Logistics Hub

The Government of Jamaica totally understands that the environment must be protected, and as such sustainable development will be duly exercised during the implementation of the logistics hub.

All infrastructural development results in some degree of change to the environment, however, the Government will work with stakeholders and be guided by the recommendations of Environmental impact Assessments, to minimize risk to the natural environment. Where necessary, pre-emptive and corrective measures (mitigation) will be implemented.

Surrounding communities will benefit from employment, business-to-business linkages, infrastructural development and the development of Urban Support Areas. The expansion of the logistics and maritime industry will involve increased linkages between and among several industries, including third party logistics, accounting, professional services, commercial services, drivers and equipment operators, repair technicians and information technology professionals etc.

The Government of Jamaica is creating an environment in which MSMEs can thrive and effectively contribute to the growth and development of the economy. To overcome the barriers to entry, the GOJ, with support from our international development partners, namely the World Bank and Inter-American Development Bank (IDB), are implementing special structures to support MSMEs operating in Jamaica’s Global Logistics Hub.

The Government will ensure a very supportive environment for logistics activities through an appropriate legislative and policy framework as well as tax incentives, which are attractive to investors and eliminate some of the red tape involved in doing business.

Let’s say a major manufacturer in China ships 10 million white umbrellas to Jamaica. They are transported to an economic zone. When an order comes in from Dallas for two million pink umbrellas, the dying of these white umbrellas, packaging and shipping them to Dallas represent the value added service to be facilitated through the physical infrastructure of a logistics hub. Each alteration, addition or assembly (e.g. dying, packaging, inserting instruction leaflets in different languages, adding barcodes) attracts a fee regarded as value added income.

Special Economic Zones (SEZs) are specially planned economic zones operating outside of Jamaica’s customs territory with attractive incentives where licensed activities, will takes place with the requisite supporting trade andbusiness facilitation. The modern SEZ regime is different from the existing Free Zone regime which mandates that 85% of goods produced in the zone have to be exported. The SEZs will permit the importation of goods manufactured in the zone into the national territory without any restrictions other than the application of import duties and taxes.

• Logistics Hub retreat in January 2013 brought together Ministries, Departments and Agencies (MDA) and allowed for more coordinated action
• Pre-feasibility Study
• Cabinet established inter-governmental Logistics Taskforce
• Creation of inter-governmental working groups
• Meetings with investors from China, Singapore, Rotterdam, Kuwait, Dubai, Germany, Canada, USA, Europe
• World Class investors and operators actively engaged in securing assets being privatized
• Proposed $1.5 billion investments for Port Esquivel Economic Zone

The hub is being implemented on a phased basis led by a skilled task force comprised of a wide range of key personnel from public and private sector organizations. Implementation will be guided by a master plan which includes restoring existing infrastructure and developing new ones including ports, airports, warehousing and bulk storage facilities, primary processing and packaging zones. This will pull together road, rail, air and digital communications infrastructure. Supporting residential, commercial and recreational facilities will also be available across Jamaica.

The logistics hub initiative is a process. It is important to understand that Jamaica is not starting from scratch as we already have many existing logistics assets such as the Port of Kingston, airports, trade agreements, CMI, political stability and the rule of law.

• Expansion of the Kingston Container Terminal and airports, logistics parks and warehousing
• Strategic storage of manufactured products and bulk supplies, ship repair, dry docking and aircraft maintenance and repair
• Bulk commodity, which represent roughly 85% of global trade, to be built mainly along Jamaica’s southern coastline
• Other terminals which will cater to bulk minerals, grain and other commodities, enhancing Jamaica’s food and energy security