Phase 1 of Spanish Town Free Zone set to start
The promised creation of 10,000 jobs from the development of the Spanish Town Free Zone is a step closer to execution, but not before 2019 or two years more than the time announced last October.
Holding company and promoter of the free zone, GulfRay Americas Manufacturing Limited (GAML) during a tour of the proposed construction and development site on Wednesday, told the Jamaica Observer that phase one of the project will be operational by July and is expected to offer 430 new jobs.
But that is 2,070 jobs less than the promised 2,500 new jobs that were said would have been available around this time by the operator, with heavy backing from then Government during the official launch last year. Expectations were that an additional 7,500 jobs would become available by 2017.
“I’m not sure the basis on which the Government made their job projections. It’s not a Government project, so they have no idea what the timelines are in terms of how we are rolling out the various milestones. When we unveiled the project, that was more to make the public aware as to what we are doing and the promise it holds for everyone, including the Government,” executive member of GAML, Neville Wallace told Sunday Finance.
Nonetheless, the free zone is expected to be fully operational between mid 2018 and 2019, following submission of the building plan and is still projected to offer 10,000 high-level jobs to the local economy in the areas of chemical and mechanical engineering, manufacturing, petrochemicals, logistics and research.
The first 430 jobs will come from the opening of two plants, one of which is a petrochemical plant owned by GAML whose products will be distributed by Atlantic Grease and Lubricant, Dubai (AGL). The plant covers 140,000 square feet and will produce automotive, hydraulics, industrial, commercial mining, marine, and specialty lubricants and gear oils, among others, for the local and international markets.
Blending capacity is 250,000 litres per day, totalling 10 containers, six of which will be supplied internationally.
“The packaging line should come by mid July, after that we will be ready for the Jamaican market,” another GAML executive said.
Last year, GAML announced that it would begin the development and management of phase one of the Spanish Town Free Zone to the tune of US$350 million. Construction for phase two should begin September and will be home to India-based engineering company, Texplas Group, a solar panel and a battery and vehicle assembly plant, both operated by Chinese nationals.
GAML will also construct and operate a distribution facility covering 300,000 square feet, in addition to office and commercial space for a business process outsourcing (BPO) unit and Caribbean entertainment and production studio, Nexus Networks. The zone is also being built for the short-term accommodation of 1,000 international operators, and will hold a service office and underground archiving services for each operator.
The zone, which currently spans eight acres, will be redeveloped to include more than 42 acres, accommodating new expressions of interest — one of which is the much-anticipated China National Automotive Industry International Corporation (CNAICO), a large, state-owned group and a Fortune Global 500 enterprise which will assemble and distribute motor vehicles, trucks, forklifts and buses.
Already, the Chinese vehicle company has assembled 39 entry-level vehicles under the brand MG, to be showcased by staff over the next few months.
On completion, the free zone will be occupied by at least seven international companies, all of which have already signed an agreement for a minimum 10-year lease of the facility.
The expansion of the Spanish Town Free Zone will facilitate the movement of goods from Jamaica to Central America, Columbia, Cuba and the Caricom markets. It’s an initiative focused on the country becoming the logistics hub of the America’s and the fourth node in the global logistics network joining Dubai, Rotterdam and Singapore and capitalising on the country’s strategic location at the centre of the east-west and north-south trade routes.
During the launch of the Zone, the general manager of CNAICO, Liu Xiado, told the audience that the company reconsidered opening operations at the Mariel Economic Zone in Cuba and instead chose the Spanish Town Free Zone based on Jamaica’s availability of an English-speaking skilled labour force, its central location with good transportation links and utilities, commercial services available within walking distance and the increasingly welcoming business environment.