Jamaica:Jamaica: A Regional Manufacturing and A Regional Manufacturing and

Logistics HubLogistics Hub

Sancia Bennett-Templer4th Annual UK-Jamaica Investment Forum

March 29, 2012

Global Manufacturing & Logistics

The global manufacturing industry accounts for approx. 16.6% of world GDP (2010 est.)

It is estimated that the global logistics market will reach a value of US$4 trillion by 2013

Retail logistics services dominate the global logistics market with 63.9% of the market's value

The Americas accounts for 35.2% of the global logistics market's value

• Jamaican manufacturing sector accounts for approx. 8.3% of the country’s GDP

• The sector employs just over 74,000 (up from 69,400 in 2004) or 6.8% of the total labour force

• Between January and November 2011 total merchandise exports grew by 2.7 per cent or US$1.6 million to US$62.6 million.

• Food, Beverages & Tobacco category is the most dominant sub-sector

• Export of “Food”, grew by US$2.2 million to US$18.9 million from the the same 2010 review period, while “Beverages and Tobacco” increased by US$2.5 million to US$6.6 million.

Jamaica’s Manufacturing Sector

Why Jamaica for Manufacturing & Logistics?

Location•Suitably placed along the North-South trading lines within the Americas as well as East-West trade.• Capacity weakness of other

ports along the Eastern Seaboard to handle super tankers (up to 13,000 TEUs) to be facilitated by the expansion of the Panama Canal

• Jamaica’s well-developed and established cargo networks

Why Jamaica? (2) State-of-the-art port facilities

Port of Kingston: 37th most connected container port in the world

16th most centrally located container port in the world

4th “best-connected port of the 180 within the region

Strong telecommunications infrastructure

Large pool of English-speaking skilled and trainable labourers

Development of Jamaica as an International Business Centre

Why Jamaica?(3)• Trade Agreements– CARICOM: Caribbean Common Market – provides

duty-free access to Caribbean member-states, as well as a number of other countries that have bi-lateral agreements with CARICOM

– Caribbean Basin Initiative: allows for over 90% of Jamaicans exports to enter the US market duty-free either

– EC-CARIFORUM Economic Partnership Agreement: Allows for duty free, quota-free access of most Jamaican products to the EU.

Major Manufacturing & Logistics Brands

Opportunities for Manufacturing

• Light manufacturing identified for development and promotion – other sub-sectors being assessed

• Focus on agro-processing – adding to the local value chain and building Brand Jamaica

• JAMPRO is currently seeking to identify imports, which can be locally produced in large volumes

Major Opportunity in Logistics – the International Multimodal Centre

What is the Jamaica’sInternational Multimodal Centre?

Part of GoJ’s push to further develop the country as a major manufacturing hub

Project concept incorporates several discrete logistics to offer multiple modalities in order to position Jamaica as the logistics hub of the region

Spans the southeast coast of the island

International Multimodal Centre

JAMAICA RAIL JAMAICA RAIL NETWORKNETWORK

PORT OF PORT OF KINGSTONKINGSTON

Caymanas Economic Zone (CEZ) 1500 acres of prime real estate Situated at the confluence of

the major population centres of Kingston, Spanish Town and Portmore

Intelligent self-contained city based on work-play-live concept

Modern shipping and trans-shipment services located within close proximity to Port

Dedicated transportation hubs and other support services

Vernamfield Aerodrome & Cargo Facility

Located in central Jamaica, Vernamfield comprises 2,900 acres of land

This multi-modal hub will comprise:⁻ Air Cargo (centralized sorting and

clearance centres)⁻ Express Courier Cargo Handling Facility⁻ Fully equipped aerodrome with

telecommunications centre and flexible runway capacities

⁻ Air/Sea Logistics (distribution centres, commercial space for trade shows, fire and rescue station)

⁻ Dry port concept (warehousing facility for off-site manufacturing and assembly plants)

⁻ Aircraft maintenance facility

Jackson Bay Dry Dock Facility Located on Jamaica’s South

Coast Proposed services to be

offered by the Dry Dock: Ship rehabilitation & refurbishing

Specialised marine Water supply and waste

management Service and maintenance repairs Refueling ship-to-ship

To meet increasing service needs of international shipping industry

Cow Bay Port Development Proposed logistics and transship hub will accommodate

vessels larger than Panamax size. Water at Cow Bay is deepest in the Americas. Facility at the conceptual stage; will require extensive

development. Proposed development

will include:– 26,000,000 barrel crude

and product storage– Gas storage– Blending & transshipment

terminal– 16 berths/docking facilities

Cow Bay Port Development

Port of Kingston Major transshipment point within the Western

Hemisphere KCT rated in the top 100 among the world's

leading ports. Current annual capacity of 2.2 million TEUs.

Planned Expansion of KCT– Additional equipment to boost activities,

e.g. reefer plugsDevelopment of Fort Augusta Container Terminal

To be developed to expand capacity to meet market demand for port facilities in the region, esp. in light of an expanded Panama CanalTo provide additional berthing of 1,500 metres, and develop 173 acres of yard space and value-added logistics capabilities.

Planned expansion will increase current capacity from 2.2 to 3.2 million TEUs

Jamaica Rail Network Freight from Port of

Kingston to multimodal hubs (i.e. Caymanas, Vernamfield, Jackson Bay and Cow Bay)

Transportation of cargo to and from other facilities within the International Multimodal Centre

• Transportation of aggregates from mines to various port facilities in Jamaica

Next Steps International Multimodal Centre

Completion of feasibility studies Continued expansion of the Port of

Kingston Commence elements of the Caymanas

Economic Zone Development of PPP structure

Seek private partners for project implementation

JAMPRO: What We Do– Investment facilitation/implementation

• Provision of investment opportunities/profiles• Identification of land and factory space• Assistance with Procedures, incentives and

approvals• High level access to government ministries and

agencies– Trade Promotion and Business Development

• Market access and market penetration services • Trade Show participation• Business Matchmaking Services/Linkages events• Enterprise Development

THANK YOUTHANK YOU