Jamaica to benefit from the Panama Canal expansion
April 4, 2013 | by Gabriela Radeva |
Since the official approval of the Panama Canal expansion in 2006, Jamaican officials have begun to seize potential profit of the country’s relatively strategic geographical position, being the Caribbean island closest to Panama. The expansion will allow larger ships to transit the channel coming from Asia and the East and Gulf Coast regions of North America.
Speaking at the Jamaica Chamber Commerce’s (JCC) at the Hibiscus Lodge in Ocho Rios, St. Ann on 16 February 2013, the Industry Investment and Commerce Minister Hon. Anthony Hylton presented the expansion as positive prospect for Jamaica’s economic stabilisation and development of the business environment in the region. “It has the potential to transform our economic fortunes, from which present and succeeding generations will all benefit” said the Minister. He estimated a long term profit and encouraged the local business owners to support the project.
The project consists in the construction of two new sets of locks – one on the Pacific, and the other on the Atlantic side of the Canal. The waterway, which will allow cargo ships with three times the container capacity currently passing through the locks, should be finished in the first half of 2015.
In order to reap the full benefits Jamaica has embarked upon a costly infrastructure project. The central tasks in the preparation include dredging the Kingston Harbour bed (deepening the habour to a depth of 17.5 meters); expanding the Port of Kingston, and training of a specialised habour force. All together with a price tag of about US$800 million.
But if Jamaica really wants to benefit from the expansion, they need to finish the supporting infrastructure before the Panama expansion project is completed in 2015. If the right actions are undertaken by the Jamaican government the island has great potential in emerging as a global trans-shipment hub, much like Singapore. It is projected that it will create 1,500 new permanent jobs and many more business opportunities.
