Rick Lowe
The headline was in an e-mail I received which in essence was suggesting moving the various shipping companies from the docks along Bay Street to the new port at Arawak Cay was a failure for the most part and only served to raise prices.
I submit it's too early to tell what the over all impact is or will be, and offer the e-mail conversation below to get your feedback.
The "Points" were e-mailed in and the "Counterpoints" are my responses.
Point: Port costs are up.
Counterpoint: Possibly. But so are all other costs. Hopefully efficiencies will result after they get the kinks out. This would happen wherever the Port was moved to. But it might lessen costs for people closer to the port no?
Point: Will they refund your additional costs? Everything has to go to Gladstone Road. All containers for ‘stripping’ have to go there.
Counterpoint: Why would they reimburse anything? There are merits to moving the port. One example might be development along Bay Street more conducive to building a living community there once again. I hope so any way.
Point: The shipping companies admit there will be delays in customers receiving their merchandise.
Counterpoint: I'm sure until they work things out this will happen. Everyone is getting used to a new system.
Point: One hopes it will improve but they are starting off quite badly.
Counterpoint: I suspect this happens with most start ups when they open their doors. Business like life is imperfect.
Point: Will the containers only be moved at night? I seriously doubt it, so how does the traffic on West Bay Street benefit?
Counterpoint: Who knows, but traffic is moving much better these days I find.
Point: Traffic is not moving better from the West nor from the East and inner city is bad. Any improvement you see might be because people have left their cars home because of the price of gas.
Counterpoint: So have you suggested a plan to prevent traffic in the inner city? Like everywhere in the world traffic congestion is a reality. Been to New York, Milan or London lately?
Point: Hauling costs will double as you have to now haul from Arawak to Gladstone [$150.00 per TEU] and then Gladstone to your place of business [$160.00 per TEU].
Counterpoint: Yes, but this would apply wherever the port was built as well.
Point: If at Coral Harbour there would be one pull period.
Counterpoint: But still at a higher cost as it's further away.
Point: In your case will they allow you to clear on Arawak Cay and drive to NMC? If not look at all your time loss, gas use and the dangers of someone crashing into your new vehicles.
Counterpoint: Yes, we've always been allowed to drive them from Arawak Cay. Our shippers have been bringing cars there for a long time.
Point: Hope APD leave it that way and don’t find a method to add to their revenue side! I was never in agreement with the Clifton location. I preferred Coral Harbour with a totally integrated Port. In other words no requirements for a Gladstone Road stripping system. Companies and individuals would receive, clear and move from one location. Little or no infrastructure except connecting from the artificial island to Carmichael Road would be required.There is no marine problems either as the sea bed is dead.
Counterpoint: So you don't think this would raise costs as well?
Point: There would have been one pull after clearing in one location.
Counterpoint: It's still pulling from further away.
Point: Privatisation, which is essential, has taken a serious negative blow in this practical exercise?
Counterpoint: Let's give it a year and see. So fare we see lots of improvements and a couple negatives.
Point: Not a single International Consultant proposed the use of Arawak Cay!
Counterpoint: I think they had input from experts that run ports did they not?
Point: Management of or operating a port is one thing. What I am talking about is the feasibility of the location at Arawak Cay. The same players in APD funded the Study for Clifton. They all, Seaboard, Tropical opined they would agree to an inland container processing depot, but have to stay on East Bay Street.
Counterpoint: And they had millions invested in shipping. Compromise unfortunately is a reality in all negotiations. I'm hopeful it will work better after the kinks are sorted out.
Point: We will see. It will be one hell of an expense if it doesn’t work.
Counterpoint: Agreed, but something had to be done in as fair a manner as possible.
When they do this to the cost of goods, don’t complain about the price of anything & for God & heavens sake stop the price control madness, ease up on the license fees & property taxes because you are only hurting us all Mr.government. You cannot burn the candle from both ends & expect it to last.All this nonsense with Gladstone road road pick ups is another scam to stick it to us even more.I think this whole port thing was very poorly thought out,Sure seems like it to me.
As professor Boudreaux says over at Cafe Hayek “…from page 290 of Harold Demsetz’s vital 1989 collection Efficiency, Competition, and Policy: …In the provision of collective goods government can make only the roughest guesses as to proper objectives and how to accomplish these, especially when concerned with the distant future…”
If one considers that shipping was proposed to be moved to Arawak Cay over 40 years ago, and we have only just gotten around to it, It could be considered a “stop gap” solution, a day late and dollar short.
However, growing pains aside, and assuming they will be solved/resolved I noted that the Port Itself had hired 200 people to work at the facility, I presume to handle the tasks handled at each respective shipper when they were at their own locations.
Have the shippers downsized their own staffing in that the Port is now handling certain tasks globally for all shippers?
Logistically, in reading the newspapers and hearing complaints, Does the port have Multiple entry lanes and tractor head staging, or is it using the Bahamian standard “Taxi” type single file call up system?
The Port of Palm Beach comes to mind, multiple lanes and security booths set up like toll stations on the Fla Turnpike.
I have not seen it other than to pass on West Bay,
but, How is traffic handled at that corner?
If there was no basic change then it must delay both traffic and trailers.
The pain is inevitable considering the overall Nassau congestion, Road works etc, but,
I suppose better late than never.