BaiShanLin now transporting stones

Aug 09, 2015 News

– pushes local barge operators out

Local barge operators are crying foul against Chinese logging giant, BaiShanLin Forest Development Inc, which has come out in full competition against them.

An overhead view of the BaiShanLin’s barge building operations and compound in Region 10.

The company, which was granted massive concessions by the past People’s Progressive Party/Civic (PPP/C) government, is now reportedly contracted to one prominent hardware giant to fetch stone from its quarry to the East Bank Demerara outlet.
BaiShanLin has reportedly brought in scores of trucks to conduct forest activities in their concessions. However some of these trucks were offering services at a cheaper rate to local loggers.
It would not be the first time that the Chinese logging company has reportedly been using its duty free and other concessions to openly compete with local businesses.
Truckers, who have been hauling logs, have also complained of being robbed of their livelihood through unfair competition.
According to reports reaching this newspaper, BaiShanLin entered into a two-year agreement with local hardware company, Toolsie Persaud Limited, earlier this year, which saw the Chinese company offering to transport as much as 2000 tonnes of stone, at a much cheaper price than local operators.
This, according to one barge operator, meant that the foreign company was offering service charges so low that no construction company would refuse and they were able to do this through the massive concessions given to them on the basis of their logging operations.
It is understood that as recent as last Friday, BaiShanLin’s barge and tug offloaded some 2000 tonnes of stone at Toolsie Persaud’s Providence facility.
A staffer said that BaiShanLin’s office behind Princess Hotel at Providence was handling all queries and there is another barge available for hiring.
The company is also reported to have dropped off another 2000 tonnes of quarry materials last Monday, in keeping with its new arrangement with Toolsie Persaud.
According to one operator who had complained to Kaieteur News, he has not done any work for the last few months because of the activities of BaiShanLin.
He believes that the Chinese company has the big edge as it had brought in its equipment and built its barges using duty free concessions and could therefore readily offer low prices.
The problem, he pointed out, was that it was supposed to be for the purposes of logging.
“We want to show that these people are continuing their logging and now stepping in and taking over the little we have.”
He also pointed out that local operators had debts to pay to the banks, while BaiShanLin had no such trouble, operating under the cover of a foreign investor.
He made it clear that it was imperative for the Government to ensure that BaiShanLin stayed within the limitations of its contract with the Government of Guyana and not step outside to “take bread out of my mouth”.
With Bai Shan Lin already using its barge and tug for transporting quarry materials, it is reported that the company has as much as two other barges ready to go into operation.
With several barge operators already feeling the squeeze, the operator made an appeal for Government intervention.
BaiShanLin is already under the microscope after years of failing to produce any value added goods or benefit to the local economy. Its failure to implement wood processing facilities has been criticized by the A Partnership for National Unity/Alliance for Change (APNU+AFC) administration.

The BaiShanLin barge being offloaded at Providence on Friday.

The company was under investigation by the last Parliamentary Opposition for its logging and mining practices.
Under the Bharrat Jagdeo and Donald Ramotar administrations, the company was granted billions of dollars in tax breaks and duty free concessions, and was allowed to import scores of trucks and other pieces of heavy equipment.
Specifically, the tax breaks and duty free concessions were for them to use in their logging operations. The company was able to build at least one barge and has long been in the process of constructing at least two self-propelled barges at its Linden location.
Reportedly, they have also been granted concessions and license on fuel imports, giving them a clear edge in not only the logging and mining sectors, but the transportation arena which they have now entered.
BaiShanLin has also reportedly been using its barge to fetch logs of private operators along the Berbice River.
The previous PPP/C administration, led by Jagdeo and Ramotar, has been consistently secretive about the details of the investment agreement with BaiShanLin.
The company has also been blamed for a major spike in wood exports in recent years.
Last year, a flyover of the Berbice River area saw huge areas of cleared lands with piles of logs as far as the eye can see.
Recently, Minister of Governance, Raphael Trotman revealed that Government has met with BaiShanLin and Vaitarna Holdings Private Incorporated. During the meeting, the companies had promised to get their wood processing facilities up and running within months.
Trotman had noted that the companies will not escape sanctions should they fail to make good on their promise. He had indicated that their contracts would be reviewed if these further promises were reneged on.
Efforts to contact senior officials from Toolsie Persaud yesterday were futile.