Position Ja as a value-added partner in supply chain

Jamaica is pursuing sustainable development in line with Vision 2030, which aims to secure developed country status by that year. The government highlights recent progress such as new roads, housing, investments, and economic growth, all supported by fiscal discipline and strong governance.

However, the current goal of being a global logistics hub is no longer sufficient. Jamaica must transition into a value-added partner within the global supply chain, focusing on transforming goods through processing, assembly, and packaging rather than only transporting them. This strategic shift promises to strengthen resilience, generate new opportunities, and redefine the economy.

Becoming a value-added logistics hub would attract more foreign direct investment as global investors increasingly prefer integrated supply chain solutions over simple transshipment. This model offers higher quality jobs and greater skill development, particularly in logistics management, light manufacturing, renewable energy, and digital infrastructure. Jamaica’s geographic advantage as a transshipment hub in the Americas positions it well to pursue this shift.

Initiatives such as specialized logistics free zones and workforce training in areas like supply chain analytics and technology integration can support this vision. While low-cost competition from China remains a challenge, Jamaica can focus on quality, speed to market, and niche services like just-in-time delivery to North America, customization, and renewable energy integration. Building advanced digital infrastructure for e-commerce fulfilment, blockchain verification, and real-time shipment tracking can further differentiate Jamaica. The emphasis should be on premium services rather than low-margin mass production, leading to better wages, entrepreneurship, and long-term growth.

Despite the opportunities, challenges remain. A major barrier is energy cost, Jamaica’s high electricity prices undermine competitiveness, making energy reform essential. The renegotiation of the Jamaica Public Service (JPS) licence offers an opportunity for cheaper, more reliable energy. Expanding affordable solar loans and empowering communities to generate their own energy through decentralised models could lower costs and promote resilience. Examples from Barbuda, Dominica, and Germany show how community-powered renewable systems reduce reliance on centralized utilities, cut emissions, and retain profits locally. For Jamaica, this could include rooftop solar, microgrids in rural areas, and waste-to-energy initiatives, fostering both sustainability and job creation. Shifting energy control to citizens would modernise the sector while improving economic empowerment.

KEY PILLAR

Transportation is another key pillar. Integrating sea, air, road, and rail services into a seamless network will strengthen Jamaica’s logistics capabilities. Environmental sustainability is equally critical, with the Riverton landfill representing both a challenge and an opportunity. Transforming the site into a waste-to-energy plant, recycling hub, or green innovation zone could tackle waste issues while generating economic value. The government has already announced plans to close Riverton and Retirement dumps in favour of a new sanitary landfill in Central Jamaica, though implementation remains uncertain. A robust system of waste segregation, recycling, and penalties for non-compliance would be essential for success.

Special Economic Zones (SEZs) must also align with this new vision. Rather than focusing only on warehousing, SEZs should encourage industries such as agro-processing, pharmaceuticals, electronics, and renewable energy technologies. Such industries reflect the higher value-added approach Jamaica needs to pursue. The distinction between a logistics hub and a value-added logistics partner is clear: the former simply moves goods, while the latter transforms them, empowers people, and builds inclusive infrastructure. To achieve this vision, Jamaica must invest in energy reform, transport integration, green innovation, and skilled labour development, ensuring that growth benefits the wider population. The shift represents a decisive moment for the country, with the potential to move beyond dependency and toward a resilient, value-driven economy.

Article submitted by Shekeva Miller, Marlon Smith, Carlton Wellington and Shari-Jo Wright, students of MSc.in Logistics and Supply Chain Management at The University of the West Indies, Mona. Send feedback to columns@gleanerjm.com