Economy

■ Andrea Perez-Sobers

andrea.perez-sobers@trinidadexpress.com

ONE economist is calling for online payments and more scanners to increase efficiency at the Port of Port of Spain.

Dr Vaalmikki Arjoon's comments follow the disturbing disclosure last week, at the Parliament's Joint Select Committee (JSC) on National Security that no scanners are operational at the Port of Port of Spain and three officers are tasked to manually inspect thousands of containers that enter this country.

Arjoon told the Express yesterday, that over the years, Port and Customs inefficiencies have stymied the operations of the private sector and compounded the harshness of the local business environment, resulting in higher costs for businesses, slower turnaround times and ultimately higher consumer prices.

'Poor port infrastructure, together with the inoperability of the Port scanners and unproductive Customs practices naturally delay importers getting access to their goods for distribution and resale, and raw materials and equipment for the manufacturing process. For instance, at the Port of Point Lisas, containers are delayed by as much as 13 days at the examination station waiting for a bay, largely due to non-functional scanners. This is unfathomable especially since the budget allocated $90 million to Customs for scanners,' he lamented.

Arjoon noted that such practices are also hurting those involved in the hauling industry, as their trailer trucks are delayed at the Port waiting for the shipments to be cleared so they can transport it to the consignee.

'Naturally, this will also cut into their revenue streams, which is an added burden given that their fuel costs have surged with the reduction in the fuel subsidy. Given that containers are not being cleared, it also limits the number of empty containers available for manufacturers to access for export use, making it difficult for them to satisfy export orders on time. This again stymies forex earnings, which is unfair to manufacturers, especially since they have to pay their suppliers and for shipping using foreign exchange,' he emphasised.

Further the economist said it is high time that T&T allows importers to pay their customs duties online via the single electronic window. They still have to go to the Customs cashier at the Port to pay and it is cash only if its less than $5,000.

'If it's more, you have to go to the bank for a manager's cheque which can take quite a while and incur bank charges. Online payments could allow for much faster clearance and therefore less delays in their overall production process,' said Arjoon.

He added that inoperability of customs scanners also encourages more customs overtime-to get goods cleared faster, inspection might occur at the business premises after working hours, so the business has to pay overtime, which is around $3,000-it is the importing business that has to foot this bill.

'These charges can be higher depending on how far the customs officer has to travel to get to the business premises. However, many businesses are more likely to use this overtime facility just to be able to have their goods cleared faster and lessen the delays in their operations especially since they don't wish to lose out on sales during this Christmas season. But having to pay overtime charges is yet another added cost which will be passed to the consumer as higher prices,' Arjoon concluded.

'POOR INFRASTRUCTURE': Economist at the St Augustine campus of The University of the West Indies, Dr Vaalmikki Arjoon.