Kingston Wharves Limited is increasing its investment spend as the company continues to diversify its logistics and port management and logistics operations.

Chairman of KWL Jeffrey Hall shared in the annual report for 2024 that the business “accelerated its capital development programme in 2024 with a focus on enhancing terminal capabilities, expanding infrastructure, and modernising operations”.

The investment follows the company’s completion of a US$30-million redevelopment of Berth 7 in 2023. Berth 7 was extended 15 metres seaward and the draft deepened by 12.5 metres, allowing for the docking of larger vessels and simultaneous calls.

In 2024, KWL continued its expansion of the logistics business line with the development of a warehouse facility projected to be completed this year. Complementing its capital expenditure in physical infrastructure is the company’s spend on technology.

“The rollout of a new Terminal Operating System (TOS) has significantly enhanced efficiency in vessel turnaround and yard management. The TOS has allowed the company to optimise its cargo handling operations and deliver a more seamless experience for shipping line partners and customers,” Hall outlined in the 2024 annual report.

He added: “Customer service remains a priority for KW and during the year the company implemented several digital enhancements to improve the ease of doing business with KWL.”

Hall has taken a cautious outlook on the company’s prospects for 2025, citing international headwinds.

“Although global trade flows have shown signs of stabilisation—with major trade lanes operating more steadily and global port congestion easing—caution remains due to lingering geopolitical tensions, inflationary pressures and environmental regulatory shifts. These external factors continue to influence global shipping volumes and create a complex backdrop for decision-making across the industry,” he stated.

The company has identified five strategic pillars on which it plans to build momentum: workforce development; environment, social and governance; operational excellence; infrastructure development; and maintaining a growth mindset.

Despite the challenges listed by Hall, KWL increased revenues by 10 per cent to $10.7 billion. Revenues from logistics and terminal operations increased by 37 per cent and 63 per cent, respectively.

 However, the company’s profit before tax dropped to $3.2 billion, down from $3.8 billion in 2023,  as the company faced higher depreciation expenses and costs related to capital projects, including infrastructure and technological upgrades.

“These projects are aimed at enhancing the terminal’s capacity and for increased throughput and ensuring long-term resilience. Terminal operations remain central to KWL’s success,” the reports’ Management Discussion and Analysis explained.

The company’s total assets rose to $61 billion as the value of property, plant and equipment increased year-on-year due to the development of a cold and dry storage facility. Additionally, KWL’s cash position improved by $600 million.