The Port of Kingston is closer to becoming a node in the international network of trans-shipment points or logistics hubs after the completion of the redevelopment of the Kingston Wharves Limited (KWL)-operated Berth 7.

A US$30-million investment, the project was financed by Scotiabank Jamaica and managed by US company Brayman Construction.

“We have refurbished 182 metres of first-class modern berthing facilities. We have gone outward into the sea…to have this berth be contiguous with berths eight and nine, that [were] done over 14 years ago,” Mark Williams, CEO of KWL, shared with a gathering for the commissioning of Berth 7 on Thursday.

The cost of the reconstruction of berths 8 and 9 was US$26 million, he added.

Since the announcement of the redevelopment of Berth 7 in 2022, the restructuring and reoperationalising has involved the extension of the dock seaward by 15.24 metres and dredging to a depth of 12.5 metres. The rehabilitation of the dock has been heralded by KWL as a move that will boost the port’s capacity to host larger Panamax size vessels and, by extension, its competitiveness as a shipping destination.

The US$30-million expenditure is only half of the capital projects being pursued by KWL. Another US$30 million has been deployed to the company’s Integrated Logistics Complex at Ashenheim Road in St Andrew. The first phase of that project will include the construction of 74,000 square feet of dry logistics space and 57,000 square feet of cold storage slated for completion in the first quarter of this year.

Over the last decade the logistics services provider has invested US$100 million in the business, including the construction of a new KWL head office and the Total logistics facility, the establishment of the 20-acre Global Auto Logistics Complex at the Tinson Pen Aerodrome, improvements to its on-dock motor vehicle facilities, and investment in technology and human resources.

During those 10 years, domestic cargo has grown by over 260 per cent, trans-shipment by 319 per cent, and motor units by 164 per cent, according chairman of the Port Authority of Jamaica Professor Gordon Shirley.

“So I can only imagine what will happen now that you have even more facilities in the works. We applaud the work which has been done and the outcomes of those efforts,” he continued, noting that Port Authority is committed to partnering with and support the efforts of KWL.

“We look forward to working with you as you expand your vision of neo-port logistics in the area. We look forward to working with you on the development of New Port West. We look forward to working with you to make Kingston one of the most secure ports anywhere in our end,” Shirley added.

Looking ahead, Williams said that the KWL team has mapped a “robust strategic plan” for the next three to five years that will see the company spending US$120 million. A part of that plan involves converting berths one to five into docks for bulk cargo and motor vehicle units and designating berths six to nine for containerised cargo.

“To complement the expansion of Berth 7, we plan to do major rehabilitation work to create what we call a container yard facility…That will be another three to five million US dollars. We have to have this terminal well invested, well organised, and very efficient that we can compete with the best in the world,” the KWL CEO disclosed.

He added that the company will “pursue a comprehensive strategy of terminal optimisation” that will see the demolition of all existing buildings on dock and the construction of new buildings on property being acquired.

“We have been spending a large sum purchasing properties…and we’ll be expanding and creating more logistics warehousing solutions,” Williams explained.

The company will also construct a multi-level car park with the capacity for 1,500 to 2,000 motor vehicles to meet the demand of its autoliner partners that need a trans-shipment hub to move cars between the US and Australia.

Speaking to Jamaica Observer following the commissioning of the berth, KWL Chairman Jeffrey Hall underscored the magnitude of the investment in Jamaica as a trans-shipment hub, pointing out that the country is trade-dependent, evidenced by its growing imports and exports. He added that the company’s planned Integrated Logistics Complex will house “global logistics occupants” when it becomes operational.

When asked about what prospects the company is exploring to expand its logistics business, the chairman noted, “We see that Jamaica needs improved capabilities everywhere, and, in fact, not just Jamaica, but the Caribbean. And so we will look wherever we see the need and the capacity to make a difference and add value.”

He highlighted that as both chairman of Kingston Wharves and CEO of Pan Jamaica Group, “We [the companies] believe that we need to be invested in a network of logistics capabilities, which include ports…and also as a shipping service.”

Hall said that he anticipates a 15 per cent annualised return on investment from the rehabilitation of the refurbished berth.