Ashford W. Meikle, Staff Reporter
Whatever it was that shareholder Stephen Bell (right) said to the bemused CEO of Kingston Wharves Limited (KWL), Grantley Stephenson (centre), it gave the managing director of Harbour Cold Stores, Mike Buckland, a lot to laugh about at KWL's annual general meeting on Wednesday at the Jamaica Conference Centre, downtown Kingston. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
KINGSTON WHARVES Limited (KWL) will spend almost $2 billion over the next nine months to expand and upgrade its facilities, according to its chairman and chief executive officer, Grantley Stephenson.
"There will be a rehabilitation of berths eight and nine to accommodate larger ships and the demolition of warehouses on the terminal and relocating the operations to a single warehouse on Ashenheim Road," announced Mr. Stephenson as he spoke at KWL's annual general meeting, which was held on Wednesday at the Jamaica Conference Centre in downtown Kingston.
Once the rehabilitation of berths eight and nine are completed, deeper channels will be created, allowing Kingston Wharves to be in "in a position to seek new shipping lines." And, in an interview with the Financial Gleaner, Mr. Stephenson said the demolition of berths five, six, seven and eight "will lead to an additional six acres of container storage," to accommodate growing container volumes.
A third phase of the group's expansion involves the acquisition of additional land in Newport West.
STUDYING PROPOSALS
The total cost of the expansion will be about US$30 million (J$1.8 billion) and will be financed by debt financing. According to the CEO, Kingston Wharves is studying "four or five proposals from finance companies [which] are quite attractive." About US$25 million (J$1.5 billion) will be spent on the rehabilitation of berths eight and nine while the remainder will be spent on the relocation to Ashenheim Road.
Another main thrust of KWL this year will be its investment in its human resources. 'We will invest in training. Focusing on the development of the individual will be a key role," said the CEO. He told the Financial Gleaner that "Because we're introducing a lot of high tech equipment and to master these ... you need proper training. We'll also be introducing hand-held computers so you won't find people walking around writing. We're also building up our management team ... because we'll need competent, highly trained persons."
INCREASE IN TRAINING BUDGET
The CEO noted that there has been a 315 per cent increase in the company's training budget for 2005. Concomitant with its personnel training the company has brought in a human resources specialist to spearhead its investment in human capital.
In reviewing the group's performance for 2004 vis-a-vis 2003 Mr. Stephenson notes a 32 per cent increase in revenue from $1.1 billion to $1.5 billion accompanied by controlled expenses, which grew by only 16 per cent, from a little over $1 billion to $1.2 billion.
Earnings per share (EPS) jumped by 282 per cent, from six cents in 2003 to 23 cents in 2004, while $75 million in dividends were paid compared to the $21 million paid in 2003.
The company had a 564 per cent increase in capital investment, which jumped to $384 million. There was a four per cent increase in the domestic tonnage handled, which moved to 1.9 million tonnes, up from $1.8 million tonnes, and an 18 per cent increase in the containers striped and stuffed which totalled 11,413 in 2004 compared to 9,688 in 2003.
The Kingston Wharves group also includes Security Administrators Limited (SAL) and Harbour Cold Stores. Its terminal operations are responsible for 76 per cent of the group's profits while SAL and Harbour Cold Stores contribute 10 and 14 per cent, respectively.
