Govt gets cheaper deal with Cabo Star

Government has renewed its contract to keep the Cabo Star in service for another two years.

But it the owners, Bridgemans Services Group, have agreed to reduce the daily cost by US$5,000 a day to US$16,000. The existing contract will expire in December 2020.

Works and Transport Minister Rohan Sinanan, at the inaugural post-Cabinet meeting, on Thursday said Stena RoRo, the company which was selected by Nidco to provide a replacement vessel allegedly breached its contractual terms after raising the daily price to US$23,300, up from US$20,500.

Two other companies which had tendered to service the domestic cargo route were also rejected after they too refused to reduce their daily price, the minister said. He did not name those companies.

As a result, Nidco returned to the existing service provider, Bridgemans to renegotiate a cheaper price down from US$21,000.

Sinanan also said two new passenger vessels, APT James and the Buccoo Reef, are on schedule to be delivered in November and the first quarter of 2021 respectively.

He said the Port Authority also intends to increase the number of passengers to travel on the cargo vessel which had been decreased as part of the covid19 measures.