Hill: Jamaica must become ‘logistics hub of the region’
Published:Saturday | January 27, 2024 | 12:07 AMAsha Wilks/Gleaner Writer
Developing Jamaica into a more robust global logistics centre, that connects the Americas to the rest of the world, has been outlined as a key aim of the Andrew Holness administration.
The Government’s intention to promote economic expansion at the Port of Kingston, the seventh-largest natural harbour in the world, was made clear by Senator Aubyn Hill, minister of industry, investment, and commerce, during a press briefing held yesterday at the corporate office of Kingston Wharves Limited.
During the press briefing, Hill stressed that Jamaica needs to be headed towards becoming “the logistics hub of the region”.
The aspiration appears to be inching closer to reality as a European Union (EU) delegation, that had been visiting the island since Wednesday, took part in high-level discussions on the various areas in which potential support may be given to assist Jamaica in attracting investment through its Global Gateway Agenda.
One such area of investment is in the Port of Kingston’s infrastructure, with the aim of fostering efficient and “green” operations in support of an economic system that is guided by environmentalist principles.
Corah-Ann Sylvester, president of the Shipping Association of Jamaica, said the organisation was “extremely passionate” about wanting to transform Newport West into “the logistics hub of the region” but noted, however, that for this to occur “we need to get some things fixed”.
Sylvester added that the SAJ would be working with private sector partners to develop a drainage work project that would also include fixing the port’s road network to ensure better trans-shipment operations.
Flood risk
Regular flooding occurs from Tinson Pen to Marcus Garvey Drive and Newport West.
“What has happened is that, when we have the heavy rains in November, the cargo that is trans-shipped through Kingston, much of it gets wet and so there is a panic, you know. When the cargo comes to Kingston, then what?” she explained.
“So, I just want it to be known that the members of this community, we are vigilant, and we will do anything that we have to do to get this problem fixed,” she said, further noting an intention to get started within the next six months.
Tackling this issue would contribute to reducing significant direct and indirect operating costs, estimated by the National Works Agency at US$17 million per annum, Hill told The Gleaner.
The minister went on to say that, given the significant expense, there was an urgent need for work in the area to address this recurrent problem that causes a disruption.
Therefore, the EU will be working together with the European Investment Bank (EIB) to conduct a technical study of the area that will better inform the phases of development as well as help advise the Government on potential policy adjustments that can be made.
According to Hill, the study will further enable the EIB and other investors to demonstrate the plan’s economic viability and attract new industries to Jamaica that will help “feed our people”.
It was also disclosed that the Kingston Freeport Terminal Limited would be expanding its infrastructure and supporting equipment to increase its current capacity by 30 per cent.
“The European Union understands that we want to become the logistics hub. We speak English, we’re closer to the Panama Canal, we ship to Europe, and we have people who can be trained. So, that’s the bigger picture,” Hill said.
“Guyana is developing. They don’t have a deep-water port. The draft of the port in Georgetown is probably four to six metres. No big ship can go in there. Jamaica, then, is the natural, world breaking, trans-shipment [hub] here to feed Guyana... so, we need to be ready for that,” he said.
Also at the press briefing was Félix Fernández-Shaw, director for Latin America, the Caribbean and relations with all overseas countries and territories at the European Commission’s Directorate-General for International Partnerships; Yves Ferriera, regional director, EIB; Charles Johnston, chairman of Jamaica Producers Group; representatives from the industry ministry, the European Union and the Jamaica Special Economic Zone Authority as well as several local public and private sector partners.
According to Fernández-Shaw, the EU is making a concerted effort to support Jamaica in its digital transformation and climate change adaptation, particularly by producing “greener and cheaper alternative energy”.
“The EU also wants to be part of the crucial strategy of positioning Jamaica as a logistics hub, as we believe that there is a huge untapped niche for growth here. The meeting today brought together major stakeholders that can make the change. [It] is a crucial first step in that direction,” he said.
According to the resilience hub initiative, the opportunities to cooperate with logistics centres, to create a logistics hub for Jamaica, include the creation of one customs area for Port Bustamante; the removal of the perimeter fencing between the terminals; allowing for development of Newport West by logistics and special economic zone (SEZ) enterprises as a secure, gated environment; the creation of a competitive and connected airport and cruise port operations with easy access of cargo between operations and the acceleration of the adoption of a port community system.