Shipping is a crucial sector for the Caribbean. Citizens depend on it for the transport of goods — from food to building materials — and personal travel. It is also a significant contributor to employment and tourism.
As shipping stakeholders gathered in Georgetown this week for the Caribbean Shipping Association’s 56th Annual General Meeting, Conference and Exhibition — held at the Guyana Marriott Hotel from October 25 to 28 — President Dr. Irfaan Ali urged industry players to consider how regional oil and gas developments can help fuel the sector’s growth, literally.
The suggestion comes on the heels of global calls to adopt more renewable energy sources in the maritime sector. Ali, however, noted that such moves may be costly and impractical for the Caribbean. Still, he suggested that natural gas reserves could be tapped as an alternative fuel source, if enough countries get on board.
Already, Trinidad and Tobago has massive natural gas supplies, much of which feeds its downstream sector. Confirmed reserves in Guyana and Suriname may augur well for the region, but those reserves, Ali noted, are already earmarked to bring down high energy costs in those countries and support new industrial projects — including a major cold storage facility and a food terminal and shipping hub.
Still, several other countries — Barbados, Jamaica, and Grenada — are venturing into oil and gas exploration. If confirmed finds materialise, Ali believes there is much greater scope for natural gas to fuel the regional shipping industry and beyond.
“How do we then become a major refuelling hub for ships?” President Ali questioned.
As stakeholders deliberate the future of the sector, there are other challenges to consider. Ali reminded the gathering that the ongoing Iran conflict has driven up fuel costs. In the region, uneven port infrastructure and limited security partnerships hamper enhanced regional trade. And climate change and geopolitical instability remain perennial challenges.
“Each presents a distinct challenge, however, they reveal an urgent need for an investment-focused approach for Caribbean shipping,” Ali said.
With that in mind, he urged stakeholders to craft a plan for the sector’s development that addresses these challenges directly. He also called on them to expand their engagements beyond shipping and maritime stakeholders to include financial institutions and private sector investors.
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