GNSC opens new $126M warehouse
-Jordan urges company to seek partnerships to address financing deficit
The Guyana National Shipping Corporation (GNSC) officially opened a new $126 million stateof-the-art warehouse yesterday and Minister of Finance Winston Jordan used the occasion to urge the company’s leadership to seek partnerships in order to surmount its “critical deficit of financing.”
The new warehouse, located at Lot 1 Lombard Street, Georgetown, is part of a five-year modernisation plan.
Speaking at the commissioning, Jordan said that while the corporation is ideally situated and commands significant assets, it has no money to implement the “game changing” projects that can exploit the known advantages. “I, therefore, urge you to seek out partnerships to overcome this critical deficit of financing. On the government’s part, we have floated public-private partnerships. We are in active discussions with the European Investment Bank for some time now on a proposal which we will hope to see will result in your wharf being done,” he said.
Jordan also explained that in the changing business environment and with the constant advancement in technology, companies, such as the GNSC, must be able to respond and adapt quickly to the change in order to remain relevant and successful, while standing out from the competitors.
“In order to provide efficient marine transportation services, efficient warehouse management is paramount. In particular, an efficient warehouse service must have enough space to perform its inbound and out-bound functions in a timely manner,” he added, while stating that it is his hope that the new facility will add “one more attribute” that will make the corporation stand out in the field.
Jordan also highlighted the need for more modern warehousing policies and urged the company to adopt practices that will discourage cargo from being stored at the facilities for an excessive period of time. This, he said, is an inefficient use of the warehouse facilities and adds no value to the service being offered.
GNSC Managing Director Andrew Astwood, in a project overview, noted that the land where the facility has been built was formerly owned by the Guyana Pharmaceutical Corporation (GPC) but was bought for more than $300 million in 2000. However, it was not until 2015 that the company embarked on a programme to modernise the corporation and utilise the 3.4 acres of land.
The warehouse facility is the first new structure that has since been constructed and also the most costly one they have accomplished.
“…As a shipping company, warehousing is a core aspect of our business and as we planned our development this project was identified as an important capital development in our five-year strategic plan for the development of the corporation,” he said.
Astwood explained that they commenced in 2016 and the contracts for the works were put out to tender. On December 21st, 2017, a $78.8 million contract was signed with SA Nabi and Sons for the civil works component of the project. Shortly after, in April, 2018, a $33.9 million contract was signed with Zico Industrial Engineering for the fabrication of the warehouse’s steel frame.
While the project was initially set to run for seven months, Astwood pointed out that due to obstacles, such as the inclement weather resulting in flooding at the site, removal of electrical wires and telephone lines as well as the inability to source certain materials and fittings in time, the completion date was pushed back. The facility was completed on January 7th, this year.
The warehouse is 12,600 square ft in size and carries a stacking height of up to 20 feet, with a storage capacity of 2,500 tonnes of bulk cargo. In addition to an open storage layout, Astwood said it comes with two access ramps for efficient receipt and delivery, two automatic roll up shutter doors and “superior” internal lighting. The company also plans to install external lighting as well as CCTV cameras to improve the facility’s security.
“So this major investment, with an approved cost of $125.942 million, goes on record as one of the most costly single capital investment projects of the GNSC… the project signifies our commitment to the development of our infrastructure to better satisfy the needs of our customers and principals, and position ourselves as the perfect logistical partner for business and investment in the maritime and now emerging oil and gas sector,” he said, while adding that the company also plans two similar facilities as well as making strides towards having its wharf upgraded.