KINGSTON Wharves Limited (KWL) benefited from offering increased services at its port operation the company earned $188 million in after-tax net profit for its March 2015 quarter or 39 per cent higher year-on-year.

The port wants to offer even more auto services and build specialised warehouse facilities in order to benefit from increased regional shipping activity.

“The group’s performance in the first quarter is indicative of the positive response of the market to our new business development initiatives, which are expected to continue throughout the year,” stated Jeffrey Hall, KWL chairman, in a notice accompanying the financials released this month.

KWL concluded negotiations and commenced service to a major automobile brand, during the first quarter, for a new consistent service in Kingston.

“We also expect to record increases throughout the year in our services offered to the automobile trade, stemming from the positioning of our facility as a niche auto-transshipment port,” Hall said, adding that KWL now offers the “most diverse” range of cargo handling options nationally.

Last October, in preparation for the expansion of the Panama Canal, KWL began construction of its US$20-million “new total logistics facility”. The move forms part of a US$70-million phased upgrade aimed at doubling throughput at the KWL to one million 20-foot container units (TEUs). The upgrade will allow the wharf, already one of the busiest on the island, to accommodate larger vessels traversing the expanded Panama Canal.

“We are in the process of commissioning custom-built, state-of-the-art warehouses to facilitate a new suite of value-added services to assist regional and international business with supply chain management. We are convinced that this diversification of our business model will facilitate the development of additional profitable revenue streams and enhance shareholder value. The Group is actively positioning these new services locally and to overseas interests, within the context of wider efforts to position Jamaica as a logistics hub,” added Hall.

Both container and motor unit volumes increased by 13 per cent relative to the same period in 2014. The results also reflect reduced operating expenses derived from a significant reduction in fuel costs and continued gains realised from KWL’s focused cost-management pro-gramme. Foreign exchange gains and tax benefits associated with the designation of KWL as a free zone also impacted positively on the group’s results.

Operating profits for group subsidiaries Harbour Cold Stores Limited and Security Administrators Ltd for the 2015 first quarter totalled $14.3 million compared to $10.3 million for the corresponding period of the prior year.

“Both subsidiaries continue to add to the competitive advantages of the Group’s core business of terminal operations, providing complementary services in the areas of cold storage, refrigerated container management, training and security,” stated the company which holds $16.9 billion in equity.