Following extensive delays to March, 2016 and then again to June 30, Kingston Freeport Terminal Limited, which is a subsidiary of Terminal Link and CMA CGM Terminals, has taken control of Kingston Container Terminal (KCT), marking the beginning of a US$510 million 30-year concession announced more than a year ago, according to the Jamaica Gleaner.
Andrew Holness, Prime Minister of Jamaica, said that the first phase will involve the Kingston Harbour being deepened and dredged, of which funding has already been secured.
He said: “The concessionaire and the lenders have signed loan agreements and are working to complete all conditions precedent to disbursement. The development is timely, coming on the heels of the opening of the expanded Panama Canal.
“The expansion was undertaken to facilitate the transit through the Panama Canal of much larger shipping vessels, which are now being built due to evolutions in materials, hull designs and manufacturing technologies.”
PTI previously reported that CMA CGM had successfully signed a 30-year concession with the Port Authority of Jamaica to operate the Kingston Container Terminal.
The move signifies CMA CGM’s intention to create a Caribbean maritime hub in line with the expanded Panama Canal, which was inaugurated on June 26, 2016.
With a total 2,400 metres of wharf, an 80ha surface and a 15.5-metre draught,Kingston Container Terminal will increase its annual capacity to 3.6 million TEU.
CMA CGM has recently completed its acquisition of Neptune Orient Lines by passing the 90% ownership mark, which effectively marks the beginning of full control in the company.