The Government of Jamaica has begun negotiations with Terminal Link consortium for the privatisation of the Kingston Container Terminal (KCT).
According to the Minister of Transport, Works and Housing, Dr. Omar Davies, Cabinet has approved the appointment of a team to begin the process. The team will be led by former Governor of the Bank of Jamaica, Derick Latibeaudiere. The team also includes President of the Port Authority of Jamaica, Professor Gordon Shirley and Permanent Secretary in the Ministry, Audrey Sewell, among others.
The Terminal Link consortium is composed by CMA CGM and its subsidiary Terminal Link, and China Merchant Holdings International (CMHI). Two more firms were involved in the tender process, Dubai Ports and the Port of Singapore International. At the close of the bidding, only Terminal Link Consortium submitted a proposal for the KCT concession.
Dr. Omar Davies stated:
I have given the negotiating team a month to provide me with a definitive statement on progress in their discussions with the representatives of Terminal Link. Should these negotiations lead to a preliminary agreement, which satisfies the criteria laid down by the Government of Jamaica, steps will be taken to move towards a final agreement in the shortest time possible.
The bidding stage of the KCT PPP transaction began on January 16, 2014. The confidential information memorandum (CIM) and the request for proposals (RFP) were issued to the three pre-qualified bidders later. The draft Concession Agreement was subsequently issued on February 14. On 20 May 2014 we reported that the deadline for the submission of bids was extended to July 3.
The long-term concession is to finance, expand, operate, maintain and transform the KTC.
KCT is a regional container transshipment hub with an annual capacity of 2.8 million TEU and an annual throughput of 1.1 million. Further development of the Kingston Container Terminal is expected to facilitate the passage of Post-Panamax container vessels with a nominal capacity of 12,000 TEUs in comparison to the existing Panamax vessels with a capacity of 4,500 TEUs currently transiting the Panama Canal.
Jamaica has another transport PPP project in tender stage, the Norman Manley International Airport.