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The Government of Government has announced the financial close of the Kingston Container Terminal expansion project. As we reported in April 2015 the Government reached an agreement with Terminal Link consortium for the privatization of the Kingston Container Terminal (KCT).
The Terminal Link consortium is composed by CMA CGM and its subsidiary Terminal Link, and China Merchant Holdings International (CMHI). The agreement is a long-term concession to finance, expand, operate, maintain and transform the KTC under a 30-year period contract. Total project cost is US$452 million.
The financing includes a US$205 million package from the Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group, comprised of an A-loan of US$94 million and a B-loan of US$111 million from Cordiant, FMO, CIBC First Caribbean and CIFI. The package also includes co-loans from Proparco and DEG for US$30 million each. The loans offer a tenor of up to 15 years.
KCT is a regional container transshipment hub with an annual capacity of 2.8 million TEU and an annual throughput of 1.1 million. The upgraded terminal will manage increased vessel volume, expanding capacity from 2.8 to 3.2 million Twenty-Foot Equivalent Units (TEUs) per year within the next six years. The project will contribute to strengthen Jamaican’s relevancy in global trade and foster private sector activity and foreign direct investment.
According to sources, Prime Minister Andrew Holness, said.
“The upfront and other fees required under the terms of the Concession Agreement were paid over to the PAJ on June 30, 2016, thus allowing for the transfer of the Kingston Container Terminal to the concessionaire. Kingston Freeport Terminal Limited therefore assumes operations of the Kingston Container Terminal effective today, July 1st, 2016.
This development is timely, coming on the heels of the opening of the expanded Panama Canal.”