Home' Trinidad and Tobago Guardian : November 11th 2014 Contents A32
Guardian www.guardian.co.tt Tuesday, November 11, 2014
Freight Forwarding / Customs Clearance / Cargo Insurance
Pick-Up & Door Deliveries / Ocean Freight / Warehousing
Cargo Consolidation & Deconsolidation / Expedited Air Shipping
For all your transportation and logistics needs
in Trinidad - one call to Crowley does it all.
Crowley offers a full range of international transportation and logistics services in Trinidad
to businesses large and small. We ship everything from barrels, boxes of all sizes,
palletized cargo, furniture, appliances, building materials, vehicles and more, up to full
containerloads. We even design and execute solutions for complex rig moves and over-
dimensional project cargo, and manage the flow of service and support materials required
for ongoing exploration, production
or manufacturing operations.
For exceptional service, competitive pricing and a hassle-free experience, including
easy payment by credit card, call on Crowley to deliver the most responsive and reliable
logistics services available in Trinidad.
Miami: 305-842-2649 / Puerto Rico: 787-945-7095 / Trinidad: 868-298-8125
From Page A31
was the most measured and careful force, allowing
Digicel to grab vast swaths of mobile market share
in the Caribbean and diminishing CWC's Lime brand
to 16 per cent of the Jamaican market in 2013.
In T&T, the business proposition is even more
delicate for CWC and TSTT. The government owns
a 51 per cent controlling shareholding in the local
telecommunications company through NEL, but the
relationship between CWC and TSTT has been com-
bative for years. CWC's Phil Bentley described TSTT
as a "failing enterprise," in a May Business Guardian
CWC would later be announced as one of the
applicants for a third mobile telecommunications
licence for T&T.
"At the end of the day," Bentley told the BG, "this
is a business. We invest money and hope to get a
return. If we can't get a return, we will go somewhere
else. We have got lots of options."
Those options got exercised last week and TSTT
is now in the curious position of having a potential
competitor with detailed access to its five-year recov-
ery plan on its board, not to mention knowing every-
thing it needs about its process and infrastructure.
TSTT's board of directors and management, let
by a chairman with no discernible telecommunications
experience, must now face a business chal-
lenge of staggering proportions.
In the face of that, even the fate of the
employees who built Columbus into a force
to be reckoned with---and now look set to
disappear into the considerable bureaucratic
maw of the CWC machine---begins to pale.
Will the government buy CWC's shares
or bank on the Telecommunications Author-
ity (TATT) demanding the conversion of
those shares into a nonvoting investment
a condition of its approvals? TSTT is unlikely,
in its current state of incremental recovery,
to find a major buyer other than the Gov-
ernment capable of snapping up CWC's
shareholding and it's doubtful that the public
would be willing to finance an IPO on a
scale that would cover it.
If CWC is granted a mobile telephony
license, would it even need a business part-
nership of any sort with TSTT?
In a business landscape dominated by
Digicel and CWC and in most of the region,
a two-player market would become the
Locally, what would TSTT's role con-
ceivably be? Is it destined to become another
Caribbean Airlines; a quasi-state agency
funded interminably on romantic notions
instead of hard business principles?
Consolidation is good for business. It
leverages costly installed assets over a larger
customer base, reduces employee head count
and dramatically improves procurement
But it also stifles competition, creating
monoliths that crush startups and reduces
TATT has already made it clear that it
wants three-way competition in the local
telecommunications sector. Now it must
make sure that the playing field remains
level and fair in this new dispensation.
Playing field must remain fair
Samsung Electronics has announced plans to
spend up to US$3 billion to create a new smart-
phone factory in Vietnam.
The facility would operate alongside another
US$2 billion plant the company already runs in the
country, which began production in March.
Intel, LG, Panasonic and Microsoft's handset
unit are among other tech firms to have expanded
manufacturing in the country over the past couple
It marks a shift away from China.
Experts say the combination of tax breaks and
a relatively cheap workforce make the country an
appealing base when compared with its northern
"In a way China is a victim of its own success
---it's becoming so successful as an economy that
it's becoming too expensive to do a lot of the man-
ufacturing it used to attract," said Daniel Gleeson,
a senior analyst at the IHS Technology consultan-
"A lot of the manufacturers run at extremely
tight margins. Even smallish cost savings by relo-
cating to Vietnam versus China can represent a
substantial competitive advantage, and driving
down costs can be paramount.
"However, you have more of the Chinese com-
panies getting into the design work, software pro-
duction and essentially the high value aspects of
hardware manufacturing, which means it shouldn't
be too badly off if some of the relatively low value
jobs leave the country."
Vietnam's government had previously said Sam-
sung's smartphone assembly lines would not need
to pay corporate taxes for four years, and only half
the normal rate for the following nine years should
the firm meet the terms set out in its investment
applications. Vietnam exported US$19.2 billion
worth of mobile telephones and accessories over
the first 10 months of the year---eight per cent
more than for the same period in 2013, according
to Vietnam's General Statistics Office. (BBC)
US$3 billion plant
Links Archive November 10th 2014 November 12th 2014 Navigation Previous Page Next Page