-
- Public-Private Alliances Key to Caribbean Trade Expansion
BRIDGETOWN, Barbados – The Caribbean’s ability to expand trade hinges on establishing intra-regional logistic partnerships and building stronger public-private sector alliances. This was the consensus among policymakers, private sector leaders, and technical experts convened by the Caribbean Development Bank (CDB) to discuss imperatives for facilitating trade in the subregion at the recent seminar, Accelerating Development: Optimising Trade Connectivity and Logistics for Growth.
Labour efficiency, digitalisation, and upgrading infrastructure to enhance port operations were among the areas identified as levers for triggering immediate improvements. Additionally, consistent regulatory environments to support business operations were called for, along with regional collaboration to create hubs and economies of scale, despite the complex political landscape.
CDB’s director of economics, Ian Durant, presented findings from separate studies the bank commissioned on logistics performance in Grenada and Saint Lucia last year, which revealed that “almost identical” constraints were affecting both countries. The issues include limited berthing capacity and equipment, restricted container loading times, high shipping rates, outdated tariff structures, absence of cold storage at some points, long inspection times, aging port infrastructure, and inefficient labour practices.
Durant stressed the importance of unified public and private sector voices to address these challenges.
“One of the core recommendations [from the studies] is the need to build and strengthen consensus around what should be done to improve logistics between the public sector and the private sector,” he said.
Darwin Telemaque, port manager at the Antigua and Barbuda Port Authority, voiced concerns that inefficiencies at regional ports hinder maritime traffic.
“When you look at why we should improve the efficiencies of labour, digitalisation, and infrastructure, it is because our ports are quintessential to our existence,” he said.
Shipping Association of Jamaica, president Corah Ann Robertson-Sylvester, indicated that a good example had been set by Jamaica where privately-owned ports have been brought up to a “first-world standard” and, due to the country’s strategic location directly in front of the Panama Canal, serve as a hub for inter-regional cargo; also cited competitive intra-regional trade as a catalyst for the growth of shipping and supporting industries, stating:
“We need to look at how we’re going to move the cargo intra-regionally, between our islands, at competitive cost. You have to have the business there, and then the shipping lines will follow.”
Senior director of the Canada Commercial Corporation, Wilson Pearce discussed the challenges posed by a lack of economies of scale and inconsistent regulatory environments. He called for the public sector to establish a consistent, reliable environment to facilitate business operations.
“What can the public sector do to establish a consistent, reliable environment at a regulatory level, with respect to the environment for the operations? A lot of our companies, when we talk to them, start to pull away: they’re unsure about the regulatory environment, it’s inconsistent, and you’ve got a series of relatively small markets for which you have to make major adjustments in terms of how you interact,” he explained.
World Bank program leader for the Caribbean and Latin America, Fatima Arroyos, advocated for “a multi-sectorial perspective,” urging a regional approach despite the complex political landscape. “Instead of thinking about individual countries trading, there is a need to think about building hubs and economies of scale. But at the same time, what we see in reality is that politically, the discussion is much more complex than that. So, how can we move forward in the context of the political economy in the region?”
Accelerating Development: Optimising Trade Connectivity and Logistics for Growth was one of several knowledge-sharing events hosted by the CDB at its 54th annual meeting which was held in June in Ottawa, Canada.
