Work proceeding on building out Ashenheim Road logistics complex
Jamaica Producers Group (JPG) is reporting that its multi-billion-dollar logistics and port expansion projects in Jamaica and Europe remain on track with capital expenditure (CAPEX) programmes growing from J$1.7 billion in 2021 to J$3.3 billion in 2022.
Most of this CAPEX is being spend on JPG’s Kingston Wharves subsidiary, where it is redeveloping the port facilities, in particular the birthing space and surrounding lands at a cost of US$25 million-US$30 million.
JPG Managing Director Jeffrey Hall gave an update on the CAPEX programme while speaking last evening (March 15) during a Mayberry Investments Limited Virtual Investor Forum.
He explained that work is far advanced on the projects to expanding the port facilities, which are all being done simultaneously, such as increasing birthing space to handle more container ships while clearing space in the dock.
New warehouse and additional birthing space
In addition, Kingston Wharves is also creating new warehouse and additional birthing space for expansion of the business given the capital investment being made to accommodate more cargo ships.
“We are doing is expanding one of our berths to handle more ships at the same time in the shipping business you got to be ready when the ships come; some of them may want to come all at the same time and you should be able to accommodate them,” Hall told moderator, Don Theoc, Mayberry’s senior vice president – investment banking.
Continuing, Hall stated: “In our case, we ought to be able to accommodate larger ships so we are spending money to accomplish that, redeveloping the births… .”
He spoke about the 130sq feet, mixed usage, ambient and cold storage facility on Ashenheim Road, which is in close proximity to the port.
According to him, “our intention is to build state of the art logistics facilities off dock but nearby so we are talking within a one-kilometre radius of the port. So we have identified an excellent site for that so the plan is we are doing that as we speak”.
Hall was quick to point out that Kingston Wharves is being operated efficiently and owns its own land within the port and therefore can expand and develop as it sees fit.
He explained that the developments of its logistics and port business in Europe, particularly the United Kingdom, remains on track and progressing.