September 23, 2021

MBJ Airports Limited, operator of the Sangster International Airport in Montego Bay, expects the long-awaited runway extension project there to start this year, and the major infrastructure work should cost about US$70 million, or $10.5 billion. “The procurement phase for a contractor for the runway extension has been completed, and the preferred contractor will be announced within a few weeks,” said Sharon Hislop-Holt, manager, commercial business development and marketing at MBJ, in response to Financial Gleaner queries. The work is slated to start this year and be completed by the end of 2022, she added. The project, which is several years in the making, was estimated at US$60 million in 2016. The stated source of the funding for the extension at the time was the Airport Improvement Fund, which is financed by fees paid by passengers using the airport. The extension of the runway to about three kilometres (km) would increase safety for aircraft using the facility, while also allowing the airport to attract heavier aircraft. The project, envisaged since 2013, will require land acquisition and realignment of the roadway. The runway currently spans 2.6km and the extension would add some 280 metres of active runway length and an additional 180 metres for a runway end safety area (RESA), according to 2016 documents on the project. The RESA was scoped to span 90 metres on each end of the runway. In total, it would bring the runway length to over 3km, with nearly 2.9km of active runway. The runway extension is part of the airport master plan developed by MBJ. Other aspects include extension and modernisation of the terminal building and additional aircraft parking space. This year, the MBJ expects to spend US$12 million on its retail expansion, US$3.2 million on its three-megawatt solar projects, and US$1.4 million on improving the cooling throughout the terminal. The development and expansion of the departure lounge and retail space, commenced in February 2020 and will result in the expansion of the circulation space in the departure waiting area and retail space. Some of the new shops are already opened, Hislop-Holt stated, while others are under construction with a year-end opening date, a few others in 2022 are to be opened next year. The COVID-19 pandemic and the accompanying hallowing out of revenues at the airport is the latest event to have delayed some of the major capital expenditure and infrastructure works at the Montego Bay airport, in which Mexican airport operator Grupo Aeroportuario del Pacifico, or GAP – translated to English as the Pacific Airport Group – are majority owners. Its minority owners are Canada’s Vantage Airport Group. Data for June to August 2021 show that total international passenger movement declined by one-quarter on 2019, or pre-pandemic, record levels. For instance, for August, total international passengers, which includes all arrivals and departures, was 293,400, or 27 per cent lower than 2019 record levels. In June and July this year, the figures were 27 and 29 per cent lower than 2019 levels, respectively. Still, the 2021 numbers signal a major recovery from the COVID-19 travel shutdown of 2020. For the remainder of the year, MBJ expects the level of travel to remain at 25 to 30 per cent lower than 2019 levels. The sustained travel outlook comes despite new variants of the COVID-19 virus causing serious concern among health officials, the government, the private sector and civil society. “While we do anticipate that the new variants will impact arrivals somewhat, we will have to wait and see how significant that will be,” stated Hislop-Holt. While the pandemic has helped to put a hold on some big capital spending at the airport, its management has been keen to point out that significant infrastructure upgrades have been done during the period. “At the start of the pandemic, we chose to prioritise projects that reduce operational costs, improve operational efficiency and/or provide economic benefit,” MBJ Airport CEO Shane Munroe told the Financial Gleaner in an interview almost a year ago. He noted then that MBJ continued to pursue projects required to maintain the airport infrastructure, such as the rehabilitation of the airfield pavement, replacement of the HVAC chillers, or to achieve operational efficiency, such as the solar PV project. Sister airport Norman Manley International, run by PAC Kingston Airport Limited, PACKAL, which is wholly owned by GAP, has also been negotiating with the government to delay big capital works that are built into their airport lease contract and have become due. Despite seeking a new time line for major works there, PACKAL’s management, like MBJ’s, have insisted that they remain committed to honouring the big infrastructure upgrade commitments. Source: https://jamaica-gleaner.com/article/business/20210922/delayed-10b-sangster-airport-runway-project-set-2021-take

A surge in global demand is having a positive impact for Jamaica as a port of call and trans-shipment hub according to Professor Gordon Shirley, president and chief executive officer (CEO) of the Port Authority of Jamaica (PAJ). The PAJ is working towards reducing logistical challenges which have developed with the novel coronavirus pandemic, with the agency head expressing the conviction that the future augurs well for Jamaica as the country continues its push to become a greater regional trade and transhipment hub. During 2020, Kingston ports saw the highest number of vessel calls as well as container volumes in the month of May. Previously such numbers were only seen in 2016. Professor Shgirley told the Jamaica Observer, “In the global context the COVID-19 pandemic, which started in October 2019 and detected in Jamaica in March 2020, has had a positive impact on supply chains as a result of a boom in global trade due to pent up demand.” This positive impact of the increase in global demand also augured well for Jamaica. The PAJ, meanwhile, has played a strong role in untangling the logistical challenges of the period. The increase in international trade had some adverse effects as it resulted in container shortages and congestion at some of the major international ports. The PAJ head stated, “The response to the COVID-19 pandemic by Jamaica’s port and shipping sector has in general been swift, immediately responsive, and efficiently coordinated among the relevant stakeholders. Systems were implemented to seamlessly facilitate an increase in ship traffic as a result of the increase in regional and global demand.” Additionally, he stated, the Port Authority of Jamaica (PAJ) has been working strategically and collaboratively within the port community to digitally integrate and automate the processes within the trading sector. In this regard, he noted, “ the use of the Port Community System (PCS) to manage trans-shipment activities has been a tremendous advantage for Jamaica. It allows shipping agents/lines to create, submit and electronically pay for all trans-shipment related activities online.” Under the COVID-19 paradigm, the system allows stakeholders to operate remotely, maintain their productivity while reducing the number of bodies required to physically visit the ports. The overall effect of the PCS, Gordon Shirley said, is to reduce the time required for importing, exporting, and trans-shipping cargo through our terminals, thereby enhancing Jamaica’s competitiveness as a trading centre. Trading activity and volumes have risen since COVID instead of falling. Prior to COVID-19, TEU’s stood at 1,441,976 in 2019. A twenty-foot equivalent unit (TEU) is a shipping container whose internal dimensions measure about 20 feet long, eight feet wide, and eight feet tall. It can hold between nine and 11 pallets. This TEU figure pre-COVID rose to 1,453,738 TEU’s in 2020, an increase of 11,762. So, Professor Shirley outlined, “During the period Jan-Dec 2020, the total container volumes handled at the Kingston Container Terminal (KCT) operated by the Concessionaire, Kingston Freeport Terminal Limited (KFTL) increased by one per cent when compared to the previous year. Moreover, for Jan-Aug 2021 the volume of containers handled at KCT has increased by 26 per cent above the comparative period for 2020. Meanwhile, vessel calls to the terminal also saw an increase in 2020 over 2019 with figures of 1,148 and 1,451, respectively.   Container peak The PAJ president said, “It is noteworthy that in May 2021, container volumes as well as vessel calls peaked during which KCT handled more than 100,000 container moves and 139 vessel calls. This is a significant achievement for the terminal under KFTL’s management as it is the highest number of vessel calls as well as container volumes since July 2016.” He said that the respective terminal operators at the island’s ports were able to sustain safe operations by retention and rotation of essential workers, increased sanitisation of workspaces and physical distancing. Shirley noted that the use of technology through automated processes also positively impacted the continuation of vital operations. Nevertheless, he admitted, effectively mitigating against the spread of COVID-19 has adversely affected the productivity at the terminal. In adherence to new safety measures and protocols, the consistent need for frequent breaks for sanitisation of staff and equipment resulted in delays in operations.   Nearshore recovery The PAJ head said data analysis revealed an uptick in trans-shipment volumes in 2021 relative to 2020 when the pandemic began to affect Jamaica. “We attribute the increased volumes to the reopening of economies within our region as well as the associated consumer demands,” he asserted. “Compared to pre-COVID-19 levels in 2019, the statistics and data are very similar to the current level of activities. ” The PAJ head said that the 26 per cent increase in the container volumes for YTD 2021 suggests that the volumes passing through the Panama Canal has increased and that KFTL (Jamaica) has benefitted from the increase in volumes. Source: https://www.jamaicaobserver.com/business-observer/jamaican-ports-see-teu-numbers-rise_231178

Jamaica is reaping dividends from the investments that have been made in the development of the Kingston Container Terminal (KCT). These investments, in dredging and other expansion activities, have enhanced the terminal’s productivity and competitiveness and have attracted new transhipment volumes to Kingston, said President and Chief Executive Officer of the Port Authority of Jamaica (PAJ), Professor Gordon Shirley. “Not only have transhipment volumes been increasing but with a newly dredged channel, larger vessels are now being deployed to Kingston in growing numbers by the shipping lines,” he informed. He noted that the growth has been accelerated throughout the period of the coronavirus (COVID-19) pandemic. “Visits are now routinely received from vessels carrying 10 to 15 [thousand], 20-foot equivalent units (TEU) compared to vessels carrying 3.5 thousand TEUs prior to 2016,” he added. President Shirley was speaking at the recent commissioning and christening of the Port Authority of Jamaica’s Jamaica III utility vessel at Newport East. Kingston Freeport Terminal Limited (KFTL) assumed responsibility for the management and operation of the KCT on July 1, 2016, with the task to invest, maintain, operate, and grow cargo volumes, and position Kingston as a major transhipment port for the Caribbean and Central America. The Port Authority has partnered with the KFTL in building out the infrastructure and providing the training needed to meet the growing demands of the maritime sector. Prime Minister, the Most Hon. Andrew Holness (second right), looks on as Captain Hugh Helps (second left), points out the control panel system of the Jamaica III utility vessel, during a tour of the boat on August 11. This was after the official commissioning and christening of Port Authority of Jamaica vessel, at Newport East, Kingston. Others (from left) are President and Chief Executive Officer of the Port Authority of Jamaica, Professor Gordon Shirley; and Member of Parliament for East Rural St. Andrew and wife of the Prime Minister, the Most Hon. Juliet Holness. (Yhomo Hutchinson Photo) Professor Shirley noted that with the larger vessels entering the Kington Harbour requiring bigger tugboats to assist in the berthing and unberthing process, international tender for the provision of tugboat services for Kingston was issued in 2017. He said that the competition among the global tug service companies reflected the growing confidence in the Port of Kingston. Arising from that tender, the PAJ entered into a concession agreement with Ocean Limited, a Canadian tugboat operator, for the provision of tugboat services. The concessionaire has since deployed two new larger boats to service the Kingston Harbour. He noted that discussions are under way for the deployment of a third tug given the increase in volume of vessels entering the harbour. Professor Shirley said that new acquisitions and upgrades are constantly being made as the sector grows and develops. “Kingston has visibly become a busier maritime centre and the trend is growing. To maintain the safe passage of vessels in Kingston and in our other harbours, it is important that our navigational aids, our buoys, beacons, stop marks, and lighthouses are upgraded to incorporate the latest technologies and that they be efficiently maintained. Safety of all the vessels traversing in and out of our harbours is dependent on it,” he said. He informed that industry-wide training is also being facilitated to equip Jamaicans with the skills and technology to meet industry demands. “Our marine pilots have upgraded their skills and now are experts at the task of managing the berthing and de-berthing of these mammoth ships. To ensure the safety of the pilots and the pilot boat crew, new pilot boats were acquired, which are equipped with the latest technologies and the new vessels are substantially more efficient and capable than the much older vessels that they replace,” he noted. Meanwhile, Prime Minister, the Most Hon. Andrew Holness, said the prudent management of the country’s financial resources has been key in facilitating the necessary investments in the maritime and logistics sector. “Ten years ago… this country made the decision – not a partisan decision – everybody agreed with this, that we are going to ensure that all our economic decisions are on the basis of fiscal discipline, and now we are reaping the dividends from that national decision around good fiscal management of our public affairs, that we are now able to make capital investments like these,” he noted. The Port Authority’s state-of-the-art utility vessel, which replaces the 42-year-old Jamaica II, will be used primarily in the maintenance of navigational buoys and beacons in the island’s ports. Additionally, it will be utilised to carry out upkeep on the two offshore lighthouses – Morant Cays and Pedro Cays – which mark the territorial limits of Jamaica’s sea space and assist with maintenance of other offshore assets. The Port of Kingston is located on the world’s seventh largest natural harbour. The port is strategically located on the north/south-east/west axis through the Caribbean, approximately 32 miles from the trade routes passing through the Panama Canal. Source: https://jis.gov.jm/features/investments-bringing-increased-business-to-kingston-container-terminal/