Kingston Wharves Profit Affected Due to Weak State of Jamaican Economy
Kingston Wharves, one of the Caribbean’s leading multipurpose terminal operators, has recorded a 43.5% year-on-year decline in net profit during its 2011 financial year.
The company’s operating profit has been affected by declining cargo volumes resulting from the weak circumstances surrounding the Jamaican economy. Kingston Wharves’ CEO, Grantley Stephenson, said the company is exploring possibilities to generate additional revenue and reduce cost at its cold storage operations.
As part of preparation activities for the completion of the Panama Canal expansion set to take place in 2014, the cargo handler has already initiated the expansion of its container handling equipment fleet and has revealed its plans to pursue rehabilitation of the berths and relocated warehouses.
Jamaica Producers Group (JP) has made an offer to buy a 25% stake in the cargo handler for $1.8 billion. This offer would secure financial support necessary for the expansion plans which incorporate demolition of two to three warehouses and dredging aimed at accommodating larger vessels at berths five through seven.
Dredging Today Staff, February 29, 2012