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Transition from FZ to SEZ

FREQUENTLY ASKED QUESTIONS

  1. Why should my company transition?

Answer: Existing Free Zone companies are required to transition to the SEZ regime based on the Special Economic Zone Act. Since the passage of the SEZ Act and the repeal of the Jamaica Export Free Zone Act (August 2016) Free Zone companies’ fiscal benefits were automatically grandfathered. This grandfathering period ends on December 31, 2019.

  1. What is the transition timeline?

Answer: July 31, 2019 – All completed transition applications should be submitted

December 31, 2019 – Free Zone fiscal benefits end. If companies have not transition by this time, they have upon till June 2020 but they will not receive any incentives during this period.

  1. When should I submit my documents?

Answer: Transition applications should be submitted by July 31, 2019.

  1. What if I wish to retain my grandfathered free zone benefits until December 31, 2019?

Answer: You may retain your grandfathered Free Zone fiscal benefits until such time, but you are required to submit your transition application to the Authority by July 31, 2019. In this case your SEZ designation will not come into effect until January 1, 2020.

N.B. If your company is currently expanding, relocating or changing business activities, then you are required to transition now.

If your company is currently in breach of the SEZ Act then you will need to transition immediately.

  1. As an Occupant who do we submit our applications to?

Answer: The Occupant application is submitted through the Developer.

  1. When we transition will the occupant get a Gazette from the Authority or from the Developer?

Answer: In the Special Economic Zone regime, it is the Operating Certificate that gives a company access to the SEZ fiscal benefits. While a company will get a gazette which will come from the Authority to the Developer and then to you it is not what Jamaica Customs Agency, Tax Administration of Jamaica and other relevant organisations will use to give you your benefits. It is the operating certificate.

  1. What are the renewal requirements?

Answer: The Operating Certificate is renewed annually. The renewal process will require applicants to complete the renewal process, outlined below.

  1. What is the cost to transition?

Answer:

The transition application fee is as follows:

  • Developer (Single Entity) –              US$3,000.00
  • Occupant                             –              US$1,500.00
  • Zone User                            –              US$100.00

This payment is due with the submission of your application. This may be done via wire transfer or manager’s cheque payable to the Jamaica Special Economic Zone Authority.

  1. If my developer doesn’t decide to transition until the last minute how will I as a transitioning occupant be affected?

Answer: The transition of the Occupant is affected by the transition of the Developer. The Developer must transition before the Occupant is able to do so. In order to ensure that business operations are not adversely affected we will facilitate discussions with Developers and Occupants in order to ensure that all entities are clear on the process.

Special Economic Zone Designation

  1. Is it possible to have a Single Entity Developer and a Developer on the same land?

Answer: No. The Single Entity Developer assumes the roles and responsibilities of a Developer, the Single Entity land and company are given designation. Recall that the Developer provides commercial SEZ real estate for rental to Occupants, this is a different and separate relationship from that which is had with the Single Entity. Also note that one parcel of land cannot have two Developers assigned to it.

 

  1. If persons want to transition from Approved Enterprise to Developer status, will they be required to submit a new application?

Answer: Yes, the company will be required to submit a new SEZ Developer application.

 

  1. Changing status – can an entity move from a single entity to a developer.

Answer: This question requires exploration of the specific business case. Remember that the Developer is, in effect, the landlord and therefore should only be engaged in providing commercial real estate as opposed to carrying out any other commercial activities. A Single Entity Developer is usual an operator doing activities such as such as manufacturing, business process outsourcing or logistics.

 

  1. In the case of relocation or expansion do they need to reapply?

Answer: There is a relocation and expansion process, so it is not a reapplication but an application to relocate or expand.

Sub-concession Agreement

  1. What is a sub-concession agreement?

Answer: The purpose of this Agreement is to grant to the Occupant the right to maintain and operate the Business within the SEZ, for a certain duration of years under the terms and conditions described in both this Agreement and the Occupant Lease Agreement.

 

Zone Users

  1. Who are Zone Users?

Answer: Zone Users are companies that are located within the SEZ but do not have access to the SEZ incentives.

 

  1. What are the benefits provided for Zone Users?

Answer: The Zone User does not have access to the SEZ incentives, but the benefit from being in a strategic location, i.e. access to markets.

  1. Is it a requirement by the Authority for Zone Users to be a registered company?

Answer: Yes. A Zone User must be a company registered within Jamaica.

 

Reporting & Monitoring Requirements

 

  1. How does the Developer monitor activities being conducted by Occupants?

Answer: This is done via the Occupant reporting requirements and the Developers own internal procedures as it relates to monitoring of their Zone in keeping with the Developer’s SEZ responsibilities.

 

Tax Filing

  1. How do SEZs file income taxes?

Answer: The process is completed online.

Confidentiality

  1. How will JSEZA ensure that my documents are kept confidential?

Answer: As a part of the Government service we are bound by the strictures of confidentiality within the SEZ Act as well as per our staff orders.

Special Economic Zones and Customs

  1. If an entity wishes to dispose of goods and wishes to sell these items to staff at a reduced price, are Custom duties payable?

Answer: All applicable duties must be paid.  Be guided by Section 23 of the Free Zone Act

 

  1. What would happen to goods that are in the bonded warehouse after December 31, 2019?

Answer: A submission is to be made to Customs by the entity setting out the situation. A detail account of the goods would have to be taken by my Officers and the relevant assessment made.  Good can be exported. Goods that are unfit for sale or consumption, would have to be disposed of by the Entity.  Where items of a nature can be transferred to the Queen’s Warehouse we could examine that possibility.

 

  1. Will all goods held in the warehouse and in transit incur tax and duties after January 1, 2020?

Answer: Goods held in the warehouse would be treated in accordance with question 2 above.  As it relates to goods in transit the Minister will have to give directives accordingly

The Jamaica Special Economic Zone Occupant Request Guide 2018.

The Jamaica Special Economic Zone Authority understands the importance of our stakeholder’s commercial transaction and seeks to address them with urgency. The Authority aims to provide quality services to clients by continuously reviewing our processes improving efficiency.

  1. The Clients’ Request Process is initiated by the client or entity that intends to make request (in relation to section 5).
  2. The request should be sent by the Occupant in the form of a formal letter to the SEZ Developer at least 5 days before approval is required. The letter should include an approval section for the Developer to give their remarks. Upon receipt of the request, the Developer should communicate its approval to the Authority, after which the Authority conduct its review and issues a “ No Objection” or “ an Objection”
  3. This document should be sent in both soft and hard copy. The soft copy should be sent to requests@jseza.com and copy Kevon Farquharson< kfarquharson@jseza.com>. The hard copy should be sent to the Authority.
  4. The authority will review documents submitted and if there is no issue then the Authority then issues a “no objection” to the request.
  5. The “No objection” is done in the form of a letter which will be sent to all relevant stakeholders (JCA) to inform them of the decision.
  6. The letter, after being approved by the Developer, should be sent to the Authority for the final review.
  7. After revision is made by the Authority, a “no objection” is done in the form of a letter, which will be sent to Jamaica Customs and the relevant organizations that are required to complete the process.
  8. Based on the request ( request options: A,B,C and D below) that is submitted by the Occupant, the letter or document  should outline or include the following :
  1. Release of  goods:

Specific request letter “Release of Subject Matter”:

The letter should state the specific permission the client chooses “Release of goods”. The letter should also state the location from which the Occupant will be releasing the good and the location it will be release to and the territory.

  1. Commercial invoice from suppliers
  • Shipping documents (Arrival notice/ Bill of Lading)
  1. Stock Balance (if requested)-if items being released are already in the warehouse.

N.B.: Special steps in this process:

  1. The necessary customs entry (IM4) will then be prepared by a broker and lodged for ‘export’/transfer into the domestic customs territory
  2. You will be required to provide the original importation document (IM9) for reference
  • Duties become payable by the original importer and the items to be transferred must be physically verified by a JCA official representative
  • The items can then be moved to the intended recipient
  1. Please direct the request along with the detailed inventory to:
    1. Disposal of Goods, Items, Material or Equipment.
  1. Specific request letter “Disposal of Subject Matter”

Letter should state the reason for disposal.

  1. Detail inventory of items to be disposed
  • Method of disposal, location and date of disposal.
  1. The relevant invoices will be required to provide the JCA with the original importation document (IM9) for reference , these documents will be required for customs visit, ensure copy is available at the point of disposal.
  2. If all obligations are honored then the Authority then issues and “No objection” to the JCA.

Specific steps for a disposal request.

  1. The JCA then executes their role in the process,  where there are no issues, the items are inspected on site by a JCA internal audit team
  • Arrangements can then be made with your disposal contractors
  • The items are then crushed on site and removed under customs supervision to the relevant dump site
  1. No duties are applicable
    1. Importation and Movement of Material(s) or Equipment.
      1. Specific request letter “Importation of  ”
      2. The letter should state the specific permission the client chooses “RE: Importation of Materials and Equipment for construction of … in …” The letter should also state the specific material for the construction and the Gazetted Notice# and date as well as Location for the construction activities.
  • A Quantity Surveyor’s approval.
  1. Clear description of the material and drawings to show the specifications of the project.
  2. The letter should be supported by the invoices for the material.
  1. Change of Name or Address
    1. Specific request letter “ Name  Change”
    2. The letter should outline the reason for the change, the old name and the new name.
  • Approved documentations to support the changes made by the company.

Address Change

  1. Specific request letter “ Name  Change”
  2. The letter should outline the reason for the change, the old address and the new address.
  • Approved documentation to support the change

We welcome your feedback to further improve our processes as client relationship is of outmost importance to the Authority. Should you require additional information or clarification also feel free to contact us @ Tel: 876-619-7392.

 

Transition Application Forms
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More investors showing interest in Special Economic Zone

THE Jamaica Special Economic Zone Authority (JSEZA) is reporting heightening investor/stakeholder interest in operating within the country’s Special Economic Zones (SEZs), which are key components of the Government’s Logistics Hub Initiative (LHI).

Dr Eric Deans, chief executive officer of the JSEZA, which is spearheading the initiative’s development, told JIS News that the authority has 31 SEZ applications for established activities such as business process outsourcing, manufacturing, and logistics — pointing out that a significant number of the applicants are micro, small and medium-sized enterprises (MSMEs).

“We are also seeing interest from a wide cross section of industries in new and emerging industries, particularly in the logistics and maritime sectors, which are deemed attractive to operate in Jamaica,” Dr Dean noted.

He pointed out that a JSEZA market analysis identified pharmaceuticals, higher-end agro-processing, electronics, medical device, auto parts, and motor vehicle assembly among the diverse set of additional activities for consideration.

Noting that there is local and foreign interest in pursuing activities in these new industries, he attributes this to new incentives being offered under the SEZ Act that “investors are taking advantage of”, coupled with Jamaica’s strategic location in the Caribbean.

The JSEZA’s director of investor relations and communications, Kelli-Dawn Hamilton said the SEZ incentive regime includes an attractive corporate income tax rate of 12.5 per cent, which she said can be further reduced to 7.75 per cent with the application of various promotional tax credits, compared to 25 per cent in the regular domestic economy.

Additionally, she said SEZ companies are able to import items at the duty-free rate.

Value-Added Logistics Will Drive Growth – Dr. Deans

The Jamaica Special Economic Zone Authority (JSEZA) is reporting heightening investor/stakeholder interest in operating in the country’s Special Economic Zones (SEZs), which are key components of the Government’s Logistics Hub Initiative (LHI).

Chief Executive Officer (CEO) of the JSEZA, which is spearheading the Initiative’s development, Dr. Eric Deans, tells JIS News that the Authority has 31 SEZ applications for established activities such as business process outsourcing, manufacturing and logistics, pointing out that a significant number of the applicants are micro, small and medium-sized enterprises (MSMEs).

“We are also seeing interest from a wide cross section of industries in new and emerging industries, particularly in the logistics and maritime sectors, which are deemed attractive to operate in Jamaica,” Dr. Dean notes.

Dr. Deans points out that a JSEZA market analysis identifies pharmaceuticals; higher-end agro-processing; electronics; medical device; auto parts; and motor vehicle assembly among the diverse set of additional activities for consideration.

Noting that there is local and foreign interest in pursuing activities in these new industries, he attributes this to new incentives being offered under the SEZ Act that “investors are taking advantage of”, coupled with Jamaica’s strategic location in the Caribbean.

The JSEZA’s Director of Investor Relations and Communications, Kelli-Dawn Hamilton, tells JIS News that the SEZ incentive regime includes an attractive corporate income tax rate of 12.5 per cent, which she says can be further reduced to 7.75 per cent with the application of various promotional tax credits, compared to 25 per cent in the regular domestic economy.

Additionally, she says SEZ companies are able to import items at the duty-free rate.

Mrs. Hamilton also emphasises the importance of the Authority’s inclusion of the general economy in the engagements embarked on.

“So through the regime, we have created an incentive framework that allows persons who purchase goods and services in the domestic economy to pay zero per cent general consumption tax, which is a huge win for the investor and for the local economy because it now means that it is more attractive to purchase goods locally,” she states.

The Director also points out that the Authority is keen on creating linkages with domestic suppliers. As such, she says they have been advancing work to create a policy that facilitates a linkage programme, “which sees us connecting local suppliers with investors”.

She further tells JIS News that the Authority is developing an MSME Policy, pointing out that the Special Economic Zone Act stipulates the development of such an instrument.

“We recognise that our MSMEs are central to moving our economy… and so we must carve out a special regime for these players… and it is something that we are actively working on with a number of stakeholders,” Mrs. Hamilton says.

She emphasises that the Authority is implementing a regime that is adaptable and responsive to the market, “while maintaining our role as regulators of the free zone/SEZ space”.

“Our processes continue to be consultative (because) we believe that we must be listening to our clients. But we take our role as regulators very seriously, because there are certain rules that entities must adhere to. We see our SEZ brands as being flag-bearers for the country and for business in Jamaica, and we, therefore, expect that they must be operating at a certain level,” Mrs. Hamilton states.

In emphasising the importance of protecting brand Jamaica, if the country’s development is to be further advanced, she says the Authority “will continue to push that and work with our stakeholders to ensure that the regime achieves its intended purpose”.

JISCO Looking for Partners in Industrial Park and SEZ

The Chinese company, Jiuquan Iron and Steel (Group) Company Limited (JISCO) is looking at possible joint venture Jamaican partners for Chinese companies that will be investing in the Industrial Park and Special Economic Zone (SEZ) in Nain, St. Elizabeth.

The project comprises an already approved US$3 billion investment by JISCO in expanding their refinery and post operations and a projected US$3 billion dollar development in the Industrial Park and SEZ.

Speaking with JIS News, at the 46th staging of Expo Jamaica at the National Indoor Sports Centre on April 20, Minister without Portfolio in the Office of the Prime Minister, the Hon. Michael Henry said the investment will present numerous opportunities for the local manufacturing sector.

“Here is an opportunity for (JISCO) to look at where we are as a country, where the opportunities exist and where we recognize that our market is the world. Come and look at what exists, come and meet the businesses that are here,” he said.

“It is also an opportunity to encourage Jamaican businesses to equally see what are the opportunities, and how you can expand and whether you want to relocate to an industrial park, an SEZ and how that…helps your growth and development,” he added.

While at the Expo, Minister Henry, along with Chairman of JISCO, Chen Chunming; Project Manager, Li Fang; and Assistant Managing Director, Sun Jing, toured several booths.

Expo Jamaica is being held at the National Arena and the National Indoor Sports Centre from April 19 to 22.

Under the theme: ‘Advancing Breakthroughs’, the expo is being hosted by the newly formed Jamaica Manufacturers and Exporters Association, in collaboration with JAMPRO.

JSEZA Hunts Funding For Economic Zone Investments

​The fairly newly minted Jamaica Special Economic Zone Authority, JSEZA, is in the international market to tap billions of dollars in multilateral development financing for local businesses it is trying the lure into setting up mega enterprises in stand-alone economic zones.

It is also celebrating the more than $3 billion in local and international investments it has attracted since the special economic zone regime was formalised with the promulgation of the Special Economic Zones Act two years ago.

Chief Executive Officer Eric Deans says his organisation is now in talks with funding agencies, including the Caribbean Development Bank, CDB, and International Finance Corporation, the private sector funding arm of the World Bank.

“We are trying to be innovative in terms of financing. It is unlikely that we will find many persons in Jamaica with the amount of capital readily available to invest, so we are looking at creating equity funds, where a pool of funds will be created that Jamaican firms can access to allow them to participate in these types of joint ventures and use the revenues from the joint ventures to repay (the loans),” Deans told the Financial Gleaner in an interview on Wednesday.

He is expected to carry his pitch for sustainable financing for special economic zone enterprises to the CDB officials when he addresses the CDB governors conference later this month.

This is part of the push by JSEZA to rely less on foreign investments to drive the zones and to create possibilities for more local firms to take up the tax-free incentives they offer. These include no duty on goods and zero general consumption tax on electricity and telephone calls.

The JSEZA is also in talks with energy providers to introduce liquified natural gas, or LNG, as well as renewable energy to reduce energy input for prospective investors, its CEO said.

Numbers growing

Deans pointed out that there are now some 190 free zone businesses across 12 parishes operating under the old regime. JSEZA is charged with transitioning these firms to the new special economic zone regime with a statutory deadline of December 31, 2019, to do so; attract and process new applications even as it ensures the overall governance, legislative and operational framework; and regulates all entities under the SEZ architecture.

SEZs in Jamaica include technology parks such as the Barnett Tech Park in Montego Bay, several business process outsourcing operations, the Kingston Container Terminal, Kingston Wharves, Walkers-wood Caribbean Foods agro-processing business in St Ann, a petrochemical manufacturing firm located in Old Harbour in St Catherine, and the Garmex industrial and commercial operation in Kingston.

The size of existing SEZs is fairly small and one of the preoccupations of the authority now is to encourage the scaling up of future investments to the mega developments being pursued elsewhere in the world, such as in China and Singapore, that includes large commercial, industrial, residential and recreational facilities in one location.

A typical SEZ in China is said to be around 400 square kilometres, whereas Jamaica’s largest SEZ, the Kingston Free Zone, is 19 acres or 0.076 square kilometres. JSEZA sees the joint-venture model as the best way of achieving the setting up of bigger zones in Jamaica.

Mega SEZs in the pipeline ,such as the planned 1,200 acres Caymanas zone in St Catherine, the 6,000-acre Jiuquan Iron and Steel Company industrial park for Nain in St Elizabeth, as well as the talked-about 4,000-acre Vernamfield airport city in Clarendon, are intended to be of the large scale contemplated.

The investments being hunted and promoted are expected to be multibillion-dollar enterprises which would dwarf the US$400 to US$600 million a year in investments Deans noted that Jamaica has attracted over the past 10 years.

The aim is to get closer to the US$1 billion to US$4 billion per year being raked in by Jamaica’s regional competitors, including Costa Rica, Colombia, Dominican Republic and to a lesser extent, Trinidad & Tobago and emerging Cuba.

The feasibility study for Caymanas is not expected to be completed until August this year, and Vernamfield is even farther off. Deans said requests for proposals will be invited from prospective investors immediately thereafter.

The timeline for Caymanas, he said, does not represent an unusually slow movement on the long-proposed project, as the concept has been radically changed from a real estate project selling lots to an integrated township develop-ment with commercial, industrial and residential components.

Deans pointed out that the take-up of SEZ opportunities by Jamaican businesses has been among the high points of the work of the authority to date. Kelli-Dawn Hamilton, director of investor relations and communication at JSEZA, said investors and business owners have been “very vocal” in their feedback.

This response has included opposition to the initially proposed flat fee-rate structure across the board for SEZ businesses. The revised fee structure is now based on square footage and is payable by the developers of SEZ space.

Even though the SEZ legislation replacing the old free zones act was passed in 2016, it wasn’t until late last year that the companion regulations needed to give effect to the law were out in place, giving the authority and its 12 staff the mandate to operate from its 13 Waterloo Road offices in St Andrew since January last year.

Deans, who is also the chairman of the Jamaica Logistics Hub Taskforce, is regarded in some circles as the principal technical architect of Jamaica’s logistics hub initiative. He is an associate professor in logistics and supply chain sustainability at the Caribbean Maritime University, CMU, serves as executive director of the CMU’s centre for sustainable supply chains, and was at one time Jamaica’s representative to the International Maritime Organization.

He is still gung-ho on the vast potential of Jamaica logistics initiative meant to capitalise of the country’s central location in the global goods-supply route to generate industry, jobs and economic growth.

In fact, former Trade and Investment Minister Anthony Hylton appears vindicated by the early success of the initiative he was famous for having trumpeted during past People’s National Party-led administrations to some scepticism.

Kingston Wharves’ successful total logistics centre, Deans said, scaled up from its initial plan as a result of the early success of the venture, buttressed by the incentives offered under the SEZ regime.

Source: http://jamaica-gleaner.com/article/business/20180504/jseza-hunts-funding-economic-zone-investments

Dealer To Set Up Auto Parts Remanufacturing Operation In Trelawny

A company that plans to sell remanufactured auto parts beat out three others to win the JSE Pitch Room on Wednesday.

The company, called i-Card, will operate from its warehouse at Hague in Trelawny. It’s led by car dealer Gordon Baldie.

Initially, i-Card will act as a springboard to sell imported spare parts through funnelling regional orders from its unnamed partner in the Netherlands, according to its pitch. Then, in 2019, it aims to begin remanufacturing parts for a myriad of popular cars.

Baldie operates Cars To Go, a used car dealership in Montego Bay. The move would see him expanding from trading used cars to include something

that he “loves” – spare parts. Remanufacturing will allow the company to sell retrofitted used parts locally and within the region.

“It will result in saving of 40 to 60 per cent when compared with the original manufactured parts,” Baldie told the Financial Gleaner following his win.

This was the sixth instalment of the JSE Pitch Room, which has become a signature event of the annual JSE Investments & Capital Markets Conference, held in New Kingston.

Set to begin next month

i-Card was incorporated in 2015 and will begin operations in February, said Baldie. In preparation for that move, the company leased 40,000 square feet of space from the Factories Corporation of Jamaica in Trelawny. It aims to convert that lease into a mortgage having applied to purchase the land at $95 million, with closing costs, according to Dr Karl Reid, consultant and director at i-Card.

Reid is no stranger to the JSE Pitch Room. In 2016, he pitched on behalf of Federal Transformer Manufacturing & Consulting Limited, a start-up, which aimed to refurbish transformers for power utility Jamaica Public Service Company. Servicing these transformers locally would obviate the need to ship them to Canada for repairs.

Dr Reid indicated that the brains behind Federal died last year, just before finalising plans to raise funds.

The i-Card acronym translates to Inter-Caribbean Automotive Parts Remanufacture Distribution Company. The company projects in four years to earn US$18 million ($2.2 billion) in revenue per annum, of which US$10 million would comprise local sales and the remainder from regional distribution. The company also projects a profit margin of 30 per cent of sales.

Baldie, in his pitch, indicated that the company was seeking $250 million in exchange for a negotiated stake in the company. He said the funds would allow the company to pay for the property and for inventory of spare parts. The move to structure the business gained intensity over the last two years with Baldie travelling to Asia and Eastern Europe to examine best practices and to solidify deals with remanufacturers in those territories.

The company, while planning to import new and remanufactured parts initially, will itself start remanufacturing next year. i-Card received special economic zone status which, the company says, allows it to import products designated for the region without duty; while attracting duty for products destined for the local market. Baldie added that i-Card recently received its NCC certification as a registered contractor for government projects, which allows it to bid on local fleet contracts.

The pitches that i-Card beat at the JSE Pitch Room involved companies selling digital advertising, swipe cards, and children’s publishing.

source:http://jamaica-gleaner.com/article/business/20180126/dealer-set-auto-parts-remanufacturing-operation-trelawny

CONNECTING THE DOTS

The SEZ Regime

The Special Economic Zone (SEZ) regime ushers in a new era of economic growth and industry development in Jamaica. SEZ refers to designated geographical areas with special economic regulations that differ from the general trade, tax and investment rules of a country. The passing of the SEZ Regulations in Jamaica on September 2017 gives the Jamaica Special Economic Zone Authority (JSEZA) a clear structure within which to operate, to

facilitate existing Free Zone businesses and those seeking to set-up under the SEZ regime.

The SEZ Act was enacted on February 15, 2016, and came into force on August 1, 2016, effectively repealing the Jamaica Export Free Zone Act. Under the SEZ Act the Jamaica

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Logistics Hub Master Plan presented to public

The Jamaica Special Economic Zone Authority (JSEZA), in association with the Planning Institute of Jamaica, has launched the Jamaica Logistics Hub Master Plan.

Prior to the launch last Thursday, during a public session at the University of the West Indies Regional Headquarters, Mona, the master plan was presented to government ministers Audley Shaw and Dr Horace Chang, as well as Senator Aubyn Hill, executive director of the Economic Growth Council.

The JSEZA, which is housed under the Ministry of Economic Growth and Job Creation, is the government agency responsible for facilitating the development of Jamaica’s special economic zones. The master plan, designed by international consultancy Nathan Associates, in conjunction with Berger ABAM, recommends land use and infrastructure improvements as necessary for successful implementation of the Jamaica Logistics Hub Initiative, which will involve the creation of zones, the upgrading and further development of ports and

the creation of an enabling environment, allowing businesses to fully exploit Jamaica’s strategic location.

Final version to be submitted at end of month

With the Jamaica Logistics Hub Master Plan now available to the public, a final draft is to be submitted by the end of the month, following local feedback.

“The road map outlined in this report represents one of the most significant milestones in Jamaica’s modern industrial history,” said Dr Eric Deans, chief executive officer of the Jamaica Special Economic Zone Authority, during his opening remarks at, launch of the document last Thursday.

Deans said the master plan “demonstrates the link between the vision [and] the future possibilities for the Logistics Hub, and establishes the overall character, extent, and location of various land uses”.

The draft master plan outlined that, at full build-out, there will be more than 3,800 hectares of development across the island, an investment of over US$28 billion and 87,000 direct jobs.

 

Ongoing process

Deans emphasised that the development of Jamaica as a Logistics Hub will be an ongoing process. The feasibility study for the Caymanas Special Economic Zone, for example, should be concluded during 2018, followed by its development. Other projects mentioned in the draft master plan that constitute elements of the Logistics Hub, include the dredging of the shipping channel in the Kingston Harbour, private concession of the Kingston Container Terminal and the expansion of Port Esquivel.

The Planning Institute of Jamaica funded the consultancy that developed the master plan, through the Foundations for Competitiveness and Growth Project (FCGP), a US$50-million project designed to strengthen the business environment in Jamaica for private-sector development.

The World Bank provided the loan of US$50 million that funded the FCGP.

As a logistics hub, Jamaica is positioned to be the fourth node in global logistics, joining Singapore, Dubai and Rotterdam. It is expected to establish the country as a significant player in the global shipping and logistics industry, and potential investors and business interests will see themselves as being within striking distance of a market of 800 million people, including those in North America and Brazil.

The FCGP is aimed at enhancing competition in the business environment through the implementation of reforms that will improve the ease of doing business in Jamaica, as well as increase the country’s global competitiveness.

Source: http://jamaica-gleaner.com/article/news/20171120/logistics-hub-master-plan-presented-public

Logistics hub to bring employment boom

APPROXIMATELY 87,000 direct jobs are expected to be created if Jamaica’s Logistics Hub Initiative is realised, chief executive officer, Jamaica Special Economic Zone Authority Dr Eric Deans has said.

A further analysis of the multiplier effect, done by Nathan Associates, a group of economic consultants headquartered in the United States, shows that each job can potentially create five additional openings, equating to an overall 437,000 employment opportunities.

The hub is regarded as crucial to generating higher levels of sustainable economic growth, greater fiscal stability and significant job creation over the next 20 years.

Its full build-out will comprise nearly 3,900 hectares of development islandwide from over US$28 billion of projected investments.

Speaking after the launch of the 422-page Logistics Hub Master Plan and Market Analysis at the Regional Headquarters of The University recently, Dr Deans told the Jamaica Observer that the first phase of the plan has already started.

“The consultants were required to identify existing projects, and there are over $1 billion worth of projects which have already started. So phase one has commenced already; it’s well underway.

“For phase two, we’re currently doing the Caymanas project and working on the feasibility study which will be completed in June, and then we will go out to get developers and that will follow the development,” Dr Dean said, though adding that this will be driven mainly by the investors who come.

Logistics Hub initiative completed

KINGSTON, Jamaica (JIS) — Seven key strategic enablers, deemed pivotal to realising Jamaica’s Logistics Hub Initiative, have been identified for implementation by the Government.

These include: improving institutional effectiveness; instituting supportive policies, and legislative and regulatory frameworks; enhancing workforce capacity; developing efficient and productive infrastructure; providing efficient transport logistics systems; facilitating sustainable financing; and project promotion.

The enablers, which encompass 65 strategies and 105 actions, are contained in the 422-page Logistics Hub Master Plan and Market Analysis. This document will serve the developmental road map to establish Jamaica as a global logistics hub.

It was unveiled by Global Advisor for Ports and Infrastructure, Nathan Associates Inc., Dr Paul Kent, during a ceremony at the University of the West Indies Regional Headquarters in Mona, St Andrew, on Thursday.

Kent, who noted that Jamaica has a comparative advantage in logistics, said “it is just a matter of organising it in a good way.”

“You need investors [who] can come in and make quick decisions. You [also] need to…demonstrate to the world that you offer advantages and a value proposition that deserve primary consideration for relocation, investment or expansion,” he argued.

Jamaica’s Logistics Hub Initiative is regarded as pivotal to generating higher levels of sustainable economic growth, greater fiscal stability and significant job creation.
Its full build-out will comprise nearly 3,900 hectares of development islandwide from over US$28 billion of projected investments, and resulting in the creation of 87,400 direct jobs.

An analysis of the multiplier effect shows that each job can potentially create five additional openings, equating to an overall 437,000 employment opportunities.
The Government, through the Planning Institute of Jamaica, engaged Nathan Associates, a group of economic consultants headquartered in the United States, to conduct the 14-month study, c4ulminating with the masterplan’s drafting. The exercise was executed by sub-consultants – Berger ABAM.

This engagement was facilitated under World Bank loan support provided for the Administration’s Foundation for Competitiveness and Growth Project.

The master plan and market analysis will be uploaded on the Jamaica Special Economic Zone Authority’s website, where it can be viewed at www.jseza.com.