Minister Hylton meets with shipping interests

Anthony Hylton, Minister of Industry, Investment and Commerce, has characterised the plan to develop Jamaica as a logistics hub as a critical project at the heart of our (national) growth strategy.

Hylton and his team addressed stakeholders in the shipping industry at the monthly Lunch and Learn seminar hosted by the Shipping Association of Jamaica (SAJ) on March 7. The seminar was sponsored by Seafreight Jamaica.

He hailed the Lunch and Learn session as a vital forum to provide clarity and garner consensus among stakeholders on the planned logistics hub.

In a presentation made to stakeholders, it was emphasised that Jamaica's economic survival depends on the country's ability to integrate into global supply chains.

Dr Eric Deans, a member of the minister's team and chairman, Logistics Taskforce in the Ministry of Industry, Investment and Commerce explained that "this (plan) requires the coordination ... of world-class warehouses, factories, ports, airports, intermodal carriers offering extensive connections to regional markets, a robust telecommunication platform, IT, other supporting infrastructure, access to cost-efficient energy supplies, logistics professionals and providers, enabling legislation, and trade agreements in a business-friendly environment."

It was noted that a critical aspect of the plan is the broadening of private sector participation, especially investment and financing through private-public partnerships.

The country's existing logistics cluster boasts several entities spanning air, land, and sea. These include: Sangster International Airport, Tinson Pen Aerodrome, Norman Manley International Airport, Montego Bay Free Zone, bonded warehouses, Garmex Free Zone, Jamaica International Free Zone, Highway 2000, rail system, Kingston Free Zone, Port of Montego Bay, Kingston Container Terminal, and Kingston Wharves Limited.

Currently, there are many unfulfilled demands for services across all three areas. The Government's plan is to optimise the possibilities and equip the country to offer the services that are currently lacking. The proposed logistics hub will, in addition to the existing resources, include: Vernamfield air-cargo facility, an aviation college, maintenance, repair and overhaul facility, an air-cargo free zone, the Caymanas Economic Zone, bulk grain, petroleum and LNG storage facilities, a commodity port, ship repair and dry dock facilities. There will be a linkage to the highway and an upgrade of the rail system.

The Government's goal is not just to stimulate growth in the economy, but to sustain growth in the medium and long term, while totally transforming the Jamaican economy.

The immediate opportunity for the country includes a market of 800 million persons from various markets, including the United States (US) and Brazil. These trade opportunities are due to coincide with the expansion of the Panama Canal scheduled to be completed in 2015; and the US$880M stimulus package by Brazil for World Cup 2014 and Olympics 2016.

primary tasks

With Jamaica's logistics capabilities currently below par with a ranking of 124 of 155 on the Logistics Performance Index, the primary tasks are:

1. The urgent upgrade of our logistics capabilities and rehabilitation of critical existing facilities while we design and implement bold new projects as part of a broader master plan.

2. To entice transnational corporations, needing seamless supply-chain integration, to base their Latin America and Caribbean logistics centres in Jamaica when other options are available.

3. Implementing the Port Community System, a single electronic window that would integrate all stakeholders in the airline, shipping, airport and seaport industry to facilitate electronic submission to Customs and tracking/tracing of goods.

4. Developing logistics management and software expertise through collaboration with the Caribbean Maritime Institute, Centre of Excellence, Mona School of Business, and the University of Technology, Jamaica.

The integration of all the disparate, existing, and proposed components in a phased manner into a logistics hub, providing capabilities that allow businesses to efficiently access the global supply chain, is one of the critical strategies that will be employed.

The Government is actively working on the institutional framework through various committees. The plan will be implemented in phases to meet the 2015 timeline.

Seafreight Agencies Inc and its satellite less-than-container-load service Seapack, with registered offices in Miami, offer dedicated weekly containerised services to 26 ports in the Caribbean, Central America, and the United States.

Over the last decade, Seafreight has partnered with the terminals on the Port of Kingston (Kingston Wharves Limited and Kingston Container Terminal) and the other major shipping lines calling Kingston, successfully making the Port of Kingston the transhipment hub of the Caribbean offering connectivity from the rest of the world to its other 25 destinations in the Caribbean, Central America, and the United States.