Tag: Ships

Moving Forward with Transportation Solutions

Posted on May 19, 2019 in Industries, Strategy

Go Lean Commentary

Its been 150 years exactly …
… we cannot just let that milestone for the Union Pacific Railroad go by without some acknowledgement … and reflection.  This history is more than just the story of a train, or a company; its an economic solution, one that was the inspiration for study and modeling, while the writers were in Omaha, Nebraska composing the 2013 book Go Lean…Caribbean. See this excerpt:

The Bottom Line on the Union Pacific Railroad
The Union Pacific Railroad, headquartered in Omaha, Nebraska, is the largest railroad network in the US. It has more than 44,000 employees, more than 8,000 locomotives, and runs on 31,900 route-miles in 23 states west of Chicago and New Orleans. The original company, prior to later uniting with the Central Pacific Railroad, was incorporated on July 1, 1862 under an act of Congress entitled Pacific Railroad Act of 1862. The act was approved by President Abraham Lincoln and it provided for the construction of railroads from the Missouri River to the Pacific as a war measure for the preservation of the Union. It was constructed westward from Council Bluffs, Iowa (across the Missouri from Omaha) to meet the Central Pacific line, which was constructed eastwardly from San Francisco Bay. The two lines were joined together at Promontory Summit, Utah, fifty three miles west of Ogden on May 10, 1869, hence creating the first transcontinental railroad in North America. – Book Go Lean…Caribbean Page 205.

The Union Pacific Railroad and the City of Omaha was featured in the Go Lean book as a model for the transportation solutions that would allow the Caribbean region to better move people and goods around the member-states.

There was a lot of fanfare, celebration, pomp-and-pageantry this month for the 150th anniversary. See the news report in this company-produced VIDEO here and in the related article in the Appendix below:

VIDEO – Union Pacific’s Transcontinental Railroad Completion 150th Anniversary Celebration – https://youtu.be/ZOWoPuVSbY0

Union Pacific
Published on May 17, 2019 – Reflections of Union Pacific’s celebration May 9, 2019, marking the 150th anniversary of the transcontinental railroad’s completion.

Yes, there is the need for transportation solutions in the Caribbean. Our failings – unaffordable to bring stay-over tourists to our shores and excessive costs of imported goods – have imperiled our progress in so many ways. We have consistently reported this theme in previous Go Lean commentaries; see a sample list here:

https://goleancaribbean.com/blog/?p=16645 Bad Partners – Cruise Lines Interactions
https://goleancaribbean.com/blog/?p=14767 Caribbean less competitive due to increasing aviation taxes
https://goleancaribbean.com/blog/?p=14761 Flying the Caribbean Skies – New Regional Options
https://goleancaribbean.com/blog/?p=12959 The Defective Shipping Law ‘Jones Act’ needs to be scraped
https://goleancaribbean.com/blog/?p=12322 Ferries 101: Economics, Security and Governance
https://goleancaribbean.com/blog/?p=12146 Commerce of the Seas – Shipbuilding Model – We need Ferries
https://goleancaribbean.com/blog/?p=9179 Snowbirds Tourism – On the 1st day of Autumn, time to head South
https://goleancaribbean.com/blog/?p=6867 How to address high consumer prices: A Ferry Transport System

The book Go Lean … Caribbean, serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), to facilitate a connected and integrated Single Market. This reality would mandate that we connect all the communities; the same as blood vessels would connect all the organs of a single “body”. Other Single Markets around the world have efficient transportation solutions; think rails and highways in the US and in Western Europe. The book features this one advocacy (Page 205) for implementing Caribbean transportation solutions. This advocacy is entitled: “10 Ways to Improve Transportation“. These “10 Ways” include the following highlights, headlines and excerpts:

1 Lean-in for the Caribbean Single Market – Ratify treaty for the CU.
Embrace the advent of the Caribbean Single Market & Economy Initiative of the Caribbean Union Trade Federation (CU). This will allow for the unification of 42 million people into one market, creating the demand to better move people and goods among the region and import-export to/from other regions. The CU will allow for the emergence of capital markets to sell municipal bonds for Transportation Authorities to raise project funds, as was the case for the Union Pacific Railroad. Bonds are ideal as their long term nature is ideal for slow harvesting returns from transportation solutions.
2 Turnpike: Pneumatic Capsule Pipeline (PCP)

The “Union Atlantic” Turnpike, (modeled after the Union Pacific efforts in the US from 1862), is a big initiative of the CU to logistically connect all CU member-states for easier transport of goods and passengers. The Turnpike is virtual; made up of many physical transportation modes envisioned for the region: Pipeline, Ferry, Highways, and Railroad.

PCP refers to large pneumatic tubes that can handle containers and trailers through underwater, under-ground and above-ground pipelines powered by magnetic levitation systems (ILM). This is modeled, after the freight PCP project envisioned for New York City [187], and the English Channel Tunnel for passengers and cargo.

The CU will construct underwater tunnels for narrow straits in the region, like the 7 miles between Trinidad & Venezuela.
3 Turnpike: Ferries

For the most part, the CU member-states are islands thereby allowing for a viable means of transportation via sea navigation. By deploying ferries, the CU facilitates passenger travel for business and leisure, (see model [of Ferry operations in] Appendix IC on Page 280).
4 Turnpike: Land Highways
5 Turnpike: Railroads
6 Aviation Coordination, Promotion and Safety Regulations
The CU mandate is to facilitate the region’s economics through transportation solutions. Aviation plays a key role, and so there is the need for regional coordination and promotion of the region’s domestic and foreign air carriers. The CU will execute these functions along with Air Traffic Control and Safety regulations, thus mirroring both the FAA & National Transportation Safety Board (NTSB) in the US. The CU will be vested with subpoena and prosecutorial powers.
7 CNG Public Buses and Electric Street Cars with Handicap Access
8 Taxi Administration: Emission-free Inducements & Electronic Payments Systems (EPS)
9 Local Automaker(s)
10 Bicycle Friendly

According to the Go Lean book, the foregoing VIDEO, and the article in the Appendix below, the Union Pacific Railroad was more than just a railroad, it was a transportation and technology eco-system that transformed the American continent. This was a manifestation of the technology of the day, the best-of-the-best of the machinery and methods that defined the greatest industrial might in the history of modern man. The Go Lean book states (Page 57) this succinct reflection on transport technology:

Technological change is more than just [today’s] internet & communications (ICT); though this field is dynamically shifting the world. There are also industrial changes taking place, as in more efficient manufacturing methods, automation-robotics, and transportation options … in response to Climate Change. For example, the CU envisions the supply and demand for Fast Ferries in the region. The modern offerings allow for 40 – 50 (nautical) mph speeds on calm waters. There are many CU destinations that can be serviced within 2 – 3 hours using this mode. This effort will be championed by the CU Turnpike initiative.

The review of the history of the Union Pacific Railroad has done one more thing:

Provide a glimpse of a Caribbean version of a transformative transportation solution. (Consider the Canadian ferry example in the photo here).

Today, the Caribbean is 30 separate and distinct lands with 42 million people; we are 30 separate and distinct member-states; but instead, we need to be one community, a Single Market. Transportation can foster and furnish the needed unity in our neighborhood; this is how we can move forward in our quest to elevate the societal engines: economics, security and governance. This point was eloquently detailed in a previous blog-commentary:

The roadmap calls for the CU to navigate the changed landscape of the globalized air transport industry. There is the need for regional integration, administration, and promotion for Caribbean air travel among local and foreign carriers. The book posits that transportation and logistics empower the economic engines of a community. There must be air carrier solutions to service the transportation and tourism needs of the Caribbean islands. This point is fully appreciated by Caribbean tourism stakeholders; the book relates that the region’s Hotel and Tourism Association channel the vision of Robert Crandall, former Chairman of American Airlines, who remarked at a Caribbean Hotel and Tourism Investment Conference in May 2010 that the region is uniquely dependent on tourism:

    “Everyone involved in travel and tourism knows that our [airline] industry is immensely important to the world economy, generating and supporting – either directly or indirectly – about one in eleven jobs worldwide. Here in the Caribbean, it is even more important. On a number of islands, travel and tourism accounts for more than 50% of all employment, and on some islands for more than 75%. Overall, about 20% of Caribbean employment is travel and tourism dependent – something on the order of 2.5 million jobs.” – Book ‘Go Lean … Caribbean’ – Page 60.

Go Lean asserts that air travel options must be optimized to impact Caribbean society – thus the need for more regional coordination, regulation and promotion of the Caribbean’s aviation industry. New models are detailed in the book in which tourism can be enhanced with “air lifts” to facilitate Caribbean events, and “Air Bridges” to allow for targeting High Net Worth markets. This roadmap also introduces the Union Atlantic Turnpike to offer more transportation solutions (ferries, toll roads, railways, and pipelines) to better facilitate the efficient movement of people and cargo.

Yes, we can …

A more connected region is conceivable, believable and achievable. This is how we can make our homeland a better place to live, work and play. 🙂

About the Book
The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), for the elevation of Caribbean society – for all member-states. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines.
  • Improve Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the societal engines of Caribbean society.

Download the free e-Book of Go Lean … Caribbean – now!

Who We Are
The movement behind the Go Lean book – a non-partisan, apolitical, religiously-neutral Community Development Foundation chartered for the purpose of empowering and re-booting economic engines – stresses that reforming and transforming the Caribbean societal engines must be a regional pursuit. This was an early motivation for the roadmap, as pronounced in the opening Declaration of Interdependence (Pages 12 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

————

Appendix – Title: Golden Spike 150th Anniversary – 1869 – Omaha, NE

The communities of Council Bluffs, Iowa, and Omaha, Nebraska, would forever be changed by a single decision made by President Abraham Lincoln in 1863. That was the year the president named Council Bluffs as the eastern terminus for Union Pacific, altering that community and Omaha — and, in fact, every community — along the railroad’s western path.

Despite this presidential declaration, there were other forces at play. Union Pacific’s first vice president and general manager, Thomas C. “Doc” Durant, used his influence to make Omaha — and not Council Bluffs, Iowa — the actual starting point. Union Pacific marked the occasion with a groundbreaking ceremony at the Omaha settlement in Nebraska Territory Dec. 2, 1863. A lack of funding delayed the project’s beginning for a short while, but on July 10, 1865, the first rail was finally laid. In 1872, the two communities were united for the first time when a railroad bridge was completed across the Missouri River.

The railroad’s effect on both communities has been extraordinary. Council Bluffs grew from a small, isolated Missouri River town to Iowa’s fifth largest city. The same robust growth has taken place in Omaha. Settlers and immigrants poured into the area beginning more than a century ago, and today this vibrant city has a population of nearly 500,000. This growth was spurred in great part by the passage of the Homestead Act in 1862, and the transcontinental railroad’s completion in 1869. Omaha has been Union Pacific’s operational headquarters since the 1860s, and its 19-story headquarters in the downtown area employs nearly 4,000 employees. Omaha also is home to UP’s Harriman Dispatching Center, one of the country’s largest and most technologically advanced dispatching facilities.

Source: Retrieved May 18, 2019 from: https://www.up.com/goldenspike/omaha-promontory.html

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Industrial Reboot – Shipbuilding 101 – ENCORE

Posted on July 20, 2018 in Economics, Industries, Strategy

Rebooting the industrial landscape means understanding the macro-economic factors affecting a community and then applying changes to assuage negative developments and to exploit the positives.

Understanding the macro factors means embracing the Laws of Economics 101: Supply-and-Demand.

As related in a previous blog-commentary by the movement behind the book Go Lean…Caribbean:

The ‘Law of Supply-and-Demand’ is almost as natural as the ‘Law of Gravity’. Leave it alone and it will pre-determine what will happen in the marketplace. But just like Gravity could be defied – consider airplanes & rockets – so too the Law of Supply-and-Demand could be defied supplemented and exacerbated – consider Crony-Capitalism and protectionism – with the industrial prodding of shipbuilding.

The shipbuilding industry has become a favorite for government leaders to manipulate the supply and demand dynamics for – consider the Jones Act in the US – because this industry creates so many …

Jobs

The book Go Lean…Caribbean asserts that the business model of shipbuilding can harness a lot of jobs. This book presents a roadmap to elevate the economic engines in Caribbean society and projects that 15,000 new direct jobs can be created with strategic endeavors for the shipbuilding industry. (Even more indirect jobs – 3.75-to-1 multiplier rate – can be created).  This is how the industrial landscape of the Caribbean region can be rebooted, by doubling-down on the effort to foster a shipbuilding industry.

We need a new economic landscape in our region. The current one is in shambles! This is due to the primary driver in the region – Tourism – being under assault; more and more visitors shift from stay-overs to cruise arrivals. So this means less economic impact to the local markets. As a region, we must reboot our industrial landscape and add more job-creating options.

How?

This commentary has previously identified a number of different industries that can be rebooted under this Go Lean roadmap. See the list of previous submissions on Industrial Reboots here:

  1. Industrial Reboots – Ferries 101 – Published June 27, 2017
  2. Industrial Reboots – Prisons 101 – Published October 4, 2017
  3. Industrial Reboots – Pipeline 101 – Published October 5, 2017
  4. Industrial Reboots – Frozen Foods 101 – Published October 6, 2017
  5. Industrial Reboots – Call Centers 101 – Published July 2, 2018
  6. Industrial Reboots – Prefab Housing 101 – Published July 14, 2018
  7. Industrial Reboots – Trauma 101 – Published July 18, 2018
  8. Industrial Reboots – Auto-making 101 – Published July 19, 2018
  9. Industrial Reboots – Shipbuilding 101 – Published Today – July 20, 2018

This commentary considers the basics of the shipbuilding industry and how it can harness many jobs if we reboot our industrial landscape to foster the industry. There is no need for a new commentary; this subject had already been elaborated upon in that previous Go Lean commentary. That submission is hereby Encored here:

——————–

Go Lean Commentary – Commerce of the Seas – Shipbuilding Model of Ingalls

The ‘Law of Supply-and-Demand’ is almost as natural as the ‘Law of Gravity’; leave it alone and it will pre-determine what will happen … in the marketplace. But just like the ‘Law of Gravity’ can bend and be defied (think airplanes and rockets), so too the ‘Law of Supply-and-Demand’ can bend and be defied. A great example of defying ‘Supply-and-Demand’ is the Crony-Capitalism (subsidies and protectionist schemes) in the highly-protected Ship-Building industry. (See the Appendix below regarding OECD Ship-Building Industry monitoring efforts).

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 1

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 2

Look at the numbers in the 2 photos above. It is apparent that the US distorts the Supply-and-Demand factors for Ship-Building in its market; their protectionist laws prevent the international market from supplying domestic shipping needs. This is bad! Though there is the need for some government-aid, to protect jobs and defense options,  the US model of Crony-Capitalism is a blatant distortion – Source: https://youtu.be/GpwzoDGDGAQ.

Ship-Building can be a strategic industry! The book Go Lean…Caribbean asserts that 15,000 new direct jobs can be created with strategic endeavors for the Ship-Building industry in the region. (Even more indirect jobs applies – multiplier rate of 3-to-1).  The Go Lean book calls for the elevation of Caribbean economics, positing that governmental entities must stimulate and incubate this industry. The book surveyed the world looking for industrial opportunities that could be fully explored in the Caribbean region where the natural resources of the region could be considered; the region is known for sun, sand and sea.

Tourism is a natural assumption for utilizing these “sun, sand and sea“ resources, but with the recent inadequacies of this industry, there needs to be more diversity in our commercial offerings; ship-building – which needs the sea – was identified as an ideal supplement and alternative for regional commerce. This reference to “regional commerce” refers to the economic interest that the 30 member-states in the Caribbean have to consider to provide job and entrepreneurial opportunities for its people. So this Ship-Building focus prioritizes the “Commerce of the Seas” concept. This commentary is 3 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”, the Crony-Capitalism in laws and practices around the maritime eco-system in the United States … and other countries. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

There are many Lessons in Economic History for the Caribbean to glean by considering the actuality of this industry. Let’s consider the role model of just one American shipbuilding entity: Ingalls Shipbuilding Company in Pascagoula, Mississippi. See the reference source here, describing the business model for building ships to ‘Supply’ any open ‘Demand’ in the commercial market:

Title: Ingalls Shipbuilding 

Ingalls Shipbuilding is a shipyard located in Pascagoula, Mississippi, United States, originally established in 1938, and is now part of Huntington Ingalls Industries. It is a leading producer of ships for the United States Navy, and at 12,500 employees, the largest private employer in Mississippi.

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 3

Pascagoula River and Ingalls Shipyard

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 5

History

In 1938, Ingalls Shipbuilding Corporation was founded by Robert Ingersoll Ingalls, Sr. (1882–1951) of Birmingham, Alabama, on the East Bank of the PascagoulaRiver in Mississippi.[1] Ingalls was located where the Pascagoula River runs into the Gulf of Mexico. It started out building commercial ships including the USS George Clymer (APA-27), which took part in Liberty Fleet Day 27 September 1941. In the 1950s Ingalls started bidding on Navy work, winning a contract in 1957 to build 12 nuclear-powered attack submarines.

Litton Industries acquired Ingalls in 1961, and in 1968 expanded its facilities to the other side of the river. Ingalls reached a high point of employment in 1977, with 27,280 workers. In April 2001, Litton was acquired by the Northrop Grumman Corporation.[2]

On August 29, 2005, Ingalls facilities were damaged by Hurricane Katrina; most of the ships in dock and construction escaped serious harm. While shipbuilding was halted for a while due to the destruction of many buildings, most vehicles, and the large overhead cranes, the facility continues to operate today.

On March 31, 2011, Northrop Grumman spun off its shipbuilding sector (including Ingalls Shipbuilding) into a new corporation, Huntington Ingalls Industries.

In 2015, Ingalls Shipbuilding Company signed a contract with US Navy for new destroyers, littoral combat ships and new landing craft. USS John Finn (DDG-113) was one of the first destroyers was launched on March 28. Company also is building Ralph Johnson (DDG 114), Paul Ignatius (DDG 117) and Delbert D. Black (DDG 119).

On March 21, 2015, the new San Antonio LPD 17-class amphibious ship John P. Murtha (LPD 26) was ceremonially christened. The vessel having been launched on October 30 and scheduled to be delivered in 2016.

On March 27, 2015, the shipyard received construction contracts for their next destroyers. Ingalls Shipbuilding Company was awarded a $604.3 million contract modification to build the yet-to-be-named DDG 121.

On March 31, 2015, the shipyard also received another contract with a $500 million fixed price to build the eighth National Security Cutter (NSC) for the US Coast Guard. Most of them will be under construction until 2019. The cutters are the most advanced ships ever built for the Coast Guard. [3]

On June 30, 2016, Ingalls Shipbuilding signed a contract with US Navy to build the U.S. Navy’s next large-deck amphibious assault warship. The contract included planning, advanced engineering and procurement of long-lead material, is just over $272 million. If options are exercised, the cumulative value of the contract would be $3.1 billion.[4]
…
Ships built

Source: Retrieved 06-11-2017 from Wikipedia: https://en.wikipedia.org/wiki/Ingalls_Shipbuilding

———–

VIDEO – Ingalls Shipbuilding Promotional Video – https://youtu.be/EFl8Tl0ImJo

Published on Jan 10, 2017 – Ingalls Shipbuilding is located in Pascagoula, Mississippi on 800 acres of the most important real estate in America. With 11,000 employees, Ingalls is the largest manufacturing employer in Mississippi and a major contributor to the economic growth of both Mississippi and Alabama. Our 77-year legacy has continuously proven we have the talent, experience and facilities to simultaneously build more classes of ships than any other shipyard in America.

We are the builder-of-record for 35 Aegis DDG 51 class guided missile destroyers, LHA 6 class large deck amphibious ships, National Security Cutters for the U.S. Coast Guard and the sole builder of the Navy’s fleet of San Antonio (LPD 17) class amphibious assault ships. Ingalls Shipbuilding has what it takes to build the capital ships that keep America and our allies safe.

Additional VIDEO consideration: https://youtu.be/0pak_gKglqo – Ingalls shows ‘Shipyard of the Future’.

Considering that 90% of all trade transports by water, there is natural demand for shipbuilding. There is a lot of supply as well.

Ingalls Shipbuilding Company is a definite beneficiary of government-aided commerce in the US; most of their shipbuilding engagements are government contracts. They are a leading producer of ships for the US Navy or Coast Guard, and at 12,500 employees, the largest private employer in Mississippi. As related in the first commentary in this series, the Jones Act has protected maritime commerce and shipbuilding for American stakeholders like Ingalls.

It is ‘high tide’ for the Caribbean to engage some protectionism strategies. Considering that the Caribbean region is the #1 market for the Cruise Line industry, collective bargaining should be prioritized to direct some shipbuilding business to local entities in this industry. The book Go Lean… Caribbean posits that as a unified region – a Single Market – the power of collective bargaining is possible. The book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) with the charter to facilitate jobs in the region. We should explore the benefits of the shipbuilding (and ship-breaking) industry. This aligns with the CU charter; as defined by these 3 prime directives:

  • Optimization of economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic.
  • Improve Caribbean governance to support these engines.

Early in the Go Lean book, this responsibility to create jobs was identified as an important function for the CU with this pronouncement in the Declaration of Interdependence (Pages 14):

xxiv.  Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvi.  Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries tourism, fisheries and lotteries – impacting the region with more jobs.

Accordingly, the CU will facilitate the eco-system for Self-Governing Entities (SGE), an ideal concept for shipyards, with its exclusive federal regulation/promotion activities.

The Go Lean movement (book and blogs) also details the principle of job multipliers, how certain industries are better than others for generating multiple indirect jobs down the line for each direct job on a company’s payroll. In a previous blog-commentary, it was related that the shipbuilding industry has a job-multiplier rate of 3.0. So once the job-multiplier rate is applied to the 15,000 direct shipbuilding jobs, generating 45,000 indirect jobs, the full economic impact is 60,000. This is transforming!

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to reform and transform the Caribbean, starting first with how to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to transform the maritime commerce to benefit Caribbean society. Consider the Chapter excerpts and headlines from this sample on Page 209 related to Ship-Building:

10 Ways to Develop Ship-Building

1

 Lean-in for Caribbean Integration
The CU will allow for the unification of the region into one market, creating an economy of 30 member-states, 42 million people and 2010 GDP over $800 Billion. All of the member-states are either islands or coastal, therefore there are lots of coastline and harbors. Boats, yachts and ships are therefore plentiful in the region. Consistent with the CU’s mission for globalization, the region cannot just consume these vessels; we must create and build as well. There is a history of boat-building in the islands (slopes, schooners, clippers), but what had been missing to forge a formidable industry is the capital and the community “will”. The CU will now fill those gaps. The CU will tap the capital markets to secure long-term funding (stocks/bonds), prepare the labor force for advanced skill-sets, and negotiate treaties with “mature” EU states (i.e. Holland, Ireland) for master-apprentice labor-coaching. Boats, yachts and ships are considered durable goods, the opposite of planned obsolescence. …

2

 Cooperatives Movement – “Many hands make heavy job light”

3

 Ferry Operations – Demand & Supply
The CU envisions a fleet of ferries, to service the individual islands, in a scheme dubbed “Union Atlantic Turnpike”. The proliferation of scheduled ferries, synchronized with trains and trucks will depict a continuous logistic network. This constitutes the demand for ferries. The CU will henceforth award the contracts for building and maintaining the ferries to local industry players – this constitutes the supply. The CU will therefore foster a ship-building “incubator”.

4

 Spin-off Strategy – Low-risk Contracts
The CU vision is to deploy a “spin-off” strategy for ship-owning patrons. The CU region needs ships. Therefore, the CU will incentivize patrons to “go local” with their ship-building/maintenance needs. A domestic ship-building industry is a great source of skilled/high-wage jobs. So there are many ways to exploit the cost-benefit equation for a win-win.

5

 Cruise Ship Dry-Dock – Let’s Make-A-Deal
The Caribbean region is the Number One market for the Cruise Line industry. Big expenses for Cruise Lines are port charges and landing fees. The CU will offer rebates and incentives for the Cruise Lines to use local dry-docks for retro-fittings and refurbishing.

6

 Yacht Development – Catering to a Special Market

7

 Sailboats – For Every Man
The history of Caribbean boat building is rich with sailing crafts; cruise ships evolved from local Banana-Boats. The CU will channel that history, passion and ethos for the region to design/develop best-inbred sailboats, big and small.

8

 Boat Shows and Open Houses – Show and Tell

9

 Regattas – More than Just Winning a Race
The history of the region has highlighted ships, boats and boat building. There is the tradition of Regattas, used to showcase the islands boat building prowess. [199] The CU now intends to feature Regattas in the same manner that automakers feature auto racing (NASCAR, IndyCar, Formula-One), as a demonstration platform for their art and science.

10

 Maritime Emergencies – Professional Response
The CU will deploy the necessary equipment and training for the ship-building industry to respond to maritime emergencies in the region. Therefore a disabled cruise ship will have the rapid response of “support-barges”, tug boats, dredging equipment, portable generators. This effort will be marshaled by the CU Emergency Management Agency.

The CU will foster shipbuilding as an industrial supplement and alternative to tourism. We have the resources (waterscapes, ports and harbors), the skills and the passionate work-force. We only need the Commerce of the Seas. The Caribbean people are now ready for this industrial empowerment. But we need to be cautious as to which role model we emulate. The US does provide material support and subsidies to their shipbuilding industry, but their protection laws – i.e. the Jones Act – have nullifies the positive effects of a Free Market. While other countries build and launch hundreds of ships every year, the US model only produce 2. That’s a lot of missing jobs, and artificially induced high prices.

In the Caribbean, we must do better. Fortunately, we do not have the Crony-Capitalism of the Jones Act to deter us. We can follow other – better – models to progress our societal investments in this industry. This is the assertion of the Go Lean roadmap.

We hereby urge all Caribbean stakeholders – governments and citizens – to lean-in to this Go Lean roadmap to foster this industrial development, so that our region can be a better homeland and seas to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———–
Appendix – The OECD Council Working Party on Shipbuilding

(OECD = Organization of Economic Cooperation and Development)

The OECD Council Working Party on Shipbuilding (WP6) seeks to progressively establish normal competitive conditions in the industry. It encourages transparency through data collection and analysis, and seeks to expand policy dialogue with non-OECD economies that have significant shipbuilding industries. WP6 is the only international body that can influence and guide government policies by identifying and, where possible, eliminating factors that distort the shipbuilding market.

The Working Party is chaired by Ambassador Elin Østebø Johansen, Permanent Representative of Norway to the OECD. Participating OECD members are: Denmark, Finland, Germany, Italy, Japan, Korea, Netherlands, Norway, Poland, Portugal, Sweden and Turkey. Croatia and Romania are full participants in the Working Party, and the Russian Federation participates as an observer. The European Commission, representing the European Union, also participates in WP6 meetings.

What does the Working Party on Shipbuilding do?
The WP6 has placed a high priority on encouraging policy dialogues, and on establishing close working relationships with non-OECD economies. In particular, these economies were invited to participate on an equal footing with OECD members in the negotiations on a shipbuilding agreement that ran from 2002 until 2005, and Brazil, China, Croatia, the Philippines, Romania, the Russian Federation, Chinese Taipei and Ukraine participated in those negotiations. Although the negotiations were eventually halted, a close working relationship has continued with all of these economies.

The WP6 organizes regular workshops aimed at facilitating the exchange of information on policy and industry developments, and as well as the economies already mentioned, other participants have come from India, and Indonesia, amongst others.

The WP6 has also worked closely with industry groups representing shipbuilders, ship owners, ship operators and trade union interests, so that a wide range of perspectives can be taken into account by WP6 members during their formulation of policy responses to address issues and challenges faced by the global shipbuilding sector.

What is the relevance of the Working Party to non-OECD economies and industry?

While the world’s shipbuilding industry has been through a period of record production, it was severely affected by the 2008 global financial crisis, and recent years have seen very low levels of new orders received by virtually all shipyards. The global industry now faces a number of challenges, most notably global excess capacity, which will place the economic viability of the industry under pressure in some parts of the world.

Persistent worldwide overcapacity may encourage governments to provide support through subsidies and other measures, as well as spur other market distorting practices, which can create major structural problems even in the most efficient shipbuilding industries. But potential market distortions can be addressed through close co-operation among economies with significant shipbuilding sectors and the active involvement of industry.

———-

INVENTORY OF GOVERNMENT SUPPORT MEASURES

The Inventory of Government Subsidies and Other Support Measures is a regular exercise for the WP6. The main aim of this exercise is to provide transparency and continuity of data on support measures for the shipbuilding industry. As well as WP6 participants, the Inventory provides some information on the support measures in Partner economies.

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A Lesson in History – Whaling Expeditions

Posted on November 2, 2017 in Economics, Industries, Strategy

Go Lean Commentary

There are “high-risk, high-return” industries and then there are “low-risk, low-return” industries.

There is much for the Caribbean to learn about hedging and mitigating risks from the high-risk industries. The lessons learned should be considered for forging the best-practices for gleaning those high-returns. In this case, we have the opportunity to reach back in the annals of time and learn-apply lessons from the history of the commercial whaling industry – see History of Whaling in the Appendix.

The high-risks in these enterprises were the whales – intelligent mammals of the sea that defied and defended against predators. See this dramatized in the movie “In the Heart of The Sea“; the trailer is embedded in the Appendix VIDEO below. Yet still, the whaling industry was so effective that the “cash crop” (whales) were almost rendered extinct. In this day, however, whaling is considered inhumane. This is an appropriate judgement for this foul practice!

If only … we can learn the best-practices of risk management from this industry and apply it in other humane industries and endeavors to derive high-returns. This is the point of the article here from this “Fin-Tech” column in the world-renowned Economist Magazine:

Title: The First Venture Capitalists – Before there were tech startups, there was whaling

NEW BEDFORD – Few industries involve as much drama and risk as whaling did. The last voyage of the Essex, which inspired Herman Melville’s classic, “Moby Dick”, and is the subject of a new film, “In the Heart of The Sea”, gives a sense of the horrors involved. The ship left Nantucket in 1819 and sailed for over a year before being destroyed by a whale it was hunting. The 20 crew members survived the sinking, but found themselves adrift in the Pacific in three longboats, with little food and no water. Three opted to stay on a desert island, from which they were rescued three months later, on the verge of starvation. The others sailed on, hoping to reach South America but dying one by one. At first the survivors buried the dead at sea; then they resorted to eating the corpses of their crewmates. When they ran out of bodies, they drew lots to decide whom to shoot and eat. Only five of the 17 were eventually rescued. By then, they were so delirious that they did not understand what was happening.

The only reason that anyone could be induced to take part in such a dangerous business was the fabulous profit that could be made. Gideon Allen & Sons, a whaling syndicate based in New Bedford, Massachusetts, made returns of 60% a year during much of the 19th century by financing whaling voyages—perhaps the best performance of any firm in American history. It was the most successful of a very successful bunch. Overall returns in the whaling business in New Bedford between 1817 and 1892 averaged 14% a year—an impressive record by any standard.

New Bedford was not the only whaling port in America; nor was America the only whaling nation. Yet according to a study published in 1859, of the 900-odd active whaling ships around the world in 1850, 700 were American, and 70% of those came from New Bedford. The town’s whalers came to dominate the industry, and reap immense profits, thanks to a novel technology that remains relevant to this day. They did not invent a new type of ship, or a new means of tracking whales; instead, they developed a new business model that was extremely effective at marshalling capital and skilled workers despite the immense risks involved for both. Whaling all but disappeared as an industry after mineral oil supplanted whale oil as a fuel. But the business structures pioneered in New Bedford remain as relevant as they ever were. Without them, the tech booms of the 1990s and today would not have been possible.

Most historians trace the origins of the modern company back to outfits like the Dutch East India Company and its British equivalent. These were given national monopolies on trade in certain goods or with certain places. This legally buttressed status allowed them to fund themselves by selling shares to the public, helping to get stock markets off the ground. The managers of these multinational enterprises were professionals with only small ownership stakes. Lower-level employees generally had no shareholding at all.

By eliminating dependence on individual owners or managers, these entities became self-perpetuating. But their monopolies also embroiled them in politics and led inevitably to corruption. Both the British and Dutch versions ended up requiring government bail-outs—a habit giant firms have not yet kicked.

The whaling industry involved a radically different approach. It was one of the first to grapple with the difficulty of aligning incentives among owners, managers and employees, according to Tom Nicholas and Jonas Peter Akins of Harvard Business School. In this model, there was no state backing. Managers held big stakes in the business, giving them every reason to attend to the interests of the handful of outside investors. Their stakes were held through carefully constructed syndicates and rarely traded; everyone was, financially at least, on board for the entire voyage. Payment for the crew came from a cut of the profits, giving them a pressing interest in the success of the voyage as well. As a consequence, decision-making could be delegated down to the point where it really mattered, to the captain and crew in the throes of the hunt, when risk and return were palpable.

At the top of the New Bedford hierarchy was an agent or firm of agents like Gideon Allen, responsible for the purchase and outfitting of the ship, the hiring of the crew and the sale of the catch. To give them an incentive to cut the best deals possible, the agents put up a big share of the investment. Those with the best reputation received better terms from the other investors. Captains, who ran the show while the ship was at sea, often put up capital as well. A similar system of incentives is used in the riskier reaches of the investment-management business today, notes Mr Nicholas.

Investors received half to two-thirds of the profits. The rest was divided among the crew in what was known as the “lay” system. A captain might get a 12th lay (one-twelfth of the remaining profit). In Melville’s novel, Ishmael, who was new to the business, was originally offered a 777th lay but managed to haggle a 300th. Although that would probably have proved a paltry amount, it was a stake nonetheless, and set a benchmark for future pay. Ishmael’s friend Queequeg, a cannibal from the South Sea islands, got a 90th lay because he had experience with a harpoon. Demand for experienced crewmembers was so high that the Essex’s ill-fated captain, George Pollard, was immediately given a second command on the ship that rescued him (which sank as well).

Every participant wanted to bring in returns quickly, but there were no artificial deadlines—nothing resembling what is now called “quarterly capitalism”. When whales became rare in accessible places, the crews from New Bedford extended their search to every corner of every ocean, however many years that took.

Safety in numbers
To ensure that they were not ruined by a few disastrous voyages, the whaling firms invested in multiple expeditions at the same time, much as the venture capitalists of today “spray and pray”. A study published in 1997 concluded that, of the 787 boats launched from New Bedford during the 18th century, 272 sank or were destroyed. The firm that belonged to George Howland was not atypical: of its 15 ships, between four and nine were at sea at any given moment. One was sunk by a whale, three lost at sea, two burned by their crews, one destroyed by a Confederate gunboat during America’s civil war and five abandoned in Arctic ice. Yet Howland died a millionaire in 1852.

It helped that most of the whalers of New Bedford were strict Quakers, who prized frugality and shunned ostentation. This helped them not only husband their own capital, which was needed to finance voyages, but also to win over other investors. Hetty Howland Green, one of the richest agents, was said to have made her own shoes and to have owned only one dress.

It also helped that they were open-minded: they readily employed anyone who could contribute to their ventures. Perhaps the single most important technological innovation used by New Bedford’s whaling fleet was the “Temple Toggle”, a harpoon tip devised by Lewis Temple, a former slave from Virginia.

But the whalers’ main asset was their business model. In the 1830s, the legislatures of six American states approved charters for whaling corporations giving them the right to raise capital by selling shares to the public—much the same corporate structure as the Dutch and British East India Companies. None of the six survived the 1840s. “The diffuse ownership structure of the corporations, and the reduced stakes held by their managers, likely diminished the incentives for the managers to perform their role diligently,” concludes Eric Hilt of Wellesley College. Given the expense of buying, outfitting and launching a boat into the perilous ocean, the link between risk and reward needed, it seems, to be tighter.

The lay system could work to the crew’s disadvantage, however. In an effort to reduce claims on the crew’s share of the profits, ruthless captains were said to abandon men on the trip home. (Similar shedding of employees is not unheard of at contemporary tech startups before a big payout.) Other schemes existed to cheat crew members, such as forcing them to buy clothing at inflated prices or to pay usurious interest on advances on their pay. And open-mindedness went only so far: although black sailors were not discriminated against in terms of pay, they were treated less well in other respects, receiving less food and worse quarters.

Yet the New Bedford system was undeniably effective. It soon emptied the oceans of whales, even as other lucrative opportunities emerged for daredevils determined to strike it rich, such as the California gold rush. “The same industrial growth that initially supplied markets and profits for whaling activity ultimately yielded opportunities more attractive than whaling to local capital,” wrote David Moment, a student at Harvard Business School, in 1957. In short, with returns dwindling, the crews and the capitalists turned to other ventures. But the business practices they developed are used in high-risk, high-return industries to this day.

Source: The Economist Magazine – posted Dec 30, 2015; retrieved November 1, 2017 from: https://www.economist.com/news/finance-and-economics/21684805-there-were-tech-startups-there-was-whaling-fin-tech

A key lesson from the history in this foregoing article is to arrange expeditions – one time ventures:

… a “business model that was extremely effective at marshalling capital and skilled workers despite the immense risks involved for both. Whaling all but disappeared as an industry after mineral oil supplanted whale oil as a fuel. But the business structures pioneered in New Bedford remain as relevant as they ever were.”

The movement behind the book Go Lean … Caribbean asserts that the region can enjoy high-risk returns from the industry of Shipbuilding and Ship-breaking. These industries are among the best for fostering new labor intensive jobs. There is no, to little,  industrial developments for these industries in the Caribbean now. It is the proposition here for the Caribbean member-states to engage in some high-risk investments and to incubate a Shipbuilding and Ship-breaking industry.

Shipbuilding?!

A classic form of maritime commerce. Imagine each ship – to be built/assembled – as a one-time venture, an expedition.

Ship-breaking?!

Disassembling ships for scrap metal and recycling. This, too, is a form of maritime commerce.
Imagine each ship – to be dismantled “cleanly” – as a one-time venture, an expedition.

These truly reflect the Industrial Reboot that the Caribbean region needs.

Shipbuilding and Ship-breaking have been a familiar theme for this Go Lean movement. We have detailed the historicity and economic prospects of these industry in these previous blog-commentaries:

https://goleancaribbean.com/blog/?p=12148 Commerce of the Seas – Lessons on Ship-breaking from Alang (India)
https://goleancaribbean.com/blog/?p=12146 Commerce of the Seas – Shipbuilding Model of Ingalls
https://goleancaribbean.com/blog/?p=2003 Where the Jobs Are in Maritime Commerce? Consider Ship-breaking done right!

As related in these commentaries, “all Caribbean members are islands or coastal territories – they can all be candidates for shipbuilding and ship-breaking. There is a need to reform maritime commerce for the Caribbean region; we can get more economic activity from this sector; the Go Lean book projects 15,000 new direct jobs in the shipbuilding and/or ship-breaking activities. The possibility of these new jobs is hope-inspiring. At last we can arrest the societal abandonment where men and women leave the community looking for any kind of work.”

The book Go Lean…Caribbean – available to download for free – serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), for the elevation of Caribbean society – for all member-states. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs; this would include entrepreneurial ventures and Industrial Reboots. In addition to direct job creation, there is the factor of indirect job-multipliers, in this case a 3.75 multiplier rate.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines.
  • Improve Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

The book stresses that reforming and transforming the Caribbean societal engines must be a regional pursuit. This was an early motivation for the roadmap, as pronounced in the opening Declaration of Interdependence (Pages 12 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform maritime commerce to benefit Caribbean society.

Tourism – and the current economic landscape – is not enough!

There is the need to deploy some new business models to accomplish this goal; we need “all hands on deck”: governments, citizens (including skilled labor groups – unions – and individuals), and financial institutions (banks and capital markets). The foregoing article related that whaling expeditions were propelled by creative financing models:

… allowed them to fund themselves by selling shares to the public …

The Go Lean roadmap seeks to optimize capital markets so as to facilitate industrial and entrepreneurial ventures. Consider these excerpts from the book detailing this strategy:

  • 10 Ways to Impact Wall Street – Page 200
    # 4 – Adopt Advanced Products
    The regional securities markets will be encouraged to adopt advanced financial products like mutual funds, ETF, REITs, commodities futures and options. These products attract more people to avail themselves of investment opportunities.
  • 10 Ways to Develop Ship-Building – Page 209
    # 1 – Lean-in for the Caribbean Single Market & Economy (CSME) Initiative
    The CU will allow for the unification of the region into one market, creating an economy of 30 member-states, 42 million people and 2010 GDP over $800 Billion. All of the member-states are either islands or coastal, therefore there are lots of coastline and harbors. Boats, yachts and ships are therefore plentiful in the region. Consistent with the CU’s mission for globalization, the region cannot just consume these vessels; we must create and build as well. There is a history of boatbuilding in the islands (slopes, schooners, clippers), but what had been missing to forge a formidable industry is the capital and the community “will”. The CU will now fill those gaps. The CU will tap the capital markets to secure long-term funding (stocks/bonds), prepare the labor force for advanced skill-sets, and negotiate treaties with “mature” EU states (i.e. Holland, Ireland) for master-apprentice labor-coaching. …

This commentary is a Lesson from History and also a study in “community ethos”. The Go Lean book defines (Page 20) this as the “fundamental character or spirit of a culture; the underlying sentiment that informs the beliefs, customs, or practices of a group or society; dominant assumptions of a people or period”. There may be good and bad community ethos.

Lessons from History are important to apply in modern society. Can we repeat the good habits that up-build society? Can we avoid the bad habits that tear-down communities?

Yes, we can …

Hunting, killing and harvesting whales were inhumane and reflective of a bad community ethos that man can dominate nature for his own profit.

Expeditions, on the other hand, reflected a good community ethos; “marshalling capital and skilled workers despite the immense risks” where good examples for investing in the future, to positively impact society. We can and should foster this ethos; we should pursue industrial reboots and incubate entrepreneurial endeavors for-and-in our Caribbean communities.

We can do this … and make our homeland a better place to live, work and play. 🙂

Download the free e-Book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———-

Appendix: The History of Whaling

This article discusses the history of whaling from prehistoric times up to the commencement of the International Whaling Commission (IWC) moratorium on commercial whaling in 1986.

…

Modern whaling

At first slow whales were caught by men hurling harpoons from small open boats. Early harpoon guns were unsuccessful until Norwegian Svend Foyn invented a new, improved version in 1863 that used a harpoon with a flexible joint between the head and shaft. Norway invented many new techniques and disseminated them worldwide. Cannon-fired harpoons, strong cables, and steam winches were mounted on maneuverable, steam-powered catcher boats. They made possible the targeting of large and fast-swimming whale species that were taken to shore-based stations for processing. Breech-loading cannons were introduced in 1925; pistons were introduced in 1947 to reduce recoil. These highly efficient devices were too successful, for they reduced whale populations to the point where large-scale commercial whaling became unsustainable.

…

Source: Retrieved November 1, 2017 from: https://en.wikipedia.org/wiki/History_of_whaling

———–

Appendix VIDEO – In the Heart of the Sea – Final Trailer – https://youtu.be/K-H35Mpj4uk

Published on Nov 1, 2015 – Chris Hemsworth stars in Ron Howard’s IN THE HEART OF THE SEA, in theaters December 2015. http://intheheartoftheseamovie.com https://www.facebook.com/IntheHeartof…

—

Oscar winner Ron Howard (“A Beautiful Mind”) directs the action adventure “In the Heart of the Sea,” based on Nathaniel Philbrick’s best-selling book about the dramatic true journey of the Essex.

In the winter of 1820, the New England whaling ship Essex was assaulted by something no one could believe: a whale of mammoth size and will, and an almost human sense of vengeance.  The real-life maritime disaster would inspire Herman Melville’s Moby-Dick.  But that told only half the story.

“In the Heart of the Sea” reveals the encounter’s harrowing aftermath, as the ship’s surviving crew is pushed to their limits and forced to do the unthinkable to stay alive.

 

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Ferries 101: Economics, Security and Governance

Posted on June 27, 2017 in Economics, Government, Industries, Strategy

Go Lean Commentary

The absolute best way to get from Point A to Point B is a straight line. If those two points are separated by water then the best way is a causeway or a bridge.

That is the ideal. Then there is island life, where we have to accept the Less Than ideal. Many times the best way to get from Point A to Point B across a body of water is a boat, or more specifically a Ferry.

CU Blog - Ferries - Economics, Security and Governance - Photo 0Welcome to a discussion of “Ferries 101”. Also, welcome to British Colombia, Canada. They provide the Caribbean such good role models and lessons of how to facilitate modern life with the realities of coastal and island living.

May we pay more than the usual attention to this Canadian model and these lessons.

The book Go Lean…Caribbean – available to download for free – proposed a plan to better unite the 30 Caribbean member-states – all islands and coastal territories – that incorporated a full deployment of a network of ferries. This would be so transformative for the Caribbean region that we had to study a successful deployment of such a scheme. The best role model was the Pacific North American coast – the Salish Sea; this is the intricate network of coastal waterways that includes the southwestern portion of the Canadian province of British Columbia (Vancouver) and the northwestern portion of the U.S. state of Washington (Seattle). Its major bodies of water are the Strait of Georgia, the Strait of Juan de Fuca, and Puget Sound. This inland waterway features international borders, constant trade and travel to facilitate year-round tourism and commerce. (See VIDEO in the Appendix below).

Copying such a model is a Big Deal for the Caribbean – too big for any one member-state alone. The Go Lean book thusly serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), an inter-governmental entity for all 30 member-states. The purpose is to better facilitate the societal engines (economics, security & governance) of the region that would lead to the elevation of Caribbean society – for all member-states. The book states this vision emphatically with this quotation:

The CU envisions a similar – [to North America’s Salish Sea] – water-based highway system of ferries and docks to facilitate passenger, cargo and vehicle travel connecting the islands of the Caribbean region to the mainland ports. This ferry system will be a component of the Union Atlantic Turnpike. – Page 280.
CU Blog - Ferries - Economics, Security and Governance - Photo 1a

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CU Blog - Ferries - Economics, Security and Governance - Photo 1d

CU Blog - Ferries - Economics, Security and Governance - Photo 1c 

This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the homeland; and the seas.
  • Improve Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

The book stresses that reforming and transforming the Caribbean societal engines must be a regional pursuit. This was an early motivation for the roadmap, as pronounced in the opening Declaration of Interdependence (Pages 12 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the societal engines of Caribbean society. The deployment of ferries is integral to the Go Lean roadmap for a “Union Atlantic Turnpike” – this is defined in the book as …

“a big initiative of the CU to logistically connect all CU member-states for easier transport of goods and passengers. The Turnpike is virtual … made up of many physical transportation modes envisioned for the region: Pipeline, Ferries, Highways, and Railroad”. – Page 205

Here is a sample of references to the ferry eco-system through-out the Go Lean book:

Community Ethos – Group Purchase organizations (GPO) – Big Ferry purchases Page 24
Strategy – Competitive Analysis – Buy foreign or buy local – Ferries could neutralize transportation challenges and high costs Page 51
Strategy – Stakeholders – Visitors – Snowbirds can bring RV’s on ferries Page 55
Strategy – Agents of Change – Technology – Industrial efficiencies for transportation options like “Fast Ferry” Page 57
Tactical – Separation of Powers – Department of Transportation – Turnpike Operations: Integrated Ferries Page 84
Tactical – Separation of Powers – Department of Transportation – Marine Administration to include Ferry Operations Page 84
Implementation – Ways to Develop a Pipeline Industry – “Pneumatic Capsule Pipeline” as an advanced ferry system for cargo Page 107
Implementation – Ways to Re-boot [Sample City] Freeport – Shipbuilding options to build/maintain ferries Page 112
Planning – 10 Big Ideas for the Caribbean – Ferries create Virtual “Turnpike” Operations Page 127
Planning – Ways to Improve Interstate Commerce – Ferries operate as transportation arteries Page 129
Planning – Ways to Improve Interstate Commerce – State License Plates Online Registration Access as Ferries allows cars to “island hop” Page 129
Planning – Lessons from New York City – Many transport options including ferries Page 137
Planning – Lessons from the American West – Railroads and Highways opened the West for better commerce, the same as ferries will do for the CU. Page 142
Planning – Lessons from Canada’s History – well-developed trade networks made for Advanced Economy. Page 146
Advocacy – Ways to Create Jobs – New Jobs for Infrastructural Build-out (Ferry docks) Page 152
Advocacy – Ways to Improve Housing – Pre-fab Industry/Jobs depend on Ferry deployment for logistics Page 161
Advocacy – Ways to Impact Public Works – Union Atlantic Turnpike requires Ferry Piers Page 175
Advocacy – Ways to Improve Homeland Security – Naval Authority: to ensure and protect the waterscapes and vessels of the region to mitigate against “bad actions and bad actors”. Page 180
Advocacy – Ways to Enhance Tourism – New Winter Season Product: Snowbirds can transport RV’s with Ferries Page 190
Advocacy – Ways to Enhance Tourism – Dynamic Sea-lifts: Consider Fast Ferries boats and Spring Break traffic Page 190
Advocacy – Ways to Impact Events – Sea lifts for Passengers and Freight Page 191
Advocacy – Ways to Promote Fairgrounds – Ferries can transport “real” fairs Page 192
Advocacy – Ways to Impact Extractions – Ferries Schedule for Transport to Offshore Rigs Page 195
Advocacy – Ways to Foster e-Commerce – Logistics & Delivery options improve Page 198
Advocacy – Ways to Improve Transportation – Islands and Coastal areas demand more seafaring options i.e. ferries Page 205
Advocacy – Ways to Develop Ship-Building – Ferry Operations – Fleet Demand & Supply Page 209
Advocacy – Ways to Impact Rural Living – Ferries can optimize rural transportation options Page 235
Advocacy – Ways to Impact US Territories – Puerto Rico could be Transportation Hub Page 244
Appendix – New Transportation Jobs: Building/maintaining/administering toll roads, electric lines, and ferries: 15,000 Page 257
Appendix – Model of Alaska Marine Highway – Facilitated by ferries Page 280
Appendix – Model of Eurotunnel – The Ferry Link Page 281

This Go Lean book projects the roll-out of this Union Atlantic Turnpike as Day One / Step One of the Go Lean/CU roadmap. Over the 5-year implementation more and more of the features of the Turnpike will be deployed and their effect on the region will be undeniable: they will help to make the Caribbean a better place to live, work and play.

This Go Lean roadmap seeks to foster best-practices in the administration of a “ferry eco-system”. We will have a lot of coordinate – “many balls in the air”: shipbuilding, border protection, customs, events facilitation, trade and tourism promotion. These topics are just a sample of subjects previously addressed in many Go Lean commentaries; see a relevant list here:

https://goleancaribbean.com/blog/?p=12304 Caribbean Festival of the Arts – Transport Options for Events
https://goleancaribbean.com/blog/?p=12146 Commerce of the Seas – Shipbuilding Model of Ingalls
https://goleancaribbean.com/blog/?p=12144 Commerce of the Seas – Book Review: ‘Sea Power’
https://goleancaribbean.com/blog/?p=12126 Commerce of the Seas – Stupidity of the Jones Act
https://goleancaribbean.com/blog/?p=9179 Snowbirds Tourism – First Day of Autumn – Time to Head South
https://goleancaribbean.com/blog/?p=9070 Securing the Homeland – From the Seas
https://goleancaribbean.com/blog/?p=6867 How to address high consumer prices: Welcoming ferries
https://goleancaribbean.com/blog/?p=3713 Lesson from Canada: NEXUS – Facilitating Detroit-Windsor Commerce
https://goleancaribbean.com/blog/?p=673 Future Tech – Autonomous cargo vessels without a crew

The subject of ferries could be strategic and tactical for the Caribbean. They can create new lines of business for our region and help to optimize existing economic activities. Traditionally, building roads and building bridges have always been good for society and good for a local economy. Building ferries should be even easier than building a road or building a bridge.

While national-building is heavy-lifting, the administration of ferries need not be. We have so many good examples and role models to consider. For example, this weekend (June 30 / July 1, 2007) is a Big Deal in North America; Canada is celebrating Canada Day on July 1 and the US is celebrating its 4th of July Holiday. We see an example of the best-practices of governance in the news article in the Appendix below. The experience shows how good governance works; due to mechanical problems the ferry operations in this one British Colombian island had to be suspended and a recovery plan executed: free reservations. That is sure to go a long way in forging goodwill among Western Canadian “ferry” stakeholders. This provides a good example for our Caribbean planners, who are observing-and-reporting on Canadian efficiencies. See photos here and the VIDEO in the Appendix below:

CU Blog - Ferries - Economics, Security and Governance - Photo 4

CU Blog - Ferries - Economics, Security and Governance - Photo 3

CU Blog - Ferries - Economics, Security and Governance - Photo 2

Yes, Ferries 101 could exacerbate nation-building 101. These activities can have a positive impact on a nation’s economy, security and governance. The industry of ferries is just one of the basic functionalities that must be embraced for an Industrial Reboot; in fact, this can be catalogued as an Industrial Reboot 101. This commentary is 1 of 4 in an occasional series considering Industrial Reboots. The full series is as follows:

  1. Industrial Reboot – Ferries 101
  2. Industrial Reboot – Prisons 101
  3. Industrial Reboot – Pipeline 101
  4. Industrial Reboot – Frozen Foods 101

Yes, we can … reboot our industrial landscape, for our waterways. Past generations of Caribbean people lived off the sea; it is now past-time to do that again. This plan – the roadmap to deploy a regional network of ferries – is conceivable, believable and achievable. We urge all Caribbean stakeholders to lean-in to this roadmap for economic empowerment. We can make the Caribbean homeland – with better interconnectivity between the islands and the “mainlands” – better places to live, work and play. 🙂

Download the free e-Book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

————

Appendix – News Article: Free B.C. Ferries reservations to help Mayne Island travellers
By: Louise Dickson

CU Blog - Ferries - Economics, Security and Governance - Photo 1bB.C. Ferries is offering free reservations on the Tsawwassen-Swartz Bay route for people travelling to Mayne Island in the next few days after hundreds of weekend travellers were caught in a massive traffic jam as they tried to leave the island on Sunday.

All sailings of Queen of Nanaimo between the Lower Mainland and the Gulf Islands were cancelled on Friday due to propeller problems. The Queen of Nanaimo, which has room for 160 cars and 900 passengers, is still out of service and won’t be operating until at least Thursday.

The smaller Salish Eagle, which holds 140 cars and 600 passengers, is running between Tsawwassen and Vancouver Island. B.C. Ferries is adding 12 sailing for the smaller ferry. The sailings will be on Tuesday, Wednesday and Thursday.

B.C. Ferries is working on getting Queen of Nanaimo back into service on Friday, in time for the long weekend, said corporation spokesman Darin Guenette.

If Queen of Nanaimo does not return to service, B.C. Ferries will put another ship on the route, if possible, he said.

The corporation is encouraging Lower Mainland customers to travel through Swartz Bay to the southern Gulf Islands. People interested in travelling through Swartz Bay to the southern Gulf Islands can contact the customer care centre at 1-888-223-3779.

Source: The Times-Colonist – Western Canada’s Oldest Daily Newspaper – Posted & Retrieved June 26, 2017 from: http://www.timescolonist.com/news/local/free-b-c-ferries-reservations-to-help-mayne-island-travellers-1.20780665

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Appendix VIDEO – Passage ferry QUEEN OF NANAIMO, Tsawwassen – Sturdies Bay (BC Ferries) – https://youtu.be/4c0U6qq2238

Published on Jul 6, 2016 – BC Ferries (06/2016)

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Commerce of the Seas – Lessons from Alang (India)

Posted on June 13, 2017 in Economics, Government, Industries, Tactical

Go Lean Commentary

Despite our beautiful vistas in the Caribbean – with our sun, sand and sea – not everywhere is paradisiac. Some locations are just plain ordinary, or even Less-Than. Tourism is the region’s Number 1 economic activity, but there are certain areas where tourists should not venture. This is true for agricultural areas and certain industrial zones.

The movement behind the book Go Lean…Caribbean wants to add another type of “not for tourists” industrial zone to the Caribbean landscape: Ship-breaking Yards.

Just that combination of words – “Ship” + “Breaking” – connotes some negative images. The lessons we learned from the Indian port city of Alang is that Ship-breaking is dirty; see the encyclopedic reference here:

Reference Title: Alang,  Indian State of Gujarat. 

CU Blog - Commerce of the Seas - Lessons from Alang - Photo 5Alang is a census town in Bhavnagar district in the Indian state of Gujarat. In the past three decades, its beaches have become a major worldwide centre for ship breaking. The longest ship ever built, Seawise Giant, was sailed to and beached here for demolition in December 2009. [1]

Marine salvage industry
The shipyards at Alang recycle approximately half of all ships salvaged around the world.[2] It is considered the world’s largest graveyard of ships.[3] The yards are located on the Gulf of Khambat, 50 km (31 mi) southeast of Bhavnagar. Large supertankers, car ferries, container ships, and a dwindling number of ocean liners are beached during high tide, and as the tide recedes, hundreds of manual laborers move onto the beach to dismantle each ship, salvaging what they can and reducing the rest to scrap.

The salvage yards at Alang have generated controversy about working conditions, workers’ living conditions, and the impact on the environment. One major problem is that despite many serious work-related injuries, the nearest full service hospital is 50 km (31 mi) away in Bhavnagar.

Alang - Photo 1

Alang - Photo 2

Alang - Photo 4

Future
Japan and the Gujarat government have joined hands to upgrade the existing Alang shipyard. The two parties have signed a Memorandum of Understanding, which focuses on technology transfer and financial assistance from Japan to assist in the upgrading of operations at Alang to meet international standards. This is a part of the Delhi Mumbai Industrial Corridor, a larger partnership between the Japanese and Gujarat government. Under this plan, Japan will address the environmental implications of ship breaking in Alang, and will develop a .marketing strategy. The project is to be carried out as a public-private partnership. The project’s aim is to make this shipyard the largest International Maritime Organisation-compliant ship recycling yard in the world.

Source: Retrieved June 8, 2017 from: https://en.wikipedia.org/wiki/Alang

The dirty nature of these industrial endeavors, as depicted in Alang, provides a negative lesson that we want to learn from to avoid all perilous consequences of doing this business in a “wrong” manner.

Another lesson we learn from Alang is that Ship-breaking work (jobs) is consistent and steady. There are many ships that have lived out their usefulness and now need to be dismantled for scrap; the more labor available, the more ships to break. This is such a positive lesson for us to learn right now, as the Caribbean region is badly in need of jobs. The economic engine involves salvaging the scrap metal (and other materials) for recycling.

The challenge is to embrace the commerce of Ship-breaking for the positives, while avoiding the negatives.

Challenge accepted! (The foregoing relates the welcoming support from Japan for clean ship-breaking).

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This would be the governmental entity for a regional Single Market that covers the land territories of the 30 member-states, and their aligning seas; (including the 1,063,000 square miles of the Caribbean Sea). The Go Lean/CU roadmap features this prime directive, as defined by these 3 statements:

  • Optimization of the economic engines to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect public safety and ensure the economic engines of the region, including the seas.
  • Improvement of Caribbean governance to support these engines in local governments and in Self-Governing Entities, including a separation-of-powers between the member-states and CU federal agencies.

This commentary posits that there are opportunities for the Caribbean to better explore the “Commerce of the Seas”, to deploy International Maritime Organisation-compliant shipyards. There are so many lessons that we can learn from the Economic History of other communities’ exploitation of the high seas. This commentary is 4 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

The reference to “Commerce” refers to the economic interest of the 30 member-states in the Caribbean region. There is the need for more commercial opportunities that would impact the community with job and entrepreneurial empowerments. Ship-breaking could be providential!

Ship-breaking can provide high tech, mid tech and low tech jobs; especially if the salvage operation is executed in a technocratic manner. The Art & Science of technocratic ship-breaking versus dirty-breaking (i.e. Alang) was previously detailed in a blog-commentary on August 14, 2014. See some highlights from that blog in the excerpt here:

… ship-breaking activities in Third World countries, like Bangladesh, pose harm to the environment, workers and remaining systems of commerce. But when executed correctly, as in Brownsville-Texas, ship-breaking can be all positive. There are benefits in applying the appropriate best practices in handling hazardous materials. The tons of toxic waste (asbestos) can be properly managed and disposed of, with the proper eco-system surrounding the industry. The CU will facilitate the eco-system, especially with the Self-Governing Entities (SGE) concept for shipyards. This is covered in the Go Lean book under the auspices of “turn-around” industries, a federally regulated/promoted activity.

So there is a way to perform ship-breaking – one expression of maritime commerce – in a lean, clean manner while guaranteeing safety for the workers and profit for the investors.

This is the win-win … of the Go Lean roadmap.

The Go Lean book/roadmap was published in November 2013 with a vision for a new industrialization for the region. The quest is for the region to cooperate, collaborate and convene so as to accomplish more as a unified Single Market than may be possible alone. Not one of the Caribbean member-states – all Third World – can do ship-breaking right. It would quickly denigrate to the Alang and Bangladesh models. But together, leveraging the interdependence – so much more can be accomplished. This was the vision of the opening Declaration of Interdependence in the book. Here, the need for regional coordination and integration was pronounced as the basis of reforming and transforming Caribbean society.

See a sample of relevant stanzas from the Declaration here (Page 11 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries like … fisheries … – impacting the region with more jobs.

Reforming and transforming the Caribbean is the quest. The Go Lean book explains “how”, providing 370-pages of turn-by-turn instructions on “how” to adopt new community ethos for economic regionalism, and “how” to execute the right strategies, tactics, and implementations to reboot, reform and transform the maritime commerce to benefit Caribbean society.

The issue of fostering industrial developments in the Art-and-Science of the salvage industry has been a frequent subject for previous blog-commentaries; consider this list of sample entries:

https://goleancaribbean.com/blog/?p=10140 Lessons Learned: Detroit demolishes thousands of structures
https://goleancaribbean.com/blog/?p=6760 A Lesson in ‘Garbage’
https://goleancaribbean.com/blog/?p=2953 Funding Caribbean Entrepreneurs – The ‘Crowdfunding’ Way
https://goleancaribbean.com/blog/?p=2857 Where the Jobs Are – Entrepreneurism in Junk

All Caribbean member-states are islands or coastal territories – they can all be candidates for maritime salvaging (ship-breaking) operations – even all at the same time. While there is a large footprint of “cheap” ship-breakers in Asia, not as many proliferate in the Western Hemisphere. It is a perfect time to explore these opportunities.

This is not tourism! Ship-breaking activities are not paradisiac nor inviting so they should be limited to shipyards, not beaches.

Alang - Photo 3Imagine: towing an old ship from the Americas to the Caribbean, rather than across the Atlantic and Indian Oceans; see the experience of salvaging the “Love Boat” in the Appendix VIDEO below.

This is commerce!

There is a need to transform maritime commerce for the Caribbean region; we can get more economic activity from this sector; the Go Lean book projects 15,000 new direct jobs in the shipbuilding and/or ship-breaking activities. The possibility of these new jobs is hope-inspiring. At last we can arrest the societal abandonment where men and women leave the community looking for any kind of work.

This is Commerce of the Seas; we saw how previous generations of Caribbean people lived off the sea; we can again, with these creative expressions of maritime commerce.

This plan is conceivable, believable and achievable. We urge all Caribbean stakeholders – governments, business owners and workers – to lean-in to this roadmap for economic empowerment. We can make the Caribbean homeland and seas better places to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

————–

Appendix VIDEO – The End of The Love Boat – https://youtu.be/lauAeMtzMYM

Published on Nov 5, 2016 – English Captions Available!!!
MS Pacific Princess is a voyage send possessed by Princess Cruises and worked by Princess Cruises and P&O Cruises Australia. She was inherent 1999 by the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France as MS R Three for Renaissance Cruises.

The vessel initially entered operation in 1999, with Renaissance Cruises. The ship was not claimed by the organization, ownership rather living with a gathering of French speculators, who rented the ship to the organization. In late 2001, the whole Renaissance armada was seized by lenders.

Pacific Princess in Yalta inlet.

In late 2002, Princess Cruises sanctioned the R Three, alongside sister transport R Four (now Ocean Princess). Both vessels entered operation before the end of 2002. The contract ended toward the end of 2004, at which time both vessels were acquired by Princess Cruises. Gabi Hollows renamed the ship Pacific Princess in Sydney on 8 December 2002.
This ship has been the subject of a state help choice by the European Commission: Decision 2006/219.
—
Princess Cruise Line Youtube channel: youtube.com/user/princesscruises
Cruise Ships Info Youtube channel: youtube.com/cruiseshipsinfo
Cruise Ships Info Facebook Page: facebook.com/cruiseshipsinfo
Cruise Ships Info Twitter Page: twitter.com/cruiseship_info
Cruise Ships Info Pinterest Page: pinterest.com/cruiseshipinfo

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Additional VIDEO – Jobs of Workers in Ship-breaking Industry –  https://www.youtube.com/watch?v=wOGjYfBltZc

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Commerce of the Seas – Shipbuilding Model of Ingalls

Posted on June 12, 2017 in Economics, Government, Industries

Go Lean Commentary

The ‘Law of Supply-and-Demand’ is almost as natural as the ‘Law of Gravity’; leave it alone and it will pre-determine what will happen … in the marketplace. But just like the ‘Law of Gravity’ can bend and be defied (think airplanes and rockets), so too the ‘Law of Supply-and-Demand’ can bend and be defied. A great example of defying ‘Supply-and-Demand’ is the Crony-Capitalism (subsidies and protectionist schemes) in the highly-protected Ship-Building industry. (See the Appendix below regarding OECD Ship-Building Industry monitoring efforts).

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 1

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 2

Look at the numbers in the 2 photos above. It is apparent that the US distorts the Supply-and-Demand factors for Ship-Building in its market; their protectionist laws prevent the international market from supplying domestic shipping needs. This is bad! Though there is the need for some government-aid, to protect jobs and defense options,  the US model of Crony-Capitalism is a blatant distortion – Source: https://youtu.be/GpwzoDGDGAQ.

Ship-Building can be a strategic industry! The book Go Lean…Caribbean asserts that 15,000 new direct jobs can be created with strategic endeavors for the Ship-Building industry in the region. (Even more indirect jobs applies – multiplier rate of 3-to-1).  The Go Lean book calls for the elevation of Caribbean economics, positing that governmental entities must stimulate and incubate this industry. The book surveyed the world looking for industrial opportunities that could be fully explored in the Caribbean region where the natural resources of the region could be considered; the region is known for sun, sand and sea.

Tourism is a natural assumption for utilizing these “sun, sand and sea“ resources, but with the recent inadequacies of this industry, there needs to be more diversity in our commercial offerings; ship-building – which needs the sea – was identified as an ideal supplement and alternative for regional commerce. This reference to “regional commerce” refers to the economic interest that the 30 member-states in the Caribbean have to consider to provide job and entrepreneurial opportunities for its people. So this Ship-Building focus prioritizes the “Commerce of the Seas” concept. This commentary is 3 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”, the Crony-Capitalism in laws and practices around the maritime eco-system in the United States … and other countries. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

There are many Lessons in Economic History for the Caribbean to glean by considering the actuality of this industry. Let’s consider the role model of just one American shipbuilding entity: Ingalls Shipbuilding Company in Pascagoula, Mississippi. See the reference source here, describing the business model for building ships to ‘Supply’ any open ‘Demand’ in the commercial market:

Title: Ingalls Shipbuilding 

Ingalls Shipbuilding is a shipyard located in Pascagoula, Mississippi, United States, originally established in 1938, and is now part of Huntington Ingalls Industries. It is a leading producer of ships for the United States Navy, and at 12,500 employees, the largest private employer in Mississippi.

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 3

Pascagoula River and Ingalls Shipyard

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 5

History

In 1938, Ingalls Shipbuilding Corporation was founded by Robert Ingersoll Ingalls, Sr. (1882–1951) of Birmingham, Alabama, on the East Bank of the PascagoulaRiver in Mississippi.[1] Ingalls was located where the Pascagoula River runs into the Gulf of Mexico. It started out building commercial ships including the USS George Clymer (APA-27), which took part in Liberty Fleet Day 27 September 1941. In the 1950s Ingalls started bidding on Navy work, winning a contract in 1957 to build 12 nuclear-powered attack submarines.

Litton Industries acquired Ingalls in 1961, and in 1968 expanded its facilities to the other side of the river. Ingalls reached a high point of employment in 1977, with 27,280 workers. In April 2001, Litton was acquired by the Northrop Grumman Corporation.[2]

On August 29, 2005, Ingalls facilities were damaged by Hurricane Katrina; most of the ships in dock and construction escaped serious harm. While shipbuilding was halted for a while due to the destruction of many buildings, most vehicles, and the large overhead cranes, the facility continues to operate today.

On March 31, 2011, Northrop Grumman spun off its shipbuilding sector (including Ingalls Shipbuilding) into a new corporation, Huntington Ingalls Industries.

In 2015, Ingalls Shipbuilding Company signed a contract with US Navy for new destroyers, littoral combat ships and new landing craft. USS John Finn (DDG-113) was one of the first destroyers was launched on March 28. Company also is building Ralph Johnson (DDG 114), Paul Ignatius (DDG 117) and Delbert D. Black (DDG 119).

On March 21, 2015, the new San Antonio LPD 17-class amphibious ship John P. Murtha (LPD 26) was ceremonially christened. The vessel having been launched on October 30 and scheduled to be delivered in 2016.

On March 27, 2015, the shipyard received construction contracts for their next destroyers. Ingalls Shipbuilding Company was awarded a $604.3 million contract modification to build the yet-to-be-named DDG 121.

On March 31, 2015, the shipyard also received another contract with a $500 million fixed price to build the eighth National Security Cutter (NSC) for the US Coast Guard. Most of them will be under construction until 2019. The cutters are the most advanced ships ever built for the Coast Guard. [3]

On June 30, 2016, Ingalls Shipbuilding signed a contract with US Navy to build the U.S. Navy’s next large-deck amphibious assault warship. The contract included planning, advanced engineering and procurement of long-lead material, is just over $272 million. If options are exercised, the cumulative value of the contract would be $3.1 billion.[4]
…
Ships built

Source: Retrieved 06-11-2017 from Wikipedia: https://en.wikipedia.org/wiki/Ingalls_Shipbuilding

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VIDEO – Ingalls Shipbuilding Promotional Video – https://youtu.be/EFl8Tl0ImJo

Published on Jan 10, 2017 – Ingalls Shipbuilding is located in Pascagoula, Mississippi on 800 acres of the most important real estate in America. With 11,000 employees, Ingalls is the largest manufacturing employer in Mississippi and a major contributor to the economic growth of both Mississippi and Alabama. Our 77-year legacy has continuously proven we have the talent, experience and facilities to simultaneously build more classes of ships than any other shipyard in America.

We are the builder-of-record for 35 Aegis DDG 51 class guided missile destroyers, LHA 6 class large deck amphibious ships, National Security Cutters for the U.S. Coast Guard and the sole builder of the Navy’s fleet of San Antonio (LPD 17) class amphibious assault ships. Ingalls Shipbuilding has what it takes to build the capital ships that keep America and our allies safe.

Additional VIDEO consideration: https://youtu.be/0pak_gKglqo – Ingalls shows ‘Shipyard of the Future’.

Considering that 90% of all trade transports by water, there is natural demand for shipbuilding. There is a lot of supply as well.

Ingalls Shipbuilding Company is a definite beneficiary of government-aided commerce in the US; most of their shipbuilding engagements are government contracts. They are a leading producer of ships for the US Navy or Coast Guard, and at 12,500 employees, the largest private employer in Mississippi. As related in the first commentary in this series, the Jones Act has protected maritime commerce and shipbuilding for American stakeholders like Ingalls.

It is ‘high tide’ for the Caribbean to engage some protectionism strategies. Considering that the Caribbean region is the #1 market for the Cruise Line industry, collective bargaining should be prioritized to direct some shipbuilding business to local entities in this industry. The book Go Lean… Caribbean posits that as a unified region – a Single Market – the power of collective bargaining is possible. The book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) with the charter to facilitate jobs in the region. We should explore the benefits of the shipbuilding (and ship-breaking) industry. This aligns with the CU charter; as defined by these 3 prime directives:

  • Optimization of economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to protect the resultant economic.
  • Improve Caribbean governance to support these engines.

Early in the Go Lean book, this responsibility to create jobs was identified as an important function for the CU with this pronouncement in the Declaration of Interdependence (Pages 14):

xxiv.  Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvi.  Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries tourism, fisheries and lotteries – impacting the region with more jobs.

Accordingly, the CU will facilitate the eco-system for Self-Governing Entities (SGE), an ideal concept for shipyards, with its exclusive federal regulation/promotion activities.

The Go Lean movement (book and blogs) also details the principle of job multipliers, how certain industries are better than others for generating multiple indirect jobs down the line for each direct job on a company’s payroll. In a previous blog-commentary, it was related that the shipbuilding industry has a job-multiplier rate of 3.0. So once the job-multiplier rate is applied to the 15,000 direct shipbuilding jobs, generating 45,000 indirect jobs, the full economic impact is 60,000. This is transforming!

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to reform and transform the Caribbean, starting first with how to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to transform the maritime commerce to benefit Caribbean society. Consider the Chapter excerpts and headlines from this sample on Page 209 related to Ship-Building:

10 Ways to Develop Ship-Building

1

 Lean-in for Caribbean Integration
The CU will allow for the unification of the region into one market, creating an economy of 30 member-states, 42 million people and 2010 GDP over $800 Billion. All of the member-states are either islands or coastal, therefore there are lots of coastline and harbors. Boats, yachts and ships are therefore plentiful in the region. Consistent with the CU’s mission for globalization, the region cannot just consume these vessels; we must create and build as well. There is a history of boat-building in the islands (slopes, schooners, clippers), but what had been missing to forge a formidable industry is the capital and the community “will”. The CU will now fill those gaps. The CU will tap the capital markets to secure long-term funding (stocks/bonds), prepare the labor force for advanced skill-sets, and negotiate treaties with “mature” EU states (i.e. Holland, Ireland) for master-apprentice labor-coaching. Boats, yachts and ships are considered durable goods, the opposite of planned obsolescence. …

2

 Cooperatives Movement – “Many hands make heavy job light”

3

 Ferry Operations – Demand & Supply
The CU envisions a fleet of ferries, to service the individual islands, in a scheme dubbed “Union Atlantic Turnpike”. The proliferation of scheduled ferries, synchronized with trains and trucks will depict a continuous logistic network. This constitutes the demand for ferries. The CU will henceforth award the contracts for building and maintaining the ferries to local industry players – this constitutes the supply. The CU will therefore foster a ship-building “incubator”.

4

 Spin-off Strategy – Low-risk Contracts
The CU vision is to deploy a “spin-off” strategy for ship-owning patrons. The CU region needs ships. Therefore, the CU will incentivize patrons to “go local” with their ship-building/maintenance needs. A domestic ship-building industry is a great source of skilled/high-wage jobs. So there are many ways to exploit the cost-benefit equation for a win-win.

5

 Cruise Ship Dry-Dock – Let’s Make-A-Deal
The Caribbean region is the Number One market for the Cruise Line industry. Big expenses for Cruise Lines are port charges and landing fees. The CU will offer rebates and incentives for the Cruise Lines to use local dry-docks for retro-fittings and refurbishing.

6

 Yacht Development – Catering to a Special Market

7

 Sailboats – For Every Man
The history of Caribbean boat building is rich with sailing crafts; cruise ships evolved from local Banana-Boats. The CU will channel that history, passion and ethos for the region to design/develop best-inbred sailboats, big and small.

8

 Boat Shows and Open Houses – Show and Tell

9

 Regattas – More than Just Winning a Race
The history of the region has highlighted ships, boats and boat building. There is the tradition of Regattas, used to showcase the islands boat building prowess. [199] The CU now intends to feature Regattas in the same manner that automakers feature auto racing (NASCAR, IndyCar, Formula-One), as a demonstration platform for their art and science.

10

 Maritime Emergencies – Professional Response
The CU will deploy the necessary equipment and training for the ship-building industry to respond to maritime emergencies in the region. Therefore a disabled cruise ship will have the rapid response of “support-barges”, tug boats, dredging equipment, portable generators. This effort will be marshaled by the CU Emergency Management Agency.

The CU will foster shipbuilding as an industrial supplement and alternative to tourism. We have the resources (waterscapes, ports and harbors), the skills and the passionate work-force. We only need the Commerce of the Seas. The Caribbean people are now ready for this industrial empowerment. But we need to be cautious as to which role model we emulate. The US does provide material support and subsidies to their shipbuilding industry, but their protection laws – i.e. the Jones Act – have nullifies the positive effects of a Free Market. While other countries build and launch hundreds of ships every year, the US model only produce 2. That’s a lot of missing jobs, and artificially induced high prices.

In the Caribbean, we must do better. Fortunately, we do not have the Crony-Capitalism of the Jones Act to deter us. We can follow other – better – models to progress our societal investments in this industry. This is the assertion of the Go Lean roadmap.

We hereby urge all Caribbean stakeholders – governments and citizens – to lean-in to this Go Lean roadmap to foster this industrial development, so that our region can be a better homeland and seas to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———–
Appendix – The OECD Council Working Party on Shipbuilding

(OECD = Organization of Economic Cooperation and Development)

The OECD Council Working Party on Shipbuilding (WP6) seeks to progressively establish normal competitive conditions in the industry. It encourages transparency through data collection and analysis, and seeks to expand policy dialogue with non-OECD economies that have significant shipbuilding industries. WP6 is the only international body that can influence and guide government policies by identifying and, where possible, eliminating factors that distort the shipbuilding market.

The Working Party is chaired by Ambassador Elin Østebø Johansen, Permanent Representative of Norway to the OECD. Participating OECD members are: Denmark, Finland, Germany, Italy, Japan, Korea, Netherlands, Norway, Poland, Portugal, Sweden and Turkey. Croatia and Romania are full participants in the Working Party, and the Russian Federation participates as an observer. The European Commission, representing the European Union, also participates in WP6 meetings.

What does the Working Party on Shipbuilding do?
The WP6 has placed a high priority on encouraging policy dialogues, and on establishing close working relationships with non-OECD economies. In particular, these economies were invited to participate on an equal footing with OECD members in the negotiations on a shipbuilding agreement that ran from 2002 until 2005, and Brazil, China, Croatia, the Philippines, Romania, the Russian Federation, Chinese Taipei and Ukraine participated in those negotiations. Although the negotiations were eventually halted, a close working relationship has continued with all of these economies.

The WP6 organizes regular workshops aimed at facilitating the exchange of information on policy and industry developments, and as well as the economies already mentioned, other participants have come from India, and Indonesia, amongst others.

The WP6 has also worked closely with industry groups representing shipbuilders, ship owners, ship operators and trade union interests, so that a wide range of perspectives can be taken into account by WP6 members during their formulation of policy responses to address issues and challenges faced by the global shipbuilding sector.

What is the relevance of the Working Party to non-OECD economies and industry?

While the world’s shipbuilding industry has been through a period of record production, it was severely affected by the 2008 global financial crisis, and recent years have seen very low levels of new orders received by virtually all shipyards. The global industry now faces a number of challenges, most notably global excess capacity, which will place the economic viability of the industry under pressure in some parts of the world.

Persistent worldwide overcapacity may encourage governments to provide support through subsidies and other measures, as well as spur other market distorting practices, which can create major structural problems even in the most efficient shipbuilding industries. But potential market distortions can be addressed through close co-operation among economies with significant shipbuilding sectors and the active involvement of industry.

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INVENTORY OF GOVERNMENT SUPPORT MEASURES

The Inventory of Government Subsidies and Other Support Measures is a regular exercise for the WP6. The main aim of this exercise is to provide transparency and continuity of data on support measures for the shipbuilding industry. As well as WP6 participants, the Inventory provides some information on the support measures in Partner economies.

 

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Commerce of the Seas – Book Review: ‘Sea Power’

Posted on June 9, 2017 in Economics, Government, Implementation

Go Lean Commentary 

70% of the earth is covered by water
70% of the human body is made up by water

CU Blog - Lessons from China - South China Seas - Exclusive Economic Zone - Photo 3It seems that water is pretty important in managing the affairs of people and their community.

The quest of the movement behind the book Go Lean… Caribbean is to confederate, collaborate and convene the 30 member-states of the Caribbean region into a Single Market; this would include the territorial homelands and aligning seas. How, where, when ‘Sea Power’ is managed becomes a major consideration in this quest. A lesson we have learned from Economic History is that a people who wield ‘Sea Power’ can control the economic prospects of its people.

We learn this lesson even more succinctly now, thanks to the new book by Admiral James Stavridis entitled: Sea Power: The History and Geopolitics of the World’s Oceans. See a summary-review of the book here and listen to an AUDIO-Podcast interview with the Author:

 Sea Power - Photo 1

Book Review for Book: Sea Power: The History and Geopolitics of the World’s Oceans By: Admiral James Stavridis

From one of the most admired admirals of his generation – and the only admiral to serve as Supreme Allied Commander at NATO – comes a remarkable voyage through all of the world’s most important bodies of water, providing the story of naval power as a driver of human history and a crucial element in our current geopolitical path. 

From the time of the Greeks and the Persians clashing in the Mediterranean, sea power has determined world power.  To an extent that is often underappreciated, it still does. No one understands this better than Admiral Jim Stavridis. In Sea Power, Admiral Stavridis takes us with him on a tour of the world’s oceans from the admiral’s chair, showing us how the geography of the oceans has shaped the destiny of nations, and how naval power has in a real sense made the world we live in today, and will shape the world we live in tomorrow.

Not least, Sea Power is marvelous naval history, giving us fresh insight into great naval engagements from the battles of Salamis and Lepanto through to Trafalgar, the Battle of the Atlantic, and submarine conflicts of the Cold War. It is also a keen-eyed reckoning with the likely sites of our next major naval conflicts, particularly the Arctic Ocean, Eastern Mediterranean, and the South China Sea. Finally, Sea Power steps back to take a holistic view of the plagues to our oceans that are best seen that way, from piracy to pollution.

When most of us look at a globe, we focus on the shape of the of the seven continents. Admiral Stavridis sees the shapes of the seven seas.  After reading Sea Power, you will too. Not since Alfred Thayer Mahan’s legendary The Influence of Sea Power upon History have we had such a powerful reckoning with this vital subject.

Sea Power makes a great Father’s Day gift!

Source: Amazon Online Bookstore-Portal; retrieved June 9, 2017 from: https://www.amazon.com/Sea-Power-History-Geopolitics-Worlds/dp/073522059X/

———–

Appendix AUDIO-Podcast – Stavridis’ Book ‘Sea Power’ Explains Why Oceans Matter In Global Politics – http://www.npr.org/2017/06/06/531701056/stavridis-book-sea-power-explains-why-oceans-matter-in-global-politics

Published June 6, 2017 – NPR’s Morning Edition’s Steve Inskeep talks to retired Admiral James Stavridis, former supreme allied commander for NATO, about his new book: Sea Power: The History and Geopolitics of the World’s Oceans.

Listen to an extended NPR Podcast here: http://www.npr.org/podcasts/510053/on-point-with-tom-ashbrook

The theme of this new book aligns with the book Go Lean…Caribbean in explaining the significance of ‘Sea Power’ in any plan to elevate the Caribbean region’s societal engines. This commentary is 2 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”, the good, bad and ugly (think Crony-Capitalism) strategies and practices around the maritime eco-system in the United States … and other countries. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

The previous commentary in this series relates how “Commerce” refers to the economic interest of the 30 member-states in the Caribbean region. Admiral Stavridis book has a heavy focus on naval military power; he posits that a strong Navy paves the way for and protects the continuation of maritime commerce. From the book Sea Power and the Go Lean book we see this consistent Lesson in Economic History:

Around the world, countries that have access to control of the “Sea” have a distinct advantage economically versus countries that are land-locked; i.e. England versus Austria.

CU Blog - America's Navy - 100 Percent - Model for Caribbean - Photo 4As stated previously, the United States have wielded its ‘Sea Power’ to promote profit for its maritime industrial stakeholders at the expense of the residents of off-shore territories, like Puerto Rico and the US Virgin Islands in the Caribbean.

There is therefore a need to reboot, reform and transform the Caribbean region’s stewardship of the Seas. This is the purpose of the book Go Lean … Caribbean, to help empower and elevate the societal engines of the 30 member-states of the Caribbean region and their waterscapes. The Go Lean book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This would be the inter-governmental entity for a regional Single Market that covers the land territories of the 30 member-states, and their aligning seas; (including the 1,063,000 square miles of the Caribbean Sea in an Exclusive Economic Zone). The Go Lean/CU roadmap features this prime directive, as defined by these 3 statements:

  • Optimization of the economic engines to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect public safety and ensure the economic engines of the region, including the seas.
  • Improvement of Caribbean governance to support these engines in local governments and in the Exclusive Economic Zone, including a separation-of-powers between the member-states and CU federal agencies.

This Go Lean roadmap envisioned a wide-ranging, fully-encompassing treaty for all Caribbean member-states to deputize a technocratic agency to better administer the affairs (economic, security and governance) of the waterscapes in the region. It was recognized that this quest was “out-of-scope” and too big for any one Caribbean member-state alone, but rather, acknowledging their regional interdependence, these stakeholders would be able to engage a new inter-governmental administration for better regional stewardship. This, regionalism, was the original intent of the Go Lean book, which commenced with a Declaration of Interdependence, pronouncing the need for regional coordination and integration so as to reform and transform Caribbean society. See a sample of relevant stanzas here (Page 11 – 12) as related to the Caribbean ‘Sea Power’:

v. Whereas the natural formation of our landmass and coastlines entail a large portion of waterscapes, the reality of management of our interior calls for extended oversight of the waterways between the islands. The internationally accepted 12-mile limits for national borders must be extended by International Tribunals to encompass the areas in between islands. The individual states must maintain their 12-mile borders while the sovereignty of this expanded area, the Exclusive Economic Zone, must be vested in the accedence of this Federation.

vi. Whereas the finite nature of the landmass of our lands limits the populations and markets of commerce, by extending the bonds of brotherhood to our geographic neighbors allows for extended opportunities and better execution of the kinetics of our economies through trade. This regional focus must foster and promote diverse economic stimuli.

x. Whereas we are surrounded and allied to nations of larger proportions in land mass, populations, and treasuries, elements in their societies may have ill-intent in their pursuits, at the expense of the safety and security of our citizens. We must therefore appoint “new guards” to ensure our public safety and threats against our society, both domestic and foreign. The Federation must employ the latest advances and best practices … to assuage continuous threats against public safety. …

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes, including piracy and other forms of terrorism, can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

The foregoing book, Sea Power, aligns with the Go Lean book references to strategies, tactics and implementations for the Exclusive Economic Zone (EEZ). The Go Lean book provides 370-pages of turn-by-turn directions on “how” this EEZ can impact and benefit Caribbean society. Consider the Chapter excerpts and headlines from this sample on Page 104:

The Bottom Line on the United Nations Convention on the Law of the Sea (UNCLOS)
The UNCLOS is the international agreement that resulted from the third United Nations Conference on the Law of the Sea which took place between 1973 and 1982. This Convention defines the rights and responsibilities of nations in their use of the world’s oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources. As of October 2012, 164 countries and the European Union have joined in the Convention. The convention introduced a number of provisions. The most significant issues covered were setting limits, navigation, archipelagic status and transit regimes, exclusive economic zones (EEZs), continental shelf jurisdiction, deep seabed mining, the exploitation regime, protection of the marine environment, scientific research, and settlement of disputes. EEZs extend from the edge of the territorial sea out to 200 nautical miles (230 miles) from the 12-mile baseline. Within this area, the coastal nation has sole exploitation rights over all natural resources, including the continental shelf. EEZs were introduced to halt the increasingly heated clashes over fishing rights, although oil was also becoming important. The success of an offshore oil platform in the Gulf of Mexico in 1947 was soon repeated elsewhere in the world, and by 1970 it was technically feasible to operate in waters 4000 meters deep. Foreign nations still have freedoms of navigation and over-flights for the EEZ, subject to the regulation of the coastal states. Foreign states may also lay submarine pipes and cables.

CU independent UNCLOS member-states include: Antigua, Jamaica, Suriname, Dominican Republic, Guyana, Barbados, Saint Vincent, Saint Kitts, Trinidad, Grenada, Saint Lucia, Cuba, Bahamas & Belize.

 10 Start-up Benefits from the EEZ

1

 Lean-in for Caribbean Integration
The CU treaty unifies the Caribbean region into one single market of 42 million people across 30 member-states, thereby empowering the economic engines in and on behalf of the region. Integral to CU roadmap, is the territory between the island states. The CU will petition the United Nations for rights under the UN Convention on the Law of the Sea for acquisition of an Exclusive Economic Zone (EEZ). This will facilitate both economic empowerment (including Fisheries management) and security assurances for the region. (This effort was started by the Association of Caribbean States).

2

 Funding by Selling Exploration Rights

3

 Off-shore Wind Turbines

4

 Pipelines

5

 Extractions – Economic & Security

6

 Security – Anti-Piracy
The CU has the mission to defend the homeland against enemies: foreign, domestic, and in the Exclusive Economic Zone of the Caribbean Seas. There is still a threat of piracy in modern times, and these “bad actors” hide behind jurisdictional confusions of one territorial waters after another. But the CU, with its regional oversight, can be more effective in bringing these ones to justice. Piracy is a form of terrorism, and cruise ships (smaller vessels catering to a High Net Worth – One Percent – market) and leisure crafts can be vulnerable to these threats.

7

 Security – Interdictions
There is the need to be on alert for seaborne drug smuggling activities, as these can have corrupting influences on the local community. This would be the direct responsibilities of the CU Naval Operations for the jurisdiction of the EEZ. Today the US Coast Guard conducts patrols in the Caribbean Seas with impunity. There is no plan in the CU roadmap to curtail any of this activity; instead the CU will better coordinate their routes and maneuvers with CU Naval Operations.

8

 Security – Search & Rescue

9

 Security Monitoring
The CU will embrace many cutting-edge technological options to “keep eyes” on the Caribbean Seas. This includes satellite (visual & GPS), drones (unmanned airborne vehicles & dirigibles or blimps. Boaters will be incentivized tocooperate and install location beacons.

10

 Security – Defense Pact (Naval Maneuvers)
The US, France, Netherlands, UK and some European trading partners have declared a “War Against Terrorism”; those battles will surely come to Caribbean shores. The CU therefore invites the Navies of allied nations to train, visit and conduct operations in our Caribbean waters, especially in the EEZ.

The issue of managing marine resources for commerce and security in the Caribbean has been a frequent subject for previous blog-commentaries; consider this list of sample entries:

https://goleancaribbean.com/blog/?p=11544 Forging Change in the Cruise Industry with Collective Bargaining
https://goleancaribbean.com/blog/?p=10566 Funding the Caribbean Security Pact
https://goleancaribbean.com/blog/?p=8819 Lessons from China – South China Seas: Exclusive Economic Zones
https://goleancaribbean.com/blog/?p=5210 Cruise Ship Commerce – Getting Ready for Change
https://goleancaribbean.com/blog/?p=3594 Better Fisheries Management for Queen Conch
https://goleancaribbean.com/blog/?p=1965 America’s Navy – 100 Percent – Model for Caribbean
https://goleancaribbean.com/blog/?p=673 Ghost ships – Autonomous cargo vessels without a crew
https://goleancaribbean.com/blog/?p=273 10 Things We Want from the US – # 4: Pax Americana

All Caribbean members are islands or coastal territories. The subject of ‘Sea Power’ and security of the waterscapes matters to us. Rather than 70 percent, we have to be concerned with 100 percent of the issues, challenges and opportunities.

There is a need to reform our maritime eco-system, for commerce and security. ‘Sea Power’ determines world power, so there is also a need to have a “seat at the table” among the big nations and sea-faring empires. As one small island alone, there is no chance for that consideration; but as a Single Market entity of 42 million people and 30 separate countries (and territories), the Caribbean can now have a Voice … and a Vote (in international forums) so as to shape the destiny of our homeland … and maybe even the whole world of commerce & security.

We hereby urge all Caribbean stakeholders – governments and citizens – to lean-in to this Go Lean roadmap to better wield our ‘Sea Power’, so that our region can be a better homeland (and waterscapes) to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation. 

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Commerce of the Seas – Stupidity of the Jones Act

Posted on June 8, 2017 in Economics, Government, Strategy

Go Lean Commentary

CU Blog - Commerce of the Seas - Stupidity of the Jones Act - Photo 1In the Caribbean, we are surrounded by water (straits, banks, Atlantic Ocean, Caribbean Sea, etc); if you stare upon the waters in the middle of a sunny day, you start to see a mirage – a distortion in reality. In the Caribbean, we are also surrounded by a lot of stupidity. Make no mistake, this is not a mirage; it is mercantilism*.

In a previous blog, this commentary asserted that the historicity of a lot of stupidity in society is due to Crony-Capitalism:

Someone is getting paid!

This applies in so many areas of American life that Caribbean people can learn lessons from this history and distortion in reality. This commentary is 1 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”, the Crony-Capitalism in laws and practices around the maritime eco-system in the United States … and other countries. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

The reference to “Commerce” refers to the economic interests of the 30 member-states in the Caribbean region. There are so many Lessons in Economic History for us to glean:

Around the world, countries that had access to the “Sea” have a distinct advantage economically versus countries that were land-locked; i.e. England versus Austria.

Mercantilism dictated that empires force rules and laws to preserve commerce for their home countries. This was also the case for the United States. One prominent law that was instituted was the Jones Act; see more in Appendix B below.

The Jones Act mandates that for a ship to go from one US port to another US port it must be American-made and American flagged. Also, for foreign ships to trade in US Territories, they must first journey to a foreign port before they could journey to another American port to transport goods. This seems “stupid”; but the adherence to this law keeps American maritime commerce options afloat; this means someone is getting paid; see VIDEO in Appendix A below, highlighting a distortion in the reality of Puerto Rico-to US Mainland trade.

How about the Caribbean, do we have or need maritime “protectionism” in the laws of the member-states of our region? The answer is affirmative for the dysfunctional US Territories; there is a need for economic regionalism, not protectionism.

The US Territories of Puerto Rico and the US Virgin Islands are also regulated by the Jones Act. According to the encyclopedic reference (in Appendix B below), this is not good; it hinders economic development!

In March 2013, the Government Accountability Office (GAO) released a study of the effect of the Jones Act on Puerto Rico that noted “freight rates are set based on a host of supply and demand factors in the market, some of which are affected directly or indirectly by Jones Act requirements.” The report further concludes … [that] freight rates between the United States and Puerto Rico are affected by the Jones Act.” The report also addresses what would happen “under a full exemption from the Act, the rules and requirements that would apply to all carriers would need to be determined.” The report continues that “while proponents of this change expect increased competition and greater availability of vessels to suit shippers’ needs” …

The American territories in the Caribbean are in the middle of the Caribbean geography, rimming the Caribbean Sea. The “Laws of the Sea” need to reflect this reality and not just political alignments. This is the purpose of the book Go Lean … Caribbean, to help reform and transform the societal engines for the 30 member-states of the Caribbean region. The book specifically addresses customization to the “Laws of the Sea” to benefit the Caribbean region. The book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This would be the governmental entity for a regional Single Market that covers the land territories of the 30 member-states, and their aligning seas; (including the 1,063,000 square miles of the Caribbean Sea in an Exclusive Economic Zone). The Go Lean/CU roadmap features this prime directive, as defined by these 3 statements:

  • Optimization of the economic engines to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect public safety and ensure the economic engines of the region, including the seas.
  • Improvement of Caribbean governance to support these engines in local governments and in the Exclusive Economic Zone, including a separation-of-powers between the member-states and CU federal agencies.

The Go Lean roadmap allows for the regional stewardship and administration of the commerce on the Caribbean Seas in collaboration, conjunction and cooperation with US legal jurisdiction and foreign entities. The legal premise for this strategy is an Interstate Compact & Treaty – see details in the Go Lean book (Page 278) or the photo-excerpt in Appendix IA below  – legislated by the US Congress, independent Caribbean governments (17) and the colonial masters for the existing overseas territories:

  • France (Guadeloupe, Martinique, St. Martin, St. Barthélemy)
  • The Netherlands (Aruba, Bonaire, Curaçao, Saba, Sint Eustatius, Sint Maarten)
  • United Kingdom (Anguilla, Bermuda, Cayman Islands, Montserrat, Turks & Caicos and the British Virgin Islands)

Such a wide-ranging, fully-encompassing Compact-Treaty was an original intent of the Go Lean book – economic regionalism. The publication (published in November 2013) commenced with a Declaration of Interdependence, pronouncing the need for regional coordination and integration so as to reform and transform Caribbean society. See a sample of relevant stanzas here (Page 11 – 13):

v. Whereas the natural formation of our landmass and coastlines entail a large portion of waterscapes, the reality of management of our interior calls for extended oversight of the waterways between the islands. The internationally accepted 12-mile limits for national borders must be extended by International Tribunals to encompass the areas in between islands. The individual states must maintain their 12-mile borders while the sovereignty of this expanded area, the Exclusive Economic Zone, must be vested in the accedence of this Federation.

vi. Whereas the finite nature of the landmass of our lands limits the populations and markets of commerce, by extending the bonds of brotherhood to our geographic neighbors allows for extended opportunities and better execution of the kinetics of our economies through trade. This regional focus must foster and promote diverse economic stimuli.

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xxiii. Whereas many countries in our region are dependent Overseas Territory of imperial powers, the systems of governance can be instituted on a regional and local basis, rather than requiring oversight or accountability from distant masters far removed from their subjects of administration. The Federation must facilitate success in autonomous rule by sharing tools, systems and teamwork within the geographical region.

The foregoing Jones Act is an American legislation that probably needs to be repealed or revised to reflect the actuality of a globalized economy; (there are some good provisions related to injury of seamen). Consider this recent experience recorded by a commentator on a news site, below an article regarding the efforts to repeal the Jones Act:

John David Oct 25, 2016 at 7:38 pm

The Act does not Protect the Ports and Waterways, that task is left to the US Navy and US Coast Guard. We have Significant Ports on the US Mainland. None of them have had any security issues with Foreign Flagged Vessels. Trade is restrictive to and from places like Puerto Rico, Hawaii, Guam Etc.

Therefore business that could be entertained and cultivated providing a boost in their respective economies, those areas economically are suppressed. The United States has a significant Naval and Coast Guard presence in each of these areas. An example of how this stifles the economy would be to take a guitar manufacturer located on the Big Island of Hawaii. The Big Island has an abundance of Koa wood, a highly sought after wood for the manufacture of wooden guitars. However if they wanted to ship their guitars to a distributor in Australia, they have to first ship it to the USA mainland. They then Offload it and re-ship it to Australia, The interesting part of this story is that many times the costs for shipping it to Australia are less than it was to ship it to the US Mainland on the initial leg. So as you can see this stifles any possible USA productivity. And maybe that is why no one in Hawaii is Mfg guitars, or hardly anything else for that matter.

Original News Article: The Triton – Nautical News – Published January 26, 2015; retrieved June 8, 2017 from: http://www.the-triton.com/2015/01/mccain-repeal-jones-act/

CU Blog - Commerce of the Seas - Stupidity of the Jones Act - Photo 3

Reforming America is out-of-scope for the Go Lean movement, notwithstanding Puerto Rico and the US Virgin Islands. Our quest is to reform and transform the Caribbean … only. The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos for economic regionalism, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the maritime commerce to benefit Caribbean society.

The issue of rebooting maritime commerce has been a frequent subject for previous blog-commentaries; consider this list of sample entries:

https://goleancaribbean.com/blog/?p=11544 Forging Change in the Cruise Industry with Collective Bargaining
https://goleancaribbean.com/blog/?p=5210 Cruise Ship Commerce – Getting Ready for Change
https://goleancaribbean.com/blog/?p=4639 Tobago: A Model for Cruise Tourism
https://goleancaribbean.com/blog/?p=4037 One mission for Maritime Commerce: Expanding Shipbuilding
https://goleancaribbean.com/blog/?p=3594 Better Fisheries Management for Queen Conch
https://goleancaribbean.com/blog/?p=2003 Where the Jobs Are in Maritime Commerce? Consider Shipbreaking
https://goleancaribbean.com/blog/?p=673 Ghost ships – Autonomous cargo vessels without a crew

All Caribbean members are islands or coastal territories. There is a need to reform maritime commerce for the Caribbean region; we can get more economic activity from this sector; the Go Lean book projects 15,000 new direct jobs in the shipbuilding industry, 4000 in fisheries and 800 jobs by reforming payment systems for cruise passengers. The possibility of new jobs are positive economic fruitage from considering a reboot of maritime eco-system; it would be stupid not to try.

Previous generations in the Caribbean lived off the sea; we can again; it would be stupid not to try. This plan is conceivable, believable and achievable. We urge all Caribbean stakeholders – seafarers and land-lovers – to lean-in to this roadmap for economic empowerment. We can make the Caribbean homeland and seas better places to live, work and play. 🙂

Download the free e-book of Go Lean … Caribbean – now!

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation. 

————-

Appendix A VIDEO – The Jones Act And The Debt Crisis – https://youtu.be/PFnrGcP1OyE

Published on Sep 27, 2016 – Nelson Denis talks about the Jones Act.

In addition, see the FULL Documentary on the Jones Act Explanation: https://youtu.be/GpwzoDGDGAQ

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Appendix B: Merchant Marine Act of 1920 aka Jones Act

The Merchant Marine Act of 1920 (P.L. 66-261), also known as the Jones Act, is a United States federal statute that provides for the promotion and maintenance of the American merchant marine.[1] Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Jones Act deals with cabotage and requires that all goods transported by water between U.S. ports be carried on U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.[2] The act was introduced by Senator Wesley Jones.

Laws similar to the Jones Act date to the early days of the nation. In the First Congress, on September 1, 1789, Congress enacted Chapter XI, “An Act for Registering and Clearing Vessels, Regulating the Coasting Trade, and for other purposes”, which limited domestic trades to American ships meeting certain requirements.[3]

The Merchant Marine Act of 1920 has been revised a number of times; the most recent revision in 2006 included recodification in the U.S. Code.[2] In early 2015 Senator John McCain filed for an amendment that would essentially annul the Act.[4] [The amendment failed].

The Jones Act is not to be confused with the Death on the High Seas Act, another United States maritime law that does not apply to coastal and in-land navigable waters.

Objectives and purpose
The intention of Congress to ensure a vibrant United States maritime industry is stated in the preamble to the Merchant Marine Act of 1920.[5]

Cabotage
Cabotage is the transport of goods or passengers between two points in the same country, alongside coastal waters, by a vessel or an aircraft registered in another country. Originally a shipping term, cabotage now also covers aviation, railways, and road transport. Cabotage is “trade or navigation in coastal waters, or the exclusive right of a country to operate the air traffic within its territory”.[6] In the context of “cabotage rights”, cabotage refers to the right of a company from one country to trade in another country. In aviation terms, for example, it is the right to operate within the domestic borders of another country. Most countries enact cabotage laws for reasons of economic protectionism or national security.[citation needed]

The cabotage provisions relating to the Jones Act restrict the carriage of goods or passengers between United States ports to U.S.-built and flagged vessels. It has been codified as portions of 46 U.S.C. [7] Generally, the Jones Act prohibits any foreign-built, foreign-owned or foreign-flagged vessel from engaging in coastwise trade within the United States. A number of other statutes affect coastwise trade and should be consulted along with the Jones Act. These include the Passenger Vessel Services Act, 46 USC section 289 which restricts coastwise transportation of passengers and 46 USC section 12108 restricts the use of foreign vessel to commercially catch or transport fish in U.S. waters.[8] These provisions also require at least three-fourths of the crewmembers to be U.S. citizens. Moreover, the steel of foreign repair work on the hull and superstructure of a U.S.-flagged vessel is limited to ten percent by weight.

…

Effects
The Jones Act prevents foreign-flagged ships from carrying cargo between the US mainland and noncontiguous parts of the US, such as Puerto Rico, Hawaii, Alaska, and Guam.[11] Foreign ships inbound with goods cannot stop any of these four locations, offload goods, load mainland-bound goods, and continue to US mainland ports. Instead, they must proceed directly to US mainland ports, where distributors break bulk and then send goods to US places off the mainland by US-flagged ships.[11] Jones Act restrictions can be circumvented by making a stop in a foreign country between two US ports, e.g., Anchorage–Vancouver–Seattle.

Puerto Rico
Studies by the World Economic Forum and Federal Reserve Bank of New York have concluded that the Jones Act hinders economic development in Puerto Rico.[12]

In March 2013, the Government Accountability Office (GAO) released a study of the effect of the Jones Act on Puerto Rico that noted “[f]reight rates are set based on a host of supply and demand factors in the market, some of which are affected directly or indirectly by Jones Act requirements.” The report further concludes, however, that “because so many other factors besides the Jones Act affect rates, it is difficult to isolate the exact extent to which freight rates between the United States and Puerto Rico are affected by the Jones Act.” The report also addresses what would happen “under a full exemption from the Act, the rules and requirements that would apply to all carriers would need to be determined.” The report continues that “[w]hile proponents of this change expect increased competition and greater availability of vessels to suit shippers’ needs, it is also possible that the reliability and other beneficial aspects of the current service could be affected.” The report concludes that “GAO’s report confirmed that previous estimates of the so-called ‘cost’ of the Jones Act are not verifiable and cannot be proven.”[13]

In the Washington Times, Rep. Duncan Hunter spoke to the need for the Jones Act and why it is not to blame for the island’s debt crisis. “With or without such an effort, it’s imperative not to conflate the unrelated issues of Puerto Rico’s debt and the Jones Act, and to fully grasp the importance of ensuring the safe transport of goods between American ports. There must also be acknowledgment of the dire consequences of exposing ports and waterways to foreign seafarers.”[14]

[See VIDEO in Appendix A above].

US shipbuilding
Because the Jones Act requires all transport between US ports be carried on US-built ships, the Jones Act supports the domestic US shipbuilding industry.[15][16]Critics of the act describe it as protectionist, harming the overall economy for the sake of benefiting narrow interests.[17][18] Other criticism argues that the Jones Act is an ineffective way to achieve this goal, claiming it drives up shipping costs, increases energy costs, stifles competition, and hampers innovation in the U.S. shipping industry[19] – however, multiple GAO reports have disputed these claims.[20]

Source: Retrieved June 8, 2017 from: https://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920

[See the FULL Documentary on the Jones Act Explanation: https://youtu.be/GpwzoDGDGAQ]

————-

Appendix IA – Interstate Compacts

Since Puerto Rico and the Virgin Islands are US Territories, their implementation of the provisions of the Caribbean Union Trade Federation must legally be construed as an Interstate Compact.

An Interstate Compact is an agreement between two or more states of the US. Article I, Section 10 of the US Constitution provides that “no state shall enter into an agreement or compact with another state” without the consent of Congress. Frequently, these agreements create a new governmental agency which is responsible for administering or improving some shared resource such as a seaport or public transportation infrastructure. In some cases, a compact serves simply as a coordination mechanism between independent authorities in the member states.

CU Blog - Commerce of the Seas - Stupidity of the Jones Act - Photo 2

Click on photo to enlarge

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Footnote Reference – * Mercantilism

A system of political and economic policy, evolving with the modern national state and seeking to secure a nation’s political and economic supremacy in its rivalry with other states. According to this system, money was regarded as a store of wealth, and the goal of a state was the accumulation of precious metals, by exporting the largest possible quantity of its products and importing as little as possible, thus establishing a favorable balance of trade.
Source: Retrieved June 8, 2017 from: http://www.dictionary.com/browse/mercantile-system

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ENCORE: First Day of Autumn – Time to Head South

Posted on September 22, 2016 in Industries, Strategy

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Go Lean Commentary

Imagine a world – the new Caribbean – where every year at this time, the first day of Autumn, the efforts begin to move “snowbirds” down south, to the Caribbean to pass the winter months.

We welcome this!

This is the business model envisioned in the book Go Lean … Caribbean. It asserts that with the right guidance, investments and the adoption of best practices that the Caribbean region can give refuge to northern snowbirds for the winter, and profit our communities at the same time. One required investment would be a complete network of Island-hopping ferries, as depicted here.

Imagine the scenario – in the VIDEO here – but a ferry of cars and RV’s (Recreation Vehicles) arriving in one Caribbean port after another:

VIDEO – RVing on the Gulf Coast Ferry System – https://youtu.be/XlTYa83EoTM
Published on Mar 6, 2013 –  … On a recent trip from New Orleans, LA to Galveston Island, TX, both Google Maps and our GPS suggested that we drive inland, along interstate 10. Since we prefer to stay on more scenic local roads whenever possible (and we were also eager to take the RV on the ferry ride to Galveston Island) we stayed along the coast instead. As a bonus, we drove through peaceful and scenic marshland and got some views of the Gulf of Mexico as well.
While researching our route, we discovered that there would be an additional water crossing required, on the Cameron-Holly Beach ferry. We weren’t sure if a large motorhome would be able to make the crossing. Were large vehicles allowed? Was there a problem with low tide causing steep approach or departure angles? A little online research showed that it wouldn’t be a problem, although we’d recommend that anyone planning to follow this route check for any updates or changes to ferry policies or conditions. The Cameron-Holly Beach ferry trip is laughably short… only 1/4 mile and about 3 1/2 minutes. …
When we arrived in Port Bolivar, TX to catch the ferry to Galveston Island, we were pleased to find that the trip was free for all ages! During the crossing we saw dolphins riding in our bow wave and were lucky enough to catch one of them on video, as you can see. Next time you’re RVing along the Gulf Coast, get off the Interstate and head out onto the water. It’s a great way to travel by RV!

Consider the original blog-commentary here from April 11, 2014. It is being ENCORED for this first day of Autumn 2016:

============

Title: Florida’s Snowbirds Chilly Welcome

Florida's Snowbird Chilly Welcome - PhotoTo the Canadian Snowbirds, looking for warm climates and a warm welcome, we say:

“Be our guest”.

To the Caribbean Diaspora, living in Canada and other northern countries, we say:

“Come in from the cold”.

The book Go Lean…Caribbean aligns with the news story in the foregoing article. While the US may be retracting the Welcome Mats from Canadian snowbirds, after 180 days, the islands of the Caribbean extend the invitation for them to pass the wintry months here. They are invited to bring their time, talent and treasuries; (according to the foregoing article: billions of dollars).

  • Need an extra month? No problem.
  • Need access to cutting-edge medical treatment? Got it.
  • Need protection from crime and harassment? Got you covered.
  • Need video communications to interact with Embassy and government officials? Sure thing.
  • Need access to your Canadian dollar bank accounts? No problem.

The source news article is embedded here as follows:

Title: “Congress protects America from Canadian pensioners”
Gulfport, Florida – A chore combining carpentry with diplomacy awaits Gordon Bennett, a retired Canadian soldier, after his move to a larger mobile home near Florida’s Gulf coast. As commander of an overseas post of the Royal Canadian Legion, he likes to fly his national flag from a handy palm tree. But as a respectful guest—one of about half a million Canadian “snowbirds” who own winter homes in Florida, using special visas good for a total of 180 days in any 12-month period—he knows to follow strict protocol when mounting his flags, or face complaints from American neighbours. His Canadian flag cannot be flown on its own but must be paired with the Stars and Stripes (though never on the same pole). The American flag may not be smaller or fly lower, and must be flown in the position of honour (the right, as you emerge from a doorway).

Mr. Bennett, a genial octogenarian, does not resent the fussing. In his winter home of Pinellas County—an unflashy region of mobile home parks, “senior living” complexes, golf courses and strip malls—the welcome is mostly warm for Canadian snowbirds, who pump billions of dollars into Florida’s economy each year. His post shares premises with the American Legion, and has introduced local veterans to Moose Milk, a lethal Canuck eggnog-variant involving maple syrup. He routinely brings 50 or 60 Canadians to ex-servicemen’s parades, picnics or dinner-dances.

But once issues of sovereignty are raised, America’s welcome can chill. Visa rules force Canadian pensioners to count each day after they cross the border, typically in late October. They are enforced ferociously: overstayers may be barred from re-entry for five years. Some members of Congress have been trying to ease the rules for Canadian pensioners since the late 1990s. A law allowing Canadians over 55 to spend up to eight months in America each year, as long as they can show leases for property down south and do not work, passed the Senate in 2013 as part of a comprehensive immigration bill, but like the bigger bill, it has now stalled. In the House of Representatives an extension for Canadian snowbirds has been tucked into the JOLT Act, a tourism-promotion law introduced by Joe Heck, a Nevada Republican.

Canadian pensioners are not an obviously threatening group—few Americans report being mugged by elderly Ottawans armed with ice-hockey sticks. They pay property and sales taxes in America. They must cover their own health-care costs while down south, through the Canadian public health-care system and private top-up policies. If allowed to stay for eight months, most would stay only seven, predicts Dann Oliver, president of the Canadian Club of the Gulf Coast (staying longer would complicate their health cover and their tax status). They just want a few more weeks in the sun.

Yet even something this easy is proving hard. Mr. Heck is willing to tweak his bill to focus on two reforms: the Canadian extension and visa interviews by video-conference for Chinese, Brazilian and Indian would-be visitors, who currently face long journeys to American consulates. But many members of the House “are reluctant to do anything with the word immigration in it,” says Mr. Heck. Optimists hope the bill might come up for a vote this year. For Mr. Bennett and his wife, Evelyn, Canadians whose “bones ache” in their homeland’s cold, it can’t come too soon.
Source: The Economist (Retrieved 03/08/2014) –http://www.economist.com/news/united-states/21598680-congress-protects-america-canadian-pensioners-chilly-welcome

Florida's Snowbird Chilly Welcome - Photo 2The book, Go Lean…Caribbean, serves as a roadmap for the implementation of the Caribbean Union Trade Federation (CU) over a 5 year period. The book posits that tourism products can be further extended to attract, accommodate and harvest the market of Snowbirds. These ones bring more than they take, and therefore should be viewed as low-hanging fruit for tourism’s economic harvest. While some CU member-states may target a High-Net-Worth clientele, there is room too for the hordes of retirees who may seek more modest accommodations. In the end, billions of dollars of economic output from the Snowbird market are still … billions of dollars.

From the outset, the book defined that the purpose of the CU is to optimize economic, security and governing engines to impact Caribbean society, for residents and visitors. This was pronounced in Verse IV (Page 11) of the opening Declaration of Interdependence:

Whereas the natural formation of the landmass is in a tropical region, the flora and fauna allows for an inherent beauty that is enviable to peoples near and far. The structures must be strenuously guarded to protect and promote sustainable systems of commerce paramount to this reality.

In line with the foregoing article, the Go Lean book details some applicable infrastructure enhancements and advocacies to facilitate more Snowbird traffic:

  • Ferries – Union Atlantic Turnpike (Page 205)
  • Self-Governing Entities/Fairgrounds (Pages 105, 192)
  • Optimized Medical Deliveries (Page 156)
  • Marshalling Economic Crimes (Page 178)
  • Improve Elder-Care (Page 239)

The purpose of this roadmap is to make the Caribbean, a better place to live, work and play; for snowbirds too! This way we can benefit from their presence.

Download the book Go Lean … Caribbean – now!

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Securing the Homeland – From the Seas

Posted on September 15, 2016 in Government, Strategy

Go Lean Commentary

Continuing with the series on Security Intelligence, this commentary – 2 of 3 from the movement behind the book Go Lean … Caribbean – focuses on the Caribbean Sea and adjoining waterways. It addresses how we can optimize Security Intelligence (Naval/Coast Guard and police-crime issues) emanating from the seas so as to better secure our Caribbean homeland. All the other commentaries in the series covered these details:

  1.   Securing the Homeland – From the Air
  2.    Securing the Homeland – From the Seas
  3.   Securing the Homeland – On the Ground

Each commentary relates to the Caribbean security apparatus being promoted in the Go Lean regional empowerment effort. They consider the short-term, mid-term and long-term needs of our communities.

cu-blog-securing-the-homeland-from-the-seas-photo-4The 1,063,000 square miles of the Caribbean Sea are very important to our economic wellbeing, in addition to the banks and straits surrounding other islands in the Atlantic Ocean like the Bahamas, Bermuda and Turks & Caicos Island. There are fishery issues, commercial shipping, mineral extraction, pipelines, cruise lines and personal boat-based tourism (yachting, sailboats, etc.) issues. Island-hopping is an important activity for visitors.

The promoters of the book Go Lean … Caribbean wants to protect these activities and the homeland in general. We want to ensure that all our stakeholders – residents, tourists, trading partners – are safe and secure within our borders, on our waterways and within our Exclusive Economic Zone. This would fulfill our implied Social Contract, where citizens surrender some of their natural rights in exchange for additional protections from the State. The normal Social Contract would authorize the Caribbean member-states to deploy Naval operations and Coast Guards. The Go Lean roadmap extends the Social Contract further, empowering the Caribbean Union Trade Federation (CU) and its security apparatus … for a CU Navy.

cu-blog-securing-the-homeland-from-the-seas-photo-5For Security Intelligence related to the seas, the focus is not only on human “bad actors”; sometimes the nemesis is Mother Nature.  As related previously, the Caribbean region must be ready for when “Crap Happens“. The qualifying incidences include events and hazards that pose a ‘clear and present danger’ to everyday life for Caribbean communities. So in addition to terrorism-related events like piracy and economic crimes like fishery encroachments, the Caribbean security apparatus must also include an Emergency Management operation. This covers the communities for “911 dangers” like “Search and Rescue” plus regional catastrophes; which includes natural disasters (hurricanes, earthquakes/tsunamis, volcanoes, floods, etc.), industrial incidents (chemical & oil spills), and sea-bourn bacterial & viral pandemics; think “red tides”.

The Go Lean book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation. This implementation would allow for the establishment of a technical efficient Navy – bleeding with cutting-edge systems and technologies – incorporating the existing Navies and Coast Guards of all the member-states. This allows for greater leverage and economies-of-scale.

Naval operations are costly to maintain; it is prudent to spread this large cost across the wider (wholesale) base of 42 million people in the 30 member-states. In addition to the pure economic metrics, the Go Lean roadmap also allows for smart, efficient and agile deployments; (lean = agile). But the focus of this commentary is not so much on naval hardware (ships, sub-marines, piers and docks), as it is a focus on software: Intelligence Gathering & Analysis, un-manned vessels, positioning and surveillance systems, like radar, GPS and e-LORAN.

These executions are a BIG deal, not just for the world of nautical arts  & sciences, but also for the Caribbean historicity. Nautical failures have always plagued Caribbean maritime operations. In a previous blog-commentary, the practice of “Shipwrecking” was exposed, reflecting a bad community ethos that permeated the region at the time. The encyclopedic details are as follow:

Shipwrecking was the practice of taking valuables (cargo) from a shipwreck which has floundered close to shore; this evolved into what is now known as “marine salvage”. While wrecking is no longer economically significant, this practice was in itself an industry as recently as the 19th century in some parts of the world, and a mainstay in many Caribbean economies. The Caribbean islands, waterways and ports have to contend with a lot of hidden water hazards, like reefs. So this industry thrived on the uncertainty of shipping, (before better navigational tools and systems), but also created their own pro-wrecking incidents and threats, like false lighting and sabotage.

This history helps us to appreciate the need for good nautical intelligence.

  • Where are the ships/vessels?
  • Where are they going?
  • How do they plan to get there?

These simple questions can mean life-or-death. We have the unfortunate experience, just this past year, of the cargo ship El Faro, that sank of the coast of the Bahamas in the middle of a quickly developed storm, Hurricane Joaquin. See details of the incident in the VIDEO here and the full news story in the Appendix below:

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VIDEO – Search for survivors of cargo ship that disappeared during Hurricane Joaquin – http://www.miamiherald.com/latest-news/article37787241.html

Posted on October 5, 2015 – U.S. Coast Guard Captain Mark Fedor addresses journalists about the search for survivors of El Faro, the cargo ship that disappeared during Hurricane Joaquin. The Coast Guard now believes the ship has sunk, but the search continues for survivors. Video by Walter Michot (wmichot@miamiherald.com).

This type of incident should NEVER happen again under the CU regime. Modeling the Air Traffic Control eco-system, the CU mandate is to know the geo-position of every vessel (of a certain tonnage) in the Exclusive Economic Zones of the Caribbean Seas.

How?

How do we gather this intelligence from the Caribbean Seas? Considering that maritime satellites are already in place, and weather forecasting is already a mature ‘Art & Science’, here are 3 additional deployments embedded in the Go Lean roadmap slated for the Caribbean Seas region:

Lighthouses This 300 year old technology of a physical lighthouse is now anachronistic. With satellite-based GPS, there is no need for a flashing light to distinguish a coastal destination. This is not the case for virtual lighthouses, where a unique radio signal may constantly ping so as to establish the location. The location is established by triangulating 3 distinct signals. The CU will install e-LORAN virtual lighthouses all along coastlines in every Caribbean member-state. These sites will identify their locations and also gather radar & surveillance data of all passing vessels, then report the data back to the Unified Command & Control Centers for Maritime Operations. See encyclopedia details on e-LORAN in the Appendix below.
Buoys Modeling the successes of the National Oceanic and Atmospheric Administration in the US, the CU will deploy advanced buoys that broadcast atmospheric data in short range burst to nearby vessels, plus transmit the data back to Maritime Operations Centers. The American example provides for dynamic data from these buoys to be uploaded to searchable websites, like this example here: http://www.ndbc.noaa.gov/station_page.php?station=44013. See Photo of Buoy website below.
Unmanned vessels While there is a jockeying for position in the race for unmanned self-driving cars on land and unmanned aerial drones in the air, there is also an “arms race” for autonomous ships. A strategy of a wide network of connected unmanned boats conducting continuous surveillance on the Caribbean Seas will enable tactical management within the Unified Command & Control structure. See Photo of Ghost Ships below.

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Ghost ships - Autonomous cargo vessels without a crew

Gathering nautical intelligence does not have to be a covert activity. This could simply be the law: every vessel – over a certain tonnage – must register with Caribbean maritime authorities when entering our waters. We must have a physical or virtual transponder to recognize them on regional radar and surveillance systems.

The previous submission in this blog series describes that the regional security pact must be instituted with a legal treaty – Status of Forces Agreement – at the launch of the Caribbean Union Trade Federation. This treaty also enables the establishment of the CU Navy and an accompanying Marine Expeditionary Force to facilitate the region’s security interest. In addition, the roadmap details the width-and-breadth of a complete Intelligence Gathering & Analysis Apparatus. Nautical data – of every ship/vessel in the area – adds to the intelligence gathering.

Imagine the presence – on radar – of a ship that has not registered its transponder – suspicious.

The Go Lean book asserts there is a constant ‘clear and present danger’ on the Caribbean waters. There is the need for remediation and mitigation. This point is pronounced early in the Go Lean book with the opening Declaration of Interdependence (Pages 11 – 12) that claims:

v.    Whereas the natural formation of our landmass and coastlines entail a large portion of waterscapes, the reality of management of our interior calls for extended oversight of the waterways between the islands. The internationally accepted 12-mile limits for national borders must be extended by International Tribunals to encompass the areas in between islands. The individual states must maintain their 12-mile borders while the sovereignty of this expanded area, the Exclusive Economic Zone, must be vested in the accedence of this Federation.

x.    Whereas we are surrounded and allied to nations of larger proportions in land mass, populations, and treasuries, elements in their societies may have ill-intent in their pursuits, at the expense of the safety and security of our citizens. We must therefore appoint “new guards” to ensure our public safety and threats against our society, both domestic and foreign. The Federation must employ the latest advances and best practices … to assuage continuous threats against public safety.

xii.   Whereas the legacy in recent times in individual states may be that of ineffectual governance with no redress to higher authority, the accedence of this Federation will ensure accountability and escalation of the human and civil rights of the people for good governance, justice assurances, due process and the rule of law. As such, any threats of a “failed state” status for any member state must enact emergency measures on behalf of the Federation to protect the human, civil and property rights of the citizens, residents, allies, trading partners, and visitors of the affected member state and the Federation as a whole.

xvi.  Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes, including piracy and other forms of terrorism, can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

The CU Security/Defense Pact establishes the Homeland Security Department with jurisdiction over the 30 member-states and the Exclusive Economic Zone. Even though there will be the need for collaboration with the formal Armed Forces of the US and their Coast Guard, the CU must take the lead for the region’s security apparatus, in support and defense of the region’s economic engines. In fact, the Go Lean roadmap stresses its prime directives with these 3 statements:

  • Optimization of the economic engines in order to grow the regional economy and create new jobs.
  • Establishment of a security apparatus to protect the resultant economic engines and the Caribbean homeland.
  • Improvement of Caribbean governance to support these engines.

The requirement for the Status of Forces Agreement, to empower our security apparatus, is “Step One, Day One” in the Go Lean roadmap. The Go Lean book details the series of community ethos, strategies, tactics, implementations and advocacies to provide the proactive and reactive public safety/security in the region and the Caribbean Seas:

Community Ethos – Economic Systems Influence Individual Choices Page 21
Community Ethos – Consequences of Choices Lie in Future Page 21
Community Ethos – Privacy –vs- Public Protection Page 23
Community Ethos – Intelligence Gathering Page 23
Community Ethos – “Crap” Happens Page 23
Community Ethos – Cooperatives Page 25
Community Ethos – Ways to Improve Sharing Page 35
Community Ethos – Ways to Impact the Greater Good Page 37
Strategy – Vision – Confederating a non-sovereign permanent union Page 45
Tactical – Fostering a Technocracy Page 64
Tactical – Separation of Powers – Coast Guard & Naval Authorities Page 75
Tactical – Separation of Powers – Ground Militia Forces Page 75
Tactical – Separation of Powers – Emergency Management Agency Page 76
Tactical – Separation of Powers – Department of Agriculture and Fisheries Page 88
Implementation – Ways to Pay for Change Page 101
Implementation – Start-up Foreign Policy Initiatives Page 102
Implementation – Start-up Security Initiatives Page 103
Implementation – Start-up Benefits from the EEZ Page 104
Implementation – Ways to Foster International Aid Page 115
Planning – 10 Big Ideas – #3: Consolidated Homeland Security Pact Page 130
Planning – Ways to Make the Caribbean Better – Safer Page 131
Planning – Ways to Improve Failed-State Indices – Escalation Role Page 134
Planning – Lessons from the American West – Needed Law & Order Page 142
Planning – Lessons from Egypt – Law & Order for Tourism Page 143
Advocacy – Ways to Grow the Economy – Quick Disaster Recovery Page 151
Advocacy – Ways to Improve Governance Page 168
Advocacy – Ways to Better Manage the Social Contract Page 170
Advocacy – Ways to Impact Justice – Piracy & Terrorism Enforcement Page 177
Advocacy – Ways to Reduce Crime – Regional Security Intelligence Page 178
Advocacy – Ways to Improve Homeland Security Page 180
Advocacy – Ways to Mitigate Terrorism – Combat Piracy Page 181
Advocacy – Ways to Improve Intelligence Gathering & Analysis Page 182
Advocacy – Ways to Improve for Natural Disasters Page 184
Advocacy – Ways to Improve for Emergency Management Page 196
Advocacy – Ways to Foster Technology Page 197
Advocacy – Ways to Develop Ship-Building Page 209
Advocacy – Ways to Improve Fisheries Page 210

Other subjects related to security and governing empowerments for the region’s defense have been blogged in other Go Lean…Caribbean commentary, as sampled here:

https://goleancaribbean.com/blog/?p=8819 Lesson from China – SouthChinaSeas: Exclusive Economic Zones
https://goleancaribbean.com/blog/?p=7449 ‘Crap Happens’ – So What Now?
https://goleancaribbean.com/blog/?p=6893 Meteorology Realities for Modern Tropical Life
https://goleancaribbean.com/blog/?p=6103 Sum of All Fears – ‘On Guard’ Against Deadly Threats
https://goleancaribbean.com/blog/?p=5396 ‘Significant’ oil deposits changes Exclusive Economic Zone Security Needs
https://goleancaribbean.com/blog/?p=5002 Managing a ‘Clear and Present Danger’
https://goleancaribbean.com/blog/?p=4360 Dreading the ‘CaribbeanBasin Security Initiative’
https://goleancaribbean.com/blog/?p=3881 Intelligence Agencies to Up Cyber Security Cooperation
https://goleancaribbean.com/blog/?p=1965 America’s Navy – 100 Percent – Model for Caribbean
https://goleancaribbean.com/blog/?p=1554 Status of Forces Agreement = Security Pact
https://goleancaribbean.com/blog/?p=273 10 Things We Want from the US – #4: Pax Americana

The promoters of the Go Lean … Caribbean book has only one goal: to make this homeland a better place to live, work and play. This also means stability and safety on our waterways.

The Caribbean is arguably the best address of the planet, with some of the best waterscapes; but there are societal defects as well. These must be remediated and mitigated. Our primary economic driver is tourism, including cruise tourism. There have been incidents in the past within the cruise industry, where the implementations of this Go Lean/CU roadmap would have helped to maintain business continuity. See samples/examples of previous incidences in the link here: http://www.usatoday.com/picture-gallery/travel/2016/02/09/cruise-ship-incidents/80049070/

To succeed in the region’s execution of Homeland Security on the waterways, we must lead first with nautical intelligence.

To succeed in the region’s execution of Emergency Management, we must lead first with nautical intelligence.

A safe, secure homeland and a safe, secure Caribbean Sea is important for how we live, how we work, and how we and others play here in the Caribbean. So the issues in this Homeland Security series is of serious concern. This allows for our vision of an elevated society to be fully manifested in good times and bad. 🙂

Download the book Go Lean … Caribbean – now!

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Appendix – eLORAN

Loran or “long range navigation” was a hyperbolic radio navigation system developed in the United States during World War II. After some evolution, Loran-C was the navigation standard for a number of decades. This system allowed a receiver to determine its position by listening to low frequency radio signals transmitted by fixed land-based radio beacons. [It has now been mostly de-commissioned] due to the expense of the equipment needed to interpret the signals, compared to civilian satellite navigation – GPS – systems introduced in the 1990s.

With the perceived vulnerability of global navigation satellite system (GNSS),[47] and their own propagation and reception limitations, renewed interest in LORAN applications and development has appeared.[48] Enhanced LORAN, also known as eLORAN or E-LORAN, comprises an advancement in receiver design and transmission characteristics which increase the accuracy and usefulness of traditional LORAN. With reported accuracy as good as ± 8 meters,[49] the system becomes competitive with unenhanced GPS. eLORAN also includes additional pulses which can transmit auxiliary data such as DGPS corrections. eLORAN receivers now use “all in view” reception, incorporating signals from all stations in range, not solely those from a single GRI, incorporating time signals and other data from up to 40 stations. These enhancements in LORAN make it adequate as a substitute for scenarios where GPS is unavailable or degraded.[50]

United Kingdom eLORAN implementation
On 31 May 2007, the UK Department for Transport (DfT), via the General Lighthouse Authorities (GLA), awarded a 15-year contract to provide a state-of-the-art enhanced LORAN (eLORAN) service to improve the safety of mariners in the UK and Western Europe.
Source: Retrieved September 13, 2016 from: https://en.wikipedia.org/wiki/Loran-C#eLORAN

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Appendix – News Article: Despite warnings, lost Florida ship steamed into Hurricane Joaquin

By: Alex Harris and David Ovalle

OCTOBER 5, 2015 – When the cargo ship El Faro left Jacksonville for its regular run to Puerto Rico, its owners considered a tropical storm named Joaquin drifting near the Bahamas nothing that the rugged 790-foot vessel and its experienced 33-member crew couldn’t handle.

The forecast changed as soon as the massive ship set sail but its course — the shortest, straightest shot across the Atlantic to offload containers — never did.

In the face of increasingly ominous warnings about Hurricane Joaquin from the NationalHurricaneCenter, tracking data shows that the El Faro steered almost directly into the strengthening eye of a major hurricane, a decision that appears to have contributed to one of the worst cargo-ship accidents off the U.S. coast in decades.

On Monday, the U.SCoast Guard confirmed the worst fears of families awaiting word in the ship’s homeport of Jacksonville: The massive ship, missing since a last communication Thursday, sank. Its hull spewed so much Styrofoam packing debris from within its bowels that a Coast Guard officer said the waters off the Bahamas resembled a golf course driving range dotted with balls.

One corpse was found Sunday night, as well as an empty and badly damaged 43-seat lifeboat. There were unidentifiable human remains inside a “survival suit,” which helps crew members float and avoid hypothermia.

Despite the Coast Guard’s grim discoveries, the search will continue for possible survivors. The questions about what happened to the ship have only begun.

While much remained unclear, some commercial shipping experts said federal investigators, who will produce the final report on the El Faro’s fate, will almost certainly focus on the call to risk navigating through a hurricane rather than the captain or company deciding to take the safer, but longer route down along the more protected Florida coast.

“He was going to cross the storm at some point. In my opinion, it makes no sense to do that. When you’re a ship, you want to avoid the storm at all costs,” said Capt. Sam Stephenson, who teaches emergency ship handling at Fort Lauderdale’s ResolveMaritimeAcademy.

“A lot of questions will be about what the company and the captain knew and when, and what action was taken,” Basil Karatzas, of Karatzas Marine Advisors & Co., told the Wall Street Journal.

The 790-foot ship departed from Jacksonville on Tuesday when Joaquin was still a tropical storm. The American-flagged El Faro, which means The Lighthouse in Spanish, had a crew of 33 — 28 Americans and 5 from Poland. The captain, Michael Davidson of Maine, was a veteran. The ship was due to arrive in San Juan on Friday.

In a statement on its website, TOTE Maritime Puerto Rico, which owns the ship, said that when the crew set sail on Tuesday, the weather called for a tropical storm, not a hurricane.

“Our crew are trained to deal with unfolding weather situations and are best prepared and equipped to respond to emerging situations while at sea,” the company wrote. “TOTE Maritime Puerto Rico authorized the sailing knowing that the crew are more than equipped to handle situations such as changing weather.”

But by 11 p.m. that night, with the El Faro still not far from Jacksonville, forecasters warned that Joaquin had already hit 70 mph and would become a hurricane by the next morning. Forecasters also noted that Bahamian waters were warm and wind shear was mild, conditions that can fuel intensification. Some computer models saw Joaquin growing fiercer fast. “It should be noted, that the UKMET, GFS, and ECMWF models all significantly deepen Joaquin during the next few days, and the NHC forecast could be somewhat conservative.”

That’s exactly what happened. By 8 a.m. Wednesday, with the ship still hours from the northern Bahamas according to data from Marinetraffic.com, the NHC declared Joaquin a hurricane with 75 mph winds. Forecasters also cautioned that additional strengthening was expected. Over the next 12 hours, Joaquin exploded, wind speed leaping with every NHC advisory. By 11 p.m. Wednesday, it was a Category 3 storm with 115 mph winds.

At least one crew member expressed concern. “Not sure if you’ve been following the weather at all,” crew member Danielle Randolph wrote in an e-mail to her mother, according to the Washington Post, “but there is a hurricane out here and we are heading straight into it.”

By 7:30 a.m. Thursday — about when the ship would have been hitting the hurricane wind field of a storm on the cusp of Cat 4 — the El Faro reported losing power and taking on water. According to TOTE, the company that owns the ship, the crew reported successfully pumping the water out. The weather conditions kept the ship leaning a “manageable” 15 degrees to the side, according to TOTE. That was the last communication from the ship.

At a Monday press conference, Coast Guard Capt. Mark Fedor said that would have left the ship, unable to make headway, at the mercy of 100-knot winds and waves estimated at 50-feet high. Hulls can crack when suspended between waves. Container ships, which can be top-heavy, also are prone to capsizing. Unless the hull is found, how the El Faro went down may always be a speculation.

It’s unclear if that will happen. The ship, packed with 391 containers above deck and 294 below, sank in an area where the Atlantic runs 15,000 feet deep.

The conditions of a major hurricane — where wind and waves can be blinding — also make the process of abandoning ship dangerous. But Coast Guard rescue teams haven’t given up hope of finding survivors. Fedor said a person could survive four to five days in the 80 degree water.

“These are trained mariners,” he said. “We’re not going to discount someone’s will to survive.”

Because El Faro is an American-flagged vessel, the investigation into the sinking will be led by the National Transportation Safety Board and aided by the Coast Guard. Fedor said the Coast Guard will likely launch an independent investigation as well.

U.S. Rep. Corrine Brown of Jacksonville, a senior member of the House Transportation and Infrastructure Committee, also called for a congressional inquiry. She planned to meet with El Faro family members Monday afternoon.

TOTE Maritime Puerto Rico did not respond to calls for comment. But in a statement released Monday, President Tim Nolan expressed gratitude to the Coast Guard and dismay at the situation. “We continue to hold out hope for survivors,” he said. “Our prayers and thoughts go out to the family members and we will continue to do all we can to support them.”

But some commercial shipping experts question whether there was a push to try to cut it too close around a developing storm. The Marinetraffic.com data shows El Faro steaming along toward the Bahamas at 18 to near 20 knots — close to its maximum speed.

Giving Joaquin a wider berth and traveling south down the Florida coast might have added 200 miles, and anywhere between six and 10 hours of travel time, Stephenson said. “Prudence plays a large role in this situation.”

Capt. Mark Rupert, who worked the Jacksonville-to-Puerto Rico route for over a decade on cargo ships, agreed the route nearer to Florida was the safest option. Trying to outrun the storm by heading east could lead a ship right into the system’s nastier side.

Rupert and Stephenson said a loss of power would have led to cascading problems, breaking cargo free, worsening violent lurching in waves and adding to any list from taking on water.

“When you don’t have propulsion, you can’t do anything. You’re at the mercy of the sea,” said Rupert, a veteran shipping captain who now works as a harbor pilot in Fort Lauderdale. “It’s kind of terrifying to think of what the crew would have went through in their final minutes.”

Stephenson said the fact that the remains of a crew member were found in a survival suit also tells a story. “They knew the ship was going down.”

In the Bahamas, meanwhile, donations continued to pour as officials worked to assess the extent of the damage in its southern and central islands from Hurricane Joaquin. The government still has not confirmed any deaths from the storm. But Rev. Keith Cartwright of the Anglican Diocese of the Bahamas and the Turks and Caicos Islands told the Miami Herald that according to Bahamian officials, a man died when the roof of his home on Long Island collapsed as a result of high winds

Downed utility poles and flooded runways continue to pose challenges, though Police Commissioner Ellison Greenslade and his team were able to land in Acklins and CrookedIslands Monday as they traveled to assess the situation.

“Please help the people at ColonelHillAirport to get to Nassau before sunset. They need airlift. 46 persons and counting,” Greenslade Twitter account read. Colonel Hill is in CrookedIsland.

Prime Minister Perry Christie also continued his tour of the devastation and his appeal for assistance. He pledged that no resources would be spared in providing assistance in the Joaquin’s aftermath but said the country cannot do it alone.

“We are going to need help,” Christie told the government news station ZNS Sunday after his second visit to Long Island in 24 hours. “We made a commitment to go all out, to bring relief in the shortest possible time, to bring restoration in the shortest possible time. We have now spread our teams around the affected areas.”

MIAMI HERALD STAFF WRITER JACQUELINE CHARLES CONTRIBUTED TO THIS STORY.

Source: Retrieved September 13, 2016 from: http://www.miamiherald.com/news/weather/hurricane/article37779879.html

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