CGX self-styles Berbice project as ‘Deep-Water Port’ but Jagdeo says it isn’t

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Vice President of Guyana, Dr. Bharrat Jagdeo said a facility being developed by CGX Energy in the South American country, styled by the company as the ‘Berbice Deep-Water Port’, “was never a deep-water port.” 

“Deep-water port would be a port that can bring in the massive vessels. In the Berbice River, that location, it’s hard to do a deepwater port,” the Vice President stated. “Deep-water facility would mean that you can bring in like the Panamax vessels…”

A Panamax vessel is the largest size of vessel that can transit the Panama canal. According to the American Association of Port Authorities, a Panamax vessel has a draught of 12 metres (m). CGX’s undertaking, according to reports on its website, is meant to accommodate a draught of 7m in a basin that’s 8.5m deep. US maritime agencies define deepwater ports as structures used to facilitate transport, storage and handling of crude, but they do not specify a required draught. 

CGX calls this project the ‘Berbice Deep Water Port’ on its websites and in its corporate presentations

Jagdeo said a proper deep-water 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 said the project is more in line with a facility to support the offshore oil exploration activities.

“Now, we’ve had discussions with them because even if it is a port to support oil activities offshore – because we expect a lot more oil-related exploration once we get through the bid round, you know, assuming we get 14 bids or even six of the 14 taken off the blocks – then you’d have an acceleration in exploration activity,” he added.

The Vice President pointed out that increased activity would mean more people taking up jobs and more porting and docking facilities and drilling vessels operating in the area. “So, they can probably use that there. So, that is what we are pushing them to do.”

The most recent advancement with respect to construction of the port has been the progress in the construction of a 50 x 12 metre access trestle from the quayside yard stretching west into the Berbice river. 

Gaico Construction and General Services is responsible for the construction of this trestle, under a contract that involves handling the capital dredging and construction of the wharf platform and access trestle. 

The contract price is CA$2.5 million. CGX said it paid CA$1.2 million in the six months period ended June 30, 2023.

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According to CGX’s recent quarterly highlights, the project is running on budget, and there have been no health, safety, and environmental (HSE) related incidents. The estimated completion of the trestle is set for August 2023. 

CGX said its subsidiary, Grand Canal Industrial Estates (GCIE) has undertaken substantial developmental work on the site, namely:

– Installation of vertical drains and geotechnical treatment of the quayside land.

– Completion of about 500 m of rip rap flood protection.

– Construction of a 10-acre quayside laydown yard with a bearing capacity of five tons per square meter.

– Development of an access bridge connecting to the main Corentyne highway and a 2.6 km access road built to American Association of State Highway and Transportation Officials (AASHTO) standards.

– Extension of municipal utilities like water and electricity to the port site.

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Adding to the project, CRI possesses a 16-acre plot that connects to the main port site. Out of this, around five acres have been transformed into a functional logistics yard. This yard, equipped with various facilities like fuel supply, office spaces, and sanitary blocks, is expected to bolster the port’s operations.

The port’s cargo terminal is set to begin operations in the first quarter of 2024, followed by the launch of the oil and gas support base in mid-2024. Factors determining this timeline include construction schedules, financial considerations, and supply chain dynamics. With significant infrastructure projects announced by the Guyana government in Region 6, CGX explained that there is encouragement to complete the port’s cargo functionalities earlier than anticipated.

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