Lifeblood of the country

GUEST COLUMN

FERDI FERREIRA

“THE AEROPLANE may have taken over the bulk of passenger travel, but into the foreseeable future, no technological breakthrough can replace ships as the most efficient and economic form of transportation of goods. If we build up a reputation for fast work of good quality at fair prices, ship repairs and ship building will become one of our great industries” – Lee Kuan Yew, 1970.

Words of wisdom 50 years ago.

The movement of goods by ship continues to be the most efficient and economic form of transportation, hence the reason for efficient, productive and competitive ports. Ports are the lifeline of a country. Right here in TT, our ports take care of us from the cradle to the grave, from the diapers we are wrapped in at birth to some of the ingredients that take care of us at our final disposal.

We cannot airfreight our energy, hence the reason for efficient and competitive ports nationally and internationally. The fastest growing economies in the world today, China, South Korea, Vietnam, Singapore, India, Hong Kong, etc – the Asian Tigers – are economically successful because of the almost maximum dependency on their ports and harbours.

Ports were the key to the success of the Industrial Revolution in the West. And shipping continues to be, in the words of Lee Kuan Yew, “the most efficient and economic form of transportation of goods.”

In an article in the October 12, 2017, T&T Mirror, I identified the problems confronting the Port Authority that has made it not only unproductive and uncompetitive, but almost bankrupt. It is heavily dependent on government subsidies, in spite of the indisputable fact that the Port Authority is in possession of tremendous assets and its strategic and geographic location. But it has many strengths.

The Port Authority of TT (PATT) owns one of the most valuable pieces of real estate, stretching from Katanga – east of Sea Lots to the Maraval River on the Audrey Jeffers Highway – all on the valuable coastline of the Gulf of Paria with over 300 tenants located on approximately 700 acres of prime real estate.

It has been engaged in cargo handling operations for over 100 years.

It has engaged managements of some of the most productive ports in the world in some form of discussion, contract, etc over the past 50 years – Singapore, Houston, Felixstowe, Tilbury, Rotterdam, Ponce in Puerto Rico, and many others.

It has partnered with several port management companies, the last being the Portia Management Company of London. This was a costly and unrewarding adventure that was unsuccessful.

However, the Port Authority had lost almost 50 per cent of its cargo handling operations to its competitor at Point Lisas, whose main source of revenue and continued profitability is its real estate.

Ports are constructed from time immemorial for three simple reasons – receiving, stowing and delivering cargo, including human cargo. Its purpose is to get the cargo on and off the vessel as quickly as possible, stow as conveniently and accessibly as possible and deliver it to the importer as quickly as required.

There is no rocket science in achieving these objectives. Modern technology has provided the cargo handling industry with all the technology required to expedite this process – larger and faster container vessels, computerised electronic equipment, robotics, etc

The turnaround of vessels at ports are no longer classified as characterised in the movie On the Waterfront. It is no longer the domain of physical strength, brutal management and Mafia control. It has become a computerised professional industry demanding the highest standards of management and qualified, well-trained, disciplined employees who understand their functions from the arrival to the departure of the vessels, who understand the costs and consequences of delays to consumers – who sometimes in their ignorance of the cargo handling industry blame the wholesalers and retailers for the frequency of price increases. Therefore, inefficient and uncompetitive ports are a costly burden to the consumer.

I fully support the Prime Minister and the Government to change this narrative, which must have the full support of the union and the other stakeholders. Its responsibility now is to ensure that it selects the right personnel both at the board and management levels to undertake this almost revolutionary task. It cannot be and must not be business as usual.

The port industry is the lifeblood of the country. Like Petrotrin, surgery is required. Just ensure the right surgeon is selected and the right anaesthetic is given to the employees.

This must not be another excursion in political rhetoric and costly adventurism.