Transport and Works Minister, Robert Pickersgill (second right), is joined by Jean Yves Deillon (left) of the French Shipping Line CGM/CMA; Rosalie Donaldson, Senior Vice President of International Marketing, Port Authority of Jamaica, and David Yee Sing, Managing Director of International Shipping at a recent media breakfast hosted by the Port Authority of Jamaica, where Minister Pickersgill announced that the PAJ will invest $6.2 billion in capital projects over the next 15 months. Minister of Transport and Works, Robert Pickersgill recently announced the $3.7 billion fourth phase expansion of the Kingston Container Terminal as well as other initiatives for improvement. Below, we carry an edited version of the statement delivered by the Minister at the Press briefing in Kingston.
"THE PORT Authority, in keeping with Government's mandate in the 1970s, has been continuing the job of seeing to the development of modern port infrastructure in Jamaica. The Kingston Container Terminal (KCT) the Transshipment Port in the Port of Kingston is the principal project of that programme.
Our Terminal is a Hub operating in the region as a relay platform to facilitate the distribution of third country products worldwide. Currently, the Container Terminal, which has elevated the Port of Kingston to international recognition and a leader in the regional market, is the flagship and centrepiece of our maritime industry. From its inception, the Port has demonstrated significant potential for growth in capacity, market share, ship calls, transshipment throughput, and revenues.
The success it has enjoyed can be attributed firstly to Jamaica's strategic geographical location on both the North/South and East/West shipping axes a natural advantage being exploited. Secondly, the Port Authority has pursued a policy of ongoing expansion and upgrading of infrastructure and equipment. This has embodied the introduction of advanced technology, in keeping with the international trends in the industry, which is characterised by fierce competition driven by globalisation. Since the late 1980s, the Central American and Caribbean region has experienced one of the fastest growth rates in port capacity, concentrated mainly on transshipment activities. Therefore, the regional market is also fiercely competitive, owing to the numerous options available to the shipping lines.
For Kingston to maintain its leading position in the region, we must not only provide efficient service at competitive cost, but must also be in a position to provide additional capacity when required by the market, either for accommodating new lines or to facilitate increased activities by existing lines.
In that regard, the Authority has undertaken two major expansion programmes since the mid-1990s, the most recent being in 2000-2001.
PHASE FOUR
I take pleasure in announcing that The Port Authority will be undertaking a Fourth Phase expansion of the Container Port, which is scheduled to begin in June of this year. This phase was initially scheduled for the year 2004 2005, but has been brought forward in light of our market position, as well as developments in the regional market.
This phase will include:
Reconstruction of the existing 445 metres of berth at the North Terminal plus construction of an additional 90 metres of berth westward.
Extension of the berth at the South Terminal westward by 91.1 metres.
Paving of yard space on the South Terminal; some 29 hectares.
Paving of another 21.6 hectares of yard space on the North Terminal.
Procurement of four Super Post Panamax Ship-to-Shore Gantry Cranes, to replace the obsolete ones currently on the North Terminal.
This expansion, when completed, will add an additional capacity of 300,000 Twenty Foot Equivalent Units (TEUs) representing a 25 per cent increase. Total capacity after the completion of the Fourth Phase will be 1.5 Million TEUs. The projected cost of the Fourth Phase is estimated at J$3.7 billion.
As in all previous expansion programmes, each component of this Phase will represent the most modern, and state-of-the-art available in the industry worldwide, which are able to service Post Panamax vessels currently deployed in world trade, and calling at the Port of Kingston. These vessels offer significant economies of scale. We anticipate a continuation of the trend of larger and more sophisticated vessels being deployed in service and we must make the appropriate adjustments to meet the needs of the marketplace.
The Port Authority's aggressive presence in the international market, together with world-class infrastructure and efficient service, has been bearing fruits. The additional capacity is intended to accommodate the projected throughput growth and ship calls to be generated resulting from the introduction of new lines, as well as increased activities by existing lines.
In fact, our experience over the years is that significant growth in throughput traffic invariably follows an expansion of capacity at the Terminal, because creation of new capacity reinforces market confidence in a port, other things being equal.
Apart from the significant infrastructural support given by port operations to the country's economy, modern port operation is an industry in its own right, generating employment, earning hard currency, and contributing to the Country's Gross Domestic Product (GDP).
Port development involves substantial capital expenditure. The Fourth Phase expansion construction will employ approximately 100 persons. Direct employment at the Terminal is 725. The shipping industry overall employs approximately 3,000 persons. Each worker employed directly on the port results in a multiplier of seven in the economy.
Other capital projects in 2003/4 totalling some J$2.5 billion include:
The acquisition of 12 new straddle carriers for the Kingston Container Terminal at a cost of $529 Million, and
The paving of some 27,000 sq. metres at Montego Freeport at a cost of $80 million.
SECURITY
Another significant introduction in our port and shipping operations, which we must acknowledge, is the restructured security systems. The events of September 11, 2001 in the United States have triggered international attention on security at airports and seaports.
The Port Authority has always been security conscious and alert in its port operations. However, the current circumstances have introduced a new dimension to port security, and we have been addressing the matter very seriously, and with commitment.
We are far advanced in our preparations. The Government has approved the following components of the security programme:
Procurement of X-ray machines at a cost of J$1 billion designed to facilitate comprehensive inspection of containers, and cargo packages.
A closed circuit TV (CCTV) system at a cost of J$56.3 million for round- the-clock surveillance on the port.
An Access Control System at a cost of J$12.4 million to electronically control and regulate access to our ports.
Special recruitment and training of operators for the system is underway. The new security systems will be established in the Ports of Kingston, Montego Bay, Ocho Rios, and Port Antonio. There is no doubt that Jamaica's port and shipping sector is on a growth path, with enormous potential to become a major cornerstone of Jamaica's economy."
