Grantley Stephenson - Contributor
Dean of the Consular Corps of Trinidad and Tobago, Krishna Narinesingh (left), converses with Minister of Foreign Affairs and Foreign Trade, K.D. Knight (centre), at the start of a two-day CARICOM Consular Conference held at the Pegasus Hotel in St. Andrew from March 11-12. Looking on is Arnold Foote, Dean of the Consular Corps in Jamaica.Norman Grindley/Deputy Chief Photographer
THE CARICOM Single Market and Economy (CSME) can and will help to promote the development of the maritime industry as it has created a situation where a number of the elements which were repelling intra-regional trade and investment can be solved. The positive elements created are:
Overcoming the volume and size constraints of individual island volumes by the creation of a single economic space. This can give rise to new regional opportunities for trans-shipment, consolidation, feedering and port development and expansion.
Rationalisation and or reallocation of maritime resources and activities.
Increases in the size of markets by the elimination of national economic frontiers may also serve to reduce the cost of maritime transport cost and the significant variations in freight rate as regional or sub-regional economies of scale develop.
Increase the provision of marine services as a result of the progressive removal of trade restrictions in products and services, the right to establish a commercial presence, free movement of capital and professional persons will enable shipping service providers to operate in number of member state territories.
Harmonisation of legislation which is fostering easy movement of cargo, registration and statutory requirements for companies and monitor competitive practices. Crucial to the work done in harmonisation is that of Customs procedures and other Customs administrative measures, thus further easing the entry of goods across the CSME market.
HURDLES TO BE OVERCOME BY CSME
In spite of the improvements in the Caribbean maritime environment which the CSME has created, there are still a number of matters which must be addressed so as to ensure that the creation of the CSME maximises the positive effect on the maritime industry. These issues are:
Creation of a singular and comprehensive policy instrument (with the help of industry) or measure of the CSME that is specifically designed to promote the development of the region's maritime sector.
Further work to remove the remaining restrictions in trade in goods and a plethora of licensing regimes, as these conditions serve to constrain growth in regional trade.
Increase public education so as to reduce the element of caution towards the CSME that lingers. This element of caution appears most acute in the Less Develop Member States, as it is clear that the ability to exploit opportunities from CSME varies significantly across the region as they seek to balance the changing requirements without jeopardising the small and fragile economies.
PRIVATE SECTOR CAPACITY TO EXPLOIT NEW OPPORTUNITIES
The enhancement of regional capacity can be facilitated or incubated through the Caribbean Shipping Association (CSA). This would require changes in organisation and strategic direction within the CSA such as:
Promulgation of industrial standards.
Additional training programmes for improvements in quality of services and the profile of the service provider.
Lobbying and advocacy at the regional level.
The private sector is also encouraged to create alliances at the individual company level in various member states by building upon current relationships with shipper's consignees, port operators and carriers.
The formation of the CARICOM Single Market Economy will create new and expanded opportunities for the shipping and maritime industry. These opportunities will, however, take some time to materialise. As we have learnt from the European Union, creating a single market economy is a work in progress. The region's industries, inclusive of the Shipping Association of Jamaica, is preparing themselves and their members to harness these opportunities.
EDITORS NOTE: The above is an edited version of an address by Mr. Grantley Stephenson, chairman and CEO of Kingston Wharves, delivered at a dinner hosted by the Consular Corps of Jamaica at the Pegasus Hotel on March 12.
