A proposal for port workers to become shareholders in the holding company that will replace the Barbados Port Inc. (BPI) and for Barbadians to also get the opportunity to invest, is set to go before that agency’s board next week.
Chairman of the BPI David Jean-Marie made the disclosure on Wednesday after Prime Minister Mia Mottley enquired about the status of discussions on the move, during debate in Parliament on the Appropriation Bill 2023.
He disclosed that the management team will next Thursday make a presentation to the board on the transformation of the port, which includes not only innovation and expansion plans but “the second wave of corporatisation in which we transition from Barbados Port Inc. to a holding company”.
According to him, that model would see the National Insurance Scheme, the state, workers and workers’ representatives as shareholders in the holding company – a parent company created to buy and control the ownership interests of other companies, its subsidiaries.
“We’ve identified already, nine subsidiary opportunities which would allow . . . ordinary Barbadians to participate,” Jean-Marie said.
“We will develop the necessary business plans, issue IPOs [initial public offerings], inform the public and give every person the opportunity to invest in an area of interest, whether it is the aggregate berth, whether it is cruise business, whether it is the boat repair facilities, whether it is the Shallow Draught marina facilities, whether it’s the Port Community System…,” the BPI chairman explained.
Prime Minister Mottley had earlier pointed to the need for a “significant rethink and expansion” of the Bridgetown Port to reposition Barbados as a domicile of choice for both cargo and people.
She said even with the planned expansion, more would be required.
“The truth is, both the Bridgetown Fishing Harbour and the Bridgetown Port are now in urgent need of major expansion if we are to meet those demands over the next 30 years,” the Prime Minister said.
Jean-Marie agreed and disclosed that the BPI had held discussions with the African Export-Import Bank on the matter.
Noting that there had been three attempts to build out new cruise facilities during his time at BPI, the chairman said; “So, we’re now rethinking how we can get into [public-private] partnerships (PPP) somehow with other entities, perhaps the African Import-Export Bank, in building out not only cruise facilities but cargo facilities that take us into the next 30 to 50 years.”
He also disclosed, in response to other queries from the Prime Minister, that the BPI has been in consultation with representatives of global shipping lines to determine the demand for business between Africa and Barbados, and South America through Barbados.
“Those conversations are ongoing. We have prepared sister port agreements. Some of them are in draft. We have one with the Port of Mombasa [Kenya] and a few others that we are engaged with,” Jean-Marie said.
On the issue of efficiency, he disclosed that the BPI was spending $30 million on cargo handling equipment to reduce truck turnaround times to 35 minutes.
He acknowledged that the BPI had fallen short of that target but intended to rectify that.
“[There are] five straddle carriers on order, expected by August; five more to be ordered by next board meeting. That’s an investment of $30 million in order to ensure that our trucks are able to get the containers out of the port in a timely manner. Of course, we’re looking at working hours of the port in addition to those things.
“So, we are looking actively at methods and ways to reduce the time and the cost of operating at the port and eliminating that wastage of foreign exchange,” Jean-Marie said, noting that BPI spends about US$10 million in having containers outside the port for long periods.
He also reminded that freight costs would be reduced by about 10 per cent, as the Bridgetown Port transitions to a Free Out port, which means that all charges are collected locally, and the port handles all loading and unloading of vessels from April 1.
Jean-Marie reiterated the point he made on day one of the Estimates Debate on Monday that those cost reductions are expected to be passed on to consumers. (DP)
