Guyana Vice President Bharrat Jagdeo discussed plans for the development of a massive deepwater port in Berbice. The government is aiming for a port that could significantly improve trade logistics, reduce shipping costs, and integrate with northern Brazil’s trade routes.
“If we can ship bulk, the big ships can come in, you can cut the cost of freight by maybe 60%.” Jagdeo explained during a press conference on Wednesday. He said a direct shipping route to Guyana would eliminate delays caused by transshipments through Jamaica and Trinidad, positioning Guyana as a hub for re-exporting goods within the Caribbean, Suriname, Brazil, and beyond.
According to the Vice President, the government has received several proposals for the port, which are currently being evaluated based on their feasibility, the expertise of the developers, and their financial capacity. He has said the government is considering proposals from Dubai and India. He stated, “We believe that the best model should be a causeway model going out, right into the deep, that would allow the largest vessels in the world to come here.”
While this model might incur higher initial costs, Jagdeo said it promises significant long-term savings by reducing dredging expenses and enabling the accommodation of the largest vessels. Though this model is preferred, the government is open to others as long as someone makes a sustainable proposal, he said.
The government’s vision for the port includes a road to northern Brazil and potentially a transmission line for electricity sales from a potential large-scale natural gas development. Jagdeo explained, “Part of the revenue stream to make this project sustainable has to be the integration with Brazil and the business in and out of Brazil. Because on its own, we may not be able to generate enough of a revenue stream to pay back the capital cost and to give a decent rate of return to the equity investors.”
Vice President Jagdeo named several “growth hubs” that could be bolstered by the operations of the deepwater port and integrated projects. These include agriculture (corn, soya, dairy, pork), tourism (new hotels and eco-lodges), the oil and gas industry, and the ICT sector.
There is no definitive timeline as yet for the port.
The Vice President has addressed misconceptions surrounding the ‘Berbice Deep-Water Port’ being developed by CGX Energy. He had stated that CGX’s facility was “never a deep-water port,” emphasizing its inability to accommodate large vessels like the Panamax, which can transit the Panama Canal.
