PRESENTATION TO CARIBBEAN DEVELOPMENT BANK

Transcription

1 PRESENTATION TO CARIBBEAN DEVELOPMENT BANK April2nd, 2016

2 Funding of New Port and Lessons learnt. New approaches to Management & labour Procurement of Equipment Governance Structure/ Relationship to Govt. Regional Approach to dealing with Carriers.

3 April2nd, 2016

4 An understanding of the national economic & social imperatives. The Port must be designed within the country's strategic objectives. Managerial expertise and knowledge of industry trends Do not repeat past futures. Port built in 1968 obsolete in1971 Ports built 50 year cycle.

5 Identified several options for financing. China Civil Engineer Construction Co. China Harbour. Jan De Nul

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7 Justification for repayment capacity. Identification of new revenue streams through efficient management and streamlining processes. Reduction of burden on central Government Evaluation of established processes and identification of gaps. Require new technology retooling and training. Established clearly defined objectives by department and financial management systems. Forging partnership

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9 Income e Analysis Income &

10 . 1.4 Operating Expense Ratio (OER) OER

11 Key Trends in the Port Industry Increasing supply of port projects around the world [strategic selection and decision making required] Increasing involvement of private sector /PPP in ports worldwide [focus on returns on equity] Increasing market concentration amongst terminal operators [portfolio managers] Terminal operators increasingly active on capital markets [loans /stocks /bonds /private placements] Port Authorities corporatizing [capital markets /growth] Financiers reluctant in turbulent times [crises] Focus on Value [value-based management of port PPP projects] (Marine & Transport Business Solutions, 2014) 5/18/

12 PSA ( Port Authority Singapore) HPH ( Hutchinson Port Holdings) AMPT DPW (DP World) Cosco Terminal Investment Ltd. China Shipping Terminal Development Hanjin Evergreen Eurogate

13 New industry iniattives- PPT warehouse, tug, cross docking facilities, implementing the TOS. Modernize tariffs To move Antigua up on the ease of doing business. Fit for sustainable use. Develop capacity for consolidation and distribution to the markets. Establish national curriculum re: maritime opportunities.

14 Understand the changing landscape Labour reform: Recruitment, training designed to fit the intended roles for our needs. Introduce changes in the national curriculum to include port administration. Remodel the role of Unions at Ports. Establish new labour policy. Identify career paths in the industry through national consultations.

15 Labor reform is necessary to lower costs and improve efficiency. Reforms might be implemented merits further understanding of the local political and social environments and institutional constraints. The topic of labor reforms and unions is difficult in any context, and in the case of the OECS ports, also reflects the legacy of port practices during the break- bulk era.

16 APA Strategic Framework Policy & Legal Framework Human Capital Development Infrastructure Development Finance & Planning Public Private Partnerships 1000ventures.com

17 Port Labor Environment Out-dated management practices National Economic and Trade Policies Change in markets and services Port Labor Development in Logistics and Transportation Technological advances Trade Union Poor training, limited resources Overstaffing Outdated and inefficient work rules Inflated Pay scales Lack of predictability Government policies to maintain or create employment 17

18 Joint procurement with other ports. Training for technology and knowledge transfer. Lack of competition in procurement and maintenance thus can share. Achieve economies of scale, capacity building, improvement in productivity, reliability and extended use of equipment.

19 Technicians must work along with procurement After sale servicing and support. Vendor must commit to the Port, responsibility for training and ongoing relationship must exists. Procurement of equipment should be linked to lines serving the area, resulting in supporting skills and forging strategic alliances. Procurement should not be driven by cost. Support reliability of service and access to available spares. Can amortize payment period longer and depreciate our assets.

20 APA Corporate Governance Strategy LEADERSHIP & VISION Organizational development LEADING CHANGE STRATEGY RESOURCE MANAGEMENT Sustainability KNOWLEDGE

21 The Port Authority falls within the portfolio of the Minister of Finance and Corporate Governance who is also the Prime Minister of Antigua & Barbuda. Board Chairman-Hon. Sen. Maryclare Hurst Commissioners (5) Board Secretary Executive Management

22 . Challenges / Recommendations Political nature of appointments. Technical nature of the sector, lack of exposure and opportunities to be trained in the sector. Cyclical nature of executive appointments. Majority of appointments receive on the job training.

23 . Challenges / Recommendations Skills and knowledge flight. Lack of capacity and continuity of programs. Lack of confidence in the governance structure. Lack of opportunities and institutional capacity for continued development. Lack of professionalism by technicians.

24 . Challenges / Recommendations Establish regional training center for diploma and certificate programs(cmi). Industry related training for board members and potential board members. Regionalized the executive level position. Standardization of entry requirements for all positions.

25 Current market conditions Volumes continue to rise annually. Oil prices are down. Caribbean improving efficiencies. Port charges are constant. Global freight rates are down by 50%. Regional carriers increasing freight rates.

26 Consolidation of Carriers Previous Tropical Crowley Bernuth Kent Lines Sea Star King Ocean Caribbean Feeder Services Sea Freight Tecmarine Sealand, Seaboard Marine Geest CMA / CGM Maersk

27 Consolidation of Carriers Present Tote (Tropical / Sea Star) Crowley (Sea Freight) King Ocean Seaboard Marine, Geest CMA / CGM

28 Explore the establishment of a cabotage system for sustaining greater regional connectivity. Establish a regional intermediary for negotiations between lines and Ports. Engage carriers to forge partnerships in various areas of operations. Create legislation for the attracting investment in the maritime sector. Establish an entity for identification of competitive options to serve the region..

29 Whosoever commands the sea commands the trade: whosoever commands the trade of the world commands the riches of the world and consequently the world itself.- Sir Walter Raleigh, a pioneer shipping magnate, "No matter how information technology advances, the world trade cannot be materialized without ports. This is exactly why every country needs to develop much more advanced and efficient ports for its prosperity. Dr. Mahathir, Prime Minister of Malaysia.

30 Prepared by Mr. Darwin Telemaque, CPE Port Manager, (Antigua & Barbuda Port Authority) OECS Port Chairman Vice Chairman, Port Management Association of the Caribbean Assisted by : Mr. Curtis Dennie Operations Manager Antigua & Barbuda Port Authority.