- The Government began negotiations with Terminal Link Consortium on October 14, regarding privatisation of the Kingston Container Terminal (KCT).
- Terminal Link Consortium is jointly owned by CMA CGM and China Merchant Marine.
- This was disclosed by Minister of Transport, Works and Housing, Dr. the Hon. Omar Davies, in a Statement to the House of Representatives on October 14.
The Government began negotiations with Terminal Link Consortium on October 14, regarding privatisation of the Kingston Container Terminal (KCT).
Terminal Link Consortium is jointly owned by CMA CGM and China Merchant Marine.
This was disclosed by Minister of Transport, Works and Housing, Dr. the Hon. Omar Davies, in a Statement to the House of Representatives on October 14.
The Minister also informed that Cabinet has approved the appointment of a small negotiating team to begin the process. The team is led by former Governor of the Bank of Jamaica, Derick Latibeaudiere. Other members are: President of the Port Authority of Jamaica, Professor Gordon Shirley; Permanent Secretary in the Ministry, Audrey Sewell and Chief Executive Officer of the ICD Group Limited, Peter Melhado.
“I have given the negotiating team a month to provide me with a definitive statement on progress in their discussions with the representatives of Terminal Link. Should these negotiations lead to a preliminary agreement, which satisfies the criteria laid down by the Government of Jamaica, steps will be taken to move towards a final agreement in the shortest time possible,” Dr. Davies said.
He added that if no agreement is reached, then the negotiating team will be authorized to act under Section 4.0.4 of the government of Jamaica privatisation policy with other parties which have expressed an interest, subsequent to the termination of the previous tender process.
On January 16, 2014, the Government, through the KCT Enterprise Team and the Port Authority of Jamaica, issued a confidential Memorandum of Understanding and request for proposals to three prequalified entities, for the grant of long term concession to finance, expand, operate, maintain and transform the Kingston Container Terminal.
The three entities were Ports of Singapore International; Dubai Ports; and Terminal Link Consortium consisting of Terminal Link, CMA CGM, and China Merchant Holdings International (CMHI).
Dr. Davies said at the close of the bidding, a single bid was received from Terminal Link Consortium.
“The other two bidders declined to submit tenders due in part to their concerns about the implications for the viability of the KCT, given the proposed development of a new transshipment terminal by China Harbour Engineering Company in the Portland Bight area. This occurred despite a number of initiatives which were pursued by the Port Authority’s management to protect the future viability of the KCT,” he noted.
The Government began the process to privatise the KCT in the latter part of the 2012/2013 financial year with the engagement of an Enterprise Team to oversee the process.