The Port Authority of Jamaica installed two new Super Post-Panamax, bringing the complement of gantry cranes to 10. This January 2005 photo shows four ship-to-shore gantry cranes being installed at the Kingston Container Terminal. - File

Susan Gordon, Business Reporter

The Noel Hylton-led Port Authority of Jamaica (PAJ) is considering purchase of a seventh gantry crane to add to the original six it ordered from China, and has already got the National Contracts Commission stamp of approval to vary the original contract.

The new equipment will cost US$7.75 million more, which approximates the US$7.5 million unit price as the other six cranes.

Not a certainty

But a PAJ spokesman told Wednesday Business that it's not a certainty that the port would follow through on the last order.

The Kingston port is currently undergoing its fifth phase of expansion, costing US$250 million. The original six gantry cranes ordered from Shanghai Zhenhua Port Machinery Company Limited accounts for US$44.59 million (J$2.85 billion) of that programme.

"Initially the six cranes were negotiated and ordered. The fact that there's consideration that we may need a seventh crane is the reason for the variation," said PAJ public relations officer Pat Belinfanti, saying the port was seeking the necessary spending approvals and endorsements only as a precaution and to cut down on lag time between order and delivery in the event the equipment is needed.

"The crane has not been ordered yet because it is not a certainty, but we are exercising an abundance of caution because we know the long lead time it takes to have them manufactured," said the agency's PR.

Two of the six cranes have been delivered and were installed at the Kingston Container Terminal (KCT) on Wednesday.

The port area under development was initially designed to accommodate six cranes, but according to Belinfanti, the configuration suggests that a seventh could be accommodated.

Increased capacity

The ongoing development of the port is meant to increase the rated capacity of the KCT from 1.5 million TEUs (20-foot container equivalent units) to 3.2 million TEUs.

The phase five plan is projected to add an interim 700,000 TEUs in the current fiscal year, which ends March 31, bringing capacity to 2.2 million TEUs.

For the fiscal year April 1, 2005 to March 31, 2006, there was throughput at the KCT of more than 1.67 million TEUs.

The PAJ plans to finance the cost of the crane from its ongoing operations, Wednesday Business was told, if it follows through on the acquisition.

"It would be in our accounts," said Belinfante.

Operating surplus

In its 2005/06 financial year, the 35-year-old PAJ had a turnover of $8.5 billion - 70 per cent of which was KCT generated - and an operating surplus of $1.18 billion. This year, its earnings are projected to top $11 billion and its operating surplus double to $2.39 billion (US$1:J$67.52)

The cranes have been coming in from China since early December according to Belinfanti.

The two new Super Post Panamax gantry cranes can lift two 20-foot containers simultaneously and accommodate up to 65 tonnes versus the existing Bardella cranes which have a 40 tonne lift limit, but does a single container each time. The Panamax cranes are said to be much faster as well.

Transport Minister Robert Pickersgill, said at last week's installation of the new cranes that, when the other four are delivered later this year, the number of cranes would be boosted to 19, including 14 Super-Post Panamax cranes, according to Belinfanti.

susan.gordon@gleanerjm.com