Jamaica: New ressources to expand Kingston’s container terminal
published on 06 July 2016
Proparco and the IIC (member of the IDB Group) have signed a long-term financing package with Kingston Freeport Terminal Limited (KFTL), owned by the French group CMA CGM.
This funding will support the optimization and expansion of Kingston’s container terminal capacity, in order to strengthen the port’s competitiveness. It is the largest infrastructure project funded by Proparco and the Inter-American Investment Corporation in Jamaica.
The upgraded terminal will be able to handle larger ships (now passing through the expanded Panama Canal) and 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 creation of a major hub in the sub-region for the traffic of containers would have numerous positive externalities for Jamaica and the sub-region, amongst which the creation or maintaining of direct and indirect jobs, and a knock-on effect on economic activity around the port area through the development of maritime activity exports. More widely, this funding will contribute to strengthen Jamaican’s relevancy in global trade and foster private sector activity and foreign direct investment.
Financing has been provided by IIC, Proparco, DEG and B-lenders including FMO. The participation of DEG and FMO has been coordinated by Proparco.
In addition to long-term financing, the IIC and Proparco provided assessments to optimize dredging and mitigation measures with the aim of protecting local biodiversity and cultural heritage.
