I am captivated by Big Infrastructure. This blog offers insights into one of the most significant public investments ever made in Jamaica. Click to listen to my audio blog or read on to learn more. Written by me, Dr. Donald Farquharson, with a special shout-out to my FCJ team, big up!
Those of us from rural areas in Jamaica understand the pull factors that influence migration and these pull factors place urban areas in a superior position. The bright lights and the paved roads of urban areas offer social, cultural, economic and technological benefits when compared to rural areas. Against this backdrop, the Government of Jamaica (GOJ) decided to foster economic growth in rural towns through the development of “Urban Centres”. The creation of Urban Centres is undoubtedly one of the most innovative and necessary public policies in the past three (3) decades.
MD at Work
As was the case with me, every little boy and girl from the countryside dreams of going to the city to build a better, more prosperous life.
It’s heart breaking to see so many rural residents leave the safety and serenity of the countryside, only to end up living in ‘garrisons’ or substandard conditions in their pursuit of a better future. Even more troubling is the reality that many of the urban areas they migrate to are plagued by crime and violence. In fact, some of Jamaica’s most violent communities are located in cities, where the murder rates are among the highest in the country. As a nation, we must strive to create safe, purposeful, and functional spaces that are tailored to the specific needs of our people. This is not just about providing a roof over someone’s head, it’s about creating thriving, vibrant communities that people can truly call home.
I recall being asked by my Chairman, the Honorable Lyttleton "Tanny" Shirley, to visit the old Goodyear Factory in St. Thomas to survey the property and explore the possibility of deploying a transformative development on the site, which has been closed since 1987. As usual, my passionate and must-do chairman was in his element, inspiring me with the incredible possibilities at hand to put St. Thomas, “the forgotten parish”, on the map. The Factories Corporation of Jamaica (FCJ) team worked tirelessly to convince the stakeholders that this dream was realistic, credible, and achievable. Today, we are all proud to have transformed this vision from ‘Concept to Reality’.
Vision at Work
Policy Prescription
The FCJ is uniquely mandated to create commercial and industrial spaces that support Jamaica's business ecosystem. To fulfill this mandate, the GOJ has entrusted the FCJ with the following responsibilities:
Leverage assets: Effectively utilize both fixed and cash assets to ensure the corporation’s long-term viability.
Upgrade existing assets: Modernize and enhance the portfolio of properties currently owned and operated by the corporation.
Design and develop state-of-the-art facilities: Create cutting-edge Micro Business Parks, Integrated Business Centres, and Urban Centres that can drive economic growth and innovation.
Promote good governance: Ensure transparency and accountability in all dealings with major stakeholders, while executing the corporation’s responsibilities with excellence.
FCJ Performance Highlights
Goodyear - A Short History
The Goodyear Factory, owned by the Goodyear Tyre and Rubber Company, opened its doors in 1972. Over its twenty-five (25) years of existence, the Good Year Factory was considered as the ‘economic bedrock’ of Morant Bay and by extension St. Thomas and Portland. It served as a critical economic hub, drawing workers from over twenty-two (22) nearby communities and parishes. At its peak, the factory employed over one hundred and forty-eight (148) workers and produced tyres for both local and international markets. The facility was situated on approximately 25 acres of land in Springfield, Morant Bay.
The Goodyear factory featured over 130,000 square feet of installed floor space, which included factory, storage, and administrative areas. The facility was equipped with extensive support infrastructure, including a Jamaica Public Service (JPS) substation with a power transformer of over 5 megawatts, as well as 69 KV transmission and 24 KV distribution systems that serviced the property and the parish. The plant housed massive production equipment that consumed substantial energy and generated significant heat, requiring advanced systems for heat exchange.
Additionally, the largest aquifer in the parish is sighted on the Springfield lands. The property and its adjoining lands housed over thirteen (13) wells, providing water to the parish of St Thomas and supporting the tyre production processes. A water storage tank with a capacity of over 80,000 gallons ensured a consistent and contingent supply of potable water to the factory. The factory was surrounded by hundreds of acres of land used for farming cash crops and sugar cane.
The Goodyear Factory
Morant Bay Urban Centre - A New Chapter
The FCJ team must be lauded for ‘changing the game’ as it relates to the development of commercial and industrial spaces in Jamaica. Not only is FCJ managing over 1.8 million square feet of space, but it is now one of the largest developers in the country, as it aggressively develops another 2 million square feet of space across the island over the next five (5) years. These state-of-the-art spaces will be constructed in the Micro Business Parks, Integrated Business Centres and Urban Centres in rural capitals across the island.
MBUC Concept Plan
The origin of the MBUC concept stems from the various challenges faced by the current town of Morant Bay. These issues include outdated building designs housing both public and private sector businesses, aging infrastructure (roads, sewage, water, and utilities), traffic congestion, and a lack of available space for expansion.
As a result, the old Goodyear Factory site was selected as the ideal location to not only relocate but also expand the town’s infrastructure. Given the success of this redevelopment, the MBUC has now become the blueprint for all future Urban Centres to be constructed in Jamaica. It is novel in many respects and stands as the first of its kind.
Some of the unique features of the MBUC include:
Project Ownership & Leadership: The project is led by the GOJ, with the FCJ at the helm.
Special Purpose Vehicle (SPV): The SPV is a joint venture, comprising FCJ (GOJ), China Harbor Engineering Company (CHEC) (the contractor), and National Commercial Bank (NCB) (the loan provider).
Equity Distribution: The equity partners hold the following shares: CHEC – 30%, FCJ – 29%, NCB – 21%, with 20% remaining to be issued.
Partnership Contributions: FCJ provides the land, CHEC handles design and development, and NCB contributes cash.
Project Funding: This includes loans, as well as ordinary and preferential shares.
Anchor Clients: The development will house both public and private sector entities, including municipal corporation, courthouses, tax offices, Business Process Outsourcing (BPO) facilities, light industrial, financial, and retail services.
Security & Accessibility: The entire site will span 25 acres, secured by both the Jamaica Constabulary Force (JCF) and private security companies.
FCJ as Property Services Manager: The FCJ will also serve as the property services manager for the MBUC, which will house over 80 clients once completed.
The MBUC is designed to facilitate a diverse cadre of clients utilizing in excess of 500,000 square feet of space. The businesses will be selected to complement and support each other, rather than compete with one another. Every effort will be made not to duplicate the services that are offered by each client. A number of mature anchor businesses are included to ensure the viability of the development, including eleven (11) GOJ entities and several large private sector businesses.
To reduce operational costs to the clients, there will be shared services that will be covered under the maintenance fees that is charged to each client. Maintenance fees will include insurance, property taxes, power, Close Circuit Television (CCTV), telecommunication, Photovoltaic System (PVCS), water and water harvesting systems, security systems, solid waste collection, landscaping, building maintenance, etc.
Concept to Reality
Dr. DF Perspectives on Infrastructure Development
The following are my perspectives on key success factors for sustained infrastructure development in Jamaica:
Public and Private Sector Investments - A meaningful balance should exist in the type and complexity of infrastructure projects pursued by both the public and private sectors.
Infrastructure Projects - The public sector should lead investments in roads, water, housing, and Urban Centres, while the private sector should focus on utilities, green technologies, information and communication systems, climate change mitigation, and commercial and residential developments.
Project Conceptualization - Project planning and development should include the preparation of concept designs and high-level financing plans to have discussions with potential investors, financiers, and clients.
Project Feasibility - Every successful project should be assessed for feasibility by experts, such as Price Waterhouse & Coopers (PWC) or Ernest & Young (EY), who will conduct the necessary surveys, financial analyses, and business planning.
Project Financing – Identification of project funding at a reasonable interest rate is paramount. Commercial banks typically lend 70-90% of the construction costs. The developer should raise additional funding from venture capital, ordinary and preferential shares to meet the total development costs.
Loans and Dividends - Investors and lenders are drawn to a project by the yield earnings, project revenue and return on investments (ROI). Therefore, a sustainable and strong revenue model must be created by the developer.
Construction Agreement – Vital for success is the establishment of fixed construction agreements with experienced and credible engineering and construction companies with a strong track record.
Sales and Marketing – To ensure that the built infrastructure is fully utilized or occupied it should be affordable to clients. Marketing the development to potential clients at all stages of the development is very essential.
Project Management – Conduct aggressive quality assurance assessment, led by a project manager and supported by professionals such as quantity surveyors, architects, and engineers. Always mandate the contractor to contract qualified project management and engineering staff.
Monitoring and Maintenance – Implement continuous monitoring and evaluation across all phases of the project to ensure that the new infrastructure created meets all its intended objectives. Maintenance and operations of the built infrastructure require securing the services of a qualified and experienced property management company.
Finishing Touch
Conclusion: Building Jamaica’s Future
Big infrastructure projects like the MBUC are crucial drivers of economic growth and development in Jamaica. After decades of stagnation and low productivity, the country is now witnessing positive changes, fuelled in part by these transformative infrastructure developments.
The creation of Urban Centres, such as the MBUC, represents a proactive and robust policy approach to bridging the gap between urban and rural areas. These initiatives are not just about improving infrastructure, they’re about creating sustainable communities where people can live, work, and thrive.
As we continue to push towards Vision 2030 Jamaica, we remain committed to making Jamaica the place of choice to live, work, raise families, and do business, BIG business!
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I would like to extend my heartfelt congratulations to Tanny Shirley, Chairman, and Dr. Donald Farquharson, CEO of Factory Corporation of Jamaica, for their visionary leadership in conceptualizing, designing, and executing the MBUC project. It has been centuries since Jamaica last developed a township, and this initiative sets a new benchmark for rural economic development. The model employed here mirrors the approach China adopted in the 1980s, where tax incentives for investors fueled the most remarkable economic transformation in modern history. With forward-thinking leaders like Mr. Shirley and Dr. Farquharson at the helm, Jamaica’s own economic miracle is not a distant dream but an imminent reality..
Great work! Go JA! This is the way to go: rebuilding and innovating from within. After 500 years, we're still gripped in the jaws of colonialism and now neo-colonialism with no end in sight. It's time Caribbean and Africa leaders come to their senses and stop expecting - hoping for handouts from the enslaver nations. Caribbeanites and Africans should be asked to invest at a decent return on investments in their nations' rebuilding. Great article!!