Trucking sugar from Berbice to G/Town to cost in excess of $200M

Jul 13, 2010 News

– Negotiations ongoing to use bauxite terminal in Corentyne – Persaud

While there have been many critics of the heavy costs attached to concentrating Guyana’s sugar exports from the Demerara terminal when the bulk is produced in Berbice, Agriculture Minister Robert Persaud says that at present it cannot be avoided.
On Friday, Minister Persaud explained that at present the terminal in Demerara is the only one that could allow for the large vessels needed, and for quality control standards.
The Agriculture Minister did point out that there are negotiations ongoing with the bauxite company in Berbice for the use of the terminal. This would dramatically reduce the costs of exporting, he said.
He said that shipping by river or rail would be the ideal thing but the circumstances limit the options available.
Freight costs from Berbice to the Demerara Sugar Terminal is some US$8 per tonne and some
145,000 tonnes are expected to be transported this year, putting the total cost in the vicinity of in excess of US$1M.
The Minister explained, also, that what continues to be a bugbear is the encumbrance that relates to shipping directly from the Skeldon sugar factory via the Corentyne River.
In 2008, the Guyana- registered vessel, MV Chandra 1, was seized by the Surinamese military in the Corentyne River and was subsequently released after an agent acting on behalf of the owner paid a heavy fine.
The vessel, which was on its way to Skeldon to transport bulk sugar for export, was escorted to Nickerie by three military vessels, a move which Guyana had deemed an act of aggression and protested.
The Surinamese are adamant that one of their pilots be used among other requirements.
President Bharrat Jagdeo had told the media that Guyana does not recognise Suriname’s administration of the waterway.
He said that the Corentyne River was a border river on which both countries should have user rights. In the case of Suriname, he said that the neighbouring country was trying to impose sovereignty unilaterally over the river, even though Guyana has indicated a willingness to discuss the issue.

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Trucking sugar from Berbice to G/Town to cost in excess of $200M

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