The new Jamaica Labour Party administration is scrambling to avert another cement crisis as the sole local manufacturer Caribbean Cement Company Limited says it is unable to satisfy the current demand for cement, while other importers of the commodity reportedly have little or no stock in their warehouses.
The average demand for cement is 83,000 tonnes per month, and CCCL currently produces only 75,000 tonnes.
A projected 10,000 to 15,000 tonnes of cement is needed to meet the monthly demand.
Alice Hyde, marketing manager at CCCL, told journalists yesterday, during a press conference at the Jamaica Pegasus hotel, that many suppliers were hoarding cement, which also contributed to the scarcity of the product.
A distribution challenge due to the passage of Hurricane Dean and logistical problems in the execution of the quality assurance protocol with the Bureau of Standards were also cited as factors impacting the shortage.
President of the Hardware Merchants Association Errol Salky said he was not aware of any supplier who had been stockpiling cement.
He told The Gleaner yesterday that members of the association have been complaining that they could not obtain adequate supplies of cement.
The HMA President rebuked CCCL for denying claims earlier this week that it was not experiencing a shortfall. “We do not want to go back to not having cement, because it is a domino effect on the economy,” Mr. Salky cautioned.
At the same time, newly appointed Industry and Commerce Minister, Karl Samuda, has given the assurance that steps were being taken to ease the shortage of cement..
Mr. Samuda met with CCCL and other players in the sector on Tuesday, and was advised that the company would make available 5,000 tonnes to the trade and another 20,000 tonnes later this month.
He also instructed the Consumer Affairs Commission to immediately carry out an investigation to determine whether there was any activity to distort the supply/demand situation.
Other importers have cited the US$5 per tonne port security cess by the Port Authority of Jamaica as a major disincentive to a viable importation regime.
The importers have given a commitment to supply 30,000 tonnes of cement to the market by the end of October and an additional 30,000 tonnes one month later, if “disincentives” were removed.
Meanwhile, Ms. Hyde reported that the company now had approximately 25,000 tonnes of cement in stock, adding that it would be exploring import opportunities with its business partner CEMEX.
However, she said there were no guarantees that the company would be able to source cement from its affiliates in Barbados and Trinidad due to regional demand, high prices and high freight rates.
Efforts to get a comment from the Incorporated Master Builders Association about the impact of the shortage of cement on major infrastructure projects and other private construction developments were unsuccessful.
Last year, the construction sector was crippled for months due to a severe shortage of cement resulting from the release of poor quality cement by CCCL into the market. Up to 30,000 construction workers were affected.
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