Kingston Wharves Limited (KW) has acquired a 27.126 stake in Cargo Handlers (CHL) for $1.095 billion as it continues its expansion into Western Jamaica.

The trade took place on Monday as company founder, director, and company secretary Jane Fray sold her 112,911,980 shares at $9.70 to KW. That made KW the second largest shareholder in the Montego Bay company and CHL an associate company of KW.

“CHL and its principals have a long history of partnerships that support the development of the Port of Montego Bay. We are optimistic that our relationship with KWL will be no different. We have invited representatives of KWL to join our board and to participate in the governance and ongoing strategic development of CHL,” stated Chairman Anthony Mark Hart in the joint CHL KW release.

The release also indicated that Fray’s sale formed part of an orderly and planned succession by a founding shareholder at retirement. That plan included a process to identify partners and successors with an interest and capacity to continue developing the business.

CHL was formed in July 1981 after the Prudential Corporation acquired a majority stake in Montego Freeport Limited. Prudential didn’t have an interest in stevedoring operations, which is the loading and unloading of cargo onto and from ships at a port. Fray, the former financial controller of Montego Freeport, and Anthony Keith Hart took over the stevedoring operations through Cargo Handlers Limited. Anthony Mark Hart later joined the company as an owner and director.

CHL eventually listed on the Junior Market of the Jamaica Stock Exchange (JSE) in December 2010 at $12.50 ($1.25 post-split). The company has since expanded its business to include the leasing of trailers and equipment plus management services for the management and operations of a related company. CHL even acquired a 30 per cent stake in cement importer and distributor Buying House Cement Limited (BHC) for $105.15 million. BHC is a subsidiary of Domicem SA, a cement manufacturer based in the Dominican Republic.

These different business segments allowed for CHL to report $473.48 million in revenue and $195.66 million in operating profit during 2024. After accounting for its associate stake in BHC and taxes, CHL reported $273.69 million in net profits. CHL had $1.29 billion in assets in September 2024, with $635.96 million in cash and short-term deposits. It had total liabilities of $128.53 million, with $10.44 million in debt and shareholder’s equity of $1.17 billion.

For the first six months (October to March) of 2025, CHL’s revenue base dipped 12 per cent to $240.25 million as there was a reduction in the number of cruise vessels homeporting in Montego Bay for the winter season. Despite an eight per cent dip in operating expenses to $152.57 million, the company’s operating profit decreased 17 per cent from $101.80 million to $84.35 million. However, a nearly tripling of its share of profit from BHC to $61.85 million and a minor increase in taxes resulted in net profit rising 26 per cent to $131.31 million.

CHL’s asset base was $1.39 billion, with $632.17 million in cash and short-term deposits and $684.79 million in non-current assets. Total liabilities and shareholder’s equity was $134.65 million and $1.25 billion. CHL has paid $3.056 per share or $1.27 billion in dividends since listing on the JSE.

Following the retirement of Anthony Keith Hart in February 2017, his interest as the largest shareholder was transferred to North Star Investments Limited which owns 113,242,640 shares or 27.2054 per cent of the company. Anthony Mark Hart owns 109,911,980 shares or 26.4053 per cent of CHL, while the Cargo Handlers Trust owns 9.99 per cent of the company.

CHL’s stock price increased 14 per cent on Tuesday to $11.05, which left it up ten per cent in 2025 with a market capitalisation of $4.60 billion.

KW continues Western expansion

Kingston Wharves indicated to its shareholders at its June 2024 annual general meeting (AGM) that it would be spending US$100 million ($15.94 billion) over the next five years to expand in Western Jamaica and at its Kingston location. The Western Jamaica expansion would involve construction of a western Jamaica warehouse and logistics complex to satisfy the interests of business partners in that side of the country.

KW indicated in its JSE disclosure that the company has the option to acquire an additional 13 per cent of CHL in the future to take its interest in the company to 40 per cent. However, the company clarified that it would not be seeking to acquire a majority stake in CHL. KW will account for CHL as an associate under the equity method going forward.

“KW will be evaluating opportunities for continued investment in CHL stock, in line with its investment goals and the needs and prospects of CHL. KW does not immediately intend to make any significant sales [or purchases] of stock units in CHL,” KW stated.

KW is a terminal and logistics operator, with its main operations at the Port of Kingston. Its terminal business includes the operation of public wharves and cargo terminal and the stevedoring of vessels. Its logistics operations include the provision of logistics facilities, port security services, and rental of warehouses and other properties.

KW’s first quarter revenue grew 10 per cent to $2.82 billion, with its terminal operations generating $1.86 billion. After accounting for higher operating costs, KW’s operating profit increased 10 per cent to $962.81 million. Due to higher financing costs, the company’s consolidated net profit increased seven per cent to $796.49 million, with $760.17 million attributable to shareholders.

KW’s asset base stood at $60.32 billion at the end of March as its property plant and equipment was valued at $43.82 billion, while it held $10.77 billion in cash and short-term deposits. Total liabilities and equity attributable to shareholders was $11.58 billion and $48.19 billion, respectively. KW will pay a $0.26 dividend totalling $371.85 million on August 15 to shareholders on record as of July 17.

“KWL has taken note of the bold spirit of enterprise and development that defines Montego Bay. The development of tourism on the North Coast and the pioneering moves in the BPO sector were centred in Montego Bay and have served as key economic engines for all of Jamaica. KWL has long been convinced that there will be an equally important role for Montego Bay in Jamaica’s logistics sector,” KW CEO Mark Williams stated in the joint release.

KW is consolidated as a subsidiary by Pan Jamaica Group Limited, which owns 42.80 per cent of the company’s ordinary shares. Jeffrey Hall chairs KW’s board and is the CEO and deputy chairman of Pan Jamaica Group. Jamaica Producers Group Limited owns a 34.5 per cent stake in Pan Jamaica Group.

“Kingston Wharves, like CHL, operates within the special context of a public wharf. We have in common a duty to timely customer service, capital investment, labour, teamwork, and skill-building as well as entrepreneurship in the interest of national development. We are truly excited about the opportunity to work together to serve Jamaica’s wider maritime community,” KW Chairman Hall closed.

WILLIAMS…KWL has long been convinced that there will be an equally important role for Montego Bay in Jamaica’s logistics sector.