Durrant Pate/Contributor

Kingston Wharves Limited (KWL) will be heavily investing more in terminal and logistics operations in the coming months to take advantage of the recovery taking place in the world economy.

Company chairman, Jeffrey Hall, who made the announcement, declared that KWL will continue to benefit from ongoing investment in modern port-centred logistics facilities as well as a platform of integrated systems for cargo tracking and handling.

He highlighted that KWL’s investment in its multi-purpose cargo handling capabilities and digital infrastructure continues to generate improved operational efficiencies.

According to Hall, “As 2022 progresses, we (KWL) will support this with a range of infrastructural development initiatives to enhance our terminal and logistics operations. Improvements to our berth, container yard, and cargo handling equipment facilities, will be complemented by additional investments in digital infrastructure, such as the upgrading of our terminal operating system, expansion of e-commerce mechanisms and technologically-enabled security enhancements.”

Deploying technology to support specialised services

As KWL strengthens adherence to global best practices, the port and logistics company plans to deploy technology to support virtual training for our team members in leadership and specialised logistics services. These measures will underpin KWL’s drive to maximize the long term prospects for its Special Economic Zone operations to deliver supply chain services to diverse global interests in the automotive, manufacturing and construction sectors. 

Hall indicated that the good financial results for the first quarter “demonstrate that Kingston Wharves continues to offer a competitive option for shipping lines and cargo owners that seek to move cargo through the region.”

For the quarter ended March 31, 2022, KWL achieved consolidated revenues of J$2.25 billion, representing a 21 per cent or J$395 million increase over the corresponding period in 2021. 

Net profit attributable to shareholders amounted to J$671 million, which is up 22 per cent relative to the prior year. KWL has maintained its momentum of positive results into 2022 and is approaching the remaining year ahead with cautious optimism.

KWL Terminal operations 

The Terminal Operations division generated operating revenue of J$1.8 billion for the March quarter in review, an increase of 31 per cent over the corresponding period of the prior year. Divisional profits increased by 42 per cent from J$441 million to J$626 million. 

The division remains the larger segment of the group, contributing 72 per cent of revenues. The improved performance in this division was driven by a significant increase in the company’s transhipment business. 

The results for the first quarter demonstrate that Kingston Wharves continues to offer a competitive option for shipping lines and cargo owners that seek to move cargo through the region.

Logistics services

The KWL Logistics Services division delivered solid results for the first quarter. This business unit generated revenues of J$673 million, an increase of three per cent over the prior year. 

Divisional profits marginally increased by one per cent relative to 2021 from J$171 million to J$173 million. KWL Logistics is strategically positioned to lead on delivery to a wide range of importers of cargo for the domestic market and is cooperating with international logistics interests to serve international markets. 

The global supply chain is expected to continue to be disrupted by the lingering effects of the pandemic and this will be exacerbated by geopolitical instability throughout the world. Global shocks related to high fuel costs, the knock-on effects of increased commodity prices and reduced supply, and the disruption of shipping activities from certain regions of the world will compound these challenges. 

As such, KWL will navigate these conditions with an increased focus on its competitiveness, customer service and strategic relationships.