Jamaica A Regional Manufacturing and Logistics Hub 4

Jamaica: A Regional Manufacturing and Logistics Hub 4 th Sancia Bennett-Templer Annual UK-Jamaica Investment Forum March 29, 2012

Global Manufacturing & Logistics § The global manufacturing industry accounts for approx. 16. 6% of world GDP (2010 est. ) § It is estimated that the global logistics market will reach a value of US$4 trillion by 2013 § Retail logistics services dominate the global logistics market with 63. 9% of the market's value § The Americas accounts for 35. 2% of the global logistics market's value

Jamaica’s Manufacturing Sector • Jamaican manufacturing sector accounts for approx. 8. 3% of the country’s GDP • The sector employs just over 74, 000 (up from 69, 400 in 2004) or 6. 8% of the total labour force • Between January and November 2011 total merchandise exports grew by 2. 7 per cent or US$1. 6 million to US$62. 6 million. • Food, Beverages & Tobacco category is the most dominant sub-sector • Export of “Food”, grew by US$2. 2 million to US$18. 9 million from the same 2010 review period, while “Beverages and Tobacco” increased by US$2. 5 million to US$6. 6 million.

Why Jamaica for Manufacturing & Logistics? Location • Suitably placed along the North. South trading lines within the Americas as well as East-West trade. • Capacity weakness of other ports along the Eastern Seaboard to handle super tankers (up to 13, 000 TEUs) to be facilitated by the expansion of the Panama Canal • Jamaica’s well-developed and established cargo networks

Why Jamaica? (2) § State-of-the-art port facilities § Port of Kingston: 37 th most connected container port in the world § 16 th most centrally located container port in the world § 4 th “best-connected port of the 180 within the region § Strong telecommunications infrastructure § Large pool of English-speaking skilled and trainable labourers § Development of Jamaica as an International Business Centre

Why Jamaica? (3) • Trade Agreements – CARICOM: Caribbean Common Market – provides duty-free access to Caribbean member-states, as well as a number of other countries that have bi-lateral agreements with CARICOM – Caribbean Basin Initiative: allows for over 90% of Jamaicans exports to enter the US market duty-free either – EC-CARIFORUM Economic Partnership Agreement: Allows for duty free, quota-free access of most Jamaican products to the EU.

Major Manufacturing & Logistics Brands

Opportunities for Manufacturing • Light manufacturing identified for development and promotion – other sub-sectors being assessed • Focus on agro-processing – adding to the local value chain and building Brand Jamaica • JAMPRO is currently seeking to identify imports, which can be locally produced in large volumes Major Opportunity in Logistics – the International Multimodal Centre

What is the Jamaica’s International Multimodal Centre? § Part of Go. J’s push to further develop the country as a major manufacturing hub § Project concept incorporates several discrete logistics to offer multiple modalities in order to position Jamaica as the logistics hub of the region § Spans the southeast coast of the island

International Multimodal Centre CAYMANAS ECONOMIC ZONE VERNAMFIELD AERODROME & CARGO FACILITY JACKSON BAY DRY DOCK FACILITY COW BAY PORT DEVELOPMENT JAMAICA RAIL NETWORK PORT OF KINGSTON

Caymanas Economic Zone (CEZ) § 1500 acres of prime real estate § Situated at the confluence of the major population centres of Kingston, Spanish Town and Portmore § Intelligent self-contained city based on work-play-live concept § Modern shipping and transshipment services located within close proximity to Port § Dedicated transportation hubs and other support services

Vernamfield Aerodrome & Cargo Facility § § Located in central Jamaica, Vernamfield comprises 2, 900 acres of land This multi-modal hub will comprise: ⁻ ⁻ ⁻ Air Cargo (centralized sorting and clearance centres) Express Courier Cargo Handling Facility Fully equipped aerodrome with telecommunications centre and flexible runway capacities Air/Sea Logistics (distribution centres, commercial space for trade shows, fire and rescue station) Dry port concept (warehousing facility for off-site manufacturing and assembly plants) Aircraft maintenance facility

Jackson Bay Dry Dock Facility § Located on Jamaica’s South Coast § Proposed services to be offered by the Dry Dock: § Ship rehabilitation & refurbishing § Specialised marine § Water supply and waste management § Service and maintenance repairs § Refueling ship-to-ship § To meet increasing service needs of international shipping industry

Cow Bay Port Development § Proposed logistics and transship hub will accommodate vessels larger than Panamax size. § Water at Cow Bay is deepest in the Americas. § Facility at the conceptual stage; will require extensive development. § Proposed development will include: – 26, 000 barrel crude and product storage – Gas storage – Blending & transshipment terminal – 16 berths/docking facilities Cow Bay Port Development

Port of Kingston § § § Major transshipment point within the Western Hemisphere KCT rated in the top 100 among the world's leading ports. Current annual capacity of 2. 2 million TEUs. Planned Expansion of KCT – Additional equipment to boost activities, e. g. reefer plugs Development of Fort Augusta Container Terminal To be developed to expand capacity to meet market demand for port facilities in the region, esp. in light of an expanded Panama Canal To provide additional berthing of 1, 500 metres, and develop 173 acres of yard space and value-added logistics capabilities. Planned expansion will increase current capacity from 2. 2 to 3. 2 million TEUs

Jamaica Rail Network § Freight from Port of Kingston to multimodal hubs (i. e. Caymanas, Vernamfield, Jackson Bay and Cow Bay) § Transportation of cargo to and from other facilities within the International Multimodal Centre • Transportation of aggregates from mines to various port facilities in Jamaica

Next Steps International Multimodal Centre § Completion of feasibility studies § Continued expansion of the Port of Kingston § Commence elements of the Caymanas Economic Zone § Development of PPP structure § Seek private partners for project implementation

JAMPRO: What We Do – Investment facilitation/implementation • Provision of investment opportunities/profiles • Identification of land factory space • Assistance with Procedures, incentives and approvals • High level access to government ministries and agencies – Trade Promotion and Business Development • Market access and market penetration services • Trade Show participation • Business Matchmaking Services/Linkages events • Enterprise Development

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