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News

UWI, New Fortress Energy to increase STEM capacity

As the Government continues to diversify and transform the energy sector to include liquefied natural gas (LNG), The University of the West Indies, Mona has announced a milestone partnership with New Fortress Energy to introduce a cryogenics engineering course in the Faculty of Engineering. This course, said the UWI, is testament to the natural gas provider’s long-standing commitment to developing a sustainable future for Jamaica’s economy and society through LNG. Cryogenics engineering involves the design and development of systems and components which produce, maintain, or utilise low temperatures. Ever since the first liquefaction of air around the turn of the 20th century, the interest of engineers and scientists on cryogenics have significantly broadened. Some of the uses of cryogenic systems include the research and development around the cure of diseases, liquid fuels (hydrogen) for space flights and liquefied natural gas. The primary aim of the course, therefore, is to introduce students to the engineering aspects and challenges of cryogenics, with special emphasis on the design and analysis systems used to produce, maintain and utilise low temperatures, including liquid natural gas technologies and their applications. MILESTONE ACHIEVEMENT Professor Dale Webber, pro-vice-chancellor and principal of the UWI, Mona, said the partnership is a milestone achievement for the university being the first to offer cryogenics engineering at the tertiary level in the Caribbean. “With LNG being the future of energy, this is no doubt a milestone achievement for the UWI Mona in being the first tertiary institution in the Caribbean to offer a cryogenics engineering course for BSc engineering students.” Webber added, “We have enjoyed a great partnership with NFE since their inception in Jamaica. In addition to scholarships and bursaries for more than 50 engineering students over the past three years, we have been able to upgrade our existing combined heat and power plant through an agreement with NFE to provide LNG for the plant. This has seen us reducing our energy cost by some J$52 million annually and improving our environmental footprint with a 16 per cent reduction in greenhouse gas emissions, while allowing us to become energy independent. We commend New Fortress Energy for its vision and commitment to Jamaica’s energy sector. Importantly, we applaud them for their unwavering commitment to building an energy sector that is fit for purpose and fit for the future, and we’re delighted to be part of this journey.” The curriculum is fully funded by New Fortress Energy, including all prescribed texts, lab equipment, simulation software tools and licenses plus laptops, which the natural gas company donated to the Faculty of Engineering to ensure that all cryogenics students can fully access their online classes. Students will also benefit from guest lectures by NFE experts, as well as summer internship programmes at the company’s LNG plants in St Catherine, Clarendon, and St James. “We are proud of the long-standing strategic partnership that we have shared with The University of the West Indies, Mona since our inception in Jamaica. For the LNG sector to be successful and sustainable, it is not enough to simply supply LNG to any market. Educating and upskilling the next generation of LNG engineering professionals play an integral role in this journey,” said Wes Edens, chairman and CEO of New Fortress Energy. He continues: “The introduction of this cryogenic course at the UWI also aligns with our long-term interest in creating and sustaining a cryogenic centre in Jamaica. The UWI plays a critical role in providing world-class education in Jamaica and the Caribbean, and we are delighted to expand our partnership with them to ensure Jamaica is well positioned to compete in the global LNG marketplace.”

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Derrimon bullish on planned expansion of own branded products

Company to spread its Delect brand by leveraging recent acquisitions locally and in North America FRESH from its successful additional public offer (APO), commodities distributor Derrimon Trading is now ready to expand its own branded products, which will be given a significant push this year. Conceding that the focus over the recent period has been on growing the business organically, the management of Derrimon is now zeroing on its own branded products as part of Derrimon 2.0, which represents its growth strategy moving forward. Explaining that the APO was the precursor to Derrimon 2.0, Derrimon Chairman and CEO Derrick Cotterell admitted that part of the proceeds from the equity subscription will be used to grow its own branded products such as the “Delect” suite of food products. Delect family of foods is Derrimon Trading’s flagship brand. Included in the Delect family of foods are rice, canned mackerel, ketchup, vegetable oil, cornmeal and other food items. Speaking at last week’s Observer Business Forum, Cotterell remarked that having been successful at growing the company, the time is now applicable for building out Derrimon’s branded products. The idea behind Derrimon promoting its own branded products, says Cotterell, is to give consumers products which, while being similar, are different and unique and deliver more value to them. According to Cotterell, “Derrimon is now at the stage where we want to expand our own brands to give shareholders and customers better value. We have Delect and other brands…All this is to transform the whole company from just being a company of commodities.” Cotterell, who formed the company along with his wife in 1998, is bullish on his expansion plans for the business, stating that the plans he has for “Derrimon is to turbo charge the growth of the company through Derrimon 2.0”. Cotterell sees Derrimon as a local company that will have a global reach. He disclosed that the brand roll-out will focus on products that offer great value to consumers. For his part, Derrimon’s Chief Financial Officer Ian Kelly pointed out that the company has already identified the gaps in the market which it can exploit through new and current branded products. “We see these gaps on both the domestic and international market side…we are at the stage where we will be getting into some of those products and to supply them in both the local and international markets,” Kelly told the Observer’s Business Forum. He added that the emphasis will be on innovation. Delect, he declared, is going to be different in the market place and is very optimistic that the brand will do well moving forward. LEVERAGING US ACQUISITIONS TO GROW DERRIMON’S BRANDED PRODUCTS Cotterell and Kelly highlighted that the recent American acquisitions of Brooklyn-based grocery store businesses Foodsaver New York and Good Food for Less, is very strategic in this thrust by Derrimon to grow its own brands. They pointed out that the company plans to use these food establishments to grow Derrimon’s brands and business in North America. Derrimon is said to be pumping US$9 million ($1.3 billion) into the acquisition, which the majority of the proceeds from the APO will fund, the APO having raised over $4 billion. Around a third of the APO proceeds of $1.2 billion will be used repay debt, while $1.1 billion will fund the purchase of Foodsaver and Good Food for Less. Some $500 million will fund the expansion of retail operations in the parish of Clarendon and $200 million will be poured into the Delect food brand and product line. Cotterell is adamant that Derrimon will this year push further in its drive for greater market share, not just in Jamaica but also in other markets in the Caribbean and North America.

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Solar test case – Lasco Distributors first to tap into US$50m energy alliance

Lasco Distributors Limited aims to power close to a third of its operation using solar energy, and potentially a portion of its sister manufacturing company at White Marl, St Catherine, through a 500-kilowatt photovoltaic system. The buildout of the solar plant, which will be Lasco’s first adoption of a renewable source for electricity, is being done in partnership with the United States Agency for International Development, or USAID, and the University of the West Indies, both of which are collaborators on a new initiative called the Jamaica Renewable Energy Alliance, along with local organisations. Lasco Distributors is the first company expected to tap into the alliance’s resource pool of US$50 million – funds that are earmarked to support ‘solar systems with battery storage’ investments over the next four years. USAID is contributing US$4 million of the funds. Other members of the alliance include local renewable energy developer Wigton Windfarms Limited; international solar energy investor WRB Energy; technical consultancy firm Cadmus; the Jamaican Hotel and Tourist Association; Rocky Mountain Institute; Xergy Energy; and Green Solutions International. The outcomes from Lasco’s project will be studied for the buildout of similar energy projects across the tourism and manufacturing sectors, in the first instance. The alliance’s goal is to accelerate the market for distributed solar and storage systems in Jamaica, while accelerating the transition to clean and sustainable energy sources. Other Jamaican businesses have been investing in photovoltaic systems, but this alliance also prioritises power storage. “It’s the largest one of its kind around with battery storage, which is the critical thing, so that when the sun goes down we will still have energy stored up. We have done all the pre-feasibility works along with all the partners and it is positive,” Deputy Executive Chairman for Lasco Distributors and Lasco Manufacturing Limited, James Rawle, told the Financial Gleaner on Tuesday. “It will not power the entire Lasco operation, but it will power a significant portion of distribution activities, office activities and things like that, and even on the manufacturing side, to get us to upwards of 30 per cent of consumption; but the coverage depends on a lot of things,” said Rawle, who is also managing director of Lasco Manufacturing. Lasco is currently in the process of securing suppliers for the solar panels and battery. Installation of the solar system will span nine months. Rawle did not disclose how much the solar project is expected to cost or the expected savings to be derived from the investment, noting that the partners are still working through the details. Since the outbreak of COVID-19 in Jamaica, Lasco has been adjusting its internal processes in response to changes in consumer behaviour and consumption patterns. The decline in sale of products that fall under the category ‘out-of-home consumption’ or ‘on-the-go consumption’ has been dramatic for Lasco Distributors, largely due to COVID-19 restrictions on gatherings, curfews and other mitigation measures. Instead, demand has shifted to the company’s product lines categorised as ‘in-home consumption’. “That has affected the entire supply chain, and manufacturing has been skewed to those products that are in higher demand. That’s the story of all food producers,” said Rawle. “It’s not only high-margin products that are affected.” He added that some high-margin products continue to do well because they suit market preference “in the moment”, but that “some low-margin products that are not relevant to how consumption is taking place, is not moving, although they are really attractive in price”. Lasco Manufacturing and Lasco Distributors have both reported double-digit increases in net profit for the quarter ending December 2020, a performance they credit to timely response to changes in the market throughout the pandemic. Lasco Distributors’ earnings grew 41 per cent to $243 million on revenues of $5.2 billion, while the manufacturing business pulled in profit of $281 million on revenue of $2.07 billion in the quarter.  

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MAJ recommends crew change hubs to address seafarer crisis

The COVID-19 pandemic has had a debilitating impact on the global community. Not least of the consequences is the crisis this created for seafarers – the many men and women on the front line, working on-board ships, ensuring the flow of vital goods such as food, medicines, essential supplies and energy. As many governments sought to protect their citizens from this contagious disease, ports and borders were closed. This created difficult working conditions for seafarers, as they were not allowed to travel across borders to take up crewing assignments. Others who had completed their Seafarer Employment Agreement (SEA) could not return home to their families. Instead, SEAs were being extended to facilitate continuity of trade. Seafarers are still faced with a humanitarian crisis. According to information from the International Maritime Organization (IMO), as of December 2020 it is estimated that some 400,000 seafarers remain on-board commercial vessels, unable to be repatriated and past the expiry of their contracts. A similar number of seafarers urgently need to join ships to replace them. The IMO is the United Nations specialised agency responsible for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. IMO data indicates that on any given day, nearly one million seafarers are working on some 60,000 large cargo vessels worldwide. The Maritime Authority of Jamaica (MAJ) believes a global network of crew change hubs would help alleviate the humanitarian crisis seafarers face at present. These hubs, which would provide free movement and safe travel across borders, could offer a short-term solution to the barriers presented by global travel restrictions, ensuring vital crew changes could take place, thus facilitating trade and logistics to the benefit of the world economy. According to Rear Admiral (retd) Peter Brady, director general of the MAJ, “In the Caribbean, for example, several smaller states still have not reopened their borders, so no one is coming in and no one is going out. With a hub, seafarers would be able to move, and to move more freely. Some natural crew change hubs already exist pre-COVID-19, by virtue of the concentration of shipping, and we suggest that more could be developed to deal with the current stagnation of crew travel in parts of the world. Whether they are then retained in the long term would be subject to global strategy and based on assessment by industry of their costs and benefits.” The Government of Jamaica, recognising the hardship being faced by seafarers, reopened its borders to enable controlled entry and transit of crew and has designated seafarers as essential workers under its 2020 Disaster Risk Management Order in June. “Jamaica has already positioned itself as a hub, with the investment in a crew change online platform which seafarers, crewing agencies and ship managers anywhere in the world can use to facilitate crew changes in Jamaica,” said Brady. To date, Jamaica has facilitated nearly 2,300 crew changes. UNCERTAINTY WITH LACK OF INFORMATION There has been much uncertainty regarding the spread of the COVID-19 disease, coupled with a lack of information on the control of the pandemic, and this has increased the reluctance from states to open their borders. With urging from the IMO and other organisations responsible for the welfare of seafarers, and thanks to the development of international protocols, some states are slowly looking to reopen their borders. Rear Admiral Brady, a former chair of the IMO’s Standards of Training and Certification for Watch Keeping (STCW) Committee, stressed the importance of putting seafarer welfare at the forefront of international maritime efforts: “The pandemic has highlighted that seafarers are the backbone of the global supply chain and that crew retention is even more critical to the continuation of world trade. Crew retention can be tackled by more port state and flag state administrations taking stronger positions on ensuring that living and working conditions on-board ships meet the international standards, and by designating crew as essential workers, with the attendant privileges.” STCW is the worldwide convention that ensures a unified standard of training for seafarers is achieved across all countries in the world. The MAJ director general added that a future challenge will be motivating seafarers to continue this career, in light of the crises and hardships they have endured during the pandemic. Brady further recommends: “The industry and individual companies must take steps to address crew retention by improving and increasing welfare benefits to seafarers on-board. Introduce benefits such as access to gymnasiums, to Internet connections to enable crew to keep in touch with their families, and provide online counselling and opportunities for studying.” He also recommends that “access to a safe and efficient vaccine may also put ships’ crew at ease and provide some level of calm on-board. Seafarers will be less worried about the ills of the COVID-19 pandemic as they travel globally.” In response to the pandemic, flag states have needed to be agile and adapt their regulations and methods of operating, in order to keep shipping lines open and enable world trade to continue. In addition, they have put in place measures to support seafarers. In the case of Jamaica, where the circumstances warrant and there is mutual agreement between the owner and the seafarer, the MAJ has not objected to the extension of SEA to facilitate continuity of trade. However, the MAJ encourages owners, as soon as is possible, to make the necessary arrangements for seafarers to be safely repatriated at the end of their SEA.

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Growth & Jobs | Expansion of Sangster airport moves ahead – … amid projections of recovery in air travel

The Airports Authority of Jamaica is projecting a recovery in passenger traffic for Jamaica’s two international airports even as capital improvement works proceed apace at the Sangster International Airport (SIA) in Montego Bay, St James. President and Chief Executive Officer (CEO) of the Airports Authority of Jamaica (AAJ), Audley Deidrick, says the travel and tourism industries have, by far, suffered the most significant impact from the COVID-19 pandemic. Despite the downturn in traffic and revenues, Deidrick says that the airport concessionaire is pressing ahead with many of the planned improvements under the master plan, which is required every five years in response to current and future growth forecast. The projects, which represent an investment of approximately US$170 million, include expansion works under a master plan programme and a runway expansion project. The AAJ CEO says this comes against projections for a sharp recovery in passenger traffic in 2021, with SIA projected to post three million passengers, and one million at Kingston’s NMIA, representing increases of 65 per cent and 55 per cent, respectively. AAJ owns the island’s two international airports and provides oversight and contract administration for the concession agreements, which are in place for the operation of each facility. Deidrick points to an Airports Council International (ACI) Advisory Bulletin published on December 8, 2020, which had projected that the global airport industry would record a reduction of more than six billion passengers by the end of 2020, compared to the pre-COVID-19 forecast for the year, representing a decline of 64.2 per cent of global passenger traffic. Consequently, markets having significant domestic traffic are expected to recover in 2023 to pre-COVID-19 levels, while markets with a significant share of international traffic are unlikely to return to 2019 levels until 2024. However, due to wider economic and other factors that drive Jamaica’s international passenger traffic, the recovery to pre-COVID levels is not expected until 2025-2026. “So they had done a master plan, which calls for major expansion of the terminal, the car park, realignment of roadways on the air side, and access to the airport,” Deidrick says. The master plan was approved in 2019 and was expected to begin in 2020, but activities were put on hold due to COVID-19. Works under the programme, which amount to over US$100 million, are separate from the runway expansion project, which started in 2019, and are being undertaken at a cost of US$70 million. That runway expansion, Deidrick says, is significantly advanced and is forecast for completion by the end of 2021 into the first quarter of 2022. As it relates to the master plan, he says that some elements of the programme have already started. “They had gone ahead to construct 7,000 square metres of additional circulation space and retail concession space in the departures terminal. That work is significantly advanced and should be completed around August of this year,” he notes. Deidrick adds that the management of the airport has also implemented a solar power system, which will provide significant power supply to the airport at a cost of US$1 million. The installation is expected to be completed by August. “So all these works are continuing. The only ones that are not continuing right now is the stretching of the terminal building to accommodate greater space internally in terms of immigration, Customs, and the transportation halls,” he adds.

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Entrepreneurs get support from IDB Lab, Kingston Creative

The creative community has received a breakthrough following on the forging of a three-year technical agreement between Kingston Creative Limited and IDB Lab, the innovation laboratory of the Inter-American Development Bank. The collaboration, which will fast track social and economic transformation through the merger of creativity, culture and technology will support 1,500 entrepreneurs and creative enterprises, notably 300 creative entrepreneurs based in downtown Kingston. Additionally, 60 creative businesses will benefit from the integration of new technologies in their business models and 25 entrepreneurs will be connected to new international markets and opportunities. Therese Turner-Jones, IDB’s General Manager for the Caribbean Country Group and Country Representative for Jamaica, noted that the creative community has suffered immensely since the onset of COVID-19. “We are very happy to provide support to this industry especially as this partnership will afford creative entrepreneurs a vista for valuable global connections, greater visibility for their work and new opportunities for learning, incubation, and acceleration of their efforts,” she said. The technical cooperation agreement is for US$1,295,000 with IDB contributing US$ 595,000 and Kingston Creative US$700,000. The programme will involve improving the digital and business skills of creatives, creating online platforms, market access tools and strengthening the creative ecosystem. It will be supported by entities such as the Kingston & St. Andrew Municipal Corporation (KSAMC) and the Tourism Enhancement Fund (TEF) an agency of the Ministry of Tourism. Andrea Dempster-Chung, Executive Director of Kingston Creative, said that she was excited about the benefits that will accrue to creatives that drive the $84 billion-creative economy. Noting that 2021 was designated by the United Nations as the International Year of Creative Economy for Sustainable Development, she said “the partnership will position Jamaican creatives to recover and re-emerge stronger post-COVID. IDB Lab will also connect creatives with regional and global partners through a host of networking capacity-building opportunities. The new coworking space, the Kingston Creative Hub, will also provide creatives physical access to space; hot-desks, meeting rooms, offices, and podcasting, dance and digital studios. “We are also excited about continuing our work on the inclusive and balanced development of the new Downtown Kingston Art District and now connecting Port Royal by linking community creatives into the tourism value chain and providing them with digital platforms and skills to improve their market access,” Dempster-Chung added. Terry-Ann Segree, IDB Lab Private Finance Senior Specialist, also explained that there is an increasing trend globally to mix the traditional artistic elements of contemporary art and culture, music, fashion, literature, theatre, dance, and film with animation, augmented and virtual reality, 3D printing, science, gaming and software. “We will focus on fostering collaborations between artists and developers, designers and scientists, to add economic and social value to cultural and creative assets while creating a transmedia storytelling focus on Jamaican creators to give them visibility locally and internationally.”

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Caribbean Flavours and Fragrances set to grow even further

Following Derrimon Trading Limited’s (DTL) initial acquisition in August 2014, which culminated in a majority interest control in February 2017, Caribbean Flavours and Fragrances (CFF) has grown significantly with the company set to gain a larger runway as DTL expands into the North American market after its highly successful additional public offering. Despite several flavourings in food being imported into Jamaica, CFF has supplied the local market by allowing several Jamaican manufacturers of all sizes to tap into the local expertise of a home-grown business to provide the best options to its clients. These products extend from beverages, milk-based products to snacks consumed by the everyday Jamaican which also includes colouring to give it a distinct Jamaican taste. This led to CFF Managing Director and DTL Chief Executive Officer Derrick Cotterell describing the business as very small in terms of people but very large in reach and efficiency, as seen by the company’s financials which topped $452 million with a 32 per cent gross profit. “We’re not just importing a finished product and reselling it. We actually manufacture the flavours in Jamaica and sell to the market. Since we bought the plant from Anand James some years ago, it’s a completely different business. We have retrofitted the plant, which has seen it improve to international standards,” said Chief Financial Officer Ian Kelly in a recent Jamaica Observer Business Forum. A major focus which Kelly pointed towards was the company looking to extract unique Jamaican flavours such as ginger, along with other home-grown products, to allow for a wider market to appreciate the value Jamaican products can have in a larger market space. With the Safe Quality Food (SQF) Institute certification under its belt, Kelly believes that the company will be able to expand its exports to the North American market in addition to the seven other countries in the Caribbean it currently serves. He’s also confident that the company will be a vital player in the fight against COVID-19 with the company creating fragrances and other products for sanitation companies locally. “We’re going to have some unique products that won’t just have an appeal to Jamaicans abroad, but international appeal that will spill over into the wider North American market. This is one of the acquisitions we’re very proud of since Mr James still consults with the firm and provides insight where needed,” Kelly said.  

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ILO Funds Project To Formalise Operators In Agriculture And Fisheries

The International Labour Organisation (ILO) has provided the Government with US$70,000 to implement a project called ‘Formalising Operators in the Jamaican Agriculture and Fisheries Sectors’. This project will promote the benefits of formalisation and assist target operators to formalise their operations. A memorandum of understanding (MOU) was signed during a virtual broadcast, which connected representatives from the Ministry of Industry, Investment and Commerce; the Ministry of Agriculture and Fisheries and the ILO, on Thursday (February 4). This agreement is for a pilot phase of the project, which has a duration period of 11 months. The target beneficiaries include 100 farmers and fisheries producers registered with the Rural Agricultural Development Authority (RADA), 70 per cent of whom are farmers and the remaining 30 per cent fisherfolk. The Jamaica Business Development Corporation (JDBC) will lead this charge in developing the farmers and fisherfolk. Participants will be guided through industry-specific training and hand-holding sessions on how to manage and run a business, getting their operation formalised, opening a business bank account, creating strategic business linkages, drafting a business plan, and how to access financing. One objective of the project is to move farmers and fisherfolk along the micro, small and medium-sizes enterprise (MSME) business continuum from informal to formal, from micro operators to small businesses, and eventually to medium-sized enterprises. Minister of Industry, Investment and Commerce, Hon. Audley Shaw, who gave the main address during the virtual ceremony, said the project is timely, as the coronavirus (COVID-19) pandemic has dealt a severe blow to the economy. “This project is, indeed, a timely intervention in ensuring that our post-COVID-19 recovery is strong,” he said. Mr. Shaw argued that agriculture is a most important activity in the country’s economic development, and is deserving of the benefits the project will offer. “The sector, in 2018, accounted for 7.3 per cent of gross domestic product (GDP). Nevertheless, it is characterised by a prevalence of farmers operating informally, despite their significance to rural development and the economy in general,” the Minister said. “It is estimated that approximately 43 per cent of the Jamaican economy operates informally. The challenge of addressing informality is more severe where workers in the agricultural sector are concerned, and especially for those in the fisheries subsector,” he added. For his part, Minister of Agriculture and Fisheries, Hon. Floyd Green, said the Ministry welcomes this initiative, as it will provide more opportunities for farmers and fisherfolk who now operate informally. “We know the reality, they operate in this informal space, and as such, they’re unable to access the key they need to unlock their true potential, to truly modernise and grow the agriculture and fisheries sectors,” the Minister said. “I welcome this injection by the ILO, which is truly an investment in our farmers and fisherfolk… . I see this project as a precursor for a bigger programme, and with the leadership of the JBDC,” he added. Director, ILO, Dennis Zulu, said his organisation has no doubt that the JBDC will successfully institute activities to the satisfaction of the stakeholders. He also thanked both Ministers for their commitment to the success of the project. “The ILO remains committed to continue our collaboration with the Government of Jamaica and all other stakeholders in Jamaica, to ensure that we achieve the objectives of the project as stated,” he said.

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Jamaica makes bid to boost small earnings from huge Indian market

Jamaica’s first resident diplomat to India is making the case for the strategic importance of increased trade and investment flows between the two countries on the eve of his departure to take up the post of envoy in the second most populous nation in the world, the second-largest democracy and the sixth-largest economy. Having got a feel for diplomacy as Jamaica’s ambassador to Mexico for the past two years, business development and marketing specialist Jason Hall is looking to logistics investment, the sustainable energy sector, high-end professional services outsourcing, the knowledge economy and agribusiness development as top areas for the pursuit of vastly increased trade in goods and services, as well as investments between Jamaica and India. In this focus, he is at one with his counterpart, Runsung Masakui, India’s high commissioner who took up office in Jamaica last November. WATCH: Jason Hall eyeing to boost Jamaica’s earnings from Indian market The current generally low level of trade in goods between the two countries and the gaping trade imbalance favouring the Asian nation, which now sells about US$61 million worth of goods to Jamaica each year, is a source of concern for both men charged with promoting the economic, social and political interests of their respective countries. Jamaica imports mainly pharmaceuticals, motor vehicles, iron, steel and fish products from India, and sells mainly electrical machinery and aluminium to the Asian nation. Turning the tide on Jamaica’s paltry earnings of less than US$280,000 from exports to India’s humongous market of 1.3 billion people is a motivating force for Hall; firing up the Jamaican as he prepares for his second foreign posting, he told the Financial Gleaner in an interview at the foreign ministry in New Kingston this week. “From a strategic perspective, India’s success, capacity and expertise in science and technology recommends it as a perfect partner for Jamaica to build capacity in those areas, with important application in agribusiness and agro-processing, and enhancing route to market for our farmers,” Hall said. He cited processed foods, coffee, spices, condiments, essences and black castor oil as products with great potential for increased exports to India, which recorded a gross domestic product of US$2.8 trillion in 2020. Jamaica’s new high commission to India, who takes up office later this month, is also looking forward to a take-off for his home country in global digital services from enhanced India-Jamaica relations, providing opportunities for the greater outsourcing of back-office operations of Indian companies to Jamaica in the areas of finance and legal services, among others. In this regard, Hall views Jamaica’s nearshore location to the large Indian target market of the United States and the island’s high-quality English language proficiency as a distinct asset for increased high-value knowledge processing outsourcing business. “Currently, there is business processing outsourcing, but we have a tremendous opportunity here for Jamaica to move up the value chain. Additionally, there is potential to increase our capacity in medicine, pharmaceuticals and healthcare delivery,” the diplomat said. In his view, there is also scope for significant knowledge transfer in the area of solar energy development with India’s proven track in the area and its hosting of the International Solar Alliance, of which Jamaica is a member. Increased cooperation in tertiary education delivery and scientific knowledge transfer from India to Jamaica, through educational collaboration, are also on the cards. The promotion of Jamaica’s special economic zone legislation and infrastructure will be on the agenda for Hall, who is also accredited to Singapore, Sri Lanka, Malaysia and Nepal. In this regard, he brings to the job several years’ experience in investment and trade promotions as the regional manager for the Caribbean and Latin America for Jamaica’s state investment and trade promotions agency, Jampro. He also marketed Jamaica as deputy director for cruise shipping, attractions and events at the Jamaica Tourist Board, JTB; and was Caribbean marketing and business development manager for food manufacturer and distributor Nestlé. Hall speaks five languages, including French, Portuguese, Spanish and siSwati, spoken by the Swazi people of southern Africa. Not to be overlooked, he said, is the export of Jamaica’s cultural content, and a collaborative framework involving Jampro, JTB, other state agencies and private-sector groups is said to already be in place to carry forward this and other trade and investment promotions activities. Hall pointed to an economic diplomacy programme out of Jampro and the Jamaica House cultural and manufactured products and services showcase already pioneered by the JTB, as areas in which he has worked and on which he will be drawing heavily as Jamaica’s high commissioner to India, and ambassador to other nations in the Indian subcontinent and other parts of southern Asia. In the ongoing effort to transition Jamaica from a solely goods-trading economy to being mainly a service-based economy, Hall said the opportunities presented by India in this regard are real and are being taken seriously.

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Tropical Battery powers up for expansion

Strong cash flow at the end of 2020 giving impetus to expansion exploits TROPICAL Battery has been energised for expansion mode having declared its intention to pursue a number of acquisitions in the coming months. Managing Director Alexander Melville, who made the disclosure, also announced that the company is currently seeking out partnerships for strategic alliances. He advised shareholders of the company’s Strategic 2021 Growth Plan which will be underpinned by acquisition and strategic partnerships. Melville, who has more than 26 years of industry work experience in the automotive/battery business, told shareholders in the company’s just-released 2020 annual report that, “we will be focusing on creating shareholder value through acquisitions of and partnerships with aligned profitable companies in Jamaica and across the Caribbean region”. To this end, Tropical Battery has entered into discussions with several key partners to assist in identifying suitable acquisition targets. Tropical Battery is one of Jamaica’s oldest and most trusted household brands, primarily operating in the energy storage space for more than 70 years through the sale and distribution of batteries. Based on its latest audited financial report, the company’s cash flow position, as at the end of its 2020 financial year, was very strong. In fact, the cash generated by operations was the highest on record – coming in at $312 million or a 107 per cent increase versus the $151 million generated in 2019.   HEALTHY AND STRONG CASH BALANCE As at September 30, 2020 cash and cash equivalents stood at $263 million, which represents the highest on record. “This cash and our strong balance sheet position us well to achieve our growth objectives into new product lines and markets/countries as well as fund strategic acquisitions,” Melville explained. Total equity was up 34.4 per cent, moving from $547 million at the end of fiscal year 2019 to $735 million as at September 30, 2020. This increase was driven mainly through increases in retained earnings and cash received from the initial public offering last year.   EXPANSION PLANS ALREADY IN MOTION Foremost in the expansion plans is the drive currently underway to repackage and expand the company’s Tropical lubricant line to include primary batteries, bike batteries and freezetone engine coolant. This is in addition to several other brands in the pipeline like Hankook and Laufenn tyre brands, which are coming soon. Tropical Battery is also expanding parking at its number one retail store while its sister company, Diverze Properties, is in the process of purchasing land and building directly beside its Grove Road branch in Kingston. The decision to expand the parking facility is based on the fact that its number one customer complaint is the lack of sufficient parking space. In order to solve this problem, the decision was taken to more than double the existing parking facility. Further expansion currently in the works for Tropical Battery is in the renewable energy (lithium-ion battery) area wherein it has brought in its first container of lithium-ion batteries valued at over US$300,000. As much as 70 per cent of the shipment was sold in the first 60 days. As part of the expansion plans, Tropical Battery is restructuring some of its retail stores to include solar panel displays and new lithium-ion batteries.

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