Lydford Logistics — creating, adding and capturing value for Jamaica
A project taking shape under the logistics hub framework.
Lydford Logistics, yet another project proving why Logistics Matters, Jamaica #logisticsmattersjamaica.
Located in Lydford, St. Ann, Lydford Logistics is a food third-party logistics (3PL) provider (more on why this is so special later), agro-processor and distributor. It is also a special economic zone (SEZ).
All of this while important only gives a few clues about the value that this company, as the Singaporeans would say, is bringing to the table by ‘creating, adding and capturing value’ for the Jamaican economy and people. Or as I call it value stacking.
On an important side note, while SEZs are frequently associated with the business process outsourcing (BPO) sector, in Jamaica, not all SEZs are BPOs and not all BPOs are SEZs. While the BPOs are an important sector, they are but one of a variety of economic activities undertaken in the SEZs in Jamaica, as Lydford Logistics demonstrates.
The SEZ regime is one of chief but not exclusive policy instruments of the Government of Jamaica for the implementation of the Logistics Hub Initiative. Jamaica’s SEZ regime was designed to accommodate a variety of industries ranging from BPOs to manufacturing to logistics to creative industries, etc.
Special Economic Zones
While the SEZ regime was designed not to regulate any specific industry and takes a negative list approach, meaning it has a list of industries that are prohibited such as banking, retail, tourism, etc, all others are permissible.
In Jamaica SEZ’s are regulated by the Jamaica Special Economic Zone Authority (JSEZA).
As the regulator of zones in Jamaica, JSEZA has a mandate implementing the SEZ regime to act as an economic development agency. This is expressed very early in the application evaluation process to determine what sustainable value an investment will bring to Jamaica and carried all the way through to the aftercare services it offers its clients and how it regulates and monitors the SEZs.
In carrying out its functions as an economic development agency, JSEZA has decided to focus its attention on eight industries that it believes can make a real socio-economic impact on Jamaica in the short to medium term. It is important to note that while these industries are JSEZA’s priority it is not to the exclusion of any other industry that is not on the negative list as mentioned earlier.
JSEZA Priority Industries and types of zones.
Happily, Lyford Logistics falls under two of the priority industries: Logistics and supply chain management and food manufacturing. And who knows, it could have scope for later expansion into such things as: Pharmaceutical, Biotechnology, Medical Devices and Beauty Care.
Who knows?
The UN Secretary-General, Antonio Guterres, said it best:
among the most important instruments for attracting investments are Special Economic Zones.
Lyford Logistics — creating, adding and capturing value
How is Lydford Logistics creating, adding and capturing value for the Jamaican economy and people?
Its website’s About pages gives a few clues:
Lydford Logistics is Jamaica’s premier agriculture and food processing facility. Operating as a Special Economic Zone, this 180,000sq. ft. facility provides services in third party logistics, farming and agricultural coordination, juice manufacturing, cannabis processing for pharmaceutical use, and a state of the art baking facility serving the island’s hotel, tourism, and food service infrastructure. The 3L facility aims to direct shipping routes, to over 30 million consumers across diverse markets in Cuba, Haiti and the Dominican Republic.
An additional clue came in the form of the recent visit and tour by Floyd Green, State Minister in the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF).
The Minister’s visit is part of the Government’s efforts to shore up the agricultural sector due to the fallout from the Covid -19 pandemic. In this instance, MICAF is on the hunt for both dry and cold storage of which Lydford Logistics has in spades. Additionally, its facilities are Hazard Analysis Critical Control Points (HACCP) certified meaning they have attained a globally recognized standards certification for handling food.
Standards certification, such as HACCP, the regulatory and operational proof that a company is conducting itself at a global level. Standards certification are playing an increasingly important role in opening up and maintaining access to overseas markets. Standards are like a visa in your passport, it says you have been vetted and are permitted to enter a country.
With HACCP certification, Lydford Logistics is saying that all the food we handle, process or transport is done with the highest level of care and diligence — to global standards.
This is what Jamaica’s logistics hub initiative and our transformation into a logistics centred economy are all about.
Logistics Hub Framework
Another part of MICAF’s effort was to also find ready and alternative markets for the crops by our hard-working farmers hit hard by the economic fallout from Covid-19. Lydford Logistics has two ready solutions:
- The first is that Lydford Logistics itself is a food processor, buying produce from local farmers to support its operations. Therefore, it already has backward linkages from the SEZ to the local economy demonstrating the spillover impacts the SEZs are intended to have.
- The second and this is where their business model becomes quite innovative, as a food 3PL Lydford Logistics offers farmers and agro-processors who may not have the infrastructure, the capacity or the wherewithal to process, package or move their products in the local, regional or international markets to be able to by using the company’s services.
This is logistics. And why Logistics Matters, Jamaica.
Lydford Logistics is a great example of how government policy and investments, especially infrastructure investment can spur and support a variety of private-sector initiatives. All of which in turn contribute to the transformation of our economy into a logistics centred one.
Let us take for example the North-South highway.
The North-South highway is critical to the operations of Lydford Logistics. The company is located close to the Lydford, St Ann, exist of the highway which functions as a key connector for the company. The highway supports Lydford Logistics’ operations in food logistics (3PL), distribution and argo-processing by connecting it to the port of Kingston and its distribution network islandwide.
To accomplish all of this the company doesn’t just rely on an improved road network. It also relies on technology and data. Data is often an overlooked part of logistics, largely because it is not seen. However, the impact of data is definitely felt.
This is why I have maintained that Jamaica’s Global Logistics Hub Initiative is Jamaica’s response to building a resilient and sustainable nation in the Fourth Industrial Revolution. And now with the Covid-19 pandemic, the Logistics Hub Initiative is critical to a restructured and resilient Jamaican economy.
Conclusion
Lydford Logistics, yet another project proving why Logistics Matters, Jamaica #logisticsmattersjamaica.
As the company takes shape under the logistics hub framework it is also proving why SEZs matter to Jamaica. #Jamaicaconnects.
Originally posted on Logistics Matters Jamaica on Medium on May 15, 2020.
