JaRistotle’s Jottings | The logistics of becoming a logistics hub must be properly considered

There has been a lot of hype about Jamaica becoming a logistics hub and positioning itself as the fourth node in the global logistics system after Singapore, Dubai and Rotterdam. However, given the countless political promises, ideas and pronouncements that have failed to materialize over the years, I am somewhat skeptical about our prospects.

My concerns surround the extent to which our ‘visionaries’ understand the complexities of global logistics and supply chain management, on the one hand and, but more importantly, the extent to which they are willing to embrace the attendant requirements.

From a potential investor’s perspective, there are various factors worth considering before investing any money in the country – the political and economic climate; security; the industrial relations climate; the legal system; and customs and excise arrangements.

Perspectives shape decisions and actions, certainly for investors. Suffice it to say, any current assessment of these areas would likely derive an unimpressive grade in the eyes of the high-end investors we are obviously hoping to attract.

POLITICAL

Locally, our politicians are perceived to be among the most corrupt grouping in the country, and there is little doubt that diplomats and international investors share this perspective.

In addition, the question has been raised as to the extent to which our political leaders are willing to cede control of state assets, abandon wishy-washy plans and policies and dispense with bureaucracy in order to facilitate the implementation of borderless international business systems.

What, therefore, will be the attitude towards opening the flood-gates for foreign business owners and workers? Will past debacles such as the Goodyear factory closure teach us to rein-in self-serving and short-sighted trade unionists lest they capsize the logistics ship?

Our local customs agency has been likened to an uncaring parent whose only objective is to rake in as much revenue as possible without much consideration for the bigger picture.

Trade inhibiting tariffs and pay first or bust attitudes don’t sit well with international investors. Neither do eight to four working arrangements nor after hours work at time-and-a-half rates. Global logistics is a 24-7-365 business, and contrary working arrangements derail fluidity, especially for just-in-time operations.

LEGAL

Have we commenced any meaningful acquisition of technical expertise in international trade law, international maritime law or similar specializations?

Owing to the absence of such expertise within our judicial system, the failure of our local judges to appreciate the nuances of, for instance, commercial maritime law, has had an adverse impact on local maritime jurisprudence and the attractiveness of our international ship registry. What then of our outlook for affairs concerning commercial trade law and ironclad operating contracts?

SECURITY

Security will be a priority concern for any worthwhile investor. The safety and security of their workers, their facilities and their businesses cannot be overstated. Effective crime control will be a critical selling point for us, notwithstanding unprecedented rates of extortion, corruption, narcotics trafficking, cyber-crime and murders.

Forget the bickering about crime plans, states of emergency and so on, none of these matter to investors: their peace of mind and returns on investment are what matters here and if we can’t deliver, the logistics hub will be a mere pipedream.

Furthermore, we will need to implement significant improvements within our industrial security sector: the abolition of mango-tree training arrangements in favour of accredited certification programmes is paramount. Improved regulation and terms and conditions of employment for guards are also vital in raising the overall levels of professionalism throughout the industry to international standards.

And so it is that the logistics of becoming a logistics hub must be properly considered and embraced before we can expect anyone to take us seriously. Until then, it is all bark and no bite.

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