The Caymanas Special Economic Zone (SEZ) has cleared a significant regulatory hurdle with the National Environment and Planning Agency (NEPA) granting partial approval for the 650-acre development.

The approval, noted in NEPA’s January board approvals, signals progress in the long-planned project, which is being led by the Port Authority of Jamaica (PAJ) and is expected to break ground before March 2025.

The Caymanas SEZ is envisioned as a major industrial and logistics hub, aimed at attracting warehousing, manufacturing, and transshipment operations. The Government has positioned the SEZ as a key part of its economic strategy, with the potential to drive investment and create new jobs.

According to PAJ president and CEO Professor Gordon Shirley, the project will be rolled out in three overlapping phases over 52 months. The first phase will focus on land preparation, including raising the terrain by 2.5 metres to meet resilience standards, a process expected to take 24 months. The second phase will see the construction of roads, drainage, and other key infrastructure, lasting 36 months. The final phase will involve the build-out of mixed-use commercial spaces, a process estimated at 30 months. The PAJ is projected to spend nearly $4.26 billion in the current fiscal year to commence work on the SEZ.

“Jamaica’s logistics ambitions are taking shape, and the Caymanas SEZ is a critical part of that vision. This development is designed to enhance the country’s capacity to handle logistics, trade, and industrial activities at an international level,” Shirley, who spoke on the project recently said.

Further, engineering works is advanced and the planning and investigation stage involving topological surveys and geotechnical investigations has been completed. The National Works Agency has also committed to designing the exits from the Mandela Highway to the zone.

The Jamaican Government has been actively promoting the SEZ as a prime investment opportunity. The Ministry of Industry, Investment, and Commerce, led by Senator Aubyn Hill, has said that businesses within the SEZ will benefit from a 50-year, tax-free incentive, covering profits and dividends.

“This is an unparalleled opportunity for investors looking to establish operations in a logistics-driven environment. With the tax benefits, infrastructure, and Jamaica’s strategic location, we are positioning the SEZ to be a major economic driver,” Hill, who has been instrumental in pushing for greater foreign direct investment, noted in a recent address.

However, when asked by the Jamaica Observer about investor interest and confirmed commitments for the Caymanas SEZ, Hill redirected the question to Professor Gordon Shirley. Attempts to reach Shirley for comment were unsuccessful up to press time.

The CSEZ, located in proximity to the Port of Kingston, is one of the initiatives of the Jamaica Global Logistics Hub programme. It is expected to complement the expansion of the Kingston Freeport Terminal (KFTL), which has seen consistent double-digit growth in container throughput in recent years. The PAJ has already developed a 200,000-square-foot logistics warehouse adjacent to KFTL, which is fully tenanted, signalling strong demand for industrial space.

The Government has also directed the PAJ, the Airports Authority of Jamaica, and the National Works Agency to assess the potential for expanding logistics operations onto lands at Tinson Pen Aerodrome, linking these developments into a broader logistics corridor.

— Karena Bennett