BSCFA Pleased with Expert’s Report on Port Charges  

Earlier this month, the Belize Sugar Industries issued a press release on the report by the independent expert commissioned to determine port charges and how they should be applied. In the release, the B.S.I stated that Hugh O’Brien concluded that the industry was saving significant costs from the transition to the Port of Big Creek through more efficient loading. And today, the B.S.C.F.A has issued a release of its own release in which it stated that O’Brien’s report looked at much more than just that one element. Chief Executive Officer of the B.S.C.F.A, Oscar Alonzo says there were several other port-related charges that O’Brien’s report analyzed and made recommendations for, and that a few of these were concerns that they had raised concerns over. And while the B.S.C.F.A is satisfied with the work that O’Brien did, they express in their release that there are other critical cost items that require evaluation, such as local handling charges and manufacturing allowance. Alonzo shared with us the other charges that O’Brien analyzed that they were happy with.

 

Oscar Alonzo, Chief Executive Officer, B.S.C.F.A

“The report also included recommendations from the expert on how information can be recorded and be provided in a manner that would make it transparent and accountable. And it is similar to what we have been raising with BSI, right, that one of the recommendations that we had made was the fact that these costs need to be separated. In the negotiations there were proposals to change in the deduction terminology of ocean freight to ocean freight and terminal handling charge as one cost classification. And we had been asking that they be separated and that separate figures be provided for each of them. Also, there was the proposal in the negotiations that cost of stevedoring be mingled with throughput fee. And again, we had requested that this cost be separated and in order to provide greater and a better understanding and a better appreciation of the values of these, costs, right. In the metric value statement that is provided by B.S.I in the calculation of the price of sugarcane, it appears that these costs will be enumerated in that fashion and we agree with the independent expert that these costs should be separated, should be itemized and the figures provided for each of them. There’s the other issue regarding the use of the terminology “tons” right. Different documents use different definitions of ton. Some use metric ton, some use short ton, some use long tons. And this also creates a bit of misunderstanding, noh. So those were the two main recommendations, right that the expert made in order to provide real transparency and accountability.”