Port and logistics company, Kingston Wharves Limited (KWL) has detailed its expansion plans in the coming months in its recently released 2020 annual report.

These plans will be driven by diversification and acquisitions in transportation and logistics and diversification, which is positioning the company as a hub for non-containerized and non-auto cargo types. In addition, the company is expanding its warehouse and logistics services, thus leveraging Special Economic Zone (SEZ) designation, which has put KWL in a good position to compete as a global business.

The company is optimistic about acquiring businesses noting that, “in short order, the group (KWL) will be sharing via JSE (Jamaica Stock Exchange) about the business acquisition it has been working on to thereby expand the business and diversify revenue stream.”

KWL underscored that the expansion plans will support the handling of super post-Panamax Crane through terminal expansion, Information Technology development, new cargo types, SEZ designation, competent workforce and business integration.

Berth redevelopment at KWL

The company is undergoing a redevelopment of its berthing space to accommodate vessels of Panamax size and Post Panamax size. Chief Executive Officer, Mark Williams explains that KWL is a terminal with 9 deep water berths noting that the company recently concluded the first phase of an international tender for the refurbishing of Berth 7.

The company is spending US$30 million to ensure that the infrastructure at KWL is ready and can compare with the best in the world. Another US$30 million will be used to get the plant infrastructure in place.

Regarding plant infrastructure, KWL has ordered an eco-efficient Konecranes Gottwald Model 8 Mobile Harbor Crane to increase its capacity and efficiency in container handling and to serve Super-post Panamax vessels.

According to Williams, “we believe we need to prepare our business to be ready when COVID-19 has passed. We are positive about getting the infrastructure in place.” The cost of this infrastructure is US$5 million.

The KWL CEO reiterated the company’s commitment to its key strategic imperatives:

1. Customers: Positive client experience
2. People: World-class workforce
3. Plant: Infrastructure readiness
4. Process: Operational excellence
5. Profit: Diversification and expansion

Revenues and profits down for 2020

KWL recorded revenues of $7.14 billion for 2020, which is 10 per cent below the $7.90 billion booked in 2019, but still above the revenue for 2018. Of this, the group’s terminal operations delivered revenues of $5.0 billion, accounting for 69 per cent of its revenues while the logistics services delivered revenues of $2.2 billion, which was 31 per cent of revenues.

This translated into a profit of $2.28 billion (2019: $2.64 billion). For the first quarter of 2021, the group recorded revenues of $1.85 billion, one per cent below the $1.88 billion booked for the first quarter of 2020, which resulted in net profit of $560.25 million relative to the $561.94 million recorded for the corresponding period in 2020.

Williams stated that, “the Special Economic Zone KWL has invested about US$2 million over the past 12 months to ensure the security infrastructure is compatible to the region. Technology is another imperative to drive operational excellence. KWL is focused on ensuring the use of web-based facilities for clearing cargo at the port.”

Among the technological development undertaken by KWL includes:

• Web-based cargo clearance
• Terminal operating system upgrade
• Accounting software upgrade
• Integrated Electronic Case Management System (IESMS)
• e-Learning system
• Cloud-sased security

As for web-based cargo clearance, a new development was undertaken for shipping called “Click and Collect, as easy as 1, 2, 3. It can be done on the phone, and it is curbside pickup. The system offers an efficient way to clear cargo.”

Under this programme, KWL has partnered with Jamaica customs so customers can pay custom charges, KWL charges and agent charges using a mobile phone.