Logistics Hub MoU to be signed on Monday

The Government of Jamaica will on Monday sign a 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.

Arising from that, 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 agreement.

Anthony Hylton, Minister of Industry, Investment & Commerce, made this announcement at a post Sectoral Debate press briefing on Wednesday at Jamaica House.

Mr. 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."

At Wednesday's press briefing, he said the signing of the MoU was 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.

The Minister disclosed 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 said.

As a result of that process, he said "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."