Govt looking at pre-feasibility study for deep-water harbour
As part of its efforts to position Guyana as a transport and logistics hub, the Guyana Government is currently looking at a pre-feasibility study for the establishment of a deep-water harbour facility here.
Minister within the Public Works Ministry, Deodat Indar, during the panel discussion at the Guyana Energy Conference on Thursday
This has been revealed by Minister within the Public Works Ministry, Deodat Indar, during a panel discussion on ‘Infrastructure Development for Sustainable Growth’ at the Guyana Energy Conference and Supply Chain Expo on Thursday.
“Prime Minister [Mark Phillips] led a meeting between myself and Minister [of Finance Dr Ashni] Singh, where we’re looking at, to some extent, a pre-feasibility study for the deep-water harbour. We’ve heard a lot about harbours and the deep-water harbour over the years, but now it is more needed in Guyana than anything else,” Minister Indar has stated.
Government has already determined that the deep-water port facility would be established in the Berbice River, since that location is closer to the offshore fields that have massive reserves of natural gas. According to Minister Indar, Government is actively discussing this development with potential investors.
“We’ve had over 15 to 20 different persons, groups and agencies from all across the globe, from every country, that came here (as) investors that are interested in that port. So, there is an active discussion on the deep-water harbour: the mechanics of it, the revenue stream, what kind of business will operate there. [These are] up for discussion, but we are looking at that deep-water harbour,” Indar explained.
At Tuesday’s opening of the four-day Energy Conference in Georgetown, President Dr Irfaan Ali underscored the importance of a deep-water port, not only for the benefit of Guyana, but also to meet the needs of neighbouring countries in the region. In fact, he had previously stated that it is no longer a matter of whether the deep-water port would happen, but a decision that “it must happen.”
Modern port facility
As recent as last week, the Head of State had announced plans to transform the Vreed-en-Hoop ferry stelling on the western bank of the Demerara River into a modern port facility when he said, “We are now working on what we call the new Vreed-en-Hoop Port Development, where the old stelling is; building out the architectural designs to see what can be placed there. [It will be] iconic! This is what we are busy doing!”
President Dr Irfaan Ali had made this disclosure on Friday afternoon at the sod turning ceremony for the $11.4 billion new West Demerara Regional Hospital (WDRH) in Region Three (Essequibo Islands-West Demerara).
He had also disclosed that plans are afoot to construct a new Parika Ferry Stelling and Waterfront Development Project, which would effectively transform the Parika Stelling into a major regional hub for transportation and socioeconomic activities, and enhance operational efficiency, prioritise safety, and guarantee commuters’ comfort. Funds have already been set aside in the Public Works Ministry’s $9.9 billion River Transport budget for this initiative.
Minister Indar explained during Wednesday’s panel discussion that the Parika Ferry Stelling and Waterfront Development would reduce the burden placed on the already saturated Demerara harbour near Port Georgetown.
“In this habour here, up to the Demerara Harbour Bridge, everything on the [eastern side of the Demerara River], there is not an inch of land that is available…Everybody has taken it up. Cargo coming has multiplied,” he stated.
According to the minister, some 78,000 twenty-foot equivalent units (TEUs) had been recorded in 2019, compared to 105,000 TEUs recorded last year – a growth of 35 per cent.
“It means that the internal consumption of the country skyrocketed by 35 per cent. These ports can’t handle it. The containers have to come through the city, and it’s causing clogging [on the roadways], so we’re going to Parika. We’re gonna go out there and we’re gonna build a massive port down there as well. It’s going to go out to tender shortly,” he revealed.
As recent as on Friday last, President Ali underscored the importance of optimising the use of the limited “valuable” spaces and port facilities along the Demerara River to service Guyana’s shipping industry.
He made these remarks at the commissioning of two mobile harbour cranes – a US$14 million investment by local shipping competitors Muneshwers Limited and John Fernandes Limited to enhance port services in Guyana.
President Ali has lauded this joint venture as a win for local content in the country. But even as this collaboration was celebrated, the Guyanese Leader noted that his government is not unmindful of the challenges facing the local shipping and freight industry.
“As the industry expands, we are seeing the deployment of increasingly larger and more complex equipment; equipment that challenges existing logistical capacities and necessitates the acquisition of new and improved machinery,” he has said. “The…shortage of waterfront land is a real constraint for businesses looking to expand the port facility. The movement of cargo to and from and between terminals is increasingly hindered by congestion on the roads. Additionally, the limitations and the size of these vessels that traverse the Demerara Harbour continue to pose operational difficulties because of siltation in the channel,” he pointed out.
However, the Head of State had gone on to assure that these challenges are going to be met with solutions, including financing, in this year’s budget to support efforts aimed at addressing these issues. Chief among the plans to address Guyana’s transport and logistics woes is the establishment of a deep-water harbour facility here, which is likely to be done in the Berbice River area.
“Let me assure you these challenges are going to be met head on. We’re committed to the development of a deep-water Harbour — a game-changing project that has [the potential to] significantly enhance our country’s shipping and logistics capabilities. Plans are also already in motion to dredge and deepen the Demerara harbour to allow for the passage of large vessels. Furthermore, we remain committed to providing necessary incentives for businesses that invest in freight forwarding and logistics, ensuring that they have the support they need to expand and modernise their operations,” he disclosed.