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Grapevine

Brazil port investment to drive cruise growth

A significant growth in cruise ship calls to Brazil was forecast in July following a $68 million government investment in the nation’s ports. This investment by the Ports Secretariat reportedly includes $10 million for passenger terminals at Salvador, $42 million at Fortaleza and $16 million in Natal. 

Cruise companies in the region are experiencing an upturn due to a rise in demand from Brazilians as well as an increase in the number of luxury long-haul travellers. Growth is expected to continue through 2014 when Brazil hosts the World Cup and 2016 when the Summer Olympics are held there. Natal port was described as ‘unsuitable for disembarking passengers, resulting in migration to alternative ports such as Maceio’. The new passenger terminal at Natal will provide a further cruise destination and will help in the development of new cruise packages.

 

Barbados government to divest 30 per cent of shares

It was reported in early in July that ‘within a few months’ the Barbados government would float 30 per cent of its stakes in Grantley Adams International Airport, the Barbados National Oil Company and the Barbados Port Authority through an Initial Public Offering (IPO). 

In announcing the IPO during his national budget presentation, the Minister of Finance and Economic Affairs, Christopher Sinckler, said the sale of the shares would be undertaken in a way that would ensure broad ownership and ‘economic democracy and market liquidity’. 

Alluding to the lacklustre performance of the Barbados Stock Exchange (BSE) in recent times, Mr. Sinckler said the public listing of these three major entities was expected to ‘inject some much-needed life into the exchange’.

 

Jamaica’s transshipment hub

Jamaica’s Minister of Industry, Investment and Commerce, Anthony Hylton, says the proposed global transshipment and logistics hub is the lynchpin of Jamaica’s long-term growth strategy. 

Mr. Hylton was speaking at a round-table discussion on ‘Panama’s Logistics Platform – Challenges and Opportunities for Jamaica’ at Jamaica Promotions Corporation (Jampro) in Kingston on 19th July. 

The proposed Jamaica transshipment and logistics hub will have six discrete but complementary elements: the dredging of Kingston Harbour; expansion of port facilities at Fort Augusta and Gordon Cay; a dry dock facility at Jackson Bay, Clarendon; a transshipment facility near Yallahs, St. Thomas; the Caymanas Economic Zone; and a cargo and maintenance, repair and operations (MRO) facility at Vernam Field, Clarendon.

Mr. Hylton said: “We are confident that the proposed global logistics hub will result in some level of macro-economic stability, achieved through growth in the economy and the creation of jobs. With the projected doubling of the capacity of the Panama Canal by 2015 and the resultant increase in transshipment traffic throughout the region, Jamaica must plan and be prepared to maximise the economic opportunities which will arise. We must be ready to stake our claim, carve out our niche and play a larger role in international shipping.” 

It is estimated that the global logistics market will reach a value of US $4 trillion by 2013. According to statistics provided by Jampro, retail logistics services dominate the global market with 63.9 per cent of market value. The Americas account for 35.2 per cent of the global logistics market value.

 

*GRAPEVINE documents reports which have appeared publicly, in the news and circulated on the internet, so as to provide a historical context for the articles appearing elsewhere in this publication. The Caribbean Shipping Association, Caribbean Maritime and
Land & Marine Publications Ltd do not endorse these reports, neither do we take responsibility for their accuracy.