A Bold New Caribbean

Boosting revenue, economic activity, and job cre- ation are among the expected benefits of improving this sector. Besides this, transshipment is big business. Singapore has grown to become the second busiest container port in the world and its largest transship- ment hub 15 . Seeing the Singapore example, some Caribbean countries are working towards becoming global transshipment hubs. I will speak about two in this article: Jamaica and Barbados. A critical part of Jamaica’s National Development Strategy, the Jamaica Logistics Hub seeks to position Jamaica as an internationally competitive logistics hub to promote economic growth, job creation, and greater opportunities for the Jamaican people. It aims to capitalize on Jamaica’s geostrategic location near the convergence of several global shipping lanes utilizing the Panama Canal and the Canal’s ongo- ing expansion 16 . It aims to become the home of the fourth global logistics hub similar to large hubs like Rotterdam, Singapore and Dubai. Jamaica’s Kingston Container Terminal (KCT) is one of the largest trans- shipment hubs in the Caribbean and Central America sub-regions. The KCT has seen more significant trans- shipment volumes thanks to the Panama Canal’s ex- pansion. Ongoing investment at KCT means it can now handle some of the world’s largest vessels. In addition to investing in its port infrastructure, Jamaica has been establishing special economic zones (SEZs) to support logistics operations and has also been improving its road transportation network. Barbados Barbados has long been an aviation hub for the East- ern Caribbean, with good air connectivity to major international hubs. The island also seeks to become a logistics hub, especially for Caribbean-Africa trade. The Government of Barbados will host the first UNCT- AD Global Supply Chain Forum from 21 to 24 May 2024 bringing together government officials, the private sector and other experts to “explore how to promote development through sustainable and resilient trans- port and logistics, improved connectivity and trade facilitation” 17 . Moreover, Barbados and Guyana have been actively working to create a Food Terminal which would have benefits for the agriculture and agro-pro- cessing sectors and help in addressing persistent food Jamaica

insecurity challenges facing Barbados and much of the region 18 . In 2022, Barbados was also cho- sen as the home of the World Food Programme’s (WFP) Caribbean Regional Logistics Hub and Centre of Excellence 19 .

Sustainability is Key

However, as with most FDI, the fundamentals in a market must be right if they are to attract logistics FDI that is sustainable, environmental- ly friendly, and redirected to the economic and social welfare of the citizens. This includes pro- moting a business-friendly climate but also one in which labour and environmental rights are re- spected. Caribbean Export’s Logistics and Transportation Investment Opportunities 2022 brochure high- lights some immediately investable projects in the logistics and transportation sector 20 . Many of the investment opportunities in this sector include port rehabilitation, redevelopment or modernization, provision of logistics services, but there are some greenfield opportunities in port construction. Some of the proposed investment modes vary but include public-private partner- ships, turn-key operations, and joint ventures. Those Caribbean WTO members signed on to and are in the process of implementing the Trade Facilitation Agreement. Five Caribbean countries are also among those WTO members that participated in the recently concluded WTO Joint Statement Initiative ‘negotiations’ on an Investment Facilitation for Development agree- ment. These high-level commitments towards improving their business climates, as well as ongoing digitalization efforts, show that Carib- bean countries aim to improve their investment attraction, including attracting FDI in the logistics and transportation sector.

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SOURCES

16 https://www.miic.gov.jm/content/what-jamaica-logistics-hub 17https://unctad.org/news/barbados-host-first-global-supply-chain-forum-may-2024 18https://barbadostoday.bb/2023/03/04/new-opportunities-with-food-terminal 19https://reliefweb.int/report/barbados/barbados-will-be-home-wfp-regional-logistics-hub 20https://carib-export.com/publications/logistics-transportation-brochure-cif-2022

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