Transforming the Caribbean Port Services Industry: Towards the Efficiency Frontier

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TRANSFORMING THE CARIBBEAN PORT SERVICES INDUSTRY: TOWARDS THE EFFICIENCY FRONTIER - PAGE 13

Figure 0-4 Indexed Gateway Container Growth Forecast

Trinidad & Tobago

Suriname

Barbados

St. Kitts

Antigua

Dominicia

Grenada

St. Vincent

St. Lucia

Bahamas

Belize

Guyana

180 • • • • •

170 160

• Suriname (71%) • Guyana (64%)

Belize (49%) Bahamas (45%) Antigua (38%) St. Vincent (34%) Barbados (33%)

150 140 130

• • • • •

St. Lucia (29%) Dominica (28%) St. Kitts (27%) Trinidad & Tobago (27%) Grenada (19%)

120 110 100 2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

TRAFFIC FORECAST FOR THE BMC PORTS Figure 0-4 provides an overview of the gateway container forecast. The figures have been indexed (year 2015 = 100) in order to enable comparison of growth between individual countries. From the figure, a substantial range in estimated outcomes can be noted. For example, by 2025, Suriname’s gateway container demand is estimated to have grown by approximately 70%, whereas Grenada’s cargo demand is estimated to have grown by approximately 20%. Based on projected growth, countries have been ranked and grouped. The following three groups have been identified: • High growth group: Suriname and Guyana; • Medium growth group: Belize, Bahamas, Antigua, Saint Vincent, and Barbados; and, • Low growth group: Saint Lucia, Dominica, St. Kitts, Trinidad & Tobago, and Grenada.

From the identified groups, it may be noted that the OECS countries included in the assessment generally underperform in projected cargo growth, as compared to other countries included in the assessment. This is to be expected, as the smaller island nations typically exhibit low population and GDP growth. It can be further noted that Trinidad & Tobago is expected to achieve a substantially lower cargo growth than comparable countries. This is mainly attributable to a low GDP growth expectation (the IMF World Economic Outlook forecasts the country’s GDP to grow by 1.0% to 1.75% per annum until 2020). Based on the projected demand growth, capacity constraints are expected to develop mainly in the continental ports (Suriname and Guyana), even after carrying out a sensitivity analysis that controls for potentially optimistic economic growth projections.


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Transforming the Caribbean Port Services Industry: Towards the Efficiency Frontier by Caribbean Development Bank - Issuu