LETTER

McKeeva Bush writes to Chamber of Commerce

Friday,  February 4, 2005

Dear Mr Pineau,

In reviewing the Chamber of Commerce newsletter for February 2005, I was very disappointed with your article on ‘Addressing the Flow of Imports at the Port’. 

While the article purports to address, ‘What businesses can do to help’, it only glosses over the role of port users to focus almost exclusively on what MORE the Port Authority can do for merchants.

Such an emphasis might not have been unwelcomed, if the request for MORE was actually expressed in constructive criticism which had a basis for implementation. In other words, rather than criticizing what is being done and wrestling over who has made a recommendation and when, the article should have focused on concrete examples of changes required to improve the situation flow.

No one argues with your assertion that the Port Authority is the ‘lifeline for commerce in the Cayman Islands’. The fact that my administration values the Port is demonstrated in the efforts to date to ensure it is modernized and expanded in order to serve this country well.

Alternate sites for a new port continue to be explored as the demand for imports will only expand in future generations. I have boldly led this discussion and borne the wrath of many for discussing such a taboo subject.

In terms of existing port operations, since Hurricane Ivan the Port has processed in excess of 124,000 tons, almost 100 percent of the pre-Ivan figures. This pace shows no signs of slowing as in January 2005 alone, more than 7,000 containers arrived at the Port, an increase of almost 100 percent in comparison to pre-Ivan monthly figures. The Port is working relentlessly with users to implement improvements and cargo is now handled around the clock.

I have put in place significant improvements which the Port has implemented including the following:

• Extended operating hours, 
• Introduced a 10-day grace period on storage charges for goods,
• Identified and utilized an off-site location for the storage of light cargo,
• Hired 96 additional staff; in effect doubling the port’s workforce,
• Introduced double shifts allowing work to continue throughout the night,
• Purchased nearly $2 million worth of additional equipment including trucks, truck chassis, a crane and fork lift trucks,
• Leased additional land for storing imported vehicles and containers, and
• Improved the separation of cargo by major importers.

Cabinet has also sought to address the port dilemma by extending through 31 March 2005 its policy to allow for the 50% reduction of customs duty for the importation of building materials and similar supplies. This policy aims to encourage staged importation of replacement items and to discourage bottlenecking at the Port. 

Your article makes a most erroneous mention as to the frequency with which the Port Authority has met post Hurricane Ivan. As Chairman, I can tell you that my leadership style puts a greater emphasis on effecting change and less on discussing it. As such, the Board has convened in formal board meetings twice since the hurricane but more importantly I have fed numerous subject-specific critiques on port operations in the wake of Hurricane Ivan At these meetings, the strategies for cargo distribution and facilitation continue to reviewed, amended and implemented as necessary.

Such dynamic review doesn’t lend itself to frequent, formal board meetings, but the governance of the Port has consistently remained of paramount importance to the Port Authority Board and my Ministry. This was so much the case, that my Ministry has proposed at our first regular meeting with the Chamber of Commerce to deal exclusively with the subject of port operations.

I wish to reiterate an offer which has previously been extended to you. The Chamber of Commerce is invited to submit in advance of the meeting its recommendations for improvements at the Port Authority so that these may be reviewed and decisions taken as necessary. To date, the Ministry awaits the Chamber’s reply to this request for concrete recommendations. I also request that the Chamber come up with firm recommendations as to what its members will do to assist the country’s ‘lifeline for commerce’.

Thus far, the Port has done its best to refrain from raising its rates despite significant cost increases it has had to incur due to lost equipment and the need to immediately tackle the huge spike in cargo volumes. I would encourage Chamber members to do their utmost best to do likewise.

Key stakeholders such as shippers and freight forwarding companies can also help ease the congestion at the port. Shippers are asked to explore solutions such as securing temporary sites for storing their own empty containers until they can be shipped off island, thus freeing up greatly needed space at the Port. At present, the shippers continue to share valuable space at the Port.

Freight forwarding companies who deal with consolidating less than container loads (LTCL), can use more responsible consolidation methods which incorporate more palettes. These palettes would allow LTCLs to be sorted and distributed in a more expeditious manner. Current practices which don’t use pallets can result in a single container containing goods for as many as 300 separate individuals. This can be a huge, time consuming task for Port staff responsible for sorting individual client goods.

There is much to be done on the road to recovery. We have worked well in the past months to create positive results for this country. I am of the sound opinion that together we can continue our astounding rate of recovery. I am equally confident that divided we are destined to fail. I trust that we can put aside pettiness over who did what and when, and instead focus on ensuring that the right things keep getting done. Certain things need to be done, mainly importers need to collect their items within the timeframe provided. Some are responsible and attempt to do so; however the majority of goods are not collected in a timely manner. This perpetuates the backlog.

I appreciate the role that you have played in educating the public, particularly on critical recovery matters. I trust that you will ensure that criticism, when leveled, will be justified and accurate. As a parting note, I can’t help but to remember the healthy, helpful relationship I had while Mr. O’Dea and Mrs. Harris served as president of the Chamber. So very much was accomplished with their non-confrontational, objective management style. But then, elections are around the corner!

Respectfully,

Honourable W. McKeeva Bush OBE JP
Leader of Government Business 
Minister of Tourism, Environment, Development and Commerce

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