President of the Berbice Chamber of Commerce and Development Association (BCCDA) Ramroop Rajnauth says the Berbice River bridge is underutilised and a reduction in tolls could see increased traffic and more revenue for the bridge company.
“It is in my opinion that the bridge is underused and that is understandable given the current cost to cross it,” Rajnauth told Stabroek News, while noting that the current daily capacity is underwhelming compared to that of the Demerara Harbour Bridge. He thinks there is a high possibility that the daily traffic would increase if the tolls were reduced, which could positively affect the company’s financial status.
“It make sense, you know; people who have their own cars sometimes are forced to carpool and take buses because of the toll. Now, if you reduce the toll by a large amount, then people won’t think twice and use their own vehicles,” he said, while pointing out that the BCCDA is concerned about the situation between the company and government and hopes that they reach common ground as soon as possible.
Rajnauth’s statements come amidst a tug of war between the APNU+AFC government and the Berbice Bridge Company Inc (BBCI) on the reduction of tolls.
While the government has proposed subsiding a portion of the current tolls for the public, the company has warned that is under threat of insolvency unless it can restructure its financing. As a result, the company has proposed an extension of its concession agreement from 21 to 50 years or the grant of a subsidy based on a higher toll structure that it had been trying to get the previous government to greenlight.
With no agreement by the company on the government’s proposal, State Minister Joseph Harmon announced on Friday that Cabinet has given approval for a taxi service across the Berbice River as a means of bringing financial relief to students and the elderly.
Harmon said the river taxi service will first be introduced through a pilot project utilising two covered launches. He added that government will not be providing the vessels; rather, its involvement will be limited to the provision of necessary infrastructure and a regulatory framework.
No provision can be made to provide crossing for vehicles since the terms of the previous government’s contract with BBCI prohibits the use of vessels for the crossing of vehicles.
Rajnauth told Stabroek News yesterday that while the implementation of the river taxis would plausibly ease the strain on Berbice’s travelling public, the government and the company still need to work together to find a middle ground in order to reduce the tolls.
“Anything they can do to assist with the children, elderly, and anyone in need with getting over the bridge is accepted by us,” he said, while stating that the BCCDA thinks the initiative is a wise move.
Region Six Chairman David Armogan told Stabroek News that he believes the introduction of the river taxis is a good idea but emphasised that the government has to invest in an adequate long-term plan. “First off, you have to guarantee these guys who will provide the boats that their investments will be long-term… no one is going to want to invest in a short-term option,” he said yesterday.
Armogan added that while speedboats would have been a cheaper option and would reduce the travelling time for the public, they would have also been more hazardous for the children and elderly. He said using the river taxis is the best solution because they can carry more people and are much safer, even though it might take more time to cross the river.
‘Heavy burden’
Rajnauth said in light of the BBCI’s indications that it is experiencing financial problems, the government should investigate the claims and offer as much assistance as possible. He added that if the situation continues as it is, then it could paint a negative image to foreign investors, which would deter them from making future investments in the country.
Rajnauth suggested that if the government and the company cannot reach a middle ground and agree on a permanent subsidy and toll reduction, then the BBCI should entertain the idea of lowering tolls for a trial period and see how it affects the daily travel capacity and its financial status.
Rajnauth added that contrary to the popular belief, he doesn’t think that the reductions would significantly affect the bridge. “What is frustrating is that the company wants to have a 50% increase and that will only affect the consumers in a negative way,” he stated, while pointing out that if tolls had been raised, the increase would have affected the prices of goods coming from Berbice and would deter anyone who wanted to leisurely travel over the bridge. “The Chamber is not saying the company shouldn’t ask for an increase but it would be a heavy burden for all the consumers as we are not in any position to be able to deal with a toll increase,” he added.
Finance Minister Winston Jordan last week revealed that there had been a move to impose a further 55% increase in the tolls for the bridge and emphasised that the current administration would not agree to it.
During his budget presentation in August, Jordan had announced that with effect from September 1st, the toll for passenger car and buses will be reduced from $2,200 to $1,900, representing a 13.6% reduction, while the toll for all other types vehicle will be reduced by 10% as government would provide an a subsidy to the company.
The company, however, maintains that no agreement was reached and that it would raise the matter with its stakeholders, including creditors, to decide on a way forward.
