By Robert Hart, Staff Reporter 
A worker observing operations at the Kingston Container Terminal. - Ricardo Makyn/Staff Photographer
THE HOUSE of Represent-atives approved on Wednesday a US$21 million (J$1.3 billion) loan agreement between the Port Authority of Jamaica and the Export-Import Bank of China. The loan is to facilitate the purchasing of modern equipment as the Port Authority seeks to expand its operations.
Cabinet had earlier approved the loan arrangements in April for the purchase of four gantry cranes to be installed at the North and South terminals at the Kingston Container Port. The terminals are being renovated under the Phase Four development of the Kingston Container Terminal (KCT), and the cranes will accommodate berthing of Post-Panamax vessels at the North Terminal.
According to the terms of the agreement, the loan will be serviced on a fixed interest rate of 3.79 per cent, payable semi-annually. The principal is to be repaid in 14 consecutive semi-annual instalments, beginning in January 2005.
"These new cranes will replace five old cranes, which have had a use of life for approximately 25 years and should improve productivity substantially," Finance Minister Dr. Davies advised the House in a document tabled on Tuesday. "Productivity of the existing cranes is 17 moves per hour compared with that of the new cranes at approximately 35 to 40 moves per hour."
PURCHASING ARRANGEMENT
The Finance Minister disclosed that the cranes would be provided by Shanghai Zhenhua Port Machinery Co. Ltd., and that the purchasing arrangement would include a Government Guarantee under the Approved Organisations and Authorities Loans (Government Guarantee) Act.
The KCT Phase Four development has included the demolition of factory buildings to create additional space at the eastern side of the Kingston Free Zone adjacent to the Terminal.
EXPANSION PROGRAMME
Government announced the proposed expansion programme in June last year and, in February this year, the Port Authority formalised a contract signing with E. Pihl & Son A.S. of Denmark for the civil works. The programme is slated to include the reconstruction and expansion of berths on the North Terminal by 90 metres and the expansion of berths on the South Terminal by 91.1 metres.
The construction is scheduled for completion in mid-2006, providing 25 per cent additional capacity of 300,000 twenty-foot equivalent units (TEUs). On completion, the terminal is expected to achieve total capacity of 1.5 million TEUs. The programme is to cost $3.7 billion.
The KCT ranks as the number one container port in the Caribbean, but with competition swiftly on its heels, attempts are being made to keep it ahead of its rivals.
Last year KCT took home the Caribbean Shipping Association (CSA) 'Port of the Year' award after being regarded the most modern port in the Caribbean.
Earlier this year, 18 of the world's leading shipping lines called on the terminal. The KCT's main competitors are Colon and Manzanillo in Panama; Puerto Cabello, Venezuela; Curacao in the Eastern Caribbean; Cartagena, Colombia, San Juan, Puerto Rico; Santo Domingo, Dominican Republic and Freeport, Bahamas.
