OUR VISION MISSION STATEMENT - Port of Bridgetown · 2019-01-27 · ARADOS ORT INC. ANNUAL PORT...

BARBADOS PORT INC.ANNUAL REPORT 2017 A

II BARBADOS PORT INC.ANNUAL REPORT 2017

BARBADOS PORT INC.ANNUAL REPORT 2017 3

OUR VISION MISSION STATEMENT

“To be the most customer focused, cost

effective and highly efficient provider of

value driven cruise, cargo services and

related property development services

while providing satisfactory benefits to

stakeholders, including customers and

employees.”

“To be consistently the best of

all Caribbean ports by providing

quality services and facilities for

cargo and cruise operations, and

to use this regional leadership as

a basis for enhancing international

reputation.”

4 BARBADOS PORT INC.ANNUAL REPORT 2017

TABLE OF CONTENTS

Board of Directors, Officers and Advisors ............................................3

Board of Directors / Management T eam ........................................ 4-5

Notice of Meeting ...............................................................................6

Chairman’s Report .........................................................................7-25

Appendix 1-3 ...............................................................................27-30

Independent Auditor’s Report ......................................................31-34

Statement of Financial Position .........................................................35

Statement of Changes in Equity ........................................................36

Statement of Comprehensive Income ..........................................37-38

Statement of Cash Flows ..................................................................39

Notes to the Financial Statements ............................................... 40-80


BOARD OF DIRECTORS

Mr. David L. Harding ..............................................................Chairman

Capt. George N. M. Fergusson ..................................Deputy Chairman

Mr. David Jean-Marie ............................................... Managing Director

Mr. Everton G. Walters ..............................................................Director

Mr. Neville S. Rowe ...................................................................Director

Mr. David Douglas ....................................................................Director

Mr. Michael J. Weetch ...............................................................Director

Mr. Keith E. Wilson ....................................................................Director

Mr. Irvine M. Best ......................................................................Director

Mr. Calvin N. Alkins. ..................................................................Director

Mrs. Donna S. Cadogan ...........................................................Director

Corporate SecretaryDavid Jean-Marie

AuditorPricewaterhouseCoopers SRL

Attorney-at-LawLystra Kodilinye

BankersRepublic Bank (Barbados) Limited

RBC Royal Bank (Barbados) Limited

First Citizens Bank (Barbadsos) Limited


David L. Harding Chairman

Capt. George N. M. Fergusson Deputy Chairman

Everton G. Walters Director

Calvin N. Alkins Director

Neville S. Rowe Director

Irvine M. Best Director

David Douglas Director

Michael J. Weetch Director

Keith E. Wilson Director

David Jean-Marie Managing Director

BOARD OF DIRECTORS

Donna S. Cadogan Permanent Secretary



Anthony Benn Manager, Security Services

Peter Carrington Manager, Human

Resources/Administration

Curtis Smith Divisional Manager, Human Resources

Capt. Karl Branch Divisional Manager,

Corporate Development & Strategy

Glenn Roach Manager, Quality Assurance

Employee Training and Development

Tedroy Marshall Manager, Engineering

Services

Michele Griffith Manager, Management

Information Systems (Ag)

Albert Soudatt Accountant

Richard Alleyne Manager, Marine Services

& Harbour Master

Anderson Leacock Manager, Property

Management, Maintenance & Projects

Ian Stewart Manager,

Terminal Operations

Kenneth Atherley Divisional Manager,

Operations

David Jean-Marie Chief Executive Officer

MANAGEMENT TEAM



NOTICE IS HEREBY GIVEN THAT THE ELEVENTH ANNUAL GENERAL MEETING of the Shareholders of Barbados Port Inc. (hereinafter called “the Company”) will be held at the Board Room, Barbados Port Inc., University Row, Bridgetown, St. Michael on February 20, 2018 at 10:00 a.m. for the following purposes:

1. To receive and consider the financial statements of the Company for the year ended March 31, 2017 together with the reports of the Directors and Auditor thereon.

2. To elect Directors of the Company.

3. To appoint the Auditor for the ensuring year.

4. To authorize the Directors to fix the remuneration of the Auditor.

5. To transact any other business which may properly come before the meeting.

Dated the 15th day of August 2017.

BY ORDER OF THE BOARD OF DIRECTORS

……………………………….

David Jean-Marie

Corporate Secretary

NOTICE OF MEETING


On behalf of the Board of Directors and Management of Barbados Port Inc., I am pleased to present to you the financial and operational performance of the Port during the period April 1, 2016 to March 31, 2017.

The Port continues to make substantial progress in reforming its operations, increasing its physical capacity, enhancing customer service, and improving financial performance during the last year. This is reflected throughout the operations and management performance activities that are reported herein.

ANNUAL REPORT 2016-2017

CHAIRMAN’S REPORT


VESSEL CALLS In spite of a challenging economic environment, Barbados Port Inc. was able to attract 1,684 vessel calls during the year ended March 31, 2017, an increase of one percent from 1,671 vessel calls during the previous period (Table 1).

There were 918 cargo vessel calls (54% of the total calls), comprising Container, Break Bulk, Dry Bulk, Sugar, Molasses, Cement and Tankers, along with inter-island vessels. In addition, there were 453 cruise vessel calls which represented 27% of the total calls during the captioned period.

The activity with respect to vessels in the Shallow Draught, typically carrying inter-island cargo, marginally declined by two percent over the previous year, moving from 125 for the 2015/16 year to 123 for 2016/17.

TABLE 1: BREAKDOWN OF VESSEL CALLS BY MAJOR CATEGORY (2007/08 - 2016/17)

VESSEL CALLS 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

CRUISE 506 434 438 403 399 357 374 382 412 453

GENERAL CARGO - DEEP WATER HARBOUR 621 581 550 486 437 403 422 454 499 549

GENERAL CARGO - SHALLOW DRAUGHT 192 166 157 120 114 105 99 105 125 123

CARGO - BULK HANDLING FACILITY (INC PF) 25 12 12 30 17 14 15 7 19 9

BULK SUGAR 2 2 2 3 2 2 1 2 2 1

MOLASSES 10 11 10 15 11 10 7 7 13 12

CARGO - CEMENT PLANT 99 86 98 84 96 83 124 79 71 68

TANKERS 148 141 132 142 135 148 139 138 135 156

OTHER VESSELS 318 412 400 449 396 430 403 364 395 313

TOTAL CALLS 1,921 1,845 1,799 1,732 1,607 1,552 1,584 1,538 1,671 1,684

% INCREASE/DECREASE 9% -4% -2% -4% -7% -3% 2% -3% 9% 1%


FIGURE 1: TOTAL CARGO (DWH & SD) IN TONNES FOR 2012/13 - 2016/17

2012/13 2013/14 2014/15 2015/16

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

1,400,000

988,590 1,011,6301,086,223

1,197,568

2016/17

1,368,803

TONNAGE HANDLED Barbados Port recorded strong cargo volumes reaching a total of 1,368,803 tonnes handled, compared to 1,197,568 tonnes in the previous period; or a 14% increase (Figure 1).

The following are noted (Table 2):

• Imports of 981,512 tonnes represented 72% of the total tonnage.

• Imports expressed in tonnage increased by 11% over the previous period.

• Exports comprised 151,827 tonnes representing 11% of the total tonnage handled by the Port of Bridgetown.

• Exports tonnage increased by 12% over the previous period.

• Transshipment cargo increased by 35% from 164,811 tonnes in the 2015/16 period to 222,727 tonnes in the captioned period. This was mainly due to increased transshipment cargo from King Ocean Services, Tropical Shipping, and Seaboard Marine.

• The total containerized tonnage handled across the categories (imports, exports, transshipment and shifted) was 1,200,860 tonnes, or 88% of the total tonnage.

• Only 12,737 tonnes of cargo fell in the shifted category; less than one percent of the total tonnage.


Cargo Handled 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17DOMESTIC

CONTAINERISED DISCHARGED 821,494 787,946 732,523 761,133 741,290 723,245 724,810 730,009 784,920 835,727

BREAKBULK DISCHARGED 143,015 113,920 77,291 89,051 86,832 70,934 70,543 76,548 103,046 99,774

TOTAL DISCHARGED (IMPORTS) 964,509 901,866 809,814 850,184 828,122 794,179 795,353 806,557 887,966 981,512

% INCREASE/DECREASE -6.49%-3.84% -10.21% 4.99% -2.59% -4.10% 0.15% 1.41% 10.09% 10.53%

CONTAINERISED LOADED 155,708 146,657 132,599 137,355 143,113 148,412 159,844 157,641 130,684 147,227

BREAKBULK LOADED 12,399 11,563 8,437 7,643 7,245 11,235 5,229 7,810 4,550 4,600

TOTAL LOADED (EXPORTS) 168,107 158,220 141,036 144,998 150,358 159,647 165,073 165,451 135,234 151,827

% INCREASE/DECREASE -5.88%11.70%

16.55%

0.65%

-4%

-10.86% 2.81% 3.70% 6.18% 3.40% 0.23% -18.26% 12.27%

TRANSHIPMENT CONTAINERISED 139,700 85,025 96,779 66,857 35,858 23,057 39,165 93,895 148,371 205,169

TRANSHIPMENT BREAKBULK 9,219 10,480 9,281 8,022 8,014 5,954 7,736 12,400 16,440 17,558

TOTAL TRANSHIPMENT 148,919 95,505 106,060 74,879 43,872 29,011 46,901 106,295 164,811 222,727

% INCREASE/DECREASE -35.87% 11.05% -29.40% -41.41% -33.87% 61.67% 126.64% 55.05% 35.14%

SHIFTED - CONTAINERISED 8,786 9,433 7,517 10,745 7,284 5,753 4,303 7,920 9,557 12,737

% INCREASE/DECREASE 7.36% -20.31% 42.94% -32.21% -21.02% -25.20% 84.06% 20.67% 33.27%

TOTAL TONNAGE HANDLED 1,290,321 1,165,024 1,064,427 1,080,806 1,029,636 988,590 1,011,630 1,086,223 1,197,568 1,368,803

% INCREASE/DECREASE -10% -9% 2% -5% -4% 2% 7% 10% 14%

Cargo Handled 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17DOMESTIC

CONTAINERISED DISCHARGED 821,494 787,946 732,523 761,133 741,290 723,245 724,810 730,009 784,920 835,727

BREAKBULK DISCHARGED 143,015 113,920 77,291 89,051 86,832 70,934 70,543 76,548 103,046 99,774

TOTAL DISCHARGED (IMPORTS) 964,509 901,866 809,814 850,184 828,122 794,179 795,353 806,557 887,966 981,512

% INCREASE/DECREASE -6.49%-3.84% -10.21% 4.99% -2.59% -4.10% 0.15% 1.41% 10.09% 10.53%

CONTAINERISED LOADED 155,708 146,657 132,599 137,355 143,113 148,412 159,844 157,641 130,684 147,227

BREAKBULK LOADED 12,399 11,563 8,437 7,643 7,245 11,235 5,229 7,810 4,550 4,600

TOTAL LOADED (EXPORTS) 168,107 158,220 141,036 144,998 150,358 159,647 165,073 165,451 135,234 151,827

% INCREASE/DECREASE -5.88%11.70%

16.55%

0.65%

-4%

-10.86% 2.81% 3.70% 6.18% 3.40% 0.23% -18.26% 12.27%

TRANSHIPMENT CONTAINERISED 139,700 85,025 96,779 66,857 35,858 23,057 39,165 93,895 148,371 205,169

TRANSHIPMENT BREAKBULK 9,219 10,480 9,281 8,022 8,014 5,954 7,736 12,400 16,440 17,558

TOTAL TRANSHIPMENT 148,919 95,505 106,060 74,879 43,872 29,011 46,901 106,295 164,811 222,727

% INCREASE/DECREASE -35.87% 11.05% -29.40% -41.41% -33.87% 61.67% 126.64% 55.05% 35.14%

SHIFTED - CONTAINERISED 8,786 9,433 7,517 10,745 7,284 5,753 4,303 7,920 9,557 12,737

% INCREASE/DECREASE 7.36% -20.31% 42.94% -32.21% -21.02% -25.20% 84.06% 20.67% 33.27%

TOTAL TONNAGE HANDLED 1,290,321 1,165,024 1,064,427 1,080,806 1,029,636 988,590 1,011,630 1,086,223 1,197,568 1,368,803

% INCREASE/DECREASE -10% -9% 2% -5% -4% 2% 7% 10% 14%

TABLE 2: BREAKDOWN OF CARGO HANDLED BY CATEGORY (2007/08 - 2016/17)

TABLE 3: BREAKDOWN OF BULK CARGO HANDLED BY TYPE (2007/08 - 2016/17)

Bulk Cargo Handled 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17COMMODITYSUGAR 30,845 27,481 30,302 24,218 21,637 20,751 14,454 12,593 8,783 6,008MOLASSES 40,134 60,311 26,523 55,997 44,867 45,254 37,620 41,741 38,151 47,400FISH OIL/MARGARINE/FAT 1,701 3,550 800 0 0 1,498 0 0 0 0GRAIN/AGRIBULK 94,580 80,708 91,389 76,511 74,836 82,568 74,708 72,210 84,212 65,413FERTILIZER 3,983 2,454 1,385 2,415 1,290 700 1,900 500 701 0PETROLEUM PRODUCTS 728,437 685,431 659,535 656,570 638,381 602,866 613,695 582,246 653,502 602,151LIMESTONE 153 204 0 0 0 3,700 10,500 1,000 0 0CEMENT 119,277 123,919 125,528 113,331 115,118 94,767 167,572 130,575 138,318 146,350HYDRATED LIME 9,384 7,710 3,097 637 0 0 0 0 0 0GYPSUM/POZZOLAN GRAVEL 34,244 39,520 34,965 30,955 22,434 16,990 36,527 8,210 4,092 8,308CEMENT PLANT OTHER 18,086 3 0 3,715 1,020 11,819 9,344 0 3,130 15,146IRON ORE 2,221 6,500 3,000 700 1,424 997 2,864 993 2,501 1,974DWH OTHER* 15,535 4,000 9,577 25,455 22,825 3,079 9,846 3,363 38,945 12,000Total 1,098,580 1,041,791 986,101 990,504 943,832 884,989 979,030 853,431 972,335 904,751% Increase/Decrease -5%-5% -5% 1% -5% -6% 11% -13% 14% -7%

BULK CARGO HANDLING Bulk cargo decreased by seven percent from 972,335 tonnes to 904,751 tonnes. Following the usual trend, petroleum products (602,151 tonnes) accounted for the main category of

bulk cargo handled (67%), followed by cement (146,350), representing 16% of the total bulk handled (Table 3).


TABLE 4: BREAKDOWN OF CONTAINERS (TEUs) BY STATUS (2007/08 - 2016/17)

TEUs Handled 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Inbound Laden 38,743 37,169 34,643 35,815 35,109 34,345 34,426 34,713 37,310 39,663

Inbound Empty 2,540 2,134 874 1,446 716 783 833 1,264 1,812 5,319

Outbound Laden 7,147 6,724 6,077 6,302 6,578 6,822 7,341 7,208 6,040 6,765

Outbound Empty 34,862 34,427 30,818 32,524 30,867 28,101 30,697 29,769 33,224 40,072

Transhipment 12,530 7,108 7,997 5,017 2,150 1,384 2,511 7,368 12,323 18,093

Total TEUs 95,821 87,562 80,409 81,103 75,419 71,435 75,807 80,322 90,708 109,911

% Increase/Decrease -9%-7% -8% 1% -7% -5% 6% 6% 13% 21%

CONTAINER TRAFFIC (Inclusive of inbound transshipment, outbound transshipment and empty containers)

The Bridgetown Port handled 109,911 TEUs during the period, representing a 21% increase when compared to the 90,708 TEUs which were handled during the previous period (Table 4).

Of the total TEUs handled during the period, 36% (39,663 TEUs) were full imports while six percent (6,765 TEUs) were full exports. Some 40,072 TEUs (36%) were outbound empty containers.


PERSONAL EFFECTS The Port handled 45,847 pieces of personal effects in 2016/17, a decline of three percent over the previous period of 47,456 pieces (Figure 2). The reduction in the quantity of personal effects delivered from the Port is mainly due to the increasing number of off-port facilities providing similar services.

The labour cost relating to the provision of this service within the Port threatens our ability to recover cost on this activity and highlights the need for our continued consultation with the employees’ representative, aimed at further rationalizing labour at the Port and in keeping with modern practices.

Although the increase in cargo during the current period should be celebrated, it is evident that in order for the Port to take advantage of any future opportunities, there is a critical need for the fuller implementation of the Port’s Master Plan.

Additional berthing capacity for container vessels and the proposed changes to the layout of the Port’s Container Terminal and Container Freight Stations will result in improved functionality, increase in efficiency and more opportunities for growth.

Some important elements of the Master Plan to be implemented are:

FIGURE 2: PERSONAL EFFECTS DELIVERED (2012/13 - 2016/17)

2012/13 2013/14 2014/15 2015/16

60,000

50,000

40,000

30,000

20,000

10,000

0

55,091 53,965 51,25147,456

2016/17

45,847

• Creation of designated areas for container handling equipment traffic only;

• Separation of pedestrians from equipment and other traffic in the Port;

• The demolition of shed 3 and the extension of the crane rails;

• The construction of a new Container Freight Station at the Eastern boundary of the Port;

• The demolition of shed 4;

• Provision of additional areas for containers; and,

• Provision of a larger area for reefer containers.


CRUISE OPERATIONS Total cruise vessel calls for the year were four hundred and fifty-three (453) as compared to four hundred and twelve (412) for the previous period 2015/16; an increase of 10%.

Barbados also recorded an increase in cruise passenger arrivals during this period, moving from 757,413 at the end of the previous period, to 775,300; an increase of two percent (Figure 3).

Of these amounts, 170,674 passengers on 20 ships representing 12 lines, used Barbados as a homeport

100,000100,000

FIGURE 3: CRUISE PASSENGER ARRIVALS (2012/13 - 2016/17)

2012/13 2013/14 2014/15 2015/16

600,000

050,000

400,000

300,000

200,000

0

700,000

800,000

900,000

626,753

655,322 670,807

757,413

2016/17

775,300

during the period under review. This compared favorably with 164,606 passengers on 20 ships representing 13 lines in 2016/17.

Some ten (10) new vessels called at the Bridgetown Port as inaugurals during the season 2016/17, comprising Viking Star, TUI Discovery, Mein Schiff 5, MSC Armonia, Sirena, Star Breeze, Koningsdam, Seven Seas Explorer, Zenith, and Niuew Amsterdam.


MANAGEMENT INFORMATION SYSTEMS

MIS continued to engage in major development initiatives in support of the Strategic Plan. At the start of this financial year, the department initiated a Disaster Recovery Plan that would facilitate business continuity, in the event of a catastrophe such as hurricane, fire, or act of terrorism. This recovery solution supports a mechanism which allows the Port’s computer systems to function via the internet using information stored off island.

There has also been continuous improvements in technological solutions to better customer services. Computerization of export declarations was designed to expedite the processing required for exports as they enter the compound. The project will ensure that the pertinent information is entered online by the container handlers before containers arrive at the gate for entry. The aim is to facilitate faster movement of goods by reducing the need to perform data entry upon arrival at the Port.

Several other initiatives have been deployed to create a more efficient business environment through design and production of automated systems. Such systems include digitized document management and computerized billing. Digitized document management is a more logical mechanism for processing and storing documents without the use of paper. It provides standardized audit and interdepartmental (Reports Office/Cashier Office/MIS) automation. The computerized billing systems has been developed to remove manual compilation of data, thereby reducing processing time from approximately five hours to fifteen (15) minutes.

As a leading port operator in the Caribbean, Barbados Port Inc. has a responsibility to adhere to both regional and international standards. The International Convention for the Safety of Life at Sea (SOLAS) as at July 2016, has enforced new requirements for shippers to verify the gross mass of all containers. This is an important safety measure to avoid collapse of containers resulting in loss or injury. Barbados Port Inc. has consequently invested in new cargo handling equipment to facilitate the capture of container weights in real time. These new units can provide a computerized reading of the weights of the containers as they are being hoisted. Certificates are then provided for shippers to verify the accuracy of the recordings before export.

It is vital for the Port to capitalize on the advancements in technology if we desire to sustain a competitive edge in the region. Our aim is not only to provide a service but to ensure the efficiency and value added to the execution of our responsibilities.

TRAINING & HUMAN RESOURCES DEVELOPMENT

Barbados Port Inc. continued the year with its Competency-Based Training, Assessment and Certification. The Port was able to operate as a National/Caribbean Vocational Qualification (N/CVQ) Centre and completed training, and certification of employees as follows:

CVQ Stevedoring Foundation Skills Level 1

Under this programme, twenty-two (22) Dockers completed full certification, while one (1) Docker and thirteen (13) Reserves were awarded partial certification in CVQ Stevedoring Foundation Skills Level 1, as prescribed.


NVQ Stevedoring Operations Level 2 – Equipment Opetrator

Under the competency-based training and certification programme, twenty (20) Equipment Operators completed full certification, while an additional eight (8) candidates were awarded partial certification by the TVET Council.

In addition, ten (10) Cargo Supervisors completed training and assessment, of which seven (7) candidates were awarded full certification, and three (3) candidates awarded partial certification.

Other Employee Training and Development

Terminal Operations Department

Training was conducted for a total of 25 employees in the following areas of operations.

• Gantry Crane, Straddle Carrier and Reach Stacker operation

• Ship Foreman duties

• Dangerous Cargo handling

Marine Services Department

Six (6) maritime cadets sponsored by the Port, successfully completed their programme for certification as Officer-in-charge of Navigation Watch and Engineering Watch, respectively at the Caribbean Maritime Institute. The Navigation Cadets completed six (6) months sea time on deck with the Maersk Lines vessels, the Engineering Cadets completed three (3) months, and the remaining sea time was completed onboard the tugs at the Bridgetown Port.

The cadets have also completed the short courses in preparation for their licenses from the Maritime Association of Jamaica. On completion, these Officers

will enhance the quality of navigational and engineering services at the Port.

Engineering Services Department

The engineering personnel successfully completed multi-skilling training in the various disciplines for maintenance of the existing and new equipment.

Security Services Department

Thirty (30) security officers completed training in security operations and the International Ship Port Security (ISPS) Code, respectively.

In order to continually improve the quality of service and enhance operational efficiency across the organization, implementation of the following initiatives is proposed during the remainder of 2017.

Competency-Based Training, Assessment and Certification

1. Training, assessment and certification of candidates as follows:

CVQ Stevedoring Operations Foundation Skills Level 1 - thirty-for (34) Reserves, and four (4) Dockers

NVQ Stevedoring Operations Level 2 – Equipment Operator - ten (10) Equipment Operators and four (4) Cargo Supervisors

NVQ Stevedoring Operations Level 2 – Heavy Equipment Operator - fifteen (15) Equipment Operators

NVQ Management Level 2 - thirty (30) supervisory level candidates across the organization

CVQ Assessment Level 4 - ten (10) candidates


Fire safety training - Bridgetown Port

2. Attain centre registration for BPI to offer training and assessment of the NVQ Management Level 2 occupational standard.

3. Review and validate the CVQ Stevedoring Foundation Skills Level 1 occupational standard, and submit a proposal for rationalization to the TVET Council, to ensure its currency and relevancy.

4. Develop a NVQ occupational standard in Warehousing Operations Levels 2 and 3 for training, assessment and certification of Terminal Operations staff in 2018.

Other Employee Training

• Five (5) persons to attend a PMAC/BPI Human Resources Management workshop

• Culture change workshop(s) for Senior Managers

• Two (2) persons to participate in sponsored CMI training in Quality Systems and documentation

• Basic First Aid conducted across the organization.

• Recertification of Pilots through simulator training.

• CVQ – Occupational Safety & Health Level 2 Training

Industrial Relations

The Port maintained a stable and harmonious industrial relations climate during the reporting period. Accordingly, rationalization negotiations were successfully completed with the Barbados Workers’ Union (BWU), which resulted in the following efficiencies in key operational areas.


Opening ceremony of the Port Side Fitness Centre

1. In the Terminal Operations Department, which is responsible for all cargo handling activities, the number of staff was reduced as follows:

a) Equipment Operators by ten (10) moving from sixty (60) to fifty (50) Operators;

b) Dockers by thirty-six (36) moving from eighty-six (86) to fifty (50);

c) Shed and Reports Office Managers by two (2) moving from five (5) to three (3); and,

d) Senior Clerical Officers by four (4) moving from eleven (11) to seven (7).

2. In the Marine Services Department, operations moved from a three (3) shift system working any five (5) days in seven (7) days, to a two (2) Shift System working Monday through Friday with weekends (Saturdays and Sundays) as off-days. This agreement resulted in a reduction of staff on

the tugs and Mooring gangs by ten (10) persons.

3. Barbados Port Inc. and the Shipping Association of Barbados (Employers) and the Barbados Workers’ Union (Employees’ Representative) completed and signed-off on a written Collective Agreement for the operation at the Port, the first such agreement since 1968. The Company will conduct sessions to sensitize employees on the Agreement and has issued each employee with a copy of the Document, in this regard.

Employee Relations

Opened September 9, 2016, Port-Side Fitness Centre is an initiative of Barbados Port Inc. aimed at addressing the high levels of non-communicable diseases among its staff, and promoting a healthier lifestyle. The operation of the gym has been a major success for the Port in this regard, boasting in excess of 150 members.


MAINTENANCE

Completion of the Wickham -Lewis Boardwalk

The section of the Wickham-Lewis Boardwalk between the lift bridge and the traffic lights at Chefette Restaurant was closed for refurbishment. This project provided a safer and aesthetically pleasing boardwalk for commuters and tourists.

Going Green

During the year, Barbados Port Inc. continued with the implementation of energy efficient initiatives which have proven successful thus far. Approximately 1,500 fluorescent tubes of 40W power were replaced with LED tubes of 18W, and programmable occupancy sensors were introduced throughout the administration building, sheds, and various other areas. As a result,

electricity usage was reduced by 60 percent. Street lights containing metal halide have also been replaced with LED lights, recording a 65 percent reduction in electricity usage.

The Ministry of Energy, with the support of the Inter-American Development Bank, will donate a 500 kWh (kilowatt hour) photovoltaic system to the Port, representing approximately 20 percent of its total electricity needs. Currently, Barbados Port Inc.’s annual consumption stood at 6 million kWh, but will now be reduced to 3.6 million kWh as a result of this alternative energy initiative.

New sheds constructed as part of the Port Master Plan will incorporate solar panels in support of this alternative energy philosophy.

Refurbished Wickham-Lewis Boardwalk, Bridgetown


LOOKING TO THE FUTURE

Berth 6

The completion on Berth 5 coincided with tremendous growth for the Bridgetown Port, allowing for the accommodation of two mega cruise ships, concurrently. As a result, these cruise ships continued their calls as homeporting vessels into the current 2016/17 season. It is anticipated that 170,000 passengers will embark on homeport vessels in Barbados in the upcoming period.

Consequently, the success of this project has led to the conceptualization of Berth 6. This berth would be capable of handling loads between 40 to 55 tons per square metres and would be dredged to a depth of 15 metres. It would include the asphalting of nine adjoining acres of previously reclaimed land rendering the area as a functional container storage zone, and further enabling the separation of cruise and cargo operations. The total revised contract cost stands at Bds$114 million, inclusive of crane rails and related infrastructure.

Pending completion of the project permitting and financing process, berth construction is expected to commence during September 2017 with completion in 22 weeks.

BPI welcomes a new Sister Port Memorandum of Understanding

As part of our continued programme of building strategic partnerships, Barbados Port Inc. and the Port of Tenerife have signed a sister port agreement. The main areas of the agreement are:

1. To promote Barbados and Tenerife Islands as global cruise and yachting ports of call and

tourism destinations, through creative cruise itineraries and international yachting races.

2. To increase the efficiency of cruise ports and marinas through the interchange of information in areas such as cruise passenger traffic, yachting events, new tourism developments in the Atlantic, new techniques or technologies on ports and marina development, as well on organization, investment, administration and management in these sectors.

3. To organize and conduct joint training to enhance the quality of service delivered to cruise ships, cruise ship passengers and yachtsmen.

4. To promote the development of port facility security plans, improve the level of security for ports and participate in warning mechanisms for the rapid dissemination of security information critical to ships and/or ports.

5. To facilitate the formulation of common positions, policies or plans on questions of common interest and present such positions at regional and international forums.

6. To develop and foster good relations and collaboration among all cruise ports of the world and the cruise industry.

Barbados Port Inc. also has a signed International Sister Seaports Agreement with the Manzanillo International Terminal (MIT) of Panama since 2014. Similar in concept, this agreement allows for the sharing of information, and joint opportunities in


training, and technology. This year, Barbados Port Inc. in collaboration with MIT hosted a best practices in Customer Service Workshop for employees from across the organization. Approximately 32 Port employees participated in the workshop, held at the Cave Hill School of Business, UWI Barbados.

Murals

In celebration of Barbados’ 50th year of Independence, the Port hosted a commissioning ceremony for eight specially selected Barbadian artists to paint murals. This project was conceptualized to beautify the air-sea transfer area at Shed 3, to enhance the overall experience of cruise ship passengers as they embark or disembark vessels. The muralists were afforded the opportunity to paint the representation of the social, economic, and physical development of Barbados to our visitors. Artists included David Alleyne, Maurice Forde, Mark Maynard, Don Small, Omowale Stewart, Petra Toyin,

Representatives of BPI signed International Sister Seaports Agreement with the Manzanillo International Terminal (MIT) of Panama

Tracey Williams, and Fielding Babb. Sadly, Mr. Babb passed away before the start of the project. His piece will be a collaborative effort from the other artists.

Murals will be displayed as a diptych each covering a large door measuring 24 feet wide and 12 feet high. The artwork will also be transportable to ensure they can be integrated into any new developments, as the Port continues to grow and expand its infrastructure.


Restoration of the East Point Lighthouse

Discussions commenced between Barbados Port Inc. and Hinds Transport with respect to East Point Lighthouse. The plan involves restoring the lighthouse and surrounding buildings to their original state, and to utilize the buildings for community based lighthouse merchandising.

Development of a joint venture proposal for the refurbishment and development of the South Point Lighthouse has also commenced. The contract for the works has been awarded to Innotech Ltd.

Investing in In-house Transportation

Shuttle services for cruise ships have been provided by the Transport Board for many years. At present, the Port is challenged with the delivery of this service which creates a negative impact on tourism. To optimize the regularity of the service, and enhance the development of cruise operations, Barbados Port Inc. has taken the decision to acquire three (3) train/tram systems to be operated within the Port during the cruise season. The investment in this equipment allows us to shuttle passengers to and from the terminal, efficiently. This process is well advanced, and the trams are expected to be operational during the 2017/18 cruise season.

Keys to East Point Lighthouse are handed over for commencement of restoration works.


FIGURE 4: NET INCOME 2012 - 2017(Quoted in Millions of Dollars)

2016 2017201520142012

0.1

5.4

13.7 13.717.9

0.00

5.00

10.0015.00

20.0025.00

30.00

Net income for the year

35.0040.0045.0050.00

FIGURE 5: OPERATING EXPENSES (2012 - 2017)(Quoted in Millions of Dollars)

2016

Operating Expenses

201520142012 2017

20.00

0.00

40.00

60.00

80.00

FINANCIAL REVIEW

Operating Performance

Overview

Barbados Port Inc. for the year ended March 31, 2017 demonstrated consistent performance as net income increased by $1.8 million to $17.9 million, over last year’s position. With the exception of excess storage, all major revenue areas increased on prior year numbers. Total operating income for the year increased by 10%, reaching $97.6 million compared to $89.1 million earned in 2015/16. This has been the best income performance over the last 5 years. (Figure 4)

Operating Expenses grew by $2.8 million or 5% due mainly to the net effect of (i) a substantial rise in

depreciation as capital works and operating equipment continued to increase, to meet the demands of the port and (ii) a reduction in staff costs, which were expected due to rationalization of staff, towards the end of the prior year (Figure 5).


STATEMENT OF FINANCIAL POSITION

Overview

An overview of the financial position of Barbados Port Inc. as at March 31, 2017 revealed a significant increase in current assets whilst there were notable decreases in non-current assets, non-current liabilities, and total equity. There was, however, also an increase in current liabilities.

The significant increase in current assets to $20.6 million is attributed primarily to reclassification of $9 million in restricted cash to be used to pay the principal amounts due to bondholders during the 2017/18 financial year. In the prior year, these funds were recorded as a non-current asset, but were currently reclassed to match the current liability, as the moratorium on repayment came to an end. The bond payment will commence on June 30, 2017.

The reduction in financial investments by $2 million is due to the reclassification of $9 million in restricted cash which was offset by the annual inflows of $7million to the debt service reserve account. This, along with the net movement of property, plant and equipment and capital works which declined by $3.6 million, added to the reduction of the deferred tax asset of $6.3 million, accounted for the decrease in non-current assets.

The $70 million bond issue, brokered by Republic Finance and Trust (Barbados) Company Limited, was fully subscribed during the year under review, and increased the long-term liabilities position. Its repayment, commencing in the upcoming financial year, has contributed to the $10.2 million increase in the current portion of long-term liabilities.

It is worthwhile to note that Barbados Port Inc. has successfully liquidated its bank overdraft, and a decision was taken not to seek renewal of the facility on its expiration May 2, 2017. This will reduce the Letter of Comfort commitments of the Ministry of Finance by $10 million.

It should also be noted that Barbados Port Inc. Defined Benefit Pension Fund ended this year in a surplus position. This is the first time this fund has been in surplus since its inception, and after reaching its highest deficit position of $24 million in 2003. The medical plan continues to be in a deficit position due to its nature, whereby the Company contributes to the premiums of employees remaining in the medical plan on retirement.

Liquidity

Barbados Port Inc. realized a working capital deficit of $0.9 million as at March 31, 2017, the lowest in the last five years. The quick ratio improved as well to 1.0 due to the reclassification of funds from financial investments.

Activity

The key ratio in this category relates to collection of receivables. Barbados Port Inc. has been working assiduously to reduce this ratio through improvement of processes and other methods. During 2016/17, it took 43 days to collect outstanding receivables the same as in prior year. Effort is ongoing to lower this ratio to 35 days as prescribed by the Five-year Strategic Plan.


TABLE 5: STATEMENT OF FINANCIAL POSITION HIGHLIGHTS 2012 - 2017(Quoted in Millions of Dollars)

Current AssetsAccounts receivablesNon-current assetsTotal AssetsCurrent LiabilitiesLong-term LiabilitiesTotal EquityTotal Liabilities & EquityWorking CapitalAverage ReceivablesTotal DebtDebt/EquityCurrent RatioDays to Collect Receivables

201213.40

7.90208.30

221.7044.20

103.6073.90

221.70(30.80)

8.40147.80

2.000.30

46.24

201414.30

7.40206.60

220.9055.1083.4082.50

220.90(40.80)

7.65138.50

1.680.26

31.95

201513.72

7.54216.96

230.6864.8968.8796.92

230.68(51.17)

7.47133.76

1.380.21

54.75

201613.84

6.49309.29

323.1332.19

125.56165.38

323.13(18.35)

7.02157.75

0.950.43

42.67

201734.40

8.92

297.46331.86

35.31112.98183.57

331.86(0.91)

7.71148.29

0. 8 10.97

42.51

Leverage

The Company remained highly leveraged as it is a very capital intensive entity. The debt to equity ratio stood at 0.81:1 in the current year as compared to 0.95:1 in the prior year ended March 31, 2016.

This diminution is as a result of two main factors:

(i) The winding down of the Royal Bank Canada Loan and the Republic Bank (Barbados) Limited Bond which are due to mature in June and September 2018, respectively, and

(ii) The injection of capital by the shareholder in the prior year for the expansion of berth capacity in the Bridgetown Port and yachting facilities at the Shallow Draught. As a highly leveraged entity, debt service costs become a major issue as much needed cash is required to facilitate significant interest payments. Finance costs were $11 million during 2016/17, when compared to $11.7 million the previous year.

Key financial position balances and ratios are reported below in Table 5:


CONCLUSION

The Board and Management continue to work on ensuring the financial viability of Barbados Port Inc., and fulfilling its mission of delivering efficient and effective services to all port users. In addition, we intend to refurbish lighthouses, the police outpost, and critical port infrastructure during the coming year, as well as to try to bring the modern cruise facility and additional berthing capacity to fruition.

ACKNOWLEDGEMENTS

As we enter into a new financial year, the Board of Directors and Management convey our sincerest appreciation to those who have contributed to the efficient operation of the Bridgetown Port as we continue in pursuit of our strategic goals.

• The Right Honourable Freundel J. Stuart, Q.C, M.P., Prime Minister of Barbados

• The Government and People of Barbados

• The Honourable Richard L. Sealy, MP, Minister of Tourism and International Transport

• Management and Staff of Barbados Port Inc.

• Shipping Association of Barbados

• The Barbados Workers’ Union

• Barbados Tourism Investment Inc.

• Barbados Tourism Marketing Inc.

• Barbados Tourism Product Authority

• Barbados Customs Brokers and Clerks Association

• Town Planning Department

• Coastal Zone Management Unit

• Customs and Excise Department

• Royal Barbados Police Force

• Immigration Department

• Ministry of Tourism and International Transport

• Ministry of Foreign Affair and Foreign Trade

• Ministry of Commerce and Trade

• Ministry of Finance and Economic Affairs

• Ministry of Health

• Ministry of Agriculture

• Ministry of Transport and Works

_______________

David Harding

Chairman


BARBADOS PORT INC.

APPENDICES


CALLS ARRIVALS2014/15 2015/16 2016/17 2014/15 2015/16 2016/17

OPERATORAIDA CRUISES 11 12 11 23,000 25,549 22,836ALL LEISURE GROUP 0 3 1 0 1,144 426ARTICA ADVENTURES & CRUISES 0 1 0 0 192 0ASTOR SHIPPING CO 0 1 1 0 506 480ATLANTAGENT 1 2 2 80 162 153AZAMARA CRUISES 1 0 0 536 0 0CARNIVAL CRUISE LINES 50 50 52 162,736 167,930 129,356CELEBRITY CRUISES 30 31 28 77,005 78,705 70,759CLUB MED CRUISES 5 7 8 1,178 2,094 2,287COLOMBIA CRUISE SERVICES 0 0 1 0 0 338COMPAGNE DES ILES DU PONANT 0 0 1 0 0 208COSTA CRUISES 8 9 9 22,890 22,925 25,176CRISTAL TRADING 2 1 0 86 3 0CROISIERES DE FRANCE 3 0 0 3,834 0 0CRYSTAL CRUISES 1 1 0 1,013 929 0CUNARD LINE LTD 1 2 2 2,578 4,268 3,670DELPHIN SEEREISEN 1 0 0 256 0 0DISNEY CRUISE LINES 4 4 0 9,126 9,478 0EPIC CRUISE LTD 0 2 0 0 2,012 0FRED OLSEN CRUISES 8 7 9 6,821 4,926 7,535GLOBAL CRUISE LINE 2 1 2 1,194 735 1,529HAPAG LLOYD 2 0 0 705 0 0HOLLAND AMERICA LINE 15 13 16 20,863 19,164 24,997MAJESTIC CRUISE LINE 5 10 15 660 1,272 1,828MSC CRUISES 3 11 11 9,649 31,666 27,479NORWEGIAN CRUISE LINE 6 5 9 18,427 18,388 27,904OCEANIA CRUISE LINE 10 7 14 7,561 4,841 11,174OPTIMUM SHIP MANAGEMENT 0 1 2 0 89 1P & O CRUISES 30 37 25 73,327 89,430 75,868PRINCESS CRUISES 11 13 13 34,485 39,831 41,642PULLMANTUR CRUISES 0 0 13 0 0 17,945REGENT SEVEN SEAS CRUISES 1 1 4 455 433 2,553RESIDENSEA 0 1 0 0 106 0ROYAL CARIBBEAN CRUISE LINE 49 54 62 126,831 161,175 184,056SAGA SHIPPING 2 3 3 997 1,531 1,124SEA CLOUD CRUISES 11 15 10 712 981 716SEABOURN CRUISE LINE 12 2 5 2,823 869 2,114SEADREAM YACHT CLUB 9 13 14 872 1,288 1,334SILVERSEA CRUISES 12 12 12 3,281 3,679 3,813STAR CLIPPERS INC. 22 22 18 3,920 3,732 3,380THOMSON CRUISES 21 22 2 26,722 27,362 2,564TUI CRUISES 12 11 31 22,608 27,359 64,182V - SHIPS 3 0 2 1,392 0 864VIKING OCEAN CRUISES 0 0 12 0 0 10,592WEST INDIES CRUISE LINE 0 7 10 0 550 1,367WINDSTAR SAIL CRUISES 18 18 23 2,184 2,109 3,050

TOTAL 382 412 453 670,807 757,413 775,300


MONTH

APPENDIX 2 : CRUISE PASSENGER ACTIVITY 2014/15, 2015/16 & 2016/17 (BY MONTH)

NUMBER OF CALLS

ARRIVING PASSENGERSEM

BARKING PASSENGERSDISEM

BARKING PASSENGERS2014/15

2015/16%

+/(-)2016/17

% +/(-)

2014/152015/16

% +/(-)

2016/17%

+/(-)2014/15

2015/16%

+/(-)2016/17

% +/(-)

2014/152015/16

% +/(-)

2016/17%

+/(-)

APRIL37

35-5.41%

28-20.00%

58,71166,879

13.91%50,805

-24.03%5,027

3,057-39.19%

2,777-9.16%

5,4703,296

-39.74%3,238

-1.76%

MAY

137

-46.15%12

71.43%25,450

23,550-7.47%

20,697-12.11%

813629

-22.63%821

30.52%882

634-28.12%

70411.04%

JUNE7

70.00%

1271.43%

18,31824,518

33.85%20,786

-15.22%651

592-9.06%

1,205103.55%

781603

-22.79%1,210

100.66%

JULY9

7-22.22%

1157.14%

27,95325,314

-9.44%19,086

-24.60%681

619-9.10%

90345.88%

674663

-1.63%909

37.10%

AUGUST6

1066.67%

9-10.00%

18,30521,548

17.72%20,570

-4.54%675

6942.81%

90330.12%

609617

1.31%889

44.08%

SEPTEMBER

88

0.00%6

-25.00%21,285

23,3229.57%

16,793-28.00%

629649

3.18%641

-1.23%654

518-20.80%

69433.98%

OCTOBER14

140.00%

8-42.86%

31,82136,086

13.40%15,525

-56.98%792

545-31.19%

64718.72%

820543

-33.78%636

17.13%

NOVEMBER

4452

18.18%54

3.85%73,671

93,49926.91%

89,892-3.86%

18,81521,402

13.75%20,946

-2.13%18,798

21,11212.31%

21,1880.36%

DECEMBER

6373

15.87%85

16.44%105,159

107,9162.62%

142,20231.77%

21,86026,032

19.09%26,803

2.96%21,259

25,22518.66%

25,8212.36%

JANUARY66

8122.73%

810.00%

109,911146,828

33.59%147,786

0.65%27,756

32,79618.16%

28,316-13.66%

27,73032,766

18.16%28,603

-12.71%

FEBRUARY57

617.02%

7116.39%

92,203103,732

12.50%122,432

18.03%24,613

25,5984.00%

25,8961.16%

24,52125,774

5.11%25,782

0.03%

MARCH

5857

-1.72%76

33.33%88,020

84,221-4.32%

108,72629.10%

19,91621,393

7.42%22,908

7.08%19,748

21,5839.29%

22,7545.43%

TOTAL382

4127.85%

4539.95%

670,807757,413

12.91%775,300

2.36%122,228

134,0069.64%

132,766-0.93%

121,946133,334

9.34%132,428

-0.68%


2014/15 2015/16 2016/17

OPERATORVESSELL CALLSARRIVALS

DISEMBARKED

EMBARKED

CALLSARRIVALS

DISEMBARKED

EMBARKED

CALLSARRIVALS

DISEMBARKED

EMBARKED

AIDALUNA AIDA CRUISES 10 20,842 8,635 8,634 0 0 0 0 0 0 0 0

AIDADIVA AIDA CRUISES 0 0 0 0 10 21,319 8,709 8,498 11 22,836 7,746 7,799

VOYAGER ALL LEISURE GROUP 0 0 0 0 3 1,144 1,061 1,074 1 426 412 288

MINERVA ARTICA ADVENTURES & CRUISES 0 0 0 0 1 192 178 279 0 0 0 0

SERENISSIMA ATLANTAGENT 1 80 78 76 2 162 159 158 0 0 0 0

CELEBRITY CRUISES AZAMARA JOURNEY 1 536 7 18 0 0 0 0 0 0 0 0

BRAEMAR FRED OLSEN CRUISES 4 3,202 2,943 3,055 5 3,726 2,483 2,627 6 4,771 4,231 4,297

ADONIA P & O CRUISES 0 0 0 0 9 6,097 5,676 5,497 0 0 0 0

AZURA P & O CRUISES 10 30,353 29,816 30,312 10 30,683 30,133 30,336 9 27,561 27,076 26,976

VENTURA P & O CRUISES 10 30,274 29,959 30,042 0 0 0 0 0 0 0 0

BRITANNIA P & O CRUISES 0 0 0 0 10 36,464 35,965 36,088 10 36,094 33,485 33,715

SEA CLOUD II SEA CLOUD CRUISES 5 360 349 311 5 424 399 300 7 554 485 395

SEA CLOUD" SEA CLOUD CRUISES 6 352 333 328 10 557 524 430 3 162 159 92

SEABOURN SPIRIT SEABOURN CRUISE LINE 10 1,939 1,637 1,616 0 0 0 0 0 0 0 0

SEABOURN ODYSSEY SEABOURN CRUISE LINE 0 0 0 0 0 0 0 0 3 1,289 1,069 1,104

SEADREAM I SEADREAM YACHT CLUB 6 566 512 542 11 1,111 1,047 1,015 14 1,334 1,243 1,208

SEADREAM II SEADREAM YACHT CLUB 3 306 268 268 2 177 173 129 0 0 0 0

SILVER CLOUD SILVERSEA CRUISES 5 1,226 390 389 0 0 0 0 0 0 0 0

SILVER EXPLORER SILVERSEA CRUISES 1 62 62 8 0 0 0 0 0 0 0 0

SILVER SPIRIT SILVERSEA CRUISES 1 495 78 77 1 491 323 209 6 2,170 1,860 2,184

SILVER WHISPER SILVERSEA CRUISES 3 800 737 805 6 1,821 1,561 1,433 1 301 300 326

ROYAL CLIPPER STAR CLIPPERS INC. 21 3,824 3,591 3,558 21 3,620 3,336 3,282 17 3,254 3,103 2,985

STAR FLYER STAR CLIPPERS INC. 1 96 88 145 1 112 112 160 1 126 122 143

THOMSON CELEBRATION THOMSON CRUISES 18 22,260 14,668 14,702 21 25,941 17,572 17,583 2 2,564 2,049 1,923

THOMSON DREAM THOMSON CRUISES 3 4,462 2,361 2,212 1 1,421 9 6 0 0 0 0

TUI DISCOVERY THOMSON CRUISES 0 0 0 0 0 0 0 0 20 36,795 22,987 23,049

MEIN SCHIFF TUI CRUISES 11 20,637 9,433 9,557 0 0 0 0 0 0 0 0

MEIN SCHIFF 2 TUI CRUISES 1 1,971 1,268 1,280 0 0 0 0 0 0 0 0

MEIN SCHIFF 3 TUI CRUISES 0 0 0 0 11 27,359 12,066 12,371 0 0 0 0

MEIN SCHIFF 5 TUI CRUISES 0 0 0 0 0 0 0 0 11 27,387 10,560 10,626

WIND STAR WINDSTAR SAIL CRUISES 18 2,184 2,178 2,140 15 1,785 1,777 1,728 18 2,387 2,359 2,364

STAR BREEZE WINDSTAR SAIL CRUISES 0 0 0 0 0 0 0 0 1 0 0 148

STAR LEGEND WINDSTAR SAIL CRUISES 0 0 0 0 0 0 0 0 1 175 172 191

STAR PRIDE WINDSTAR SAIL CRUISES 0 0 0 0 0 0 0 0 3 488 475 505

TOTAL 149 146,827 109,391 110,075 155 164,606 123,263 123,203 145 170,674 119,893 120,318

APPENDIX 3: HOME PORT CRUISE PASSENGER ACTIVITY 2014/15, 2015/16 & 2016/17 (BY VESSEL)


BARBADOS PORT INC.

Financial StatementsMarch 31, 2017

(expressed in Barbados dollars)


BarbadosPortInc.

StatementofC

hangesinEquity

Forthe

yearended

March

31,2017

(expressedin

Barbadosdollars)

6

Sharecapital$

Capital

contributions$

PortFund$

Fairvalue

reserve$

Retained

earnings$T

otal$

Balance

atMarch

31,2015100

29,145,080100,000

213,46167,457,617

96,916,258

Netincom

eforthe

year–

––

–16,064,039

16,064,039

Othercom

prehensiveincom

eforthe

year–

––

(213,461)3,072,454

2,858,993

Totalcomprehensive

income

fortheyear

––

–(213,461)

19,136,49318,923,032

Capitalinjection

(note18)

–49,538,200

––

–49,538,200

Balance

atMarch

31,2016100

78,683,280100,000

–86,594,110

165,377,490

Netincom

eforthe

year–

––

–17,924,034

17,924,034

Othercom

prehensiveincom

eforthe

year–

––

(473)269,365

268,892

Totalcomprehensive

income

fortheyear

––

–(473)

18,193,39918,193,926

Balance

atMarch

31,2017100

78,683,280100,000

(473)104,787,509

183,570,416


Barbados Port Inc.Statement of Comprehensive IncomeFor the year ended March 31, 2017


7

2017$

2016$

RevenueCargo handling 66,164,061 59,999,870Excess storage 2,014,664 2,547,940Marine revenue 8,504,346 7,284,410Passenger levy 8,087,251 7,960,524Other (note 19) 9,261,539 7,740,953

94,031,861 85,533,697

Other operating incomeRent 1,430,914 1,664,025Gain on disposal of plant and equipment 37,034 34,000Miscellaneous 2,056,855 1,870,429Interest income 86,087 240Dividend income – 13,462

3,610,890 3,582,156

Total operating income 97,642,751 89,115,853

ExpensesAdministration 10,905,376 9,860,541Staff costs (note 21) 34,274,630 36,515,413Other expenses 17,660,758 13,646,996

62,840,764 60,022,950

Other expensesWrite-off of capital works in progress (note 11) – 25,741,283

62,840,764 85,764,233

Profit from operations 34,801,987 3,351,620


Barbados Port Inc.Statement of Comprehensive Income …continuedFor the year ended March 31, 2017


8

2017$

2016$

Profit from operations 34,801,987 3,351,620Finance costs (11,054,802) (11,702,843)

Profit/(loss) before taxation and share of net income ofassociated company 23,747,185 (8,351,223)Share of net income of associated company (note 9) 368,141 403,405

Profit/(loss) before taxation 24,115,326 (7,947,818)

Taxation (charge)/credit (note 22) (6,191,292) 24,011,857

Net income for the year 17,924,034 16,064,039

Other comprehensive income:Items that will not be reclassified to income:Remeasurement of retirement benefit obligations (note 16) 359,153 3,072,454Deferred tax charge of remeasurements of retirement benefit obligations (89,788) –

Items that may be subsequently reclassified to income:Gains transferred to income on disposal of available-for-salefinancial investments – (340,382)Unrealised (loss)/gain on available-for-sale financial investments (473) 126,921

Other comprehensive income for the year 268,892 2,858,993

Total comprehensive income for the year 18,192,926 18,923,032


Barbados Port Inc.Statement of Cash FlowsFor the year ended March 31, 2017


9

2017$

2016$

Cash flows from operating activitiesIncome/(loss) before taxation 24,115,326 (7,947,818)

Adjustments for:Depreciation 12,196,569 8,219,019Gain on disposal of property, plant and equipment (37,033) (34,000)Write-off of capital works in progress – 25,741,283Gain on disposal of financial investments – (340,382)Interest and dividend income (86,087) (13,702)Finance costs 11,054,802 11,702,843Share of net income of associated company (368,141) (403,405)Pension and other post-retirement benefits 2,053,028 2,920,643Amortisation of deferred grant (211,299) (281,732)

Operating profit before working capital changes 48,717,165 39,562,749(Increase)/decrease in accounts receivable (2,431,319) 1,045,053(Increase)/decrease in other receivables and prepaid expenses (303,018) 175,160Increase in inventories (962,482) (713,072)Decrease in accounts payable and accrued liabilities (157,521) (4,251,398)

Cash generated from operations 44,862,825 35,818,492Finance costs paid (5,321,829) (6,110,615)Pension and other post-retirement benefits’ contributions (6,882,315) (3,272,480)

Net cash generated from operating activities 32,658,681 26,435,397

Cash flows from investing activitiesPurchase of property, plant and equipment (1,375,262) (5,042,648)Expenditure on capital works in progress (7,302,690) (90,593,556)Proceeds from disposal of property, plant and equipment 40,000 34,000Interest and dividend income received 86,087 34,615Purchase of financial investments (11,957,037) (7,000,008)Proceeds on disposal of financial investments 4,914,000 590,382Dividend received from associated company 337,500 300,000

Net cash used in investing activities (15,257,402) (101,677,215)

Cash flows from financing activitiesLoan received 16,351,000 71,841,644Repayment of long-term loans (18,991,518) (40,493,283)Capital injection – 49,538,200

Net cash (used in)/from financing activities (2,640,518) 80,886,561

Net increase in cash and cash equivalents 14,760,761 5,644,743

Cash and cash equivalents - beginning of year (3,945,283) (9,590,026)

Cash and cash equivalents - end of year (note 4) 10,815,478 (3,945,283)


Barbados Port Inc.Notes to Financial StatementsMarch 31, 2017


10

1 Establishment of the Barbados Port Inc.

The Barbados Port Authority was established by the Barbados Port Authority Act, Cap 285B, as amended bythe Barbados Port Authority (Amendment) Acts 1978-33 and 1987-37. The Act as initially amended wasproclaimed on January 1, 1979.

Upon the commencement of the Act on January 1, 1979 all property (other than land and buildings) belongingto the Crown and used exclusively for the purpose of the Port Department and Port Contractors (Barbados)Limited was transferred to and vested in the Authority, and all liabilities of the Port Department and PortContractors (Barbados) Limited existing at the commencement of the Act were assumed and assured by theAuthority.

The Act was repealed on December 19, 2003 and a new Act, the Barbados Port Inc. (Transfer of Managementand Vesting of Assets) Act 2003, was proclaimed.

The Act was passed:

a) To provide for the Port of Bridgetown to be managed by the Barbados Port Inc., a Company incorporatedunder the Companies Act, for the purpose of enabling the Port to operate as a commercial entity.

b) To transfer the assets and liabilities of the Government of Barbados in relation to the operation of the Portof Bridgetown to the Barbados Port Inc.

c) To repeal the Barbados Port Authority Act.

The main provisions of the Act are disclosed below.

Commencement of Operations

The Port shall be operated by the Company from the date of the commencement of this Act.

Transfer of Assets, Liabilities, Rights, etc.

For the purposes of the Act:

1. The lands of the Port shall be leased to the Company by the Crown for such period as the Crowndetermines.

2. All:

a) Assets in relation to the operation of the Port that were vested in the Authority immediately beforethe commencement of this Act;

b) Liabilities that were incurred by or on behalf of the Authority in relation to the operation of the Portand subsisting immediately before the commencement of this Act; and

c) Rights to set, collect and retain port dues and charges for the provision and use of port facilities andservices

are transferred and vested in the Company, and by virtue of this Act and without further assurance, transferor other formality are to be held with effect from the date of the commencement of this Act, by theCompany to the same extent and interest and in the same manner as they were vested in or held by theAuthority.




11

1 Establishment of the Barbados Port Inc. …continued

Transfer of Assets, Liabilities, Rights, etc. …continued

All contracts entered into by or on behalf of the Authority in relation to the operation of the Port before thecommencement of this Act, shall be deemed to have been entered into by or on behalf of the Company from thedate of the commencement of this Act.

In respect of the operation of the Port:

a) All rights, privileges, duties or obligations conferred or imposed upon the Authority; and

b) All powers and remedies as to the taking and resisting of legal proceedings for the ascertaining, perfectingor enforcing of all rights or liabilities vested in the Authority immediately before the commencement ofthis Act, shall be deemed to be conferred or imposed on the Company.

The Company’s principal place of business is at University Row, St. Michael, Barbados.

Financial statement presentation

Consistent with the provisions of Section 355.7 of the Companies Act Cap 308, which addressed thepreservation of a Statutory Company incorporated under the Companies Act, and in accordance with thesubstance of the corporatisation plan of the Port, these financial statements were presented from the year toDecember 31, 2003 as if the Barbados Port Authority had been “continued” as Barbados Port Inc.

During 2013, the Company changed its year end from December 31 to March 31, the year end of theGovernment of Barbados.

2 Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below.These policies have been consistently applied to all periods presented, unless otherwise stated.

a) Basis of preparation

The financial statements of the Company have been prepared in accordance with International FinancialReporting Standards (IFRS) under the historical cost convention, as modified by the revaluation ofavailable-for-sale financial investments as disclosed in note 2(h).

The preparation of financial statements in conformity with IFRS requires the use of certain criticalaccounting estimates. It also requires management to exercise its judgement in the process of applying theCompany’s accounting policies. The areas involving a higher degree of judgement or complexity, or areaswhere assumptions and estimates are significant to the financial statements, are disclosed in Note 3.




12

2 Significant accounting policies …continued

a) Basis of preparation …continued

i) New standards, amendments and interpretations to existing standards effective in the 2017 financialyear

The following amendment to published standards is applicable to the financial period. Theamendment below did not have a significant impact on the financial statements:

Amendment to IAS 1, ‘Presentation of financial statements’ on the disclosure initiative (effectiveJanuary 1, 2016). These amendments are a part of the IASB initiative to improve presentation anddisclosure in financial reports.

ii) New standards, amendments and interpretations to existing standards effective in the 2017 financialyear, but are not relevant

Amendment to IFRS 10 and IAS 28 on investment entities applying the consolidation exception(effective January 1, 2016).

Amendment to IFRS 11, ‘Joint arrangements’ on acquisition of an interest in a joint operation(effective January 1, 2016).

IFRS 14, ‘Regulatory deferral accounts’ (effective January 1, 2016).

Amendments to IAS 16, ‘Property, plant and equipment’, and IAS 41, ‘Agriculture’, regardingbearer plant (effective January 1, 2016).

Amendment to IAS 16, ‘Property, plant and equipment’ and IAS 38,’Intangible assets’, ondepreciation and amortisation (effective January 1, 2016).

Amendments to IAS 27, ‘Separate financial statements’ on the equity method (effectiveJanuary 1, 2016).




13


a) Basis of preparation …continued

iii) New standards, amendments and interpretations to existing standards that are not yet effective butwill be relevant to the Company

Management has reviewed the new standards, amendments and interpretations to existing standardsthat are not yet effective and has determined that the following are relevant to the Company’soperations. The Company has not early adopted the new standards, amendments and interpretationsnor has the Company as yet assessed their full impact.

IAS 7 ‘Statement of cash flows’ (Amendments) on the disclosure initiative. Theseamendments are as part of the IASB initiative to improve presentation and disclosure infinancial reports (effective January 1, 2017).

IFRS 9 ‘Financial instruments’ simplifies the mixed measurement model and establishes twoprimary measurement categories for financial assets: amortised cost and fair valuewhere the basis of classification depends on the Company’s business model and thecontractual cash flow characteristics of the financial asset (effective January 1, 2018).

IFRS 15 ‘Revenue from contracts with customers’. This standard deals with revenue recognitionand establishes principles for reporting useful information to users of financialstatements about the nature, amount, timing and uncertainty of revenue and cash flowsarising from an entity’s contracts with customers (effective January 1, 2017).

IFRS 15 Revenue from contracts with customers (Amendments). These amendments compriseclarifications of the guidance on identifying performance obligations, accounting forlicenses of intellectual property and the principal versus agent assessment (gross versusnet revenue presentation). The IASB has also included additional practical expedientsrelated to transition to the new revenue standard.

IFRS 16 Leases. This standard replaces the current guidance in IAS 17 and is a far reachingchange in accounting by lessees in particular. Under IAS 17, lessees are required tomake a distinction between a finance lease (on balance sheet) and an operating lease(off balance sheet) to recognise a lease liability reflecting future lease payments and a‘right-of-use asset’ for virtually all lease contracts (effective January 1, 2019).

b) Inventories

Inventories are valued at the lower of cost and net realisable value. Cost is determined on the weightedaverage cost method. Net realisable value is the estimated selling price in the ordinary course of business,less applicable variable selling expenses. Provision is made for obsolete, slow-moving and defectiveitems.




14


c) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.Cost includes expenditure that is directly attributable to the acquisition of the item. Assets acquired underlease arrangements are stated at an amount equal to the lower of fair value and the present value of theminimum lease payments at the inception of the lease, less accumulated depreciation and impairmentlosses. Land is not depreciated.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flow tothe Company and the cost of the item can be measured reliably. All other repairs and maintenance arecharged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation of property, plant and equipment is provided on a straight-line basis at rates which areexpected to write off the assets over their estimated useful lives. The annual rates used for this purpose areas follows:

Leased assetsWharves, breakwater and crossberths - 2%Administration building - 2%Transit sheds and workshops - 4%Other buildings - 5%

Other assetsWatercraft - 3% and 5%Cargo handling equipment - 10% and 6⅔% Marine equipment and navigational aids - 10%Motor vehicles - 20%Pallets - 33⅓% Other equipment and furniture - 10%Port expansion asset - 2%

The assets’ useful lives are reviewed, and adjusted if appropriate, at the date of each statement of financialposition.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carryingamount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These areincluded in the statement of comprehensive income.




15


d) Foreign currency translation

i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which the Company operates (‘the functional currency’). The financial statements arepresented in Barbados dollars, which is the Company’s functional and presentation currency.

ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange ratesprevailing at the dates of the transactions. Foreign exchange gains and losses resulting from thesettlement of such transactions and from the translation at year-end exchange rates of monetary assetsand liabilities denominated in foreign currencies are recognised in the statement of comprehensiveincome.

Translation differences on non-monetary financial assets such as equities classified as available-for-sale are included in the fair value reserve in equity.

e) Taxation

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted atthe date of the statement of financial position. Management periodically evaluates positions taken in taxreturns with respect to situations where applicable tax regulations are subject to interpretation andestablishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

The Company follows the liability method of accounting for deferred tax whereby all temporarydifferences arising between the tax bases of assets and liabilities and their carrying values for financialreporting purposes are provided for at the corporation tax rates expected to apply when the related deferredincome tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are only recognised when it is probable that taxable income will be available againstwhich the assets may be utilised.




16


f) Investment in associated company

Associates are entities over which the Company has significant influence but not control, generallyaccompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates areaccounted for using the equity method of accounting and are initially recognised at cost. The Company'sinvestment in associated company includes goodwill (net of any accumulated impairment loss) identifiedon acquisition.

The Company's share of its associates’ post-acquisition profits or losses and post-acquisition movements isrecognised in the statement of comprehensive income. The cumulative post-acquisition movements inreserves are adjusted against the carrying amount of the investment. When the Company’s share of lossesin an associate equals or exceeds its interest in the associate, including any other unsecured receivables,the Company does not recognise further losses, unless it has incurred obligations or made payments onbehalf of the associate.

The Company determines at each reporting date whether there is any objective evidence that theinvestment in the associate is impaired. If this is the case, the Company calculates the amount ofimpairment as the difference between the recoverable amount of the associate and its carrying value andrecognises the amount in share of income of associated company, in the statement of comprehensiveincome.

g) Financial investments

The Company classifies its financial assets in the following categories:

i) Available-for-saleii) Loans and receivablesiii) Held-to-maturity

Management determines the classification of its financial assets at initial recognition. The classificationdepends on the purpose for which the financial assets were acquired.

i) Available-for-sale

Available-for-sale financial assets are intended to be held for an indefinite period of time and henceare included in non-current assets unless management intends to dispose of the investment withintwelve months of the statement of financial position date. They may be sold in response to needs forliquidity or changes in interest rates, exchange rates or equity prices. They are measured initially atfair value and are subsequently remeasured at their fair value based on quoted bid prices. Investmentswithout quoted prices are carried at management’s valuation based on the net assets of the entity netof any provisions made where there is an indication of impairment. Unrealised gains and losses arerecorded in other comprehensive income. Either on the disposal of the asset or if the asset isdetermined to be impaired, the previously recorded gain or loss is transferred to the statement ofcomprehensive income.




17


g) Financial investments …continued

ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market. These assets are initially measured at fair value which is the cashconsideration to originate or purchase the loan plus transaction costs - and are subsequently measuredat amortised cost using the effective interest method less provision for impairment. The Company’sloans and receivables comprise government bonds and fixed deposits.

iii) Held-to-maturity

Held-to-maturity financial assets are non-derivative financial instruments with fixed or determinablepayments and fixed maturities that management has both the intent and ability to hold to maturity.They are initially recognised at fair value including transaction costs and subsequently measured atamortised cost, using the effective interest method less provision for impairment if any.

Purchases and sales of investments are recognised on the trade date which is the date that the Companycommits to purchase or sell the asset. Cost of purchase includes transaction costs.

Financial assets are de-recognised when the rights to receive cash flows from the investments have expiredor have been transferred and the Company has transferred substantially all risks and rewards of ownership.

Financial assets

A financial asset is considered impaired if its carrying amount exceeds its estimated recoverable amount.The impairment loss for assets carried at amortised cost is calculated as the difference between thecarrying amount and the present value of expected future cash flows discounted at the original effectiveinterest rate. The impairment loss for an available-for-sale equity security is recognised in income if therehas been a significant or prolonged decline in its recoverable amount below cost. Significant or prolongeddeclines are assessed in relation to the period of time and extent to which the fair value of the equitysecurity is less than its cost.

Except for equity securities, if in a subsequent period, the amount of the impairment loss decreases and thedecrease can be related objectively to an event occurring after the impairment was recognised, thepreviously recognised impairment loss is reversed, and the amount of the reversal is recognised in income.For equity securities, any subsequent increases in fair value after an impairment has occurred arerecognised in other comprehensive income.

Financial liabilities

The Company’s financial liabilities are initially measured at fair value, net of transaction costs, and aresubsequently measured at amortised cost using the effective interest method. At the date of the statementof financial position, the following items were classified as financial liabilities: bank overdraft, accountspayable, due to associated company and long-term loans.




18


h) Employee benefits

The Company operates both a defined benefit and a defined contribution pension plan.

i) Defined contribution plan

A defined contribution plan is a pension plan under which the Company pays fixed contributions intoa separate entity. For defined contribution plans, the Company pays contributions to administeredpension insurance plans. The Company has no further payment obligations once the contributionshave been paid. The contributions are recognised as employee benefit expense when they are due.Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in thefuture payments is available.

ii) Defined benefit plan

A defined benefit plan is any plan other than a defined contribution plan. The Company operates adefined benefit pension plan for its employees, the assets of which are held in a separate fundadministered by a Trustee. The scheme is generally funded through payments from the employeesand the Company, and contributions are determined by full independent actuarial calculations everythree years and interim valuations in years where a full valuation has not been performed.

Employee benefits

The liability recognised in the statement of financial position in respect of defined benefit pensionplans is the present value of the defined benefit obligation at the end of the reporting period less thefair value of plan assets. The defined benefit obligation is calculated annually by an independentactuary using the projected unit credit method. The present value of the defined benefit obligation isdetermined by discounting the estimated future cash outflows using interest rates of high-qualitygovernment bonds that are denominated in the currency in which the benefits will be paid, and thathave terms to maturity approximating to the terms of the related pension obligation.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptionsare charged or credited to equity in other comprehensive income in the period in which they arise.Past-service costs are recognised immediately in the statement of comprehensive income.

iii) Other post-retirement benefit obligations

The Company also provides post-retirement medical benefits to their retirees. Fifty percent to sixtypercent of the premium is funded by the Company, dependent on the category of employee. Theentitlement to these benefits is conditional on the employee remaining in service up to retirement ageand the completion of a minimum service period. The expected costs of these benefits are accruedover the period of employment using the same accounting methodology as used for the Company’sdefined benefit pension plan.




19


i) Revenue recognition

i) Cargo handling

Revenue generated from inbound cargo handling is recognised on the delivery of cargo to theconsignees or on delivery of auctioned cargo to the buyer.

Revenue generated from outbound cargo and other revenue is recognised on the basis of the usage ofthe facilities and services provided by the Company.

ii) Excess storage

Revenue generated from excess storage is recognised on the basis of the usage of the storagefacilities, which ordinarily exceeds the free storage period at the Port.

iii) Marine revenue

Marine revenue is generated on vessels making a Port call in Barbados on the basis of the length ornet registered tonnage of the vessel and is recognised as earned.

iv) Passenger levy

Passenger levy is applied to the greater of embarking and disembarking passengers per cruise vesselat the Bridgetown Port and is recognised as earned.

v) Interest income

Interest income is recognised in the statement of comprehensive income on the accrual basis, usingthe effective interest method.

vi) Dividend income

Dividend income is recognised when the Company’s right to receive payment is established.

vii) Rental income

Rental income is recognised on an accrual basis.

viii) Other revenue

Other revenue is recognised on an accrual basis.




20


j) Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually forimpairment. Assets that are subject to amortisation are reviewed for impairment whenever events orchanges in circumstances indicate that the carrying amount may not be recoverable. An impairment loss isrecognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Therecoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

k) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at the anticipatedrealisable value. A provision for impairment of trade receivables is established when there is objectiveevidence that the Company will not be able to collect all amounts due according to the original terms ofreceivables. Significant financial difficulties of the debtor and default or delinquency in payments areconsidered indicators that the trade receivable is impaired. The amount of the provision is the differencebetween the carrying amount and the anticipated realisable value. The carrying amount of the asset isreduced through the use of the provision for impairment of receivables and the amount of loss isrecognised in the statement of comprehensive income within administration expenses. When a tradereceivable is uncollectible, it is written off against the provision for impairment of receivables and anysubsequent recoveries of amounts previously written off are credited against administration expenses.

l) Cash resources

Cash resources comprise cash and bank balances and short-term deposits with original maturities of threemonths or less and bank overdrafts.

m) Accounts payable

Accounts payable are obligations to pay for goods or services that have been acquired in the ordinarycourse of business from suppliers. Accounts payable are classified as current liabilities if payment is duewithin one year or less, if not, they are presented as non-current liabilities. Accounts payable arerecognised initially at fair value and subsequently measured at amortised cost using the effective interestmethod.

n) Long-term loans

Long-term loans are recognised initially at fair value, net of transaction costs incurred. Long-term loansare subsequently stated at amortised cost and any difference between the net proceeds and the redemptionvalue is recognised in the statement of comprehensive income over the period of the long-term loans usingthe effective interest method. Associated costs are classified as finance costs in the statement ofcomprehensive income. Long-term loans due within twelve months of the date of the statement offinancial position are classified as current liabilities.

General and specific finance costs directly attributable to the acquisition, construction or production ofqualifying assets, which are assets that necessarily take a substantial period of time to get ready for theirintended use are added to the cost of those assets, until such time as the assets are substantially ready fortheir intended use. All other finance costs are recognised in the statement of comprehensive income in theperiod in which they are incurred.




21


o) Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor areclassified as operating leases. Payments made under operating leases are charged to the statement ofcomprehensive income on a straight-line basis over the period of the lease.

Assets leased out under operating leases are included in property, plant and equipment in the statement offinancial position. They are depreciated over their expected useful lives on a basis consistent with similarproperty, plant and equipment. Rental income is recognised on a straight-line basis over the lease term.

p) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation, as a result ofpast events, if it is probable that an outflow of resources will be required to settle the obligation and areliable estimate of the amount can be made.

q) Capital grants

Grants related to assets, including non-monetary grants at fair value, are capitalised and presented in thestatement of financial position as deferred grants. These grants are amortised over the expected usefullives of the related assets.

Grants relating to costs are deferred and recognised in the statement of comprehensive income over theperiod necessary to match them with the costs that they are intended to compensate.

3 Critical accounting estimates and judgements

The development of estimates and the exercise of judgement in applying accounting policies may have amaterial impact on reported assets, liabilities, revenues and expenses. The items which may have a significanteffect on the Company’s financial statements are set out below:

Pension benefits

The cost of the defined benefit pension plan and other post-employment medical benefits is determined usingactuarial valuations. The actuarial valuation involves making assumptions about discount rates, futurepromotional and inflationary salary increases, proportion of employees opting for early retirement, futurechanges in the NIS ceiling and mortality. Due to the long-term nature of these plans, such estimates are subjectto significant uncertainty. Assumptions used are disclosed in Note 16.




22

4 Cash resources

2017$

2016$

Cash at bank 29,644,486 16,396,616Government of Barbados Treasury Bill #972 06/2017 1,587,680 –

31,232,166 16,396,616Less: non-current restricted cash (note 8) (11,385,699) (13,416,679)

Cash resources 19,846,467 2,979,937Less: current restricted cash (see below) (9,030,989) –Less: bank overdraft – (6,925,220)

Cash and cash equivalents 10,815,478 (3,945,283)

Included in cash at bank is $20,416,688 (2016 - $13,416,679) held in a Debt Service Reserve Account atRepublic Finance & Trust (Barbados) Limited to facilitate settlement of principal and interest in relation to the$70 million bond issue (note 14) as follows:

2017$

2016$

Debt Service Reserve Account 20,416,688 13,416,679Less: non-current amounts classified in financial

investments (note 8) (11,385,699) (13,416,679)

Current amounts classified in cash resources 9,030,989 –

Significant concentrations of cash resources are as follows:

2017$

2016$

First Citizens Bank (Barbados) Limited (long term issue creditrating BBB by Standard & Poors) 5,570,437 2,909,737Republic Bank (Barbados) Limited (unrated) 3,657,361 (6,857,337)Republic Finance & Trust (Barbados) Corporation 20,416,688 13,416,679

The following have been pledged as security as at March 31, 2017:

i) First legal debenture over the fixed and floating assets of the Company stamped to cover the amount of$14,400,000.

ii) Hypothecation of term deposit #2051620 in the amount of $8,000.iii) Hypothecation of term deposit in the amount of $12,000.iv) Letter of Comfort from the Government of Barbados to the extent of $10,000,000.




23

5 Accounts receivable

2017$

2016$

Trade receivables 9,667,825 7,208,671Less: Provision for impairment of receivables (745,866) (718,031)

8,921,959 6,490,640

As at year end, trade receivables of $7,184,899 (2016 - $5,243,511) were fully performing.

Trade receivables that are less than three months past due are not considered impaired. As at year end tradereceivables of $1,737,060 (2016 - $1,247,129) were past due but not considered impaired. The ageing analysisof these receivables is as follows:

2017$

2016$

Over 30 days 588,230 93,334Over 60 days 520,959 291,775Over 90 days 627,871 862,020

1,737,060 1,247,129

As at year end, trade receivables of $745,866 (2016 - $718,031) were past due, impaired and provided for.

2017$

2016$

Over 90 days 745,866 718,031

Total trade receivables 9,667,825 7,208,671

The movement in the provision for impairment of receivables is as follows:

2017$

2016$

Balance - beginning of year 718,031 718,016Increase in provision 27,835 15

Balance - end of year 745,866 718,031

The carrying value of accounts receivable is considered to approximate fair value because of their short termmaturity.

The Company does not hold any collateral on its accounts receivable.




24

6 Other receivables and prepaid expenses

2017$

2016$

Staff receivables 230,933 328,451Other 501,600 28,839

Other receivables 732,533 357,290Prepaid expenses 506,698 578,923

1,239,231 936,213

No provision for impairment of other receivables was required in 2017 or 2016.

7 Inventories

2017$

2016$

Fuel 23,283 15,953Equipment spares 4,763,732 3,814,225Stationery 29,308 23,663

4,816,323 3,853,841Less: provision for obsolescence (421,228) (421,228)

4,395,095 3,432,613

The Company did not write off inventory in 2017 or 2016.




25

8 Financial investments

2017$

2016$

Available-for-sale:Insurance Corporation of Barbados Limited (Equities)- at market value

At beginning of the year – 463,461Proceeds received on sale of financial investment – (590,382)Unrealised gain included in other comprehensive income – 126,921

At end of year – –

Barbados Ice Cream Company Limited (Equities) - at market value

At beginning of the year – –Purchases at cost 42,942 –Unrealised loss included in other comprehensive income (473) –

At end of year 42,469 –

Loans and receivables:Debt Service Reserve Account atRepublic Finance & Trust (Barbados) Limited (note 4) 11,385,699 13,416,679Ansa Finance Lease Reserve Account at First Citizens Bank 995,000 995,000Term deposits at Republic Bank (Barbados) Limited 23,199 23,111

12,403,898 14,434,790

12,446,367 14,434,790

The Ansa Finance Lease Reserve Account is being held in connection with a financing lease from AnsaMerchant Bank. Term deposits at Republic Bank (Barbados) Limited have been pledged as security. The DebtService Reserve at Republic Finance & Trust (Barbados) Limited is held to facilitate settlement of the non-current portion of the principal outstanding and future interest payments on the $70 million bond. The totalfund held in the account at year end were $20,416,688 (2016 - $13,416,679) (note 4).

The maturity dates of the Company’s loans and receivables are tied to the long-term loans against which theyare secured.

No provision for impairment of financial investments was required in 2017 and 2016.

The fair value of loans and receivables at year end was $12,446,367 (2016 - $14,434,790).




26

9 Investment in associated company

2017$

2016$

Bridgetown Cruise Terminals, Inc.750,000 Class ‘A’ common shares (30% interest) - at cost 750,000 750,000Increase/(decrease) in equity value over cost to end of previous year 29,618 (73,787)

779,618 676,213

Share of net income for the year 368,141 403,405Dividends received (337,500) (300,000)

Balance end of year 810,259 779,618

The results of the associated company as of March 31, 2017 and 2016 are as follows:

Assets$

Liabilities$

Revenues$

NetIncome

$

2017 3,981,289 1,280,426 4,285,498 1,227,138

2016 3,744,102 1,145,376 3,976,727 1,344,684


BarbadosPortInc.

Notesto

FinancialStatements

March

31,2017

(expressedin

Barbadosdollars)

27

10Property,plantand

equipment

Land$

Buildings,

sheds,w

orkshopand

incinerator$

Wharfs

andbreakw

ater$

Watercraft,tugs,etc.$

Cargo

handlingequipm

ent,vehicles,other

equipmentand

navigationalaids$

Portexpansion

asset$T

otal$A

tMarch

31,2015

Cost

58,709,26128,193,886

23,503,1674,956,680

102,443,11678,068,622

295,874,732A

ccumulated

depreciation–

(21,397,268)(14,837,740)

(2,898,783)(89,007,067)

(11,317,170)(139,458,028)

Netbook

amount

58,709,2616,796,618

8,665,4272,057,897

13,436,04966,751,452

156,416,704

Year

endedM

arch31,2016

Opening

netbookam

ount58,709,261

6,796,6188,665,427

2,057,89713,436,049

66,751,452156,416,704

Transferredfrom

capitalworksin

progress–

390,71764,180,888

–1,793,196

–66,364,801

Additions

––

8,941–

5,033,707–

5,042,648D

isposals–

––

–(199,584)

–(199,584)

Accum

ulateddepreciation

ondisposals

––

––

199,584–

199,584D

epreciationforyear

–(631,974)

(1,753,860)(263,230)

(4,008,583)(1,561,372)

(8,219,019)

Closing

netbookam

ount58,709,261

6,555,36171,101,396

1,794,66716,254,369

65,190,080219,605,134

AtM

arch31,2016

Cost

58,709,26128,584,603

87,692,9964,956,680

109,070,43578,068,622

367,082,597A

ccumulated

depreciation–

(22,029,242)(16,591,600)

(3,162,013)(92,816,066)

(12,878,542)(147,477,463)

Netbook

amount

58,709,2616,555,361

71,101,3961,794,667

16,254,36965,190,080

219,605,134


BarbadosPortInc.

Notesto

FinancialStatements

March

31,2017

(expressedin

Barbadosdollars)

28

10Property,plantand

equipment…

continued

Land$

Buildings,

sheds,w

orkshopand

incinerator$

Wharfs

andbreakw

ater$

Watercraft,tugs,etc.$

Cargo

handlingequipm

ent,vehicles,other

equipmentand

navigationalaids$

Portexpansion

asset$T

otal$

Year

endedM

arch31,2017

Opening

netbookam

ount58,709,261

6,555,36171,101,396

1,794,66716,254,369

65,190,080219,605,134

Transferredfrom

capitalworks

inprogress

1,761,300634,271

–203,810

42,042,853–

44,642,234A

dditions394,569

16,586–

–964,107

–1,375,262

Reclassification

–(100,596)

––

100,596–

–D

isposals–

––

–(188,807)

–(188,807)

Accum

ulateddepreciation

ondisposals

––

––

185,840–

185,840D

epreciationforyear

–(611,269)

(1,753,860)(264,079)

(8,005,989)(1,561,372)

(12,196,569)

Closing

netbookam

ount60,865,130

6,494,35369,347,536

1,734,39851,352,969

63,628,708253,423,094

AtM

arch31,2017

Cost

60,865,13029,134,864

87,692,9965,160,490

151,989,18478,068,622

412,911,286A

ccumulated

depreciation–

(22,640,511)(18,345,460)

(3,426,092)(100,636,215)

(14,439,914)(159,488,192)

Netbook

amount

60,865,1306,494,353

69,347,5361,734,398

51,352,96963,628,708

253,423,094




29

11 Capital works in progress

Cruise Pierproject

$

Berth 5project

$Other

$Total

$

At March 31, 2015

Cost 25,741,283 14,515,138 2,696,421 42,952,842

Year ended March 31, 2016

Opening net book amount 25,741,283 14,515,138 2,696,421 42,952,842Additions – 48,353,290 42,530,725 90,884,015Transfers to property, plant and equipment – (62,868,428) (3,496,373) (66,364,801)Expensed (25,741,283) – (290,459) (26,031,742)

Closing net book amount – – 41,440,314 41,440,314

At March 31, 2016

Cost – – 41,440,314 41,440,314

Year ended March 31, 2017

Opening net book amount – – 41,440,314 41,440,314Additions – – 7,302,690 7,302,690Transfers to property, plant and equipment – – (44,642,234) (44,642,234)Expensed – – (62,460) (62,460)

Closing net book amount – – 4,038,310 4,038,310

At March 31, 2017

Cost – – 4,038,310 4,038,310

Between 2012 and 2016, the Company incurred $25,741,283 on the design phase of the Cruise Pier project inanticipation of negotiating financing arrangements for the US $220 million project. As a result of ongoinguncertainty with respect to securing financing, the Company expensed the related costs in the prior year.

During 2016, the Company completed construction of an extension to Berth 5 which allows the Port to receivelarger cargo and cruise vessels. Yachting facilities in the “Shallow Draught” were also completed.




30

12 Deferred tax asset

2017$

2016$

Deferred tax asset - beginning of year 33,026,178 9,014,321Deferred tax (charge)/credit (note 22) (6,191,292) 24,011,857Deferred tax charge relating to components ofother comprehensive income (89,788) –

Deferred tax asset - end of year 26,745,098 33,026,178

The deferred tax asset consists of the following components:

2017$

2016$

Delayed tax depreciation 69,870,446 63,311,843Retirement benefit obligations 4,568,382 9,756,822Qualifying capital expenditure (note 23) 32,541,564 59,036,047

106,980,392 132,104,712

Deferred tax asset at corporation tax rate of 25% (2016 - 25%) 26,745,098 33,026,178

The expiry dates of qualifying capital expenditure are disclosed in Note 23. The other temporary differenceshave no expiry dates.

13 Accounts payable and accrued liabilities

2017$

2016$

Accounts payable 1,868,377 1,664,312Accrued liabilities 3,379,491 3,568,937Interest payable 75,602 174,509VAT payable 792,969 866,202

6,116,439 6,273,960




31

14 Long-term loans

2017$

2016$

i) RBC Royal Bank Barbados - Port Rehabilitation Project 4,480,112 7,466,854ii) Republic Finance & Trust (Barbados) Limited - $50M 12,717,786 20,489,901iii) Republic Finance & Trust (Barbados) Limited - $70M 79,878,436 57,856,922iv) Ansa Finance Lease Liability 40,534,309 48,766,970

137,610,643 134,580,647Less: current portion (29,198,109) (18,991,518)

108,412,534 115,589,129

i) This bond was obtained from RBC Royal Bank (Barbados) Limited in order to assist in the funding of thePort Rehabilitation Project. It commenced on July 1, 2003 and bears interest fixed at the rate of 6.75%.The bond of $34,000,000 is repayable by 26 semi-annual instalments of principal and interest from theperiod December 31, 2005 to July 1, 2018. Interest capitalised during the moratorium period of July 2003to June 2005 amounted to $4,827,641. Repayment of the bond commenced on December 31, 2005 and theoutstanding amount owed to the Bank is $4,480,112 (2016 - $7,466,854). The bond is secured by aGovernment of Barbados guarantee.

ii) This bond facility arranged by Republic Finance & Trust (Barbados) Limited was obtained on October 31,2008 to refinance a portion of existing debt, including pension liabilities and to fund ongoing capitalworks. The bond of $50,000,000 is for a term of 10 years and bears interest at the rate of 7.0% fixed.Interest is to be paid quarterly during the term of the facility, with a moratorium on principal repaymentsduring the first three years. Commencing December 31, 2011 and ending September 30, 2018, the bond isto be repaid by 28 blended quarterly payments of $2,274,076. The outstanding amount owed to thebondholders is $12,717,786 (2016 - $20,489,901). The bond facility is secured by a Government ofBarbados guarantee.

iii) This bond was issued through Republic Finance & Trust (Barbados) Limited for the purposes ofrefinancing existing loans and working capital management. As at March 31, 2017, net subscriptionstotalled $70,000,000 (2016 - $53,649,000) and capitalised interest to March 31, 2017 totalled $9,878,436(2016 - $4,207,922). The bond bears interest fixed at 7.5%, with a moratorium on principal and interestpayments for the first 3 years, during which interest is capitalised. In year 4, amortised quarterlypayments of principal and interest will commence. This bond is secured by a mortgage over the fixed andfloating assets of the Company stamped to cover $87,500,000; a charge over the Debt Service ReserveAccount funded at $7,000,000 per annum; and a letter of comfort from the Government of Barbados to theextent of $70,000,000. The total in the Debt Service Reserve Account at year end was $20,416,688(note 4).




32

14 Long-term loans …continued

iv) This finance lease, arranged and financed through ANSA Merchant Bank Limited was entered into for thepurchase of operational equipment. The face value of the lease is US$23,396,494 which represents 100%of the cost of the equipment being leased. The lease bears interest at the rate of 7.25%; with a moratoriumon principal and interest payments for the first 18 months, during which interest is capitalised.

Monthly lease payments of $958,189 commenced on November 11, 2015. The lease is secured by a letterof comfort from the Government of Barbados, a charge over the Ansa Finance Lease Reserve Account,monthly assignment of US$229,594 in revenues and a sale option agreement which will entitle the lessorto require the Government of Barbados to purchase the equipment at a fixed price in the event of defaultby the Company.

2017$

2016$

Gross finance lease liabilities - minimum lease payments

No later than 1 year 11,498,272 11,498,272Later than 1 year and no later than 5 years 35,453,004 45,993,086Later than 5 years – 958,189

46,951,276 58,449,547Future finance charges on finance lease liabilities (6,416,967) (9,682,577)

Present value of finance lease liabilities: 40,534,309 48,766,970

The present value of finance lease liabilities is as follows:

No later than 1 year 11,059,173 11,059,173Later than 1 year and no later than 5 years 29,475,136 37,044,241Later than 5 years – 663,556

40,534,309 48,766,970

The maturity of loan balances has been disclosed in note 24 (a)(iii).

The fair value of the Company’s fixed rate borrowings was $141,925,064 (2016 - $141,355,320) at the end ofthe year.




33

15 Deferred capital grant

The Company has obtained capital grants from the Barbados Competitiveness Programme Implementation Unitto partly fund the acquisition of the Klein Port Management Systems, as follows:

2017$

2016$

Balance - beginning of year 211,298 493,030Amortisation (211,298) (281,732)

Balance - end of year – 211,298

The system is being amortised over its useful life of four years.

16 Retirement benefit obligations

The Company maintained a non-contributory defined benefit plan with the Insurance Corporation of BarbadosLimited until November 30, 2005. Employees were eligible to join that plan on January 1 following one year’scontinuous service. The Company withdrew from this Statutory Corporation Pension Fund (SCPF) in order toestablish a new plan in keeping with the requirements of the Barbados Port Inc. (Transfer of Management andVesting of Assets) Act 2003. The Company created a new Defined Benefit (DB) Plan for employees who werepreviously part of the SCPF, as well as a Defined Contribution (DC) Plan for new employees.

The Company also offers post-retirement medical benefits to its employees, pensioners and their dependents.These medical benefits are offered under a scheme which is insured with an insurance provider. Period-endsurplus and obligations are as follows:

2017$

2016$

Pension plan (480,309) 5,051,344Post-retirement medical benefits 5,048,691 4,705,478

4,568,382 9,756,822

Pension plan

The amounts recognised in the statement of financial position for the pension plan (surplus)/liability are asfollows:

2017$

2016$

Present value of funded obligations 61,162,450 58,679,357Fair value of plan assets (61,642,759) (53,628,013)

Pension plan (surplus)/liability (480,309) 5,051,344




34

16 Retirement benefit obligations …continued

Pension plan …continued

Changes in the present value of funded obligations are as follows:

2017$

2016$

Present value of funded obligations - beginning of year 58,679,357 61,007,142Current service cost 1,320,910 1,542,450Interest cost 4,459,216 4,528,442Past service cost – 332,259Benefits paid (3,603,093) (6,693,706)Actuarial losses/(gains) on retirement benefit obligations 306,060 (2,037,230)

Present value of funded obligations - end of year 61,162,450 58,679,357

Changes in the fair value of plan assets are as follows:

2017$

2016$

Plan assets - beginning of year 53,628,013 52,525,187Expected return on plan assets 4,278,700 3,934,533Contributions - total 6,765,136 3,179,690Benefits paid (3,603,093) (6,693,706)Actuarial gains on plan assets 574,003 682,309

Plan assets - end of year 61,642,759 53,628,013

Movements in the net liability recognised in the statement of financial position:

2017$

2016$

Net liability - beginning of year 5,051,344 8,481,955Contributions paid (6,765,136) (3,179,690)Expense recognised in the statement of comprehensive income 1,501,426 2,468,618Actuarial gain recognised in the statement of othercomprehensive income (267,943) (2,719,539)

Net (surplus)/liability - end of year (480,309) 5,051,344




35



Expense recognised in the statement of comprehensive income:

2017$

2016$

Current service cost 1,320,910 1,542,450Interest cost 4,459,216 4,528,442Past service cost – 332,259Expected return on plan assets (4,278,700) (3,934,533)

1,501,426 2,468,618

Actual return on plan assets 4,852,704 4,616,843

Expense recognised in the statement of other comprehensive income:

2017$

2016$

Actuarial (losses)/gains on retirement benefit obligations (306,060) 2,037,230Return on plan assets excluding amounts included in interest expense 574,003 682,309

267,943 2,719,539

2017%

2016%

Plan assets are comprised as follows:Bonds 49.9 46.7Equities 43.0 31.3Deposits 4.9 12.0Other assets 2.2 10.0

Net assets 100.0 100.0




36



Retirement Benefit Obligations

Through its defined benefit pension plan, the Company is exposed to a number of risks, the most significant ofwhich are detailed below:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to Government of Barbados bondyields; if plan assets underperform this yield, this will create a deficit. The plan holds a significant proportionof equities, which are expected to outperform government bonds in the long-term while providing volatility andrisk in the short-term.

The pension investment committee invests the funds for the defined benefits section of the plan and amends theasset allocation as necessary to meet the objectives. The bonds held by the plan represent primarilyinvestments in Government of Barbados securities. There are limited (6%) (2015 - 6%) investments incorporate bonds.

The Company believes that due to the long-term nature of the plan liabilities, a level of continuing equityinvestment is an appropriate element of the Company’s long term strategy to manage the plan efficiently.

Changes in bond yields

A decrease in Government of Barbados bond yields will increase plan liabilities, although this will be partiallyoffset by an increase in the value of the plan’s bond holdings.

Life expectancy

The primary obligation of the plan is to provide benefits for the life of the member. As such increases in lifeexpectancy will result in an increase in the plan’s liabilities. A sensitivity analysis of changes in lifeexpectancy indicates this risk is not very material.

Expected contributions for the year ending March 31, 2017 are $7,070,974.

The weighted average duration of the defined benefit plan is 12.84 (2016 - 12.69) years.

Expected maturity analysis of undiscounted pension benefits:

Lessthan a year

$m

Between1-2 years

$m

Between2-5 years

$m

Over5 years

$mTotal

$m

Pension benefits 3.85 4.79 14.52 26.60 49.76




37


Life expectancy …continued

Principal actuarial assumptions used for accounting purposes were:

2017%

2016%

Discount rate 7.75 7.75Future promotional salary increases 2.00 2.00Future inflationary salary increases 3.00 3.00Proportion of employees opting for early retirement 10.00 10.00Future changes in NIS ceiling 3.50 3.50Mortality AA AA

The sensitivity of the present value of funded obligations to changes in the weighted principal assumptions is asfollows:

Impact on present value of funded obligations

Change inassumption

Increase inassumption

Decrease inassumption

Discount rate 1% (5,873,814) 7,080,949Salary growth rate 0.5% 2,094,065 (1,846,709)Life expectancy 1 year 3,277,350 n/a

The above sensitivity analyses are based on a change in an assumption while holding all other assumptionsconstant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.When calculating the sensitivity of the obligations to significant actuarial assumptions, the same method(present value of the funded obligations calculated with the projected unit credit method at the end of the year)has been applied as when calculating the pension plan liability recognised within the statement of financialposition.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared tothe previous year.

Post-retirement medical benefits

The amounts recognised in the statement of financial position for the post-retirement medical benefits are asfollows:

2017$

2016$

Present value of funded obligations 5,048,691 4,705,479

The Company fully funds the post-retirement medical benefits as there are no plan assets.




38


Post-retirement medical benefits …continued

Changes in the present value of funded obligations are as follows:

2017$

2016$

Present value of funded obligations - beginning of year 4,705,479 4,699,158Current service cost 136,376 168,063Interest cost 365,419 367,102Past service cost - vested benefits 49,807 (83,138)Benefits paid (117,179) (92,791)Actuarial gains on obligations (91,211) (352,915)

Present value of funded obligations - end of year 5,048,691 4,705,479

Movements in the net liability recognised in the statement of financial position:

2017$

2016$

Net liability - beginning of year 4,705,479 4,699,158Contributions paid (117,179) (92,791)Expense recognised in the statement of comprehensive income 551,602 452,027Actuarial gains recognised in the statement of othercomprehensive income (91,211) (352,915)

Net liability - end of year 5,048,691 4,705,479

Expense recognised in the statement of comprehensive income:

2017$

2016$

Current service cost 136,376 168,063Interest cost 365,419 367,102Past service cost - vested benefits 49,807 (83,138)

551,602 452,027




39


Post-retirement medical benefits …continued

The effect of a 1% movement in the assumed medical cost trend is as follows:

Increase$

Decrease$

Effect on funded obligations 652,874 801,821

Principal actuarial assumptions used for accounting purposes were:

2017%

2016%

Discount rate 7.75 7.75Medical cost inflation 4.00 4.00Proportion of employees opting for early retirement 10.00 10.00

The amounts recognised in the statement of financial position and the statement of comprehensive income forpension and other post-retirement benefits are determined actuarially using several assumptions. The primaryassumptions used in determining the amounts recognised are disclosed above along with an analysis of thesensitivity of these assumptions.

The discount rate is determined based on the estimate of yield on long-term Government Bonds that havematurity dates approximating the terms of the Company’s obligation. The estimate of expected rate of changein the National Insurance Scheme ceiling is determined based on inflationary factors. Any changes in theseassumptions will impact the amounts recorded in the financial statements for these obligations.

It is reasonably possible, based on existing knowledge, that outcomes within the next financial year that aredifferent from these assumptions could require a material adjustment to the carrying amount reflected in thefinancial statements.

17 Share capital

AuthorisedThe Company is authorised to issue an unlimited number of common shares without nominal or par value.

Issued

2017$

2016$

100 (2016 - 100) common shares, stated value 100 100




40

18 Capital contributions

Capital contributions made by the sole shareholder, the Government of Barbados, comprise the following:

2017$

2016$

Value of leased assets of $42,310,845 less long-term loanobligations of $28,229,630 at January 1, 1979, under thelease agreement with the Crown. 14,081,215 14,081,215

Value of the other assets less other liabilities of the formerPort Department and Port Contractors (Barbados) Limitedat January 1, 1979, transferred to, or assumed by BarbadosPort Inc., less the amount of $100,000 allocated to the PortFund as established under Section 7(I) of the Barbados PortAuthority Act, Cap. 285B. 15,063,865 15,063,865

Capital transfer - Berth 5 Project 49,538,200 49,538,200

78,683,280 78,683,280

Leased assets and long term obligations under lease agreement with the Crown.

a) The freehold land and buildings and the static facilities at the Port of Bridgetown belonging to the Crown(other than the land and buildings and related wharf facilities of the bulk handling facility) which werevalued at $42,310,845 at January 1, 1979 are being leased for a period of 50 years from January 1, 1979 ata yearly rent of $100.

b) Under the terms of the lease agreement, the Port will have the option to renew the lease for a further termof 50 years from the expiration of the original lease period and will be responsible for the maintenance andinsurance of the leased assets and for the payment of property taxes thereon, and will receive the incomefrom the subletting of any part or parts of the properties.

c) Under the terms of the lease agreement, the Port also undertook to reimburse the Crown for the debtservicing assumed by the Crown in connection with Loan Contract dated February 21, 1975 and madebetween the Government of Barbados and Inter-American Development Bank for a loan of US$9,100,000or the equivalent thereof in other currencies, to partially finance the Project for the Expansion andImprovement of the Port of Bridgetown; and to assume the liability to the Crown for long term loans madeby the Crown for the construction of the Deep Water Harbour which amounted to $3,320,236 and$6,709,394 at January 1, 1979. This loan was fully repaid in 1994.




41

18 Capital contributions …continued

d) Since the terms of the lease transactions are significantly affected by the relationship between the Port andthe Crown, the economic substance rather than the legal form of the lease has been recognised by theCompany in its accounting treatment of the capital lease, and the actual cost of, or values assigned to theleased assets and the actual related long-term obligations under the lease have been reflected in itsfinancial statements with the excess of the cost of or values assigned to leased assets over the loanobligations being shown as a capital contribution by the Government of Barbados.

e) In correspondence from the Director of Finance and Economic Affairs to the Accountant- General in 2016,it was detailed that funding received from CAF was to be appropriated as a capital transfer to BarbadosPort Inc. The purpose for the funds was to construct an extension to Berth 5 and yachting facilities.

19 Revenue - other

2017$

2016$

Bulk handling terminal 577,549 661,953Sugar levy 68,583 54,838Auction sales 90,375 43,531Garbage disposal 1,094,681 1,018,874Security services 7,131,874 5,696,482Taxi and tour buses registration 182,373 166,927Photo identification 116,104 98,348

9,261,539 7,740,953

20 Expenses by nature

2017$

2016$

Staff costs (note 21) 34,274,630 36,515,413Repairs and maintenance 5,675,488 5,709,708Utilities 2,285,073 2,217,154Advertising and promotions 302,732 342,354Depreciation (note 11) 12,196,569 8,219,019Amortisation of deferred grant (211,299) (281,732)Insurance 958,586 835,791Professional fees 353,396 323,074Other 7,005,589 6,142,169

62,840,764 60,022,950

Included within other expenses above is Tranche 2 (2016 - Tranche 1) of a training grant in the amount of$501,800 from Competency-Based Training Fund to offset training expenses incurred under pre-identifiedtraining programmes.




42

21 Staff costs

2017$

2016$

Payroll costs and benefits 32,058,619 33,445,609Pension expenses- defined benefit 1,501,426 2,468,618- defined contribution 162,983 149,159Post-retirement medical benefits 551,602 452,027

34,274,630 36,515,413

22 Taxation

2017$

2016$

Deferred tax (charge)/credit (note 12) (6,191,242) 24,011,857

The tax on the Company’s income/(loss) before taxation differs from the theoretical amount that would ariseusing the basic tax rate as follows:

2017$

2016$

Income/(loss) before taxation 24,115,326 (7,947,818)

Taxation calculated at 25% (2016 - 25%) 6,028,832 (1,986,955)Expenses not deductible for tax purposes 1,390,924 6,994,522Income not subject to tax (52,825) (158,894)Market development and other allowances (157,813) (157,680)Qualifying capital expenditure incurred (967,045) (10,360,079)Movement in deferred tax asset recognised – (18,241,920)Associated company’s results reported net of tax (92,035) (100,851)Underprovision of prior year tax 41,254 –

6,191,292 (24,011,857)




43

23 Qualifying capital expenditure

In accordance with the Barbados Port Inc. (Exemption from Taxation) Act, 2011-21 the Company is grantedincome tax concessions in respect of expenditure of a capital nature on the expansion or development of thePort. The approved capital expenditure available for deduction is as follows:

Year ofincome

B/fwd$

Utilised$

Incurred$

C/fwd$

Expirydate

2014 1,867,655 (1,867,655) – –2015 15,728,078 (15,728,078) – –2016 41,440,314 (12,766,931) – 28,673,383 20352017 – – 3,868,181 3,868,181 2036

59,036,047 (30,362,664) 3,868,181 32,541,564

24 Financial risk management

a) Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk (including currency risk,fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

This note presents information about the Company’s exposure to each of the above risks, the Company’sobjectives, policies and processes for measuring and managing risk, and the Company’s management ofcapital. Further quantitative disclosures are included throughout these financial statements.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’srisk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by theCompany, set appropriate risk limits and controls, and monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in market conditions and theCompany’s activities. The Company, through its training and management standards and procedures,aims to develop a disciplined and structured environment in which all employees understand their rolesand obligations.




44

24 Financial risk management …continued

a) Financial risk factors …continued

i) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates andequity prices will affect the Company’s income or the value of its holdings of financial instruments.The objective of market risk management is to manage and control market risk exposures withinacceptable parameters, while optimising the return.

1) Currency risk

The Company’s exposure to currency risk arises from purchases that are denominated in acurrency other than the functional currency of the Company mainly the US Dollar and from theUS Dollar denominated long-term loan which it holds. This risk is however considered not to besignificant as the US Dollar is fixed with the Barbados dollar.

2) Interest rate risk

Cash flow interest rate risk is the risk that future cash flows of a financial instrument willfluctuate because of changes in market interest rates. Fair value interest rate risk is the risk thatthe fair value of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to cash flow interest rate risk in respect of its term deposits and longterm loans.

Management reviews the rates on a regular basis along with the cost of putting alternativefinancing in place to determine the most cost effective source of borrowings. Management hasentered into long term loans which bear interest at fixed rates and hence limit the Company’sexposure to cash flow interest rate risk.

At the reporting date the interest rate profile of the Company’s interest-bearing financialinstruments was as follows:

Fixed rate instruments

2017$

2016$

Financial assets 12,403,898 14,434,790Financial liabilities 137,610,643 134,580,647

3) Price risk

The Company is not significantly exposed to price risk arising from changes in equity prices.




45



ii) Credit risk

Credit risk is the risk that a counterparty will be unable to pay amounts in full when due. TheCompany’s credit risk arises principally from the Company’s receivables from customers and loansand receivables.

The carrying amount of financial assets represents the maximum credit exposure. The maximumexposure to credit risk at the reporting date was:

2017 2016

$ % $ %

Cash resources 19,846,467 47.36 2,979,937 12.28Accounts receivable 8,921,959 21.29 6,490,640 26.75Other receivables 732,533 1.75 357,290 1.47Financial investments (loans andreceivables) 12,403,898 29.60 14,434,790 59.50

41,904,857 100.00 24,262,657 100.00

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of eachcustomer. The Company’s revenue is attributable to customers’ credit sales and the demographics ofthe customers’ geographical location, including default risk of the industry and the country in whichcustomers operate. Credit is granted to authorised shipping agents only who are registered in aprescribed manner, and who are mandated to provide a bond through a financial institution as securityto the Company. Additionally, shipping agents are normally required to pre-pay a deposit of ninety(90) percent of the anticipated revenue per ship visit. This has the effect of significantly reducingcredit risk.

Management has instituted standard repayment periods for credit sales and monitors each receivablebalance on a weekly basis with regard to credit sales granted and payments received.


BarbadosPortInc.

Notesto

FinancialStatements

March

31,2017

(expressedin

Barbadosdollars)

46

24Financialrisk

managem

ent…continued

a)Financialrisk

factors…continued

iii)Liquidity

risk

Prudentliquidityrisk

managem

entimpliesm

aintainingsufficientcash

andcash

equivalentsandthe

availabilityoffunding

throughan

adequateam

ountofcomm

ittedcreditfacilitiesto

meetreasonable

expectationsofshort-termobligations.

Where

necessary,managem

entseeksto

renegotiaterepaym

enttermson

longterm

loans.

Thetable

belowanalysesthe

Com

pany’sfinancialassetsandliabilitiesinto

relevantmaturity

groupingsbasedon

therem

ainingperiod

atthedate

ofthestatem

entoffinancialpositionto

thecontractualm

aturitydate.

Theam

ountsdisclosedin

thetable

arethe

contractualundiscountedcash

flows.

Balancesdue

within

12m

onthsequaltheircarryingbalancesasthe

impactofdiscounting

isnotsignificant.

Carryingam

ount$

Contractualcash

flows$

0to

12m

onths$

1to

2years$

2to

5years$

More

than5

years$2017

Assets

Cash

resources19,846,467

19,846,46719,846,467

––

–A

ccountsreceivable8,921,959

8,921,9598,921,959

––

–O

therreceivables732,533

732,533732,533

––

–Financialinvestm

ents12,446,367

12,446,36712,446,367

––

–

41,947,32641,947,326

41,947,326–

––

Liabilities

Long-termloans

137,610,643168,890,448

38,568,16532,358,520

68,360,15129,603,612

Accountspayable

2,736,9482,736,948

2,736,948–

––

140,347,591171,627,396

41,305,11332,358,520

68,360,15129,603,612

Liquidity

gap(98,400,265)

(129,680,070)(642,213)

(32,358,520)(68,360,151)

(29,603,612)


BarbadosPortInc.

Notesto

FinancialStatements

March

31,2017

(expressedin

Barbadosdollars)

47

24Financialrisk

managem

ent…continued

a)Financialrisk

factors…continued

iii)Liquidity

risk…

continued

Carryingam

ount$

Contractualcash

flows$

0to

12m

onths$

1to

2years$

2to

5years$

More

than5

years$2016

Assets

Cash

resources2,979,937

2,979,9372,979,937

––

–A

ccountsreceivable6,490,670

6,490,6706,490,670

––

–O

therreceivables357,290

357,290357,290

––

–Financialinvestm

ents14,434,790

14,434,79014,434,790

––

–

24,262,68724,262,687

24,262,687–

––

Liabilities

Long-termloans

134,580,647167,240,036

23,967,96464,432,485

58,618,85120,220,736

Accountspayable

6,273,9606,273,960

6,273,960–

––

140,854,607173,513,996

30,241,92464,432,485

58,618,85120,220,736

Liquidity

gap(116,591,920)

(149,251,309)(5,979,237)

(64,432,485)(58,618,851)

(20,220,736)




48



iv) Fair value of financial instruments

Financial instruments carried at fair value in the financial statements are measured in accordance witha fair value hierarchy. This hierarchy is as follows:

Level 1 - unadjusted quoted prices in active markets for identical instruments. Level 2 - inputs other than quoted prices in Level 1 that are observable for the instrument, either

directly or indirectly. Level 3 - inputs for the instrument that are not based on observable market data.

A financial instrument is regarded as quoted in an active market if quoted prices are readily andregularly available from an exchange or other independent source, and those prices represent actualand regularly occurring market transactions on an arm’s length basis. The Company considers thatmarket transactions should occur with sufficient frequency that is appropriate for the particularmarket, when measured over a continuous period preceding the date of the financial statements. Ifthere is no data available to substantiate the frequency of market transactions of a financialinstrument, then the Company does not consider the instrument to be traded in an active market.

The Company’s equity securities in the Barbados Ice Cream Company Limited was designated aLevel 3 financial asset.

b) Fair value of financial assets and liabilities

Fair value amounts represent estimates of the consideration that would currently be agreed upon betweenknowledgeable, willing parties who are under no compulsion to act and is best evidenced by a quotedmarket price, if one exists.

The Company’s financial assets and liabilities as disclosed in the statement of financial position areconsidered by management to approximate their fair value except for loans and receivables and long-termloans, the fair values of which are designated as level 3 and disclosed in notes 8 and 13.

c) Capital risk management

The Company manages equity and long-term loans as capital. The Board’s policy is to maintain a strongcapital base so as to maintain creditor and market confidence and to sustain future development of thebusiness.

There were no changes to the Company’s approach to capital management during the year.




49

25 Contingent liabilities

As of March 31, 2017 and 2016, there exist a number of legal claims against the Company, the outcome ofwhich could not be determined with reasonable certainty. No provision for any liability that may result hasbeen made in these financial statements. Settlement, if any, concerning these claims, will be recorded in theperiod in which they are realised.

The Company has bonds in favour of the Comptroller of Customs in the amount of $28,000.

26 Related party transactions

1) The following transactions were carried out with the associated company during the year:

2017$

2016$

i) Portion of passenger head tax paid 1,204,553 1,371,320

ii) Security service charge 109,152 111,744

2) Key management

2017$

2016$

Directors’ fees 90,000 90,600

Salaries and other employee benefits 1,951,102 1,808,400

There were no loans to key management at March 31, 2017 and 2016.

Transactions with entities which have common directors of the Company are as follows:

2017$

2016$

Rental income 19,552 117,312Miscellaneous services 427,559 392,685Cargo handling 11,606,029 9,409,670

12,053,140 9,919,667

Brokerage fee expenses 6,164 865,197




50

27 Operating leases

The Company sublets parts of the property it leases from the Crown. The future minimum lease paymentsreceivable under terms of the leases are as follows:

2017$

2016$

Less than one year 1,510,316 1,293,744Between one and five years 709,597 639,850More than 5 years 10,101,114 10,116,792

During the year $1,430,914 (2016 - $1,664,025) was recognised as rental income in the statement ofcomprehensive income.

In 2014, the Company entered into a fifteen year operating lease with Svitzer Barbados for the provision of tugcharter services. The future minimum lease payments payable under the terms of the leases are as follows:

2017$

2016$

No later than one year 3,244,559 3,252,125Later than 1 year and no later than 5 years 12,987,127 13,008,499Later than 5 years 23,538,612 26,016,998

28 Subsequent events

i) The overdraft agreement with Republic Bank (Barbados) Limited expired on May 2, 2017 and the Board ofDirectors agreed not to seek renewal of the facility.

ii) On May 30, 2017, the Company entered into a contractual agreement for the construction of Berth 6 at acost of $113,496,475. For advanced works related to the project, a payment of $20 million is to be paidwithin six months or longer time period as agreed to by both parties.

iii) The Company served Bridgetown Cruise Terminals Inc., its associated company with a notice, datedJuly 1, 2017, to quit and deliver to the Company possession of the cruise terminal on December 31, 2017.The Company is therefore expected to manage the facility effective January 1, 2018.


NOTES

OUR VISION MISSION STATEMENT - Port of Bridgetown · 2019-01-27 · ARADOS ORT INC. ANNUAL PORT...

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