Cost savings in new port change

The transition to a new operating model at the Port of Bridgetown will reduce container-related port charges by ten per cent.

Chief Executive Officer Mr David Jean-Marie announced that effective April 9th, 2023, Barbados Port Inc. (BPI) will transition the Port of Bridgetown into a full Free Out Port. At the same time, he said BPI will move stevedoring services in-house.

Jean-Marie explained, “These changes are expected to improve the efficiency and productivity of overall port operations while reducing container-related port costs to customers by ten per cent for 20-foot standardized shipping containers.”

Assuming an annual throughput of 100 000 20-Foot Equivalent Unit (TEU) containers at the Port, distributed by imported, exported, transhipped and empty container categories, he said the net saving to customers in Barbados from the proposed transition is approximately BBD$7.6 million annually.

The savings per TEU in the dry container category would be $162.27 while that per refrigerated TEU would be $168.14 and that for Loaded Exports will be $63.22 per TEU.

Outlining the benefits the new model will bring, Jean-Marie noted that shipping lines would have a more transparent ocean freight, while customers will benefit from a lower Cost Insurance and Freight (CIF) value and consequently lower imposts.

He added that BPI’s transition to a full Free-out Port will streamline billing arrangements. All the cargo-specific costs previously charged through the shipping line as part of the ocean freight, as well as the new consolidated stevedoring services charge and revised Free Alongside Ship (FAS) charge, will now be collected by the Port from local importers/consignees.

The Port head noted, “All BPI operational, logistics and billing systems have been adapted to ensure a seamless transition to our taking responsibility for stevedoring. We are confident that this transition is in the fairest interest of our respective customers as we continue to strengthen the Port of Bridgetown’s international trade regime.”

Following discussions on the changes that will result from the transition to a full Free Out Port, President of the Barbados Chamber of Commerce and Industry (BCCI), Anthony Branker, said, “We are supportive of BPI’s move as it will not result in an increase in costs to importers, but rather a minimal costs saving by the ten per cent savings in port cost. The BCCI recognizes that the BPI has no control over ocean freight rates but has committed to working with the BPI as this transition is made and stands ready to offer any clarifications on these changes outlined.”