Trinidad and Tobago (T&T) has been primarily an oil and gas based economy with downstream industries such as methanol, urea, ammonia, and ferrous steel. It is the largest exporter of methanol and ammonia to the world and the second largest exporter of liquefied natural gas (LNG) to the United States of America (USA).
An international company, based in Houston, Texas, USA, which independently evaluates oil and gas properties and quantities of certified oil reserves, recently submitted its commissioned report indicating that the level of proven natural gas reserves in T&T has fallen to damaging levels. The Government of Trinidad and Tobago has decided that for future economic sustainability and social stability, it is critical that the gas-based economy diversify to allow alternative avenues for foreign investment, thus facilitating increased trade and continued industrial growth.
One of those key areas that has been proposed is the further development and expansion of the shipbuilding and repair industry. Trinidad has been engaged in the commercial repair of small vessels such as tugs, barges and offshore supply vessels for over 100 years, primarily in Chaguaramas, northwest of Trinidad. One of the proposed sites that have been identified to further advance this development is LABIDCO’s new port extension and Union Industrial Estate, both located in La Brea, southwest of Trinidad, an area previously proposed for the establishment of a Aluminum Foundry Complex. This area is ideal due to its existing deep-water port infrastructure, the protected Gulf of Paria waterfront, available acreage, and local expertise in welding and steelmaking.
Although it has been through difficult times for the past 25 years, Trinidad and Tobago’s maritime industry should be viewed as a vital strategic asset. The industry with the establishment of new shipyards would employ more than 4,000 highly skilled workers and create some of the highest paying jobs in the manufacturing industry. These events are often overlooked because ship repair and construction activities must, by their very nature, occur in some of the rural communities (for example, Chaguaramas, La Brea and Point Fortin, with Port of Spain as the only exception. remarkable). While their current contribution to the Trinidad and Tobago economy is small, either directly or indirectly, shipyards have a large influence on the overall economic situation, nationally and globally.
The situation now facing the government should be seen as an opportunity, an opportunity to “develop a world-class shipbuilding and repair sector,” an opportunity to diversify the economy of the energy sector. The Shipbuilding and Repair Development Company of Trinidad and Tobago Limited strongly urges the government to consider all aspects of this important sector and trusts that it will adequately support and assist in the implementation of the plans, as outlined.