(Jamaica Gleaner) The Port Authority of Jamaica is pushing for speedy divestment of the Kingston Container Terminal (KCT) partly because it plans to use the proceeds as financing for dredging the Kingston Harbour.
The dredging is seen as critical to accommodating larger ships when the Panama Canal expansion is completed. The Port Authority is finalising studies on the scope of work and financing required to undertake the dredging project.
“What has held us up,” said vice-president for business development at the Port Authority, Edmond Marsh, is consideration of how to finance the harbour project.
The KCT requests for proposals have been issued, said Marsh, who addressed a forum hosted by University of Technology on the plans for the creation of a global logistics hub in Jamaica
Responding to sceptics as to whether the harbour project will be completed in time for the opening of the Panama Canal in early 2015, Marsh said he has been assured by the Port Authority’s engineering department that it will be done on time.
Without the dredging “we can forget about it,” he said, referring to Jamaica benefiting from larger volumes of cargo expected to be transported by Post-Panamax vessels passing through the expanded Panama Canal.
“Big ships will displace smaller ones and big ships reinforce the hub-and-spoke pattern of shipping favouring mega trans-shipment hub ports,” he said.
Consequently, Jamaica will require deeper draughts and longer berths, he added.
Marsh pointed out that although Kingston will compete with what he described as the Caribbean trans-shipment triangle, its strategic geographic position allows Kingston to act as a hub for southern and eastern United States ports that are draught-restricted.
However, regional threats include the Caucedo Port in the Dominican Republic, Cartagena in Colombia, Balboa in Panama and Manzanilo International Terminal, Panama.
Divestment of the Kingston Container Terminal was first raised by then Prime Minister Bruce Golding in February 2009.
The Port Authority in May 2009, and again in June 2011, issued consultancy contracts to PricewaterhouseCoopers totalling US$3.8 million under the privatisation plan.
In January this year, the Government named former Bank of Jamaica Governor Derick Latibeaudiere as chair of an enterprise team for the privatisation of the port.
However, efforts by the Financial Gleaner since last week to reach Latibeaudiere have been unsuccessful.
