Jamaica Pushes Logistics Tech PPPs
Jamaica's logistics sector is celebrating 60 years of organized freight forwarding and emphasizing public-private partnerships (PPPs) for infrastructure and tech upgrades. The government is encouraging local investors to collaborate on logistics projects, potentially opening new avenues for resort operators.
Jamaica is strategically positioning itself as the fourth node in the global logistics network, aiming to mirror the success of Singapore, Dubai, and Rotterdam. The government hopes to increase the logistics sector's contribution to the GDP from 2% to 7% within the next decade. This ambition could generate over 30,000 direct jobs and 75,000 indirect roles. To achieve this, Jamaica is actively broadening collaborations with global partners and encouraging private sector investment through PPPs. A key project is the development of the Caymanas Special Economic Zone (SEZ), a 700-acre site near the Port of Kingston. The government is offering 50-year leases with tax incentives to attract investors to the SEZ. Jamaica's logistics strategy centers on the Port of Kingston, which ranks among the top 100 ports globally. Since 2016, a 30-year concession agreement with Kingston Freeport Terminal Limited (KFTL) has spurred over $400 million in investment to upgrade the terminal. These upgrades have led to a 50% increase in cargo volumes since 2017 and a 53% rise in employment. An additional $50 million investment is planned for 2025. However, Jamaica faces challenges including Hurricane Melissa which disrupted operations and communication gaps that have delayed action in some cases. Also, MSMEs need adequate commercial vehicle parking, loading dock access, and room to grow. Jamaica must also improve maritime and air connectivity as well as the logistics chain. Sandals Resorts, with over a dozen resorts in the Caribbean, relies on efficient supply chains for its all-inclusive model. Sophia McKenzie was promoted to Group Manager, Procurement Division at Sandals Resorts International in 2021 and spearheads this critical division. Her extensive portfolio includes sourcing, purchasing, shipping/logistics and database management. Sandals sources an average of 56% of its produce and 59% of its seafood locally.
