KINGSTON Wharves Limited (KWL) plans to start construction of its logistics facility next Wednesday with a view to completing the trans-shipment hub by the first quarter of 2016.

The expansion will also allow KWL to modify shipped items — ranging from small appliances to motor vehicles — repackage and ship to regional destinations, creating more value-added services to the operations of the cargo handler.

“This is where customers will be able to purchase goods online and can decide how they want each item to be customised, which will then be shipped to their destination,” marketing and clients service manager at KWL, Simone Murdock told the Business Observer.

Construction of the logistics facility forms part of a US$70-million ($7.9-billion) development plan by the KWL to double its throughput to one million containers, or 20-foot equivalent units (TEUs), while preparing the cargo handler for Caribbean or Chinese competition.

“The idea is that our existing facility is not comprehensively equipped to deliver final packaging service to customers,” Murdock said. “Companies like Wal-Mart and Dell conduct final packaging in what they call near markets, and Jamaica is close to the US market, so that area would be one of our target markets.”

Phase one of KWL development entails building a modern 24-hour logistics complex with modular warehouse space, the acquisition of gantry cranes, the closure of Third Street, the relocation of Berth 7 warehouse to a newly refurbished facility, the relocation of trans-shipment and domestic car parks, and the demolition of on-dock warehouse and operational buildings.

The second phase includes the handling of larger post-Panamax vessels, including extending the berth by 50 feet, dredging along the berth to over 15 metres, along with the installation of new cranes and, finally, the expansion of the port and motor vehicle transshipment operations to drive TEU throughput.

“Kingston Wharves is positioning itself to be a first mover amongst other logistics players and we will be ready for any opportunity that comes from the creation of the logistics hub and the expansion of the Panama Canal,” said Murdock.

KWL was recently awarded a Free Zone Trade status which should see the company benefiting from an exemption from income tax on profits in perpetuity, as well as import duties and licensing. The cargo handler must, however, adopt the Special Economic Zone (SEZ) legislations as soon as they become effective.

“The ability to do this kind of business operation and then transship it to other parts of the world is very conducive to our location in addition to being able to operate under a free zone status,” said Murdock.