KINGSTON, Jamaica – Jamaica’s Minister of Transport, Works and Housing, Hon. Dr. Omar Davies, says local contractors must be prepared and be willing to collaborate with each other in order to capitalise on opportunities that will emerge in the construction sector and compete effectively with foreign companies, as the country positions itself to become a logistics hub in the Caribbean and Latin American region.
Speaking at a symposium organised by the Incorporated Master Builders’ Association (IMAJ) and sponsored by the Jamaica National Building Society (JNBS) at the Jamaica Conference Centre in Kingston on October 15, Minister Davies said there will be many opportunities for the construction sector as the Government facilitates development of the Kingston Harbour and Portland Bight, other port facilities and pursue other infrastructural projects.
“In addition to new berths to support port expansion we anticipate there will be significant landside development, such as the construction of new storage for containers; the construction of warehouses for agro storage; assembling, manufacturing and other logistics facilities,” he revealed pointing out that the Portland Bight transshipment facility at full blast should generate 2,000 jobs in the construction sector alone.
He added that the expansion of marine services should generate a host of opportunities in dry docking, ship repairs, bunkering and tugs and towing; as well as, support services such as human resource development and financial services.
However, the Minister emphasised that players in the construction sector needed to adopt new approaches to prepare themselves to make the best of the opportunities; and must, therefore, collaborate and cooperate to remain competitive.
He revealed that there are now several foreign contractors working in Jamaica who are providing services that could have been done by Jamaicans.
“But we need to reach the stage where domestic entities are willing to collaborate with each other in order to compete against large foreign entities,” he said, noting that while the Government will do all it can to support the local sector, it is not possible for local entrepreneurs to expect protection from the state.
He urged members of the IMAJ and other players in the sector attending the symposium to ensure that their level of service was world standard and that they have the necessary certification to carry out their services.
“The services provided must be competitive, efficient and must be comparable against international benchmarks,” he maintained.
In response to the Minister’s remarks, President of the IMAJ, Carvel Stewart called for Government support to “remove obstacles to access.” He wants the Government to look at implementing a policy that mandates foreign entities to partner with local companies in carrying out their ventures.
He also urged that the margin of preference given to local players for government contracts under the procurement guidelines be enforced.
“I also ask that the implementation and the re-registration of contractors by the National Contracts Commission and Office of the Contractor General be properly reviewed. And, I use the word ‘properly’ because I am going to be told that it was recently reviewed,” he said, arguing that the issue was never properly addressed. He says there are too many requirements for local contractors.
“So it needs a ‘proper’ review to the extent of judicial review,” he said.
Beyond the opportunities and challenges related to the construction sector, Tiffany Gordon, Executive Mortgage Sales at Jamaica National Building Society (JNBS), the major sponsor of the symposium, said that in addition to the opportunities being provided for the sector, government will need to provide a supporting environment to ensure the sustainability of the jobs to be created.
“Both government and private sector must make a firm and tacit agreement to pursue economic and social development without compromising the environment; while due consideration must be given to matters, such as the impact of climate change given that we are island state,” noting within that context that there must be speedier efforts to institute new building codes and develop stronger policies on land usage.
She also emphasised the need for a less bureaucratic and more efficient approval process to ensure the timely delivery of projects.
“Developments will also result in major population shifts, hence the need to ensure that the infrastructure will support adequate residential and commercial needs. At the same time, the channels of communication to attract local and international investors must be open; and information made available to encourage the kind of participation, which will make the Hub a reality,” she said.
