Expansion coming for port of Kingston
PRIME Minister Andrew Holness has signalled that the Government is actively looking at new lands to expand the port in Kingston.
Holness was speaking in his capacity as minister of economic growth and job creation.
He said, “We are discussing possibilities of expansion. The Government is looking at ways we can expand shipping and logistics operations in our economy in the same way that we have been instrumental in the expansion and institutionalisation of the BPO industry in Jamaica.”
Holness stressed that ideally the expanded facility will become another public-private partnership initiative where both foreign investors and the people of Jamaica benefit.
“The Government through the PAJ is looking at other lands in this area that could become available to support the expansion of the port and the expansion of the logistics operations which are associated.”
The prime minister did not disclose what lands were currently being looked at or the size of the expansion under consideration.
However, he stated, “You will hear more about those plans when I make my budget presentation in a few months’ time next year. Some of them are in the early stages but some of them are quite mature plans.”
The announcement of the expansion follows a call from the chief executive officer (CEO) of Kingston Freeport Terminal Limited (KFTL) Jedrzej Mierzewski who told the Jamaica Observer that he needs more space.
Mierzewski admitted that while KFTL is operating at optimal efficiency, the conditions created by the novel coronavirus pandemic is causing a backlog at the port which could be solved if more space was available to store containers.
Currently the port of Kingston is about 10 miles long and is regarded as the seventh-largest natural harbour in the world.
The prime minister announced the expansion plans while giving the keynote address at the official ribbon cutting of KFTL’s 19 new straddle carriers which represents an investment of US$20 million.
Holness emphasised that private sector investment like the one made by KFTL allows the Government to redirect spending which would have otherwise been used to develop the port of Kingston to other areas of need.
To that end, he stressed that the Port Authority of Jamaica (PAJ) now has more room to invest and develop other ports around the island.
He said, “CMA-CGM has deep pockets as well to be able to make these kinds of investments so that the port authority does not have to take these funds that are being spent on this. It [PAJ] could then take these funds and use them on something else such as the development of new ports, such as making investments in a port in Port Royal, such as looking at development of Portland, that is the role of the port authority, to go into those new development areas and de-risk them and leave these areas where there is enough knowledge and expertise in the commercial space to manage them.”
“We need to understand that the role of the Government is not to be operator of everything the role of government is to empower private initiative,” he continued.
In the meantime, Professor Gordon Shirley, president and CEO, Port Authority of Jamaica, gave on update on the agencies spending in recent times.
“We’ve had $178 million spent on the infrastructure, meaning the dredging, the pavement, the workshop extension all of that has been spent. Fifty-four million dollars has been spent on equipment, aside from the 19 straddle carriers that you see here there’s another 10 so, 29 straddle carriers have been acquired along with two gantry cranes, 19 terminal tractors, six empty container handlers, six road heads and 14 forklifts. Another $16 million has been spent on new information systems primarily a new terminal operating system one of the most modern in the world as well as security systems,” Shirley informed.