FileAn overview of Kingston Wharf.
Glenda Anderson, Staff Reporter
A RECORD 892,000 containers passed through the Kingston Harbour last year, the largest figure since the 1990s. Projections for a further six per cent increase has forced preliminary plans for another major expansion programme for the port.
According to senior supervisor of Special Projects at the Port Authority of Jamaica, Byron Lewis, the record 28 per cent increase in activity is evidence that the harbour has grown to become one of the more popular relay terminals for some 170 lines across the world including Germany, Switzerland, the United States and the United Kingdom. At present he says the harbour brings in more than US$60 million each year in foreign exchange.
"We have been holding our own over the years and are now very optimistic of our growth potential. In fact given the growth and demand we have been seeing there are now projections for another expansion programme in 2004/2005," he said.
The new project will also focus on creating more capacity.
As a transshipment port, the Kingston Harbour is currently rated at 67th in the world and is directly in competition with ports in the Bahamas, Puerto Rico, Panama and the Domini-can Republic.
Mr. Lewis explained that the harbour's success comes as it tries to keep up with modern trends in the market.
"From inception 25 years ago we have pursued a policy of ongoing development. It is an extremely competitive business and you only maintain your position in the competition through efficiency and cost advantage. As a result we have sustained a programme of expansion, development and modernisation.
"For example, in the past a ship would come in with five containers at most, now they come with 6,500 containers so that the berths and infrastructure have to be in line with new developments."
Since the 1990s the port has more than doubled its intake, a feature which has been linked to the resurgence of the Latin American markets. The port started in 1975 with an initial investment of US$11 million, receiving an average 40,000 containers. However, there has been periodic expansions costing more than US$200 million. One phase undertaken in 1994-1996 was to the tune of US$120 million with another for 2000-2001 at a cost of US$105 million. Its most recent expansion programme is the controversial two-tiered dredging operation in the Kingston Harbour costing US$27 million. The project combines periodic maintenance dredging, which includes dredging for depth to accommodate changes in ship technology.
Investments in infrastructure and equipment were also undertaken to the value of J$12 billion. The venture which started with only two operational cranes now boasts 14 and other machinery and equipment rated as the most advanced in the world. The port operates as a statutory body under the Ministry of Transportation and Works and funds all its operations.
Angela Jackson, marketing manager at ZIM, one of the port's largest and most consistent customers, explains that the shipping line has been coming to Jamaica for the past 25 years and has always relied on what she describes as the port's "efficiency and productivity".
"Obviously there is the strategic trade link issue which is very important in the shipping business as time is always of the essence but Jamaica offers good world class service. Right now 80-90 per cent of our transhipments go through the port of Kingston, and we are the major users of the port as a hub line."
Managing Director of Hapag Lloyd Graham McAllen, another major customer, says that "Out of the choices available, strategically Kingston is the best place."
Each year the line moves 66,000 units through Kingston including growth last year of around nine per cent. Hapag Lloyd is also part of New Caribbean Services (NCS) Euro group moving roughly 200,000-210,000 units through Kingston alone. He says that the port was also ideal because of its dynamism.
"The port has shown immense growth in the last 12 months and with the amount of investment they are willing to put in, it is clear that they are working hard to achieve those levels and I'm sure they will get there," he said.
