By Mike Jarrett
Dubbed ‘the centrepiece’ of Jamaica’s Global Logistics Hub initiative, the Caymanas Special Economic Zone (CSEZ) is best described as a Public-Private Partnership (PPP) in which business production entities are housed and facilitated with space, modernised systems, skills and ready access to global supply routes.
As the Jamaican government describes it, ‘… a modern space where businesses can easily function and (where) investors’ needs are met’.
The CSEZ is conceived as a secure and well-facilitated zone for various business engaged in warehousing, information and communications technology, business process outsourcing, manufacturing, logistics and other business-related activities.
Economic sense
Jamaica’s Global Logistics Hub Initiative makes economic sense because of the country’s fortuitous reality of being located next major global trade routes. As in the real estate business, value (read ‘success’) of logistics hubs are largely predetermined by three fundamental factors:
(1) location, (2) location and (3) location. In this regard, the CSEZ is well endowed, with its proximity to: the giant North American Market, the Panama Canal, a major international seaport; an international airport; the largest labour pool in the Region; and, a modernized road system that facilitates efficient movement of produce and raw materials.
However, there are other factors that make economic sense, not the least of which is the Jamaica government’s willingness to make the venture a great investment for some global enterprise willing to engage in a partnership to develop and operate the CSEZ.
SHOPPING
Up to mid-year, the Jamaica government was still ‘shopping’ for what was described as a ‘world-class private partner’. The partner would be required to invest in, develop and operate the CSEZ as a fully serviced and effectively managed operation that offers global standard utilities and connectivity. In this regard, the selected operator will target and engage tenants and ensure the delivery of services including security and environment protection.
The Government of Jamaica, through the Jamaica Special Economic Zone Authority (JSEZA), will provide the site, a 236-hectare greenfield site in close proximity to the Port of Kingston. The government is also willing also give national and international marketing support. [See sidebar].
In its maturity, the projections for the CSEZ include the creation of 70,000 jobs.