Montego Bay-based stevedoring company Cargo Handlers Limited is expanding beyond core business, investing cement distribution in western Jamaica.

The company, which is also involved in the business of equipment leasing and the provision of management services, has purchased a 30 per cent stake in local cement distributor, Buying House Cement Limited.

Buying House Cement, which is also headquartered in the second city of Montego Bay, has been operating in western Jamaica for the last 15 years, selling high-quality Portland cement under the Anchor brand since 2006. Buying House Cement is owned by Dominica’s official cement company, Domicem.

In disclosing the purchase of the 30 pe rcent share equity in Buying House Cement, Cargo Handlers highlighted that it “recognises the significant environmental, road safety and other benefits associated with having a cement distribution based on the western side of the island”.

At its board meeting held on December 9, the directors of Cargo Handlers passed a resolution for the company to invest in the local cement distributor, based at lot p14, 15 Pimento Way, Digiport, St James. 

CARGO HANDLERS ISSUE ADVISORY TO JSE

In an advisory to the Jamaica Stock Exchange (JSE), where its shares are publicly traded, Cargo Handlers reports that, “as Jamaica emerges from the global pandemic, the company sees that it will be vital to have a consistent supply of competitively priced cement for the construction of affordable housing, schools, hospital, hotels, and road infrastructure in support of the Government’s aggressive growth agenda.”

Cargo Handlers reported that it is “very proud to have the opportunity to support our national effort and the future of a vibrant Jamaican economy”. The company has pledged to offer exceptional products and service while playing a major role in Jamaica’s growth agenda.

Cargo Handlers provides steady employment for warehouse, delivery partners and Bustamante Industrial Trade Union represented port workers. 

POOR 2020 FOR CARGO HANDLERS

For the year ended September 30, 2020, Cargo Handlers net profit fell by 13 per cent to $113.33 million, compared with the $130.86 million recorded in 2019. Net profit for the fourth quarter decreased by 30 per cent to $19.79 million, relative to $28.46 million in 2019.

As for revenue this was down by 23 per cent year over year to $283.46 million versus $366.45 million booked for 2019. Revenue for the fourth quarter contracted 23 per cent to $54.31 million versus $70.59 million booked for the same quarter of 2019.

In its fourth quarter report, Cargo Handlers stated that “the result this period is attributed to a 33 per cent decline in containerised cargo handled as domestic commercial activities, particularly within the hospitality sector, continues to be negatively influenced by the COVID-19 pandemic.”

Administrative expenses recorded a 19 per cent decrease to $25.15 million in 2020 as against the 2019 out-turn of $31.06 million, while other operating expenses reflected a decrease of 15 per cent to $146.58 million coming from $171.83 million recorded in 2019.

This was indicative of the reduction in manning throughout the period, consistent with the less than optimal containerised loads presently being carried on the vessels.