THE RECENTLY established Jamaica Refuelling Services Limited (JARS) has already pulled in more than US$2 million in revenue in its first six months and has exceeded initial two-year sales targets.
JARS is a joint venture between Jamaica's state refinery, Petrojam Limited, and British-based aviation fuel marketing company, Air BP. Through this alliance, signed in July 1999, Petrojam now supplies turbo fuel directly to aircraft and airline customers at the country's two international airports.
The facility started at Montego Bay's Sangster International Airport in March this year with two 10,000 US gallon and one 5,000 US gallon refuelers, while the Kingston operation, which boasts two hydrant servicers, began in May.
Petrojam chairman Noel Dacosta, speaking at yesterday's official launch of the Kingston operation, said JARS was a direct response to the state refinery's declining turbo fuel sales caused by the "aggressive importation" of jet fuel by multi-national marketing companies.
This flurry of competition, he said, was in turn fuelled by the liberalisation of the sector in 1993. He added that Petrojam's market share in turbo fuel plummeted from 100 per cent in 1993 to 28 per cent by 1999. In its first six months, he noted, JARS has already regained 5 per cent of market share.
Largely through the aviation connections of Air BP, a subsidiary of petroleum marketing giant BP Amoco plc, JARS has already secured supply contracts with British Airways, BWIA, Royal Aviation and ALM.
In November 2000, the company will start supplying American Airlines, Condar and Monarch. the company also supplies the airport operations of Texaco in Kingston. A notable absentee from this client list is national airline Air Jamaica, but Petrojam managing director Winston Watson pointed out Air Jamaica was tied to a two-year contract with other suppliers. This agreement, he said, expired in February next year, at which time JARS intended to bid for the contract.
The early success of the operation, which has delivered about 2.1 million US gallons of turbo fuel to date, indicates a handsome return on the investment of the shareholder-financed entity.
According to Mr. Watson, the US$2 million in estimated revenue earned so far has almost covered the start up budget of US$2.5 million.
