MAY 2004
CARIBBEAN SPOTLIGHT
Diverse Trinidad
Leverages Location
Leverages Location
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ust seven miles (11 km.) off the coast of Venezuela at the southeastern edge of the Caribbean, Trinidad has geography on its side in industrial development efforts. The country is naturally situated for companies to serve South America, Central America and the islands of the West Indies.
Now, Trinidad's capital, Port of Spain, is out to land the prestigious headquarters of the Free Trade Area of the Americas (FTAA), with its bounty of subsequent jobs and investment. Reports indicate Trinidad, with the backing of CARICOM (Caribbean Community & Common Market) and Costa Rica, is among the frontrunners along with Miami, Fla., and Panama City, Panama. A decision could come early in 2005. Trinidad & Tobago Ministry of Trade & Industry officials say in addition to boosting the country's profile, landing the FTAA HQ would boost the nation's standing as a manufacturing and financial services center.
With perhaps the most diverse industrial base in the West Indies, the country is officially known as Trinidad & Tobago, but most of the nation's economy bases in Trinidad, with a population of more than 1.2 million. Tobago, much smaller and 15 miles (24 km.) to the Northeast, is a tourism center with about 50,000 residents. Much of the country's industrial effort is contained in 19 industrial estates.
Trinidad targets sectors for development that include chemicals, agribusiness and ICT (information and communications technology), says Dixie Rampersad-Pfister, manager of investment, sector and business development for TIDCO (Tourism & Industrial Development Company of Trinidad & Tobago). She describes Trinidad's economy, with its blend of homegrown firms and joint ventures and partnerships with foreign companies, as the most diverse in the Caribbean.
"Low electricity rates make possible the diversity," Rampersad-Pfister says. "It's all produced with natural gas – we have no coal-fired plants."
Cheap electricity helps industries such as Trinidad's vibrant plastics sector. Rampersad-Pfister says about 1,500 plastics companies have operations on the island. These include makers of shrink-wrap, plastic bottles and other food packaging to serve Trinidad's robust agribusiness and soft drink bottling companies.
Natural gas is a major resource here, and long ago led to the development of a large chemical sector. An important chemical is methanol, a versatile industrial chemical made from natural gas and water that is used in the manufacture of many products.
Methanol Holding (Trinidad) Limited (MHTL), located in Point Lisas Industrial Port, Trinidad's largest industrial state and a major port, is in the midst of a major expansion. MHTL's M5000 Mega Plant will produce 5,000 metric tons of methanol per day, and through the utilization of purge gas streams from the company's existing plants, will be capable of producing an additional 400 metric tons per day. That will make M5000 the largest methanol plant in the world when commercial production begins early in 2005. The plant will boost MHTL's total annual capacity to approximately 4 million tons.
Peake Industries is an example of a manufacturing company that's thriving and has plans for major expansion. Originally a Caribbean distributor for United Technologies subsidiary Carrier, Peake began manufacturing commercial and residential air conditioners about 15 years ago. Markets include the Caribbean, South America, Central America and the Middle East.
Trinidad's location makes it a prime position from which to serve Central and South America, says Peake's sales manager, Gary Ali. The 400-employee, 200,000-sq.-ft. (18,580-sq.-m.) facility in Port of Spain is the Caribbean's only air-conditioning manufacturer. Ali says the company plans to build a much larger facility, perhaps up to 500,000 sq. ft. (46,450 sq. m.), in the Wallerfield area just north of Piarco International Airport. The expansion may increase the company's work force by 50 percent. Piarco is just three years removed from a $400-million project that included a modern terminal building.
Trinidad also advances the idea it's an attractive option for U.S. firms to nearshore call center services.
"There's a lot of opportunity for more call center expansion in Trinidad," says Peter Gillette, chairman of the Gillette Group, whose holdings include DirecOne, a fast-expanding provider of incoming call center services for major telecom companies. "We have a lower cost structure and plenty of labor."
DirecOne, founded in 2000, began as an outbound telemarketer, but switched to a customer care operation in late 2001. The company has recorded several expansions, the latest in November 2003, when it expanded a 288-seat operation to 400 seats to handle business for the wireless division of a telecom client. The company also recently purchased a call center operation in Jamaica and plans expansion there too.
Gillette says labor is in large supply in Trinidad, with about 20,000 students coming out of high school every year looking for work. Call center wages, at $2 per hour and $2.50 with bonuses, are the most competitive in the English-speaking Caribbean, he says.
Now, Trinidad's capital, Port of Spain, is out to land the prestigious headquarters of the Free Trade Area of the Americas (FTAA), with its bounty of subsequent jobs and investment. Reports indicate Trinidad, with the backing of CARICOM (Caribbean Community & Common Market) and Costa Rica, is among the frontrunners along with Miami, Fla., and Panama City, Panama. A decision could come early in 2005. Trinidad & Tobago Ministry of Trade & Industry officials say in addition to boosting the country's profile, landing the FTAA HQ would boost the nation's standing as a manufacturing and financial services center.
A Site Selection Flashback
In January 1983, Amedeo I.D. Francis, then Commissioner of Com-merce for the U.S. Virgin Islands, made a case for industrial development in Site Selection's pages. The islands had a population of 100,000 and an unemployment rate of seven percent, and manufacturing provided about eight percent of employment in an economy that was dominated by tourism. With a current population of 120,000 and an unemployment rate of 4.9 percent, business conditions are somewhat improved from what they were 21 years ago. Tourism, however, still accounts for 70 percent of economic activity and employment.
– Jessica Nasca
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With perhaps the most diverse industrial base in the West Indies, the country is officially known as Trinidad & Tobago, but most of the nation's economy bases in Trinidad, with a population of more than 1.2 million. Tobago, much smaller and 15 miles (24 km.) to the Northeast, is a tourism center with about 50,000 residents. Much of the country's industrial effort is contained in 19 industrial estates.
Trinidad targets sectors for development that include chemicals, agribusiness and ICT (information and communications technology), says Dixie Rampersad-Pfister, manager of investment, sector and business development for TIDCO (Tourism & Industrial Development Company of Trinidad & Tobago). She describes Trinidad's economy, with its blend of homegrown firms and joint ventures and partnerships with foreign companies, as the most diverse in the Caribbean.
"Low electricity rates make possible the diversity," Rampersad-Pfister says. "It's all produced with natural gas – we have no coal-fired plants."
Cheap electricity helps industries such as Trinidad's vibrant plastics sector. Rampersad-Pfister says about 1,500 plastics companies have operations on the island. These include makers of shrink-wrap, plastic bottles and other food packaging to serve Trinidad's robust agribusiness and soft drink bottling companies.
Natural gas is a major resource here, and long ago led to the development of a large chemical sector. An important chemical is methanol, a versatile industrial chemical made from natural gas and water that is used in the manufacture of many products.
A Glance Around the Caribbean
A $110-million expansion by Intel continues on pace in Costa Rica. Intel began operations in San Jose in 1998. The expansion, set for completion later this year, will create about 600 jobs.
Companhia de Bebidas das Americas, Brazil's largest brewing company, plans to invest $100 million over three years to build a brewery in the Dominican Republic.
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Methanol Holding (Trinidad) Limited (MHTL), located in Point Lisas Industrial Port, Trinidad's largest industrial state and a major port, is in the midst of a major expansion. MHTL's M5000 Mega Plant will produce 5,000 metric tons of methanol per day, and through the utilization of purge gas streams from the company's existing plants, will be capable of producing an additional 400 metric tons per day. That will make M5000 the largest methanol plant in the world when commercial production begins early in 2005. The plant will boost MHTL's total annual capacity to approximately 4 million tons.
Peake Industries is an example of a manufacturing company that's thriving and has plans for major expansion. Originally a Caribbean distributor for United Technologies subsidiary Carrier, Peake began manufacturing commercial and residential air conditioners about 15 years ago. Markets include the Caribbean, South America, Central America and the Middle East.
Trinidad's location makes it a prime position from which to serve Central and South America, says Peake's sales manager, Gary Ali. The 400-employee, 200,000-sq.-ft. (18,580-sq.-m.) facility in Port of Spain is the Caribbean's only air-conditioning manufacturer. Ali says the company plans to build a much larger facility, perhaps up to 500,000 sq. ft. (46,450 sq. m.), in the Wallerfield area just north of Piarco International Airport. The expansion may increase the company's work force by 50 percent. Piarco is just three years removed from a $400-million project that included a modern terminal building.
Trinidad also advances the idea it's an attractive option for U.S. firms to nearshore call center services.
See the SITES Tourism & Industrial Dev. Company of Trinidad & Tobago www.investtnt.com
Costa Rican Investment Board (CINDE)
Free Trade Area of The Americas
Caribbean Community & |
"There's a lot of opportunity for more call center expansion in Trinidad," says Peter Gillette, chairman of the Gillette Group, whose holdings include DirecOne, a fast-expanding provider of incoming call center services for major telecom companies. "We have a lower cost structure and plenty of labor."
DirecOne, founded in 2000, began as an outbound telemarketer, but switched to a customer care operation in late 2001. The company has recorded several expansions, the latest in November 2003, when it expanded a 288-seat operation to 400 seats to handle business for the wireless division of a telecom client. The company also recently purchased a call center operation in Jamaica and plans expansion there too.
Gillette says labor is in large supply in Trinidad, with about 20,000 students coming out of high school every year looking for work. Call center wages, at $2 per hour and $2.50 with bonuses, are the most competitive in the English-speaking Caribbean, he says.