Maroc - NEWSDAY.CO.TT - A la Une - 13/Nov 04:35

From autopilot to acceleration: Trinidad and Tobago’s growth blueprint

Dr Vaalmikki Arjoon It is high time we think boldly and ambitiously about reshaping our economic future. For far too long, the economy has been operating on autopilot, relying heavily on the energy sector, while non-energy industries continue to remain underdeveloped with little progress in building productive capacity. National planning has often been constrained by short-term political horizons and five-year election cycles that favour incrementalism over transformation. The new blueprint for economic revitalisation is potentially a paradigm shift away from this short-term mindset, moving toward long-term, investment-led growth focused on diversification, resilience, and competitiveness. If effectively implemented, it could be the foundation for a new era of sustained development and break the low-growth inertia that we seem to be stuck in for much of the last decade. Large-scale infrastructure spending is at the heart of this revitalisation plan, and rightly so. Infrastructure investment is among the most powerful fiscal multipliers in any economy, with each dollar spent generating multiple rounds of economic activity. In the short term, construction projects can create immediate employment opportunities and stimulate demand for materials, transport, logistics, and ancillary services. Contractors, engineers, suppliers, and small businesses benefit from the surge in procurement and spending, setting off a ripple effect across sectors. Over time, the benefits deepen as improved infrastructure reduces logistics costs, enhances productivity, and catalyses private investment in areas that were once economically dormant. Infrastructure is therefore not just a cost, but is also an enabling asset that underpins all productive sectors and lays the groundwork for private-sector dynamism. In short, good infrastructure pays for itself many times over. A prime example is the planned deepwater port to be constructed offshore Port of Spain (PoS). Efficient maritime infrastructure is central to trade competitiveness, yet TT has fallen behind regional peers: 2,643 vessels called at the Kingston Freeport Terminal last year, compared with just 786 in the Port of Port of Spain, while our container throughput was 317,300 TEUs versus Kingston’s 2.16 million. An offshore deepwater facility, with naturally deeper drafts, extended turning basins, modern ship-to-shore cranes, and digitised terminal operations, would finally allow us to accommodate post-Panamax and new-Panamax vessels, without the dredging constraints of the inner harbour. This shift can potentially recapture regional shipping market share and position Port of Spain as a leading trans-shipment and logistics hub. Beyond cargo, the new port can anchor cruise traffic, light manufacturing, and value-added logistics such as warehousing and assembly, creating a virtuous growth cycle. If structured as a concession, it can also crowd in private capital, technology, and operating expertise in exchange for long-term revenue-sharing. The proposed San Fernando to Mayaro highway has potential to be another game changer. This major artery will slash travel times between southern and eastern regions, facilitating greater labour mobility and access to jobs. It will open new corridors for commerce, enabling businesses in manufacturing, services, and agriculture to reach new markets. Activities along this route can also surge, like fuel stations, distribution centres, restaurants, and residential developments will follow the improved connectivity. The highway will also be pivotal for the energy sector, improving the transport of materials, equipment, and personnel to onshore and offshore facilities in Galeota and Guayaguayare. Likewise, redeveloped waterfronts and marinas can inject new life into cities by stimulating tourism, hospitality, and retail activity. They create an attractive environment for both visitors and investors, enhancing the country’s image as a modern Caribbean destination for business and leisure. These projects can generate thousands of direct and indirect jobs, spanning construction, transport, entertainment, and property management, while also increasing demand for professional and technical skills. Importantly, they can transform precarious part-time and informal jobs into formal, pensionable employment, strengthening household disposable income and NIS contributions. Decentralisation is another major benefit. By spreading development across San Fernando, Galeota, and other growth nodes, the project can potentially reduce the economic concentration in PoS, and gives smaller towns a chance to develop new business districts, housing, and amenities. This approach eases pressure on urban infrastructure in the capital, spreads business opportunities more evenly across the country, and boosts land and property values in previously underdeveloped areas. Most importantly, it promotes greater income equality by allowing communities outside the capital to share in national prosperity, helping to narrow the rural-urban divide. [caption id="attachment_1148483" align="aligncenter" width="350"] Economist Dr Vaalmikki Arjoon. -[/caption] Financing such an ambitious programme requires a blend of funding models. Public-private partnerships (PPPs) can attract international developers and investors to co-finance and operate revenue-generating projects such as the port, marinas, transport hubs, or health cities. Government-to-government partnerships, not only with the Middle East but also with India, can also provide concessional financing for key infrastructure. Beyond that, the capital market can be leveraged for financing through a Real Estate Investment Trust (REIT). When the income-producing infrastructure under this plan, such as waterfront properties, hotels and industrial parks etc. are completed, some can then be transferred into a REIT. Investors would purchase shares in the REIT, providing upfront funds that help repay part of the development costs or project debt. The REIT would earn steady rental and lease income from these properties, which are then used to pay dividends to its investors. Plus, once successfully completed, the revenues generated overtime by these infrastructure projects could enhance the fiscal space, better enabling the state to service debt obligations, and provide a sustainable income stream that can be reinvested into future phases of national development. Of course, good planning is not enough – execution is everything. Many well-intentioned national projects have failed in the past because of weak coordination, bureaucracy, corruption and poor oversight. This programme will therefore benefit from a single, accountable delivery unit, clear objectives, transparent procurement, and real-time dashboards to track costs, timelines, and results. With disciplined execution, the blueprint can shift the economy from energy and state-spending dependence to investment, innovation, and diversified exports. The potential payoff of higher productivity across manufacturing, logistics, tourism, ICT, and finance, would lift business confidence, broaden the tax base, and create durable jobs. Above all, it would restore national momentum and signal that TT is ready to lead again. Dr Vaalmikki Arjoon lectures in finance at the University of the West Indies.   The post From autopilot to acceleration: Trinidad and Tobago’s growth blueprint appeared first on Trinidad and Tobago Newsday.