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Port charges begin to bite in Sister Islands

Thursday, August 10, 2006

Doing business in the Sister Islands has gotten more expensive after Government hiked its Port charges there to match those of Grand Cayman.

Recently, one business establishment found out that it had to pay an increase of 20 percent on port charges when completing transactions at the Little Cayman port.

Previously, the company paid CI$282 in port charges for a 20-foot container from Florida, now it has to pay CI$353 for the same service in the new fee structure.

That sharp increase has forced the complainant to seek an explanation from the Leader of Government Business, Hon Kurt Tibbetts.

"These cargo charges for receiving a container at Little Cayman seem unjustified when there is no dock, improper docking facilities, no warehouse, no crane, no forklift and no help," the company wrote.

While it is not known what response Mr Tibbetts gave to the company's letter of concern, a source close to the Port Authority said the Sister Islands have not seen an increase since 2002.

The source said that port charges in Grand Cayman were raised in 2002, while those of the Sister Islands stayed the same.

According to the source, the new port charges in Cayman Brac and Little Cayman came into effect on 1 July 2006, giving the Islands a four-year break from increases.

Despite the protest letter to the Leader of Government Business, one observer believes that the fees would remain, as Government finds ways to generate revenue for developmental projects.

On the question of limited port facilities and services in Little Cayman, the observer said that the Island offers adequate opportunities for companies to transact their business.

The individual stated that for many years companies have transported their products to Little Cayman with the objection to facilities only coming with the increase in port charges.

While it is unclear what sort of impact the hike in port charges will have on the economy of the Sister Islands, residents on Grand Cayman have been complaining about the high cost of living.

Public opinion in Grand Cayman, the biggest of the three Cayman Islands, has been constantly portraying the Island as very expensive with claims of ever increasing prices of products and services.

Radio talk shows, letters to the editor and columnists have been bombarded with concerns about the high cost of living in the Island.

The destruction of Grand Cayman by Hurricane Ivan in September 2004 continues to be blamed for the higher prices.

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