A successful partner at the Port Authority of Trinidad and Tobago (PATT) could bring in up to US$200 million, said its chairman Lyle Alexander.
He said that the port has been readying itself for some time and is upgrading its equipment to improve its efficiency and attractiveness.
“We are looking to improve our ability to deliver services,” said Alexander.
He was speaking at the virtual launch of the Port of Port of Spain Public-Private Partnership Structuring Process, which is being done in collaboration with the Government’s advisor on the PPP Process, the Inter-American Development Bank (IDB).
On October 5, 2020, during his 2021 budget presentation, Finance Minister Colm Imbert said the Government was looking for a private operator for the Port. The Cabinet subsequently appointed a committee, which was chaired by Public Administration minister, Allyson West, which produced a report on the port’s potential.
The PATT was expected to issue an RFP by August 2021 but the process has met timeline delays.
Minister of Works and Transport, Rohan Sinanan, who has responsibility for the Port of Port of Spain, said at yesterday’s launch he hoped the briefing session would provide “all potential private partners around the world with have the opportunity to obtain more information and clarification about the project’s deliverables and the milestones already achieved.
“As the Government of Trinidad and Tobago seeks to improve profitability for Port enterprises, it has been determined that the Public Private Partnerships for cargo handling operations has tremendous potential to maximise Port efficiency through capital investment from the private sector and optimization of activities for cargo handling,” he said.
“During the project definition activities carried out during 2022, the Inter American Development Bank, Global Infrastructure Facility and Government efforts demonstrated that PPP schemes have the potential to generate significant revenue. It is envisaged that the PPP model of operations will include: private financing of public infrastructure, increased foreign exchange, improved governance and provide greater operational efficiency.
He expects that T&T’s economy as a whole will be strengthened, as well as the country’s competitiveness.
“Notwithstanding the benefits to be derived, the reality is there are several challenges facing the Port, including, low productivity, obsolete and non-competitive infrastructure; and the need for public subsidies to pay operative costs.
“The challenges I have identified today have contributed to the following issues. Since 2014, the Port’s throughput has been steadily decreasing. Turnaround times and container movement rates are declining, while port equipment such as cranes are not transferring as many containers as targeted. In this regard, the Ministry of Works and Transport looks forward to this RFP attracting significant interest, resulting in a concession agreement that will benefit Trinidad and Tobago, the private partner, and the Port,” he said.
The Port of Port of Spain is the largest containerised Port in Trinidad and Tobago, handling 63 per cent of cargo volumes in the country with a 10 per cent increase year to date for 2022 versus 2021.
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