Jamaica: A Regional Manufacturing and Logistics Hub

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

2. 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

3. 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 the same 2010 review period, while “Beverages and Tobacco” increased by US$2.5 million to US$6.6 million.

4. 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

5. Why Jamaica? (2) • State-of-the-art port facilities • Port of Kingston: 37th most connected container port in the world • 16th most centrally located container port in the world • 4th “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

6. 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.

7. Major Manufacturing & Logistics Brands

8. 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

9. What is the Jamaica’sInternational Multimodal Centre? • Part of GoJ’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

10. International Multimodal Centre JAMAICA RAIL NETWORK PORT OF KINGSTON

11. 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 trans-shipment services located within close proximity to Port • Dedicated transportation hubs and other support services

12. 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

13. 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

14. 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 developmentwill include: • 26,000,000 barrel crudeand product storage • Gas storage • Blending & transshipmentterminal • 16 berths/docking facilities Cow Bay Port Development

15. 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

16. 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

17. 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

18. JAMPRO: What We Do • Investment facilitation/implementation • Provision of investment opportunities/profiles • Identification of land and 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

19. THANK YOU