Finance Committee Approves $4.4 Million For Submarine Cable Consultation, While OfReg Shares Further Details On Damage To MAYA-1 Submarine Cable During 2024

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1 month ago

By Alric Lindsay

As members of the public are aware, the Cayman Islands Government is considering the introduction of a third submarine cable to connect networks in the Cayman Islands to the rest of the world (the two existing cables are MAYA-1, which is 4,400km and the Cayman-Jamaica Fibre System, which is 870km long). As with any other project, the Government could consider doing this on its own or work with a third party under a public-private partnership arrangement. While these details were not discussed in the Finance Committee meeting on October 11, 2024, an amount of $4.4 million was approved by the Finance Committee to take the next steps in the process. Separate and apart from the Finance Committee, the Utility Regulation and Competition Office (OfReg) shared details on the damage to MAYA-1 and a link failure to the Cayman-Jamaica Fibre System earlier in 2024.

Usage of $4.4 million explained

When asked by Premier Juliana O’Connor-Connolly for a breakdown of the $4.4 million, Dr. Ranulf Scarbrough, chief project manager for the submarine cable in the Ministry of Planning, said:

The 4.4 million figure is based on some market research we’ve done from talking to a number of different entities that are building cables through the Caribbean Sea and based on what their expectations would be in a first year of what could be a three or four year build project. So that figure is just based on market research. It hasn’t been broken down in terms of the specifics of what it would be spent on. It is in order to obtain a partner. And I think to try and understand that, the model is, these are entities that are already building cables to build an incremental branch on those systems to connect Grand Cayman… would… we wouldn’t be paying for the whole system. We would be paying a contribution to build that into their plans. I hope that answers your question.

Explaining how the $4.4 million will be utilized, Dr. Scarbrough, said:

The purpose of the funding is to move forward on the advice of consultants to initiate a selection process to try to identify a private sector partner for the Government to realise a new submarine cable connection for the Cayman Islands.

Dr. Ranulf Scarbrough (image source: Linkedin)

Pressing for further information, MP Joey Hew asked whether the amount would specifically be used to take the ministry through the bidding process.

Dr. Scarbrough responded:

That’s correct. In order to initiate a selection process of procurement, we need a source of funds under the procurement regulations.

So, this has enabled us to start that process.

Clearly, the actual amount of money will depend on proposals we receive from the market that will finalize the quantum of ultimate funding. But this is to initiate the process.

Challenges contemplated connecting Grand Cayman to Sister Islands

MP Hew then challenged Dr Scarbrough, querying the scope of the third submarine cable proposal and whether it includes a loop into the Sister Islands or at least Cayman Brac.

Dr. Scarbrough explained:

We will be going to the market for proposals… [it] hasn’t yet been decided what we will mandate in that procurement process. The financial size of the project suggests that it may be challenging to connect both Grand Cayman and the Sister Islands. But Cayman Brac currently has two cable connections already. So, what we aim to do is to build into our thinking provision to enable that to be perhaps addressed in the future.

Given that the Sister Islands did not appear to be contemplated in the third submarine connection loop, Premier Juliana O’Connor-Connolly and MP Moses Kirkconnell suggested that the project committee include a person representing Cayman Brac.

Kirkconnell explained:

The third line opens up the Cayman Islands and guarantees stability, especially in its financial industry. I would find it very hard, as one of the representatives from Cayman, Brac and Little Cayman, to accept Cayman Islands going forward without including them an opportunity and the relationship with the minister responsible.

I feel comfortable, and of course, with the Premier, I feel comfortable in saying that’s something that they will mandate and want as well.

But I want to make it very clear that I, as the representative for Cayman Brac West and Little Cayman, want to have assurances for my vote that we will be included in this opportunity going forward.

Minister of Planning Jay Ebanks appeared to agree in the Finance Committee meeting to the foregoing inclusion of a representative of Cayman Brac.

Minister of Planning, Jay Ebanks (file photo)

Location of current cables

For members of the public who may not understand how the existing two submarine cables work to create connections between Grand Cayman and the rest of the world and the Sister Islands and the rest of the world, a partial explanation can be found on submarinenetworks.com.

Submarinenetworks.com states:

MAYA-1 is a 4400km submarine cable system connecting the United States, Mexico, Honduras, Cayman Islands, Costa Rica, Panama, and Colombia, from Hollywood, Florida on the southern tip of the United States to Tolu, Colombia on the northern tip of South America.

MAYA-1 is 4400km and has landing stations in Grand Cayman, Mexico and parts if central America

Image source: Submarinenetworks.com

Submarinenetworks.com adds:

The MAYA-1 cable system has seven terminal stations and segments T:

T1: Hollywood, FL, United States

T2: Cancún, Mexico

T3: Puerto Cortes, Honduras

T4: Half Moon Bay, Cayman Islands

T5: Puerto Limon, Costa Rica

T6: Maria Chiquita, Panama

T7: Tolu, Colombia

The other cable is the Cayman-Jamaica Fibre System. Reportedly, this has landing stations in Cayman Brac and Jamaica.

Details of damaged MAYA-1 and link failure for the Cayman-Jamaica Fibre System

As the Government was considering a third submarine cable, it transpired that MAYA-1 suffered damage, and the Cayman-Jamaica Fibre System encountered an issue in 2024. These are some of the types of contemplated events that may have led stakeholders to explore a third submarine cable.

Concerning the issues with the Cayman-Jamaica Fibre System, Ofreg explained there was no damage from January 2024 to the time of the freedom of information request.

However, OfReg provided the following information regarding a terrestrial link:

CJFS: 06 January 2024 – failure of a terrestrial link in Jamaica, traffic on Cayman Jamaica Fiber System (CJFS) was affected however there was no actual fault on CJFS itself.

We provide this information because there may be misinformation on this which may suggest that the cable had a fault.

MAYA-1, however, did suffer damage during 2024.

OfReg shared the chronology as follows:

Maya 1 : 21 June 2024 – fault on the north segment, which terminates in Cancun, Mexico. Cable remained operational via south path. So once providers established redundant links on Maya1 they could utilise Maya1.

Maya 1: Cable damaged in the wet segment off Cancun, Mexico. Outage occurred on 21 June 2024.

Regarding repairs to MAYA-1, Ofreg shared the following data:

21 June – Initial trouble shooting work.

26 June- Full power configuration (power down and power up entire Cable)

27 June- Fault initially confirmed to be in the ocean off Cancun.

3 July- Temporary redundant paths on Maya1 established for all local operators. This in addition to traffic going over CJFS. So data traffic was travelling over two cables at this point.

16 July Maya-1 was powered down, divers surveyed the cable starting from the suspected fault location from the Cancun Cable Station. Significant chafing damage from contact with the rocky seafloor or boat anchor was found.

The dive team cut the cable, brought it onboard the dive vessel, and sealed the end so that the cable head should remain in “open” condition to limit shunt and other collateral type faults. The cable was then lowered to the seabed.

The stations other than Cancun then finished powering the cable at 2220 UTC (17:20 EST) on July 16th. Hollywood and Tolu were able to power the trunk because the Branching Unit end of Segment 2 was placed in an “open condition” by the divers.

All traffic other than the traffic terminating in or transiting Cancun was now up and in a normal (non-hazardous) condition.

16 July – 31st August – Cable operator waiting for Mexican authorities to approve necessary permits to commence work.

31 August – Cable ship depart Curacao headed to Mexico. Permits still outstanding.

3 September – Cable ship arrives in Mexico.

4 September – Repair works begin.

10 September – North segment of cable repaired. Cable fully operational.

OfReg summarized the foregoing issues in a press release it published on September 12, 2024.

Impact on Cayman services

Explaining how Cayman service providers were impacted while MAYA-1 was damaged, OfReg said:

All local service providers maintained usual links via CJFS.

Redundant paths established over Maya1 South segment via Panama.

Impact related to providers having to reroute traffic and establish further un-provisioned redundant links.

Increased latency and decreased throughput may have been experienced by some heavy data users. Average users would not have noticed a difference.

By publishing the aforementioned press release in September 2024, OfReg provided a level of transparency regarding the foregoing.

Takeaways

While the Cayman Islands remained resilient when the MAYA-1 submarine cable was damaged, challenges could have arisen if both cables were damaged simultaneously. Some long-term thought is therefore needed to address potential future issues. One solution, if feasible, may be to obtain additional connectivity between the Cayman Islands and other existing regional cables. Alternatively, the Government could explore an entirely new cable on its own or enter a public-private partnership.