Frequently Asked Questions - Logistics Hub

The logistics hub initiative will provide the atmosphere for the creation of numerous jobs, which will include maintenance, assembly, machinery repair and dry docking, packaging and labeling as well as administrative, technical and legal jobs. Equal opportunities for business and employment will be offered to all Jamaicans

The ability to communicate effectively in a foreign language is a useful skill in a logistics centred environment. With global investors setting up shop in Jamaica, having one or two foreign languages will put you a step ahead of the pack. Start learning one today.

Several institutions have already revised their curriculum to include Logistics and Supply Chain Management and other logistics related courses, at the undergraduate or post graduate level, as well as short certificate courses. Institutions include UWI, CMI and Heart Training Institutions. It is expected that logistics and supply chain management will be added to the CAPE syllabus. These amendments are done in partnership with The Ministry of Education and the Logistics Hub Education and Training Working Group. Check the tertiary institution nearest you.

Certification and Skills training will be a major requirement to benefit from the logistics hub initiative, this can be done at recognised vocational and tertiary institutions, including the Caribbean Maritime Institute (CMI), Human Employment and Resource Training (HEART), University of Technology (UTECH), Northern Caribbean University (NCU),University of the West Indies (UWI) and University College of the Caribbean (UCC).

• Education and training is being discussed with various tertiary institutions and HEART NTA, to ensure modified, targeted training
• Key steps will be implemented to ensure that the Jamaican workforce and entrepreneurs can take full advantage of the upcoming opportunities
• Other priority activities including infrastructure, social development and enabling legislation

Entrepreneurs are encouraged to take the necessary steps to ensure their businesses can operate competitively with local and foreign businesses and supply goods and services to consumers all over the world. There are a number of organizations that provide business development support to assist local entrepreneurs with gaining the requisite skills, standards and certification. These include:

• Jamaica Business Development Corporation (JBDC) : Business Development Support, Training and Technical Support
• Jamaica Intellectual Property Office (JIPO) : Intellectual Property Protection
• Jamaica Promotions Corporations (JAMPRO) : Export and Trade Promotions and Facilitation
• Bureau of Standards Jamaica (BSJ) : Goods, Services and Processes Standards and Capacity Building
• Companies office of Jamaica (COJ) : Registration of Companies
• Factories Corporation of Jamaica : Office and Factory space provision
• Micro Investment Development Agency and Self Start Fund: Small business financing

The Government of Jamaica has been working assiduously to expedite the passage and amendment of key legislation in a timely manner for the implementation of the logistics hub.

The average individual and small business operators will see numerous benefits. Trained individuals will be afforded the opportunities of gainful employment while existing small business operators will have the option of expanding their operation to meet new markets and provide avenues for more efficient manufacturing through the logistics hub initiative.

Road, rail, sea and air are critical aspects of the Hub. This will be critical to the sea to air connectivity strategy, a key selling point of the Hub. It will also connect the SEZs and will function as a key method to create the backward linkages into the domestic economy. It’s all about creating a logistics centred economy.

The role of the GOJ, through the Ministry of Industry, Investment and Commerce, is to set the framework through policy, legislation, regulation, international policy engagement, education and training etc, for the private sector, local and foreign, to develop the 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 expansion of the maritime and logistics industry represents an injection of capital investments by both the government and private firms. This will have the effect of creating more direct and indirect employment for the workers in the maritime and logistics industry and the suppliers of goods and services  from other closely linked industries. More employment creates more income for businesses which can stimulate greater business-to-business linkages with and across industries. Development of road networks, utility systems and other infrastructural developments including the build-out of Urban Support Areas (proper housing, transportation, schools, hospitals and recreational infrastructure) will enhance the communities and boost the welfare of persons living, working and operating businesses in the areas.

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. The special economic zone will create jobs as it provides a framework through which value added services can be offered to incorporate the skills and competences of our workforce. This is a critical feature of the hub, through which economic benefits can be derived.

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
• Expression of interest from world class Drydock operator to establish facility to repair ships and oil rigs
• Expression of interest to establish maintenance, repair and overhaul facility
• Expression of interest from Chinese Company, ZPMC to establish crane assembly plant
• Expression of interest from Chinese company to develop Special Economic Zone and transhipment port
• Proposals for the establishment of several industrial parks
• Proposals to build and operate Vernamfield airport from Canadian and Middle East investors
• Formation of the policy steering committee that will guide the development of the policy framework for the SEZ regime
• Cabinet approval of the Public Private Partnership (PPP) structuring for the operation of the Kingston Container Terminal (KCT)
• Cabinet has approved the upgrade of some air navigation systems to meet international aviation requirements to facilitate projected long term growth in air traffic and improve air safety
• Upgrading of customs management systems to ensure a more streamlined and efficient customs experience
• Logistics 101 awareness sessions delivered to thousands of Jamaicans
• Institutions’ development of courses and TVET training in Logistics
• The Superform, Security Interest in Personal Property (SIPP) Bill and collateral registry, which form part of the Government’s business reform agenda, designed to enhance the investment environment and ultimately spur entrepreneurship and economic growth

A critical element in the equation to make the Logistics Hub successful is the involvement of suitable, long-term investors. The GOJ is already in conversations with some prospective partners as well as looking for new ones

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

• Major manufacturing and distribution companies with offices and/or warehousing facilities
• Logistics companies handling trade-related deals globally for goods and services will be housed in the logistics hub
• E-commerce, import and export-related activity, financial, free zone and cargo/mail/passenger hub activity
• Intermodal transfers of passengers, cargo and mail and related education and training, plus cargo security activities and intermodal transport and trans-shipment of goods
• Value-added activities including assembling, processing, packaging, labeling, preparing instruction booklets and finishing, i.e. getting goods to completion
• The activities will be supplemented by a wide range of services, typically provided by Micro, Small and Medium size Enterprises (MSMEs), geared towards supporting activities within the hub, and also supporting the general well-being of people working in the hub

• Jamaica sits at the doorway of the Panama Canal - at the junction of global trade corridors with regional  trade routes
• Maritime, aviation and telecommunications capabilities which are particularly attractive to investors seeking to enter new markets
• Our natural competitive advantage is being refined around sea-sea, sea-air and air-air connectivity supported by free zones, special economic zones, industrial parks, logistics parks, and technology parks
• A highly skilled, educated and trainable workforce, and the third largest English-speaking nation in the Western Hemisphere

  The Government is positioning Jamaica as the fourth global logistics connecting point, comparable to Singapore, Dubai and Rotterdam, to help transform Jamaica’s economy and create jobs. The initiative is geared towards achieving continued growth, fitting Jamaica into the global value chain and bringing significant investments to Jamaica. The hub will allow Jamaica to capitalize on increased trade flows through the region as a result of the expansion of the Panama Canal in 2015.

  As a direct result of the global investment promotion and marketing efforts of the Ministry of Industry, Investment and Commerce, the country is already attracting global and local investors and businesses.

•  Globalization has resulted in major shifts in global trading patterns
•  Growth of new trade centres in the emerging markets of Brazil, Russia, India, China and South Africa (BRICS)which is expected to accelerate with the expansion of the Panama Canal, due to be completed in 2015

Shippers serving the 800 million person market in the Americas, in particular, and other markets, need to make the most of cost efficiencies of sea freight with that of the quicker but more expensive air freight. Finalizing production processes in locations close to the final consumer, allows for speed, efficiency and reduced costs to everyone.

Integration of Jamaica into the global value and supply chain

•  Integration of Jamaica into the global value and supply chain
•  Transformation of the Jamaican economy
•  Provision of tens of thousands of jobs
•  The development of projects according to highest environmental standards
•  The opportunity for training and development of new careers

A centralized geographical location that brings together the key business operators in logistics, e.g. manufacturers,shipping lines, air cargo companies, third and fourth party logistics providers (e.g. express cargo service providers), and logistics support services. Raw material and unfinished goods are stored, processed, finalized and managed in the logistics hub, closer to final consumers. The Hub also provides a clearing house for data, facilitating digital processing and quality management systems to track and trace shipments.

Every one of us is a consumer, and the products we use – clothing, food, medicines, car parts, building materials etc. – usually originate in different countries. Put simply, logistics is the process by which these goods get to us.

Logistics services have always existed to get products from producer to consumers; because producers and consumers are now spread across the globe, logistics therefore involves the combined effort between modes of transport, infrastructure, documentation, storage, tracking and tracing, to convert raw materials into intermediate goods and final products.