Durrant Pate/Contributor

As Kingston Wharves Limited (KWL) ramps up its logistics infrastructure investments, the first phase of its US$25 million 130,000 sq. ft. integrated warehouse complex slated to come on stream in the first quarter of 2024.

To this end, KWL is now in the process of forging significant partnerships to realise full take-up of this added warehousing capacity. The most recent take-up is the signing of two long term leases with a global club shopping company and a major cold storage provider, which will take up operations in the new facility.

KWL is a multi-purpose port terminal that remains focused on improving its service delivery to the shipping and logistics industry by making significant capital investments in its operations. Chairman Jeffrey Hall is excited at this development pointing to the company’s “continuous drive to build capacity coupled with digital enhancements, people development and a strong environmental, social and governance framework continues to stimulate our growth prospects.”

Emphasis on logistics and terminal operations

In his half-year report to shareholders, Hall advised that KWL is placing emphasis on enhancing its berthing capabilities by investing US$30 million in the redevelopment of Berth 7 and effecting a commensurate terminal optimisation and cargo segmentation strategy.

 As a leading transhipment destination for motor vehicles and containerised cargo, these improvements will enable KWL to maximise its service to the shipping lines that currently call at its terminal, enhance gate operations, bolster overall terminal efficiency and attract new business in an increasingly competitive local and global environment.

KWL’s capacity to seamlessly leverage its terminal functions to capitalise on port-centric logistics opportunities will also be enhanced by the berthing improvements and simultaneous expansion in the area of logistics services. The company is positioning itself to lead on receive, warehousing and delivery of cargo for both domestic and regional markets.

This segment benefits from ongoing investment in personnel, modern purpose built logistics facilities, scanning and security systems, and integrated information technology platforms for cargo tracking, inventory control, and handling.

Revenue contracts during half-year

For the six-month period ended June 30, 2023, KWL achieved consolidated revenues of J$4.4 billion, a three per cent or J$134 million contraction over the corresponding period in 2022. Net profit attributable to shareholders of J$1.3 billion increased by seven per cent or J$83 million relative to the prior year.

Earnings per share for the quarter was 43.33 cents compared to 37.85 cents in prior year. During the June quarter the board declared an interim dividend of $0.25 per share to be paid in August 2023.

The KWL Terminal Division generated operating revenue of J$3.4 billion for the six-month period, a decrease of six per cent over the corresponding period of the prior year. Divisional operating profits decreased by 17 per cent rom J$1.2 billion to J$1.0 billion.

The terminal operations division is the larger segment of the group, contributing 69 per cent of revenues. The results in this division were driven primarily by a general decline in global containerised cargo volume which was offset by increases in bulk and breakbulk cargoes.

The KWL Logistics Services Division generated revenues of J$1.5 billion, an increase of six per cent or J$80 million over the prior year. Divisional operating profits decreased by six per cent relative to 2022 from J$427 million to J$399 million.

The operating performance was affected by inflationary increases in operating costs, together with increased administrative expenses that were incurred to develop the business.