Plipdeco ‘fast tracking’ Galeota

The Point Lisas Development Corporation (PLIPDECO) is gearing up to manage the new US $60 million service port at Pt Galeota. The corporation was mandated by Government to take charge of this project last year. It will hold a minimum of 51 percent shareholding in the undertaking and is already looking over a list of “highly reputable” international and domestic companies which have displayed interest in the project. To push the Galeota port, PLIPDECO has approved a one for two rights issue. In a letter to shareholders dated June 2, 2003, PLIPDECO chairman, Cdr Kayam Mohammed said the new issue of shares will enable the organisation to raise the necessary capital to facilitate the growth and development of its cargo handling facilities. The company will issue and offer for subscription by shareholders 13,208,561 new ordinary shares of no par value by way of rights to holders of the ordinary shares of PLIPDECO on the register of members on the close of business on the record date on the basis of one new share for every two ordinary shares then held at an issue price of $7.70 per ordinary share. The share price of PLIPDECO immediately prior to the announcement of the rights issue on April 23, 2003 was $11.15. The company proposes to raise $100 million, net of expenses from this issue. The funds from the rights issue, he said, will be used to equip these facilities as the company moves towards its overall mission of becoming the trans-shipment hub of the Caribbean and the Gateway to the Americas. Peter Clarke, managing director, West Indies Stock Brokers Limited (WISE) said even though the rights issue only opened on Monday, a few people have already taken up their rights. He said this  is a very unusual, since activity with regards to issues are normally seen about a week or ten days before the issue closes. Additionally, he said people have only just started receiving their documents.

However, Clarke said he expects the issue to perform well and might even be oversubscribed. Last year, Energy Minister Eric Williams announced that government was undertaking the Galeota port project which was supposed to start in March this year and be completed by October 2004. He said the Galeota Point Port Facility is to be a separate entity from the berthing facility which already exists in that area. That facility, owned by oil giant bpTT since the late 60s, has been used to service the oil companies offshore the East Coast Marine Area (ECMA). The Port of Houston Authority will provide technical assistance to the project, Williams said. However, sources said bpTT was not too pleased with Government’s intention to construct a port in that area. bpTT, sources said, wanted to expand the existing facility. But Williams said while bpTT has a berthing facility in the area, the Government has nonetheless invited all energy companies to take an interest in or use the port, when it is completed. PLIPDECO’s 2002 annual report said it is ready to move swiftly ahead with its future vision for Berths six through 11 with the participation of strong and progressive joint venture partners. In light of this, positive interest has already been expressed by several major players in the industry.

According to Capt Baddaloo, the project is on an “extreme fast track” approach and an Environment Impact Assessment (EIA) is now in progress. Its scope includes reviewing alternative designs and their respective impacts. This will be studied in the technical feasibility oversight of the project which is being conducted by Lee Young and Partners. The study was expected to be concluded by the third week of April, but Capt Baddaloo said it is now nearing completion and is on the right track. He could not provide any more details. The findings of the study will confirm what the final project will look like — its scope, orientation and all the physical works that will have to be done. The final concept and objectives, Capt Baddaloo said, will then be mapped out with inputs from Ernst and Young Consultants, who have been retained to help with the economic feasibility and the collection and dissemination of information. Williams said the site for the project is a small bay on the western sheltered side of the Galeota peninsula on the southeastern tip of Trinidad on the Guayaguayare bay. Capt Baddaloo said the tender documents for the dock section of the project was supposed to be ready for circulation by the end of April and that construction should begin in another four to five months, or by October 2003. “So the dock should be ready in good time for the projected deadline of October 2004,” he said. At present vessels servicing the oil rigs off the eastern and northern coasts of Trinidad, use alternative sites in Trinidad as a base for fueling, repairs, collecting materials and similar activities.

This necessitates a considerable amount of travel for vessels working in the eastern zone, somewhere in the vicinity of 14 hours. Port Pt Lisas won the coveted Port of The Year Award for 2001, the second year running against stiff competition from seven other Caribbean ports.  The award is offered every year by the Caribbean Shipping Association (CSA). As the owner and the landlord of the Pt Lisas Industrial Estate, PLIPDECO leases land to tenants and is responsible for the development and maintenance of infrastructure and landscaping. Most of the estate, which offers unparalleled facilities for industrial clients, has been successfully leased. PLIPDECO is now seeking to establish greater strategic alliances with other organisations and landowners in the greater Couva area, with respect to making additional industrial sites available. The company has taken a concrete step in this direction by signing a Memorandum of Understanding with the new Estate Management and Business Development company (EMBD), that has been charged with the responsibility of developing Caroni lands. According to PLIPDECO’s president, Neil Rolingson, the Corporation experienced a six percent increase in turnover from its operating units, a decline in profits before tax of 15.6 percent, and a corresponding 14 percent increase in profits after tax over the previous year.