T&T SHIPBUILDER & REPAIR NEWS
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ISSUE #018 – MARCH 2009.
T&T SHIPBUILDING & REPAIR (S&R) CLUSTER
Diversifying our Economy, one Ship at a time©... Hello S&R Stakeholders, Maritime Mentorship Programme 2009 The Government of Trinidad and Tobago, has once again requested our participation in this year’s programme, which intends to target some fifty (50) Mentees, between the ages of 15 and 17 years. Mentees will have the opportunity to visit domestic shipyard operations and would also receive presentations on good work ethics, including various Health, Safety and Environmental topics. This exciting maritime programme is being planned for the upcoming July / August period and aims to build industry awareness among participants. Fifth Summit of the Americas - Port of Spain 2009 Preparations continue apace for this major hemispheric event to be held next month. Dredging works by Royal Boskalis Westminster nv are nearing completion to deepen berths adjacent to the Hyatt Regency Trinidad, in order to safely satisfy additional accommodation needed aboard the two specially chartered cruise ships - “Carnival Victory” (built 2000) and the “Caribbean Princess” (built 2004). The Summit of the Americas to be held from April 17th - 19th is the only forum where the thirty-four (34) democratically-elected Heads of State in the Western Hemisphere meet to exchange ideas and opinions on the political, economic, social, and security challenges confronting the region and to develop a shared vision for the development of the hemisphere. We look forward to seeing you at the Summit of the Americas – Private Sector Forum to be held on April 15th - 16th 2009, onboard the “Caribbean Princess”. Sincerely, T&T Shipbuilding and Repair Cluster.
Wilfred de Gannes. Deputy Leader.
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T&T SHIPBUILDER & REPAIR NEWS ISSUE #018 – MARCH 2009.
GUYANESE SHIPWRECK HOLDS £2.6 BILLION TREASURE, EXPLORERS CLAIM
Salvagers claim to have found the world's richest wreck – a British ship sunk by a Nazi submarine off Guyana while laden with a £2.6 billion cargo that included gold, platinum and diamonds. In a project shrouded in secrecy, work is due to start on recovering the cargo, which was being transported to the United States to help pay for the Allied effort in the Second World War. The scale of the treasure trove is likely to unleash a series of competing claims from interested parties. Salvage laws are notoriously complex and experts say there could be many years of legal wrangling ahead. In order to protect its find until the cargo is brought to the surface, the company that located the wreck has not released the name of the vessel or its exact location, but has given the ship the code name "Blue Baron". It says the merchant ship, which had a predominantly British crew, had left a European port, laden with goods for the US Treasury under the Lend-Lease scheme, whereby the American government gave material support to the Allied war effort in exchange for payments. The Blue Baron first sailed to a port in South America, where it unloaded some general cargo, before continuing north in a convoy, heading for New York. However, the company claims it was intercepted by German U-boat U87 and sent to the bottom by two torpedoes in June 1942, with the loss of three crew members. Their nationalities are not known. Sub Sea Research, a US-based marine research and recovery firm, claims it has now located the wreck under 800ft of water about 40 miles off Guyana. A picture believed to be the Blue Baron shows it is a tramp steamer.
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ISSUE #018 – MARCH 2009. Greg Brooks, the company's founder and co-manager, said: "This British freighter had an extremely valuable cargo and we decided there wasn't a lot of point in leaving it at the bottom of the sea. This will definitely be the richest wreck ever." Until now, historians have not credited U87 with sinking any vessels in that area in June 1942 and it was thought to have been operating further north in the Atlantic. However, Sub Sea Research claims to have located the submarine's log book which prove it did sink the "Blue Baron", as well as documents from the port of origin, the US Treasury and the Lend-Lease programme giving clues as to what was on board. A picture of the Blue Baron supplied to The Sunday Telegraph by the company shows it is a tramp steamer and her funnel appears to resemble those of the shipping line Hogarth and Co, of Glasgow, whose ships were known as Hungry Hogarths. Tantalisingly, the names of its ships all began with the word Baron – indicating that the Blue Baron could be one of them. However, none of the fleet's 17 ships lost in the war appear to have been sunk in this area in June 1942. The picture also resembles “Port Nicholson”, a steamer sunk by U87 in June 1942 but 2,000 miles north of Guyana off Cape Cod. Sub Sea Research insists that the Port Nicholson is not the Blue Baron. It claims that the Blue Baron's cargo included at least ten tons of gold bullion, 70 tons of platinum, one a half tons of industrial diamonds and 16 million carats of gem quality diamonds. In addition, there were several thousands tons of tin and a few thousand tons of copper ingots. Although the tin and copper may have lost some value after years on the sea bed, the precious metals and diamonds would not have done so. The haul's total worth is calculated at £2.6 billion at today's prices, according to the firm. Captain Richard Woodman, author of The Real Cruel Sea, a history of the merchant navy in the Second World War, said: "A lot of merchant ships did have to carry valuable cargoes like this. Any heavy materials had to go by sea. It was the only way to get from A to B. There would have been an element of protection for them, but in the end it is just the coincidence of war that a ship happens to stop a torpedo." A 220ft salvage vessel is currently being equipped to recover the cargo. It is due to sail next week from the US state of Louisiana to the wreck site, which lies in international waters. Continued on Page 5
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ISSUE #018 – MARCH 2009. The company has refused to reveal which government sent the valuables to the US or which was the Blue Baron's final port of call in Europe. It is thought much of the treasure could be Russian, although part, including the diamonds, may have been British. Britain and Russia were the two main beneficiaries of the Lend-Lease scheme, under which the US provided $50 billion of supplies - equivalent to $700 billion (£510 billion) in today's money. Although explorers are permitted in law to stake claims on items they recover from the seabed, the original owners can make counter claims. Sub Sea Research was forced to go public with its discovery when it filed a claim on the treasure in a US federal admiralty court, to which no counter claims have been lodged so far. Mr Brooks said: "No one has stepped forward to make a claim yet, probably because the government that lost it does not realise. "We are trying to keep it as quiet as possible until we have it in our possession. We think the possessions on board may belong to more than one country. "I know for a fact that everyone possible will try to take it from us, but we are doing everything by the book. I think the worst case scenario, under salvage law, is that we would get 90 per cent of it. But we are trying to go for 100 per cent." Mike Williams, an expert in salvage law at Wolverhampton University, said the Government which had owned the cargo would retain a strong claim on it. He said: "Both Britain and Russia transhipped large quantities of precious goods to the US to pay for their war effort. It would be unlikely the salvors would be able to keep it all. "The real winners will be the lawyers. There is a marine lawyers' saying that treasure is trouble." ************************
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OFFSHORE OIL & GAS NEWS
VENEZUELA SEIZES ENSCO “RIG 69”
“Rig 69” (Built 1976) by Marathon LeTourneau Shipyard, Vicksburg, Mississippi.
Venezuela has seized ENSCO’s “Rig 69” (Built 1976) in a dispute over payment for services, a sign that tumbling oil prices have worsened the cash crunch at state-run PDVSA. The company said ENSCO had broken its contract by halting drilling at the offshore Petrosucre oil project that includes investment from Italy's ENI in a dispute over ENSCO's past work. PDVSA said Dallas-based ENSCO had earned $110 million from its work at the project, but did not say how much money ENSCO was owed or whether negotiations continue, according to a Reuters report. ENSCO was not immediately available to comment on the issue, but a company spokesman had previously confirmed it was struggling to receive payment from PDVSA. We, like others, are working through payment issues with PDVSA, the spokesman said. I won't comment on the state of operations ... The crew is still on board. PDVSA has built close to $8 billion in debts with providers and sources said in recent months it has skipped payments to partners and services companies as falling crude prices and heavy social spending have pinched its finances. The company has functioned for years as the financial engine for leftist President Hugo Chavez's self-styled revolution, as soaring commodities prices provided enough money for both social spending and industry operations. But the company has faced growing complaints from a broad array of providers about unpaid bills. A trade group representing oil service companies in the oil-rich Western state of Zulia made a rare public statement confirming local businesses were suffering heavy delays in receiving payments from PDVSA. ************************ Page 6 of 20
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MARITIME INDUSTRY EVENTS 2009
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MARITIME INDUSTRY EVENTS 2009
Leaders... have to be results-focused and opportunity-focused. Good intentions are no longer enough. Peter Drucker, Leader to Leader Page 8 of 20
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INTERNATIONAL NEWS Cochin Launches Small Ship Division - March 8th 2009 The newly commissioned small ship division (SSD) of India's government-owned Cochin Shipyard Ltd. (CSL) expects to generate annual revenues of Rs 5 billion ($99m). CSL has already built a number of platform supply vessels of the Rolls Royce UT-755-L design last year for customers including Norwegian offshore service supplier Deep Sea Supply and Greece's Hellespont Steamship. "Small ships hold out big promise, particularly since Oil & Natural Gas Corp and Shipping Corp of India would need several replacements in the near future for their offshore supply vessels," said CSL chairman and managing director M Jitendran. "We have decided to specialise in the construction of sophisticated offshore supply vessels, anchor handling tugs and other small craft of less than 2,000 dwt. We have 18 such vessels in our order-book."
Stage Set for First Gas From BPTT's “Savonette” Platform - March 6th 2009 First gas from BP Trinidad and Tobago's (BPTT's) “Savonette” platform is expected later this year. Trinidad Offshore Fabricators Unlimited (TOFCO), a joint venture company formed in 2003 with Chet Morrison Contractors of the United States and Weldfab Limited of Trinidad which completed the structure, its fourth consecutive platform for BPTT, last month. The BPTT “Savonette” deck module was delivered on February 3rd 2009, while the platform jacket, also built by TOFCO, was delivered on August 31st 2008. The “Savonette” platform was designed and built in Trinidad and Tobago. “Savonette” is capable of producing one billion cubic feet a day and will be tied into BPTT's “Mahogany B” platform. First gas from “Savonette” is expected by the end of 2009. With “Savonette” installed, BPTT now has a total of 12 offshore platforms. "The success of the “Savonette” project highlights the viability of the local platform fabrication industry," Robert Riley, bpTT Business Leader and CEO said. "When we took the decision to design and build Cannonball locally, one of our objectives was to ensure that there was a high level of local content." Locals accounted for about 77 percent of the “Savonette” project man-hours in 2008. Local content accounted for about 25 percent of total spend. The project progressed without any lost-time incidents. BPTT has operated for just over 9.3 million man-hours without a lost-time incident. Continued on Page 10 Page 9 of 20
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Caribbean Ministers Agree on Common Fishing Policy - February 20th 2009 The Caribbean Community and Common Market (CARICOM) has held a ministerial forum in which ministers came together for one day on January 16th to discuss common issues and find a compromise that could advance the stalled Common Fishing Policy and Regime (CFP&R) process. The ministers have agreed to take a two-phase approach to establish the common policy and then to build a common regime out of this eventually. The ministers have also agreed to adopt a proposal put forward by the Caribbean Regional Fisherfolk Network to set up a representative body for fishermen in the region to make policy decisions at state and regional levels.
India to Revive Subsidy Scheme For Shipbuilding - February 19th 2009 The government of India is all set to revive the subsidy scheme for shipbuilding companies such as ABG Shipyard, Bharati Shipyard, Hindustan Shipyard and Pipavav Shipyard, where a part of the cost of manufacturing the ship is reimbursed at the point of sale. The finance ministry has also agreed to release the pending subsidy amount to shipbuilding companies under the scheme, which lapsed on August 15th, 2007, amounting to nearly Rs 5,000 crore, a government official said. Shipbuilding companies in the private sector got very little subsidy under the scheme, added the source. According to an industry estimate, the domestic shipyards currently have an order book of Rs 22,000 crore compared with an order of just Rs 816 crore in 2002. In a bid to promote the domestic shipbuilding industry, the government has extended the subsidy scheme to private shipbuilding companies.
World Shipping Tonnage Capacity hits 1.12 Billion dwt - February 12th 2009 THE world merchant fleet increased astronomically between 2007 and 2008, according to the review of maritime transport by the United Nation Conference on Trade and Development (UNCTAD). According to the United Nations trade organ, the world merchant fleet expanded by 7.2 per cent in 2007 to 1.12 billion deadweight tonnes (dwt) at the beginning of 2008. By that percentage increase, the organisation said there was a gain of 82 million dwt over the corresponding period of previous year. The organisation attributed the increase to the historical high demand for shipping capacity that was responded to by the world shipping industry by ordering new tonnage, especially in the dry bulk sector.
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AUSTAL WINS US DEFENCE JHSV CONTRACT
Potential US$1.6 billion Shipbuilding Programme Largest in Austal’s History
Austal has won the contract to design and build the US Department of Defence’s next generation multi-use platform, the Joint High Speed Vessel (JHSV), as part of a program potentially worth over US$1.6 billion. As Prime contractor, Austal will design and construct the first 103-metre JHSV, with options for 9 additional vessels expected to be exercised between FY09 and FY13. Similar to the Austal-built “WestPac Express” operated by the US Marines for the past seven years, the JHSV will be capable of transporting troops and their equipment, supporting humanitarian relief efforts, operating in shallow waters and reaching speeds in excess of 35 knots fully loaded. The vessels will be a joint-use platform operated by both the United States Army and Navy. Austal Managing Director Bob Browning said, Being selected as Prime contractor for a major US Department of Defence shipbuilding program demonstrates Austal’s capabilities as a defence supplier. Austal is very proud to have been selected to build an important part of the US Navy’s fleet. This 10 vessel program is an important step in Austal's strategy to create longer-term, more predictable earnings for our investors. Continued on Page 12
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The vessels will be built at Austal’s US shipyard located in Mobile, Alabama, where work is continuing on the first phase of a new state-of-the-art Facility.
Upon completion in mid-2009, the first half of the 70,000 m2 MMF will be available for the fabrication of all JHSV modules. Austal USA’s 1000-strong workforce, which is currently completing the US Navy’s 127 metre Littoral Combat Ship “Independence” (LCS 2), as well as a 113 metre high speed catamaran for Hawaii Superferry, will grow to more than 1500 as a result of the JHSV programme. “As demonstrated by the two Hawaii Superferry vessels recently constructed at our Mobile, Alabama facilities, our US shipyard has the capability to deliver large high speed advanced aluminium platforms on time and on budget - a capability which will be further enhanced upon completion of the MMF and the expansion of our US workforce,” Mr Browning said. Sea trials of the recently-christened “Independence” (LCS 2) are scheduled to commence early next year. Mr Browning said the US Navy’s ongoing commitment to a 55-vessel LCS program, as part of its 313 ship fleet, meant there was strong chance Austal would be awarded a second LCS in early 2009. Austal Chairman John Rothwell said successfully bidding as Prime contractor for the JHSV programme was a fantastic result for the company, which had taken significant steps towards advancing its standing as a defence supplier. Austal’s US Defence security clearance was an important factor in winning this contract along with the success of “WestPac Express”, which has been successfully serving with the US Marines in Okinawa, Japan for more than seven years, Mr. Rothwell said. ************************ Page 12 of 20
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Green Assist™ HYBRID TUG The hybrid technology used to develop Foss’ Green Assist™ Hybrid Tug is environmentally responsible—without sacrificing horsepower or maneuverability. With its efficient combination of batteries, generators and main engines, the Green Assist™ Hybrid Tug is both powerful and green.
The Green Assist™ Hybrid Tug reduces nitrogen oxide, particulate emissions, sulfur dioxide, and carbon emissions without sacrificing power or maneuverability.
The Green Assist™ Hybrid Tug is expected to significantly reduce emissions compared with the operating duty cycle of the conventional Dolphin tugs in San Pedro Harbor, including a reduction in nitrogen oxide, particulate emissions, sulfur dioxide and carbon emissions. This exceeds the EPA’s Tier 2 emissions requirement for marine engines. This tug design was awarded the EPA’s Clean Air Excellence Award for Clean Air Technology in 2008. Foss unveiled the hybrid tug, at a welcoming ceremony at the Port of Long Beach. The quiet, 78-foot tug carries all the punch of its counterparts without the environmental price tag. Tugboats spend most of their time sitting around idling, and while they're idling, they're sending diesel (soot) into the air. said Foss engineer Jerry Allen during a visit to the boat's engine room. This tug doesn't consume diesel during down time, so you're having no (ecological) impact there and it's emitting much less during routine operations. Continued on Page 14 Page 13 of 20
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ISSUE #018 – MARCH 2009. Externally, the $9 million “Carolyn Dorothy” - named after a Foss executive's wife - looks like any other tug. It's the things inside the ship that are different.
The flexible hybrid technology can be used to convert existing tugs of all types to hybrid vessels with lower emissions, improved fuel economy and lower maintenance costs.
A visit to the high-tech engine rooms finds twin 1,800 horsepower diesel engines, a 600 horsepower battery pack and two 1,200 horsepower generator sets powering the muscular boat. For the uninitiated, that's enough power to rival any competitor in San Pedro Bay. But unlike its rivals, it emits roughly half the emissions, including significantly less diesel particulates, which can lodge in workers' lungs and cause cancer, said Henry Hogo, an airquality specialist with the South Coast Air Quality Management District. And because it can plug into an electrical outlet while docked, operators are able to recharge the ship's 126 12-volt batteries during down time, Allen said. Built during the past year at Foss' Rainier, Ore., shipyard, the Carolyn Dorothy is the source of much hope and pride among port authorities in Long Beach and Los Angeles, who together kicked in $1.3 million to fund its development. "This proves the technology works in this application," said Port of Long Beach Harbor Commissioner Mario Cordero. "We think it serves as a template for future (green) growth." Foss has agreed to operate the tug exclusively in Long Beach-Los Angeles through 2013.
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SCOTTISH INITIATIVE TO ATTRACT RECRUITS INTO SHIPBUILDING Scottish Enterprise has launched a three-year campaign to boost the number of new recruits entering the shipbuilding and engineering industry in Scotland.
The economic development organisation is bidding to attract more than 1000 people to work on the £3.9 billion Royal Navy Future Aircraft Carrier project. The contract, which is to build two new aircraft carriers, will see Scottish engineers construct the largest ships to ever enter service with the Royal Navy; HMS Queen Elizabeth and HMS Prince of Wales. According to official government statistics, the UK shipbuilding industry in 2006 employed 23,500 people, 23 per cent (5400) of which are employed in Scotland. The campaign aims to help boost both the existing workforce and to replace those retiring from it - while at the same time seeking to encourage more people into engineering at all levels of expertise. Engineers will continue to be required for many Scottish industries in the future and the training provided by shipbuilding is considered a strong foundation. Scotland is the acknowledged centre of excellence for complex warship construction and repair, building for both the domestic and export markets in the yards. Most of the potential jobs, with employers such as BVT Surface Fleet and Babcock Marine, will be on the Clyde and at Rosyth. The £525,000 marketing and social media campaign includes a new website, radio adverts and promotions, online social networking and schools packs. Jim Mather, Minister for Enterprise, Energy and Tourism, said: “Scotland is a significant player in the shipbuilding and marine industry and this campaign will drive the development of a new skilled workforce capable of serving the future needs of the industry in Scotland. Along with the extended contracts that we have seen with the Royal Navy Aircraft Carriers, this campaign will build on the current quality and expertise that the Scottish shipyards hold. “In the current economic climate, campaigns such as this demonstrate Scotland’s determination to continue expanding our role in the market. Scotland will not simply sit back and wait for things to get better, and this is a key example of innovative marketing to broaden our businesses, grow our industries and most importantly, create more jobs in Scotland.” Ian McMahon, head of the Aerospace, Defence and Marine team at Scottish Enterprise said: The shipbuilding industry is a growing and vibrant business, which is welcome news in what is currently a climate of economic uncertainty.
“However, we need to ensure that we retain the vital skills that make Scotland the leading centre for high-technology warship construction and repair and it is through initiatives such as ‘The Future is Ship-Shape’ campaign that we aim to do so. It is now that we must take steps to sustain our industry for the future. It’s a great example of industry and government working Page 15 of 20
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together to secure and grow an important trade for Scotland - and to create a workforce able to serve the engineering industry in the long term. “With the Future Aircraft Carrier project on the immediate horizon and more ships in the pipeline, ship building yards are gearing up for the future. There has never been a better time to launch a campaign to recruit and train engineers to meet the demands that this will bring.” John Howie, managing director – Warships, Babcock Marine, said: “We are delighted to support this initiative which raises the profile of engineering in Scotland. We hope that the significant investment being made will encourage a greater understanding on all aspects of engineering, supporting organisations like Babcock, who wish to attract Scotland’s brightest talent into what is already an exciting and innovative industry.” Clyde built has Jim McHarg, head of Employee Development at BVT Surface Fleet, said: the reputation for being the best in the world and BVT is committed to ensuring that more people have the opportunity to develop their skills and learn a trade as part of this industry. BVT is delighted to support this Scottish Enterprise initiative and I hope that it will encourage more people to consider a career in our industry. ************************
MY FAVORITE MARITIME MOVIE
Poseidon (2006) Rating 5.6/10
In the northern Atlantic Ocean, the Ocean Liner “Poseidon”, named for the Greek god of water, is sailing through the ocean. It is New Year's Eve, and over 2,000 passengers & crew are ringing in the New Year aboard this huge cruise ship. Meanwhile, in the pilot room, we see the officer in charge get a feeling that "Something's off," when the instruments suddenly detect a HUGE 150-foot tall, tidal wave coming towards the ship. The officer on the bridge puts in an order to turn hard to starboard in order to avoid a direct hit, but it doesn't matter. http://www.youtube.com/watch?v=Gs1IanflCGc
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MARITIME INDUSTRY WEB LINKS ALSTONS SHIPPING LIMITED - www.alstonsshipping.com/ AUSTAL - www.austal.com/ BP - www.bp.com/ CANTREX ALUMINIUM - www.cantrexaluminium.com/ CATERPILLAR LOCAL DEALERSHIP - www.tracmac.com/ COCHIN SHIPYARD LTD – www.cochinshipyard.com/ CONRADO BEACH RESORT LIMITED – www.conradotobago.com/ ENGINE TECH CO. LIMITED - www.man-mec.com/ ENSCO - www.enscointernational.com/ FIFTH SUMMIT OF THE AMERICAS - www.fifthsummitoftheamericas.org/ FOSS - www.foss.com/ GAC - ALSTONS - www.gacworld.com/ HYATT REGENCY TRINIDAD - www.trinidad.hyatt.com/ PETRÓLEOS DE VENEZUELA, S.A. (PDVSA) - www.pdvsa.com/ PRESSURE CONCRETE PLUS - www.pressureconcreteplus.com/ MINISTRY OF TRADE & INDUSTRY - www.tradeind.gov.tt/ PRESSURE CONCRETE PLUS - www.pressureconcreteplus.com/ ROYAL BOSKALIS WESTMINSTER NV - www.boskalis.com/ ROYAL NAVY - www.royalnavy.mod.uk/ SCOTTISH ENTERPRISE - www.scottish-enterprise.com/ SUB SEA RESEARCH - www.subsearesearch.com/ THE PHI GROUP - www.phigroup.net UNIVERSITY OF WOLVERHAMPTON - www.wlv.ac.uk/ ************************ Blue highlighted links indicate additional websites added in this month’s newsletter. Red highlighted links indicate Advertisers for the current issue. Page 17 of 20
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CONTACT INFORMATION Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: (868) 753 - 6057 Fax: (868) 662 - 6326 E-mail: degstt@hotmail.com Website: www.tts-r.com ************************
FOR YOUR INFORMATION
NEW MINISTER OF TRADE AND INDUSTRY Senator The Honourable Mariano Browne - Minister in the Ministry of Finance who also chairs the Cabinet Committee overseeing the Fifth Summit of the Americas, has been appointed the new T&T Minister of Trade and Industry. His additional responsibilities at the Ministry of Trade and Industry comes at a time when trade and economic diversification is expected to take on increasing significance, especially in light of the global meltdown. He replaces Minister The Hon. Dr. Lenny Saith, who continues in his role as Minister in the Office of the Prime Minister, where he leads various Cabinet Committees. http://www.trinidadexpress.com/index.pl/article_news?id=161449709
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