Logistics Hub

The Jamaica Special Economic Zone Authority (JSEZA) is spearheading a one-week study tour to Singapore, which started last Friday. Headed by minister without portfolio in the Ministry of Economic Growth and Job Creation, Daryl Vaz, the tour is one of a three-part programme agreed on with the government of Singapore through the Singapore Cooperation Enterprise, an agency formed by the Ministry of Trade and Industry and the Ministry of Foreign Affairs of Singapore. The seven-day initiative will see key ministries and department and agency heads participating in a full immersion in Singapore’s practices and standards in areas such as economic and industrial development; Customs procedures; and maritime, aviation, and technical education. While in Singapore, the team will visit government agencies such as the Economic Development Board, the Urban Redevelopment Authority, Maritime Port, Special Economic Zones, the Urban Redevelopment Institute of Technical Education, Singapore Customs, and the Airport Logistics Park, among others. There will be a learning journey through sites of economic interest and workshops, including a session on “Envisioning the Future”. The Jamaican contingent will learn about Singapore’s industrialisation journey; their SEZ ecology; the key ingredients for a successful SEZ – planning principles, site considerations and development strategy; and, among other things, see how Singapore has developed a world-class logistics ecosystem around the airport.   GOV’T’S PRIORITY “Growing the Jamaican economy is a priority for the Jamaica Special Economic Zone Authority, and our intention is to get it right,” said the JSEZA’s chairman, Metry Seaga. “In order to do this, we must incorporate international best practice and service standards. This is why we have partnered with Singapore and will be participating in this study trip to get a first-hand view of First-World practices,” added Seaga. According to Seaga, Singapore has a results-driven approach to the business of economic growth, and it is expected that this programme will provide participants with the tools necessary to spur growth through the development of SEZs. The second part of the initiative will include workshops to be held in Jamaica, which will allow more than 200 government officials to be trained in key areas of development. The third part of the programme will see the creation of an implementation road map for the creation of a large-scale SEZ in Jamaica. “This initiative is a true governmental partnership model as it includes participants from a range of government organisations that are central to the SEZ development process. This is also the ideal time for us to participate in this programme as the SEZ regime is new and in the initial stages of rollout,” said Seaga. Read more: http://jamaica-gleaner.com/article/news/20170611/jamaican-team-singapore-study-tour

Free Zone to SEZ: a new policy direction The name change from Free Zone to SEZ is not a simple matter of form over substance. The SEZ concept is a deliberate policy break away from past policy and is intended to send a clear signal to the investor community (domestic and international); the multilateral lending agencies; and the WTO that Jamaica is moving in a new policy direction. The Free Zones of the past were largely export processing zones reliant on non-World Trade Organization (WTO) compliant export performance fiscal incentives, the SEZ on the other hand move beyond export processing and is fully WTO compliant.   The Jamaica SEZ model SEZs are purposed built and fully serviced sites aimed at improving the competitiveness of manufacturing and services. They are founded on the principles of improving efficiency, clustering of complementary value added services, and seamless integration into the global value chains, low corporate taxation and a business friendly environment. These principles, however, are not self-applying. They have to be implemented systematic and this is where the Jamaica Special Economic Zone Authority (JSEZA) comes into play. JSEZA is the government body charged with regulating, monitoring, supervising, promoting and facilitating investments in SEZs in Jamaica. Through the work of JSEZA SEZs investors will facilitate and be facilitated by: Developing world class industrial infrastructure, supported by world class transport infrastructure (road, rail, airport and ports) that function as trade facilitators; Competitively priced energy; Increase cargo flows through increased transshipment throughput; increased imports as inputs into production (SEZ and domestic); and increased exports as semi or finished goods (SEZ or domestic) that have the Made in Jamaica label; Optimize and analyzing cargo flow information to seek out, attract and manage higher value-added logistics activities; and Create backward linkages to the rest of economy through our Micro, Small, Medium Enterprises (MSMEs) through the sourcing of domestics raw materials as inputs into production and by subcontracting of local service providers. Read more: http://www.commerciallawinternational.com/?p=1804

KINGSTON, Jamaica (JIS) –The Government is projecting that 170 jobs will come from investments of US$204 million in logistics and manufacturing during the current fiscal year. Minister without portfolio in the Ministry of Economic Growth and Job Creation, Daryl Vaz, said investment of US$104 million is projected for logistics, which will see the creation of some 70 jobs across various subsectors, including airports and seaports, railway, transhipment infrastructure and dry-docking. Vaz, who was making his contribution to the 2017/18 Sectoral Debate in the House of Representatives on Tuesday, said the expansion in logistics will be facilitated through the Special Economic Zone (SEZ) Regulations, which is being finalised. He informed that phase one of the Logistics Industrial Analysis Master Plan has been completed, and phase two is expected in a few months. In manufacturing, the projects to come on stream are expected to create capital expenditure of some US$100 million and create 100 jobs. Minister Vaz told the House that the Government is having discussions with the Jamaica Manufacturers’ Association (JMA) to see how the Development Bank of Jamaica (DBJ) and the Factories Corporation of Jamaica (FCJ) can facilitate expansion of the sector, particularly with regard to the provision of needed factory space on favourable credit terms. Source: http://www.jamaicaobserver.com/latestnews/170_jobs_projected_from_US$204m_investment_in_logistics,_manufacturing?profile=1023

Jamaica’s logistics Hub Initiative is to get new life, says Prime Minister Andrew Holness, who declared the development of the logistics sector a national project. Holness made the announcement last month during his contribution to the Budget Debate in the House of Representatives. The prime minister said the Government intends to develop special economic zones where light manufacturing and assembly operations can be undertaken for the international market; create an environment to attract ‘anchor’ investors and other innovative knowledge-based firms to relocate their regional and international operations to Jamaica. Holness pointed to the special economic zone (SEZ) law and regulations as critical components of the Logistics Hub Initiative, which will provide the legislative framework to attract manufacturing companies and technology firms to engage in value-added activities on goods trans-shipped through Jamaica. The Jamaica Special Economic Zone Authority (JSEZA) is the organisation established to regulate and facilitate the development of SEZs in Jamaica. The authority is currently working to oversee the enactment of the new regulations. JSEZA TO FACILITATE TRANSITION The Jamaica Special Economic Zone Authority, which is housed in the Ministry of Economic Growth and Job Creation, will be facilitating the transition from free zones to the special economic zone regime. JSEZA will regulate and supervise SEZs, while providing a policy direction for the development and sustainability of Jamaica’s economy through the administration of SEZs. Further, the authority is mandated to attract new and diverse investments in SEZs, while simultaneously providing a policy direction for the development and sustainability of Jamaica’s economy. The operations of the authority will seek to grow the Jamaican economy by increasing its production capacity through job creation. The SEZ legislation, which was enacted August 1, 2016, and resulted in the repeal of the Jamaica Export Free Zone Act, will move Jamaica into a new age of trade and development. An integrated approach has been taken in order to ensure that the environment is conducive to the growth of both goods-producing and service industries. Importantly, the Customs Act is also being revised to make it more supportive of the development of logistics operations linked to the trans-shipment addition of value to goods through the island’s special economic zones, seaports and airports. … Development a must for boosting economic growth Prime Minister Andrew Holness has declared the development of the logistics sector key to achieving targets such as making Kingston “the leading trans-shipment terminal in the region in 2018”, and, ultimately, boosting economic growth and job creation. The latter push is of critical importance to arriving at the five per cent GDP growth promised by the end of the financial year 2020-2021. “Jamaica has to use all of its advantages in the pursuit of sustainable economic growth and development,” Holness told lawmakers. MAJOR MILESTONES Two major milestones in the roadmap to support the development of Jamaica as a logistics hub are currently being funded by the Foundations for Competitiveness and Growth (FCG) Project which is a loan programme from the International Bank of Reconstruction and Development (the World Bank). In the first instance, US consultancy firm Nathan Associates Inc is due to present, by July 2017, an industry analysis and master plan that is expected to guide the development plan for the Logistics Hub Initiative. Second, the feasibility study for the large-scale Caymanas Special Economic Zone is currently underway. The Government is encouraged by the efforts of private-sector investors to take up the challenge to further develop logistics operations on numerous strategically located parcels of land for the construction of warehousing and to facilitate manufacturing, assembly, business process outsourcing, and other value-added activities.

KINGSTON, Jamaica (JIS) — Key partners in the staging of a logistics symposium are upbeat and have high expectations for a successful, information-sharing event. The symposium, slated for Saturday, July 23 at the University of the West Indies Regional Headquarters in Mona, St. Andrew, is expected to attract approximately 200 persons representing both the public and private sectors, including the thinkers, implementers, business strategists, companies and individuals who may wish to capitalise on the future growth of the global logistics industry. Chairman of the Logistics Hub Initiative, Dr Eric Deans explained that the symposium will look at what it means to become a logistics gateway and how Jamaican businesses can fit into a global marketplace. “We would want to have more sharing of knowledge as to what is happening with the logistics hub…persons need to be aware of what is taking place within the region, what is happening in terms of goods moving through the region, investments taking place in other countries, various investment trends and countries positioning themselves to take advantage of these trends. So it is about breaking it down to the individual level to let persons understand how they can take advantage of these happenings,” Deans pointed out. Vice-President of Cable & Wireless Business, Donovan White said that he expects a continued flow of information with small, medium and large enterprises and for them to understand the importance of the logistics hub initiative (LHI) to long-term microeconomic success. “My expectation from the symposium is that people will come and walk away being a lot more aware…there is a lot that has gone on in the last year in terms of behind-the-scenes work (as part of the logistics hub initiative) and so, the more people come with an open mind and believing that there is a move to change our economic development in a positive way, then I believe people will leave feeling that we are on to something and that they need to get involved,” White expressed. The day’s proceedings will begin with a plenary and opening ceremony featuring a presentation from the economic consulting firm Nathan Associates Inc, entitled ‘Master Plan and Industry Analysis for the Global Logistics Hub Initiative’. This session will provide an update on findings and state of developments relating to the global logistics hub initiative. The sessions following will include panel discussions on three key areas within the global logistics industry: manufacturing, transportation and services. The symposium is being staged by Mona School of Business & Management (MSBM), Planning Institute of Jamaica (PIOJ), Jamaica Logistics Hub Taskforce, Ministry of Economic Growth & Job Creation, Port Authority of Jamaica and Caribbean Maritime Institute in association with Cable & Wireless Business, Sutherland Global Services and the Shipping Association of Jamaica. Source: http://www.jamaicaobserver.com/news/Over-200-expected-at-logistics-hub-symposium-tomorrow

The Ministry of Industry, Investment and Commerce welcomes the passing of the Special Economic Zone Act in both the Senate and the House of Representatives. The legislation represents a milestone achievement as part of the Global Logistics Hub Initiative and facilitation of investments into Jamaica. Special Economic Zones represent a wide variety of geographically-demarcated areas that offer simple and efficient business regulations and procedures to investors. The Special Economic Zone Act has effectively repealed the Jamaica Export Free Zones Act, making way for the designation, promotion, development, operation and management of Special Economic Zones; the establishment of a Special Economic Zone Authority and the granting of benefits and other measures in order to attract domestic and foreign investments. Minister Hylton in commenting on the legislation stated, “We envision that the zones will attract new economic activities, supported by the provisioning of new infrastructure. It will also allow domestic suppliers to sell to companies located in the SEZs and potentially become part of global supply chains. Importantly, incubators will be a key feature to ensure our MSME sector has an opportunity to be part of this growth initiative.” In preparation for the transition from the Freezone regime to the SEZ regime, the Ministry has conducted consultations with existing Free Zone entities to allow for a smooth process. Existing Freezone operators such as Gulfray Americas Limited, which recently announced a US$350 million investment in the build out of the Spanish Town Free Zone and Kingston Wharves Limited, which is investing $J 1.8 billion in the build out of its Total Logistics Facility are among investors that will transition to the Special Economic Zone regime. Source: http://www.mof.gov.jm/mof-media/media-centre/press/2270-special-economic-zone-act-passed.html