Chinese firm now has full control of Kingston Freeport management company
By ohtadmin | NY CARIB NEWS
China Merchants Port Holdings which managed Kingston Freeport Terminal Limited (KFTL), under a 30-year concession agreement with the Government of Jamaica now has full control.
The agreement of the 30-year concession included a subsidiary company, Terminal Link, which was a joint venture between CMA CGM, an International French-led shipping, and port management firm holding 51 percent and China Merchants holding 49 percent, but since CMA CGM sold its interest in KFTL, China Merchants now stands alone with ownership.
Kingston Freeport was the company used by the Terminal Link-CMA CGM consortium to operate, Kingston Container Terminal under the 30-year deal signed with The Port Authority of Jamaica (PAJ) in April 2015 to finance, expand, operate and maintain the Port of Kingston.
The overall deal includes eight terminals and is worth US$814.78m.
The PAJ said that “The Government of Jamaica was notified by CMA CGM of the intention to transfer KFTL from CMA Terminals to Terminal Link, ahead of the transaction being announced,” and that the deal brought with it several successes, including a US$250 million investment in dredging the access channel to the harbor and in upgrading the equipment and facilities.
Larger size vessels would also now be able to enter the terminal.
Counter to this agreement, the US government is taking an interest in Chinese investment in Jamaica, especially the port.
In the meantime, the Donald Trump Administration is reiterating its concerns about Chinese investment in Jamaica. Representative, US Ambassador to Jamaica Donald Tapia was very vocal about America’s concerns.
He is suspicious about having communist involvement in Latin America and Africa. He is also is encouraging the Jamaican Government to be cautious regarding these massive Chinese investments in the country.
MORE:
Jamaicans must read China’s record, not just its lips
Is China Taking Over the Caribbean?
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