Logistics Management and the Impact of Jamaica's Logistic Hub

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