Logistics Hub

Jamaica’s cruise-shipping industry began a gradual return to normalcy with the arrival of the first cruise ship in over 16 months on Monday. The Carnival Sunshine, owned and operated by Carnival Cruise Line, pulled into the Ocho Rios Cruise Terminal in St Ann yesterday to much fanfare. The vessel’s early morning arrival signalled the resumption of cruise operations, which were halted with the onset of the coronavirus pandemic as part of the Government’s containment measures. Tourism Minister Edmund Bartlett, in a media release last week, said the ship’s arrival was aided by the implementation of international health and safety guidelines to protect Jamaicans and passengers. A team from the Ministry of Health and Wellness was also on hand to assist passengers sanitise their hands and conduct temperature checks upon arrival. Representatives of Lannaman and Morris, the shipping agent responsible for over 70 per cent of cruise lines that visit Jamaica, including Carnival Cruise, were present to welcome the ship and its 1,758 passengers, 93.6 per cent of whom are vaccinated against the virus. The agent’s operations manager, Martine Bramwell, said: “A lot of work was put in by the players of the industry. It eventually came down to Lannaman and Morris’s communication with the Ministry of Health and Wellness to receive the final clearance for passengers to disembark. We are confident that the ministry has been thorough, and they received full cooperation from the cruise line and that Jamaica’s interests, not only on the economic front, but from a health perspective, have been protected. “Today is a stepping stone for cruise ships to return to Jamaica. We are coming up on the cruise season, which starts in November, and the experience from today will be shared with other cruise lines so that they are aware of the requirements and are prepared to comply,” Bramwell continued. Carnival Sunrise, which arrived from Miami, Florida, will travel to Bimini in The Bahamas before concluding its voyage in the United States. An estimated 25 calls from Carnival Cruise Line, Royal Caribbean International, and MSC Cruises will be made to the island’s ports between Monday’s resumption and October 26. Source: https://jamaica-gleaner.com/article/shipping/20210817/sunshine-returns-jas-cruise-industry

The rise of food delivery service has become a major trend in Jamaica over the past year due to the novel coronavirus pandemic, and positioned to take advantage of the increasing demand for effective and time-sensitive delivery is the new Jamaican tech start-up, Driva Ja. The online food delivery service boasts that it is Jamaica’s answer to Uber Eats and has plans to revolutionise the door-to-door food delivery sector. The company, via its Android and iOS compatible mobile app and website, aims to streamline the food ordering process between restaurants and consumers by the click of a button. Chief Executive Officer (CEO) of parent company Courier Driver Limited, Rajiv Maragh, explained that Driva Ja will be launched in Montego Bay, St. James, in August and will allow customers to order food or products from their favorite merchants for delivery directly to their doorsteps. Mr. Maragh, a Jamaican born international jockey, said that the app will allow consumers to track any food or product that they ordered in real time, anywhere, in the country. This can be done with a credit, Visa debit or Mastercard as well as by topping up your Driva Ja account through a local affiliate. “There are a lot of people going into the space because they see the demand, so there is definitely a necessity. We are taking what they currently have, and we are expanding on it. We are using a more advanced technology that is going to make the process of ordering food and the product very fast and more convenient than it is right now,” Mr. Maragh said. “It works good for everybody. The consumers who are logging on, it is going to make their lives easier. They are going to be able to access whatever they want from the merchants. The restaurants and so forth that are in the area, they are going to get their business going better [and] provide job for lots of people such as the drivers and the workers in the restaurants,” he added. Mr. Maragh explained that deliveries will be subcontracted to bearers who sign up to be workers and earn on a commission basis. He said these subcontracted workers will undergo training in customer service and other areas to meet customer satisfaction. “We are creating a free market for drivers to go on [the app or website] and work their own hours, be their own boss. They will earn per delivery that they make [and] be able to work as much money as they want,” Mr. Maragh noted. He outlined that the platform will branch out from Montego Bay to the rest of the country, over time. In addition, Jamaica will be the launching pad to take Driva Ja across the Caribbean as the aim is to revolutionise the food delivery sector. “This is completely home-grown. Its four Jamaican founders and our first two employees are currently students at UWI and UTech. It is an all-Jamaican product which is something I am very proud of,” said Mr. Maragh. “I always thought about how I can contribute to the place I grow up and really put me on the map. This is a perfect opportunity to provide something that is really a necessity in Jamaica right now due to the COVID-19 pandemic,” he added. Source: https://jis.gov.jm/driva-ja-aims-to-change-the-food-delivery-market/

Jamaica Producers Group (JP) says it is implementing a range of initiatives to improve digital processes at its logistics facilities. The improved digital process will also better support commercial customers with improved inventory management and supply chain control and the timely arrival of cargo. “During peak periods, the improved digital processes will enhance the overall customer experience and support social distancing during shipping, clearing and collecting personal effects and commercial cargo at our logistics facilities in the UK and the Caribbean,” management noted in its report for the first quarter ended April 3, 2021. For the quarter ended April 3, 2021, Jamaica Producers posted a net profit attributable to shareholders of $256 million, an increase of 17 per cent over the comparable period in 2020. First-quarter revenues were also up six per cent over the 2020 First quarter. JP Logistics and Infrastructure Division accounted for the major share of the group’s net assets and, in turn, its profits. In addition to Kingston Wharves Limited, the division’s largest subsidiary (which operates a multipurpose port and warehousing and logistics hub), the results of the L&I Division for the first quarter include JP Shipping Services Limited (which provides logistics and shipping services between the Caribbean and the United Kingdom). Divisional year-to-date revenues of $2.1 billion were up three per cent over the prior year, primarily as a result of increased regional transhipment activity at our port terminal, and overall growth in our logistics operations in the UK and the Caribbean. The company’s Food and Drink division is the largest contributor to the revenues of the group. JP Group is a market leader in fresh juice in northern Europe and serves as a co-packer of juice for major supermarket and food-service entities in the Netherlands, Belgium, Scandinavia and Switzerland. The division’s year-to-date revenues of $3.3 billion are up nine per cent relative to the prior year. Management noted that during the quarter, the the division continued to experience significant challenges to food sales in travel retail, food service and convenience channels. This was, however, offset by increased sales of consumer staples to supermarkets as well as specialty foods through e-commerce and gifting segments serving the United States. Management said margins were adversely affected by the change in the sales mix as well as extraordinary measures taken to maintain service levels across all aspects of the company’s international fresh fruit and vegetable supply chain and food processing facilities. These challenges were compounded by significant price increases in key raw material items. The F&D Division, nonetheless, generated year-to-date profit before finance cost and taxation of $87 million compared to $113 million, a 23 per cent reduction over the comparable period of 2020. JP’s consolidated equity now stands at $31.5 billion of which cash, short term investments and securities purchased under resale agreements now amount to $9.4 billion. Total equity attributable to JP shareholders now amounts to $16.3 billion, an increase of 16 per cent over the preceding 12-month period. Source: https://jamaica.loopnews.com/content/jp-improve-digital-processes-its-logistics-facilities

Business process outsourcing firm Ibex has invested US$50 million in Jamaica since opening its first site in 2016, the customer engagement company revealed at the recent opening of its new campus in Portmore, St Catherine. Ibex’s new Portmore facility, a standalone development near Braeton, will create 1,300 digitally-enabled jobs, bringing the company’s total employment on the island to more than 6,500 people, the company stated in a press release. “The tremendous growth being fueled by increased client demand, technology innovation and new wins with blue-chip and new economy customers have helped us create more than 1,500 jobs in Jamaica this year alone and placed the island at the centre of the BPO 2.0 revolution,” said Jaime Vergara, senior vice president and Jamaica country manager, ibex. “Not only has our growth accelerated economic development across Jamaica, but we are further positioning the country as a global shared services hub that is digitally transforming our clients’ customer experiences,” Vergara added. With the opening of the Portmore campus, Ibex now has a total of more than 5,000 seats in Jamaica across its five facilities in Ocho Rios, Portmore, and Kingston. Ibex said it will leverage its Wave X technology suite to ramp up agent proficiency and accelerate its speed-to-green delivery operations. This includes deploying Ibex training simulator, a virtual solution designed to accelerate agent learning and enhance customer engagement across digital and traditional communication channels. Headquartered in Washington, Ibex has in total nine office locations across eight countries. In Jamaica, its other locations are Lots 8 &9 Portmore Pines Plaza, Greater Portmore; Courtleigh Corporate Centre 6-8 5, St Lucia Ave in New Kingston and 14 Ocean Boulevard in downtown Kingston. It also operates in Ocho Rios, St Ann. Source: https://jamaica.loopnews.com/content/ibex-leverages-jamaica-accelerate-tech-driven-job-growth

As a result of the prevailing novel coronavirus pandemic environment, multipurpose terminal and logistics company Kingston Wharves Limited (KWL) said it is getting infrastructure ready to expand into nearshoring opportunities at the full reopening of the global economy. Through the outsourcing of business processes, nearshoring offers companies the opportunity to transfer its business to nearby countries over those at a distant, a venture which KWL is intent on capitalising due to its geographic positioning. The company, which has already spent US$35 million to develop infrastructure over the last five years, is further seeking to spend an additional US$55 million between 2021 and 2025. Among the investments to be made is the development of a 12-acre property that will help the company to tap into its nearshoring objective on which it will spend US$20 million to offer logistics service to global players. “What we plan to do on the 12-acre property is to construct over 3,000 square feet of warehouse and cold storage space. We’ve done all the plans and have been having conversations with big players and expect to break ground this year,” said chief executive officer of KWL Mark Williams at last week’s Mayberry Investors Forum. The balance of the capital infrastructural development projects, the company said, will be used to reconstruct a berthing facility (Berth 7) estimated at a cost of US$39 million while the remaining US$5.2 million will be expended to acquire a super Panamax crane. This new equipment will not only help the company to service larger vessels but to also better compete with other well-equipped global ports. “We’ve already made a deposit and we expect delivery in the fourth quarter (Q4),” the CEO stated. Following its achievement of special economic zone (SEZ) status since June last year, Williams said the designation has helped to further place KWL at the forefront of global logistics. He said that the slew of infrastructural developments being undertaken was also to ensure that its facilities meet global standards coupled with quality service delivery. He further said that with technology being used as a critical component in driving logistics and cutting operational cost, the launch of the company’s click and collect platform has been excellent in delivering efficient and contactless service for customers while clearing their personal effects. Williams, in addressing questions about the dominance of e-commerce, said that the emergence of these platforms will complement rather than hurt its business model since the sea remains the largest avenue for cargo movement — accounting for about 80 per cent of all movement. The multipurpose terminal operating from a strong balance sheet said that the intention was to further grow profits whilst also being on the lookout for acquisition opportunities in the local and regional markets. The company is also seeking to diversify cargoes, which Williams hinted could include ones in energy. Comprising some nine deep-water berths, KWL, through its terminals, serves over 1,000 vessels annually, moving bulk and containerised cargoes to over 30 destinations in the region and further afield. For the three-month period ended in March and despite a marginal drop in revenues, the company earned $1.8 billion accompanied by net profits of $560.2 million and total assets of $39 billion, a performance which the CEO labelled as being consistent despite the pandemic. Source: https://www.jamaicaobserver.com/business-observer/kwl-to-develop-facility-to-tap-nearshoring-opportunities-company-to-make-capital-investments-of-us-55-million-over-next-five-years_227869?profile=1056

FosRich has launched its corporate university which is mandated to train and develop team members by providing enhanced, in-depth and focused training at all levels. According to FosRich’s Managing Director Cecil Foster, “the aim is to take the team to a corporate level of operation with this ongoing training. The courses will utilise MBA-type case studies and role plays and will cover a broad spectrum of disciplines, facilitating the development of critical thinking and other skills necessary for the advancement of the organisation.” The university, which started six weeks ago, mirrors the training model used by Netherland lighting company Phillips and fast food chain McDonald’s in their respective university programmes. Like those institutions, Foster says the FosRich university will offer continuous study for all employees throughout their tenure within the organisation. The FosRich university will consist of three colleges. Each college will have a different focus. One on the systems and procedures of the company as well as the competitive development of the retail and manufacturing business with technologically driven tailor-made programmes. Together these colleges will train and develop staff to function at maximum in their various fields while creating an environment for upward mobility. The university is housed in FosRich’s locations and is presently online. At the moment, only FosRich staff can attend. Foster said FosRich pays the full cost for the training. He also noted that corporate university team members are senior lecturers from universities across the Caribbean. The university will have control over the content delivery, thus giving the university the choice and methods of delivery that will meet the needs of the organisation. It will also identify staff needs that will aid in the selection of the tools that are suitable for targeted learners. Foster stressed that the learning institution will provide an avenue for staff to improve themselves and their contribution to the profession. “The university will provide learners with the opportunity to progress to senior management and leadership. The expectation is that employees will be encouraged to see the need to also invest in themselves. We will evaluate their willingness to ‘buy in’ to the big picture thereby engaging all employed in the test of ‘Who are you in FosRich?’, ‘Where are you going?’ ‘How do you plan to get there?’” he noted that students will be tested to determine competency, capabilities and personal achievements. The curriculum development will include a major focus on ways to extract the raw talent and potential from each employee that will help in the upward mobility and best fit position. Foster noted that the university will be sensitive to the dynamism in the industry in which it operates and also the impact of the local and global economies on daily lives. He said FosRich will endeavour to create a platform that will keep the university abreast of new technologies and to be an agent for change. This will impact management styles, leadership succession, performance management, Talent management and time management. “The result of this form of sensitivity will be seen in the culture to readily accommodate change, and recognise FosRich University as the hub for not only the education and development of employees, but will link the importance of the value chain that includes suppliers, distributors and most importantly customers,” Foster said.

Lakes Pen Agri-Ventures expects to start reaping vegetables by November, as the multibillion-dollar enterprise that businessman Gassan Azan and his partners are building continues to take shape. Around half of the crops is to be supplied to MegaMart, a grocery chain owned by Azan, while some will be targeted at hospitality companies and, eventually, overseas markets. Agri-Ventures has already established a number of fruit orchards in the year since Azan announced the venture, and set up nurseries and mesh houses for growing the vegetables. The farm, which began operations in 2019, is expected to become one of Jamaica’s largest agricultural operations, covering 100 acres initially and later expanding to 400 acres on lands at Lakes Pen, St Catherine. Azan says he has secured lease arrangements with the Government for the other 300 acres. The farm’s growing techniques are being refined with the help of foreign experts. Three consultants from Spain are currently working alongside 80 locals to set up four greenhouses measuring 1.25 acres individually, which will grow sweet peppers, cantaloupes, tomatoes and hermetic herbs such as thyme, basil and cilantro; as well as two mesh houses, each covering 2.5 acres, that will produce cabbage, broccoli, cauliflower, zucchini, onion, pak choi and kale in cycles. A hydroponic house for the growing of lettuce and the packaging house take up another 1.5 acres. Azan told the Financial Gleaner that the company has already set up several orchards; that the first 100 acres of the farm, which were acquired for $200 million, are already fully earmarked for fruit and vegetable crops; and that US$5 million ($770 million) has been pumped into the farm so far. “We have started ackee, mango, avocado, lime, coconut, lemon and papaya orchards, to name a few. The orchard and the vegetable houses will bring us to 100 acres. Right now, the focus is on getting a consistent supply of produce in the MegaMart stores, and by early next year we expect to have enough capacity for export,” he said. Yields from the farm that Azan is looking to as a reliable source of produce for his grocery operation, are expected to reach 17,000 tonnes annually. “The selection of produce is really based on MegaMart’s demand and what we believe are most sought in the hospitality and restaurant industry. Things like tomato, sweet pepper aren’t really seasonal [demand-wise]; they are required all year,” said Manager and CFO of Lakes Pen Agri-Ventures Limited Sudu Ramani. “There is a lot of price fluctuation for agricultural produce, so the idea is to bring some level of stability to market from year-long production,” he told the Financial Gleaner. As for the export of crops, Azan will first supply his supermarket business in the region, the Van den Tweel supermarket group, which operates in the ABC islands of Aruba, Bonaire, and Curaçao in the Netherlands Antilles, and is held through investment group Alfabet Holdings. Afterwards, Agri-Ventures will look to enter the United States market. But first, the company is looking to secure supply deals with the local hotel and restaurants. An additional five to 10 jobs will be added to the company’s current administrative staff of 25 people to execute the supply arrangements. Lakes Pen Agri-Ventures itself grows about 15 different crops, but MegaMart demands roughly 50 kinds of produce, Ramani said. As the buildout of Agri-Ventures progresses, the company expects to add to its product line-up via the mother-farm concept, under which a large farm forms alliances or contracts with smaller growers as suppliers to augment its operation. It’s also relying on its own farming techniques to boost yields. “The Dominican Republic is a powerhouse in this region on greenhouses, and they would either have temperature control, humidity control or light control. At this farm, we have all of them, and it would make it the most sophisticated farm in the Caribbean. Everything is computer-controlled, from the irrigation system to the thermal control screen,” Ramini said. Lakes Pen Agri-Ventures is designed for the inclusion of a logistics and distribution centre, warehousing and a farmer’s market, all of which are expected to be built out next year when phase two of the project begins. The total $11-billion project is being built out in phases and is part-funded, Azan said, by a group of equity investors, whose identities have still not been disclosed, as well as by bank loans. Source: https://jamaica-gleaner.com/article/business/20210808/megamart-supply-saviour-agri-ventures-start-harvest-november

HAVN Life Sciences Inc, a biotechnology company based in Vancouver, Canada, has announced a new agreement with PA Benjamin Manufacturing Company (PAB) in Kingston for the packaging of extracted compounds from Hypha Wellness Jamaica Psilocybin, a Jamaican food and psychoactive mushroom producer. HAVN Life Sciences is involved in the development of natural health products and mental health treatment to support brain health. A release issued by both companies said that PAB operates a Good Manufacturing Practice (GMP)-compliant facility and will be contract packing HAVN Life naturally derived psilocybin, following the necessary protocols, to allow for export from Jamaica and import into Canada, the US and Europe. Good Manufacturing Practice (GMP) is a system for ensuring that pharmaceutical products are consistently produced and controlled according to quality standards. HAVN Life said the agreement positioned it to be an early mover as markets begin to open up around the globe, and will allow it to seek active pharmaceutical ingredients (API) designations as well as secure further supply agreements with companies seeking quality and naturally derived psilocybin. The companies’ release quoted Minister of Agriculture and Fisheries Floyd Green stating “As a new industry it is critical that there is stakeholder partnership, and as such the partnership between Jamaican GMP manufacturer PA Benjamin, Hypha Wellness, and HAVN Life Sciences is a step in the right direction.“ “The sustainability of the industry will depend largely on our ability to effectively research psilocybin mushrooms and to combine agriculture with manufacturing”, he said. “This partnership with PAB is absolutely key for our ability to supply safe, quality controlled psilocybin APIs to researchers and patients around the globe,” said HAVN Life CEO Tim Moore. “We’re excited and committed to work with HAVN Life Science and Hypha Wellness to export psilocybin, and build our research and development partnerships,” Christopher Powell, director at PA Benjamin Manufacturing Company, was quoted as saying. “Working with Jamaican stakeholders and the GMP manufacturer PA Benjamin, we’re focused on developing a framework for manufacturing and exports,” Benjamin Graeme, founder, director at Hypha Wellness, was quoted as saying. “It’s an exciting time as Jamaica has a unique value position in the international market, and the means to supply it,” Graeme said. The agreement and packaging of psilocybin through PAB’s facility will be in compliance with Health Canada and local guidelines. The release said PA Benjamin has embarked on a very aggressive development programme for new products to complement several of the already established products, and also to venture into new product areas in synergy with the company’s capabilities. The new product development efforts are ongoing, with emphasis being placed on the expansion of the pharmaceutical range of products. Source: https://www.jamaicaobserver.com/business-report/pa-benjamin-manufacturing-signs-new-packaging-agreement-with-canadian-firm_227452?profile=1056

“I’VE brought opportunities to Jamaica just because I love our country, and I feel that when people like you and they trust you, you can really move the needle in business a lot faster.” The words of Bindley Sangster, Jamaican coffee farmer, ex-military and entrepreneur. Sangster, the grandson of former prime minister, Sir Donald Sangster has taken on the responsibility of luring foreign investors to Jamaica’s shores. But he explains that his journey as an entrepreneur started with an uphill climb, especially after he realised that the coffee farm he grew up on and was hoping to revitalise had been completely destroyed due to years of neglect. “So much of the topography of the farm had changed over the years, because it had been almost 30 years since we worked the farm. In my head I thought that we still had coffee, that we were just going to cut back and make it come back. There was nothing,” bemoaned Sangster. That was December 2015, but it wasn’t enough to deter the entrepreneur from pursuing his dreams. “I took a loan out of my 401(k) of $21,000 after getting the blessings from my father to go ahead. I did a lot of research — finding the right seedling is important because, as they say, ‘Trash in, trash out.’ So I reached out to people in Costa Rica, Brazil, Hawaii, and I wanted to learn best practices because I realised that I was given a rare opportunity,” he continued. By September 2016 Sangster was putting the first seedlings into the ground for what would become a thriving business and the launchpad which catapulted his career. He said he launched his first marketable coffee product in 2019. But when COVID-19 hit, that market disappeared. Additionally, the job he had for 13 years at Panasonic Avionics Corporation came to a screeching halt as international airlines took a beating. At that point, Sangster decided to go full force into coffee. “We realised that people were starting to buy more coffee online because of COVID [so] e-commerce was really the direction that I needed to go. So, I built an e-commerce platform and increased my product line. I started sending coffee to people all over the world. I was writing to people saying ‘Hey, do you like coffee? I’ll send you coffee,’ “ Sangster added. It was that initiative that led him to an unknown coffee enthusiast in Dubai. “On November 9, 2020 I came across a post and this guy was at the Versace mansion in Miami, and he was sitting there and he said, ‘Sourcing Jamaica’s finest Blue Mountain Coffee.’ So I reached out to him on Instagram. Three days later I get a message back from him [and] he goes, ‘I’ve done a little research on you. You look like you’re vertical — you own your own farm and stuff — yeah, I’d love to try it,’ “ reported Sangster. Sangster would later find out that the unknown coffee enthusiast is Ahmed Bin Sulayem, CEO/executive chairman of the DMCC — the golden Dubai Diamond Exchange. The DMCC has been crowned six times as ‘Global Free Zone of the Year’ by the Financial Times fDi magazine. It is home to a vibrant community, innovative infrastructure, world-class services and a stunning choice of properties — all minutes from excellent air, sea and road links to the world. After sampling the coffee from Sangster’s farm in Irish Town, St Andrew, the DMCC CEO made a bold demand “We need to get this to Dubai like now!” That’s when Sangster extended an invitation for the DMCC CEO to visit the island and meet with government diplomats and some of the other coffee producers on the ground. Currently, Sangster is sending 10,000 pounds of coffee to Dubai, but he told the Jamaica Observer’s Business Observer that the demand is much greater. Since the start of the year, US$46,000 has been invested towards that market. “I ended up opening a company in Dubai; I met all these people and started building relationships,” he noted. But that’s not the only opportunity the entrepreneur brought to Jamaica in recent times. He said there may be promising prospects for the sugar industry on the horizon, all stemming from a personal relationship he built with investors from a global energy company called World Energy. “World Energy is a leader in biomass jet fuel, and one of the things that they need is raw materials and one of the raw materials they use is bagasse or sugarcane trash,” said Sangster. He said Jamaica’s sugar industry is the solution to the problem World Energy is facing. “He comes to me and he goes, ‘Bindley I want to partner with Jamaica. Logistically they are sound, their sugar industry is hurting, sugar lines aren’t being utilised.’ So I said ‘Yes’ so they’re coming August 8 with their team and he’s coming wearing two hats, chairman and CEO of Dakia Global and chairman of World Energy.” Sangster has since been recognised by the Foreign Affairs and Foreign Trade Ministry as well as local trade and investment agencies as a crucial individual in securing foreign direct investments for the island. He says he will continue to promote Brand Jamaica wherever he is in the world. Source: https://www.jamaicaobserver.com/business-observer/sangster-s-coffee-paves-the-way-for-more-foreign-investments_227183?profile=1056

The World Bank is moving its Caribbean operations to Jamaica as part of its plan to decentralised more staff and functions to the field offices by the mid-2020’s. Carlos Felipe Jaramillo, World Bank regional vice president for Latin America and the Caribbean (LAC), commenting on the relocation of staff from Washington, said “The World Bank has decided that because of the importance of Jamaica, we are creating a regional hub to manage all our business in the Caribbean from right here in Kingston.” Jaramillo was speaking with the Jamaica Observer at the end of a three-day visit to island earlier this week. It was his first trip as regional vice president for the LAC and his first visit to Jamaica. Finance Minister Dr Nigel Clarke also added, “Jamaica has taken responsibility, shown leadership and is therefore an example to the region, and to the world, of a country boldly facing its challenges, with steady resolve, creativity and discipline. The visible and encouraging results are not only our success. They are the success of our bilateral and multilateral partners too. By relocating its Caribbean headquarters from Washington DC to Kingston, the World Bank implicitly projects Jamaica’s example and achievements to others, even as we continue to work assiduously towards improving social and economic outcomes.” Jaramillo says the process to expand the office is now being started. The regional offices will be headed by Lilia Burunciuc, who was appointed World Bank country director for Caribbean countries, effective July 1, 2021.   Jamaica to benefit from US$185-million Catastrophe Bond After three years of efforts, Jamaica has now secured a catastrophe bond to insure the country against financial losses up to U.S.$185 million from named storms for three Atlantic tropical cyclone seasons from 2021 to December 2023. Finance Minister Dr Nigel Clarke first outlined the need for a catastrophe bond for Jamaica in May 2018, but at the time the existence of investors willing to accept tropical cyclone and hurricane risk from a single island, situated in the direct path of hurricanes, was unproven. Clarke commenting on the deal which was finalised on Monday during the visit of the World Bank’s Regional Vice President for the LAC, Carloe Felipe Jaramillo, noted, “with the World Bank’s support, we made our case to the governments of the UK and Germany, through the Global Risk Financing Facility (GRIF), which they capitalise. They bought into our vision and provided us with a grant that we will use to help pay the premia.” “We received similar support from the USAID which began with my first meeting with Jason Fraser when he assumed responsibility for USAID in Jamaica.” The catastrophe bond is the first for any country in the Caribbean and the first of any small island state. It’s also the first ever catastrophe bond with the cat in a grid trigger design. To determine payout, the most sophisticated technology will be used to quickly assess the damage of a hurricane with the data taken from the US National Hurricane Center automated tropical cyclone forecast. It allows for the determination of the payout within a few weeks of the event. That grid divides Jamaica into a grid of 19 squares in a map that are superimposed over the island. The data from the US Hurricane Center, will show which of these squares are affected, and depending on the damage in each square the payout is determined. Clarke further added that “The Government of Jamaica has strategically prioritized disaster risk financing to mitigate the adverse fiscal impact of tropical cyclones and hurricanes, thereby increasing our economic resilience. We have to incorporate the realities of our climatic vulnerability by planning ahead.” The World Bank says it hopes other Caribbean countries will follow suit. Source: https://www.jamaicaobserver.com/business-report-daily-biz/world-bank-relocating-regional-offices-to-kingston_226885?profile=1056