2006 Miami Conference

Reports

TRANSPORTATION & LOGISTICS: CREATING EFFICIENT LINKS TO THE GLOBAL MARKET
TUESDAY, DECEMBER 5, 2006
2:00 PM – 4:30 PM

Moderator: Ernesto Grijalva, PriceSmart

Discussants: Benoit Bardouille, Dominica Port Authority; Bill Johnson, Port of Miami; Haydn Jones, Shipping Association of Trinidad & Tobago; Tim Martin, Tropical Shipping Co. Ltd.; Tom Paelinck, Seaboard Marine; Fernando Rivera, Caribbean Shipping Association; Frank Santeiro, FedEx Express; Dick Stoute, Barbados Chamber of Commerce & Industry; Carlos Tamayo, Inter-
American Development Bank; Robert Ulrich, HPA-Halcrow

The Context:
Moving goods efficiently and cost effectively through the region continues to be the most critical issue facing businesses in the Caribbean Basin. Has the region done enough to improve efficiencies at its ports? Are integration efforts in Central America and the Caribbean effectively addressing trade facilitation and delivering solutions to modernize operations? Are carriers, port management and the private sector working together to facilitate trade?

The Challenge:

Significant Impact on Investment and Economic Development
Reasonably Easy to Achieve Results (“low-hanging” fruit)

Points and Comments Brought up in the Session:

2 Major areas where brought up in the session
- Barriers to cooperation between the industry and public sector are significant; there is a need for independent forums to allow for transparent decision making.
- Customs modernization and trade facilitation measures are disjointed, sluggish, and duplications of past efforts. In the region rapid measures to catch up with the world economy and commonly accepted best practices are required in this area
Key observations for concerning private-public sector cooperation were
- The integration process is a achieved by consensus, there must be a way to build trust between companies, organizations and ports.
- There needs to be a way to exchange confidential info – we need to identify a mechanism to overcome the burden of release of information that may be considered sensitive.
- Trust begins locally, and will then migrate to state and eventually regional levels.
Some major constraints to the advancement of customs modernization were discussed
- Failure to modernize will drive some ports off the global trade map at a time when a ports are a key asset to a vital economy
- Dialogue at CARICOM level is necessary to accelerate regional standardization and harmonization.
- The players needed at the CARICOM-level dialogue are those with decision making capability and those with a desire to come, whether they have means or shouldn’t prevent participation.
- Governments, port officials, and designated authorities all must have a seat at the table; it does not matter who needs to be at the table first if we agree on 80% of the issues.
- It is small underdeveloped nations that are tackling customs modernization, but they do not have the technology. Support from stakeholders will be necessary to build their capacity.
- There must be a cooperative effort to identify ‘true’ documents for transportation & logistics –critical areas that will allow the small islands to get on the customs modernization bandwagon.
- Tremendous amounts have been spent on security at the ports which has hindered port development; sometimes money is spent without understanding the correct way to spend it.
- There have been too many studies, with too many different means of measurement.

Questions and Answers Brought up in the Session:

Comments on barriers to cooperation
- How do we get smaller countries to buy into expensive best practices?
  - Technology transfer, and through open source/free software methods available through technology.
- Practice of labor that is restrictive makes it difficult to do business, how do we work with labor practices, how do we get help?
  - Coalition of Florida ports is a good example of a private-public sector partnership, and it needs real money to give it legs. Certification also works.
- There are negative perceptions concerning the determination of rates, how do we deal with that?
  - A system to benchmark rates as a measurement was proposed.
- Legal mechanisms exist to create transfers of information, what stops the transportation industry from adopting these?

Recommendations Made:

Recommendations regarding private-public sector cooperation
- Maritime security is an important point everyone can agree on: if a process is 100% efficient but if security lacks, initiatives will fail. Security brings in the government sector, involving the military or police acting as the designated authority.
- The cricket world cup is an example of related civil legislation that was moved through in a short time. This is an ideal starting point to build up legislation for customs reform. Pressure should be directed to, governments to continue this trend.
- There is a mechanism for resolving dispute and enacting legislation in place: Let’s enlist the private sector to pressure CARICOM for the reform because governments will listen when the private sector speaks with one voice.
- The private sector needs to tell CARICOM why these are best practices -the process needs to be user driven -there is a lot of information out there, so it is not a question of starting from scratch.
- Training standards are needed for a regionally self-sustaining program.
- Need a coalition platform for example: CSA-CCCA-Inter-American Development Bank-CARICOM-BASC.
- CSA has a role to play CSA – CCAA and port managers association have done it before.
Recommendations tailored for CCAA as an honest broker
- Clearly there is consensus to be built upon, what is required is someone to bring together a coalition to represent it.
- The panel asked that CCAA to put together regional effort to develop regional integration plan, CCAA is the honest broker that serves as the lynchpin between the private and public sectors.
- The panel nominated Anton Edmunds of CCAA to champion. Anton is well placed, and CCAA can act as the key between sectors.
- Alternative: Jimmy Moss-Salomon.
- The discussion here is relevant to Competitiveness Ministerial Agenda for the July 11 ministerial meeting in Atlanta; CCAA will lead an effort to place transportation & logistics issues on the agenda.
- The panel asked that CCAA take charge of regional standardization effort to create list of best practices with the request they adopt these best practices for the economic benefit in the following areas:
  - Documentation
  - Security implementation – intermodial
  - Handling
  - Customs Modernization

The manager in charge defines repository for best practices and seeks funding or reach agreement to find funding.