Art 4 :To derive and continuall review Marketing and Shipping strategies
1 It is evident that these facilities were more beneficially occupied
•before the birth of the Organization of Petroleum Exporting Co'untries (OPEC)
when the price of oil was as such before it skyrocketed to xanprecedented
levels and remain relatively high today. But this situation has chauige the
thinking and most significantly the volxame of imports to the non-producing
oil countries as Guyana. Cotin tries like Guyana which depended on the
importation of oil for their industries, had to expend a significant part
of their foreign exchange earnings to cushion the cost for oil. Gtiyana,
like most other coxmtries in this dilemma, countered with import restrict
ions on msuiy consumers goods- tinned foodstuffs, sardines, com-beef, and
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later flour among other things. This engendered the rise of the barrel
culture, reconditioned second hand market for cars and other tramsport
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vehicles, and a new brand of entrepeneurs- the traders . These made quite
a lot of items available which were not forth-coming throtigh the government
tal source. Moreso, these composed a significant part of liner shipping to
Guyana especially diiring the Christmas season.
Never-the-less, from the latter part of last year, the Hoyte’s Administ
ration has loose some of the restrictions and a significant quantity of
consumers items including flour is back on the market. The consequence to
this development is that the facilities which were lying idle for years
are returning to the stream of activities. Moreso, the future plan incorp-
orate the development of Guyama's off-shore potentials of oil aind the develop
ment of hydro power. In the latter, in 1984, a major project was undertaken
by the International Development Association as its financier which eventua
lly lead to four companies purchasing information packages on Guyana's
hydrocaucbon potential. These counpanies had until July, 1987 to make bids,
proposing their work programme, for six exploration blocks ( one in the
Tadcutu basin near Brazil and the others offshore. We can envisage the effects
of having cheap electrical power for our industries. This would mean that
the cost of production would decrease and thus the cost of the end product
will be lesser. Our commodities could then be sold on the world market at
more competitive prices. This will give rise to increase trade (in both
imports and exports):and this will exert pressure on the available port
facilities. Consequently, we see the heed for a working port administration.
There are areas that we have not covered, and it is not that we consider
them less significant; but on the contrary, we consider such things as
infra-structural works- maintenance and improvements of quays, sheds,
buildings and in some cases break-waters and more; port security and training
are just some of the tasks falling under the ambits of a port administration.
Development of a Maritime Administration.
As a worthy counterpart of the port administration, we envisage the
development of a'-'Kational Maritime Administration. In the development of
our offshore oil potential, the body which is likely to deal with such matters
at the national level would be a maritime administration (Marad). In the
countries of the developed world, the Marad deals with matters related to
the maritime field concerning the nation's economy and its revenue, with
national security, with the welfare of the people, and with the environ
ment in »rtxich they live. Econimic factor play important role in the life of
a nation. A nation must protect itself against acts of piracy, and the
illegal harvesting of its mineral resources and fish reso\irces. Its young
merchant marine, of whatever magnitude, plays a crucial role in its domestic
and international trade.
To maximize the collection of its revenue, legal structures may be devised which establish oustoms laws, identify or authorize special offshore customs zones, and set up agencies of government to enforce maritime law. Individual nations have established two hundred miles economic zones . Maritime adminis
tration, customs agencies,fisheries, port authorities, pilot associations coast guards are some of the agencies established to enforce law and super vise national programmes.
Most countries have experimented with their competent authority for shipping as a field of governmental activity. In the case of moat of the Scandinavian countries, shipping falls under the ambits of the department of Commerce. Countries like the Federal Republic of Germany, United Kingdom and America (the last two have changed the administration of shipping from
time to time from one Ministry to another) have considered that shipping to be part and parcel of the complex chain of transport and consequently, have confined the administration under the Ministry of Transport. France have taken a different route. For sometime now, the French had established a*Ministry of the Seal comprising the offshore industry, fisheries and
shipping.
However, the organizational pattern of a shipping administration resembl es very much that of the state in question. Generally, with a centralized administrative governing body existing, there will also be a similar type administrative whether it be in the context of port or maritime administrat ion, Whereas;port administration in'states with federal administrative
a
structures is usually decentralized, shipping is, to a very large extent, a matter for the federal government. A typical example of this situation is
the United Sta'tes of America where the Federal states have their autonomy in the field of the administration of their ports, shipping is firmly entrenched in the hands of the government.
N o t-with-8tending, one of the major task of any Marad will be the matter
of safety and the development of the necessary regulations in conjunction with internationally recognized standards with regards to the relevant
conventions etc.
In the case of Guyana the situation is a sad one as regards the inter
national Convention*. Prior to o\ir achieving the status of independence, the