Security machines slow cargo clearance
Nearly seven months after they were officially commissioned into service, the US$23 million cargo x-ray machines – installed to bolster security at the island’s ports – are being blamed for a serious backlog of containers at the wharves.
Customs brokers and truckers say the build-up began from as far back as July and has caused them millions in lost revenue.
The Vacis machines are said to significantly lengthen the process for clearing cargo, resulting in long delays and the clogging of the island’s two commercial/container type wharves, Kingston Wharves and the APM Terminals (Jamaica) Limited – which has since 2002 been managing the Kingston Container Terminal.
The problem began with an influx of shipments from China and was further worsened by the passage of Hurricane Ivan last month, which halted operations at the ports.
Yesterday, the Customs Brokers Association of Jamaica (CBAJ) and the Port Trailers Haulage Association (PTHA) made a joint call for the port companies to correct the problems, saying that not only are the x-ray machines at fault but the companies also lack critical equipment and personnel to deliver the containers on time.
“Prior to the existing situation, truckers were able to pull up to five containers per day, but currently each trucker is only able to pull one container per day as turnaround time is now as long as six hours,” said Andrew Henry, president of the PTHA.
“We are losing thousands (of dollars) each day,” Henry told the Observer. “…at times we have lost up to 40 per cent of our revenue which significantly ties up our cash flow.”
He is also concerned that the upcoming Christmas season may worsen the problem.
Meanwhile, the CBAJ expressed concerns over the increase in demurrage, deposit and storage fees, reiterating that they have no alternative but “to pass these additional costs to consumers.”
“We still have to remind the public that the longer a container stays on the wharf, the more fees it attracts,” Hendricks Porter, chairman of the CBAJ, told the Observer.
Yesterday, the wharf operators confirmed that they have been experiencing problems but said they have put in place measures to correct them.
“Gates formerly closed are now open are we have extended our opening hours from 4 to 6 pm,” said Kingston Wharves business development manager, Angella Jackson. “We have done this to facilitate the delivery of their cargo.”
APM’s operations manager, Henry Lee, said his company was looking at long and short-term measures to fix the problems. APM has extended opening time by two hours, and will next week implement an appointment system for the pick-up of cargo.
“With that system the trucker will get an appointment over night to pick up specific container so when he comes the following day, that container will be placed in a specific area instead of him having to wait for it,”said Lee.
Long-term plans, he said, include using up unused yard space to store empty containers and opening up another out-gate within the next six months.
Yesterday Lee said the pile-up of empties is a result of shipping companies hurrying in and out in order to get back on schedule. The storage of empties, he said, begins attracting storage fees after seven days on the wharf.
More than 70,000 containers pass through that port each year, which tote some 17 million tonnes of cargo.
The x-ray machines were installed earlier this year in response to increased global standards for port security in the wake of the terrorist attacks on the United States on September 11, 2001.
The machines are part of a broader US$80 million security initiative to detect nuclear, chemical and biological weapons.