By Petulia Clarke, Staff Reporter
The idle assets of the Jamaica Railway Corporation at its headquarters, Pechon Street, Kingston. - Junior Dowie/Staff Photographer
THE GOVERNMENT is unlikely to meet this year's deadline for the resumption of rail service. The National Investment Bank of Jamaica (NIBJ), which is conducting negotiations on its behalf, said it was having problems with investors.
The NIBJ's negotiating team is also awaiting "finalisation of outstanding matters" before commenting on another start-up date.
Responding to questions from The Gleaner last week, the NIBJ's Director of Privatisation, Dudley Sackaloo, said that final settlement of legal matters was proving laborious.
"The negotiating team still has outstanding matters to settle with the investors, mainly related to the legal documentation," Mr. Sackaloo said. "The final settlement of these matters is proving to be protracted and difficult."
In a faxed response, he said: "The NIBJ prefers to await the finalisation of the outstanding matters before commenting any further on a proposed start-up date for the railway."
Mr. Sackaloo had said in early January that negotiations on the privatisation were expected to be finalised by that month-end. He was quoted by the Government's news agency, JIS, as saying he was confident that "train service will begin in 2002".
Minister of Transport and Works, Robert Pickersgill, said through his secretary, that he would not comment on the practicality of restarting the rail system. He said he would discuss the JRC's future during a presentation to Parliament next month.
Negotiations for the railway started in 1999 when the Government and the Rail India Technical and Economic Services (RITES) Limited signed a Memorandum of Understand-ing to establish a joint venture company to revitalise the railway service. Under the agreement, the Government of India would own 30 per cent, the Jamaican Government 40 per cent and the remaining 30 per cent would be owned by Jamaican companies.
The first phase was expected to see commuter services between Kingston and Spanish Town followed by Kingston to Linstead.
It was expected to be up and running by January 2001, but there have been delays. Since then, the Government has been meeting with RITES.
The initial investment required for the first phase was set at US$8 million. The Government is said to be considering an initial 40 per cent shareholding, to be used for improving infrastructure, loading stock and the purchase of new trains.
Having run for more than 150 years, the railway ceased operation in 1992 except for sections on which bauxite is drawn.
