Government’s decision to create a dedicated berth for cargo ships will save this country millions of dollars and help reduce the cost of living.
Minister of Energy and Business Development Senator Lisa Cummins made it clear that the government is seeking to lower the costs associated with doing business in this country and one such way is by bringing down some of the charges of importing goods in the island.
The leader of Government Business in the Senate told that Chamber that while cruise ships are given priority to berth, cargo ships are often required to wait offshore until a dock becomes available at the Bridgetown Port. This wait results in thousands of dollars in demurrage fees being charged by shipping lines.
“Demurrage charges can be accumulated when a ship has to remain offshore. Every single day that container is on board that ship and is not discharged, a charge is levied against the importer. It varies from cargo line to cargo line. It can be as small as US$5 000 a day, in some instances it can be smaller, but it can go as high up as US$10,000 a day.
“So let’s keep that cargo ship offshore for three days, it finally comes in and takes that cargo off, and each of the regulatory agencies; agriculture, health, customs, then veterinary health in some instances, have to clear those goods in that 20 foot or 40 foot container. The port will give you 72 hours in principle.
“Port charges will accumulate after a certain time and that cargo has not been cleared. You have duties and tariffs that are being paid and then you come back to having those demurrage charges adding up. If that container stays in the port for more than five days, in some instances, those demurrage charges can be in excess of US$100,000 plus. Those are costs that influence the cost of living in the country,” she argued.
The former Minister of Tourism and International Transport insisted therefore that it is necessary to ensure that those ships are allowed to discharge their cargo as soon as possible after arriving at the Bridgetown Port.
“So Barbados will now have a brand new cargo berth that allows cargo ships to come in when they arrive without having to wait offshore for cruise ships to go out. That’s one part of solving the problem on a permanent basis over which we have control. Let us make sure that the ships can come in when they come and that they can come in on a 24-hour basis,” she told the Upper House, while leading off the debate on the Appropriations Bill 2023 earlier on Monday morning.
(JB)
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