Gov’t to Sign US$5 Billion Logistics Hub MoU Monday

On Monday (April 20), the Government will sign the Memorandum of Understanding (MoU) with Krauck Systems and Anchor Financial Group LLC, for the development of projects in Jamaica related to the Global Logistics Hub.

Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, made the announcement at a post Sectoral debate press briefing today (April 15), at Jamaica House.

Minister Hylton first disclosed Cabinet’s approval of the signing of the MoU at the Jamaica Investment Forum in Montego Bay in March.

He said, at the time, that the investors had expressed “solid interest” in investing US$5 billion in a series of logistics-related infrastructure projects, which will transform the “business landscape for logistics in Jamaica.”

Speaking at today’s press briefing, Minister Hylton said the signing of the MoU is the first step in the investment process.

“(They) are proposing to engage under the MoU with the Jamaican Government to discuss an integrated approach to the logistics hub. What it will do is to provide the framework in which the Government of Jamaica and its team can meet with the team from the investors…to begin to discuss the terms and conditions (regarding) the various assets that they are interested in,” Mr. Hylton said.

“This, I believe, is the real significance of this approach and why in excess of US$5 billion is what is being discussed and necessary if we are going to deliver the logistics hub, not only on time, but in the manner…to make sure that it works effectively,” he contended.

The Minister informed that Krauck Systems has displayed interest in the logistics hub in Jamaica for the last year and half and is interested in a cluster of projects such as Vernamfield, Caymanas Economic Zone, a dry dock facility, and a commodity port.

He said the signing of the concession agreement for the Kingston Container Terminal was a clear indication to the potential investors of Jamaica’s readiness for the logistics hub.

“They have had people here doing their own background studies, looking at the environment and trying to determine whether Jamaica is the best place to spend their money at this time,” he noted.

“They are settled and are very clear that the logistics hub in Jamaica, in this hemisphere, would be of global interest and significance and therefore they are keen to ensure that their investments go into those critical projects that would make the hub not only operational but functionally efficient and working,” he added.

Minister Hylton said it is expected that a framework agreement will be developed setting out exactly what the obligations of the parties are with respect to the various assets on which they would have come to an agreemen