PORT terminal and logistics company Kingston Wharves Limited (KWL), at the end of the six-month period ended June 30, saw revenue increases of approximately $645 million — 16 per cent above that earned for the corresponding period last year.

Total revenue for the six months, which amounted to $4.6 billion, was led by robust growth in terminal operations that contributed about $3.7 billion, or over half of consolidated earnings, for the period. The terminal operations division, which remains the larger segment of the group, contributes approximately 80 per cent of revenues.

“The improved performance in this division was driven by the continued increase in the company’s container business. The strong year-to-date (YTD) results demonstrate KWL’s competitiveness for shipping lines and cargo owners that seek to move cargo throughout the region. KWL will continue to invest in this business line to expand the capacity of our multi-purpose terminal and to drive long-term improvement in operating efficiency,” the company said in its half-year report posted with the Jamaica Stock Exchange.

The Logistic Services division, which generated approximately $1.4 billion of total revenue, reported marginal dips in its operating profit, owing to inflationary increases in operating costs and other administrative expenses which affected its performance.

For the six months, profit amounted to $1.23 billion, a few millions less than the $1.29 billion earned during the prior year’s period. Profits for the second quarter or April-June period also dipped to $547 million — almost $2 million less than that earned for the same quarter last year. Total assets, however, climbed to $41.5 billion.

KWL, which has been busy developing its infrastructure to take advantage of nearshoring opportunities, has for the past months aggressively undertaken a number of upgrades across its systems with an intent to procure long-term gains.

“KW Logistics is positioning itself to lead on receival, warehousing, and delivery of cargo for the domestic and regional markets. We benefit from ongoing investment in personnel; modern, purpose-built logistics; facilities; scanning and security systems; and integrated information technology platforms for cargo tracking, inventory control, and handling,” Chairman Jeffrey Hall said.

He said that irrespective of numerous challenges in the global environment he remains convinced that Jamaica’s logistics capabilities will continue to be relevant and sought after, provided its ports remain price-competitive and maintain service levels.

“Our emphasis on price competitiveness and service will require us to continue to invest in the development of our infrastructure while supporting, motivating and developing our team. This combination of initiatives can position our business to benefit from the adverse macroeconomic conditions by providing agility and cost-effective cargo handling and storage solutions as a response to higher global logistics costs and tight labour markets in the United States,” he said.

“Preliminary works are currently underway on expanding our deep-water berths, clearing yard space and improving its functionality, and developing new warehousing and logistics facilities that will allow us to capitalise on opportunities,” he added, also hoping for a modernisation of government trade policy regulatory framework and cost structure, which he believes are needed to significantly help in improving the country’s competitive position.

“These developments will strengthen KWL’s prospects as a multi-purpose port terminal and bolster its role as a strategic gateway for domestic and trans-shipment cargo,” he further stated.