By Andrew Green, Staff reporter
One of the many container vessels ships docked at the Kingston Wharves carrying goods from the United States. - Norman Grindley /Staff Photographer
CONTROL OVER the handling of Jamaica's domestic cargo traffic is the prize behind the battle for control over Kingston Wharves Limited (KWL).
A group of shareholders is attempting to seize control of the company from Grace, Kennedy & Company. Grace holds the biggest block of shares in KWL and has operational control through a management contract.
There is an increasing concentration of Jamaica's trade with South Florida," said KWL marketing manager Duncan Davidson. And KWL dominates the wharfing operations of this trade.
In Jamaica's trade, "a lot of cargo is from the United States and most of this is from the south-east of the country," he said. Within this trade, South Florida is the most important element.
"We have a substantial niche," Mr. Davidson said. This is because KWL is uniquely well equipped to handle the relatively small vessels, often about region of 300 feet long, carrying out trade.
Located in Port Bustamante, Kingston Wharves Limited is to the east of the Kingston Container Terminal (KCT). The KCT is a regional transhipment hub which facilitates the re-assembly of cargo coming from separate locations being moved on to other destinations.
The infrastructure at the KCT makes it well suited to handling the huge vessels, often three times the length of those
at KWL, involved in this international traffic, Mr. Davidson said. But the layout of KWL makes it more appropriate location for dealing with its niche South-East US market.
As opposed to the Kingston Container Terminal, KWL handles both container traffic and 'break bulk' traffic. Break bulk cargo consists of separate items carried in a ship which are not fitted into standardised shipping containers.
About 30 per cent of the cargo moved by KWL is 'break bulk,' he said. The wharf handles about 10 vessels per week.
With 65 acres at its disposal, KWL is about half the size of the Container Terminal. At 30 feet deep, the water at its berths is around 12 feet shallower.
These conditions and its flexibility in handling different kinds of cargo, make KWL more suitable to handle the smaller vessels involved Jamaica's domestic trade, he said.
Nothing prevents a smaller vessel using the KCT facilities, he said. But the KCT has to prioritise its operations to serve its larger customers if it is to retain them so smaller operators should find KWL more convenient for them.
Ports used to be dotted all across the face of the island but there has been an increased concentration of trade at just a few points where better facilities are available, he said. The concentration has reached to point where Kingston now dominates the island in providing port facilities and goods destined for Montego Bay are sometimes shipped to Kingston for overland transport, rather than being offloaded directly in Montego Bay.
