Logistics Hub: Impact on Local Businessmen, Jamaicans, and Logistics Management Students

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This essay discusses the meaning of the logistics hub to the local businessman and each Jamaican and its effects to me as a Logistics Management student. It covers the benefits of the logistics hub, including job creation, improved infrastructure, and increased national income.

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Running head: SUPPLY CHAIN 1
Supply Chain
Name:
Institution

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SUPPLY CHAIN 2
Introduction
Jamaica, like any other country in the world, seek jobs, growth, and prosperity for its
people. The logistics hub is a major strategy that is being used to attain these results. The
strategic location of Jamaica has made the island a suitable destination for investors The
Jamaican government has focused on a strategic method to change Jamaica into a global logistics
hub. The global logistics hub in Jamaica is a growth and development strategy that is geared
towards a logistic centered economy. The main aim of the initiative is to integrate Jamaica into
the global value chain. The logistic hub program intentions are to serve as a progress enhancer
for the development of an economy that is a logistics center. This essay addresses the meaning of
the logistics hub to the local businessman and each Jamaican and its effects to me as a Logistics
Management student.
Logistic Hub and the Local Businessman
The logistics hub to a businessman in Jamaica embraces wider elements supporting
quality standards infrastructure and reform agenda as well rules that are aimed at opening ways
for the growth of small to medium-sized enterprises (SMEs) sector. Through improved
infrastructure in the country, a Jamaican businessman will be able to carry on business activities
without hindrance and this, in turn, increases their profit margin (Anderson, 2017). The logistics
hub initiative means that the Jamaican businessman will benefit from the efficient flow of
business activity through the unlocking of the private sector investment which is not only to
foreign investors but also to large local investors.
The logistics hub will make Jamaica be an arena for the use modern technology to plan
the design, packaging, production, and distribution of goods, a strategic depot for the storage of
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SUPPLY CHAIN 3
natural resources, financial services, ship and airline repair, tourism, and legal services (Martí,
Puertas & García, 2014). More so, the logistics hub initiative will force policymakers and
businessman in Jamaica to look at the value chain and supply starting from research and
development to conceptualization of ideas, production, and design up to consumption putting
greater emphasis on sustainability and recycling programs in order to cope with both local and
global competition in the business industry. In addition, the logistics hub will give Jamaica a
greater opportunity to handle the high volumes of transshipped cargo and the suggested
development of an economic area will help in the expansion of the nation’s manufacturing sector
(Mohammadi, et al., 2016). Therefore, a businessman in Jamaican will be able to import and
export large of their products due to the efficient shipping routes to America that will be created
through the expansion of the canal.
Logistic Hub and each Jamaican
The infrastructural development in Jamaica which comes about as a result of logistic hub
leads to a certain degree of change to the environment. The government will have to work with
the stakeholders involved and be guided by the environmental impact assessments in order to
reduce the risk to the natural environment. This means that each Jamaican will live in a safe
environment. On the other hand, the logistics hub initiative will bring international investor as
well as other local business people will invest in the country due to the improved airline,
maritime, and other infrastructures (Neeraja, Mehta & Chandani, 2014). This will lead to the
growth of the economy hence lowering the living standards of each Jamaican. The logistic hub
also means that each Jamaican will have access to modern technology to carry out their daily
activities in different aspects of life. The Jamaican citizens will be able to transact business, carry
out their studies and access other services in an easy way.
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SUPPLY CHAIN 4
The logistics hub will increase the national income and create wealth by decreasing
transport cost, distribution and storage costs from the producer to the consumer (Pinnock &
Ajagunna, 2014). The reduction such costs will reduce the final cost of the products making
them affordable to each citizen in the country. Besides, the reduction in logistics costs affects
growth and competition as more efficient logistics and transportation systems come up hence
production of high standard goods.
Logistic hub means that the Jamaican citizens will get job opportunities in different
developed infrastructural sectors and even tourism sector and produce a country that has a highly
skilled workforce that is brought by high competition in the market. Due to increased
competition in the market, people will have to give good services to maintain their place in the
business market (Ramanathan, 2014). This reduces the level of unemployment in the country and
high dependence level on the government. Additionally, the logistics hub will bring about
cultural exchange which can change the lifestyle of Jamaicans. As citizens of other nations come
in Jamaican for business purposes, tourism and employment purposes the daily interactions bring
about cultural exchange in dressing, language change, and others.
Logistics Hub and the Logistic Management Student
The development of the logistics hub in Jamaica is set to create over 2,500 high-level
jobs in the field of logistics, engineering, manufacturing among other sectors (Rivera, Gligor, &
Sheffi, 2016). Thus, as a logistic management student, this means that I should be prepared to
take advantage of these employment opportunities which will emerge as a result of the logistics
hub initiative. The logistic hub provides a conducive atmosphere for the creation of several jobs
that comprise of assembly, packaging and labeling, dry docking and machinery repair,

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SUPPLY CHAIN 5
maintenance, legal, administrative, and technical jobs. As a result, there will be no need to
migrate to other regions in such of jobs as the logistics management students will be the ones
called on to take up the economic opportunities once the logistics hub initiative is actualized
(Thompson, 2015). Nonetheless, apart from the high labor demand, opportunities will also be
available for the logistic management students who have got entrepreneurial abilities.
Additionally, being a logistic management student, the logistic hub affects me in that I
have to possess the ability to effectively communicate in a foreign language such as French and
Chinese. The ability to communicate in a foreign language is a useful skill in an environment
which is logistics centered (Ruiz et al., 2018). For instance, with several global investors setting
up their shops in the country, possessing the ability to speak one or more foreign languages will
put me a step ahead of the rest of the job seekers. Further, to effectively prepare myself to take
advantage of the logistics hub as a logistic management student, skills training and certification
is of the essence if I am to benefit from the initiative (Mellat & Spillan, 2014). To effectively
achieve this, I should continue to further my studies through recognized tertiary and vocational
training institutions that include Human Employment and Resource Training (HEART),
Caribbean Maritime Institute (CMI) among other recognized institutions.
Conclusion
Due to its strategic position, Jamaica has become a suitable destination for foreign
investors. As a result, the Jamaican government has come up with a development initiative of
developing Jamaica into a global logistics hub. With the implementation of this initiative, the
local businessman will benefit in that it will promote the growth of medium-sized enterprises.
The logistic hub will increase the national income thus making each Jamaican to have an
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SUPPLY CHAIN 6
improved lifestyle. To the logistic management students, the logistics hub will create job
opportunities thus few will travel outside the country seeking employment.
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SUPPLY CHAIN 7
References
Anderson, K. R. (2017). Tourism and global logistics hub development in the Caribbean: Will
there be a symbiotic relationship?. Worldwide Hospitality and Tourism Themes, 9(1),
105-115.
Martí, L., Puertas, R., & García, L. (2014). The importance of the Logistics Performance Index
in international trade. Applied economics, 46(24), 2982-2992.
Mellat-Parast, M., & E. Spillan, J. (2014). Logistics and supply chain process integration as a
source of competitive advantage: An empirical analysis. The International Journal of
Logistics Management, 25(2), 289-314.
Mohammadi, M., Tavakkoli-Moghaddam, R., Siadat, A., & Dantan, J. Y. (2016). Design of a
reliable logistics network with hub disruption under uncertainty. Applied Mathematical
Modelling, 40(9-10), 5621-5642.
Neeraja, B., Mehta, M., & Chandani, A. (2014). Supply chain and logistics for the present day
business. Procedia Economics and Finance, 11, 665-675.
Pinnock, F. H., & Ajagunna, I. A. (2014). From Piracy to Transshipment: Jamaica's Journey to
Becoming a Global Logistics Hub. GraceKennedy Foundation.
Ramanathan, U. (2014). Performance of supply chain collaboration–A simulation study. Expert
Systems with Applications, 41(1), 210-220.
Rivera, L., Gligor, D., & Sheffi, Y. (2016). The benefits of logistics clustering. International
Journal of Physical Distribution & Logistics Management, 46(3), 242-268.

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Ruiz-Torres, A. J., Cardoza, G., Kuula, M., Oliver, Y., & Rosa-Polanco, H. (2018). Logistic
services in the Caribbean region: An analysis of collaboration, innovation capabilities and
process improvement. Academia Revista Latinoamericana de Administración, 31(3),
534-552.
Thompson, D. D. (2015). Disaster logistics in small island developing states: Caribbean
perspective. Disaster Prevention and Management, 24(2), 166-184.
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