THE logistics hub is a concept of development and not a physical place, as is believed by many. In essence, it requires our economy to transition from a “trans-shipment type operation” to a gateway port.

A trans-shipment type operation sees main line ships discharging large numbers of containers at the Kingston Container Terminal (KCT) — hub port — which connects to small feeder ships serving the Caribbean, North, Central and South American markets. Feeder ships will later return the empty containers to the hub port, which will then be repositioned primarily to the Far East for reloading. A gateway port, such as London Gateway and DP World – United Arab Emirates, is an extensive port facility integrated into a major logistics park. This now becomes an economic driver that can attract development of other logistics zones.

Since the global recession of 2008, the concept of trans-shipment has lost its attractiveness to global shipping lines, as nine out of every ten containers coming into Jamaica have no matching exports. Hence, the cost of import has to bear the empty container return, making the average freight cost 30 per cent higher than the average for the rest of the world.

Based on this reality, Jamaica now has to reinvent itself in order to benefit from the global logistics chain. This will require Jamaica to expand and develop the current trans-shipment port to include value-added activities, as opposed to exchanging full containers for empties, which yields very little revenue.

In addition, the country will need to establish a new gateway port facility that will incorporate a new cost-efficient port with an integrated logistics park where major companies can provide value-added services. This will convert many empty containers being shipped out under the traditional trans-shipment model to be utilized by value-added export cargo.

Logistics performance

Logistics performance is the main challenge of the Jamaica logistics hub. To address this challenge, a number of projects are underway, such as automation of the Customs clearance process with ASYCUDA (Customs management system), modernisation of KCT infrastructure, as well as Goat Islands Greenfield Project, capacity-building for logistics and improving the cargo dwell time with the implementation of the port community system.

Port Community System

According to the European Port Community System Association, a port community system (PCS) is a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air port’s communities. PCS will optimise, manage, and automate port and logistics efficient processes through a single submission of data and connecting transport and logistics chains.

PCS will provide to all logistics stakeholders a collaborative platform to manage all their Business to Business (B2B), Business to Government (B2G), and Government to Business (G2B) logistics operations for import, export, and trans-shipment.

Key features of PCS will be:

* end-to-end transport and logistics chain management

* real-time tracking and tracing of all cargo operations

* discrepancies management of all cargo data

* key performance indicators (KPIs) for all stakeholders

* secured e-business platform

A PCS is one of the critical pillars if Jamaica is to be developed as a global logistics hub. The strategic objective of the implementation of PCS for Jamaica is to become a regional transport and logistics hub.

ASYCUDA — Customs management system

ASYCUDA World promises to significantly improve the Customs IT system used for assessing declarations on imported and exported goods. ASYCUDA World is a further development of ASYCUDA++ and ASYCUDA R2 launched in the 80s using Web-based technology.

ASYCUDA World automates handling of all the steps of the clearance process for all types of Customs procedures and regimes, as well as accounting and supporting the application of modern operational principles:

The full abilties include:

* effective management of the Customs clearance process;

* selective examination practice;

* trader compliance;

* anticipated or guaranteed payment schemes to facilitate trade and secure duty collection;

* control of trade routing to approved Customs clearance offices.

The core functionalities of ASYCUDA World are designed to:

* facilitate and improve the calculation, collection and accounting of Customs duties and other charges related to Customs operations;

* speed up the clearance of goods and prevent smuggling;

* provide the Customs management with timely and accurate information.

Rationalisation and standardisation are essential for streamlining the clearance process and the ASYCUDA program uses norms and conventions as stipulated in the WCO Customs Data Model and the World Custom Organisation (WCO) SAFE Framework of standards. ASYCUDA will be a key solution for Customs reform.

Conclusion

ASYCUDA Customs management system is an important element for modernising our Customs Department and services, which essentially is one of the major bottlenecks in the flow of global trade, in and out of Jamaica.

I was very disturbed by an article I saw recently where it was intimated that ASYCUDA was being considered to see if it could provide the functionalities of a PCS. The two are completely different. I should further highlight that, in a similar vein, the e-Gov platform was also looked at as a replacement for PCS.

All three systems are vital to provide the efficiencies required by the global supply chain and as such, our approach has to be driven by a needs-analysis as opposed to an evaluation by IT professionals of the features provided by each system.

In summary, a PCS is not an IT project, but a change-management project, allowing Jamaica to provide visibility to the global supply chain. This must be treated with utmost urgency if we are to move forward to fulfilling our growth agenda.

Dr Fritz Pinnock is the executive director at Caribbean Maritime Institute.