Jamaica's economic prospects will grow with logistics hub

The establishment of logistics hubs presents several advantages for regions and countries in which they are situated. Internationally, logistics hubs such as Dubai, Rotterdam, Singapore, and Dallas have encouraged investment in value-added and support services such as light assembly within the hub and attracted major multinational corporations. Such investments have the effect of stimulating further employment and economic growth throughout the whole economy.

In his contribution to the 2013-14 Sectoral Debate in Jamaica's Parliament on May 14, 2013, Minister of Industry, Investment and Commerce, Anthony Hylton, announced Jamaica's Logistics Hub Initiative, which will establish the country as a global trans-shipment zone over a 10-year period.

increased traffic

It is expected that the initiative will position Jamaica as the hub for the Americas by exploiting the country's location along many international shipping routes and increase traffic through the region created by the opening of the expanded locks in the Panama Canal in 2015. Jamaica is strategically placed and provides easy access to a market estimated at 800 million persons in the Western Hemisphere, including Brazil and the United States.

The proposal tabled by the minister includes several projects, including the dredging of Kingston Harbour and the expansion of the Kingston Container Terminal to receive larger vessels, construction of drydocking facilities, as well as an air cargo and passenger facilities in Clarendon.

Allied to this will be the development of the Caymanas Economic Zone, which will be linked to the Port of Kingston and which will focus primarily on distribution, agro-processing, manufacturing, and creative sectors.

Recently, it was announced that the China Harbour Engineering Company had expressed an interest in establishing an industrial park on the Goat Islands, off the coast of St Catherine.

potential economic impact

An example of the potential economic impact of a logistics hub can be seen from a review of the success of the Jebel Ali Free Zone (Jafza) in Dubai. It was established in 1985 and is now considered the world's fastest-growing free zone. Jafza boasts over 6,400 global companies, including more than 120 Fortune 500 enterprises, and has helped sustain more than160,00 jobs in the United Arab Emirates (UAE). Over the past four years, the zone accounted for 20 per cent of all foreign direct investment inflows to the UAE and contributed approximately 20 per cent of Dubai's gross domestic product (GDP) on a year-to-year basis. Dubai has earned in excess of US$80 billion in GDP since 2008.

Jamaica's thrust towards becoming a logistics hub will stimulate employment opportunities during the construction and implementation phases of the various projects as well as the demand for additional administrative and skilled labourers. However, there is also potential for the provision of professional services such as marketing and business management consultancies, demand for financial and legal services, food and beverage concessionaires, and increased visitor arrivals, which will enhance the country's tourism sector.

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