News

MONTEGO BAY, St James — With more than 2,000 acres of land needed to develop four special economic zones (SEZs) within the next 24 months, CEO of the Special Economic Zone Authority (SEZA) Kelli-Dawn Hamilton on Thursday urged realtors to help her and her team identify suitable locations across the country. “We need the realtors to help us to connect the properties. We have the business opportunities, we have the potential projects. We have access, through entities like Jampro, to investors; we just need the land to do it. We all need to work together to realise the opportunity that the special economic zone creates,” she said. She was speaking with the Jamaica Observer after a session on ‘Exploring Opportunities in Commercial Real Estate’ during the first day of International Real Estate Conference (IREC) 2024 being held at the Montego Bay Convention Centre in St James. It was a message she had delivered to realtors earlier as a panellist during the discussion. According to Hamilton, the SEZA is working to break ground for four new projects within the next 18 months to two years, saying that the feasibility studies are now being developed. “They’re all new. We want to create a pharmaceutical special economic zone. The other one is a Silicon Valley-type zone where we’re looking at creating a global digital services large-scale municipality. Then we’re looking at capitalising on our success and experience in film. So we want to do a media city where we’re building out film production facilities, training centres, where we’re doing merchandising, so manufacturing could be encompassed there as well,” she explained. “And then, of course, sport. We want to create a zone where persons can come in, train when they have cold weather in their country of origin…We want to develop a stadium as well, merchandising, manufacturing facilities, research and all the things that go into developing a sporting ecosystem,” Hamilton added. They need 1,082 acres of land for the pharma SEZ, between 300 and 400 acres for the one dedicated to global digital services and sports, and another 412 acres for the media city. She stressed that there were also opportunities for smaller sized lots. “When you look at the landscape of Jamaica now it is changing. Literally, the skyline has changed. You’re seeing a lot of commercial properties going up, residential as well. So what we’re saying to persons who are doing commercial, check the authority, check what incentives are available to you as you create these opportunities for businesses. We want to work with you as well,” the SEZA CEO urged. “So we’re really here today selling the opportunity for our concept projects, but also for people who may not have 300 or 400 acres of land,” she added. In her pitch to realtors, she reminded them of the benefits their clients could access by being part of an SEZ. “For the developer who’s building out, their corporate income tax rate on their rental income is zero per cent. For the occupant who is operating within the special economic zone, their corporate income tax rate is 12.5 per cent and that goes down to 7.75 per cent. They pay zero per cent, GCT, and they pay zero per cent on their duty,” said Hamilton. According to her numbers, 145 companies in 195 locations are now operating under Jamaica’s SEZ regime. “There is no one place that companies have to be located to be in an SEZ, they can be anywhere; and we’re here to facilitate business,” said Hamilton. IREC 2024 continues on Friday with sessions that will look at real estate as a catalyst for growth, real estate success stories and the future of real estate in Jamaica. A free-to-enter Home Expo component begins on Friday as well and continues into Saturday. In its second staging, the conference is being hosted by the Realtors Association of Jamaica after a five-year hiatus after it debuted in 2019. The event has brought together major players from the sector and will also include closed door sessions, for realtors only, which will explore topics including training and certification.

The Full Story Businesses looking to optimise their supply chain operations and expand their global reach are being urged to take advantage of benefits available through the Special Economic Zone (SEZ) regime. The Zones, which are governed by the Jamaica Special Economic Zone Authority (JSEZA), are designated areas across the country that offer special tax benefits and fiscal incentives, regulations and infrastructure to attract foreign and domestic business. The objective is to stimulate economic growth, boost employment, and encourage innovation by providing an environment conducive to business expansion. As of October 2023, there were 190 SEZ locations across the island, comprising 80 developers, 68 occupants and 42 Zone users. JSEZA is promoting the SEZs as the ideal choice for business and will be conducting a series of tours across several zones to highlight their achievements and capacity to provide investment facilitation services. Speaking with JIS News, Director of Investment Promotions and Communication, JSEZA, Kevon Farquharson, points out that the SEZs are a key part of Government’s mission to position Jamaica as a strategic hub for global trade and commerce. He notes that “While the JSEZA focuses on developing several other industries, special emphasis is being placed on logistics because it is one of the major activities that contribute significantly to the SEZ regime.” Director, Investment Promotions and Communication at the Jamaica Special Economic Zone Authority, Kevon Farquharson. Mr. Farquharson says that logistics are crucial for facilitating the efficient import and export of products and services, enabling firms to effectively engage in international commerce. One such logistics service provider is Kingston Freeport Terminal Limited (KFTL), which facilitates the movement of containerised cargo on and off the port for the transshipment and domestic markets. “We are predominantly a transshipment hub, which accounts for around 90 per cent of our business, but also the main gateway for full containerised cargo for the domestic market, which accounts for the remaining 10 per cent,” KFTL’s Chief Financial Officer (CFO), Brandon Lee, tells JIS News. Chief Financial Officer (CFO) at the Kingston Freeport Terminal Limited, Brandon Lee. Having joined the SEZ community in 2020, KFTL has come to benefit from several opportunities provided under the SEZ regime. “What the special economic zone provides for us is what I like to call financial benefits, allowing a company like KFTL to compete with these other regional or international companies. Fortunately for us, through the fruitful partnership between the entities, we have been able to capitalise on most, if not all, the benefits which the SEZ provides,” Mr. Lee shares. These include a reduced rate on Corporate Income Tax, exemption of Customs Duties on imported items and zero per cent General Consumption Tax (GCT) on goods and services purchased locally for use within the zones. The CFO says that “while KFTL is [situated] in a good geographic location, we do have competition in the region… and these benefits allow us to compete with other players”. Detailing the company’s experience since becoming an SEZ, Mr. Lee shares: “We have had a good working relationship with the JSEZA. The team has certainly taken a hands-on approach in getting the onboarding done efficiently and if there are any queries, they are always available to answer.” Furthermore, a robust regulatory framework within SEZs has been established to ensure a transparent and predictable business environment. This regulatory framework not only provides a sense of security for logistics companies, but a sense of satisfaction knowing that “we can reap the benefits outlined in the Act while having our queries addressed in a timely manner”, Mr. Lee told JIS News.

The Full Story The Jamaica Special Economic Zone Authority (JSEZA) has concluded a series of highly successful ‘SEZ Unplugged’ training workshops, which the entity organised as part of efforts to foster growth and development within special economic zones (SEZs). The workshops, which were held in February and early March, brought together industry experts, business leaders and stakeholders from various sectors to delve into key topics related to SEZs, investment promotion, regulatory compliance and sustainable business practices. In alignment with JSEZA’s mission to facilitate investment and drive innovation, these workshops served as pivotal platforms for knowledge exchange, networking and capacity building. Approximately 70 participants were equipped with valuable insights, tools and strategies essential for navigating the dynamic business environment and maximising the potential of SEZs. Delivering remarks during the final workshop at the Courtyard by Marriott Kingston Hotel on March 13, Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, underscored the importance of the forums, noting that “engaging with our SEZ partners is paramount.” He acknowledged that the March 13 workshop, which was held under the theme: ‘A Roadmap to Maximising Your Investments’, is a key component in shaping a better future for investors and government partners. “As Jamaica changes, we have to ensure that we’ve prepared the economy to change accordingly,” Senator Hill pointed out. He rated the previous sessions as being “successful”, pointing out that they aided in improving collaborations with a myriad of professional bodies playing major roles in the SEZ regime. “The workshops have also provided credible points of contact for prospective investors seeking information about and assistance with the SEZ application requirements and to become, indirectly, ambassadors for the SEZ regime,” Minister Hill added. Following the March 13 session’s conclusion, all attendees received certificates of participation, while others were awarded SEZ certification. As the Ministry and the JSEZA continue to take a proactive approach to addressing the evolving needs of businesses and investors, Minister Hill assured that “we’re here to help you by making it easier to do business in Jamaica [through the] implementation of new systems and processes to increase productivity.”

The Government will be seeking to increase the number of transactions that can be processed via the Jamaica Business Gateway by the end of June this year to further improve ease of doing business. Governor-General Sir Patrick Allen, while delivering the Throne Speech during the 2024/25 ceremonial opening of Parliament at Gordon House, on Thursday, February 15, disclosed that 29 new transactions will be added. The Jamaica Business Gateway, the premier business-to-government (B2G) transaction platform, was launched in May 2023 with 14 government processes, thereby increasing the ease of doing business and productivity. US$100m spent on special economic zones Turning to the subject of productivity, the governor general said more than US$100 million was invested through the special economic zone regime in the development of seven special economic zones, which have facilitated employment for over 3,000 persons.   Minister of Industry Investment and Commerce, Senator Aubyn Hill (right), and CEO, Jamaica Special Economic Zone Authority (JSEZA), Kelli-Dawn Hamilton (centre), listen as CEO of German Ship Repair Jamaica (GSRJ) Limited, Colonel Martin Rickman, explains the operations of the GSRJ’s 235 metre-long Panamax-size floating dry dock, JAM-DOCK-1. (Photo: JIS)   “The German Ship Repair Jamaica Limited, a designated Special Economic Zone (SEZ), deserves special mention as it welcomed its inaugural floating dock (JAM-DOCK 1) into the Kingston Harbour in August 2023. This monumental milestone marked the dawn of a new era in Jamaica’s maritime industry, where vessels, both local and international, will have access to world-class repair facilities on our shores,” he noted. Shift to high-value KPO The governor general said the Government continues to prioritise increasing productivity through various processes and legislative reforms to enable economic growth, and to foster a more peaceful, productive, and prosperous society. During the Financial Year 2023/2024, the Government continued the implementation of the Global Digital Services Strategy, geared towards supporting Jamaica’s shift to high-value knowledge process outsourcing. In 2023, the project graduated 590 apprentices trained in supervisory management and leadership skills. One thousand, one hundred and ninety-four apprentices are expected to graduate in 2024 to significantly enhance the sector, which currently employs approximately 62,000 persons.

MANDEVILLE, Manchester — Leaders in this south-central town are optimistic that Mandeville will soon have a new commercial belt as the vision of a leading businessman is taking shape on the outskirts of the town centre at Bloomfield. The Kenneth “Skeng Don” Black-led Bloomfield business process outsourcing (BPO) complex, which is estimated to cost $1.2 billion, is being funded by the Development Bank of Jamaica and National Commercial Bank and is being constructed by China Harbour Engineering Company (CHEC) and expected to be completed within the next six months. Black was last Friday presented with a special economic zone certificate during a ceremony. Chief executive officer of the Jamaica Special Economic Zone Authority Kelli-Dawn Hamilton explained that Bloomfield BPO is one of 191 special economic zones across the country benefiting from incentives. “They don’t pay duties for items imported and they don’t pay GCT [General Consumption Tax]. Our vision is to replicate models such as this across the island,” said Hamilton. In the meantime, chairman of the Manchester Municipal Corporation Donovan Mitchell said the municipality is anticipating more investments in Mandeville. “When we look at this facility here we are looking at jobs and more jobs, because he [Black] has not only built this property here. We look at what happened on Ward Avenue to see that property there to see where thousands of young people are working,” said Mitchell. “I am talking to some businesspeople to ensure that they indeed come to Mandeville. We are in dialogue with NEPA [National Environment and Planning Agency] to extend the commercial belt of Mandeville so along this roadway one lot is on both sides. We are hoping to have it certified as a commercial belt…” added Mitchell. He said real estate is booming in Mandeville and investors are welcome. “When you look at this property and what is happening in Mandeville and the amount of building plans we have signed off on real estate in Mandeville is at its best. Invite your friends. Invite other companies to come to Mandeville to do business and as you come to do business we will try in every way whatsoever to make sure that your plans and everything that you put in it is expedited, because we don’t believe in waiting on some people who don’t believe in building. “Some people like to have a lot of land and put them down for some reason whatsoever. One day they wake up and they see some people living on them…” said Mitchell. The mayor was supported by the Member of Parliament for Manchester Central Rhoda Crawford who commended Black for his investment, calling him an “ambassador”. “Because he has for many years been contributing significantly to the growth and development of Mandeville,” she said, while pointing to partnerships between the Government and private sector. “The Government of Jamaica, that I am proud to be a part of, takes very seriously the public-private partnership and this is a perfect example of one. We are serious about human capital development and putting in the infrastructure,” said Crawford. She said with Mandeville benefiting from investments it will soon be able to compete with Montego Bay and Kingston. “We want to move Mandeville forward. For too long Mandeville has not been realising her fullest potential,” said Crawford. Meanwhile, parliamentarian and attorney-at-law Phillip Paulwell said the BPO facility has vast potential to attract investments in computer software development, robotics, and logistics. “… Mandeville is becoming a major centre for human resource development. We are seeing the capacity being developed here. But I think with these spaces available the aim towards greater value-added production will now have to excite youngsters, especially in areas like software development. I don’t believe that there is sufficient focus on software development. This is going to be a facility that is going to have the full range of technologies available,” he said. He reiterated his call for special permits to be granted to commercial zones to generate and distribute electricity. “These businesses have to compete. These are international global businesses for the export market and the price of electricity is too high… I had put forward to the Government the ability for these enterprises in special economic zones to be afforded their own electricity licenses so that they can generate their own electricity at a fraction of the cost… to all their tenants,” said Paulwell.   Source:https://www.jamaicaobserver.com/2024/02/08/special-economic-zone-mandeville/

Durrant Pate/ Contributor The Shipping Association of Jamaica (SAJ) held discussions last Friday with the European Union (EU) and European Investment Bank regarding building out the island’s resilient logistics hub in the Port of Kingston. The discussions, which also included the Ministry of Industry Investment and Commerce and several local public and private sector partners, centred around the EU’s potential support to assist Jamaica in attracting investments to its emerging logistic hub. The goal is to boost Jamaica’s competitiveness, increase its maritime connectivity, and establish greater linkages with global partners by exploring business opportunities for Jamaica’s growing logistics industry. Under the exploratory considerations, the EU through its Global Gateway Agenda would offer a financial package to redevelop the infrastructure in Newport West and generally upgrade the area into a world-class logistics facility. As a first step, prior to possible further investment, technical assistance and financial support will develop a business model to establish Newport West as a competitive and resilient Economic Zone and design a system to resolve the regular flooding which occurs from Tinson Pen to Marcus Garvey Drive and Newport West. This would contribute to reducing significant direct and indirect operating costs estimated by the National Works Agency at US$17 million per annum. Stakeholders who were present at the meeting have expressed a willingness to partner with the EU to make the investments necessary to develop the Newport West Economic Zone. Caption: Following a tour of German Ship Repair Jamaica’s dry dock facilities, (l-r) President of the Shipping Association of Jamaica (SAJ), Corah Ann Robertson-Sylvester; MIIC Minister Senator the Hon. Aubyn Hill; Jamaica Producers Group chairman Charles Johnston; Regional Director of the European Investment Bank, Yves Ferreira; and Felix Fernandez Shaw, director of INTPA Latin America and the Caribbean, address stakeholders during a consultation meeting for Jamaica’s Logistics Hub on Friday, January 26, 2024. Comprehensive logistics hub plan  The feasibility studies will put them in a position to unlock the required public and private investment. The EU indicated an interest in supporting the objective to craft a comprehensive logistics hub plan for several economic zones already under consideration in Kingston. The EU delegation participated in a comprehensive morning of activities beginning with a tour of the German Ship Repair (GSRJ) Jamaica facility at Harbour Head in Kingston. The itinerary also included visits to both port terminals, Kingston Freeport Terminal Limited (KFTL) and Kingston Wharves Limited (KWL), including the KWL Global Auto Logistics Centre. (From l-r)  President of the Shipping Association of Jamaica (SAJ), Corah Ann Robertson-Sylvester, shares during a consultation meeting with the European Union, while Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, and Jamaica Producers Group chairman, Charles Johnston, listen during a press briefing by the SAJ, MIIC and the European Union at the Kingston Wharves Limited’s corporate office in Newport West on Friday, January 26, 2024.   Stakeholders used the opportunity to discuss the SAJ and the government’s vision for the establishment of Jamaica as a competitive Logistics Hub.  Other SAJ collaborators present included KWL, KFTL, the Ministry of Industry, Investment and Commerce; Jamaica Promotions Corporation and the Jamaica Special Economic Zone Authority. The EU’s director of Latin America and the Caribbean, Felix Fernandez-Shaw, explained: “The EU is working to become a significant partner for Jamaica in its digital transition and its adaptation to Climate Change, notably through the production of greener and cheaper alternative energy”. He added: “The EU also wants to be part of the crucial strategy of positioning Jamaica as a logistic hub, as we believe that there is a huge untapped niche for growth here. The meeting today brought together major stakeholders that can make the change is a crucial first step in that direction.” Minister of Industry, Investment and Commerce Senator Aubyn Hill, emphasised that “the establishment of Jamaica as a Caribbean regional Logistics Hub will enhance our global trade position, especially increasing exports. The prospective EU technical assistance will create the kind of logistics hub, which will serve as a catalyst for economic growth.  Increased efficiency and productivity in port operations, as demonstrated by the visits to KFTL and KWL, position Jamaica to attract greater investments and create employment opportunities for our talented Jamaican people.” SAJ President Corah Ann Robertson-Sylvester welcomed the engagement with the Government and the EU, indicating her organisation’s excitement at the prospect of working together to achieve an objective long promoted by the shipping group.   Source:https://our.today/eu-assists-jamaica-to-position-port-of-kingston-for-investments-as-logistics-hub/#google_vignette