Cement shortage persists
-shipments being pre-sold
Stabroek News
March 26, 2004
Cement supplies are still low, as Trinidad Cement Limited (TCL) struggles to meet Guyana's needs and larger users stockpile to brace against any further shortages.
Tony Amres, manager of Readymix Concrete Ltd., which is the largest buyer of bulk cement in Guyana, said on Tuesday that the cement supply is still not back to normal. "[There is] still a severe shortage of cement..."
R&R International, Toolsie Persaud and Anral Investments were all out of cement on Wednesday but said they expected shipments soon. Anral was expecting supplies today. Checks in Georgetown, Berbice and Linden yesterday revealed not many places had cement and retailers were predicting a price increase from the average of $1000-1100 per bag.
Government officials have said the lack of cement has hindered major capital works like the completion of the New Amsterdam Hospital and set back the local construction industry.
It was expected that the shortage of cement would have subsided by March 15, when some 9,000 tonnes would have been available.
"People are holding cement, [that is, they are] buying more than what they need," says Amres.
Many companies which use large quantities are now paying for their cement in advance to avoid the shortage on the market, hence shipments yet to arrive may have already been sold out. Even Readymix has had to adopt this measure.
Last month TCL acknowledged that their current inventory was inadequate to meet the size of the Guyanese market and to cater for delays in shipments.
But it announced that by October, a terminal would be built in Guyana to house 141,000 bags of cement, catering for a two-week inventory.
Amres notes that this move by TCL will not solve the present problem.
Government officials have described some local retailers as unscrupulous, because of the prices being charged for a sack.
On March 10 the government announced that it had waived the Common External Tariff(CET) on cement imports outside of Caricom, indefinitely; leaving only the 10% consumption tax on both intra-regional and extra-regional cement.
Readymix officials note that at the moment it may not be necessary for them to directly order extra-regional cement since the recent tax waiver would enable local suppliers to better meet demand using all available sources.
In earlier media reports officials from R&R International and Anral Investments said they would stick with the TCL brand because it has a loyal following.
Amres says as other cement brands become more available to consumers they will become more comfortable with them. He says the company has tested at least six extra-regional cement types that have a "superb quality" and are at good prices.