Key Points:

TransJamaican’s profit jumped 46 per cent in the first quarter as higher traffic volumes and the new May Pen-to-Williamsfield highway leg boosted revenues.

The company says the new corridor is generating stronger-than-expected revenue, with more motorists using the full route between May Pen and Williamsfield.

TJH is positioning itself to bid for future toll-road projects, including the Montego Bay perimeter road and other proposed highway expansions.

TRANSJAMAICAN Highway Limited (TJH) profit rose 46 per cent in the first quarter as higher traffic volumes and the newly tolled May Pen-to-Williamsfield leg boosted revenues beyond the company’s expectations.

The toll operator reported net profit of US$13.2 million for the three months to March 31, up from US$9.1 million a year earlier, as revenues climbed 29 per cent to US$29 million.

TJH said the new Phase 1C extension of Highway 2000 — the May Pen-to-Williamsfield leg connecting Clarendon and Manchester — contributed US$3.5 million in revenue during its first full quarter of operations, accounting for roughly 12 per cent of group revenues. The corridor entered commercial operation in late December 2025.

Chief Executive Officer Ivan Anderson said the new corridor is generating more revenue per trip than initially projected as motorists increasingly use the full route between May Pen and Williamsfield.

“What we have seen is that most people now utilise the full length of the roadway from May Pen to Williamsfield,” Anderson told the Jamaica Observer in an interview Tuesday. “We’re seeing a little different mix in terms of traffic — more long-haul and less short-haul traffic — which has boosted the revenues as well.”

The results also highlighted the earnings power of TJH’s toll-road model, where additional traffic growth can translate disproportionately into profits once the core infrastructure is already in place.

While revenues climbed 29 per cent during the quarter, finance costs continued to decline as the company repaid debt and redeemed preference shares, helping to drive a sharp increase in profitability.

The company’s earnings before taxes rose to US$16.8 million, while EBITDA climbed 31 per cent to US$23.7 million. Borrowings meanwhile fell to about US$182 million at the end of March from roughly US$192 million a year earlier as TJH continued reducing debt.

The company also declared a US$13-million dividend during the quarter and paid it in April. The latest dividend payout comes as TJH continues balancing shareholder returns against debt reduction and long-term maintenance obligations.

“We gave some commitments when we went to the IPO, which was that we would distribute almost all the cash we had except for what we needed for routine maintenance, major renewals, and paying down our debt,” Anderson said. “As our profits grow, we continue to pay out more in terms of dividends.”

Even with the strong start from the new corridor, the company’s core earnings base still comes from the wider Highway 2000 network stretching from Kingston through Clarendon.

“Phase 1C is not a significant portion of our revenues,” Anderson said. “But obviously, because our costs are fixed, the additional revenues tend to flow to our bottom line.”

The company is also positioning itself to bid for the operation of future toll road projects, including the Montego Bay perimeter road now under development by the Government.

Anderson said TJH expects the Montego Bay project could eventually be opened to operators with toll-road experience, though he stressed the company has no exclusive rights or first option over the project.

“We expect that once it is completed, it may be offered to the entities who can operate toll roads in Jamaica to provide a bid,” Anderson said.

He added that the company is also closely watching proposed new highway links connected to the North-South Highway, including possible corridors towards Discovery Bay and White River that have been publicly discussed by Prime Minister Andrew Holness.

“We are very interested in those as well,” Anderson said. “Should they become opportunities, then obviously we’ll look at those in terms of trying to take advantage of those as well.”

TJH currently operates Highway 2000 East-West under a 35-year concession agreement and also holds an option to extend the concession by another 35 years, potentially taking the arrangement to 2071.

ANDERSON…What we have seen is that most people now utilise the full length of the roadway from May Pen to Williamsfield. We’re seeing a little different mix in terms of traffic — more long-haul and less short-haul traffic — which has boosted the revenues as well.