2. Regional Strategy in Freight Logistics, Maritime Transport and Trade Facilitation The Shipping industry is the oldest industry in the world next to prostitution. Noah’s Ark was the largest ship built until the late 19C when giant metal ships were built.

3. Noah’s Ark was said to have been the largest sea-going ever built Until the late 19 th. Century when giant metal ships were first constructed. (Genesis 6: 14-16) 450 feet long (137.16 Meters) 75 feet wide (22.86 Meters) 45 feet high (13.716 Meters) Its length to width ratio of 6:1 provided excellent stability on the high seas. Modern shipbuilders say it would have been almost impossible to turn over. TOTAL FLOOR SPACE – 100,000 sq. ft. – more than 20 basket ball courts. CUBIC VOLUME – 1,518,000 cubic feet – capacity of 569 modern railroad stock cars.

5. Structure of Caribbean Maritime Industry 1.Global Shipping Network 2.Regional Shipping Network 3.Sub-Regional Shipping Network (Schooner Trade)

6. CLASSIFICATION OF CARIBBEAN PORTS Source: Pinnock & Ajagunna 2010

7. CARIBBEAN PORT PRODUCTIVITY Source: Caribbean Shipowners Group 2009

8. The Impact of Containerization 8

9. Caribbean Impact? In 2010 it is said that approximately 47 million Teus – 8-9% of world container throughput was handled by Latin America and the Caribbean. Global Throughput – 546 million Teus. Far East/South East Asia – 60% N/West Europe – 15% North America – 10%

10. World Port Throughput Estimated World Port Throughput YearTEU ('000s)% pa Growth 2008524,8175.9% 2009476,982-9.1% 2010546,01714.5% 2011F589,9748.1% 2012F636,2847.8% Note: Includes loaded, transshipment and empties Source: Drewry Maritime Research Estimated Caribbean/Central America Port Throughput YearTEU '000% pa Growth 200819,3005.9% 200917,887-7.3% 201019,85311.0% 2011F21,4277.9% 2012F22,6605.8% Note: Includes loaded, transshipment and empties Source: Drewry Maritime Research Caribbean Port Throughput

11. Big ships are coming.. And lots of them 185% Growth

13. Assumptions $400/MT bunker Canal tolls based on 2011 proposal Current ship charter rates Inland move by rail 4000 TEU SHIP For a typical Asia-USEC Voyage shifting to an 8,000 TEU Vessel expands the market reach To the USEC ports 8,000 TEU Vessel

14. PANAMA CANAL EXPANSION … … implications for regional transhipment ports Key Ports to watch

17. 1914 - ANCON

18. 2011

19. Source: Panama Canal Authority

20. NEW LOCKS 14,000 TEU’s

21. 2014 – WHAT WILL HAPPEN? Geographical (and political) considerations

22. Source: UNCTAD 2011

23. TRADE ROUTES AND VESSELS SERVING THE CARIBBEAN Source: Containerization International 2011.

25. Current vs Future Port Capacities (Regional Ports) Regional ports are all gearing up to boost capacities ahead of the Panama Canal expansion

27. Regional Policy Implications Regional Trade Passenger/Cargo Vessels – Manned by students of the Caribbean Maritime Institute and hospitality students drawn from the Caribbean. Re-development of the Schooner industry. Lessons from Cricket World Cup 2007

28. Challenges facing Schooner Industry in the Caribbean Vessels safety Lack of training and certification of crew to meet IMO STCW 95 standards. Age of vessels and poor maintenance. Vessel are not fitted and equipped for carrying cargo, for example not refrigerated for carrying bananas. Inability to access insurance for cargo and vessel. Some vessels carry both passenger and cargoes but facilities are sub-standard for these purposes.

29. Challenges facing Schooner Industry in the Caribbean Cont. Inability to meet inter-island export regulations – for example, in carrying bananas, pallets are removed to increase cargo carrying capacity thereby exposing cargo to severe damage making export uncompetitive. A significant percentage of schooner fleet in Dominica is old work boats that could no longer meet EU regulations that were transfered under EU funding to the Caribbean. These boats were not equipped for carrying cargos that they are employed to do. Inability of schooner owners to organise themselves into an organised industry with lobby powers.

30. Challenges facing Schooner Industry in the Caribbean Cont. Lack of supporting infrastructure, including storage of cargo. Shortage of dry dock and maintenance facilities, as boats have to go to Trinidad or the French Island of Martinique and Guadeloupe for which payment has to be in Euros. Lack of proper mooring facility resulting in significant damage to vessels during the passing of hurricanes. Inability to access development and trade financing. There has been a decline in the percentage of cargoes carried by schooner in the region.