Motorists will continue to benefit from free passage on phase 1C of Highway 2000 from May Pen, Clarendon to Williamsfield, Manchester, as National Road Operating and Constructing Company (NROCC) Limited and TransJamaican Highway (TJH) Limited continue to hammer out a concession agreement.

This was confirmed by TJH Managing Director Ivan Anderson in a call with the Jamaica Observer last Tuesday. NROCC has been managing that leg of the highway since it opened to the public in September 2023. NROCC was given approval in July to accept TJH’s offer of US$20.30 million (J$3.16 billion) to be granted the right to operate and maintain phase 1C of Highway 2000 until November 20, 2036. However, there was no new period on when the tolls would be charged after NROCC gave another free trip extension beyond the original August 17, 2024 deadline.

“As you know, from July, Cabinet approved the award of the concession, but we have not been able to finalise the actual concession agreement. So, we continue to work through that, and I think we’re closer to the end than we were to the beginning,” Anderson explained regarding the delay to operate phase 1C under its new subsidiary TransJam Highway Operators Limited.

Anderson added, “We have established a new subsidiary company who would enter the concession agreement with NROCC to implement the project. It is that agreement that we’re now trying to finalise with NROCC.”

TJH has the right to operate and maintain Highway 2000 which includes the Portmore, St Catherine section and Caymanas, St Catherine to May, Pen Clarendon leg of the highway. The highway has four toll plazas and is operated by TJH’s 51 per cent controlled subsidiary Jamaican Infrastructure Operator (JIO) Limited. This is governed under a concession agreement which expires in November 2036 with another 35-year extension clause.

TJH generated US$75.20 million of revenue during 2023 from the 49.9 km of highway that it currently manages. The additional 28 km of roadway that it will get once it manages phase 1C is set to bring in an extra US$9 million in revenue for the business.

Over the first nine months of 2024, TJH’s revenue increased nine per cent from US$55.37 million to US$60.43 million as its traffic improved by five per cent along with the toll adjustments which are in line with inflation. Despite higher administrative expenses, TJH’s profit before tax was up 26 per cent to US$29.33 million with net profit coming in 26 per cent higher at US$21.99 million. The trailing twelve months earnings per share is US$0.000023.

Due to the impact of Hurricane Beryl, the Portmore toll plaza traffic was flat during the third quarter while all other toll plazas experienced higher traffic passing through their points. Despite Portmore not seeing growth in traffic, its revenue was up three per cent to US$8.61 million. The Vineyards toll plaza’s revenue was up 10 per cent to US$8.13 million, while the May Pen and Spanish Town toll plazas had revenue of US$2.52 million and US$1.52 million, respectively.

TJH’s total assets over the nine months were up two per cent to US$296.76 million as the company grew its current assets by 127 per cent to US$19.24 million with cash at US$14.67 million. Total liabilities and shareholder’s equity were US$240.85 million and US$55.92 million, respectively.

With the call option to acquire the remaining 49 per cent interest in JIO expiring on December 9, Anderson said, “We have the option to acquire the 49 per cent stake owned by Bouygues and that option continues up to the end of the year. So, we expect that option will be exercised by the end of the year.”

The exercise of that call option was subject to changes in the concession agreement being approved by NROCC.

Anderson noted that the construction of the new Rubis service station near the Portmore toll plaza began less than two months ago and should be completed by the second quarter of 2025 and that the ramp by Freetown is about 30 per cent complete. A recent advertisement by TJH in the Jamaica Observer noted that the installation of an additional Eastbound T-Tag lane at the Vineyards Toll Plaza would begin this month and should be completed by mid 2025. The ad also noted that new reversible lanes were installed at the Portmore Toll Plaza to increase the number of lanes in either direction as the traffic situation demands.

TJH’s Jamaican dollar (JMD) stock price closed Monday at $4.24, with an all-time intraday high of $4.49, which leaves it up 56 per cent year-to-date while the United States dollar stock closed Monday at US$0.0246 which leaves it up 46 per cent in 2024. TJH paid a J$0.0952 dividend totalling J$1.19 billion (US$7.50 million) on October 24 to shareholders on record as of October 2. That was its second dividend in 2024 after paying a J$0.0943 dividend on April 24.

TJH director Patrick Hylton, a former NCB Financial Group (NCBFG) executive, acquired 116,956,000 shares September 17-20 at $3.25, which translates to an acquisition cost of J$380.11 million. This makes Hylton the largest individual director shareholder on the board with that move also netting him a $11.13 million dividend on October 24.

His other director, Steven Gooden, another former NCBFG executive, bought 20 million shares on March 21, 2023, at $1.35, before he sold them in March 2024 at around $3.33 per share. Director Alok Jain has also sold 12,490,000 shares on August 28 at a cost of US$0.02 per share to leave himself with 500,000 shares, while Ivan Anderson has sold 14,372,216 shares during the year to be left with 5,443,120 shares. Susan Garriques has also sold 4.5 million shares to be left with 3.10 million shares. NROCC remains the largest TJH shareholder with a 20.0064 per cent stake.