Investment minister pledges support to shipping industry

Shipping and logistics is a critical element in the Government's strategic plan for the country's growth, Minister of Industry, Investment and Commerce Anthony Hylton has said.

Hylton, who was addressing members of the managing committee of the Shipping Association of Jamaica (SAJ) last Tuesday, said the Government recognises the opportunities and challenges that are to come from the opening of an expanded Panama Canal in 2014.

As such, he has pledged his support to the shipping industry through investment and the positioning of Jamaica as a major logistics and shipping hub.

He pointed out that Jamaica has a link in the global supply chain, and the country must move quickly to cease the opportunity as a logistics hub in the Western Hemisphere.

"The opening of the Panama Canal is going to shift trade in the world. I believe that there are about five large transshipment areas or logistics centres that are going to emerge, Jamaica must be one of them," the minister said.

Hylton noted that this investment could see the country's growth increase between five to six per cent per annum.

The Port of Kingston, he said, is at the heart of the plans for the logistics centre, but Tinson Pen - as an extension to the port, Vernamfield - Clarendon, the Caymanas Economic Zone - St Catherine and Cow Bay - St Thomas, all have important roles to play in this development.

Roger Hinds, president of the SAJ, echoed the sentiments of the minister, noting that his vision was in line with members of the shipping community.

However, Hinds pointed out that as the country prepares itself to become a logistics centre, preparation must also be made for the port to accommodate larger ships. The dredging of the harbour, to increase its depth from 14 metres to 17 metres, will be of utmost importance.

"Jamaica must integrate itself in the global supply chain and the logistics centre is the future. However, if we set up the logistics infrastructure and the harbour is not dredged down to 17 metres, then we will be at a major disadvantage," Hinds said.

The minister also pledged his support for the Port Community System, an electronic gateway for stakeholders in the distribution and logistics chain to exchange documents and information securely among themselves, and with trading partners and Government agencies. It forms the subset of a wider trade-facilitation framework.

The work being done to implement the Port Community System is a collaborative effort involving the SAJ, the Port Authority of Jamaica, and Jamaica Customs Department. The relevant studies have been carried out towards implementation of the system, including embarking on a trip to Europe to deepen the partners' knowledge on port-community systems in several jurisdictions.

Additionally, technical assistance was received from the International Trade Centre to study, assess and develop critical components in the implementation of a Port Community System.

Assistance was also received from the United States Agency for International Development to conduct a mapping exercise of the existing functions within the import/export processes. The project is now at the stage of a cabinet submission.

Hylton committed to familiarising himself with the document and working with the relevant ministries with a view to undertake a joint submission to Cabinet.