Overseas shipper withdraws service here
ESCALATING costs in tariffs and port handling charges at the Point Cruz Wharf would be passed on to consumers, a business leader has warned.
The warning comes as the saga surrounding allegations of possible money laundering and unapproved expenditures continue to dog the Solomon Islands Ports Authority (SIPA) Chief Executive Officer, Colin Yow.
The businessman said he could not offload his containers of goods, which arrived in Honiara on March 6 due to lack of berthing space.
“The ship is still anchored outside because there is no space at the Point Cruz wharf for the cargo vessel to berth. This is an added cost to us, which would be passed on to consumers,” he said.
The businessman, who spoke on condition of anonymity, said easing congestion and increasing productivity at Point Cruz are what Mr Yow should be doing instead of dealing in rice, noodles and seaplanes.
“What Mr Yow need to understand is that whatever costs we incurred would be passed on to consumers.
“Solomon Islands consumers would pay heavily in the end because it seems SIPA funds have been directed at the non-productive areas.”
Protracted delays in discharging cargoes and congestion at the Point Cruz Wharf have already claimed its first victim.
Bali Hai Shipping announced earlier this week it was withdrawing its Honiara services, claiming “ongoing port congestion and decreasing productivity at Honiara port continues to impact schedule integrity and the overall service provision to our customers.”
“Therefore, after careful consideration and in order to continue to provide a robust schedule between North Asia and the South Pacific the decision has been taken to omit Honiara from the service with effect from Kiribati Chief voyage 1602,” Bali Hai announced in a statement on Tuesday.
But it added it will continue to provide customers with an extensive number of competitive transhipment options using the Swire Shipping network instead between Honiara and all regional and global destinations.
“Management will continue to monitor the situation in the Solomon Islands and regularly review the potential to re-instate the Honiara call should the situation improve.”
Another local businessman said the potential for inflation was growing by the day.
He said port handling charges and tariffs have increased by as much as $1,000 since Mr Yow took up his appointment as CEO in January last year.
In the 14 months he’s at the helm, Mr Yow appears to have departed from his mandate on reforms recommended by international consulting firm, Singapore’s Business Dynamics.
Among other things, raising productivity and efficiency at the Point Cruz wharf was at the core of the recommendation.
“The aim, as recommended by Singapore’s top-notch international consultancy, Business Dynamics, is to grow and build SIPA to be a hub port for the Pacific …”
Instead, Mr Yow had allegedly spent more than USD$1.1 million in rice imports from Vietnam via a shell company registered in Singapore on 13 August last year.
This huge expenditure was said to have been done without the approval of the SIPA board.
It was also alleged that he awarded himself SBD4.7 million in bonuses after eight months in the job, again without the approval of his Board.
Earlier this year, he allegedly awarded his Board Members annual bonuses of between $150, 000 and $170, 000 apiece.
The first of these after-tax payments of more than $6, 100 per member a month was posted two weeks ago, again without the approval of the Board.
Mr Yow and his new chairman, former Attorney General, Billy Titiulu, were to appear before Government Caucus earlier this week, but the move was blocked as the government sees this as an attempt to undermine the SIPA Board.
Mr Yow was not immediately available for comments.
But in a published media statement last year when similar issue was raised, Mr Yow said congestion is expected due to the fact that “we have only one berth which can only accommodate one container ship at a time”.
“The current development of the new port here is for that purpose. Why don’t you demand this many years back where it has never been into practice?
“Currently our target for unloading and loading has hit the international standard.
“Since I am in charge of this office, we did close to 30 containers in one hour as in our record.
“We also recorded that in the month of May and June (2015); the number of days spent at anchorage is from 0-1 day only; meaning an increase in our productivity rate.”
The international standard is 25 containers per hour.
Mr Yow added that international ships should also take the blame due to ineffective schedules.
“It has to be taken into account that there are other factors contributing to congestion; such as weather conditions, and ships arriving at the same time due to delays at other ports.
“Shippers failed to declare that ships at anchorage are largely due to their ineffective schedules posed by delays, and other occurrences they are having.
“This is beyond SIPA’s control.”
He added that increase of fees is a matter of the shipping lines.
“Increase in fees is the matter and prerogative of shipping lines.
“It’s unacceptable to apply for the ports congestion fees by implying that SIPA is the cause of this fee.
“This is irresponsible! And blaming SIPA for the time at anchorage is a lame excuse.”
By ALFRED SASAKO and BRADFORD THEONOMI
