Kingston Wharves (KWL) on Friday inked a 20-year deal with international club shopping giant Pricesmart for that company to expand its logistics partnership with KWL.
The contract which was signed at KWL’s Newport West offices between Kingston Wharves CEO Mark Williams and Pricesmart’s Country Manager Tara Kisto, represents a guaranteed 10-year lease arrangement, with the option of renewal in two five-year increments.
The arrangement allows Pricesmart to enter a new and expanded lease to occupy a portion of KWL’s 300,000 sq. ft. Integrated Modular Logistics Complex at Ashenheim Road in Kingston, upon its completion.
The first phase of the state-of-the-art energy efficient complex is now under construction and slated for completion in the first quarter of 2024. Pricesmart will have access to the facility at the end of 2023 to complete its build-out.
This phase of the facility will consist of an initial 70,000 sq. ft of dry goods warehouse and 57,000 sq. ft. of cold storage. The completed facility will bring KWL’s logistics and warehousing capacity to over 600,000 sq. ft.
Speaking at the signing, Mr. Williams said the deal was a major development in Kingston Wharves’ goal to become the nearshoring destination of choice in the region.
“Coming out of the reconfigured supply chain due to the pandemic, nearshoring is a critical solution for businesses that are seeking to strengthen their supply chain management. We are pleased that we have kicked off our newest logistics complex by signing this significant deal with a large club shopping company out of the United States,” the CEO stated, underscoring that the move will accelerate KWL’s thrust to position itself as a premier nearshoring destination.
“As we build-out Ashenheim Road, we have significant capacity and are open for additional opportunities and interest from regional and international manufacturers and distributors who are keen to capitalise on the benefits of doing business in an elite Special Economic Zone,” the CEO said.
Kingston Wharves’ value proposition also includes the company’s ability to leverage its port terminal services to deliver value, its strategic position in the Caribbean in proximity to major markets and its connections to over 45 global destinations.
Pricesmart’s Country Manager Tara Kisto observed that Pricesmart and KWL have enjoyed a longstanding partnership, spanning some 10 years.
“One of our core philosophies at Pricesmart is that our employees and partners must grow with us,” Ms. Kisto said. She noted that as Pricesmart grew its business, the company could not think of a better partner with whom to move forward than KWL.
Pricesmart is a United States based company with over 50 stores in 30 countries in the Caribbean and Latin America.
Expert Market Research (EMR) put the value of the global logistics market at US$9.96 trillion in 2022, and has forecasted increase at a compound annual growth rate of 6.3% to reach US$14.37 trillion between 2023 and 2028.