'Efficient' Port of Spain port structure expected in 2025

THE PORT Authority of Trinidad and Tobago has pre-qualified two bidders to advance in the public-private partnership (PPP) process for the Port of Port of Spain.

A Cabinet-appointed committee evaluated six local and international bidders after the Port Authority issued a public invitation to pre-qualify in July 2024.

The Port Authority expects to select a preferred partner in 2025.

The announcement comes as businesses and consumers face heightened concerns over ongoing port delays exacerbated by industrial action and a court injunction. With the holiday season at its peak, many worry about receiving essential shipments on time.

Minister of Works and Transport Rohan Sinanan praised the project's progress.

“We have taken a very considered and deliberate approach to this project, following international best practice, to ensure that we make the right choice for the future of the Port of Port of Spain,” he said in a statement, published on PATT’s website on December 10.

The Inter-American Development Bank (IDB), ALG Global Infrastructure Advisors, and the Global Infrastructure Facility (GIF) provided technical assistance, helping with project structuring, procurement documentation, and financial assessments throughout the bidding process.

Port Authority chairman Lyle Alexander highlighted the project’s significance for the national economy.

“This represents an important step in our strategy to grow the port’s potential and increase its competitiveness by deploying maximum port capacity in a phased manner,” Alexander explained. He said the purpose was to improve the experience for port users, businesses, and the wider national community.

Alexander also commended the quality of submissions, noting the competitive interest reflects the port’s potential as a profitable enterprise.

The proposed PPP initiative follows a build-rehabilitate-operate-transfer (Brot) model with a 25-year concession. Under this structure, the private partner will manage key operations such as container handling, roll-on/roll-off services and general cargo activities. Terminal services, including weighing, cleaning and cargo stuffing, will also fall within the project’s scope.

The next phase involves shortlisted bidders submitting detailed proposals, with the final selection anticipated in 2025. The ministry said the approach aligns with global port management standards, modernising infrastructure, improving operational efficiency, and increasing the port’s competitiveness in regional and international shipping markets.

The PATT says it envisions the PPP as a transformative project that enhances TT’s logistics capabilities while encouraging economic growth through increased trade and investment.

Businesses: Not all rosy

While optimistic about the potential benefits of the PPP, businessman and chairman of the Confederation of Regional Businesses Vivek Charran said he was more concerned about the immediate business challenges, particularly during the holiday season.

Charran told Business Day port disruptions, worsened by industrial action in and before November l, created a backlog and complicated the timely clearance of goods.

“If the public-private partnership allows the port to become more efficient, and it allows business to be transacted quickly and efficiently through the port, then that’s a win-win scenario.

"But we’re not there yet,” Charran said. “The reality is that disruptions to the port create backlogs, and backlogs take time to sort out properly."

With the Christmas season in full swing, Charran said the timing of the current port delays was “inopportune” at best. He said businesses rely on early shipments to ensure products are on shelves in time for the holiday shopping season.

However, the backlog resulting from industrial action (ended at least temporarily by an injunction in November) means that goods arriving now will face significant delays.

“Shipments can also be subject to Bureau of Standards inspections, which take time," he added. "Even though we hope for a last-minute rush, the concentrated commercial activity in a shorter period makes it harder for businesses to maximise sales.

“The backlog means that new shipments will take longer to sort out because of the accumulated containers that need processing first. And the customs officers are stretched.”

Charran also raised concerns about the longer-term economic effects.

“This year is perhaps more difficult for some businesses than previous years, especially with the forex shortage.”

Charran said he worried more about the following Christmas season.

“The commercial activity this year is very important, because, based on predictions, 2025 is going to be tough. The forex situation is likely to worsen, and if the port issues are not resolved, it will impact businesses even more next year. This could make the Christmas season of 2025 even harder.

“I want to be optimistic and see businesses succeed, but we must face the reality on the ground. Unless things change drastically, we might see continued struggles going into 2025.”

Ramon Gregorio, president of the Greater Tunapuna Chamber of Industry and Commerce, said members feared a backlog would affect Christmas sales.

“We had some initial reports but now things have settled down and everyone is trying to get back to normal before Christmas.”

He said he would engage with the members for more feedback.

Couva/Point Lisas Chamber of Commerce president Deoraj Mahase has been among the most vocal and consistent voices calling for a solution to the port’s chronic issues.

He told Business Day on December 11 that the chamber’s members had reported significant progress with port operations in recent weeks.

“Increased volumes are having an impact on handling time, but that is generally expected at this time of the year.

“The issue of the Port of Spain CES (customs examining stations) remaining closed is impacting importers negatively and they look forward in anticipation of its opening in January.

“The general consensus as it relates to the Port of Point Lisas indicates the usual seasonal increase in volumes, but generally operations are satisfactory. The CES at Point Lisas is functional, with a higher turnaround time for examination and delivery.”

Mahase promised to discuss his concerns about the PPP project at the Port of Port of Spain, but needed more time to do so.

In November, the Joint Chambers of Commerce of TT, comprising the TT Chamber of Industry and Commerce, the American Chamber of Commerce and other major lobby groups, issued a collective call for urgent government intervention to resolve the port’s issues.

It found the industrial action, primarily driven by disputes over wage negotiations and working conditions, was causing significant disruptions, including vessel bypasses and increased operational costs.

The chambers said these issues were harming the national supply chain, which could deter exports and negatively affect businesses of all sizes. They complained that the failure to resolve the situation was already creating economic strain, especially with challenges related to forex availability. The chambers urged the government to act swiftly to prevent further damage to the economy and businesses, particularly in light of the high volume of shipments expected during this period.

Roots of protest

The industrial action, rooted in ongoing wage negotiations between the Seamen and Waterfront Workers Trade Union (SWWTU) and the Port Authority, was particularly contentious. The union had been negotiating over wage increases and better conditions after workers had been operating under an expired agreement for years.

In 2014, under former minister Stephen Cadiz, efforts were made to extend the existing wage agreement but the negotiations were ultimately unresolved since then.

In response to the port workers' protests, the PATT took legal action by seeking an injunction from the Industrial Court on November 19 to halt the ongoing industrial action by the SWWTU. The court granted the injunction, ordering workers to cease their protests and immediately return to work.

SWWTU president Michael Annisette expressed frustration that the authority opted for legal action rather than engaging in further negotiations. He said the union would respect the court's decision but emphasised the ongoing issues surrounding wage negotiations and working conditions that had led to the protests.