the additional berthing and equipment facilitate a smoother operation for existing clients, as well as the accommodation of new clients. Pointing to the government's commitment to maintain world-class standards on the port, Dr. Phillips informed that the Port Authority had embarked on a $1.6b expansion programme, scheduled to be completed in November of this year. "However, under the programme, not only will we expand the capacity to 1.2 million TEUs, but we will have developed the most technologically equipped port in the industry, internationally", he said. The Minister explained that the total value of the expenditure to be undertaken to complete this third phase of the expenditure is $2.4b. In addition, another $2.5 b will be allocated for capital programme, including, infrastructure in the Montego Bay Free Zone, completing the new Pilotage Office and dredging of the channel, he outlined. Other ports
development Noting that the success of the Port Authority at the Kingston Container Port made it possible for port development in other parts of the country, he cited work done at Ocho Rios and Montego Bay as well as the major development underway for Port Antonio Marina Project. This involves the construction of a five-star mega-yacht marina and a boatyard and an area of complementary services encompassing the entire harbour area. In this regard, the Minister paid tribute to the president and chief executive officer of the Port Authority of Jamaica, Noel Hylton. "As we move into the 21st Century, there are development programmes on the drawing board for the next decade that are designed not only to expand, but also to pursue the objective of maintaining world-class standards in the sector," Dr. Phillips observed. "The shipping industry is among the most competitive in the world. If we are to keep pace, we must not only maintain an increased capacity as we are doing with our expansion programmes, but we also have to be absolutely efficient and cost competitive. This is particularly so for a port like ours, which does not have a vast domestic market to guarantee that the major shipping lines must always pay attention to us," the Transport Minister remarked. Terminal
management Turning to the matter of terminal management, the Transport Minister said it is with a view of maintaining the levels of competitiveness that the Port Authority had continued to explore initiatives to restructure the management and operations of the container terminal. Dr. Phillips highlighted the fact that terminal management worldwide is becoming increasingly specialised with stevedoring companies, such as the Singapore Port Authority, dominating this segment of the industry. He added that most of the prominent ports in the region directly competing with Jamaica in the transhipment market are under the management of some of these international stevedoring companies, mostly through ownership, joint venture, or concession arrangements. "These alliances brokered in our region are intended solely to achieve a better competitive positioning and better returns to investors. Jamaica cannot ignore the trends in the market place. We must take the necessary steps to achieve the world-class standards of productivity required to effectively compete," Dr. Phillips noted. Minister Phillips said industry experts predict that in the very near future, sea transport of world trade will revolve around only five mega transhipment (hub) ports, strategically positioned in specified regions. The Minister added that Central American and Caribbean region had been identified as one of those regions and a number of ports will be competing for selection as the hub port of the region. He said the basic criteria on which the ports will qualify were the ability to accommodate the new generation of large and sophisticated vessels based on size, harbour configurations and terminal facilities; adequacy and quality of equipment and technological systems; management efficiency and competitiveness and the ability to provide the required capital for ongoing expansion and upgrading of infrastructure and equipment.
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