KINGSTON Wharves Limited (KWL) expects the effects of the killer tsunami in Japan to cut local car trans-shipments this year, amidst releasing its March quarterly profits up 25 per cent year on year to $103.6 million.

The group also plans to invest in a new crane in order to service its existing and new business.

“In the short term the group expects to see a reduction in the volume of motor units trans-shipped as a result of the earthquake and tsunami in Japan. However, based on discussions with the shipping lines we anticipate normality to return by the end of the year,” stated Derek Jones chairman in his management discussion accompanying the financials posted to the Jamaica Stock Exchange. “During the second and third quarters of 2011 the group will be adding a crane and several pieces of complementary equipment to its stevedoring equipment fleet with the acquisition of the equipment the group expects to continue providing a high standard service to its existing customer base and the new business expected in 2011 to the benefit of all stakeholders.”

In the preceding financial year KWL stated one of its main areas of improvement were the volume of cars processed as a result of the establishment of the trans-shipment hub. KWL commenced operations of the motor unit trans-shipment hub for Höegh Autoliners in January 2010. On Sunday, the Business Observer observed that shipping line leaving the harbour, indicating some level of continued activity.

KWL said the improved performance of the group for the March quarter was largely attributable to the efforts of its terminal operations, which resulted in increased volume of cargo processed.

“The company’s improved revenues were attributed to the increased tonnage of break bulk, specifically cement, by 100 per cent or twenty one thousand tons when compared to the corresponding period in 2010, trans-shipment motor units which increased by 126 per cent, and containers increased by 10 per cent,” stated the report.

Revenue for the first quarter of 2011 was $619.2 million (2010: $483.54 million) or 28 per cent higher over the corresponding period in 2010. Operating Profit for the first quarter of 2011 was $277.1 million compared with $141.5 million for the same period in 2010, or 95.7 per cent higher year on year. The group also paid a $100-million dividend received from Harbour Cold Stores, it stated.

KWL Group’s other business had mixed results. Harbour Cold Stores (HCS) made $15.36 million in operating profit for the quarter ended March 31, 2011 or a decrease of 26.12 per cent year on year. HCS results continued to be negatively impacted by the loss of a major cold storage customer in 2010 and the reduction of interest income as a result of lower interest rates, stated the financials. “Management has been looking at the operations of HCS with a view to increase the profitability of the Group,” it stated.

Whilst Security Administrators Limited (SAL) made $11.55 million in operating profit for the first quarter or 37.8 per cent higher year on year. SALs increased profit for 2011 compared to 2010 resulted from increased rates granted by the Port Authority of Jamaica,” stated the financials.

For the year ended December 31, 2010, the KWL Group attained revenues of $3 billion, up from $2.57 billion the year before, an increase of 17.72 per cent. At the same time, the two-year freeze on wages and allowances for the period November 2008 to October 2010, helped keep costs down while administrative expenses were significantly reduced from $675 million to $569.9 million.