(Jamaica Gleaner) Anthony Hylton, the minister of industry, investment and commerce, announced Tuesday plans for the development of a global shipping and logistics hub for Jamaica as the flagship project of his ministry, but said its chief role would be hunting down capital and investors.
Hylton offered no details on what it would cost to develop the hub or the number of jobs it would create, saying only that its five components would be attractive to investors given the expansion of the Panama Canal.
None of the projects are new.
Two of them have indicative pricings that total J$106 billion.
Hylton said he has already received expressions of interest from potential investors in the Persian Gulf for the development of the hub, which he says could position Jamaica as the logistical centre for trade in the Americas.
The plan has five elements:
the dredging of the Kingston harbour and expansion of port facilities;
the establishment of a dry dock facility at Jackson Bay, Clarendon;
a bunkering facility at Cow Bay in Yallahs, St Thomas;
construction of a cargo and maintenance, repair and operations facility at Vernamfield in Clarendon; and development of the Caymanas Economic Zone (CEZ).
All five projects are carryovers from former administrations. Hylton said he has no intention of starting from scratch with any project, and was more focused on helping the respective agencies and ministries tie down financing to get the projects off the ground.
The CEZ is the only one of the five projects to fall within the purview of the industry ministry. The others are energy and transport related.
Vernamfield was previously costed as a US$1-billion (J$87b) project of the transport ministry; while the economic zone, which is being managed by the Factories Corporation of Jamaica, has indicative pricings of at least US$210 million (J$18b), as well as J$900 million for land acquisition.
Luring foreign
capital
No estimate of the total size of the investment needed was given, but Hylton suggests that capital is more open to such projects now that the Panama Canal expansion is under way. The canal project has a 2014 deadline.
“Major developments in the global shipping and logistics industry and the geography of global trade have created an enviable window of economic opportunity for Jamaica … . This investment opportunity is considerable,” said Hylton.
“Altogether, these projects represent potential investment effort that will drive growth and employment for many years,” he said. “The ministry’s role is to help in defining the investment opportunities and to work across ministries to implement this vision.”
No timelines were given for the projects’ implementation.
Hylton, who announced the hub at a press conference that focused on a 10-point strategy for his ministry, said he is proposing a policy-driven approach to promoting investments and sectoral growth.
“The strategic focus of the MIIC will be on restructuring and rationalising its operations to modernise our industry, stimulate investment and facilitate commerce,” he said.
Mum on tax
breaks, waivers
He made no promises of tax breaks, waivers or cheaper funding for business development, citing Jamaica’s limited finances.
