Jamaica’s Minister of Industry, Investment and Commerce, Senator Aubyn Hill
A business delegation from Jamaica is currently in Guyana exploring potential opportunities for partnership with locals, and among the areas floated for possible investment is the transport and logistics sector.
Jamaica’s Minister of Industry, Investment and Commerce, Senator Aubyn Hill, is leading the 4th Business Mission to Guyana to look at available collaboration opportunities.
During remarks at a welcome session in Georgetown on Thursday morning, Minister Hill pointed out that in the absence of a major port facility in Guyana, there are opportunities for Jamaican businesses to step in and provide critical services in the transport and logistics sector. “We need to look at logistics as a place to make sure we build that partnership so that when Guyana gets it’s huge port, we’re a little part in there already,” he noted.
The Jamaican minister was, at the time, echoing sentiments expressed by the president of the Guyana Manufacturing and Services Association (GMSA), Rafeek Khan.
During a presentation to the Jamaican Business Delegation, the GMSA head explained that Jamaican companies can take advantage of the low freight cost for shipments between Guyana and Jamaica.
“I believe Guyana to Jamaica is the lowest among the lowest – if not the lowest – freight cost [with about] US$2,500 for a container, and why are we not trading and selling more between each country?” he questioned.
Khan went on to add that with Port Georgetown unable to take in huge ships because of its draught being just about four to six metres, Kingston offers a viable option to accept large vessels and then transship with smaller vessels to Guyana.
“I believe we can do good logistics. We need to have breakbulk shipments, going from Guyana to the Caribbean, stopping in Jamaica, Trinidad, or wherever it is we’re doing business. You’re bringing goods from Jamaica here, and we‘re taking goods to Jamaica, and we’re stopping at certain strategic islands and dropping off. It doesn’t always have to be containerized. We need more breakbulk shipments, more Less than Container (LCL) shipments,” the GMSA President stated.
Less Than Container Load (LCL) refers to the consolidation of shipments from multiple operators who use a single container for ocean freight to save costs and optimize container space. Meanwhile, breakbulk refers to cargo that is individually packaged in boxes, barrels or pallets for shipment.
Minister Hill believes there is much scope with breakbulk shipments between Guyana and Jamaica.
“We need to get barges. We don’t have to get big ships; some ships, yes, but barges that can come from Kingston to Guyana. One day, everything is going to ship from Guyana. We’ll be there in Kingston waiting. But until then, let us help Guyana.”
“If you bring the stuff in from the States or wherever you bring it from – and Drake [Passage] is just a bad place to let it land these days, [but] we’re not interfering in the tariff wars. Let the big guys do their thing – now, you quietly come to us. Bring your stuff into Kingston; we break bulk, send it to Guyana. Much of it will come to Guyana, but there’s Trinidad, there’s Barbados.” the Jamaican Minister noted.
According to Minister Hill, Jamaican companies have access to financing through the banking system in the island state to undertake such a venture. However, he outlined that partnering with Guyanese is key in exploring these opportunities.
“We need to put together a consortium with Guyanese and look [to] invest in our breakbulk business coming from Kingston. We want to make sure Guyanese investors are in there. We want a partnership. Yes, we can find the money. Yes, we have all the laws written already for the Jamaica Special Economic Zone. Let’s partner. I don’t care what you came here for. I want you to think about this. This is a real opportunity.” the minister posited.
He went on to note that with such an initiative, they will be able to not only address logistical challenges in the region but also bolster bilateral trade between Caribbean neighbours and, in doing so, reduce importations from places around the world.
The current People’s Progressive Party/Civic (PPP/C) government has long been touting its vision of transforming Guyana into a transshipment hub with the building out of modern port facilities at strategic locations across the country to boost trade, especially in the South America and Caribbean regions.
Already, the government is embarking on transforming the Parika Stelling into an international port facility that will have cold storage and a packaging house to assist local farmers, and providing a launching pad to export produce directly to the Caribbean. This port facility will play a vital role in Guyana’s food security ambitions and boost exports of agricultural products.
Moreover, Guyanese shipping giants – John Fernandes Limited and Muneshwers Limited – have joined forces to build a US$285 million port facility in Berbice, a project that would create about 1000 job opportunities for locals.
In the region, however, Guyana is working along with Barbados and Trinidad and Tobago to set up a regional ferry service to not only enhance travel in Caribbean, but also the movement of goods.
“We need to look at logistics as a place to make sure we build that partnership so that when Guyana gets it’s huge port, we’re a little part in there already,” he noted.
