Darwin Telemaque, Port Manager, Antigua shares a case study during Caribbean Development Bank's seminar on 'Towards Greater Efficiency: The Transformation of the Caribbean Maritime Port Services Industry' at its 46th Annual Meeting in Kingston, Jamaica on May 19, 2016.

1. April2nd , 2016
PRESENTATION TO CARIBBEAN
DEVELOPMENT BANK

2.  Funding of New Port and Lessons learnt.
 New approaches to Management & labour
 Procurement of Equipment
 Governance Structure/ Relationship to Govt.
 Regional Approach to dealing with Carriers.

3. April2nd , 2016

4.  An understanding of the national economic &
social imperatives.
 The Port must be designed within the
country's strategic objectives.
 Managerial expertise and knowledge of
industry trends
 Do not repeat past futures.
 Port built in 1968 obsolete in1971
 Ports built 50 year cycle.

5.  Identified several options for financing.
 China Civil Engineer Construction Co.
 China Harbour.
 Jan De Nul

7.  Justification for repayment capacity.
 Identification of new revenue streams through efficient
management and streamlining processes.
 Reduction of burden on central Government
 Evaluation of established processes and identification
of gaps.
 Require new technology retooling and training.
 Established clearly defined objectives by department
and financial management systems.
 Forging partnership

8. 12500
13000
13500
14000
14500
15000
2013
2014
2015
2013
2014
2015

9. 0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
2013 2014 2015
Income 2013 2014 & 2015
2013
2014
2015
Income 2013-2015 e Analysis 2013-2015

10.  .
1.27
1.11
0.97
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2013 2014 2015
Operating Expense Ratio (OER) 2013-2015
OER

11.  Increasing supply of port projects around the world [strategic
selection and decision making required]
 Increasing involvement of private sector /PPP in ports
worldwide [focus on returns on equity]
 Increasing market concentration amongst terminal operators
[portfolio managers]
 Terminal operators increasingly active on capital markets [loans
/stocks /bonds /private placements]
 Port Authorities corporatizing [capital markets /growth]
 Financiers reluctant in turbulent times [crises]
 Focus on Value [value-based management of port PPP projects]
 (Marine & Transport Business Solutions, 2014)
5/18/2016
11
Key Trends in the Port Industry

12.  PSA ( Port Authority Singapore)
 HPH ( Hutchinson Port Holdings)
 AMPT
 DPW (DP World)
 Cosco
 Terminal Investment Ltd.
 China Shipping Terminal Development
 Hanjin
 Evergreen
 Eurogate

13.  New industry iniattives- PPT warehouse, tug,
cross docking facilities, implementing the
TOS.
 Modernize tariffs
 To move Antigua up on the ease of doing
business.
 Fit for sustainable use.
 Develop capacity for consolidation and
distribution to the markets.
 Establish national curriculum re: maritime
opportunities.

14.  Understand the changing landscape
 Labour reform: Recruitment, training designed to
fit the intended roles for our needs.
 Introduce changes in the national curriculum to
include port administration.
 Remodel the role of Unions at Ports.
 Establish new labour policy.
 Identify career paths in the industry through
national consultations.

15.  Labor reform is necessary to lower costs and
improve efficiency.
 Reforms might be implemented merits further
understanding of the local political and social
environments and institutional constraints.
 The topic of labor reforms and unions is difficult
in any context, and in the case of the OECS ports,
also reflects the legacy of port practices during
the break- bulk era.

16. 1000ventures.com
Public Private
Partnerships
Human Capital
Development
Finance &
Planning
Infrastructure
Development
Policy & Legal
Framework
APA Strategic Framework

17. 17
Port Labor Environment
• Overstaffing
• Outdated and inefficient
work rules
• Inflated Pay scales
• Lack of predictability
Port Labor
Development in
Logistics and
Transportation
National
Economic and
Trade Policies
Change in markets and
services
Technological
advances
Trade Union Poor training,
limited resources
Government policies to
maintain or create
employment
Out-dated
management
practices

18.  Joint procurement with other ports.
 Training for technology and knowledge
transfer.
 Lack of competition in procurement and
maintenance thus can share.
 Achieve economies of scale, capacity
building, improvement in productivity,
reliability and extended use of equipment.

19.  Technicians must work along with procurement
 After sale servicing and support.
 Vendor must commit to the Port, responsibility for
training and ongoing relationship must exists.
 Procurement of equipment should be linked to lines
serving the area, resulting in supporting skills and
forging strategic alliances.
 Procurement should not be driven by cost.
 Support reliability of service and access to available
spares.
 Can amortize payment period longer and depreciate
our assets.

20. LEADING
CHANGE
SustainabilityOrganizational
development
KNOWLEDGE
RESOURCE
MANAGEMENT
STRATEGY
LEADERSHIP &
VISION
APA Corporate Governance Strategy

21. The Port Authority falls within the portfolio of the
Minister of Finance and Corporate Governance
who is also the Prime Minister of Antigua &
Barbuda.
Board Chairman-Hon. Sen. Maryclare Hurst
Commissioners (5)
Board Secretary
Executive Management

22. . Challenges / Recommendations
 Political nature of appointments.
 Technical nature of the sector, lack of
exposure and opportunities to be trained in the
sector.
 Cyclical nature of executive appointments.
Majority of appointments receive on the job
training.

23. . Challenges / Recommendations
 Skills and knowledge flight.
 Lack of capacity and continuity of programs.
 Lack of confidence in the governance
structure.
 Lack of opportunities and institutional
capacity for continued development.
 Lack of professionalism by technicians.

24. . Challenges / Recommendations
 Establish regional training center for diploma
and certificate programs(CMI).
 Industry related training for board members
and potential board members.
 Regionalized the executive level position.
 Standardization of entry requirements for all
positions.

25.  Current market conditions
 Volumes continue to rise annually.
 Oil prices are down.
 Caribbean improving efficiencies.
 Port charges are constant.
 Global freight rates are down by 50%.
 Regional carriers increasing freight rates.

26.  Consolidation of Carriers
 Previous
 Tropical
 Crowley
 Bernuth
 Kent Lines
 Sea Star
 King Ocean
 Caribbean Feeder Services
 Sea Freight
 Tecmarine
 Sealand,
 Seaboard Marine
 Geest
 CMA / CGM
 Maersk

27.  Consolidation of Carriers
 Present
 Tote (Tropical / Sea Star)
 Crowley (Sea Freight)
 King Ocean
 Seaboard Marine,
 Geest
 CMA / CGM

28.  Explore the establishment of a cabotage system for
sustaining greater regional connectivity.
 Establish a regional intermediary for negotiations
between lines and Ports.
 Engage carriers to forge partnerships in various
areas of operations.
 Create legislation for the attracting investment in
the maritime sector.
 Establish an entity for identification of competitive
options to serve the region.
.

29.  “Whosoever commands the sea commands
the trade: whosoever commands the trade of
the world commands the riches of the world
and consequently the world itself”.- Sir Walter
Raleigh, a pioneer shipping magnate,
 "No matter how information technology
advances, the world trade cannot be
materialized without ports. This is exactly why
every country needs to develop much more
advanced and efficient ports for its prosperity.”
Dr. Mahathir, Prime Minister of Malaysia
.

30.  Prepared by
Mr. Darwin Telemaque, CPE
Port Manager, (Antigua & Barbuda Port Authority)
OECS Port Chairman
Vice – Chairman, Port Management Association of
the Caribbean
Assisted by :
Mr. Curtis Dennie
Operations Manager
Antigua & Barbuda Port Authority
.