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Day: 10 July 2025

Overstretched Supply Chains Need a Caribbean Node

Posted on by David Priestman

Europe’s overstretched supply chains may need a Caribbean node, argues Laurence Jones, Europe Regional Manager, JAMPRO.

Here’s Why Jamaica is the Strategic Answer. Global logistics is being rewritten. Port congestion, rising warehousing costs, geopolitical risk, and the demand for faster delivery are all placing unprecedented pressure on supply chains across Europe. For decision-makers tasked with keeping goods moving while margins tighten, the hunt is on for smarter, more resilient solutions. And surprisingly to some, Jamaica is fast emerging as a compelling strategic partner.

For decades, Jamaica has been a transshipment point between the Americas. But today, the island is stepping confidently into the role of logistics hub for the modern age. Here’s why logistics leaders should be paying close attention.

Prime Geography Meets Modern Infrastructure

Kingston Harbour is one of the largest natural harbours in the Caribbean and among the largest in the world. Strategically positioned along major global shipping lines, Jamaica lies directly on key east-west and north-south routes. Kingston, its capital, is just 3–5 sailing days from major US ports like Miami, Savannah, and New York. This makes Jamaica an ideal location for companies pursuing just-in-case and nearshoring strategies in a post-COVID, post-Brexit world.

At the heart of this potential is the Kingston Logistics Park (KLP), a port-adjacent, bonded SEZ (Special Economic Zone) located next to the CMA CGM-operated Kingston Freeport Terminal. With over 100,000 square metres of space and direct customs integration via ASYCUDA World, KLP offers a scalable platform for regional consolidation, e-commerce fulfilment, reverse logistics, and light manufacturing.

Exceptional Cost Advantage

Compared to European and US logistics hubs, Jamaica offers highly competitive cost structures. Labour costs are 40–60% lower than US equivalents. Land and warehouse lease rates typically range from US$0.85- US$1.75 per sq.ft. per month, depending on location, infrastructure, and amenities. US$0.25–0.60 per sq. ft./month. Energy and telecoms infrastructure support modern distribution models, with solar integration opportunities for sustainability-conscious brands. In addition, SEZ benefits include a reduced corporate income tax of 12.5 %, which may be lowered to 7.5% with the approval of additional tax credits. Other incentives include duty-free inputs, and VAT/GCT exemptions on capital equipment.

Market Access to 40+ Million Caribbean Consumers

Beyond Jamaica itself, a logistics base in Kingston opens access to more than 40 million consumers across the Caribbean. Jamaica’s connectivity to Latin America and the US East Coast makes it ideal for firms looking to expand regional presence without committing to costly continental operations. Major carriers including CMA CGM, ZIM, Seaboard Marine, Tropical Shipping (represented locally by Kestrel Liner Agencies) and Maersk call at Kingston, ensuring consistent service schedules and reliable outbound reach.

Government Support and a First-Mover Advantage

JAMPRO and the Government of Jamaica are actively seeking logistics partners. We are ready to facilitate site visits, coordinate SEZ approvals, and connect investors with trusted developers. Workforce development programmes are already in place via HEART/NSTA to ensure trained staff are ready for new logistics roles. Importantly, no multinational 3PL has yet established a flagship logistics hub of scale in Jamaica. This presents a unique first-mover advantage for visionary firms willing to lead.

European logistics firms don’t need more of the same. They need adaptable, cost-effective, strategically located infrastructure that can buffer against future shocks. Jamaica is not just another dot on the map — it’s a gateway to the Americas, waiting to be activated.

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Ofcom Proposes Major Reform of Royal Mail

Posted on by David Priestman

Ofcom has unveiled proposals to reform the UK’s Universal Service Obligation (USO), aiming to bring the postal system in line with changing consumer behaviour and ensure the long-term sustainability of Royal Mail’s operations.

With letter volumes falling dramatically and parcel demand continuing to grow, the regulator is seeking to modernise the services Royal Mail is legally required to provide, while maintaining key features that consumers still value — such as affordability and nationwide coverage.

Letter Decline Spurs Review

Over the last decade, letter volumes in the UK have halved — from around 14 billion in 2011/12 to just 7 billion in 2022/23. In contrast, parcel volumes have risen steadily, driven by e-commerce and changing business models. Ofcom’s review responds to this shift, highlighting that the current six-day-a-week letter delivery model is no longer aligned with consumer needs or usage patterns.

Proposed Changes to the USO

Among the most significant proposals is a revision to delivery frequency. Royal Mail would no longer be required to deliver Second Class letters six days per week. Instead, deliveries would be made every other weekday, while First Class mail would continue with a six-day delivery schedule. Parcel services are unaffected by the proposals.

Ofcom also recommends updating performance standards. The new model would set realistic expectations based on how consumers actually use the mail:

  • First Class delivery: target of 90% delivered next-day (down from 93%)
  • Second Class delivery: target of 95% delivered within three days (down from 98.5%)

New reliability targets:

  • 99.5% of First Class mail delivered within three days
  • 99.5% of Second Class mail delivered within five days

These changes reflect a growing preference for reliability and value over speed, according to Ofcom’s research.

Affordability and Accessibility Remain Key

While usage patterns have changed, many people still depend on the postal service — particularly in rural and remote areas. The regulator is committed to preserving elements such as uniform pricing and national coverage to ensure fair access for all.

Consumers indicated that they continue to value the availability of next-day First Class service and the ability to send items across the country at a consistent price.

What Happens Next?

The public consultation on these proposals closed in April 2025. Ofcom is now reviewing responses from stakeholders, including postal users, businesses, and consumer groups. A final decision on the updated USO is expected later this year, with implementation likely to follow shortly after.

For the logistics sector, these reforms mark a significant step in rebalancing letter and parcel operations, aligning the regulatory framework with today’s market demands and delivery expectations.

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Tesco Announces Logistics Centre at London Gateway

Posted on by David Priestman

Tesco has announced a major investment in a new distribution centre at DP World London Gateway, which it expects to open in 2029.

This investment represents Tesco’s continued commitment to ensuring its distribution network remains fit for the future – which is critical to the business’s success and to ensuring it can continue to meet the demands of its growing store network and best serve its customers.

The new distribution centre will be a modern, energy-efficient site, equipped with the latest technology to support Tesco’s growth and is expected to achieve BREEAM Outstanding certification, demonstrating its commitment to sustainable building practices.

Tesco is collaborating with Witron, an experienced logistics partner with a strong legacy of retail partnerships, to bolster its network capacity at the site.

Andrew Woolfenden, Tesco UK Distribution & Fulfilment Director, said:

“Our distribution network is vital for ensuring customers receive products at the right place, time and condition. As demand grows across our store network, we’re excited to partner with Witron and DP World to develop a distribution centre that leverages the latest technology, enhancing our supply chain and supporting our decarbonisation goals. By locating at London Gateway, we can also take full advantage of the seaport and rail infrastructure.”

Helmut Prieschenk, CEO at Witron, said:

“It’s an honour and pleasure for us to be part of this outstanding logistics initiative, which represents the introduction of more intelligent logistics production. With the latest technology and machinery, once fully operational, this represents a large-scale project for dry grocery distribution. In terms of end-to-end integration this is a lighthouse project for Witron – which ensures premium store service, an ergonomic, safe and sustainable environment and benefits the whole value chain.”

Sultan Ahmed bin Sulayem, DP World Group Chairman and Chief Executive Officer, said:

“DP World London Gateway is helping to make Britain’s trade flow by sea, road and rail, connecting businesses across the UK with global markets and boosting the resilience of national supply chains. The significant investment announced today by Tesco, one of the world’s leading retailers, is a proud moment for DP World and a vote of confidence in the growing role London Gateway plays in the UK economy.”

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Rotterdam Terminal Sold by Energy Storage Firm

Posted on by David Priestman

Global Energy Storage Group (GES) has announced the completion of the sale of its terminal located in the Port of Rotterdam. The facility, which includes 212,000 m³ of tank storage and approximately 18 hectares of development land in the Europoort area, was sold to Tepsa, a European bulk liquid and gas storage operator.

The transaction represents a key milestone for GES as it continues to focus its resources on expanding its presence in the fast-growing Asian market, with particular emphasis on its strategic terminal at Port Klang, Malaysia. It also ensures that the Rotterdam terminal is passed into the hands of a high-quality follow-on owner well positioned to take the asset forward. The transaction also delivers a strong return for GES’s shareholders.

Peter Vucins, CEO of GES, commented, “Part of the investment cycle is realising value from assets at the right time, and we’re confident this was the right moment for GES. We are now fully focused on growing our business in Asia, with Port Klang at the centre of that strategy. We extend our sincere thanks to the Rotterdam team and our customers for their support and for maintaining a safe, reliable, and forward-looking operation throughout our ownership.”

With the sale of the Rotterdam terminal, GES no longer holds assets in the Netherlands. The company’s growth strategy remains firmly anchored in Asia, where demand for bulk liquid storage, including chemicals, biofuels, and new energy products, continues to rise.

GES is backed by investors Bluewater and White Deer, who have been instrumental in supporting the company’s development and long-term vision. Financial terms of the transaction were not disclosed.

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Ministry of Defence Order for Heavy-Duty Pallet Trucks

Posted on by David Priestman

Midland Pallet Trucks, British supplier of manual handling equipment, is proud to announce a significant supply agreement with the UK Ministry of Defence (MoD). The company has secured a large-scale order of 360 heavy-duty pallet trucks, specifically tailored to meet stringent MoD specifications, to be distributed to defence sites across the UK.

The pallet trucks, each with a 2.5-tonne load capacity and built to accommodate standard UK pallets, are part of a highly specialised and carefully managed contract. With complex technical requirements and logistical challenges, the order represents one of the most detailed and ambitious projects the business has undertaken to date.

Phil Chesworth, Managing Director at Midland Pallet Trucks, said, “Supplying the Ministry of Defence is an honour and a testament to the strength of our products and the dedication of our team. From the initial consultation to the final dispatch, this order required a huge team effort and close attention to detail. We’re immensely proud of everyone involved, from those in the warehouse building the trucks, to the staff coordinating transport, to those making sure even the smallest specifications were met.”

The pallet trucks, designed to handle the demands of tough industrial environments, will now be supporting operational efficiency across various military facilities. Built with durability and performance in mind, they offer low-maintenance reliability – critical for fast-paced, high-pressure settings like those operated by the MoD.


The scale of the order has seen multiple articulated lorries loaded at Midland Pallet Trucks’ distribution hub, with the first two trucks already enroute and twenty more to follow. Each truck had to meet strict technical requirements, down to the precise fork width, roller composition, and pallet compatibility.

This order is a glowing example not only of Midland Pallet Trucks’ commitment to quality, but also its ability to deliver on large, complex contracts. As the final deliveries roll out, this success story serves as a reminder that investment in robust, well-designed manual handling equipment – like pallet trucks, lift tables, and stacker trucks – remains a cornerstone of efficiency.

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Waitrose Sign Multi-Million-Pound Distribution Centre Deal

Posted on by David Priestman

Mountpark has signed a lease agreement with Waitrose for a new distribution centre at Mountpark Bristol 360 in Avonmouth.

The 360,926 sq ft Mountpark Bristol 360 will serve as the retailer’s fifth regional distribution centre. Set to be operational by autumn 2026, the facility will enhance delivery efficiency to approximately 50 existing Waitrose stores across the south west, while also offering the capacity to support future store openings.

The facility has been rated BREEAM ‘Outstanding’ and holds an EPC A+ certification. Its roof is equipped with 1,200 solar panels, generating 625 kVA of power, supported by 118 kW of Tesla battery storage.  Designed with sustainability and employee wellbeing in mind, Mountpark Bristol 360 includes features such as a roof terrace, landscaped gardens, and extensive ribbon glazing to maximise natural light to the warehouse marshalling areas.

Once operational, Waitrose expects the site to help it cut supply chain emissions by 2,225 tonnes of CO₂ per year, contributing to its goal of becoming fossil fuel free by 2030 and net zero carbon by 2035.

Bart Holt-Smith, Director, Capital Markets and Development for Mountpark said: “Waitrose’s selection of Bristol 360 is a strong endorsement of our ability to deliver buildings that meet the evolving needs of modern logistics from commercial performance to environmental responsibility. We’re proud to be working with a brand of Waitrose’s calibre and delighted that our shared commitment to sustainability and quality aligns so closely. We look forward to welcoming this iconic British retailer and supporting its continued success in the region.”

Strategically located with direct access to the M49, M4, M5 and key regional freight corridors, Mountpark Bristol 360 will play a central role in servicing Waitrose’s future ambitions. The retailer is working on plans to open new convenience and full-line stores throughout the UK.  Last month, it announced that a shop will be built at Brabazon in north Bristol, which is expected to open in 2027, and later this year a new convenience store will open in The Arches, Bristol.

Alison Maffin, Waitrose’s Supply Chain Director, said; “This multi-million-pound investment is an important step in modernising our supply chain and setting us up to build the capacity needed for our growth plans. It will also enable us to better serve our customers in the region, more efficiently supply our existing shops and reduce our operating costs and carbon emissions. The modern and sustainable features of Mountpark Bristol 360 make it an excellent fit for our business.”

Mountpark Bristol 360 is part of Mountpark’s expanding UK portfolio of Grade A logistics developments and is located at Central Park, Avonmouth, one of the South West’s most strategically significant distribution hubs. The forthcoming M49 Junction 1 will further enhance connectivity, providing Bristol 360 with improved access to the UK’s motorway and freight networks, and reinforcing its long-term value as a distribution base.

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