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The importance of good infrastructure
Dennis Morrison
Sunday Observer, May 20, 2007
Two weeks ago, Prime Minister Simpson Miller signed the contract with Bouygues, the French contractors who are involved in building Highway 2000, for one segment of the Spanish Town to Ocho Rios link of the highway.
Dennis Morrison
Despite an in-depth presentation by the head of the National Road Operating and Construction Company [NROCC] - the government company that is handling the project - on the details of the project, hardly any information has been disseminated by the members of the press who were present.
It is hard for me to understand how such a significant step in Jamaica's infrastructure development could have been so ignored.
This section of the island's infrastructure has become, in the minds of many observers, the most critical bottleneck in our road network. Not only is Flat Bridge outdated, but traffic through the Bog Walk Gorge is constantly being disrupted by flooding and landslides which seem to be occurring with increased severity. It is incomprehensible that the Flat Bridge still constitutes a linchpin for the movement of traffic from the north to the south and centre of the island. And this is why I would have expected the news of the road project to have been highlighted.
The contract for this toll road is valued at US$100 million and is for the Linstead to Moneague segment, which will be a modern four-lane motorway that will bypass the troublesome Mount Rosser.
It is scheduled to be completed in 30 months and, judging by the past performance of the contractor, there is every reason to believe that the job will be finished on time, and within budget. The entire Spanish Town to Ocho Rios link will be made up of five segments, three of which will be tolled and two others that will be free.
As the head of NROCC explained at the signing ceremony, this link will transform the movement of people and goods in ways that we are still not able to visualise.
For one, movement of goods from south to north of the country, which is growing rapidly as the economy of the northern coastal corridor expands, is going to be made vastly more efficient. Likewise, movement of people from the north, especially tourists, will be much easier. Cruise passengers who spend limited time on the island will then be able to undertake day trips to different parts of the island rather than being limited to the north-coast region.
Stopover visitors, who may now be turned off by the tedium of spending a whole day to get from their resorts in the north to attractions in the south and centre will find it an enjoyable experience. Already, investors in attractions on the south side of the island like Jamalco, who are developing the Clarendon Express, are anticipating the ease of access that the highway link to Ocho Rios will provide for their potential customers. This attraction will involve a railway ride from Rocky Point to the Mocho Mountains, with many other interesting features built around cultural heritage assets owned by the company.
These and other economic effects will, ultimately, bring about changes in settlement patterns and the spatial dimension of the country's economy. Business people who think strategically will, no doubt, grasp the long- term implications.
The slighting by the press of this important road project reflects their seeming lack of understanding of the central importance of physical infrastructure development to the stimulation of investment and the acceleration of economic growth.
After all, investment is the main driver of economic growth, but a country's investment process is heavily dependent on the state of its infrastructure. Since infrastructure development is not a short-term exercise and immediate results in terms of job creation are not likely, people will tend not to be excited by news of infrastructure projects like the Spanish Town to Ocho Rios highway.
But, investors in hotel and other projects now underway in Jamaica have stated explicitly that one of their key considerations for carrying out such investments is the major works that have and are being undertaken to transform the island's road, water, and airport infrastructure. Most recently, Mr Christopher Anand of the Tavistock Group made clear to a Jamaican audience that without these developments his group would not have had a second thought about getting involved in the Harmony Cove development which is expected to be Jamaica's largest ever investment project.
With the infrastructure foundation now laid, Jamaica is certain to see tens of thousands of new jobs being created each year over the next decade, as new resorts are built and all the linkages to other sectors such as agriculture, attractions, manufacturing, transportation, business services, personal services, and entertainment, are established.
Indeed, thousands of new jobs both direct and indirect have been created by new hotels now in operation in Negril, Runaway Bay, Ocho Rios, and Westmoreland. In the coming months, many more jobs will flow from other resorts to be opened in the Lucea area and the Rose Hall area of Montego Bay.
Even larger numbers of people will find employment when projects such as Harmony Cove, which are still in the planning stages, begin construction and eventually come into operation. The Harmony Cove development itself is expected to create 5,000 permanent jobs and will generate at least another 15,000 indirect jobs.
And of course there are several other major resort projects along the North Coast corridor for which construction will start later this year, as well as projects in other parts of the island which will come on-stream in the following years. All told, more than 20,000 new hotel and other rooms will be built by 2015, nearly doubling our room stock and creating no less than 100,000-120,000 direct and indirect jobs.
The extent of the multiplier effect of new investments in tourism will, however, depend on the dynamism of the local private sector. Small, medium and large businesses must get involved by seeking opportunities and organising themselves to build relationships with investors in the sector.
Jamaica Trade and Invest, JTI, [formerly JAMPRO] have been hosting workshops and seminars bringing together investors and potential business partners in related industries. After the initial hesitancy on the side of local businesses who doubted whether the new hotel projects would materialise, there is now growing interest and business deals are being struck.
Up to now, local business associations have not come forward to co-ordinate and give leadership to their members on how to grasp the opportunities being created for the supply of inputs to the tourist industry. While JTI must continue to assist with match-making between local and foreign investors, it is the private sector that will have to drive the process. The state can be a catalyst but, as the PSOJ has asserted, it is the private sector that is the engine of production and growth.
Dennis Morrison
Sunday Observer, May 20, 2007
Two weeks ago, Prime Minister Simpson Miller signed the contract with Bouygues, the French contractors who are involved in building Highway 2000, for one segment of the Spanish Town to Ocho Rios link of the highway.
Dennis Morrison
Despite an in-depth presentation by the head of the National Road Operating and Construction Company [NROCC] - the government company that is handling the project - on the details of the project, hardly any information has been disseminated by the members of the press who were present.
It is hard for me to understand how such a significant step in Jamaica's infrastructure development could have been so ignored.
This section of the island's infrastructure has become, in the minds of many observers, the most critical bottleneck in our road network. Not only is Flat Bridge outdated, but traffic through the Bog Walk Gorge is constantly being disrupted by flooding and landslides which seem to be occurring with increased severity. It is incomprehensible that the Flat Bridge still constitutes a linchpin for the movement of traffic from the north to the south and centre of the island. And this is why I would have expected the news of the road project to have been highlighted.
The contract for this toll road is valued at US$100 million and is for the Linstead to Moneague segment, which will be a modern four-lane motorway that will bypass the troublesome Mount Rosser.
It is scheduled to be completed in 30 months and, judging by the past performance of the contractor, there is every reason to believe that the job will be finished on time, and within budget. The entire Spanish Town to Ocho Rios link will be made up of five segments, three of which will be tolled and two others that will be free.
As the head of NROCC explained at the signing ceremony, this link will transform the movement of people and goods in ways that we are still not able to visualise.
For one, movement of goods from south to north of the country, which is growing rapidly as the economy of the northern coastal corridor expands, is going to be made vastly more efficient. Likewise, movement of people from the north, especially tourists, will be much easier. Cruise passengers who spend limited time on the island will then be able to undertake day trips to different parts of the island rather than being limited to the north-coast region.
Stopover visitors, who may now be turned off by the tedium of spending a whole day to get from their resorts in the north to attractions in the south and centre will find it an enjoyable experience. Already, investors in attractions on the south side of the island like Jamalco, who are developing the Clarendon Express, are anticipating the ease of access that the highway link to Ocho Rios will provide for their potential customers. This attraction will involve a railway ride from Rocky Point to the Mocho Mountains, with many other interesting features built around cultural heritage assets owned by the company.
These and other economic effects will, ultimately, bring about changes in settlement patterns and the spatial dimension of the country's economy. Business people who think strategically will, no doubt, grasp the long- term implications.
The slighting by the press of this important road project reflects their seeming lack of understanding of the central importance of physical infrastructure development to the stimulation of investment and the acceleration of economic growth.
After all, investment is the main driver of economic growth, but a country's investment process is heavily dependent on the state of its infrastructure. Since infrastructure development is not a short-term exercise and immediate results in terms of job creation are not likely, people will tend not to be excited by news of infrastructure projects like the Spanish Town to Ocho Rios highway.
But, investors in hotel and other projects now underway in Jamaica have stated explicitly that one of their key considerations for carrying out such investments is the major works that have and are being undertaken to transform the island's road, water, and airport infrastructure. Most recently, Mr Christopher Anand of the Tavistock Group made clear to a Jamaican audience that without these developments his group would not have had a second thought about getting involved in the Harmony Cove development which is expected to be Jamaica's largest ever investment project.
With the infrastructure foundation now laid, Jamaica is certain to see tens of thousands of new jobs being created each year over the next decade, as new resorts are built and all the linkages to other sectors such as agriculture, attractions, manufacturing, transportation, business services, personal services, and entertainment, are established.
Indeed, thousands of new jobs both direct and indirect have been created by new hotels now in operation in Negril, Runaway Bay, Ocho Rios, and Westmoreland. In the coming months, many more jobs will flow from other resorts to be opened in the Lucea area and the Rose Hall area of Montego Bay.
Even larger numbers of people will find employment when projects such as Harmony Cove, which are still in the planning stages, begin construction and eventually come into operation. The Harmony Cove development itself is expected to create 5,000 permanent jobs and will generate at least another 15,000 indirect jobs.
And of course there are several other major resort projects along the North Coast corridor for which construction will start later this year, as well as projects in other parts of the island which will come on-stream in the following years. All told, more than 20,000 new hotel and other rooms will be built by 2015, nearly doubling our room stock and creating no less than 100,000-120,000 direct and indirect jobs.
The extent of the multiplier effect of new investments in tourism will, however, depend on the dynamism of the local private sector. Small, medium and large businesses must get involved by seeking opportunities and organising themselves to build relationships with investors in the sector.
Jamaica Trade and Invest, JTI, [formerly JAMPRO] have been hosting workshops and seminars bringing together investors and potential business partners in related industries. After the initial hesitancy on the side of local businesses who doubted whether the new hotel projects would materialise, there is now growing interest and business deals are being struck.
Up to now, local business associations have not come forward to co-ordinate and give leadership to their members on how to grasp the opportunities being created for the supply of inputs to the tourist industry. While JTI must continue to assist with match-making between local and foreign investors, it is the private sector that will have to drive the process. The state can be a catalyst but, as the PSOJ has asserted, it is the private sector that is the engine of production and growth.
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