In the turnaround plan for the sugar industry, the Board proposed a September timeline for GuySuCo and its partners-including government-to have the river dredged but there has been no move in this direction as yet.
Referring to the situation in the Demerara River’s main shipping channel as a key impediment to the shipping programme and reducing freight costs, the plan said siltation affects the sizes of vessels that can be loaded at the Demerara Sugar Terminal and also causes delays to sailing. The proposal was therefore made to ensure the shipment of sugar for export in “a cost-effective and efficient manner.” The impact of the initiative would also result in lower freight costs of imports, the plan said.
The plan referenced an incident in 2007 when a vessel lost 12 hours of sailing time after being struck in the channel. According to the Interim Board, a partnership agreement is planned with the six main users of the Demerara channel to have the river dredged and it is expected to cost GuySuCo around $240M.
The plan said if the partnership agreement fails to materialise, the government would then have to fund the project, but noted that it could charge fees for vessels entering the channel. “It will require that GuySuCo be [the] key driver in bringing all the partners together. It is in GuySuCo’s best interests to ensure that this is done as soon as possible since siltation increases marketing costs, affects scheduling and the Corporation’s ability to capitalise on economies of scale from use of bigger vessels,” the plan stated.
The plan also mentioned drainage and irrigation in cultivation, saying that the poor state of drainage is a key problem. It stated that the ability to easily drain water from the fields has contributed to the damage to the crops following heavy rains. Further, it revealed that the corporation has been without a Drainage and Irrigation Engineer since 2005. The recruitment of one was to have been expedited and focus was to be placed on the industry’s drainage and irrigation system.
Additionally, the plan raised the issue of improving skills in the industry and it mentioned upgrading the curriculum of the Port Mourant Training School to cater for advances in technology being introduced at the corporation. It said the strategic direction of agriculture is towards mechanisation, noting that knowledge of the operation of mechanised equipment as well as the ability to maintain and manage the equipment is essential. The plan added that this is being incorporated into the curriculum of the training courses.
It said too that optimising the benefits from the investment in Information Techno-logy strategy will be essential for execution of the blueprint and functioning under the new structure.
The plan pointed to the Information Department at the corporation, saying that it would need to be adequately led. The plan suggested that focus be placed on recruiting an IT Director to guarantee delivery of the IT support needed by the industry.
In January this year, the Interim Board was set up and given a mandate by President Bharrat Jagdeo to develop the blueprint for success for the sugar corporation.
The Board submitted the plan to the Agriculture Minis-ter in January. The turnaround plan envisages stepped up mechanisation, transforming Enmore estate into an important hub, ending grinding at LBI, an ethanol plant and transferring health and community services to the state. It also included measures to cut cost by disposing of what it termed several underperforming assets.
