37
Professor Gordon Shirley President and CEO The Port Authority of Jamaica INFRASTRUCTURE LEADING DEVELOPMENT & ECONOMIC GROWTH Logistics & Services: astruct
Logistics & Services: Public Infrastructure + Private Investment = Economic Growth
Gordon Shirley May, 2014
Professor Gordon Shirley!President and CEO!
The Port Authority of Jamaica!
INFRASTRUCTURE! LEADING DEVELOPMENT & !
ECONOMIC GROWTH "
Logistics & Services:
Public Infrastructure
+ Private Investment
= Economic Growth
Gordon Shirley
May, 2014
2"
TINSON&PEN&LOGISTICS&AND&DISTRIBUTION&CENTRE&
Mul4modal&Cargo&Transhipment&hub&
!
“Jamaica!the!place!of!choice!to!live,!work,!raise!families!and!do!business”!
Ministry of Transport and Works
AUGUST 2011
Building&the&logis4cs&hub&of&the®ion&
Jamaica’s Central Location and Global Trade
! There is no doubt that Jamaica has benefited significantly in the past form its central location. ! However, Jamaica’s excellent location is no longer sufficient to effectively compete and maintain its
preeminent position, as a leading transhipment hub. ! Global trends have seen ports evolving from being just a gateway to international trade to become an
integral part of global supply chain and logistics industries through integration with in-land port and multi-modal facilities .
! Jamaica’s Vision 2030 envisages Jamaica becoming a major global logistics hub, capitalising on its transhipment success with a view to transfer this into becoming a major logistics hub. It is within this context that the GOJ and MTW, has developed a series of projects to enhance and support a multimodal strategy of integrating all modes of cargo transportation to enhance Jamaica’s competitiveness within global trade. Tinson Pen was conceived as playing a major role in enhancing KCT position as being the premiere transhipment hub of the Americas, especially in the post-Panama expansion era.
4 28-May-14
JAMAICA’S LOCATIONAL ADVANTAGES!
Transhipment!
Cruise! 3!
TOP 100 GLOBAL PORTS (2012)!
JAMAICA: CURRENT RANKING: 74!
PREVIOUS RANKING(2011)! 75!
THROUGHPUT (TEU)! 2012! 1.86M!
2011! 1.76M!
2010! 1.4M!
Source: Lloyd's List Intelligence, June 12, 2012! 4!
JAMAICA’S !TEU !
CONTRIBUTION !TO TOP 100!
=1.86M!
KEY INDUSTRY DRIVERS "IMPACTING PORT DEVELOPMENT PLANS !
Expansion of Cargo Through
the Region!
Panama Canal
Expansion!
Shift to Mega
Vessels! Trade Route Re-Alignment!
5!
PANAMA CANAL EXPANSION!Dimensions of Locks and Ships
32.3 m (106’)
49 m (160’)
18.3 m (60’) min.28.3 m (93’) max.
12.4 m(39.5’)
15.2 m(50’)
Maximum size of vessels in existing Locks: 4,400 TEU
Maximum size of vessels in new Locks: 13,200 TEU
33.5 m (110’)
6!
KCT PRIVATISATION "UPDATE…"
KCT Today
2014 Jan 28
Confidential Information Memorandum –
For Granting of a Long Term Concession for the Kingston Container Terminal 15 January 2014
69
PRIVATE AND CONFIDENTIAL
5.0 TECHNICAL CONSIDERATIONS 5.1
KCT Design Capacity
Figure 5.1: KCT Plan
Source: A
ECOM
Analysis- O
ctober 2013 A
ECOM
was com
missioned to undertake a study on the existing K
CT design capacity w
hich was com
pleted in October 2013. The m
ain objective was to
identify the viable options to increase and optimise K
CT’s capacity within the
short to medium
term. A
summ
ary of the results of the study is provided below:
The capacity of a Terminal is dependent on three com
ponents, that is: 1.
Berth Capacity 2.
Yard Space and Storage Capacity
3. Equipm
ent Berth capacity K
CT consists of three (3) discrete terminals, N
orth, South and West w
ith lengths of 535m
, 1,300m and 600m
, respectively. How
ever, based on their configuration, the effective lengths to the N
orth and South are reduced to 430m and 435m
respectively. H
ence, the current effective total berth length at the Terminal is
2,165m.
Confidential Information Memorandum – For Granting of a Long Term Concession for the Kingston Container Terminal 15 January 2014
17
PRIVATE AND CONFIDENTIAL
container ports as published by Containerisation International. It operates 24 hours a day, seven days per week on a 365 day basis. KCT has a current operating capacity of 2.8 million TEUs and has the ability to accommodate vessels carrying up to 10,000 TEUs. KCT is one of the busiest Caribbean ports and one of the region’s principal transhipment centres. It is served by a comprehensive range of liner and allied shipping services, with sea links to major global ports, supplemented by feeder links to regional destinations – Caribbean, Central and South America.
The 25-hectares KWL terminal offers 22 hectares of open storage with 30,000 square meters of covered warehousing and cold storage. The company also has 53, 000 square meters of secure off-dock storage for motor vehicles. Operating 24 hours per day, this public wharf, a multipurpose terminal consists of continuous quay of nearly 1,600 meters, provides nine deep water berths for ro-ro, lo-lo activities, limited container handling, general break bulk and bulk shipping services accommodating vessels with draft of 9 metres (29 feet) to 13 metres (42 feet). KWL has several subsidiaries including, Harbour Cold Stores Ltd, a public cold storage facility; and Security Administrators Ltd, providing security services at the port of Kingston, Montego Bay and Port Antonio.
Figure 2.3: Kingston Container Terminal- Aerial view from the South berth
Figure 2.4: Kingston Wharves-aerial view from the West
Capacity 2.8 m TEUs
OBJECTIVE! ATTRACT GTO!KCT Today
2014 Jan 28 Confidential Information Memorandum – For Granting of a Long Term Concession for the Kingston Container Terminal
15 January 2014
69
PRIVATE AND CONFIDENTIAL
5.0 TECHNICAL CONSIDERATIONS 5.1
KCT Design Capacity
Figure 5.1: KCT Plan
Source: AECOM Analysis- October 2013 AECOM was commissioned to undertake a study on the existing KCT design capacity which was completed in October 2013. The main objective was to identify the viable options to increase and optimise KCT’s capacity within the short to medium term. A summary of the results of the study is provided below: The capacity of a Terminal is dependent on three components, that is: 1. Berth Capacity 2. Yard Space and Storage Capacity 3. Equipment Berth capacity KCT consists of three (3) discrete terminals, North, South and West with lengths of 535m, 1,300m and 600m, respectively. However, based on their configuration, the effective lengths to the North and South are reduced to 430m and 435m respectively. Hence, the current effective total berth length at the Terminal is 2,165m.
Confidential Information Memorandum – For Granting of a Long Term Concession for the Kingston Container Terminal 15 January 2014
17
PRIVATE AND CONFIDENTIAL
container ports as published by Containerisation International. It operates 24 hours a day, seven days per week on a 365 day basis. KCT has a current operating capacity of 2.8 million TEUs and has the ability to accommodate vessels carrying up to 10,000 TEUs. KCT is one of the busiest Caribbean ports and one of the region’s principal transhipment centres. It is served by a comprehensive range of liner and allied shipping services, with sea links to major global ports, supplemented by feeder links to regional destinations – Caribbean, Central and South America.
The 25-hectares KWL terminal offers 22 hectares of open storage with 30,000 square meters of covered warehousing and cold storage. The company also has 53, 000 square meters of secure off-dock storage for motor vehicles. Operating 24 hours per day, this public wharf, a multipurpose terminal consists of continuous quay of nearly 1,600 meters, provides nine deep water berths for ro-ro, lo-lo activities, limited container handling, general break bulk and bulk shipping services accommodating vessels with draft of 9 metres (29 feet) to 13 metres (42 feet). KWL has several subsidiaries including, Harbour Cold Stores Ltd, a public cold storage facility; and Security Administrators Ltd, providing security services at the port of Kingston, Montego Bay and Port Antonio.
Figure 2.3: Kingston Container Terminal- Aerial view from the South berth
Figure 2.4: Kingston Wharves-aerial view from the West
Capacity 2.8 m TEUs
STATUS! WELL ADVANCED! BY DEC
2014!
7!
FEATURES OF THE "“PRIVATIZATION MODEL”!
PAJ WILL CONTINUE TO!
DEVELOP CORE MARINE INFRASTRUCTURE!
PORT REGULATOR!
THE TERMINAL OPERATOR WILL!
INVEST CAPITAL $$$ !
ATTRACT NEW BUSINESS !
MANAGE PORT OPERATIONS EFFICIENTLY!
DEVELOP & EXPAND !
8!
ADDING VALUE TO THE PORT OF
KINGSTON !LOGISTICS FACILITIES !
9!
KCT CONCESSION AREA!
EMBRYONIC PORT-CENTRIC! LOGISTICS HUB! ( 80 HECATRES)!
Rail!
Road !
EMBRYONIC LOGISTICS HUB ALREADY EXISTS.. "WITH 82 HECTARES (202 ACRES) FOR PORT LOGISTICS…. "
10!
JAMAICA’S LOGISTICS CAPABILITIES !
11!
.. PROOF OF CONCEPT.."
12!
LONDON GATEWAY Opening in Q4, 2013 (Nov) Capacity of 3.5m TEUs 227 hectares/560 acres 9.25m sq. ft (860k sq m) of accommodation 56 hectares for multi-modal links
37
13!13!
POTENTIAL BENEFITS!! US$ 1.5 BILLION INVESTMENT!! GENERATION OF JOBS (~12,000)!! IMPROVED ROAD INFRASTRUCTURE!! BOON IN ECONOMIC ACTIVITY !!
LAND REQUIRED FOR PHASES 1 & 2
LOT 7
PHASE LOT No. OWNER ACRES
1 LOT 11 A & B UDC 617.75
LOT 7 ADC 2,877.30
2 LOT 13 IEL 655.40
LOT 25 UDC 2,268.00
TOTAL 6,418.45
20904002001
#25
#1318903005007
20802004001
#7
22802001001
GREATGOATISLAND
LITTLEGOATISLAND
#11B
#11A
HARTLANDS
OLD HARBOUR
LONGVILLE
GREATER PORTMORE
PORTLAND BIGHT !INDUSTRIAL PARK!
(6,000 Acres)!PORT DEVELOPMENT SCHEMATIC PLAN
Portland�Bight�Logistics�Park
14!
BUSINESS OPPORTUNITIES "LOGISTICS & VALUE ADDED SERVICES…."
DEVELOPMENT (via JV/PPP)!
" World-Class !# Developer for site &!# Facilities &!# Value-added services to
global supply chains!" Range of logistics
services to enhance port attractiveness !
!
!
15!
RANGE OF OPPORTUNITIES.. "AVAILABLE NOW….LITTLE COMPETITION…"
Dry Dock!
Bulk Port!
Market !Segments!
(exists today)!
Ship Chandlery!
Bunkering! Marine Services!16!
!!New business opportunities!!!
PORT COMMUNITY SYSTEM!INTEGRATING THE PORT STAKEHOLDERS SEAMLESSLY & REAL-TIME !!
KCT! KWL/Others
17!
18!
FROM WORLD CLASS CRUISE FACILITIES!TO!
ECONOMIC DEVELOPMENT"
Locational Advantage
in Cruise
Shipping
Routes through the
Western Caribbean
19!
WORLD CLASS CRUISE FACILITIES!
OCHO RIOS!
20!
**JAMPRO Confidential
• Air Links • 3 International Airports • Over 40 Air Lines • Key Open Skies Agreements
The product today Well Connected
• Cruise Links • Three Cruise Ports • Over 33 Cruise Lines / 325 calls • Over 900,000 visitors in 2009
Tourism : Why Jamaica
MOBAY!
PORT ANTONIO!
21!**JAMPRO Confidential
The product today Diverse Attractions
90 plus
YS Falls
Dolphin Cove
Bob Sled Ride
Canopy Tour
Kool Runnings Water Park
Belfield Great House
Tourism : Why Jamaica
WORLD CLASS CRUISE FACILITIES!& …. WORLD CLASS ATTRACTIONS "
CRUISE SHIP PERFORMANCE!
- !
200,000 !
400,000 !
600,000 !
800,000 !
1,000,000 !
1,200,000 !
1,400,000 !
2013! 2012! 2011!
Passengers by Location!2011-2013!
O/RIOS! MOBAY! FAL PIER! TOTAL! 22!
WORLD CLASS FACILITIES !
WORLD CLASS ATTRACTIONS !
AMONG TOP GLOBAL
DESTINATIONS!
ACCOMPLISHMENTS & AWARDS!
23!
! HISTORIC CRUSIE DEVELOPMENT!! Falmouth: X 3 times!
! CARIBBEAN LEADING CRUISE DESTINATION!
! Ocho Rios: X 9 times!! WORLD LEADING CRUISE DESTINATION: !
X 9 times!
OCHO RIOS ENHANCEMENT PROJECT "LOOKING AHEAD……ARTISTIC IMPRESSIONS"
24!
25!
ARTISTIC !IMPRESSIONS!
ENHANCING MOBAY.. "LOOKING AHEAD…. NEW ATTRACTIONS.."
26!
ENHANCING FALMOUTH !Artistic Impressions!
27!
28!
29!
HAMPDEN WHARF DEVELOPMENT CONCEPT
BEND DOWN MARKET !
BUS PARK!
30!
ENHANCING FALMOUTH !Artistic Impressions!
BPO:JAMAICA "CREATING JOBS AND ECONOMIC GROWTH…."
31!
MONTEGO BAY FREE ZONE "…..A LEADER IN THE BPO INDUSTRY.…."
THE SPACE CHALLENGE
LARGEST INHIBITOR TO GROWH 32!6/25/14 4
! Includes global outsourcing companies & Jamaican-based entities
! 16 Offshore Companies
! 18 Other Companies
! 7,200 Employees (March 2014)
! 66% of Jamaican Market
FACILITIES & PROFILE!
COMETITIVE ADVANTAGES… "
33!Leveraging our location to attract world-class industries"
* USA * CANADA * UK!
AFFINITY TO!
CULTURAL SENSIVITY !
LARGE ENGLISH SPEAKING !
..WORLD – CLASS COMMUNICATION AND "NETWORK CONNECTIVITY.. !
+!
34!
LOOKING AHEAD "TARGETING THE HIGH-VALUE MARKET…."
Market assessment of Jamaica’s competitiveness within the global ICT sector | 19
14243-184
3 Key Service segments
In Section 2 above, we presented our audit of Jamaica’s ICT outsourcing sector. This included our understanding of the factors affecting the sector such as telecoms, electricity, office space and human capital, the issues faced by potential and existing investors and the principal areas of strength of Jamaica’s ICT offering.
In this section, we will define five service segments that are best suited to the existing capabilities of Jamaica’s ICT outsourcing sector. We will also discuss a specific niche market that is worth targeting by Jamaica.
In determining the priority segments, we first examined all ICT outsourcing activities. Figure 3.1 shows a breakdown of global ICT outsourcing activity.
Operator services
Low-end
Managed office(Operator support for absenteeism & FAQs)
Data Entry
MiddleHigh-end (KPO)
Publishing
•Content design & editing
•XML tagging & HTML preparation
Voice-related customer support
•Sale query
•Product support
•Return & replacement
•warranty
Email & online web support
Tele-sales & outbound marketing (voice-related)
Lower-mid Mid Mid
Order processing & invoicing
Data capture & validation
Engineering design
•Concept development
•Modelling & analysis
•CAD
Advanced Financial services
•Investment instruments
•Appraisal / valuation
•Portfolio analysis
•Actuarial services
Pharmaceutical services
•Clinical trial management
•Research data analysis
Voice-supported BPO
•CRM
•Credit & Collections
•Payment services
Basic F&A
•Accounts payable
•Accounts receivable
•General accounting
•Revenue assurance
HR services
•HR helpdesk
•Recruitment & departure
•Salary admin
•Performance evaluation
•Benefits
•Pension
Data warehousing
Complex contract management
•Initiation
•Service level & compliance
•Closure / renewal
Core banking services
•Savings & loans
•Mortgages
•Interest payments
Insurance services
•Policy admin tasks
•Underwriting support
•Claims processing
Utility billing
General ICT outsourcing activities *
Support for professional services **
* ** Details of services given in footnote
Figure 3.1: Global ICT outsourcing23 [Source: Analysys Mason, 2009]
23
“General ICT outsourcing activities” includes help-desk, network management, performance monitoring, infrastructure & application hosting services, application development and application management & support services. See Section 3.5 for details on “Support for professional services”
35!
LANDS FOR EXPANSION!
36!
PAJ has Lands available to meet
demand!
150,000 sq. ft. needed over next
12-18 months!
AVAILABLE LANDS: 20 ACRES!
37!
Logistics & Services: Public Infrastructure + Private Investment = Economic Growth
Gordon Shirley May, 2014
? QUESTIONS ?"
