The Inter-American Development Bank (IDB)-Invest and John Fernandes Limited on Tuesday signed a US$4 million corporate loan agreement for the procurement of Guyana’s second mobile handline crane (MHC).
The transaction allows for an increase in the quantity of international cargo handled at the port facilities operated by John Fernandes Limited.
The IDB noted that currently, all port operations in Guyana rely on crane vessels for loading and discharging containers and that these are less efficient and have less cargo handling capacity than an MHC.
As such, with the incorporation of the MHC, JFL would be able to service gearless vessels that can carry a substantially greater amount of cargo and do so more efficiently due to the MHC’s ability to load and discharge containers at a higher rate.
Speaking during the ceremony, Dr. Singh expressed his appreciation to IDB-Invest for showing commitment in investing in this private sector project which not only allows for development of port facilities generally in the country but is also a sign that the financial institution is showing serious interest in quickly and aggressively assisting in Guyana’s development in more ways than one.
He recalled that it was the same institution that, only in October, signed a similar loan agreement of the same cost with Muneshwers Limited for the procurement of Guyana’s first mobile crane.
He therefore commended both John Fernandes’ Chief Executive Officer (CEO) Philip Fernandes and the IDB Group’s Country Representative acting, Lorena Solorzano Salazar for the fast pace at which the agreement was finalised.
According to the IDB, the transaction will not only support increased cargo handling capacity from the current 33 thousand twenty-foot equivalent unit (“TEUs”) containers per year to 100 thousand TEUs per year in 2032 but also improve the port infrastructure in Guyana and contribute to timely and efficient handling of rising international commerce in the country.
IDB Invest is the private sector arm of the IDB. Its aim is to advance economic development and improve lives by encouraging the growth of the private sector. It offers an array of investment opportunities and provides its clients with customized financing solutions and expert advice, tailored to their specific industry and market.
Last month, during his year-end inspection of GRA’s operations at wharves, Minister Singh highlighted that clearance of consignments would further be improved with the addition of two mobile cranes to be operated by John Fernandes Limited and Muneshwers as he alluded to this modern crane now being procured by John Fernandes through the above loan agreement as well as referenced the earlier one procured by Muneshwers .
“These pieces of equipment will form part of the further modernization of operations at the wharves,” Dr. Singh had said then. (Ministry of Finance press release)
