CEO of the Port Authority of T&T, Satnarine Bachew, wants the Port of Port-of-Spain (PPOS) to become financially independent by 2017 without having to depend on the State for assistance.
“It is no secret what is happening in the global economy with the price of oil and gas. There is a lot of nervousness with what is happening in China. T&T, being an oil and gas-dependent economy, needs to face the challenges. In the past, we have had a history of running to the Ministry of Finance every Monday morning with our cap in our hands. The time for that is over and we really need to put the port on a path where we become financially independent by December 2017,” he said.
The 19th report of the Joint Select Committee on Ministries 2014/2015, for Statutory Authorities and State Enterprises states that for the period 2004 to 2013, the Port Authority of T&T received subventions or subsidies amounting to $1.2 billion, while the Port Authority and the T&T Inter Island Service received subventions or subsidies amounting to $2.23 billion for the ten-year period.
The report indicates that for the most recent year for which data is available, the Port Authority received a subsidy or subvention of $150 million, while the allocation for the Inter-Island Ferry Service totaled $152 million.
In keeping with the Port Authority Act Chapter 51:01, the accounts of the PATT are required to kept separately from that of the Inter-Island Ferry Service.
The report also stated that the Port Authority suffers a loss of over $200 million annually.
Bachew, the former general manager of the Claxton Bay plant of TCL, said he wants to leave behind the days when people cynically referred to the port as the “port of pain” because of gross inefficiencies and mismanagement.
“We have been charting a new direction and we have many plans. In the past, people have used the term ‘port of pain’ and I am always hurt when I hear those comments being made. That is just one step. It is what you do about it and your response,” he said.
He gave information on the business units that fall under the port which include the PPOS, which is responsible for cargo handling, the Port-of-Spain Infrastructure Company which handles real estate, cruise shipping and harbour management and the T&T Inter Island Transport (TTIT) which handles ship transportation between Tobago and Trinidad.
Bachew, who has been CEO of PATT for the past three months, spoke two Fridays ago at the Hyatt Regency Hotel at a signing agreement between the Port Authority and the Seamen and Waterfront Workers’ Trade Union (SWWTU).
Transformation
Bachew said the company has identified four pillars upon which to base the transformation of the Port of Port-of-Spain.
These are customer service, equipment and infrastructure, processes and employees.
In the area of customer service, he said port has set up targets for their marketing employees in terms of how many customers they will target weekly.
He admitted that over the last year, the port has lost 30 per cent of its customer market and said they must become more aggressive and focussed to recapture that market.
“We intend to rebrand so the port will be the first choice among competitors. That will not happen by waving a wand but will come from clear strategic initiatives. We have been accused of not doing enough interfacing with customers in the past. When the chairman and I visited Miami a few weeks ago, the first question they asked us is where have we been for so long. Marketing cannot be done by sitting behind a desk, we have to be out there in the field, interfacing with people and listening to what their concerns are. We need to put ourselves in the shoes of our customers.”
In the area of equipment, he said it is no secret that the port has equipment that is 20 to 30 years old.
“Some of this equipment is obsolete and the maintenance is very challenging. We have to design programmes of how we are going to manage that old equipment and then acquire new equipment. We are looking at ship-to-shore (STS) cranes, then our tractor trucks which are key elements of our operations. We have ordered 25 new tractor trucks so our cycle time can be better. Those trucks are due by December 2015.”
The Port Authority has already ordered a new STS crane which should arrive in the first quarter of 2017.
“We recognise that if we are going to play in the global arena we must we must be on par with what our global competitors are doing. We are also seeking outside help to supplement what we are doing,” he said.
In terms of the port’s processes, he said that there are bottlenecks.
“We have now broken up the processes into segments so that we can see where the bottlenecks are. There are some hiccups with our NAVIS IT platform but we are working with it. We want to optimise efficiency and benefits of NAVIS. Up to this time we are not getting the full use of NAVIS,” he said.
He said an error the port made in the past was not sending their management team to other ports internationally to see how they plan and manage their systems but this has to change. In a competitive market they need to learn international best practice.
New work practices
Bachew said employees are an important part of the port’s transformation and a new relationship between the port and the SWWTU is a part of their plan to bring greater efficiency to the port.
He called the labour relationship a “game changer.”
“We agreed that our work practices many years ago have served the port in a certain stead but we have reached that point where we need to revisit and we need to enter into the global arena where the real action is and we have to get with the programme. The world is moving ahead of us. If we stand still we are going to be left behind,” he said.
He referred to the famous British biologist Charles Darwin, who said: it is not the strongest or the most intelligent species that survive, but it is the one most responsive to change.
“At the port we recognise the need to change and we are at that point where we are ready,” he said.
He said that the signing of the most recent collective agreement with the SWWTU in early September was a milestone.
“We have drilled into our hardcore work practices for the last 40 years and the time has come for a new dispensation. It was the first time that the collective agreement was signed so early. We have also agreed to modernise our work practices and that will result in increased efficiency.”
Bachew said sometimes people compare the Port of Port-of-Spain to other first world ports but this is not fair.
“Sometimes we believe we are third world and not as good as the Port of Singapore or the Port of Dubai because we have been conditioned like that. But we are not third world, we are first world. Whatever is done outside of T&T, we can do it. We must start believing in ourselves because we are just as competent and just as capable. We probably do not have all the technology or equipment but that we can get it.”