JAMAICA: NEW MINISTER OF TRANSPORT/WORKS RE:

UNCLAS SECTION 01 OF 02 KINGSTON 000051

SIPDIS

SIPDIS, SENSITIVE

STATE FOR WHA/CAR - (JOE TILGHMAN)
WHA/EPSC - (LISA MARTILOTTA)

E.O. 12958: N/A
TAGS: ELTN EWWT EAIR SENV PREL ECON IMO JM XL
SUBJECT: JAMAICA: NEW MINISTER OF TRANSPORT/WORKS RE:
AIR JAMAICA; MARITIME AND AIRFIELD DEVELOPMENT; ROADS

REF: (A) KINGSTON 21 (081644Z JAN 08)(NOTAL)
(B) 07 KINGSTON 897 (072046Z JUN 07)(NOTAL)
(C) 07 KINGSTON 1656 (091610Z NOV 07)(NOTAL)
(D) 07 KINGSTON 1625 (011918Z NOV 07)(NOTAL)

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Summary
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1.(SBU) A seriously overburdened national road system, divestment of
Air Jamaica, ambitious plans to reopen Vernon Field in Clarendon as
a commercial hemispheric "Panama Canal of the air," and full
realization of the potential of the maritime sector are priorities
for the new Minister of Transport and Works.

Overstretched Road Network, Serious Congestion
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2.(SBU) Ambassador called on recently appointed Minister of
Transport and Works Michael Henry in his offices the afternoon of
January 9; his Senior Director of Policy, Planning and Evaluation,
Elsa May Binns, and EmbOff accompanied. Ironically, the meeting was
delayed because of severe traffic congestion throughout downtown
Kingston. Henry explained that feverish work to complete Kingston's
new bus transportation center in time for its official opening
January 11 was partially responsible for the congestion. He then
readily acknowledged that Jamaica's road network as a whole was in
poor condition and seriously inadequate. He claimed Japan was the
only other country with as great a density of vehicles per kilometer
of available road space. In response to Ambassador's inquiry, he
said he "had been advised" that it was "not necessary" to raise the
level of the Palisadoes, the vital sea-level road connecting
Kingston's airport and Port Royal to the mainland; ongoing work to
remediate erosion and reduce vulnerability to storm flooding would
suffice to keep it open. End Summary.


Future of Air Jamaica
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3.(SBU) In response to Ambassador's inquiry regarding the future of
Air Jamaica, Henry said that, while Prime Minister (PM) Bruce
Golding had shifted primary responsibility for the airline from
Transport to the Ministry of Finance and Public Service (reftel A),
he nevertheless was still "called on for assistance." He reiterated
that the Government of Jamaica (GoJ)'s recent sale of landing slots
at Heathrow to Virgin Atlantic (reftel B) had been a serious
mistake, and contrasted Alitalia's recent sale of three Heathrow
slots for 93 million Euros with the USD 10 million obtained by the
GoJ for its five slots. Virgin was using these newly acquired slots
for flights to Barbados and the Far East, rather than to Jamaica.
Henry said he had hoped for Air Jamaica to partner with airlines in
the Far East and/or Africa. He then claimed that the GoJ had
received recent offers to purchase Air Jamaica "from China and
others." He observed that the airline's administration and
management were "top-heavy;" Air Jamaica had had 32 persons managing
its London route, while American Airlines needed only four to manage
theirs.

AirOne
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4.(SBU) In response to Ambassador's inquiry regarding the recent
proposal of Peter Delany's AirOne to start a low-cost regional
airline based in Kingston (reftel A),Henry replied that he was
unable to comment, as AirOne's application must be considered by the
Civil Aviation Authority. The GoJ must review the impact on Air
Jamaica of having a non-Jamaican owned airline based here.
International Civil Aviation Organization (ICAO) rules pertaining to
flag carriers would have to be respected.

Vernon Field to become a "Panama Canal of the air?"
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5.(SBU) Henry then confirmed that the GoJ was working on a plan to
restore and reopen Vernon Field in Clarendon (built by the USG) for
commercial aviation. The USG had constructed strong, durable
runways, longer than those at either the Norman Manley or Montego
Bay airports, which would not require much work to resume
operations. The ambitious Vernon Field project would have five
phases:


KINGSTON 00000051 002 OF 002


-- rehabilitation of the airfield as a hemispheric commercial hub;

-- facilities for maintenance/repair of aircraft engines and
bodies;

-- installation of equipment and systems for e-commerce and
e-trading;

-- development as a logistics center, to include road links to the
new national toll road now under construction;

-- rehabilitation of the railway link to Vernon Field as part of
China's project to upgrade Jamaica's rail system.

He noted that the site was close to Rocky Point and Port Esquivel,
and that Kingston's nearby container terminal was growing by leaps
and bounds; if efficient connections were put in place, Vernon Field
eventually could become a "Panama Canal of the air."

Maritime Sector Potential
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6.(SBU) Henry then turned to the importance of the Caribbean
Maritime Institute (CMI) in Kingston. He hoped to interest more
Jamaican students in forms four-six in pursuing maritime careers,
whether as officers, technicians, or stewards. He expressed thanks
to the U.S. for its support in Jamaica's recent election to Category
C of the Council of the International Maritime Organization (IMO)
(reftels C,D); he intended to ensure that that the GoJ fully
exploited the potential of the maritime sector. Henry noted that
thousands of jobs were available in the cruise and cargo ship
industries, in everything from port management to navigation,
engineering, and hospitality. He wanted closer linkages between CMI
and the national school system; this was why he had put a school
principal on the CMI's Board of Directors. In response to Henry's
invitation to visit CMI, Ambassador replied she would welcome the
opportunity.

Anticipate Request for Training Ship
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7.(SBU) Henry and Binns then asked whether the USG might be able to
assist Jamaica in acquiring a training ship for the CMI. Ambassador
said that, while we could make no commitments, if the GoJ would
provide a more detailed proposal, the Embassy would be glad to
pursue the question; Binns said she would provide additional
information.

8.(SBU) Henry concluded by reconfirming his commitment to
environmental protection and emissions control, both on land and at
sea. He was determined to clamp down on motor vehicles which did
not meet emissions standards. He also was interested in Jamaica's
possible involvement in trading carbon credits.

HEG