Durrant Pate/ Contributor

The Shipping Association of Jamaica (SAJ) held discussions last Friday with the European Union (EU) and European Investment Bank regarding building out the island’s resilient logistics hub in the Port of Kingston.

The discussions, which also included the Ministry of Industry Investment and Commerce and several local public and private sector partners, centred around the EU’s potential support to assist Jamaica in attracting investments to its emerging logistic hub. The goal is to boost Jamaica’s competitiveness, increase its maritime connectivity, and establish greater linkages with global partners by exploring business opportunities for Jamaica’s growing logistics industry.

Under the exploratory considerations, the EU through its Global Gateway Agenda would offer a financial package to redevelop the infrastructure in Newport West and generally upgrade the area into a world-class logistics facility. As a first step, prior to possible further investment, technical assistance and financial support will develop a business model to establish Newport West as a competitive and resilient Economic Zone and design a system to resolve the regular flooding which occurs from Tinson Pen to Marcus Garvey Drive and Newport West.

This would contribute to reducing significant direct and indirect operating costs estimated by the National Works Agency at US$17 million per annum. Stakeholders who were present at the meeting have expressed a willingness to partner with the EU to make the investments necessary to develop the Newport West Economic Zone.  

Comprehensive logistics hub plan 

The feasibility studies will put them in a position to unlock the required public and private investment. The EU indicated an interest in supporting the objective to craft a comprehensive logistics hub plan for several economic zones already under consideration in Kingston.

The EU delegation participated in a comprehensive morning of activities beginning with a tour of the German Ship Repair (GSRJ) Jamaica facility at Harbour Head in Kingston. The itinerary also included visits to both port terminals, Kingston Freeport Terminal Limited (KFTL) and Kingston Wharves Limited (KWL), including the KWL Global Auto Logistics Centre. 

Stakeholders used the opportunity to discuss the SAJ and the government’s vision for the establishment of Jamaica as a competitive Logistics Hub.  Other SAJ collaborators present included KWL, KFTL, the Ministry of Industry, Investment and Commerce; Jamaica Promotions Corporation and the Jamaica Special Economic Zone Authority.

The EU’s director of Latin America and the Caribbean, Felix Fernandez-Shaw, explained: “The EU is working to become a significant partner for Jamaica in its digital transition and its adaptation to Climate Change, notably through the production of greener and cheaper alternative energy”.

He added: “The EU also wants to be part of the crucial strategy of positioning Jamaica as a logistic 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 is a crucial first step in that direction.”

Minister of Industry, Investment and Commerce Senator Aubyn Hill, emphasised that “the establishment of Jamaica as a Caribbean regional Logistics Hub will enhance our global trade position, especially increasing exports. The prospective EU technical assistance will create the kind of logistics hub, which will serve as a catalyst for economic growth.  Increased efficiency and productivity in port operations, as demonstrated by the visits to KFTL and KWL, position Jamaica to attract greater investments and create employment opportunities for our talented Jamaican people.”

SAJ President Corah Ann Robertson-Sylvester welcomed the engagement with the Government and the EU, indicating her organisation’s excitement at the prospect of working together to achieve an objective long promoted by the shipping group.