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Columns
June 8, 2015

How not to build a logistics hub

Following on the announced, but yet to be explained, $5-billion investment in unnamed Jamaican Logistics Hub related projects, I am increasingly concerned that Port Bustamante could end up as an equal casualty of a Government that, having rejected and all but ignored the Jamaica Labour Party’s Hub Plan, now finds itself floundering to seek to understand the concept of a logistics hub as opposed to a trans-shipment port.

Sadly for Jamaica we are rapidly losing our leading position as a potential world-leading, integrated, multi-modal logistics hub, and are quickly on our way to remaining a glorified trans-shipment port.

Prior to the hasty signing of the MOU with Terminal Link, of which CMA CGM is a part owner, to take over the operations of the Kingston Container Terminal (KCT), I made the position of the Opposition very clear as to concerns we had over the arrival at this agreement and as such raised the issue with the Office of the Contractor General (we still await his report), especially as it relates to the full ownership of Terminal Link and the ability of that entity to fast-track our port development and the dredging of the port.

I raise this as a great part of my concern was that the development of KCT would be done at the economic discretion of Terminal Link/CMA who by the terms of reference of the agreement are allowed to develop at their ability to finance the development and ongoing operations.

My concern is now heightened by the recent signing of an agreement in Cuba by CMA CGM, with great fanfare and in the presence of French President Hollande and French Minister of Foreign Trade Matthias Felk, to develop the major Cuban port, as for me and others in the shipping industry it raises the question: How can you serve two masters? Financed by the Brazilian Government, and with the public support of the highest political office in France, one must wonder at the very low level of attention which the KCT signing attracted when the French officials were here in the Caribbean.

And with the ownership of Terminal Link still not clear, which development will be the priority? All this against the backdrop that the upgraded Panama Canal is to open in 2016.

I am calling on the minister of transport to review the progress being made by Terminal Link in their present six-month assessment and urgently determine whether we should proceed with that entity.

I also ask the minister to have the Port Authority tell us now what is the proposed scheduled for dredging to start, the expected extent and duration, as well as the timetable for other supporting activities, ie replacement of equipment, rehabilitation and maintenance of existing sea walls, etc.

We should also be clearly advised how the Cuban port development fits into CMA CGM economic plan in light of the stated intention of the Cuban Government to build out a logistics hub to clarify the simple question of which will be a hub and which a trans-shipment port?

Jamaica demands no less, as this was, and is our most likely only hope for growth.

Mike Henry, CD, is member of parliament for Clarendon Central and Opposition spokesperson on transport and works.

Port Port Authority.jpg

Jamaica is losing its leading position as a potential world-leading, integrated, multi-modal logistics hub, and well remain a glorified trans-shipment port.

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