Jamaica sails towards logistics hub status
Jamaica is making strides to establish itself as a logistics hub for the Caribbean, leveraging global shipping disruptions and targeted infrastructure upgrades.
The country’s potential as a regional logistics leader was a central theme at Shipping Association of Jamaica’s 85th Anniversary Distinguished Lecture on Friday, when key stakeholders gathered to discuss recent advancements. A cornerstone of this logistics vision is the Caymanas Special Economic Zone (CSEZ), a project aimed at attracting international developers and catering to their operational needs.
“The vision is for the CSEZ to be developed as a prime location for business and logistics in the Caribbean and beyond,” said CEO of the Port Authority of Jamaica, Professor Gordon Shirley during a panel discussion on Jamaica’s logistics future.
The Government has tasked Port Authority of Jamaica (PAJ) with developing the CSEZ, a 600-acre project north of Mandela Highway in St Catherine. According to PAJ, the CSEZ will focus on value-added production, sustainability, and security. Engineering plans — including water supply, sewage, and road layout — are already complete, and utilities such as power and water are confirmed for the zone. PAJ Chairman Gordon Shirley provided further updates on the CSEZ’s phased implementation plan, with the first involving elevating the land by 2.5 metres to enhance resilience to climate shocks.
Kingston Freeport Terminal Limited (KFTL) recently invested US$50 million in new equipment, including ship-to-shore cranes and hybrid straddle carriers.
“We will be able to withstand any hurricane or major weather condition by virtue of the work that will be done. That work will commence very early in 2025, and the next phase will take 18 to 24 months,” he revealed.
The total implementation time, spanning three overlapping phases, is estimated at 52 months. The proposed Caymanas Special Economic Zone, for example, is a project within the Government of Jamaica’s Global Logistics Initiative through which the lands are likely to be vested under the control of JSEZA as a registered proprietor or head lessee.
In a recent Jamaica Observer article, Rodrigo Olea, chief operating officer of Kingston Wharves Limited (KWL), explained that with rising geopolitical tensions and re-routed shipping paths, Jamaica’s position is ideal for becoming a trans-shipment hub. These global shifts have added 24 per cent more ships than usual to alternative routes, bypassing the Suez Canal which typically handles 18 per cent of the global fleet.
“If those 3.3 million twenty foot equivalent [TEUs] come to Jamaica and be operated by KFTL [Kingston Freeport Terminal Limited] and Kingston Wharves, it would take about 20 hours to occupy the entire capacity of Kingston’s ports so this is big, big numbers,” Olea emphasised.
Terminal operations at Kingston Wharves Limited in Kingston, Jamaica. The company has committed US$100 million toward a new logistics facility in western Jamaica, and port upgrades in Kingston.
With the anticipated influx of ships, questions arise about whether Jamaica’s ports can handle the increased capacity while maintaining efficient, world-class service. In response, the country’s major port operators are investing in substantial upgrades to boost operational efficiency and environmental sustainability. Kingston Freeport Terminal Limited (KFTL) recently invested US$50 million in new equipment, including ship-to-shore cranes and hybrid straddle carriers, while KWL has committed US$100 million toward a new logistics facility in western Jamaica, and port upgrades in Kingston.
“We are delighted to see the investments that continue to be made in upgrading the terminals,” said Shirley. “We have very high expectations for what will emerge from KWL.”
A critical factor in PAJ’s long-term vision for Jamaica’s logistics infrastructure is its recent 30-year concession with CMS EGM KFTL for managing the Kingston Container Terminal, one of the world’s fastest-growing terminals. In recent years the terminal has consistently seen double-digit growth, and Shirley noted that KFTL is actively expanding its capacity to meet increasing demands.
Additionally, PAJ has constructed a modern, 200,000-square-foot warehouse adjacent to the terminal, which has drawn significant interest from clients. The Government has also mandated PAJ to collaborate with the Airports Authority of Jamaica and National Works Agency to repurpose lands at Tinson Pen Aerodrome for logistics operations linked to Jamaica’s two major ports.
“While we are still a considerable way away from meeting all the requirements that were laid out in 2017, I would say that the work underway in Kingston is significant,” Shirley said optimistically.
Jamaica’s strategic geographic location, with close proximity to major trade lanes, makes it highly attractive as a regional logistics hub. The island also benefits from a large number of vessels serving its ports, growing air and sea traffic, robust telecommunications infrastructure, and a reliable road network. Recent developments include the implementation of an advanced port community system and progress in both sea and air cargo handling. Additionally, Jamaica has expanded its capabilities for bunkering greener fuels, enhancing its appeal to global shipping companies.