Investment being made to reduce range of risk factors facing clients

Jamaican port operator Kingston Wharves Limited (KWL) is beefing up its investment in security this year, as a measure of reducing the security risk facing clients given COVID-19.

KWL Chairman Jeffrey Hall, who made the announced, advised shareholders that, “we will be enhancing our investment in robust security technology, policies and systems in 2021. In this period of relative economic uncertainty, we will prioritise our investment in security as a way of reducing the range of risk factors facing our clients”.

The enhanced security that will be rolled out this year is being executed, as KWL is an International Ship and Port Facility code certified facility that is recognised for its strict adherence to international security standards. In addition, KWL, which has been in business for the past 75 years, will be prioritising the development of its terminal infrastructure and the addition of new services that diversify its customer base in the year ahead.

Digital roll out

During 2020, Hall disclosed that Kingston Wharves rolled out digital technology to reduce the use of in-branch services and foster customer service excellence. The port company introduced its Click N Collect cargo clearance initiative to improve the customer experience by reducing in-branch wait times and crowding while providing a real-time automated customer interface for cargo tracking.

KWL runs a diversified operation both in terms of cargo-handling capacity and the range of customers the company serves spanning multiple sectors such as automotive, telecommunications, petroleum, energy, manufacturing, retail, tourism, services infrastructure and agri-business.

KIW managing COVID-19

The KIW chairman pointed out that the COVI D-19 crisis served as a potent reminder of the company’s longevity and ability to withstand challenges, recalibrate and stay focused on building for greater growth and profitability.

According to Hall, “Kingston Wharves was very active in tackling the crisis by establishing a COVID-19 management committee to implement prevention measures to safeguard its employees, customers and other stakeholders.”

Said Hall: “The KWL team took steps to maintain the consistency of the company’s operations through a range of initiatives to streamline processes and improve operational efficiency.”

The KWL port terminal remained operational throughout the COVID-19 crisis and maintained its position as a vital gateway for supplies into the island, while facilitating exports. KWL continued to operate as an essential service in the provision of connections to 30 regional shipping ports for bulk, break-bulk and containerised cargo, while serving as a global hub for motor vehicles.

Financial out-turn

KWL recorded revenues of $7.1 billion for 2020 representing, a decline of 10 per cent over 2019. Profit before taxation decreased from $2.96 billion in 2019 to $2.70 billion in 2020, representing an eight per cent decline. Net profits attributable to shareholders reflected a 14 per cent or $363 million decrease, moving from $2.60 billion in 2019 to $2.25 billion in 2020.

The annual operating revenue for KWL’s Terminal Operations Division amounted to $5.6 billion, a decrease of 12 per cent year on year. Operating profit for the Terminal Operations Division was $1.99 billion, a decrease of 18 per cent over the 2019 result.

The Kingston Wharves terminal continues to handle a wide range of cargo types serving the domestic and transshipment markets. The volume of cargo handled during the year was reduced as a result of the COVID-19 pandemic.

KWL’s Logistics Services Division contributed $2.27 billion in revenue, an increase of two per cent year on year and accounted for 32 per cent of revenue for 2020. Operating profit of $868 million for the Logistics Services Division was up 29 per cent relative to 2019.

The Logistics Services Division has emerged as a resilient profit centre within KWL, while offering agile logistics solutions and providing useful alternatives to both commercial and personal effects clients. The division’s modern warehousing, digital and systems capabilities also allowed KWL to maintain solid service levels notwithstanding the stringent health and safety requirements associated with the pandemic.