The Antigua Barbuda Port Authority (ABPA) would like to address a recent report published in Antigua Real News on May 8th, 2023 entitled “Watts ‘put out by Port Authority’s alleged arrangement to rent tugs and crews from Dominica in possible enrichment scheme” in which a Member of Parliament made slanderous allegations regarding the operations of the Port Authority’s tugs.The report alleged that the Port Authority did not have a tug of its own and was instead renting tugs from Dominica. It also claimed that certain officials at the Port were enriching themselves through corrupt practices.
We would like to clarify that the Antigua Port Authority has been leasing tugs from Midgard / Caribbean Towing LTD, a sister company, for the past 6 years to carry out its maritime obligations in providing towage services. We currently have three tugs, which are being utilized as needed. One of these tugs, “Tug Istria,” is on lease with a financial commitment of $20,000 USD a month and an additional remuneration to the captain attached to the tug of $9,500 XCD. The other two tugs, “Tug Hugo” and “Tug La Dani,” are charged based on usage, either $200 USD per move or $1500 USD per hour, respectively.
The Port Authority would also like to provide further context on our decision to lease tugs. In 2009, the previous administration sold one of our tugs, and the other was not maintained properly, rendering it unseaworthy and needing to be placed on dry dock. As a result, we were forced to explore leasing options for tugboats to fulfill our obligations.
After a thorough assessment of the overall cost of our tug operations, we found that the current leasing arrangement with Midgard / Caribbean Towing LTD was the best economic decision. The rates received from the Tug company are suitable and way below the current market price for tug leasing within the region. Furthermore, leasing the tugboat provides significant cost savings compared to purchasing a brand new tugboat. The cost of a new tugboat can be exorbitant, and it requires a large upfront capital investment. Maintenance costs, repairs, and other associated expenses add to the already high costs of ownership.
In addition, we would like to clarify that all of our tugs are registered with the Antigua Department of Maritime Services (ADOMS) under the Flag of Antigua & Barbuda. We ensure that all crew members are properly trained and qualified for their positions.
