Saint Lucia Set To Embrace Electric Vehicles by STAR Publishing

THE STAR BUSINESSWEEK FEBRUARY 1, 2020

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SAINT LUCIA SET TO EMBRACE ELECTRIC VEHICLES It’s unlikely that Saint Lucians will ever see Elon Musk cruising around Castries in a Tesla, but electric vehicles will be making their way onto the island’s roads in the near future under a new US$ 33mn initiative that aims to transform transportation.

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT Continued on page 4

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Cruising into 2020: What’s ahead for the Giants of the Seas 2020 will be another year of smooth sailing for the cruise industry as an estimated 32 million passengers take to the seas. As the sector soars, leading players are making their mark with innovative environmental practices, robust competition from new markets and bigger and better ships. Page 3

Royal Caribbean’s Allure of the Seas is one of many ships undergoing refurbishment this year (Photo courtesy Royal Caribbean)

Small Islands in the International Arena The post-war liberal order is in a testing time. Global organisations like the UN have always had to navigate the turbulent waters of the international community but governments it once relied on for its greatest support are now giving voice to some of its strongest detractors. Page 5

The Cayman Islands, Barbados and Bermuda have already begun EV initiatives within the public and private sectors. How does Saint Lucia plan on overcoming the hurdles to electric vehicle adoption like recharging, taxation and vested interests?

With 39 SIDS around the world, how well are they working together? Pictured: The island of Barbuda — Hurricane Irma was 378 miles wide and near the peak of its intensity as a Category 5 hurricane when it made landfall and tore into the 62-square-mile island on the night of September 5/6 2017.

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INTERNATIONAL RELATIONS

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In 2019 Saint Lucia received over 400,000 stayover visitors for the first time ever. 2019 Stayover Arrivals

423,736

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BARBADOS STARTS DIPLOMATIC RELATIONS WITH TWO FAR-FLUNG COUNTRIES BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

Up by 7.3%

Pictured: Minsk, the capital of Belarus. What does Barbados’ decision to establish diplomatic relations with this Eastern European nation and the Asian nation of Cambodia reveal about the state of the international community in 2020?

arlier this month Barbados announced the establishment of diplomatic relations with the Asian Kingdom of Cambodia and the European nation of Belarus. Beyond the standard press releases and signing ceremonies that always accompany such developments, this news is another chapter in the pursuit of a foreign policy that has seen the country of around 290,000 build a global identity that defies its comparatively small size. But with all respect to the work done by each nation’s diplomats, members of the Caribbean family could be forgiven for wondering how critical and significant these new relations will be to Barbados. Let’s look now, with consideration of Barbados’ goal and that of similar Caribbean islands.

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BARBADOS OVERVIEW These three nations start new relations with a mixed bag of economic performances. At present time Barbados has economic challenges similar to other Latin American countries. Bridgetown needs to continue taking proactive reforms that enhance the ease of doing business. That said, while recent economic forecasts have been timid, the nation has made strong progress with the Barbados Economic Recovery and Transformation (BERT) programme and the extended fund facility (EFF) arrangement with the IMF, meaning the groundwork is in place for a stronger future.

For Belarus, its fate and fortunes remain closely tied to its association with Moscow. Russia, faced with sanctions, experienced slow economic growth in 2019 which had a knock-on effect with that of Belarus. Just the same, although progress has been made on reforms in partnership with the IMF, recent years have seen criticism that the speed and scope of them is not sufficient to meet growth targets. Cambodia, by contrast, has been one of the great economic success stories of recent decades. Between 1998 and 2018 it enjoyed an average growth rate of 8%, winning it a place among the fastest growing economies in the world. In turn, its poverty rate has been rapidly falling: in 2007 in was 47.8 per cent but by 2014 it had shrunk to 13.5 per cent. Beyond the potential for new trade and other exchanges, the establishment of diplomatic relations between Barbados and these two nations signifies that the old era of prioritising regional engagement, to the exclusion of others elsewhere, continues to shrink. For Barbados, this new dynamic is one its history shows has long been in the making.

BARBADOS’ LONGSTANDING ASPIRATIONS In addressing the United Nations in December 1966, the then prime minister of Barbados, the Right Excellent Errol Walton Barrow, outlined his vision for the nation’s place in the international community; a vision that would go on to be a guiding star of its foreign policy approach ever since. Barrow said, Continued on page 6

CRUISE INDUSTRY

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FEBRUARY 1, 2020

CRUISING INTO 2020: WHAT’S AHEAD FOR THE GIANTS OF THE SEAS BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

020 will be another year of smooth sailing for the cruise industry as an estimated 32 million passengers take to the seas. As the sector soars, leading players are making their mark with innovative environmental practices, robust competition from new markets and bigger and better ships.

GOING GREENER Long labelled as the polluters of the seas, 2020 is the year cruise ships try to clean up their image. The industry is spending US$ 22bn to develop new energy-efficient technologies, according to the Cruise Lines International Association (CLIA), and is moving aggressively to hit its goal of a 40 per cent reduction in carbon emissions by 2030, compared to those recorded in 2008. There are 25 new ships entering service this year, according to the 2020 Cruise Industry News Annual Report, and the largest of these is the Carnival Mardi Gras which is remarkable not just for its size but also its environmental features. The Mardi Gras, which can hold 5,200 passengers and will sail a Caribbean itinerary, will run on Liquefied Natural Gas (LNG) known as the world’s cleanest fossil fuel as it produces virtually zero sulphur and particulate emissions. When it debuts in November, the Mardi Gras will become the first North American cruise ship powered by LNG and Carnival expects to roll out a second in 2022. Other green innovations going mainstream among cruisers this year include more sophisticated exhaust gas cleaning systems and wastewater treatment as well as increased recycling, more efficient lighting and more use of solar energy. REFURBS AND REFITS While huge vessels will be meandering the oceans this year,

Carnival’s biggest and newest ship, the Mardi Gras, is set to debut in November 2020 (Photo courtesy Carnival Corporation)

many others are heading into dry-dock – itself a US$ 3bn a year business, according to Cruise Industry News. Cruise vessels generally have a 30-year lifespan and, over the course of those three decades, need continual maintenance, repair and refits. Many companies also attempt to breathe new life into old ships with a complete transformation. Big projects on the agenda for 2020 include the overhaul of the Carnival Victory into the 3,873-passenger Carnival Radiance. This US$ 200mn facelift will feature new dining options, more sporting activities, 115 new guest suites and staterooms and a Caribbean itinerary beginning April 2020. Rival Royal Caribbean is also putting a favourite ship under the knife in spring with a US$ 165mn refurb of the Allure of the Seas. Following a 58-day dry-dock, the ship is expected to debut in May. Rounding out the top three biggest refurbs of the year, according to Cruise Industry News, is the US$ 100mn redesign of the Norwegian Spirit which will be updated to feature 14 new venues, added staterooms and a bigger spa facility.

NEW MARKETS AND NEW BRANDS The Caribbean is expected to continue dominating the market this year with CLIA predicting it will take a 32 per cent share of the worldwide business. New markets are coming onstream, however, as competition heats up around the world. New entrants China and India will continue to gain a small but significant foothold in the industry, each taking a 5 per cent share in 2020. At the end of 2019 the China Ocean Shipping Company partnered with China Travel Services Group to launch Astro Ocean – the first luxury Chinese cruise brand. Astro Ocean is also currently constructing the first Chinese-built cruise ship in Shanghai. India’s newest and biggest cruise firm, Jalesh Cruises, is also optimistic about the growing demand and is set to introduce its second ship in October, following the successful launch of its first offering, the Karnika, in April 2019. In the established markets, new brands are coming onto the scene. Attempting to capture some of the high-value,

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luxury niche, the Ritz-Carlton Yacht Collection is now taking bookings for its 2020 and 2021 seasons aboard its fleet of super-yachts, capable of hosting just under 300 passengers in a range of suites with custom interiors. The first vessel, the Evrima, will offer sailings to Caribbean ports including Saint Lucia. Virgin Voyages is also eyeing the luxury niche as the travel giant makes its first foray into cruising with the launch of Scarlet Lady. Set to sail in spring 2020, the ship’s inaugural itinerary will be in the Caribbean and, clearly confident of success, Virgin has another four ships on order. STAR Businessweek previously wrote (November 30, 2019) on Virgin’s entrance to the market in ‘Can Virgin Shake Up The Cruise Industry?’

ONSHORE INVESTMENTS The cruise industry isn’t just investing in ships, it’s also been turning its attention to port infrastructure in recent years, and 2020 will be no exception. In October Saint Lucia’s government signed a memorandum with Royal Caribbean and Carnival to manage the current cruise facilities in Castries and design, construct and manage a new port in Vieux Fort. The joint venture is just one of many such agreements around the region as cruise companies look to improve infrastructure, gain greater control over their hubs and purchase land for their own private islands. Although progress was halted somewhat by Hurricane Dorian, Carnival remains committed to developing a new port in Grand Bahama in 2020 while Royal Caribbean begins construction of its new two-storey terminal in Galveston in April. Private island destinations continue to be a moneymaker for cruise companies. Royal Caribbean’s CocoCay, which opened in the Bahamas in 2019, expects to welcome 2 million guests in 2020 – double its 2019 arrivals. Newcomer Virgin Voyages has already lined up a private destination for its first ship, Scarlet Lady, which will dock at the Beach Club at Bimini, a sevenmile island in the Bahamian SBW archipelago.

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ELECTRIC VEHICLES

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SAINT LUCIA SET TO EMBRACE ELECTRIC VEHICLES Continued from page 1

he Global E-Mobility Program hopes to introduce a small fleet of electric buses to routes around Saint Lucia’s urban areas by 2024 – eventually paving the way for more public and private ownership of the innovative vehicles. The fouryear project is an international and regional partnership, implemented by the United Nations Environment Programme, financed by the Global Environment Facility (GEF) and delivered by Saint Lucia’s Ministry of Sustainable Development, Energy, Science and Technology. Saint Lucia is one of only three Caribbean nations participating in the 17-country scheme, joining Jamaica and Antigua and Barbuda in blazing a trail for the region and hopefully acting as a template for cleaner transportation in developing countries around the world.

NEXT GEN TRANSPORT First produced in 1838, electric vehicles (EVs) actually pre-date the standard internal combustion engine cars we’re familiar with today. However, EVs were pushed to the sidelines in the early years of the 20th century as combustion engines were commercialised. Advances in technology, combined with a growing appreciation of their environmental credentials, are bringing EVs back into the mainstream. According to the European Environment Agency, EVs will represent more than 60 per cent of new sales by 2050 and comprise a quarter of global vehicles. EVs produce zero tailpipe emissions, thereby reducing air pollution and improving air quality. They are also 60-80 per cent more energy efficient than their fossil fuel-burning counterparts. Given the Caribbean’s potentially ruinous reliance on fossil fuels, EVs seem a perfect fit for islands struggling to develop a greener transportation infrastructure. The technology should not be considered a climate cure-all, however. While EVs do not produce the same level of emissions as fuel-burning cars, they still run on electricity and are therefore still part of the same problematic energy generation system. “Electric vehicles are only as good and as clean as the electric grid,” explains Filippo Berardi, Senior Climate Change Specialist at GEF. “The transformation and decarbonisation of the transportation system will have to go hand in hand with the de-carbonisation of electricity generation.” Berardi believes that the Caribbean is already making strides in this

Saint Lucia will look at developing a network of charging stations to facilitate electric vehicles

GEF Senior Climate Change Specialist Filippo Berardi (Photo courtesy Filippo Berardi)

area and says electric vehicles are the next logical step in a region that has already embraced renewables such as solar and geothermal power. “We have seen a lot of interest in e-mobility from small islands like Saint Lucia, and I do not think that is surprising. In an island setting it is even more important to reduce the need for fuel imports, have a more reliable supply of electricity and improve the air quality. All these environmental goals need to be considered together. Islands have an abundance of renewable energy resources available and the cost of fossil fuel imports is probably their biggest public expense, which is carried into the high cost of energy. Renewables like geothermal and solar just make sense

and, once you start, there is no turning back. There are still a lot of challenges around them, but that is something we have handed to the private sector for them to continue. We are moving on to the next frontier which we think is transformation of transport. “The sooner you start greening your fleet, the sooner you can start taking advantage of renewable resources on the generation side. We need to take a holistic approach to de-carbonisation. It is two sides of the same coin.”

A NEW TRANSPORT ROADMAP GEF is committed to helping countries map out this holistic approach. The initial stages of Saint Lucia’s e-mobility project involve assessing its economic viability,

and developing a regulatory policy and financial models. Stakeholders will be supported along the way by both a regional platform and global thematic working groups looking at topics such as how to safely dispose of the lithium-ion batteries used in EVs, integration with the national grid and creating a network of charging stations. “Providing that framework and technical and financial input is the main nature of this initiative,” says Berardi. “There is a lot to learn from sharing experiences between different countries. We have a global component that provides an umbrella framework for all of the different national projects, each of which is tailored to the national circumstances to recognise the different countries’ starting points. We are really looking to create a platform where we can leverage the different experiences and provide tailor-made, locally scalable solutions. We are hoping to replicate lessons learned.” In Saint Lucia, as in most developing countries, the policymakers are starting with a blank slate and first have to reframe the image that this is a niche sector, only accessible in wealthier jurisdictions. Berardi says: “Electric vehicles generally do not exist in the Caribbean. We try to support the public sector side on how you go about developing this market from scratch. This programme is reliant on a good dose of public action, as well as good planning when it comes to developing the supporting infrastructure. We always start with public transportation. That is the low-hanging fruit. The idea is that electric does not have to be seen as something that is only for the rich.” One of the biggest hurdles for any government addressing its transportation shortfalls is cost. Electric vehicles are more economical over the long-term but the upfront costs are higher and Berardi would like to see commercial banks and financial institutions chipping in to cover the pricing gap, saying: “We are laying the foundation for something that will require much more funding. We would like to see financial institutions being aware of the opportunities and start introducing products [for those opportunities].” In the meantime, government is looking at fiscal incentives – taxing imports of internal combustion engine cars and reducing the cost of energy overall as it explores renewable sources. Berardi is hopeful that, by 2024, Saint Lucia will have a “clear roadmap and a clear path to follow”, one that can inspire other Eastern Caribbean nations as developed and developing countries alike embrace a greener future. “Experiences from Saint Lucia will be hopefully valuable from a financial and economic viability model for the entire Caribbean. At some point, you have to start the transition [to clean energy] anyway so future proofing your transportation sector is going to be necessary.”

SMALL ISLAND DEVELOPING STATES

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FEBRUARY 1, 2020

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SMALL ISLANDS IN THE INTERNATIONAL ARENA BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

he post-war liberal order is in a testing time. Global organisations like the UN have always had to navigate the turbulent waters of the international community but governments it once relied on for its greatest support are now giving voice to some of its strongest detractors. For Small Island Developing States (SIDS), the return of great power politics to the international arena has renewed their need to work more closely together, both to meet shared national goals and support the very future of SIDS as an entity in a world where borderless challenges, like climate change, threaten it.

THE TEMPTATION TO TURN BACK In 2020 many nations are flirting with protectionism and isolationism in a way not seen since the early years of the 20th century. There may be members of the public in the Caribbean who are considering whether their government should also travel this path, and opt for a step back from bilateral and multilateral relations. However, SIDS who follow this path do so at their own peril. Recent years have confirmed in the minds of many that the post-war consensus on free trade requires reassessment. Furthermore, the legacy of this fallout is seen not only in trade inequity, but in many SIDS being the most vulnerable to the growing threat of climate change. This problem is not primarily caused by small island states who, collectively, are responsible for less than 1 per cent of global greenhouse gas emissions, but by the nations that rank among the world’s largest in economic power and population size. SIDS are amongst the highest ranked countries in the Global Climate Risk Index 2019, an annual risk index published by GermanWatch which “analyses to what extent countries and regions have been affected by the impacts of weather-related loss events (storms, floods, heat waves etc.)”. It is why the collective work of SIDS is mostly engaged in combatting climate change. SPEAKING A COMMON LANGUAGE For a region like the Caribbean, with over two dozen states and more than 7,000 islands, the realities of geography mean history was never likely to deliver a situation where a sole authority (or select few) would be in a position to speak exclusively

“Our extinction is imminent. The climate crisis has taken away from us the ability to control our own destiny,” Prime Minister Chastanet told a gathering of the trade and international community at the United Nations Trade Forum in September 2019. To mobilize the required billions to help SIDS survive the climate emergency, Mr. Chastanet called for both a revisioning of the classification of SIDS using a vulnerability index, and a type of Marshall Plan

for the many. Similar dynamics exist in other areas of the world with SIDS. This is in contrast to the United States where a population well in excess of 300 million exists under one federal government; or the North American Free Trade Agreement (NAFTA) operating via the ascent of Washington DC, Ottawa and Mexico City. A nation of hundreds of millions, or billions, may think it can ‘go it alone’ but, for the population of around just 1,269 on the South Pacific island of Niue, ongoing engagement with other SIDS, and the wider international community, is critical. Engagement via international organisations such as the UN offers small nation states equal power in voting and other areas of national expression that make it irrelevant whether a country has 100,000 or a billion citizens. Nonetheless, the power of an individual small nation is enhanced by collective action with other SIDS. The advent of the Small Island Developing States Partnership Framework is a key example of this.

SMALL ISLAND DEVELOPING STATES PARTNERSHIP FRAMEWORK As a result of the establishment of the Partnership Framework, following the

2014 Third International Conference on SIDS, SIDS around the world have seen over 260 new partnerships formed. As of 2018 it was also clear that the priority areas of the SAMOA pathway that seeks, among other goals, to assist nations in the pursuit of sustainable development by enhancing food security

SIDS are amongst the highest ranked countries in the Global Climate Risk Index 2019, an annual risk index published by GermanWatch which “analyses to what extent countries and regions have been affected by the impacts of weatherrelated loss events (storms, floods, heat waves etc.)”

and implementing disaster risk reduction, had achieved much success. The efforts of governments to legislate at a national level to meet Sustainable Development Goals has also been a bright spot. That said, it hasn’t been all sunshine and roses. The success has been uneven, and some goals of SAMOA, such as combatting climate change, require a lot more work globally. The 10-year plan received a mid-term review in September 2019, and with it Saint Lucian Prime Minister Allen Chastanet declared the very existence of SIDS to be under threat unless more collective progress on previously agreed goals isn’t made. A key aim of the Framework is to see greater engagement across SIDS by the private sector, civil society and academia alike, but so far it is civil society that has been leading the charge. By no means would one decry the work of SIDS diplomats and other civil officials in delivering on their targets but said leaders have a dual need: to advance their own engagement plus spearhead that of the private sector and academia. Consequently, this goal remains SBW one yet to be attained.

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INTERNATIONAL RELATIONS

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BARBADOS STARTS DIPLOMATIC RELATIONS WITH TWO FAR-FLUNG COUNTRIES Continued from page 2

“The people of Barbados do not draw a dividing line between their internal affairs and their foreign policy,” and “. . . we will support genuine efforts at world peace because our society is stable.” Also: “We will strenuously assist the uprooting of vestigial imperialisms because our institutions are free.” Although the face of the region in 2020 is very different from that of the post-colonial era of 1966, many in the Caribbean family feel the diminishment of the “vestigial imperialisms” that Barrow decried, have never been totally removed; and indeed, where they have, they threaten to arise once more. It’s why Barrow’s summation of Barbados’ position over five decades ago remains vivid and relevant to the goals of Barbados and surrounding Caribbean nations today: “We are friends of all, satellites of none.” This new strategy is also one that recognises the substantial fractures that have emerged within a number of Barbados’ traditional relationships in recent years. As Invest Barbados noted, “The Government has taken the view that it must enter into new relationships with like-minded countries, seek increased opportunities for trade and business, and consider where tourism markets can be opened or existing markets expanded. This effort is regarded as of particular importance in a global climate in which traditional friendships can no longer be taken for granted and there is a clearly shifting geopolitical landscape characterised by greater national insularity amongst large developed countries.”

GROWING THE NEIGHBOURHOOD Admiring inspirational speeches and aspirations for an international community where collaboration prevails is one thing; recognising the brutal reality that ‘might makes right’ politics can still prevail, is another. Accordingly, in this arena, any state – much less a small one – that seeks to

Pictured: Barbados’ Ambassador and Permanent Representative to the United Nations, Elizabeth Thompson (left) and Belarus Ambassador Valentin Rybakov signing the documents to establish diplomatic relations between their countries. For both nations these new relations represent another chapter in ‘diplomatic diversification’ that is of growing importance to smaller states around the world

stand completely alone would find the benefits of independence profoundly outweighed by the risks of isolation. These new foreign relations far beyond the Caribbean are examples of those that all local states must now contemplate as individual countries (and the region at large) must redefine their role in the world. The perspective of New Zealand diplomat Chris Seed evidences that there is immense value in the new relationships that Barbados is pursuing. For Seed, the “small state diplomatic playbook” holds three principles. Firstly a nation must have a narrative about what it is and what it seeks to achieve within the international community. Then it must build the architecture (such as via membership in regional organisations) to advance those aims. Finally, a nation requires connections. Of course, such connections can be had through organisations but direct and bilateral ones offer an avenue for two states’ diplomats to work directly with one another.

Pictured: Barbados’ Ambassador and Permanent Representative to the United Nations, Elizabeth Thompson (left) and Ambassador and Permanent Representative of Cambodia to the UN Sovann Ke shaking hands. The establishment of new diplomatic ties with Cambodia offers a new avenue for Barbados to tap into Cambodia’s rapidly growing economy

The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: Blue Lagoon Trinity Trading Ltd. Description: Investment purposes Directors: Shivan Rampersad, Rabbynath Rampersad Date Incorporated: 17/12/19 Chamber: Huggins Nicholas Chambers

Name: GM Secuirty Services Limited Description: Provision of security services & equipment Directors: Robert Gajadhar, Stephen Martin, Bedeana Bastien Date Incorporated: 20/1/20 Chamber: Norman Francis Chambers

Name: Junkai Restaurants & International Trading Co. Ltd. Description: Restaurant and bar Directors: Jun Cai Date Incorporated: 15/1/20 Chamber: Self-incorporated

Name: CAP Investments Ltd. Description: Property holding Directors: LA Bonita CBV Ltd. Date Incorporated: 20/1/20 Chamber: Fosters Chambers

Name: Tropic Ventures Incorporated Description: Touring Directors: Hulan Octave, Martin Alexander Date Incorporated: 17/1/20 Chamber: Amicus Legal

Name: ASER Jeremiah Company Limited Description: Property holding Directors: Omar Ismael, Kimetta Lancaster Date Incorporated: 21/1/20 Chamber: Norman Francis Chambers

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