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Trafigura at Work

Investing in Puerto Rico's future


In one of the worst environmental and energy emergencies in Puerto Rico’s history, a blast and fire tore through and levelled the former CAPECO fuel depot in Bayamón in October 2009. In May 2011, Puma Energy Caribe acquired the assets that once belonged to CAPECO and the Gulf network in Puerto Rico.
 
Click here to learn more about how Puma Energy is turning the facility around for the good of the economy, the environment and for the surrounding communities.
 
“Two years on from one of Puerto Rico’s most devastating environmental incidents, and only six months since they acquired the company, it gives me enormous hope to see the positive strides that Puma Energy Caribe is taking to create jobs and rehabilitate the facility. We wish them every luck in transforming the site into an environmentally-sound and industry-leading hub for Puerto Rico.”
 
Governor Luis Fortuño
After touring the former CAPECO fuel depot, October 24, 2011

 

The 2010 Haiti Earthquake: Reflections from the Trafigura Foundation one year on

 

Port-au-Prince, Haiti, 12 January 2010, 16:52 local time. Life as usual in town: people going back and forth between the market and their homes, others wandering in the overheated and dusty streets in search of a job, of some food or of some special deal, colourful “tap-tap” taxis roaming boldly through the battered streets hooting their horns as loud as can be, the air full of noisy Creole music broadcasted by nasal sound-machines…

16:53 – a sudden and deep rumbling noise runs through the town. Within seconds, Port-au-Prince shanty towns are entirely annihilated, concrete houses destroyed, major historical buildings turned into ruins. Tens of thousands are buried alive or crushed to death under the rubble. The capital city has just been hit by a 7.3-magnitude earthquake, with several other aftershocks to come until several days later. The earthquake will soon turn out to be one of the deadliest natural disasters in human history with close to 250,000 casualties, over 300,000 wounded, scores of children orphaned or loosing trace of their families and millions left homeless.

Within hours, the whole world realized the exceptional dimension of the catastrophe. A huge planetary momentum of solidarity started to build, at all levels – public and private, governments, charities, individuals… Similar to the period following the 2004 tsunami in South-East Asia, each and every person felt a compelling need to help a country already plagued for decades by chronic poverty and poor governance.

Turning generous intentions into genuine donations can often be a challenge. First, people have no clue as to who they should be giving their money. The available “charity offer” is so wide and so diverse that it can be highly confusing. Then, after days and weeks of intensive media coverage, signs of “donor fatigue” can appear whereby many are deterred from contributing to the relief efforts, thinking their modest individual gift may simply be useless given the millions pledged throughout the world. And last, because the charity world, just as any other field of activity, also has its flaws and mishaps – exaggerated focus from the media on its inability to meet now, all the needs in the field can sometimes stir a vague, yet underserved, feeling of inefficiency of the relief organizations, hence further discouraging potential donors.

In the 67 Trafigura offices around the world, our employees immediately indicated a strong willingness to help and contribute in some way. The Trafigura Foundation was the perfect mechanism which could help overcome the aforementioned hindrances to giving, and could thus turn fast this hope into reality.

A total of US$66,000 was collected from employees across the company’s operations, not only in the more wealthy continents of Europe and North America, but also in Africa, Asia and Latin America. These funds were then transferred to the Foundation where, as is standard practice, the figure was matched and increased to over US$130,000.

With extensive expertise on issues relating to emergency and relief operations, the Trafigura Foundation analyzed needs in Haiti and their foreseeable evolution over time, and then looked for, and identified, appropriate, reliable operators in the field.

Ultimately, just days after the disaster, two-thirds of the total US$130,000 donation had been granted to chosen partners:

A development organization long-established in the rural northern province of Haiti (“Initiative Développement”) who very swiftly adjusted its programme to allow for a smooth resettlement of the many thousands who escaped the city of Port-au-Prince to find a safe haven in the rural areas;
A shelter for children in the capital (“Aide Haïti”). This local charity which was founded 15 years ago by a Swiss-Haitian paediatrician to offer refuge for children enslaved to work for wealthy families, and which opened wide its facilities for hundreds of children having lost their families in the disaster.
In full transparency with all those who made a donation, the Foundation based its selection of the recipients on a number of criteria based on a rational analysis of the situation rather than on sheer emotional reactions. First, we wanted the donation to reach charities with high records of efficiency, performance and relevance. Then, we targeted small- or medium-size charities, with good knowledge of the country gained through a longstanding history of local operations but little exposure to public generosity and little access to the massive money channels dedicated to Haiti. Finally, we opted for a two-step approach, whereby two-thirds of the money collected was disbursed immediately, contributing to the relief operations addressing the acute immediate needs. The remaining one-third was kept in reserve for longer-term rehabilitation and reconstruction activities after one year. Indeed, in such situations, this particular phase, which by essence takes place after the dust of the emergency has settled, comes after media have turned their eye elsewhere in the world and thus garners far less attention and financial resources from public generosity. Hence, it appeared essential to us that a significant part of the money collected be kept reserved to cover such needs, as critical – if not more – as those resulting from the immediate aftermath of the earthquake.

As a conclusion, Trafigura’s response to the disaster showed how the Foundation, established only 3 years previously, could provide an appropriate and powerful channel to consolidate and leverage the generosity of its employees. Moreover, Trafigura demonstrated how it could make an immediate, real and lasting difference to the lives of Haiti’s victims.

 

Vincent Faber
Executive Director, Trafigura Foundation
January 2011

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