The Port of Authority of Jamaica (PAJ)will resume day-to-day operation of the Kingston's container port next month when the seven-year management contract with Danish firm, APM Terminal ends.

But the PAJ has not ruled out outsourcing of the operations again in the future.

"Qualified staff has been employed to ensure professional management of the Kingston Container Terminal when APM's tenure ends", Pat Belinfanti, PAJ's assistant vice-president for communications, told Wednesday Business.

"Consideration will be given to the possible awarding of another management contract at a future date".

For now, though, the authority will itself will run the port, which is among the busiest in the Caribbean.

90 persons to loose jobs

Belinfanti did not respond to request for comment on what becomes of the workers who will be made redundant at APM's departure.

Sources said some 90 persons will lose their jobs.

The Port Authority outsourced the operational side of the business to APM Terminal - a transnational shipping and port management company - in 2002 as part of an effort to enhance operational efficiency of the facility, while the PAJ concentrated on marketing the port.

The Kingston Transhipment Terminal, being upgraded to handle 3.2 million container-moves annually, is rated 47th among the world's ports in terms of management and the PAJ has consistently praised the improved efficiency of its operation.

However, the parties apparently decided against renewing APM's contract to allow the Jamaica government space to consider the privatisation of the port.

APM's departure, though, is coming at a time of declining business for the port, in the face of increased competition from ports in Panama and the Dominican Republic and softening trade because of the deepening global recession.

Downturn

Last year, for instance, container throughput, at 1,723,530 twenty-foot equivalent units (TEUs) were more than 84,000 of approximately five per cent lower than then 1,807,925 moves of 2007, which itself was an 8.8 drop on the previous year.

But in responses to Wednesday Business Queries, Belinfanti indicated that the port was cushioning the shocks from the recent downturn by attracting new lines to Kingston, including two Chilean shipping lines, Compania Sud Americana de Vapores (CSAV) and CCNI, a member of maritime transpor-tation group, Empresas Navieras Holdings.

The business from those lines will help replace the business lost when Maersk pulled out of Jamaica.

The Port Authority has not quantified the full impact of Maersk's departure, but acknowledged in its 2008 annual report that the near 2 million tonne decline in cargo handled by the port was largely due to the pull-out.

Volumes fell from 32.47 million tonnes in 2006/07 to 30.6 million tonnes in 2007/08, a 5.7 per cent decline.

mark.titus@gleanerjm.com