John
Maxwell
The
Port Authority of Jamaica is clearly one of Jamaica’s most sophisticated public
entities; they even appear to have a vice-president in charge of delivering bad
news. This gentleman, Mr Pat Belinfanti was quoted round the world, according
to Google, about 34,000 times two weeks ago as saying ‘Jamaica suspends port
expansion, blames economy’.
Papers
as diverse as the Seattle Times, the International Herald Tribune and the Taiwan News reported that “ Jamaica is
suspending plans for a multimillion-dollar expansion of a popular tourist port
in Kingston because no one wants to finance it.”
I
was bemused by the mention of a ‘popular tourist port in Kingston’ since I
couldn’t figure out where such a place might be.
Here
is the core of the story:
”A
spokesman for the island's port authority says the $122 million project at the
Kingston Wharf will be pushed back one year. Pat Belinfanti says construction
might start in 2011.
He
said Friday that several international banks backed off, citing the global
financial crisis after initially saying they might finance the project.
The
development would include construction of duty-free shops and a renovation of
the nearby Port Royal town as a cruise ship destination.”
The
figure of US$122 million appeared to indicate that what might actually have
been zapped was the monstrous Falmouth Cruise ship facility Phase One of the
Human Zoo planned for Trelawny. The rest of the story appearing to be simply
journalistic confetti, scattered to deflect the anti=spin missiles of the
foreign press. No such luck.
What
is admirable about the Port Authority is that, like their paragon, the UDC
(Ultimate Devastation Conglomerate) they gallantly refuse to take no for an
answer and like the Light Brigade, will continue charging into the jaws of
death, into the gates of hell, if only to deliver their latest press release or
to try to borrow even more money while they cannot service their current debt,
incurred while no one was looking.
What really seems to have happened is that the
Port Authority has recently suffered some serious financial setbacks and is in
the process of drawing in its horns.
In
the Gleaner of Dec 11 a story written by Arthur Hall says “The
worldwide financial meltdown has started to hit Jamaica's ports, delaying one
major project and causing some international financiers to shy away from
another.
In
addition, there has been a 15 per cent decline in domestic cargo moving through
the ports since August. A noisily trumpeted 5 year contract with Maersk, the
world’s largest shipping line (2005) disintegrated before the contract was even
halfway done.
Chairman
of the Port Authority of Jamaica, Noel Hylton, said plans to begin the expansion
of the transshipment port in the Fort Augusta area of St Catherine in 2010 have
been shelved, with the project now slated to begin a year later.”
Reality
is clearly setting in this area. In another area I am not so sure. Arthur
Hall’s story says that the high cost of capital may also be damaging the immediate prospects of the
amazing proposed cruise shipping pier in Falmouth where the PA needs $US122
million to seal the deal
As
the world’s risk takers sprint for the exits, Jamaica’s gallant Port Authority
stands unfazed : ”we have about eight
banks which have indicated a willingness to offer financing," Hylton said;
"The question of getting the financing is not the problem for us ... The
problem is the cost of the financing and in today's world, financing costs can
be very high," said Hylton.
You
can say that again, but you shouldn’t need to. Jamaica has lots of experience
with usury. (Eight banks!)
Why
anyone should consider destroying Falmouth has never been clear to me,
especially to replace it with the Disneyfied monstrosity proposed by the Port
Authority in cahoots with Royal Caribbean. Everything is being done at a very
high level of course and environmentally concerned people like us just need to
shut up and take our medicine.
The
medicine is going to be potent. While parliamentary committees gave been
reassured that Falmouth will be no danger to the cruise shipping industry, no
such guarantees have been given to the
Jamaican hoteliers whose customers regard Jamaica as the attraction.