GUYANA’S continued economic transformation will depend not only on increased production but also on the development of a strong regional logistics network capable of moving goods efficiently across the Caribbean and beyond.
This is according to the Chairman of the Guyana Shipping Association (GSA) and Chief Executive Officer (CEO) of GAICO Construction and General Services, Komal Singh.
Speaking during an interview on the Guyana Dialogue on infrastructure and development, Singh argued that roads, ports, bridges and other major infrastructure projects are closely linked to the country’s long-term economic success and competitiveness.
“Guyana’s economic development can only be sustained if we build a strong regional logistics network that allows us to efficiently move our goods across the Caribbean and beyond,” Singh said. He noted that strengthening logistics is especially important as Caribbean countries continue to advance regional food security initiatives.
He stated: “The regional food security that has been pushed among member states currently—it is important for that to move through in order to make sure that we have continuity on a strong supply chain, given all the challenges that we’re seeing around the world.”
Singh pointed to the anticipated completion of the gas-to-energy project, stating it is expected to boost Guyana’s manufacturing capacity.
Singh said that with the gas-to-energy project expected to be completed by the end of this year or next year, Guyana’s manufacturing sector is expected to grow to meet and exceed domestic demand while supporting the region’s food security efforts.
However, he warned that without a proper logistics network to move goods across the region in a timely, efficient and economical manner, the country could face a bottleneck where it produces more goods than it can competitively deliver to nearby markets.
He said discussions over the past year among Caribbean leaders have reflected the growing recognition of the need to improve regional transportation and logistics.
“So, over the last year, I would say, we have heard President Dr Irfaan Ali working closely with other regional heads of state to develop a strong network to move our goods around the region.”
Singh also referenced plans for an international airport in Lethem, which he said would improve the movement of products from southern Guyana directly into Caribbean markets.
“We’ve also heard President Ali allude to development of an international airport in Lethem, allowing us to move product from that part of the region straight to the Caribbean region.”
At the same time, he pointed to the ongoing investment in port infrastructure across Guyana as another important component of the country’s logistics strategy.
“You’ve also seen locally the amount of money that is being spent on developing ports across this country, not in just one single area.”
According to Singh, these investments are intended to decentralise trade by allowing goods to be shipped from locations closer to their destination markets rather than routing everything through Georgetown.
“The importance of all of that infrastructure development is to set our network in such a way that we don’t need to move goods or produce from Parika all the way into Georgetown to have it shipped back into Trinidad when Parika is closest to Trinidad and to some part of the other region.”
He stressed that failing to establish these transportation networks now could undermine the country’s future economic potential.
“The importance of these developments is critical to the sustainable growth of our economy. If we don’t do that now and we don’t build out and spend money on that infrastructure, we can run into a situation where we’re producing excess capacity of goods, but we cannot get it to the markets at a competitive price,” he said.
Singh urged citizens to appreciate the broader role infrastructure plays in creating economic opportunities.
“So, I would say to everybody, you need to understand the importance of infrastructure and how that is related to economic opportunities and economic growth of a country.”
Beyond facilitating trade, Singh said infrastructural projects also significantly improve the movement of people and increase productivity by reducing travel times.
He noted that several new highways have substantially shortened journeys that once took hours.
Singh added, “Most of the highways that have been constructed across our country currently, when you look at the amount of time that we used to traverse to get from point A to point B, some of those times moved from, like, two or three hours to an hour, or less than an hour in some cases.”
The reduction in travel time, he said, translates into measurable economic benefits.
“When you take demand power lost, if someone has to sit in a line for a day, spending two to three hours, and you put a value to that loss, it’s very significant, and persons now can utilise that time to do more valuable things for themselves and their families.”
Singh also highlighted the impact that major infrastructural projects have on surrounding communities, particularly through rising property values.
He commended the Government’s approach to planning infrastructural projects, describing them as strategically designed to support multiple areas of development.
The Chairman stated, “This infrastructure development that has been taking place is very strategic. We must commend the government when you really look at some of these infrastructures, if not all the major infrastructure that has been built out. The government is very strategic in how they develop this area.”
“It caters for the environment, it caters for the people, it caters for an industrial commercial development.”
Singh said the economic impact can be seen in land values along new transportation corridors.
“Property value automatically goes up, and the equity value of the community automatically goes up. There is a real benefit also, even to persons who are not doing anything. By just the development alone, it creates a value increase to property within those areas.