Logistics Management and the Impact of Jamaica's Logistic Hub

This article discusses the impact of Jamaica's logistic hub on local businesses and logistics management students. It explains the benefits of the logistic hub and the opportunities it creates for the logistics industry. The article also covers the controversy surrounding the project and the importance of meeting expansion criteria. The logistic hub is expected to increase GDP and create jobs in various sectors, including maritime, supply chain, data, communication, aviation, and road. The article emphasizes the importance of education and training for logistics development and highlights the role of the Caribbean Institute of Logistics and Transport in providing professional courses and degree programs in logistics.

Running Head: SUPPLY CHAIN 1
LOGISTICS MANAGEMENT
Student Name-
University Name-

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What the logistics hub means for the local businessman and each Jamaican and how will it
affect you as a Logistics Management Student?
Introduction
Globalization is highly driven through technological innovation and has helped in
making the business transaction more quick and easy among states. It has also increased the
approach to domestic market and trade of goods and services. Logistic hubs permit the
companies to handle their transportation requirement by applying cost-effective process
through sharing the resources, such as equipment, warehousing, and personnel (Hay, 2019).
Jamaica Logistic hub project intends to create the strategic geographic location of the island
more attractive for big ships, who can ply the Panama Canal (An Introduction to Logistics
Hubs, 2013).
Logistic hub in Jamaican’s
The logistic hub built in Jamaica had become the most controversial topic for many
years (Hay, 2019). Various believe that proposed plan of government will be hazardous to the
ecosystem of the nation, by including arguments like the requirement to create a balance
between the pursuits of government to make money and safeguarding the environment of the
country. In opposite to this, there are many others, who think that development of logistic hub
in Jamaica will inevitably increase the stagnant economy of the country, as it’s the new
investment avenue, which will immensely expand the economy (Hay, 2019). Various
researchers, including both government and independent researchers, have mentioned that to
implement the logistics hub in Jamaica, it is vital that specific criterion of expansion
capability of location should be met.
Jamaica development as the international logistic hub implies a 17% increase in GDP
in the coming 6-8 years, according to Anthony Hylton, Industry Minister. The trade

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opportunities increased after the Panama Canal expansion, the 2014 World Cup, which was
held in Brazil, and Olympics that were held in 2016. Even the Brazilian government
approved a package of $880 million for improving the infrastructure that resulted in the
massive movement of goods and services (Johnston, 2013). From this $26 billion was
approved for specifically logistic related activities in Jamaica. From the viewpoint of marine,
all the destinations can reach out within 2-3 days. It means, this hub is open for 600000
manufacturers located in China and many others are from the market of Asia Pacific, and all
can be reached efficiently (Johnston, 2013).
Jamaica is the central place for America for conducting logistic related activities.
Jamaica has come up as the platform which implement digital technology for the purpose of
planning the design, packaging, production, goods distribution, financial related services,
airplane and ship repair, tourism, shortage of all natural resources, legal services, and many
more (Growth & Jobs: Taking Flight: Jamaica’s Logistics Hub Initiative Looks to Transform
the Country’s Economy, 2018). The logistic hub of Jamaican will force the policymakers as
well as local businesses at considering the value chain and supply chain from
conceptualization of ideas towards designing, research, and development, production, all the
way from consumption and main focus placed towards sustainable, recycling and adding
value (Growth & Jobs: Taking Flight: Jamaica’s Logistics Hub Initiative Looks to Transform
the Country’s Economy, 2018). It implies that country and stakeholders are consistently and
continuously addressing and re-addressing the idea of doing things and trying to make it
better.
Importance of logistic hub for Jamaica local businesses
Special economic zone (SEZs) implementation in proximity to all the essential ports
has increased opportunities for companies, who are interested in the manufacturing sector of

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the country and want to take benefits from the state connectivity of island (What Would a
Logistics Hub Mean for Jamaica’s Economy? 2019). All elements of logistic hubs are
synergized to show the logistic services to the global community of trade. The essential
elements of global logistic hubs are the expansion of the collaboration with the global
partners of Jamaica and encouragement for the financing and investment of private sector by
the support of the partnership between private and public companies (What Would a
Logistics Hub Mean for Jamaica’s Economy? 2019). This initiative is quite helpful for the
global and local industries and will provide extensive opportunities.
This initiative of the logistic sector implies that global businesses and investors will
invest in Jamaica within the market distance of 800 million people, and will provide benefits
to local businesses (Ehlers, Asbjornslett, Rodseth & Berg, 2014). The logistics hub
development and SEZs shows the critical opportunities for businesses involved in
outsourcing, manufacturing, management of supply chain and various other logistic sector
segments (The Logistics Hub: A Platform for the Efficient Flow of Business Activity, 2015).
The Ministry of Investment, Industry, and Commerce is also set up to work for framing the
integrated policy for the Special Economic Zone operations, that will support in building
sustainable link with local businesses; promoting the partnership between private and public
companies; transfer of technology, innovation in business, formation of human capital and
entrepreneurship, and make it cost-effective, efficient and bolstered through the support of
competitive incentives by following global standards (The Logistics Hub: A Platform for the
Efficient Flow of Business Activity, 2015).
Implementation of the logistics hub will be focused towards structural reforms and
economic policies, which improve the economic competitiveness and will enable Jamaica to
achieve progress in the area of transhipment by including substantial domestic value to goods
present on the hub (Anderson & Longsworth, 2016). To compete in the international

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economy, it is vital that local businesses should be importantly improved as per global
standards (Anderson & Longsworth, 2016).
Impact of Logistic Hub on Logistics Management Student
The logistic Hub of Jamaica is all related to the job, progress, and growth, and it’s all
attained through education, training, and location of the natural asset (Ehlers, Asbjornslett,
Rodseth & Berg, 2014). The logistic hub create many jobs in the new areas, like maritime,
supply chain, data, communication, aviation, road and many others in the area of optimisation
of value chain, in-company logistics like sorting, picking and assembling goods,
computerization of warehouse jobs, and other jobs related with selling ticket and for that
sound knowledge of English is required (Rezapour, 2011). Logistics management students
who are interested in making their career in logistics and shipping are at the highest
advantage after Panama Canal get expanded (Ehlers, Asbjornslett, Rodseth & Berg, 2014).
Minister of Industry identifies education as the most important for logistics
development. Caribbean Institute of Logistics and Transport has started various services
related to supply chain, train logistics, and staff a plan fulfilment (Ehlers, Asbjornslett,
Rodseth & Berg, 2014). The institute offers the professional logisticians profession, like
ACCA of Accountants, along with degree program in logistics and MBA. Caribbean Institute
of Logistics and Transport also links with other institutes in Africa, Europe, America and
Asia for assessing the research, courses and international qualification for its students (Kara,
Sabuncuoglu & Bidanda, 2014). The Jamaica logistic hub will also hire students in the area
of expeditors, computer-aided cranes, logistics technicians, aircraft mechanics, Fulfilment
manager, and integrators and for various another post, and for that logistics degree is a must.
It is analysed that paperless custom services will make the system more attractive. Even
FedEx will create around 25000 jobs, which is the largest freight airport (Ehlers, Asbjornslett,

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Rodseth & Berg, 2014). It is noted that cargo airport is the new career opportunity for
students. Other job opportunities will be freightliners in Jamaica for students (Ehlers,
Asbjornslett, Rodseth & Berg, 2014).

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References
An Introduction to Logistics Hubs. (2013). Retrieved from
http://jamaica-gleaner.com/gleaner/20131001/shipping/shipping1.html
Anderson, R., & Longsworth, L. (2016). Economic Transformation of Jamaica: Policies,
Competitiveness and Technology Innovations. Trafford Publishing
Ehlers, S., Asbjornslett, B. E., Rodseth, O. J., & Berg, T. E. (2014). Maritime-Port
Technology and Development. CRC Press
Growth & Jobs: Taking Flight: Jamaica’s Logistics Hub Initiative Looks to Transform the
Country’s Economy. (2018). Retrieved from
http://jamaica-gleaner.com/article/news/20180904/growth-jobs-taking-flight-
jamaicas-logistics-hub-initiative-looks-transform
Hay, P. (2019). What History Means for Jamaica’s Logistics Hub. Retrieved from
https://www.caribjournal.com/2013/05/30/paul-hay-what-history-means-for-jamaicas-
logistics-hub/
Johnston, F. (2013). Jamaica Logistics Hub - for God's sake don't blow it! Retrieved from
http://www.jamaicaobserver.com/columns/Jamaica-Logistics-Hub---for-God-s-sake-
don-t-blow-it-_13534229
Kara, B. Y., Sabuncuoglu, I., & Bidanda, B. (2014). Global Logistics Management. CRC
Press
Rezapour, S. (2011). Logistics Operations and Management: Concepts and Models. Elsevier
The Logistics Hub: A Platform for the Efficient Flow of Business Activity. (2015). Retrieved
from http://www.miic.gov.jm/content/logistics-hub-platform-efficient-flow-business-
activity

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What Would a Logistics Hub Mean for Jamaica’s Economy? (2019). Retrieved from
https://www.caribjournal.com/2012/09/27/what-would-a-logistics-hub-mean-for-
jamaicas-economy/