Govt reviewing proposals for deep-water project – VP Jagdeo

… says freight costs could dip 60% with road link to northern Brazil

The Government of Guyana has received several proposals for the construction of a deep-water port in Berbice which are presently being assessed to determine the financial capabilities and competence of the bidders.
This was according to Vice President, Dr. Bharrat Jagdeo during his press briefing on Wednesday when prompted by reporters for an update on the development of the project.
He nevertheless stated that the construction of the deep-water port is dependent on a road to northern Brazil which when complete could improve trade logistics, reduce shipping costs, and integrate with northern Brazil’s trade routes.
“Part of the revenue stream to make this project sustainable has to be the integration with Brazil and the business in and out of Brazil because, on its own, we may not be able to generate enough of a revenue stream to pay back the capital cost and to give a decent rate of return to the equity investor(s),” he said at his weekly press conference.

“If we can ship bulk, the big ships can come in, you can cut the cost of freight by maybe 60 per cent. That revenue stream that will come from the use of the port for goods going into Brazil and goods coming out of Brazil will help to justify this cost,” he added.
Further, he added that a direct shipping route to Guyana would eliminate delays caused by transshipments through Jamaica and Trinidad, positioning Guyana as a hub for re-exporting goods within the Caribbean, Suriname, Brazil, and beyond.
Based on meetings with industry stakeholders, the Vice President had disclosed that the best model for the project appears to be the ‘causeway model’ which builds out into the Atlantic.
He added that the government is considering proposals from Dubai and India. “We believe that the best model should be a causeway model going out, right into the deep, that would allow the largest vessels in the world to come here.”
He added that while this model might incur higher initial costs, the promises significant long-term savings by reducing dredging expenses and enabling the accommodation of the largest vessels. He nevertheless added that while this model is preferred, the government is open to others as long as someone makes a sustainable proposal.
However, Jagdeo referenced several “growth hubs” that could be bolstered by the operations of the deepwater port and integrated projects including agriculture, the tourism and hospitality sector, the oil and gas industry, and the Information and Communications Technology (ICT) sector.
A deep-water port is used by large and heavily loaded ships as the depth of water helps ships which may require the water to be 30 feet deep or even more to dock. The Government is looking at a Build, Own, Operate model for this project.
With the Gas-to-shore project expected to come on stream shortly, cheaper electricity will also see an increase in the manufacture of local products.