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WEDnEsDAy, noVEMbEr 27, 2013
The Avis
Local gov’t begins planning 
for Panama Canal expansion
WYNDI AMBROSE
ST. CROIX — While Virgin
Islands officials are beginning to
plan to develop the territory’s
marine assets, other Caribbean
countries have already begun to
maximize on the increased freight
traffic the Panama Canal expan-
sion is expected to generate in a
little over a year.
The VI Economic Development
Authority, the VI Port Authority
and the St. Croix Renaissance
Group have signed a memoran-
dum of understanding to collab-
orate to develop an international
transshipment port and enhance
other marine assets on St. Croix,
according to an EDA release.
With the expansion of the Pana-
ma Canal slated to be complete by
2015, more ships and larger ships
will be able to pass through the
channel, and reports have indi-
cated that the impact on global
shipping will be great.
The expansion, according to
EDA Assistant Chief Executive
Officer Jennifer Nugent-Hill, will
“increase the need for regional
transshipment facilities” within
the Caribbean. St. Croix, she
explained, has the potential to
become a “player in being a hub”
with its existing assets that could
make the island a major trans-
shipment site for ships en route
from the canal.
However, there are other major
players within the Caribbean that
can and will compete with the
territory for the increased eco-
nomic activity that will follow
canal expansion. According to an
article from Caribbean Maritime,
a journal of the Caribbean Ship-
ping Association, major compet-
ing hubs within the Caribbean
are Kingston, Jamaica; Freeport,
Bahamas; Port of Spain, Trinidad
and Tobago; Caucedo, Domini-
can Republic; Panama; and
Colombia.
Communist Cuba, for one, is in
the latter stages of constructing a
giant free-trade zone and con-
tainer port, according to a CNN
report.
The $900-million development
project will not just give the
island, a strategic 120 miles from
Florida, a fighting chance to ben-
efit as a transshipment hub for
the post-expansion ships. Accord-
ing to reports from the Cuba
Standard, a digital news service
for Cuban business and economic
news, the project also aims to
attract foreign companies by
allowing them to “import and re-
export goods with little red tape
and duty-free.” The recent CNN
report called the offer a “low-tax,
low-regulation environment in
which to manufacture goods” for
foreign investors.
Cuba will reportedly be com-
peting with other Caribbean and
South American countries like
Panama, the Dominican Repub-
lic and Jamaica with their already
established free trade zones.
“What are we (the territory)
going to substitute for that?”
questioned business owner and
St. Croix native Robert Schuster
in reference to the competition
that Cuba presents for the terri-
tory.  
According to Schuster, territo-
rial leaders are way behind in
their 
preparation 
for 
the
inevitable, global change and eco-
nomic opportunities that will fol-
low the expansion. According to
Schuster, if the government were
to be more transparent, practice
long-term economic planning,
privatize sectors like the Port
Authority, and foster the envi-
ronment for a more skilled work-
force, the territory would be able
to attract investments and
become economically stable.
“This is like locking the door
after the horse is gone,” he said
of the recent plans to prepare for
the canal expansion.
Nevertheless, plans are in the
works and the government seems
to be moving toward providing
the territory with competitive
advantages in the global prepa-
ration race.
EDA officials recently met with
an executive of one of the largest
container ports in Panama dur-
ing a trip where they attended a
Caribbean Shipping Association
Conference in Panama.
“They think we have an incred-
ible potential to become a region-
al player,” Hill told The Avis.
According to Hill and recent
EDA statements, Hovensa con-
tains a deep-water port with a
50-foot draft, which would meet
the requirements for the extreme-
ly large, post-expansion ships to
be able to pass through.
Senate President Shawn-
Michael Malone also told The Avis
the reason he pushed for the
recent Fourth Amendment Agree-
ment was because it allowed for
government use of the Hovensa
port.
Hovensa spokesperson Alex
Moorhead declined to comment
on the port’s capabilities on the
record.
Hill also mentioned a deep-
water container port facility locat-
ed at the St. Croix Renaissance
Park. The port does not meet the
requirements to facilitate post-
expansion ships, but with gov-
ernment assistance, it could,
according to Hill.
She emphasized, however, that
St. Croix could become a hub for
transshipment and not neces-
sarily a facilitator for the large
ships. If the territory is success-
ful in this feat, she said, it could
mean a more diversified job mar-
ket since transshipment opera-
tions would require truckers,
logistic operators, warehouse
workers and other skilled work-
ers.
In a prepared statement, Gov.
John de Jongh Jr. announced
his support for the development
plan.
“We are fortunate to have a
range of port facilities that, to
date, have been under-utilized
but with changing market con-
ditions and our focus economic
diversification are well positioned
to take advantage of regional
opportunities,” he said. “Addi-
tionally, this strength is exhibit-
ed in the partnership of St. Croix
Renaissance, EDA and VIPA to go
implement a coordinated plan.”
If the territory is going to be
able to maximize on St. Croix’s
marine assets and compete with
other islands, however, Caribbean
Maritime reports that ports must
have the following characteris-
tics:
• Be located at the crossroads
of principal maritime trade routes
• Produce stevedoring opera-
tions
• Guarantee berths
• Have competitive tariffs
• Have control of operations
• Provide safety and security
• Have dedicated feeder ser-
vices
Pictured is the
Hovensa deep
water port.
According to Vir-
gin Islands Eco-
nomic Develop-
ment Authority
reports, the port
has the ability to
accommodate
post-Panama
Canal expansion
ships. Hovensa
spokesperson
Alex Moorhead
has declined to
officially com-
ment on the
port's capabili-
ties, however.
Avis staff