Abinader stresses importance of ports for Dominican economy

Dolores

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President Luis Abinader was a keynote speaker on Wednesday, 13 May 2021, at the opening of the First Virtual Forum on Port Law in the Dominican Republic. The event is organized by the Dominican Port Authority (Apordom) and the Association of Shipping Companies of the Dominican Republic (ANRD).



Abinader spoke of the importance of the port sector for the economic recovery the country is experiencing and of the opportunities it offers for a competitive economy. The President stressed that 90% of the global trade is transported by ships.



The President highlighted the country’s strategic geographic position and the efforts being made to turn the country into a regional logistics hub. Abinader spoke of the many port locations on all the coasts. He mentioned the ports of Santo Domingo, La Romana, Boca Chica, San Pedro de Macorís and Barahona on the south coast...

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johne

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This is of extreme importance. We have discussed this in the past in-a-round-about way relative to China and why THEY would want our port system. This is probably our MOST important asset..
 

windeguy

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This is of extreme importance. We have discussed this in the past in-a-round-about way relative to China and why THEY would want our port system. This is probably our MOST important asset..
No question China has interest in this region:


 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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The key importance here is that no US investors are looking at the DR ports in any financial prospect Lahore or midterm.
China invests for the long term goals, strategically.

The DR is best served by negotiating with Chinese investors, and gaining a stepping stone into the regional shipping market, in an extended goal.

The US government will not invest into public projects outside their borders.

Much less now with an US crumbling infrastructure all over the country.

The prospects of a US pushed alternative to the Chinese Belt and Roads, are bleak.

The US sanctions and political pressure to halt the Chinese belt and road failed, the minute it required an alternate funding source.

You can’t contain a growing superpower like China by aggressive suppression with other countries.

This is another failed policy from Washington…

For the DR there’s no second option to China.
 

windeguy

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If China is the "only" option, it does not mean it is a "good" option regarding who screws the DR over ports.
This should be clear based upon China's methods in other undeveloped and developing nations.
Some things are best left undone.
 

johne

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If China is the "only" option, it does not mean it is a "good" option regarding who screws the DR over ports.
This should be clear based upon China's methods in other undeveloped and developing nations.
Some things are best left undone.
Yes Windy, however this statement from the Pez, is his ticket to fame. As he has stated our area is incredibly situated (for the good) for using the ports in various way in the not too distance future for economic growth.
For example, the port of Savannah Ga. I have had my business in the states operating from the city for the past 12 years and I saw first hand the huge growth when they had the foresight to deepen the harbor as the route of passage was being made for the Suez Canal widening . Think China and the shortening of the distance they gained! Now think something along the lines of Savannah or Miami to the DR.
I think we are sitting on a gold mine and the Pez knows all about it. lol
 

windeguy

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Two questions, separate but related to ports since I am not aware how such businesses work in general:

1) China has provided various countries with loans to be able develop and improve their ports. Countries then default on the loans then and China keeps the ports. I see how this helps China in their global power grab. How would this help the DR?

2) Someone invests in the DR ports in a way that they are improved and still are controlled by Dominicans.
Let us say China does this in good faith. ( A stretch, I know)
This allows the flow of goods in and out of the DR to be improved. How does China (or any other country that would improve the ports in the DR benefit from the DR having better ports aside from perhaps getting some of the profit from port fees?
 
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johne

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Two questions, separate but related to ports since I am not aware how such businesses work in general:

1) China has provided various countries with loans to be able develop and improve their ports. Countries then default on the loans then and China keeps the ports. I see how this helps China in their global power grab. How would this help the DR?

2) Someone invests in the DR ports in a way that they are improved and still are controlled by Dominicans.
Let us say China does this in good faith. ( A stretch, I know)
This allows the flow of goods in and out of the DR to be improved. How does China (or any other country that would improve the ports in the DR benefit from the DR having better ports aside from perhaps getting some of the profit from port fees?
1. I am not aware of any loans or contractual agreements that the DR has made or intends to make with China.
2. Who controls the ports and how money is made (subject) has a long history in the DR. Without way too many details, the most simplest manner money is made would be having the authority to raise hundreds of millions of dollars in bonds that are floated in the world market place.(Such as The Port of New York and New Jersey. )
All of the rest of the answers really don't belong here on this forum board.
 

windeguy

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1. I am not aware of any loans or contractual agreements that the DR has made or intends to make with China.
2. Who controls the ports and how money is made (subject) has a long history in the DR. Without way too many details, the most simplest manner money is made would be having the authority to raise hundreds of millions of dollars in bonds that are floated in the world market place.(Such as The Port of New York and New Jersey. )
All of the rest of the answers really don't belong here on this forum board.
The Dominican Republic has negotiated a US$600 million loan to upgrade power distribution with the China Export-Import Bank. Although no overall value has been placed on the level of Chinese support for the Dominican Republic, Reuters reported earlier this year that this could reach US$3.1bn though a package of investments and low interest loans. Speaking specifically about China’s Belt & Road Initiative, Dominican Republic President Medina said that the country “boasts one of the region’s most well-connected port networks, as well as a highly trained work force in production, transport and logistics.”

The Belt & Road MoU the Dominican Republic signed off with China has been reported by the Caribbean Council as including the construction of a mega-port and power installations in Manzanillo, on the north coast of the country, in addition to:

  • The creation of a mechanism for co-operation between the Export-Import Bank of China and the Ministry of Finance of the Dominican Republic which is expected to result in Chinese credits to support trade, investment and economic cooperation.
  • Strategic Cooperation between the Ministry of Finance of the Dominican Republic and the China Development Bank. The Bank, the world’s largest development finance institution, provides support for foreign investment, financing cooperation, and long-term lending.
  • An agreement on the development of human resources with China’s International Development Cooperation Agency. This is expected to provide technical assistance, training and other forms of support in order to advance strategic initiatives such as the Belt and Road Initiative.
  • Support for trade facilitation, economic development and increased cooperation for infrastructure development.
  • The establishment of sanitary and phytosanitary measures relating to trade in agricultural products particularly in relation to exports of tobacco leaf and tobacco products as well as rum and cacao.
  • Agricultural cooperation expected to lead to Chinese involvement in agriculture and fisheries in the Dominican Republic.
  • The establishment of the Joint Commission on Economic, Trade and Investment Cooperation.
  • The development of a plan to support education in the years 2018-2023 as well as others on cooperation in sports and baseball.
  • An agreement that will see the creation of training programs and university level exchanges on diplomatic and consular training.
  • The facilitation of group travel by Chinese tourists to the Dominican Republic which, according to Frank Rainieri of Grupo Puntacana who travelled to China as a part of a large business delegation accompanying the President, will result in the country receiving Chinese middle-class travelers.
  • An agreement on civilian aviation covering flights between the two countries.
Dominican President Medina also suggested that in China, Dominican enterprises could find a large consumer market for their tobacco, rum, pineapple, banana, cacao, blue amber and other high-quality Dominican products, and noted that several Chinese companies had either launched factories or set up offices in Santo Domingo in related to energy, telecommunications, mining and light industry. The Chinese Ambassador to the Dominican Republic also suggested that the country could become a promising destination for Chinese tourists.

According to the Dominican Republic’s National Statistics Office in 2017 China exported US$2.5 billion of goods to the Dominican Republic, but imported just US$145 million of goods, of which a significant part was scrap metal.

 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,215
826
113
Santiago de Los 30 Caballeros
Two questions, separate but related to ports since I am not aware how such businesses work in general:

1) China has provided various countries with loans to be able develop and improve their ports. Countries then default on the loans then and China keeps the ports. I see how this helps China in their global power grab. How would this help the DR?

2) Someone invests in the DR ports in a way that they are improved and still are controlled by Dominicans.
Let us say China does this in good faith. ( A stretch, I know)
This allows the flow of goods in and out of the DR to be improved. How does China (or any other country that would improve the ports in the DR benefit from the DR having better ports aside from perhaps getting some of the profit from port fees?


Unlike other infrastructure loans made to the countries as posted, China requires no guarantees other than the facilities themselves if the country fails to repay the Liana under the terms agreed.
The terms are sanctioned under international trade agreements and restrictions. They are also audited by third parties to confirm that they can be repaid as contracted if both sides follow the stipulations in the agreement.

The problem for developing countries and economies in development, comes at the point of corruption and financial mishandling of debt repayment priorities.

Money that was originated from the infrastructure themselves(part of the financial viability of the agreements as formulated) is redirected to fund other gov projects or outright stolen by corruption in the gobs.

Since all China has -as guarantees- is the infrastructure themselves as such, they take over operations of the project and under a third party accounting supervisory, continue the payments as fully agreed.

The bulk of infrastructure projects funded by other nations would require a guarantee in the form of gov debt that can be amortized in the private sector or via the IMF-WB and other schemes to force the countries to adopt austerity measures and/or fiscal reforms.

China belt and roads financing only focuses on debt repayment with direct control of financial operations. Port operations remains in the same setup of the one it operated under, but with Chinese overseers(managers).

The DR has a bigger potential on returns than anything China’s program can throw at it.
For the DR the belt and roads is Godsent.

More so now that corruption is being prosecuted vigorously, unlike months ago.

Each time the DR has invested into the port facilities, the returns have been magnified beyond the projections.
Much like Caucedo made a 180 for the country as a transshipment logistics hub after upgrades.

Puerto Plata would be a key point to that end as well as other ports in the DR.

China means biz, and soon to be the largest economy in the world, a priority for the DR to insert itself into their market.
 
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