PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

Although six critical factors were identified in explaining the Region’s weak performance
(Barbero, 2010), we shall only consider three here, namely;
1. the condition of the road network
2. performance of road freight transportation and
3. performance of SMEs in supply chain management and logistics.
The other critical factors - ports, railroad and trade facilitation, and border controls – are
not considered as critical to the thesis that this paper wishes to examine. The impact of
logistics cost on competitiveness, productivity, trade, integration, food prices, inequality,
and poverty is significant.
4.0 The Condition of Jamaica’s Road Network
While Jamaica boasts a uniquely extensive road network, under-investment in their
maintenance and rehabilitation has rendered them inadequate to withstand natural
disasters and support the significant increase in business, traffic growth and modern
responsive logistics operations. Improvements in road networks have a direct influence
on freight logistics and other mobility costs. But even when investments are made – they
are subject to damage from tropical storms, sub-optimal designs, or lack of maintenance
that increase travel times, reduce riding comfort, and increase stress to drivers. The
North Coast highway has made a phenomenal transformation to many communities on
the North Coast – such as increased investments, new urban developments, etc. However
logistics is still sub-optimal in certain sections due to extended travel times resulting from
its alignment through built-up areas and towns, with pre-cautionary speed limits. The
two major connectors between Kingston and the North Coast Highway, namely “Flat
Bridge/Bog Walk” and “Junction” Road involve long travel times which demand high
driver attention resulting in elevated stress levels.
4.1 Performance of Road Freight Transportation
The second factor is road freight transport that includes both movement and storage of
goods. The efficiency of a country’s trucking sector plays a role in its overall logistic cost
structure. Jamaica’s logistics profile shows high cost per tonne of moving goods between
the key producing and consumption centres. e.g. Kingston, Montego Bay, and Mandeville
(agro producing areas of St Mary, etc). This can be compared with international
comparators and regional competitors like Suriname, Barbados, Bahamas, Cost Rica, and
Dominican Republic.
In addition, issues exist with respect to mechanical condition and overloading of freight
trucks and the consequent damage to the road pavement and reduced road safety
135