KINGSTON, Jamaica--Minister of Science, Energy and Technology Dr. Andrew Wheatley says it is important for the country to position itself to capture its fair share of the ship refuelling market, with the recent opening of the expanded Panama Canal.
He was speaking at the signing of an agreement in which Jamaica Broilers Group (JBG) sold its ethanol-producing and -storage facilities at Port Esquivel to West Indies Petroleum (WIP) at a cost of US $22.5 million. This is expected to boost Jamaica’s ability to provide bunker fuel for the international shipping trade.
Dr. Wheatley commended the principals of the four-year-old WIP for completing the deal. He said that for a young and small company to make such a bold move in acquiring the JBG ethanol facility shows visionary thinking, one which supports the Government’s push to create a better environment for local investment.
“We’re seeing a Jamaican company making a bold move and investing locally. It provides an opportunity to fully utilise the production capacity of the country. It also highlights Jamaica Money Market Brokers (JMMB), another local company which has supported another Jamaican company by providing the financing,” he said.
The agreement is expected to lead to an increase in employment in several areas of the industry, as the need to service more ships increases.
Meanwhile, President of JBG Christopher Levy said the purchase is a major development for the country and for WIP.
For his part, WIP Director Charles Chambers pointed out that there is a lack of bunkering in this region, and with the recent opening of the expanded Panama Canal and the anticipated increase in ships that will come to Jamaica as a spin-off, the deal is even more important.
“This acquisition immediately gives us the opportunity to provide fuel to cruise lines that don’t take fuel in Jamaica as well as to support shipping companies that have made Jamaica their hub, but which do not take fuel here because of our limited capacity to supply,” he said.
Meantime, the Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group, has signed a US $265 million financing package with Kingston Freeport Terminal Limited to optimise and expand Kingston’s container-terminal capacity in Jamaica, as the port must stay competitive to handle larger ships now passing through the expanded Panama Canal.
The upgraded terminal will soon manage increased vessel volume.
“The project will contribute to strengthen Jamaican’s relevancy in global trade and foster private sector activity and foreign direct investment,” the IDB said.
The financing includes a US $205 million IDB loan comprised of an A-loan of US $94 million and B-loans of US $111 million from private sector investment manager Cordiant Capital, The Netherlands Development Finance Company FMO, CIBC First Caribbean Bank and Inter-American Infrastructure Financing Corporation CIFI. The package also includes co-loans from Development Financial Institution Proparco and German Investment and Development Corporation DEG for US $30 million each.
The total project cost is US $452 million and it is the largest infrastructure project funded by the IIC in Jamaica.
In addition to long-term financing, the IIC provided assessments to optimise dredging and mitigation measures with the aim of protecting local biodiversity and cultural heritage. ~ Caribbean360 ~
