April2nd , 2016

PRESENTATION TO CARIBBEAN

DEVELOPMENT BANK

Funding of New Port and Lessons learnt.

New approaches to Management & labour

Procurement of Equipment

Governance Structure/ Relationship to Govt.

Regional Approach to dealing with Carriers.

April2nd , 2016

An understanding of the national economic &

social imperatives.

The Port must be designed within the

country's strategic objectives.

Managerial expertise and knowledge of

industry trends

Do not repeat past futures.

Port built in 1968 obsolete in1971

Ports built 50 year cycle.

Identified several options for financing.

China Civil Engineer Construction Co.

China Harbour.

Jan De Nul

Justification for repayment capacity. Identification of new revenue streams through efficient

management and streamlining processes. Reduction of burden on central Government Evaluation of established processes and identification

of gaps. Require new technology retooling and training. Established clearly defined objectives by department

and financial management systems. Forging partnership

12500

13000

13500

14000

14500

15000

2013

2014

2015

2013

2014

2015

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

2013 2014 2015

Income 2013 2014 & 2015

2013

2014

2015

Income 2013-2015 e Analysis 2013-2015

.

1.27

1.11

0.97

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2013 2014 2015

Operating Expense Ratio (OER) 2013-2015

OER

Increasing supply of port projects around the world [strategic

selection and decision making required]

Increasing involvement of private sector /PPP in ports

worldwide [focus on returns on equity]

Increasing market concentration amongst terminal operators

[portfolio managers]

Terminal operators increasingly active on capital markets [loans

/stocks /bonds /private placements]

Port Authorities corporatizing [capital markets /growth]

Financiers reluctant in turbulent times [crises]

Focus on Value [value-based management of port PPP projects]

(Marine & Transport Business Solutions, 2014)

5/18/201611

Key Trends in the Port Industry

PSA ( Port Authority Singapore) HPH ( Hutchinson Port Holdings) AMPT DPW (DP World) Cosco Terminal Investment Ltd. China Shipping Terminal Development Hanjin Evergreen Eurogate

New industry iniattives- PPT warehouse, tug, cross docking facilities, implementing the TOS.

Modernize tariffs To move Antigua up on the ease of doing

business. Fit for sustainable use. Develop capacity for consolidation and

distribution to the markets. Establish national curriculum re: maritime

opportunities.

Understand the changing landscape Labour reform: Recruitment, training designed to

fit the intended roles for our needs. Introduce changes in the national curriculum to

include port administration. Remodel the role of Unions at Ports. Establish new labour policy. Identify career paths in the industry through

national consultations.

Labor reform is necessary to lower costs and improve efficiency.

Reforms might be implemented merits further understanding of the local political and social environments and institutional constraints.

The topic of labor reforms and unions is difficult in any context, and in the case of the OECS ports, also reflects the legacy of port practices during the break- bulk era.

1000ventures.com

Public Private Partnerships

Human Capital Development

Finance & Planning

Infrastructure Development

Policy & Legal Framework

APA Strategic Framework

17

Port Labor Environment

•Overstaffing •Outdated and inefficient work rules

• Inflated Pay scales• Lack of predictability

Port Labor

Development in Logistics and

Transportation

National Economic and Trade Policies

Change in markets and services

Technological advances

Trade Union Poor training, limited resources

Government policies to maintain or create

employment

Out-dated management practices

Joint procurement with other ports.

Training for technology and knowledge

transfer.

Lack of competition in procurement and

maintenance thus can share.

Achieve economies of scale, capacity

building, improvement in productivity,

reliability and extended use of equipment.

Technicians must work along with procurement After sale servicing and support. Vendor must commit to the Port, responsibility for

training and ongoing relationship must exists. Procurement of equipment should be linked to lines

serving the area, resulting in supporting skills and forging strategic alliances.

Procurement should not be driven by cost. Support reliability of service and access to available

spares. Can amortize payment period longer and depreciate

our assets.

LEADINGCHANGE

Sustainability Organizational development

KNOWLEDGE

RESOURCE MANAGEMENT

STRATEGY

LEADERSHIP & VISION

APA Corporate Governance Strategy

The Port Authority falls within the portfolio of theMinister of Finance and Corporate Governancewho is also the Prime Minister of Antigua &Barbuda.

Board Chairman-Hon. Sen. Maryclare HurstCommissioners (5)Board SecretaryExecutive Management

. Challenges / Recommendations

Political nature of appointments.

Technical nature of the sector, lack of

exposure and opportunities to be trained in the

sector.

Cyclical nature of executive appointments.

Majority of appointments receive on the job

training.

. Challenges / Recommendations

Skills and knowledge flight.

Lack of capacity and continuity of programs.

Lack of confidence in the governance

structure.

Lack of opportunities and institutional

capacity for continued development.

Lack of professionalism by technicians.

. Challenges / Recommendations

Establish regional training center for diploma

and certificate programs(CMI).

Industry related training for board members

and potential board members.

Regionalized the executive level position.

Standardization of entry requirements for all

positions.

Current market conditions

Volumes continue to rise annually.

Oil prices are down.

Caribbean improving efficiencies.

Port charges are constant.

Global freight rates are down by 50%.

Regional carriers increasing freight rates.

Consolidation of Carriers

Previous

Tropical Crowley Bernuth Kent Lines Sea Star King Ocean Caribbean Feeder Services Sea Freight Tecmarine Sealand, Seaboard Marine Geest CMA / CGM Maersk

Consolidation of Carriers

Present

Tote (Tropical / Sea Star)

Crowley (Sea Freight)

King Ocean

Seaboard Marine,

Geest

CMA / CGM

Explore the establishment of a cabotage system for sustaining greater regional connectivity.

Establish a regional intermediary for negotiations between lines and Ports.

Engage carriers to forge partnerships in various areas of operations.

Create legislation for the attracting investment in the maritime sector.

Establish an entity for identification of competitive options to serve the region.

.

“Whosoever commands the sea commands the trade: whosoever commands the trade of the world commands the riches of the world and consequently the world itself”.- Sir Walter

Raleigh, a pioneer shipping magnate,

"No matter how information technology advances, the world trade cannot be materialized without ports. This is exactly why every country needs to develop much more advanced and efficient ports for its prosperity.”

Dr. Mahathir, Prime Minister of Malaysia

.

Prepared by

Mr. Darwin Telemaque, CPE Port Manager, (Antigua & Barbuda Port Authority)

OECS Port ChairmanVice – Chairman, Port Management Association of

the Caribbean

Assisted by :Mr. Curtis Dennie Operations ManagerAntigua & Barbuda Port Authority.