June 18, 2020
Kingston Wharves’ newly appointed Chief Executive Officer, Mr. Mark Williams, commended the Company for delivering once again, robust results for FY2019 which demonstrates that the Company’s strategic focus remains on target. The Group recorded revenues of $7.89 billion for FY2019, 9% above the $7.25 billion booked in FY2018. Of this, the Group’s Terminal Operations delivered revenues of $5.75 billion, accounting for 73% of the Groups revenues while the Logistics Services delivered revenues of $2.14 billion, accounting for 27% of the Group’s revenues.
Profit divers for the Terminal Operations included:
- Motor unit moves increasing 20% to 120,000 (2018: 100,000)
- Container TEUs Handled totalling 209,000 (2018: 220,000)
- Bulk cargo advancing 13% to 113,000 (2018: 100,000)
- Break bulk cargo increasing 6% to 159,000 (2018: 150,000)
Profit divers for the Logistics Services included:
- Expansion of logistics services to local retailers and manufactures
- Expansion of logistics facilities to NVOCCs
- Completion of the Total Logistics Facility, “a game-changing 160,000 square foot intelligently designed warehouse housing facility, positions Kingston Wharves in the entry of supply chain management, light manufacturing, order fulfilment and other new value-added services”. Here, TCL facilitated creditable performance in both FCL and LCL Cargo handled and underpinned a re-packaged Logistics Suite facilities service
Interestingly, KW implemented a strategy in efforts of managing the impact of the pandemic on operations. This was through a four-stage process as follow:
- Dodge– Address the immediate COVID-19 health, safety and business continuity challenges facing our workforce, customers and business partners.
- Defend– Address near term cash management challenges, supply chain and sales resiliency issues and related immediate economic knock on effects during shutdowns
- Restore– Return the core business to a sustainable “survival scale” and profit level even in the event of a prolonged COVID19 crisis.
- Re-invent– Re-imagine winning in the new normal assuming a discontinuous shift in product/services arrangements, supply chain, pricing, route to marketing, competition and regulation.
In addition, Mr. Williams highlighted the Company’s aim of becoming the preferred port-centric logistics partner connecting the world to the Caribbean markets. This will be achieved through a few strategic imperatives, such as:
- Attracting, recruiting and retaining a competent world class workforce
- Accelerating digitization to gain efficiencies
- Strengthen, expand and diversify in order to compete regionally in multi-purpose, multi-user terminal services, leverage strong balance sheet to expand footprint into nearby territories and integrate vertically as well as to increase cargo types and services offered enhancing the Company’s position in the new normal.
- Infrastructure readiness, through Berth rehabilitation, the Ashenheim Road Near Port Facilities, expansive complex on 13.82 acres and scalability for regional and global distributors.
In closing, Chairman Mr. Jeffrey Hall stated that, “Undaunted by the challenges which faced the shipping industry in 2019, Kingston Wharves will be uniquely focused on building on its successes while charting new courses to achieve positive growth in 2020. While there remains lingering issues affecting the global sector, we are convinced that with the right strategic focus, effective operational steps and an empowered team, we will continue to consolidate our position as the Caribbean’s leading multi-purpose port terminal and expand our global footprint.”
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