Port's tariffs 'fair'

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE "net impact" of Arawak Port Development's (APD) new tariff structure is not "unreasonable" the company's chief executive said yesterday, telling Tribune Business that its fees would not add to but replace some of what was already levied on shipping operators. In an interview with Tribune Business, Mike Maura Jr described the Port's tariff structure as "fair", noting that possibility that its charges could come down. Mr Maura said: "I think the real question is what's changing, and honestly that's difficult to answer, because we would have to know what various arrangements each carrier has with their various terminal operators and no two are the same." Hea added: "You can't spend $83 million on a new Port and not have it impact costs to some degree. It's a difficult exercise because we don't know exactly what the carriers pay today for what they get, but it's important for us to remember what they are paying for Port fees today. What we are introducing is tariffs which speak to the port fees that will be assessed as of April 1." Mr Maura said that when the Port assesses its fees as of April 1, 2012, many of the charges and expenses the carriers have been incurring up to this point will no longer be assessed by a third party but Nassau Container Port. "You don't take our rate and add it to what they have been paying all along. There is a certain portion of it that goes away, and ours takes its place. I know that our charges are very fair, and I do know that there is the possibility that our port charges will come down," Mr Maura said. He added that it was difficult to say how much costs would increase for carriers as a result of the new tariff structure, noting that each existing dock has its own cost base. "If you look at John Alfred dock, for example, there is a landing charge of $120 per TEU [twenty-foot equipment unit]. If you look at our tariff, as of April 1 our landing charge is $120 per TEU," Mr Maura told Tribune Business. "If you look at Arawak Cay, for those carriers that have been coming there, there isn't a landing charge but there are terminal handling charges. There are no terminal handling charges on John Alfred Dock. I do not believe that the net impact of our tariff would be what I consider to be unreasonable." "In my opinion, for a nominal increase in costs for Port operations we stand to benefit well beyond what that charge is, specifically in the way better collection of import duties, a more secure environment, greater efficiency and the opportunity to develop downtown." One shipping company has already announced an increase in its fees due to increased operating costs associated with the Port's tariff implementation. Crowley has announced that effective March 4, 2012, it will apply a new charge to open tariff and contract shipments for both northbound and southbound cargo to New Providence. Crowley has announced that its Nassau port charges for its 20-foot equipment unit will be $150 per unit, $300 per unit for a 40-foot equipment unit and $350 for its 45-foot equipment unit. "Crowley has been impacted by the challenging market conditions and increased operating costs over the past several months, and is forced to pass along the increased costs associated with handling cargo at the new terminal at Arawak Cay," the company said.


Use the comment form below to begin a discussion about this content.

Sign in to comment