Regional Symposium on Services CARICOM

1. Regional Symposium on ServicesCARICOM Maritime Transportation Services Antigua July 2009 Fritz Pinnock - Caribbean Maritime Institute

2. Fritz Pinnock - Caribbean Maritime Institute

3. Kings Ambition The Southern Port on the Red Sea was the envy of several kings of Judah. SOLOMON – built a fleet of ships here which departed and returned every three years. (1 Kings 9-10) JEHOSHPHAT – built a fleet here that was wrecked before it ever sailed (1 Kings 22) UZZIAH – was noted for being the one who rebuilt Elath and restored it to Judah. (2 Kings 14:22)

4. Model of Noah's Ark Fritz Pinnock - Caribbean Maritime Institute

5. The first ship • Noah’s Ark was said to have been the largest sea-going ever built • Until the late 19 th. Century when giant metal ships were first constructed. • (Genesis 6: 14-16) • 450 feet long (137.16 Meters) • 75 feet wide (22.86 Meters) • 45 feet high (13.716 Meters) Its length to width ratio of 6:1 provided excellent stability on the high seas. Modern shipbuilders say it would have been almost impossible to turn over. TOTAL FLOOR SPACE – 100,000 sq. ft. – more than 20 basket ball courts. CUBIC VOLUME – 1,518,000 cubic feet – capacity of 569 modern railroad stock cars. Fritz Pinnock - Caribbean Maritime Institute

6. GLOBALISATION OUTSOURCING JUST-IN-TIME (JIT) COMPLEX INTERNATIONAL DISTRIBUTION CHAIN Fritz Pinnock - Caribbean Maritime Institute

7. LOGISTICS MANAGEMENT … AND ITS DIVIDENDS Getting the Right Product …. Improved access to international markets Increased foreign trade Higher incomes Enhanced employment opportunities Poverty Reduction To the right people … In the right quantity … At the right time … In the best condition … At an acceptable costs … Fritz Pinnock - Caribbean Maritime Institute

8. PILLARS OF GLOBALISATION SPECIALIZATION TRADE LIBERALISATION INTERNATIONAL TRANSPORTATION TECHNOLOGICAL ADVANCES Fritz Pinnock - Caribbean Maritime Institute

9. TRANSFORMING THE ROLE OF PORTS PORTS AS LINKS IN SUPPLY CHAIN VAL S U P P L Y P R O D U C T I O N T R A N S P O R T D E L I V E R Y D I S T R I B U T I O N • Receiving • Storage • Handling • Inventory • Inspection • Assembly • Labeling • Packing • Order Picking • Bar Coding • Return • Customizing VALUE ADDED SUPPLY CHAIN Fritz Pinnock - Caribbean Maritime Institute

10. Background • Caribbean Maritime Infrastructure is a legacy of Piracy, Slavery and Colonialism. Fritz Pinnock - Caribbean Maritime Institute

11. THE BOX- OPPORTUNITIES??? Fritz Pinnock - Caribbean Maritime Institute

12. Opportunities Value-Added Fritz Pinnock - Caribbean Maritime Institute

13. Driving Forces of Containerization and Multimodal Transport Containerization Unitization Cellular ships Specialized terminals Land consumption Standardization Gantry cranes Transshipment productivity Multi-rate structure Management and coordination Mergers Modal integration Logistics Control over cargo Multimodal operators Through rates and billing Deregulation Multimodal Transportation Fritz Pinnock - Caribbean Maritime Institute

14. Containerization Growth Factors A B C D Fritz Pinnock - Caribbean Maritime Institute

15. 2 Forces driving the shipping container shipping industry Scale Technology Fritz Pinnock - Caribbean Maritime Institute

16. Six Generations of Containerships Length Draft TEU 135 m 500 First (1956-1970) Converted Cargo Vessel < 9 m < 30 ft 200 m 800 Converted Tanker Second(1970-1980) 10 m 33 ft 1,000 – 2,500 215 m Cellular Containership 250 m 3,000 Third(1980-1988) 11-12 m 36-40 ft Panamax Class 290 m 4,000 Post Panamax 275 – 305 m 4,000 – 5,000 11-13 m 36-43 ft Fourth(1988-2000) Post Panamax Plus 13-14 m 43-46 ft Fifth(2000-2005) 5,000 – 8,000 335 m New Panamax Sixth(2006-) 15.5 m 50 ft 11,000 – 14,500 397 m Fritz Pinnock - Caribbean Maritime Institute

17. The Largest Available Containership, 1970-2008 (in TEUs) Fritz Pinnock - Caribbean Maritime Institute

18. Characteristics of Some Historical Containerships Fritz Pinnock - Caribbean Maritime Institute

19. Specifications for Very Large Post-Panamax Containerships Fritz Pinnock - Caribbean Maritime Institute

20. World Container Traffic, 1980-2008 Fritz Pinnock - Caribbean Maritime Institute

21. Containerized Cargo Flows along Major Trade Routes, 1995-2007 (in millions of TEUs) Fritz Pinnock - Caribbean Maritime Institute

22. Containership Size versus Cost per TEU-Day Fritz Pinnock - Caribbean Maritime Institute

23. Integrated Transport Systems: From Fragmentation to Coordination Fritz Pinnock - Caribbean Maritime Institute

24. Main Commercial Passenger Aircraft, 1935-2008 Fritz Pinnock - Caribbean Maritime Institute

25. Technology • Information technology plays a very important role in the evolution of the container shipping industry. • IT controls the “PROCESS” • While intermodal integration controls the “FLOW” Fritz Pinnock - Caribbean Maritime Institute

26. EFFECIENCY & ADEQUACY OF THE MARITIME TRANSPORT SERVICE INFRASTRUCTURE OPPORTUNITIES FOR EMPLOYMENT FOR CARIBBEAN NATIONALS STATE OF ENVIRONMENTAL MACHINERY TO PROTECT THE CARIBBEAN SEA BASIN Fritz Pinnock - Caribbean Maritime Institute

27. COMPETING REGIONAL HUB PORTS Fritz Pinnock - Caribbean Maritime Institute

28. CLASSIFICATION OF CARIBBEAN PORTS SOURCE: PINNOCK 2009 Fritz Pinnock - Caribbean Maritime Institute

29. CLASSIFICATION OF CARIBBEAN PORTS CONT. SOURCE: PINNOCK 2009 Fritz Pinnock - Caribbean Maritime Institute

30. TOP CONTAINER TERMINALS & THEIR THROUGPUT (TEU) 2004 TO 2007 Fritz Pinnock - Caribbean Maritime Institute

31. COMPETING REGIONAL HUB PORTS Fritz Pinnock - Caribbean Maritime Institute

32. COMPARISION OF CARIBBEAN HUB PORTS WITH SINGAPORE Fritz Pinnock - Caribbean Maritime Institute

33. LINER SHIPPING CONNECTIVITY INDEX IN THE CARIBBEAN • NUMBER OF SHIPS • THE CONTAINER CARRYING CAPACITY IN TWENTY-FOOT EQUIVALENT UNITS (TEU) • THE NUMBER OF SHIPPING COMPANIES • THE NUMBER OF SHIPPING SERVICES • THE MAXIMUM SHIP SIZE (DEPLOYED). Fritz Pinnock - Caribbean Maritime Institute

34. LINER SHIPPING CONNECTIVITY INDEX Fritz Pinnock - Caribbean Maritime Institute

35. EMPLOYMENT OPPORTUNITES FOR CARICOM NATIONALS • Shipping carries more than 90% of world trade – • the bulk of this trade consist of carrying commodities such as oil and grain • - suggest that without shipping half of the world would starve and the other half would freeze. • 100,000 merchant ships are manned by 1 ¼ million seafarers from all over the world. • The feeding and heating of for 6.7 bn. People rest in the hands of just over 1 million seafarers. Fritz Pinnock - Caribbean Maritime Institute

36. “Never before in the history of mankind have so many depended so much on so few” (Winston Churchill). • Seafarers are professional sea operatives, trained and equipped in the art and technology required in the best practice operation on international waters. Fritz Pinnock - Caribbean Maritime Institute

37. The Philippines Experience • The Philippines account for 20% of the World’s Seafarers (236,431). • Today’s ships are automated and highly specialized – the “SKILL MIX” is different. There is a greater need for Deck and Engine Officers – Trend confirmed by the Baltic and International Maritime Council’s (BIMCO) ISF Manpower Project (2008). • IMO (2008) - Worldwide shortage of 83,000 qualified officers. • Threat to the Philippines ratings come from the lower priced competition from Asian neighbours such as China, India and Viet Nam. Fritz Pinnock - Caribbean Maritime Institute

38. 8.7% SR. OFFICERS 19.1% JUNIOR OFFICERS 72.2% RATINGS Philippines Deployment 236,431 Fritz Pinnock - Caribbean Maritime Institute

39. Philippines seafears sends back US$1.7 Billion or 16% for the first 9 months of 2005. • Since this is a significant source of income for the country the government – • Set up a “one stop shop” for easier and speedier processing of documents that are handled by over one dozen government agencies. • Prepare new ID Cards with Bio Metric features as an anti-terrorist measure. • Social Security coverage – now mandatory. • BIMCO estimates that shortage of officers will increase to over 25,000 by 2011. • The new ILO Convention will help to make the profession more attractive: • New condition on work environment. • Minimum age for work aboard ship. • Hours of work. • Occupational health and safety. Fritz Pinnock - Caribbean Maritime Institute

40. Caribbean Hurdles • Caribbean freight rates 2 – 3 time higher than the world average. • Small parcel size • Service economy • For every 9 containers coming to the region – only 1 return with Cargo. • Role of Customs – Revenue Collection and not trade facilitation. • Port infrastructure built to accommodate general cargo vessel and not container cargo. • Restrictive labour practices. (overtime, guarantee pay). • Competition - cruise and cargo vessels for berthing space. • Trade Community System – Integration. Fritz Pinnock - Caribbean Maritime Institute

41. Environmental Challenges Fritz Pinnock - Caribbean Maritime Institute

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44. Fritz Pinnock - Caribbean Maritime Institute

45. Fritz Pinnock - Caribbean Maritime Institute

46. Fritz Pinnock - Caribbean Maritime Institute

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48. Fritz Pinnock - Caribbean Maritime Institute

49. Fritz Pinnock - Caribbean Maritime Institute

50. Fritz Pinnock - Caribbean Maritime Institute