Caribbean Basin Supply Chains: Part I

Even when it was first proposed, the concept of digging a canal in the troubled nation of Nicaragua was not considered a safe bet by most shipping analysts. Now that Panama's expansion project will be completed, that prospect is much more of a long shot.

Meanwhile, the possible lifting of the U.S. trade embargo with another communist nation in the region—Cuba—has created some speculation that it may one day become a viable logistics hub in the Caribbean.

If there's a common thread running through the developing story of the Caribbean Basin, it's Chinese investment. Hong Kong-based Hutchison Port Holdings, which operates the Panama Canal, also runs Freeport Container Port on Grand Bahama, a northern island on the Bahamas. It's also actively courting officials at Cuba's deep-water port of Mariel.

And then there's Jamaica, which aspires to join Rotterdam, Dubai and Singapore as the fourth node in the international logistics chain. According to George Anthony Hylton, Jamaica's minister of industry, investment and commerce, the island nation compares favorably with the existing three nodes, as it's positioned astride the trade routes in the Windward Passage and has access to the 800 million-person market of North, Central and South America.

“We sit at the doorway of the expanded Panama Canal,” observes Hylton, “and our government got to work addressing the issues of both the physical infrastructure and the other components necessary to reach this goal two years ago.”

Jamaica's “Global Logistics Hub Initiative” launched last October, is the cornerstone of the country's future economic development. According to leading industry analysts, it will involve multiple modalities through the integration of seaports throughout the Basin. This will include the handling of containers, dry bulk and liquid bulk commodities. Also included in the plan are airports, special economic zones, free zones, logistics parks, logistics centers, integrated intermodal transport capabilities, supporting infrastructure, telecommunications and trade facilitation mechanisms.

While concentrating on welcoming the new generation of “mega” vessels that can't transit the Panama Canal, U.S. ports on the eastern and southeastern seaboard have been also actively wooing calls from smaller “post-panamax” ships serving the region. This is particularly true of ocean cargo gateways in Florida.

“Florida ports have had a long relationship of trade with the Caribbean nations, and are proud to count them as some of our most valuable partners,” says Doug Wheeler, president and CEO of the Florida Ports Council.
Representatives from all aspects of the maritime shipping industry met in Cocoa Beach, Fla., last May for the Caribbean Shipping Associations' (CSA) Shipping Executives Conference, an event that focused on the emerging market opportunities in the Basin.

As dark legends about the “Bermuda Triangle” illustrate, the Basin in home to scores of sudden and violent eruptions of nature every year.

“Caribbean nations all share a common maritime connection and have a shared interest in safe and secure commerce,” observes CSA's general manager Fernando Rivera, who adds that “resilience” is another shared objective.

“We have a shared concern to respond promptly and appropriately when natural disasters or man-made crises occur,” says Rivera. “Earthquakes, hurricanes, tsunamis, volcanoes, wildfires, pandemics, terrorist activity and cyber-attacks can have a devastating impact, especially on smaller nations in the Caribbean region.”

Florida's shippers also recognize the Basin's vulnerability to disasters related to climate change. “Industry leaders,” says Rick Murrell, president and CEO of the Miami-based transportation company Tropical Shipping, “must to be prepared to help their companies and their families to mitigate risk with proper preparations and safeguards.”
Eduardo Pagan, Tote Maritime's vice president and general manager for the Caribbean, agrees, noting that U.S. companies are uniting to ensure a more stable shipping environment in the region.

Next: Carrier Investment
“It's a team effort,” he adds. “Hemispheric collaboration is finally taking hold.”

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