Ramps Logistics Guyana Inc – which has 49% Trinidadian ownership – yesterday said that it has been denied a local content certificate, a development that will fuel the growing debate over regional interests gaining access to opportunities in the oil and gas industry here.
“We applied in April and were asked for additional documents, all of which were submitted by June[1st].
“On June 8th we got an automatic email stating our application was denied. We do not know why it was denied. We reached out to the Secretariat and received the same response. A lawyer’s letter was subsequently sent seeking answers but still no response. We are unaware as to if it has anything to do with Arapaima”, an official of the company told Stabroek News yesterday.
The business the official referred to is Arapaima Logistics Incorporated which was formed in February of this year when Ramps entered into an agreement with local company Roraima Airways Inc. The agreement saw the newly established company becoming a majority-owed Guyanese company as Roraima secured 51% of the entity and Ramps 49%.
When it was launched, the company in a statement said that its objective was “to empower farmers to have guaranteed markets for their products.”
Up to press time, Local Content Secretariat (LCS) Head Martin Pertab could not be reached for comment on the Ramps Logistics claim. Ramps Logistics is expected to hold a press conference today on the denial of the certificate.
In an interview in April with Stabroek News, Ramps had said that pivoting from its focus on serving the needs of Guyana’s oil and gas sector, it was seeking to establish a foothold as a leading agricultural produce exporter and supplier to the North American market for Guyanese farmers.
“When we went to Guyana in 2013, there was no talk about oil. When we first went there we really went to look at agriculture, mining and bauxite. In particular, those were three of the areas that we thought had good potential on the Guyana side,” Ramps Logistics’ Chief Executive Officer (CEO) Shaun Rampersaud said.
He explained that after the Trinidadian-based company saw the opportunity to service the logistics needs in the oil and gas sector, it cashed in on the opportunity, which meant having to shelve their original plan.
Rampersaud said that his company saw the opportunity as an “engine of growth” and as a result focus was directed towards that goal. Nonetheless, he said, the decision to return to the original plan of exporting agricultural produce was driven by the government’s commitment towards developing the sector and ensuring it was sustainable.
“We thought that, again, this is a time for us to relook at our re-entry into the Guyanese agricultural industry. And when we look at the production of rice—of course, everybody talks about rice—but we think that there’s a huge opportunity in other areas as well.”
Rampersaud had noted that Guyana has the potential to supply produce, such as coconuts, plantains, ground provisions, and pumpkins to the US market and shortly after they announced that they had made their first export of 40,000 coconuts originating from the Pomeroon area, to the US.
Guyanese company
Concerns have been raised about the Local Content Law with the business community here expressing concern that foreign companies would capitalize on the loopholes in the criteria which define a local company. In addition it was pointed out that foreign companies coming here would register at the Deeds Registry and thereafter be referred to as being 100% Guyanese.
But the legislation passed in December states that to deliver on its legislative target, it “puts in place regulatory mechanisms to implement, investigate, supervise, co-ordinate, monitor, and evaluate participation in local content in Guyana. Altogether, the Bill provides for the promotion of competitiveness, and the encouragement of the creation of related industries that will sustain the social and economic development of Guyana as well as other related matters.”
Making it explicit that when “Guyanese company” is referred to, the Bill states that it should be interpreted to mean “any company incorporated under the Companies Act – (a) which is beneficially owned by Guyanese nationals who ultimately exercise, individually or jointly, voting rights representing at least fifty-one per cent of the total issued shares of the company; and (b) that has Guyanese nationals holding at least seventy-five percent of executive and senior management positions and at least ninety percent of non-managerial and other positions.”
A “Guyanese national” means a citizen of Guyana.
Freight forwarding
Ramps describes itself as a leading provider of freight forwarding and supply chain management services.
“For over 30 years we have been offering transportation and logistics solutions. Our customized technology and solutions support the way our customers want to do business, wherever they are in the world”, it said on its website.
Meanwhile, without mentioning Ramps Logistics, the Private Sector Commission yesterday issued a statement supporting what it said was government’s effort to prevent the circumvention of the local content law.
“The Private Sector Commission (PSC) fully supports the Government of Guyana’s intention to take strong action against entities that are attempting to circumvent Guyana’s Local Content Law. The PSC is concerned by the ongoing practice to bundle contracts which often limits local businesses participating in the value chain. The Commission will continue its advocacy to ensure that the Local Content Law aids the utilization of Guyanese goods and services and supports skills development, and the training and employment of citizens,” the statement said.
The PSC recognizes the commitment shown by the Government of Guyana to ensure that Guyanese benefit from the oil and gas industry, but notes that the onus is also on the business community to support implementation of the Local Content Law. The Commission continues to encourage local businesses to get registered by visiting the Local Content Secretariat at 116-117 Cowan Street, Kingston, Georgetown and share their experiences regarding local content,” it added.
This newspaper had reported that the Georgetown Chamber of Commerce and Industry (GCCI) had registered its concern about the he bundling by oil contractors of hazardous and non-hazardous waste management into a single contract. Head of the GCCI Timothy Tucker had said that it puts Guyanese companies at a significant disadvantage as they do not currently have the capacity to handle this volume.
LCS Head Pertab had told Stabroek News that the regulatory body had received complaints and was addressing the matter.
“We have received complaints of cases where waste management services were bundled into hazardous and non-hazardous waste. While there is little doubt about our local capacity to handle non-hazardous waste, the same cannot be said for handling hazardous waste since some of our local providers are yet to develop that capacity,” he said.
Arising out of the complaints the Secretariat has now included stipulations in the procurement process to erase future problems of the same kind.
