PSC sees reduction in freight cost with GAICO’s new US$7.5M dredge

Apr 25, 2022 News

– says silted rivers big factor in high cost

Kaieteur News – Freight costs in Guyana is twice as high as the rates in other parts of the Caribbean due to highly silted rivers here, according to the President of the Private Sector Commission (PSC), Mr. Paul Cheong, who anticipates such costs to be reduced, with a US$7.5 million investment by Gaico Construction and General Services Inc. into a new dredge, Malavi.
On Saturday, the company commissioned the vessel, at its Wharf in Nismes, West Bank Demerara where Cheong explained that Guyana’s rivers silt very quickly, thereby not only jacking up freight costs, but also lending to overtopping and flooding of communities.

Chief Executive Officer of Gaico Construction and General Services, Mr. Komal Singh

In fact, he lauded the company for its investment, adding that the importance of dredging was highlighted as one of the key areas that needed to be tackled, in addition to energy costs, to improve competitiveness.
Meanwhile, President Irfaan Ali who delivered the feature address at the event said that the investment by Gaico comes at a time when Guyana is faced with several challenges, including that of climate change. To this end, he told the gathering that studies suggests mud from the Amazon is drifting and flowing along the front of the Atlantic and into the mouth of the Demerara River which results in new mudflats being formed.
“That is a new issue that we have to deal with that you don’t have any control of. So, theoretically, the technicians are advising whether we encourage this, the building of the mud flats, and create new land, or use this as an opportunity to extend the sea defense outwards because the mud flats of course would lead to greater overtopping, or you have continuous dredging,” the Head of State explained.
Importantly, he said that when one examines the cost to mitigate these impacts, compared to the damages people are faced with as a result of flooding; it is nothing short of a “no-brainer” that investments must be made.
On the other hand, as it relates to dredging, the President said that boat operators currently operate in a river with a one-way channel. While he did not specify which particular river, he went on to say that in less than five years the government will have to get the waterway up to a two way channel. According to him, “And if you want to project further to what we want to achieve, you are talking not only about a two way, but a diversion channel on the west side of the river.”
Meanwhile, the Minister within the Ministry of Public Works, Deodat Indar spoke to the importance of the investment made by the private company.
He pointed out that the direction in which the country is moving points to an urgent need for the movement of construction materials in particular. To this end, the Minister related that the country will have to look to transition from the reliance on trucks to barges, to get better financial returns.
Indar applauded the family for being attentive to the needs of the government and private sector.
Chief Executive Officer of Gaico Construction and General Services, Mr. Komal Singh announced that the company will continue to make bold investments as it recognizes the support of the administration. In fact he said that the firm waited since 2017 for a permit it required to develop a facility, but was only furnished with same after the government changed. Malavi, a Trailing Suction Hopper Dredge will add to the company’s fleet of current vessels which includes Hopper Dredges, Cutter Head Dredges, Hydraulic Cutter Head Dredges, Tugs Barges Supply Vessels and Backhoe Dredges.
In a release to the media, the company said it is currently constructing a wharf and dry dock facility at Nismes. The completion of the first phase will see a laydown yard, a one-finger-pier and the wharf front at the Nismes foreshore area. This facility will allow materials and equipment to be offloaded from vessels and stored until they are ready for further transport.
GAICO believes since new infrastructural work in Region Three will increase, there will be an increased demand for construction material produced outside of the region. By allowing ships to moor at the facility, supplies headed to Region Three could be discharged straightaway – reducing transportation costs. Beyond this, however, this facility is strategically positioned to support the oil and gas sector directly – particularly, the forthcoming gas-to-energy project in nearby Wales.