TRANSPORT, STORAGE AND COMMUNICATION (2008)

Employment in The Transport, Storage and Communication sector totalled 79,700. The sector boasted a low unemployment rate of 6.2 per cent in 2008, an average of 5,300 persons. The sector also recorded a decline of 2.2 per cent in GDP representing the first annual decline in 28 years. This decline was attributed to the downturn in the transport and storage segment due to reduced activities at the island’s air and sea ports. This was due to a decrease of 2.0 per cent in the number of passengers moving through the international airports from 5197270 to 5095362 and also the number of ship calls which declined by 4.6 per cent to 3586. There was a decline in the total volume of domestic cargo handled at the islands ports as it fell by 0.7 per cent in 2008 to 20,160 thousand tonnes. There was an increase in the number of vehicles certified fit to operate moving from 378,647 in 2007 to 420,265 in 2008. Mobile telephony continued to increase reaching approximately 2.7 million compared to 2.69 in 2007. Conversely, fixed lines declined by 21,942 to 349 047. The penetration rate of fixed and mobile lines combined indicated an overall teledensity of 100.0 per cent.

Policies and Programmes

Transportation

The areas of development and implementation within the Medium Term Economic Policy for 2008 included:

-                        Ensuring a safe public passenger bus service

-                        Regulating the taxi service through the institution of licensing regime where the competence to operate is determined by the vehicle fitness, the drivers capability and adherence to regulation

-                        Regulating vehicle weights for better quality and more efficient vehicle usage and road maintenance

-                        Creating a multi-model transportation system in which trains, buses and taxis share the same terminal for ease of transfers

-                        Enforcing aviation safety policies and enacting aviation legislation as stipulated by the International Civil Aviation Organization framework

-                        Increasing volumes of scheduled air services to countries by liberizing the air services agreements; and

-                        Encouraging the expansion of trans-shipment and development of docking facilities.

The Transport Ministry continued during 2008 to facilitate activities such as the Highway 2000 Project which is set for completion 2010. The Northern Coastal Highway segment is being carried out and is scheduled to be completed in June 2009. The Road Maintenance Fund continued to facilitate the of repairing of main roads by disbursing over $500 million island-wide to fix roads that were damaged by natural disasters. The Ministry opened the Half Way Tree Transportation Centre in January 2008. It is equipped with passenger accommodation, rest rooms, commercial shops, food court and commercial kiosks. The Jamaica Urban Transport Centre (JUTC) has added to its fleet 50 new buses and is expected to receive another 50 in 2009. They also colour coded the buses to improve safety and modernize public transportation island-wide.

For 2008, output in the transportation sector showed variations in several areas (See Table 1). The number of vehicles certified fit increased from 378,647 in 2006/2007 to 420,265 in 2007/2008, a change of 11.0 per cent. The number of buses operating island-wide increased by 7.9 per cent to 3,807 in 2008. The total public passenger licenses issued by the Transport Authority declined by 14.5 per cent to 19,075.

The Road Safety Unit of the Ministry of Transport and Works undertook a comprehensive programme of regulation, enforcement and education to improve and promote road safety. The programme included:

-                        Road Scholars 2008, which encouraged the public to change their behavioural patterns as it relates to drunk driving, speeding and seatbelt usage.

-                        Children Against Reckless Driving Campaign which was geared at educating children on road safety.

-                        Musicians for Road Safety where musicians promoted road safety through songs; and

-                        Walk Good which educated pedestrians on how to use the roadways safely.

There was a decline in air travel due to the global economic and financial crisis which led to the cancellation of some charter flights and the termination of some operating routes. Data released by Air Jamaica showed that revenue in 2008 decreased by 20.0 per cent to US $351.0 million as all categories recorded declines. In relation to the rail service the Ministry of Transport and Works was still in discussions with Chinese investors in an attempt to facilitate a private-public partnership for revitalization of this form of transportation.

Cabinet approved ownership control of the lands on which the Tinson Pen aerodrome is located. The aerodrome will be relocated to lands owned by Urban Development Corporation.

Storage

Data from the Port Authority indicated that the storage and warehousing sub-sector recorded a decrease in the volume of domestic cargo handled at the ports by 0.7 per cent to 20,160 tonnes in 2008. This decline was also attributed to the downturn in the economy.

Communication

The Telecommunication Policy was amended to reflect technological advancements, trends and recent challenges in the post liberalized sub-sector. A draft of the policy was prepared in December 2008. The Information and Communication Technologies Sector Plan was another policy focus as part of the Vision 2030 Jamaica - National Development which will seek to:

                           i.            Facilitate a strong and competitive Information and Communication Technologies  (ICT) sector and

                         ii.            Ensure Jamaica’s national development is advanced by widespread application of ICT.

Since liberalization in 2000, a total of 441 licences have been issued for the telecommunications sector. Mobile operators continued to expand their client base by offering a wider range of services including international calling plans, 3G Network and Video Calling during 2008. There was also the re-branding of two mobile operators;- Cable & Wireless became LIME, while America Movil assumed the name Claro.

A number of strategies were employed in tandem with the Information Communication Technology (ICT) project targeting both the private and public sectors. The ICT project started in 2003 with a mandate of strengthening the Ministry of Industry, Technology, Energy and Commerce; developing human capital in ICT; introducing e-government and participating in community outreach. A total of US $4.1 million was spent on these activities.

Post and Telecommunication Department (PTD)

The issuing of telecom licenses over the two year period was trended downwards, with 10 issued in 2006/2007 compared to five in 2007/2008. The volume of mail handled by the Post and Telecommunication Department decreased from 80,710 in 2008 to 78,067. The decrease was driven by increased competition from couriers and e-mails. Even though there was an overall decline in letters the number of parcels handled grew by 10.1 per cent. This growth resulted from competitive rates offered by the PTD.

The PTD is seeking to expand its Express Mail Service by;

-                        Establishing a hub for overseas mails

-                        Opening post shops in tourist areas

-                        Instituting a Business Development Committee to undertake new mailing initiatives.

During 2008 the Port Authority of Jamaica experienced a decline in the total number of vessels, a reduction of 4.8 per cent to 3,586. Domestic cargo handled also decreased by 0.1 per cent to 20,160 tonnes. In terms of air traffic through both international airports the volume was less in 2008, moving from 68,821 to 65,818and passengers decreased by 2.0 per cent to 5,095,362.

Key Indicators of Performance in the Transport Sector by Category
 2007 and 2008

          Table 1        

Source: The Economic and Social Survey Jamaica 2008

Updated October 2009