Govt. explores development of deepwater port

Aug 30, 2023 ExxonMobil, News, Oil & Gas

– considers New Amsterdam as potential location

Kaieteur News – The Government of Guyana is continuing to explore the development of a deepwater port, Vice President Bharrat Jagdeo disclosed on Thursday.

Vice President, Dr. Bharrat Jagdeo

During his last press briefing, the Vice President shed light on the government’s long-term strategy to establish a national deepwater port. This announcement arose amidst inquiries from journalists regarding the substantial costs associated with such an ambitious endeavor.

In response, Jagdeo emphasized the importance of carefully evaluating various sites to ensure the project’s success. Among the potential locations being considered, New Amsterdam has emerged as a strong contender.

Jagdeo disclosed that multiple parties, including an Indian consortium, have shown significant interest in collaborating to bring the deepwater facility to fruition. However, a primary challenge for the New Amsterdam site lies in providing river access for port construction. Jagdeo highlighted that the focal point for port development is the river’s mouth as it is strategically positioned.

Further, he openly discussed the financial complexities tied to the dredging needed to construct such a facility, acknowledging the considerable expenses involved in the process. He noted that as the government explores its options, the substantial costs of dredging are being carefully integrated into the decision-making process.

Integral to the viability of the deepwater port project is the establishment of complementary infrastructure. Jagdeo underscored the necessity of devising a comprehensive framework that extends beyond the port itself. He also outlined that to warrant the significant investment, a crucial component involves establishing a connection with Brazil.

The Vice President elaborated on the reasoning behind this approach, stating that given the current import landscape, the government recognizes the need for a concrete and sustainable stream of benefits to underpin the proposed expenditure. Relying solely on import activity he opined falls short of justifying the substantial investment at this juncture. Therefore, Jagdeo stressed the importance of introducing a fresh avenue of advantage that can tip the scales in favor of the project’s feasibility. This innovative stream of benefit, as proposed by Jagdeo, revolves around fostering trade relations with Brazil.

Guyana had hopes for a deepwater port being built in Berbice by CGX Energy Inc, however, the Vice President recently came to the fore to note that though CGX self-styled its project as a deepwater port, the facts would show that it is not. CGX is an oil and gas exploration company focused on operations in the Guyana-Suriname Basin and is known for its involvement in offshore drilling and exploration activities in the region.

The company had announced the commencement of works on its “Berbice Deepwater Port” noting that construction activity had begun on a 50 x 12-metre access trestle from the quayside yard westward into the Berbice River, along with the necessary dredging of the river.

It had also noted that it would later construct a wharf, perpendicular to the trestle.

Addressing CGX’s projections, Jagdeo said the facility being developed by CGX “was never a deep-water port.” He added that “(A) deep-water port would be a port that can bring in the massive vessels. In the Berbice River, (at) that location, it’s hard to do a deepwater port.”

He indicated that the facility would not even be able to facilitate Panamax vessels which are the largest sizes of vessels that can transit the Panama Canal. Also, he said a proper deepwater port would carry a cost of more than US$1 billion to develop. In contrast, CGX Energy has spent a few tens of millions on this facility. He concluded that the project is more in line with a facility to support the offshore oil exploration activities, but is not a deepwater port.

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announcement, deepwater, Dr. Bharrat Jagdeo, port, Vice President

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