Jul 2009 Financial News

Ports grapple with 40 per cent trade decline

Jul 16, 2009

Trinidad’s two ports are reporting significant declines in volumes in excess of 30 per cent as the global recession takes it toll on international and regional trade.

The Port-of-Spain port is reporting a 20 per cent decline in incoming cargo, while export volumes are down 31 per cent for the first half of the year. As a result, Chief executive, Wieger Koornstra, said the port is actively cutting costs, improving efficiency and working on attract more transhipment business to make up for the revenue shortfalls.

Koornstra said the picture is not all doom and gloom, as the Port has been encouraged by its strategy thus far in gaining new transhipment business since the volume of containers this year in comparison to the same time last year has increased. He said 950 containers are moved per day and of that amount, 300 represent imports per day and 150 containers represent exports per day. The balance of about 500 containers, represents transhipments or container units “on route” to another destination. Specifically Koornstra said automobile shipment imports are down by 35 per cent and bulk cargo of grain and other commodities are also down.

“The port has been able to replace the lost cargo from the local import-export business, with increased activity from transhipments. Consequently, the port’s total volume in containers in first half year of 2009, is about three per cent higher than the first half of 2008 - and we intend to expand this business even more,” Koornstra added. He said the market has become competitive for exporters because demand is down and at the same time credit facilities at financial institutions are difficult to obtain.

Apart from looking for other business opportunities, Koornstra said to weather the economic downturn, the port is working on improving its efficiency. For instance, to deal with labour costs, he said the port is working on implementing new working practices which were enshrined in the collective agreement for 2008 to 2011. In addition, the port will be upgrading its technology and equipment to improve delivery, productivity and efficiency. As a result, the port has been able to handle higher volumes than before, despite the slowdown in some areas of its operations.

“In August the Port-of-Spain port is expected to handle one of the largest vessels to dock at our port, on its way through the Panama Canal. The vessel is 300 metres long and 32 metres wide. “The port is also in the process of receiving six new terminal trucks as well as 16 new terminal trailers... This will improve on delivery of cargo and support our strategy to improve efficiency,” he said.

Koornstra said Customs and Excise division is also doing its part to support the port’s service to traders with the implementation of a new terminal operating computer system. “Implementation of the Electronic Data Interface, would assist the port and Customs and Excise to communicate better with stakeholders on the port. For instance, transactions will soon be completed electronically and so reduce the amount of paperwork and running around needed to clear containers,” he said.

Ashley Taylor, acting president of the Point Lisas Industrial Port Development (Plipdeco) also reported declines in business in the first part of the year when compared to last year. Gregory Aboud, president of the Downtown Owners’ and Merchants Association endorsed move by port operators to upgrade their operations, but he said there was room for improvement.


Article by: Nadaleen Singh
Source: Trinidad Guardian
http://guardian.co.tt/business/business/2009/07/16/ports-grapple-40-cent-trade-decline
Date: 16-07-09