Proparco is contributing to optimizing the Kingston Container Terminal (Jamaica), which is managed by Kingston Freeport Terminal Limited. Once developed, the terminal will be a leading port facility in the region.
Kingston Freeport Terminal Limited (KFTL) is a company ultimately owned by French shipping company CMA CGM, the third largest container shipping line in the world. The company is registered in Jamaica under Jamaican Laws and exists, as a long-term concessionaire (30 years), for the purpose of financing, expanding, operating and maintaining the Kingston Container Terminal (KCT).
The long-term financing package provided by Proparco and other lenders will support the optimization and expansion of the terminal, which will be able to accommodate larger ships now passing through the expanded Panama Canal and manage growing vessel volumes with an increase in annual capacity from 2.8M to 3.2M containers (TEUs) within the next six years. It is the largest infrastructure project funded by Proparco and the IIC/IDB in Jamaica.
The expansion of a major hub for container traffic in Jamaica will support the creation/maintaining of direct and indirect jobs and have a stimulating effect on economic activity. As KCT is an essential Jamaican infrastructure, this funding will contribute to strengthen Jamaican’s relevancy in global trade and foster private sector activity and foreign direct investment. Furthermore, the grantor of the concession (Port Authority of Jamaica) will benefit from substantial upfront and annual concession fees. Also, due to KCT’s strategic location as a transshipment hub, KFTL will enable shipping lines to optimize their routes and reduce their vessels’ oil consumption.