Maximizing the benefits of the blue economy

The Caribbean’s coastlines and maritime spaces are of vital importance to the economies of the region and represent an exciting and vibrant frontier for increased growth and development. As our understanding of the ocean economy continues to evolve, it is evident that the prevailing winds are driving us on a course towards improved efficiency, sustainability and stewardship.

This global campaign for sustainable harnessing of the oceans has been gaining considerable momentum in recent years, and has given to rise to the concept of the ‘blue economy’. According to the World Bank, the blue economy is “sustainable use of ocean resources for economic growth, improved livelihoods and jobs, while preserving the health of the marine and coastal ecosystem”.

The blue economy covers many areas. Chief among the established activities are fisheries; shipping; port and maritime logistics; marine coastal tourism and leisure; conventional minerals exploration and production; and marine construction projects. In the new economy, the emerging sectors which heavily feature cutting-edge innovation in their operations, encompass renewable ocean energy (including offshore wind), tidal and wave energy; offshore extraction of oil and gas in deepsea and other extreme locations; seabed mining for metals and minerals; marine aquaculture; marine biotechnology; ocean monitoring, control and surveillance; and education and research.

Untapped economic resources

Despite the increasing prominence of the blue economy, there are pockets of resistance that are slow to acknowledge the ocean as a true economic space with untapped resources that can strengthen the sustainable development process of the region. In fact, according to the United Nations Environment Program, ocean ecosystems are the least understood and most undervalued of all ecosystems.

The Caribbean Shipping Association fully endorses the concept of the blue economy and is committed to maintaining a sharp focus on sustainable marine economic activities that meet the needs of current and future generations. The opportunities are clearly there for the taking for the Small Island Developing States of the Caribbean. While the islands may be small in land area, the exclusive economic zones transform them into large ocean states.

An excellent case in point is the nine member states of the Organisation of Eastern Caribbean States. They have a combined land area of 3,500 sq km; however, they have jurisdiction over more than 350,000 sq km of the Caribbean Sea.

Role of the shipping industry

We recognise that, in the context of the blue economy, ports and shipping assume roles of higher importance. As we are well aware, ports represent critical infrastructure assets that function as catalysts of economic growth and development. Ships and maritime transportation are essential for most of the activities related to the blue economy, so an efficient, modern and productive shipping industry will contribute significantly to blue growth.

Shipping is already the most carbon-efficient means of transporting most goods across the world; and global maritime transportation accounts for 90 per cent of world trade. With improvements in fuels, propulsion systems, wastewater management, solid waste handling and emissions, the industry continues to strive for cleaner standards.

The CSA will continue to do its part to promote and facilitate the various areas of the blue economy; and we are of the view that "business as usual" is no longer an option in the face of changing environment and climate. Advancing the agenda of the blue economy in the region will require investments in infrastructure, conservation, research and development, institutional and human capacity development as well as greater technological penetration, information-sharing and knowledge-building. The challenges are many, but we believe that a dynamic and coordinated approach that fosters strategic thinking, public-private partnerships and meaningful engagement with all the relevant stakeholders will certainly enhance the development of the blue economy in the region.

Increasing cruise tourism spend

I would now like to cast the spotlight on a particular sector in the blue economy that is of considerable importance – cruise tourism. The global cruise industry is expecting 27 million passengers in 2018 based on projections by the Cruise Lines International Association, and the Caribbean remains the most popular cruise market with more than a third (35.4 per cent) of the global deployment capacity market share. The cruise industry is the fastest-growing category in the leisure travel market; and while the Caribbean enjoys a healthy market share as a destination, the region as a whole has been adversely affected by the diminishing spend of cruise passengers transiting Caribbean waters.

Statistics from the Caribbean Tourism Organisation show that cruise passengers spent US$ 2.4 billion in 2015. The 2015 study of the economic contribution of cruise tourism to the Caribbean by Business Research & Economic Advisors indicated that the average expenditure per passenger across all destinations was US$ 103.83. Since that time, many Caribbean countries have experienced varying levels of decline. The study also revealed that passengers spent an average of 4.38 hours ashore during their cruise call.

When these factors are considered against the backdrop of heightened competition among the various industry players, there is clearly an urgent need for solutions geared towards getting cruise passengers to spend more time and money on shore. This will most likely require dialogue and increased collaboration among the stakeholders to create a win-win scenario for everyone. Solutions may also include, where applicable, improving access from cruise terminals to shopping areas and attractions, improving the appearance of the routes used by passengers within the port to project a more inviting image of the destination, and ramping up promotional and branding efforts through various channels.

Destinations should also consider expanding and growing beyond the typical offerings by creating unique products and authentic experiences that provide value for money and motivate cruise passengers to leave the ships and dig deeper into their pockets. While there is no easy fix for this issue, I believe it is not beyond repair if we apply the appropriate measures and are receptive to deeper cooperation.

48th AGM in Panama

In closing, I would like to turn your attention to the CSA’s 48th AGM Conference and Exhibition, which will take place at the Hotel Riu Plaza in Panama City from 8 to 10 October 2018. An impressive regional trade hub with a mix of old-world charm, modern sophistication and natural beauty, Panama is home to Manzanillo International Terminal (MIT), the CSA’s host for this important event.

Celebrating 23 years of operations this year, MIT has established a sterling track record of innovation and efficiency. It commenced operations in 1995 in an area near the Atlantic entrance of the Panama Canal and now boasts more than 1,600 meters of quayside and gantry cranes equipped with modern computer and management systems. Proudly connecting over 160 ports in the world, MIT has distinguished itself as one of the most competitive ports in the region.

It is against this remarkable backdrop that shipping and logistics executives, service providers and experts from every field of the supply chain will discuss the burning issues facing our industry. This AGM Conference and Exhibition promises to deliver a stimulating and solution-oriented slate of presentations and meetings and I look forward to seeing you there.

David Jean-Marie
President
Caribbean Shipping Association