A logistic centre that will consolidate in Jamaica containers shipped from across the globe and destined for the Americas, was officially launched on Friday, with the promise to transform Jamaica into one of the key transshipment points on this side of the hemisphere.

The company - Kingston Logistics Centre Limited (KLC) - is a three-way partnership between the Port Authority of Jamaica the Israeli company, Zim; and Charlie Johnson's stevedoring firm, Jamaica Fruit and Shipping Ltd.

The centre, which is located on 16 acres of land on Marcus Garvey Drive in Kingston, will provide a key element in Zim's global logistic network. It will be involved in the stripping, repackaging and redistribution of containers transported by Zim to Kingston from several countries.

The projection is for the logistic centre to handle 300 containers per month during the first year of operation, 600 containers per month in the second, and 1,000 in year three.

At the launch, Yoram Sebba, vice- chairman of Zim, said the new company represented a significant advancement in regional shipping during a productive period in the global industry. He promised that it would transform Jamaica into an international trade centre.

"We bring with us experience, expertise, goodwill and vision," said Sebba. "If international trade is diverted to Kingston, KLC will only be one of the winners. Our target is to enhance logistic services for the whole Caribbean area and the whole Central America area."

To float the company, the Port Authority of Jamaica and Zim created a vehicle called Zim Integrated Shipping Services Limited, in which the PAJ is a 75 per cent owner and the Israelis, 25 per cent. Zim Integrated then entered into a joint partnership with Jamaica Fruit and Shipping to form the Kingston Logistic Centre. The Business Observer was unable to ascertain the shareholding in the KLC between Zim Integrated and Jamaica Fruit.

Zim is the world's 12th largest shipping line, and one of Jamaica's largest clients. The shipping line also regards Jamaica as its preferred trans-shipment port for entry to the Americas.

The 16-acre land on which the centre is located was bought by the joint company Zim Integrated from Cable and Wireless for $330 million. However, as part of the management arrangement, Zim shipping line leased the property for 25 years from the joint venture, beginning July 1 2005. The PAJ will not be involved in the actual operations of the hub.

The KLC represents the first stage in the plan by the Port Authority to develop a modern, efficient distribution hub facility in Kingston.

Sebba said that the investment in the facility was well-timed, given the developments in world trade and the pre-eminence of shipping in this process.

"It so happened that KLC will open its gates in one of the most interesting periods in international trade," he said. "Shipping gained a remarkable momentum by accelerating total sea routes more than any other route, a phenomenon which particularly favours Jamaica, who so much relies on those sea lanes."

Guest speaker at the launch, minister of transport and works, Robert Pickersgill, also stressed the importance of the logistic hub to Jamaica's strategy of tapping into the booming global shipping industry that accounts for 90 per cent of the world's cargo in international trade.

"The development of the Kingston transshipment terminal which opened for operations some thirty years ago, is a testament to the commitment by the government of Jamaica to carve out a niche in the lucrative international shipping industry," said Pickersgill. "Indeed, in as much as it is deemed that we now are operating a world economy it can be asserted that shipping is the engine driving international trade and the global economy."

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