If the feasibility study into the building of a deep-water container port here determines that it is viable, the project would have to be undertaken by the private sector although government would support it, President Irfaan Ali says.
“There are a lot of pieces of work already been done but whoever will be doing this we are not looking, the government is not looking, to participate in this, but maybe support. But this has to be private investment and preferably in a Finance, Build, Own, Operate [BOO) model,” President Irfaan Ali told the Stabroek News in an exclusive interview.
Vice President Bharrat Jagdeo had two weeks ago clarified with this newspaper that while the port being built in Berbice by oil and gas company, CGX Energy Inc, is being dubbed a deep-water port, it was not. He explained that the port the company was building is a regular port and will support oil and gas activities.
A deep-water port, Marine Insight explains, is different from regular ports, with respect of the depth of water.
“A port is usually an area or platform entered into from the sea, by vessels, boats, ships, which also allows for protected staging and anchoring or docking for these ships to load and unload consignments and continue up towards its destination,” it explains.
“However, a deep water port is usually made up for the usage of very large and heavily loaded ships. The depth of water helps get them access to the deep-water ports. Regular ports are by and large of recreational types where the water is not more than 20 feet deep, whereas a deep water port is compatible with the large heavy loaded ships which may require the water to be 30 feet deep or even more. Deep water ports are also defined to be any port which has the capability to accommodate a fully laden Panamax ship, which is determined principally by the dimensions of the Panama Canal’s lock chambers,” it adds.
President Ali explained that this country will have only one deep water port, if found feasible, with the intention of being a container hub which supports the region and parts of South America.
“The deep-water port that we are planning for Guyana is one that looks at where Guyana will be positioning itself in a world 2030 and beyond; how it will integrate the regional demand with that port. So, it will not just be looking at servicing the oil and gas sector. That is just a small component,” he said
Further, he added, “It also has to do with our link to Northern Brazil; our infrastructure that would be required for that link and the bridging of the Corentyne River etcetera. So it will be container terminals, bulk terminals… and all the other build outs that surround a port of that nature. This is especially, given the fact that we would have to have, in our national gas strategy, an infrastructure that would support the further expansion of gas which includes the transport and logistics; which include the processing and then the storage facility. So all of that will be included in this national architecture that would not only serve Guyana, but serve the broader region.”
In November of last year, local company, Gaico Construction signed an agreement with Grand Canal Industrial Estates Inc (GCIE) to begin an in-river structures and dredging project for the CGX port. Grand Canal is a subsidiary of CGX Energy Inc.
“We have signed a contract and are in the process of mobilising to begin work in another month’s time… one of the important things with this project, and that we are very upbeat about, is that we want to recruit a lot of people from the Berbice area to work on it,” Director and Chief Executive Officer of Gaico Construction, Komal Singh, had told this newspaper following that signing.
While he would not go into the financial details of the project, Singh had said that the first phase of the project “exceeds US$6 million.” It was estimated to take about six months to complete.
It is unclear as to the current status of the project.
Notice of the project had stated that Grand Canal Industrial Estates Inc had begun construction of in-river structures and dredging operations at its Berbice Deep Water Port.
GCIE had acquired a lease from government for 54.96 acres of the Berbice River front lands on August 10, 2012 for a period of 50 years.
A presentation on the project stated that the company envisions that the port will service oil and gas exploration and production, agricultural export, containerized export, cruise ship docking and regional shipping, among other services.
The company disclosed that following a revision of the design of its wharf and trestle in the Berbice River, it was moving forward with the construction and dredging operations which launches the next phase of construction of its deep-water port project in Region Six.
It said that GCIE has already expended some US$22 million into the project, which is being built on 30 acres of land adjacent to the north of Crab Island, on the eastern boundary of the Berbice River.
The port facility is estimated to cost a total of US$80 million, according to CGX.
Ten acres of the plot has been set aside as a living laboratory for the study of mangrove habitats in coexistence with commercial port operations, according to the advertisement.
