The divestment of Kingston Container Terminal (KCT) in Jamaica has been completed as a Terminal Link/CMA CGM consortium assumed operations of the facilities from July 1, local media reported.
The news followed the financial closure of a concession agreement for KCT between the Port Authority of Jamaica (PAJ) and Kingston Freeport Terminal Ltd (KFTL), a local company established by the consortium with the sole scope of acting as the signatory to concession.
The agreement includes a 30-year concession giving KFTL the right to finance, expand, operate and maintain the KCT, as well as transfer it at the end of the concession period.
The facilities were transferred to KFLT following payment to the PAJ on June 30 of upfront and other fees required under the terms of the agreement.
Following conclusion of the deal, which was signed by KFLT and the port authority in April 2015, all 834 employees of the terminal were reportedly made redundant, with redundancy payments made on the same day.
Local media claimed that the concessionaire has since offered jobs to most KCT’s employees and additional technical staff previously employed by the Shipping Association of Jamaica.
KFTL reportedly secured the funding required for Phase 1 capital works, with the concessionaire and lenders having signed the loan agreements and now working towards the completion of all conditions precedent to payment.