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Ministry Of Transport’s Will Also Embark On A National Electric Vehicle Policy And Strategy For Bermuda

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The Ministry of Transport’s will also embark on a National Electric Vehicle Policy and Strategy for Bermuda, which will set out a plan to phase out the sale and importation of internal combustion engine vehicles by 2035. Transportation is a primary contributor of greenhouse gases around the world and reducing or eliminating emissions from transport will not only reduce Bermuda’s contribution to climate change but improve local air quality and reduce Bermuda’s dependence on foreign oil.

Bermuda has already experienced success this summer from the launch of operation of the first thirty electric public buses. The buses have been in operation for over six months and have saved the Department of Public Transportation (DPT) an estimated $50,000 in fuel costs alone. These savings do not include maintenance costs, which are expected to be nearly half those of diesel buses. Early experience in the maintenance shop indicates that the required services are simple and quick to complete. Additionally, these buses have led to significant energy and emissions savings over the summer. About 120,000 liters of diesel fuel were avoided through August, equivalent to the fuel burned over a typical 8-hour transatlantic flight.

The Ministry’s introduction to a National Electric Vehicle Policy can only multiply the benefits experienced this summer with the electric busses alone. As the global vehicle market moves towards electric vehicles, it will become increasingly important for Bermuda to prepare for this transition.

Bermuda has already started the electric vehicle transition, with fully electric rental car fleets, select private vehicle, and the recently introduced electric public buses. Being less than 25 miles long and 2 miles at its widest point, the island is a prime candidate for EVs without the need for long-range vehicles or frequent charging. However, most of the nearly 22,000 licensed private vehicles are still internal combustion engine vehicles. The slow pace of adoption can be attributed in part to the limited availability of EV models on the island. To this end, the Ministry will review sizes of EV’s so that more models are made available. The Ministry of Transport views the advancement of this policy as a significant development for Bermuda that will create a multitude of benefits for the environment and the people.

Bermuda Minister of Transport, the Hon. Wayne L. Furbert, JP, MP

Ministry of Transport – Throne Speech 2022 Initiatives

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Businessuite Markets

Mailpac Group Tags MyCart Express Assimilation For Enhanced Revenue And Operational Efficiencies To Turn Things Around

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Khary Robinson Executive Chairman Mailpac Group Limited has released the following Directors’ Report To Shareholders for the quarter ended March 31, 2024.

Introduction

Mailpac Group Limited (“Mailpac” or the “Company”) presents its unaudited financial statements for the quarter ended March 31, 2024.

Throughout the quarter, Mailpac focused on closing on the acquisition of MyCart, a significant step in entrenching the business as the leader in e-commerce fulfillment in Jamaica. Not only will the transaction significantly expand market share and improve service delivery, but the brands in the group are now better positioned to meet the goals and needs of their respective target markets. Additionally, despite increased competition and external factors impacting efficiencies, our financial performance for the reviewed period was commendable.

Financial Performance:

In Q1 2024, Mailpac’s revenue came in at $368.5 million, down by 7.8% from the previous year mainly because of the reduction in Mailpac Local and commissions from the marketplace platform at Aeropost.

Despite the reduction, Gross profit for Q1 was $197.9 million, up by 3.6% compared to the previous year.

Operating expenses in Q1 totaled $130.8 million, a 13.6% increase year-over-year, mainly due to strategic investments in business growth and data protection remediation efforts.

Net profit for Q1 decreased by 16.7% to $50.1 million.

We anticipate profitability improvements in 2024 through customer base expansion and overhead cost reductions due to strategic enhancements and shared key operations between Mailpac and MyCart Express.

Financial Position:

At the end of Q1 2024, Mailpac’s Total Assets were valued at $626.3 million, with a cash position of $156.2 million.

Shareholder’s Equity stood at $537.9 million.

Outlook:

With the completion of the acquisition of MyCart Express at the end of March 2024, we are optimistic about the expected synergistic benefits, enhanced revenue streams, operational efficiencies and increased shareholder value from Q2 onwards.

We are confident that the decision to bring both brands under the same umbrella will position Mailpac for continued growth, industry leadership and success in e-commerce.

For More Information CLICK HERE

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Future Energy Source Records Best Quarterly Performance To Date.

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Jeremy Barnes Managing Director For Future Energy Source Company Limited Has Released The Following Report For The Third (3rd) Quarter Ended December 31, 2023 For The Financial Year April 1, 2023 To March 31, 2024

Overview
We are pleased to report that the Company has achieved its best quarterly performance to date. The Company’s performance reflects an increase in gross profit, operating profit (EBIT) and EBITDA whilst acquiring and integrating an additional LPG filling plant (FESGAS Naggo Head), improving its brand awareness, and increasing its advertising, depreciation and interest expenditures.

The Company achieved:
1. Gross profit: J$423.21 million up J$182.82 million or 76.0% vs Q3 December 2022
2. EBIT: J$190.66 million up J$35.07 million or 22.5% vs Q3 December 2022
3. EBITDA: J$248.15 million up J$85.56 million or 52.6% vs Q3 December 2022
4. Net profit: J$149.25 million down J$4.07 million or 2.7% vs Q3 December 2022
5. YTD (9 month’s) Net Profit: J$465.95 million up J$31.56 million or 7.3%
6. Book value of equity: J$1.768 billion, which is up 35.8% since the last financial year ended March 31,2023 and up 51.8% or J$602.92 million when compared to Q3 December 30, 2022.

Further, the Company was able to:
1. Add its 21st FESCO branded retail service station to its network, FESCO Port Maria, in mid-December;
2. Acquire, integrate and operate its 2nd LPG filling plant facility, FESGAS Naggo Head;
3. Secure approval for its 2nd company owned and company operated service station, FESCO OVAL on Spanish Town Road;
4. Become the authorised distributor of Castrol motor oils for Jamaica;
5. Continue its service station network expansion efforts and work-in-progress Capex/investments.

Financial Highlights:

For the quarter ended December 31, 2023, FESCO recorded Turnover/Revenues of J$7,589.02 million which reflects a 13.0% or J$875.65 million year over year increase. Several factors affect revenue/turnover with the supply price of fuel being a major component.

On average, this quarter’s refinery prices have remained relatively flat for gasoline and have decreased significantly for diesel. Gasoline prices increased by between 0.75% and 1.9% or J$1.35- J$3.47 per litre and decreased by J$33.38 – J$34.04 for diesel relative to the similar period last year Q3 ending December 31, 2022.
Accordingly, FESCO’s growth in Turnover for the quarter (Q3) ended December 2023, relative to Q3 December 2022, reflects significant growth in litres of fuel sold.

FESCO recorded gross profit of J$423.21 million for the quarter which reflects growth of 76.0% or J$182.82 million year over year. The Company’s YTD Q3 2023/2024 gross profit of J$1,141.72 surpasses the gross profits earned for the entire year ended March 2023 by 28.6% or J$253.91 million and exceeds its YTD Q3 2022/2023 gross profits by J$495.08 million. The improvement in gross profit reflects both increasing throughput
(measured in litres of fuel sold) and diversification of product offerings (fuel types including LPG) and services (increased retail presence).

Operating Expenses of J$232.56 million, for the period, is up J$147.75 million versus the similar period last year or 174.2%.

This expansion of expenses directly reflects the expanded:
1. Operating locations including the additions of: FESCO Kitson Town, FESGAS Bernard Lodge and FESGAS Naggo Head;

2. Asset base which includes significant LPG and service station assets;

3. Operational scope (which now includes increased retailing and manufacturing);

4. Early stage new business costs including but not limited to:
a. business acquisition;
b. property acquisition and development costs; and
c. business integration costs.

The Company is committed to and has expanded its Marketing and Advertising expenditure to create brand awareness for its “FESGAS” branded LPG products, among other initiatives.

For the quarter, the Company’s advertising expenditure was J$14.06 million which is up 149.4% or J$8.43 million compared to Q3 December 2022. The Company’s Q3 (2023) YTD advertising expenditure of J$42.92 million exceeds last year’s Q3 (2022) YTD expenditure by J$29.62 million.

A look ahead
FESCO continues to monitor the moderating inflationary forces within the economy, the recent interest “freeze” by the central bank, the near full employment in many sectors of the economy, a resilient and expanding tourism product among other factors affecting consumer consumption as well as our allocation of investment capital. The Company must also navigate industry-related margin contractionary forces and consolidation within the industry. The Company remains mindful of opportunities for growth and further investment. Internal or self-funding via profit generation, profit retention, at this time, has proven to be the most efficient and cost-effective source of capital to fund growth.

The Company recently received approval for its proposed service station on Spanish Town Road, FESCO Oval. FESCO Oval will be a company owned and company operated service station (COCO) and will increase our retail presence within the Kingston and St Andrew (KSA) region. The development promises to showcase the creativity, forward thinking, mindfulness, commitment to community and the immense potential of Jamaica and Jamaicans and we believe it exemplifies our tag line and motto, “Proudly Jamaican”. The development will take approximately fifteen (15) months to execute and we anticipate its opening during Q2 2025 (i.e. July 2025 – September 2025).

Finally, the Company will continue to make investments in real assets and equipment to support expanding its service station businesses and network, its industrial client base, and LPG business.

For More Information CLICK HERE

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Mailpac Group Doubles Size With Acquisition Of myCart Express

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Khary Robinson and Garth Pearce of Norbrook Equity Partners Limited, Mark Gonzales and Samantha Ray of Mailpac, and Kamar Palmer and Aldane Smith of MyCart.

Mailpac Group Limited (“Mailpac Group”), Jamaica’s leader in e-commerce logistics and solutions, announced today that it agreed to acquire MyCart Express (“MyCart”), the fastest growing and second-largest courier company in Jamaica. This strategic transaction not only positions the combined entity as the largest courier platform in the Caribbean delivering over 1.5 million packages annually, but also merges the complementary management, service offerings, and geographic footprint of both entities to deliver superior growth to stakeholders.

After the closing of the transaction, the Board of Directors is expected to convene an extraordinary general meeting of the shareholders to propose that Mailpac Group be rebranded as MyPac Group (“MyPac”) which will operate several independent ecommerce solution-based brands, including Mailpac (premium-service courier), MyCart (value-focused courier), Pack Yuh Barrel (digital barrel packing and shipments), and Mailpac Local (local online shopping). While the management of each brand will remain intact, the Group will be overseen by a management committee made up of Khary Robinson and Garth Pearce of Norbrook Equity Partners Limited (“Norbrook”), Mark Gonzales and Samantha Ray of Mailpac, and Kamar Palmer and Aldane Smith of MyCart.

In addition to doubling the size and capacity of Mailpac Group, the transaction will see the owner operators of MyCart becoming shareholders of the publicly listed company, significantly adding to the innovation and execution capacity of the Group.

“After my first meeting with Aldane and Kamar, I knew they would be excellent partners in this journey of building the region’s leader in ecommerce solutions. Their innate ability to read the market, innovate solutions, and execute, is a perfect match to our proven capacity to deliver operational excellence in growing companies.”

The result of this combination of minds and resources will be revolutionary for consumers and shareholders,” said Khary Robinson, Executive Chairman of Mailpac Group.

The transaction also provides MyCart, its ownership, and its management team with a more seamless pathway to establishing and operating the largest and most trusted courier platform in the Caribbean.

“Our model at MyCart is unique, from customer acquisition to speed of delivery and everything in between. This led to five years of explosive growth, which was great, but also requires established support and resources to avoid certain pitfalls. We believe that Norbrook will give us the right balance of growth support and risk management. With MyPac, we can now continue growing aggressively through continued innovations for consumers but benefitting from the governance and resources of being a publicly listed platform run by proven business leaders,” said Aldane Smith.

In addition to meaningful synergies in various operational areas, Mailpac and MyCart will also get to strategically focus on their core market segments with appropriate services and pricing. “For years we struggled to be everything to everyone, from premium customers wanting a personalized experience all the way to their doorstep, to value-driven customers that just want to collect their packages as fast as possible at the lowest cost. With both brands under one umbrella, Mailpac can now focus on our core differentiators and MyCart can do the same,” said Mark Gonzales, CEO of Mailpac Group.

With conservative synergy estimates, Mailpac Group expects the transaction to deliver significant enhancements in revenue and profitability. Being the market’s second largest player with eight locations and tens of thousands of customers, MyCart brings substantial commercial and economic value to the Group. More importantly, with a robust technology backbone that was created in-house and an expansive warehouse presence in Miami, MyCart is poised to propel the Group in directions and into markets untapped by Mailpac.

“The transaction marks a pivotal moment in the logistics sector, with MyPac poised to lead the way in delivering exceptional courier services across Jamaica and the Caribbean. The combined expertise, resources, and innovative approaches of Mailpac and MyCart create a formidable force that will shape the future of logistics in the region,” said Robinson.

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Exploring the Path to Enhanced Transportation Efficiency in Jamaica

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Jamaica stands at a critical juncture in transforming its transportation sector to achieve both economic resilience and sustainable development. Reflecting on the broader goals within the realms of energy efficiency and sustainability, it becomes imperative to examine the factors influencing Jamaica’s transportation efficiency. As an island nation with a high dependency on imported fossil fuels, Jamaica faces unique challenges that directly impact its transportation sector’s efficiency and sustainability.

External Economic Vulnerabilities

Being economically vulnerable to external factors, such as fluctuations in global energy prices, significantly influences Jamaica’s transportation sector. This vulnerability stems from an over-reliance on imported oil, making the cost of transportation susceptible to global oil market dynamics. Such dependencies not only increase the operational costs of transportation but also hinder efforts towards achieving efficiency and sustainability.

The volatility of oil prices directly impacts the operating costs for both public and private transportation modes, translating into higher fares for commuters and increased expenses for goods transportation. This scenario underscores the urgent need for Jamaica to diversify its energy sources and reduce dependency on imported oil.

Integrating renewable energy sources into the transportation sector could serve as a viable mitigative strategy. Utilizing Jamaica’s abundant renewable resources, such as solar and wind, could significantly reduce the dependency on fossil fuels, thereby insulating the transportation sector from external economic shocks and contributing to enhanced efficiency.

However, transitioning to renewable energy-powered transportation systems involves overcoming a range of structural, economic, and technical challenges. Investments in infrastructure, public awareness, and regulatory frameworks are essential to facilitate this transition.

Societal Consumption Patterns

Jamaica’s high consumption society profoundly impacts transportation efficiency. Choices in vehicular purchases, for instance, are seldom made with energy efficiency in mind. This inclination towards high-consumption models contributes to greater fuel use and increased greenhouse gas emissions, further straining the push towards transportation efficiency.

Addressing societal consumption patterns requires a shift in public perception and behavior towards transportation. Encouraging the adoption of energy-efficient vehicles through incentives and awareness campaigns could play a significant role in this regard. Additionally, promoting public transportation and non-motorized transport modes as viable and efficient alternatives could also help reduce the transportation sector’s overall energy footprint.

Furthermore, enhancing public awareness about the interconnectedness of lifestyle choices, energy consumption, and environmental impact is crucial. Education and outreach initiatives that highlight the benefits of energy-efficient transportation choices could foster a societal shift towards sustainability.

The Government of Jamaica’s role in championing energy efficiency via policy interventions, such as the National Energy Policy and the Vision 2030 Jamaica Plan, plays a pivotal role in steering society towards more sustainable consumption patterns. Regulatory instruments, alongside targets and incentives for energy efficiency, can provide a balanced mix of push and pull factors to drive efficiency improvements across the transportation sector.

Infrastructure and Technology

Infrastructure and technology advancements are pivotal for enhancing Jamaica’s transportation efficiency. The existing transportation infrastructure often does not support optimal energy use or facilitate the deployment of modern, energy-efficient technologies.

Investing in infrastructure modernization and maintenance can significantly reduce energy consumption in the transportation sector. Improvements in road quality, for example, can decrease fuel consumption by reducing vehicle wear and tear and travel times.

Adopting advanced transportation technologies such as electric vehicles (EVs) and implementing smart traffic management systems can also contribute to efficiency. However, such technological transitions require supportive infrastructure, including EV charging stations and integrated traffic management systems.

In conclusion, a multi-faceted approach encompassing policy interventions, societal shifts, and infrastructure and technological upgrades is essential for improving transportation efficiency in Jamaica. Addressing these key factors will not only contribute to reducing Jamaica’s carbon footprint but also pave the way towards a more resilient and sustainable transportation sector.

  • Economic vulnerabilities due to reliance on imported oil significantly impact transportation costs and efficiency.
  • Societal consumption patterns and preferences towards high-consumption vehicles impede efforts towards transportation efficiency.
  • Investments in infrastructure and technology are crucial for enabling the adoption of energy-efficient transportation solutions.
  • Government policy and regulatory frameworks play a pivotal role in driving the transition towards more efficient and sustainable transportation systems.

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Logistics & Transportation

Newport West in Jamaica to Be Redeveloped

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Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill (second right), shares in discussion with (from left) Head of the European Union (EU) Delegation to Jamaica, Ambassador Marianne Van Steen; Director with the EU, Felix Fernandez Shaw; President of the Shipping Association of Jamaica (SAJ), Corah Ann Sylvester; and Chairman of Jamaica Producers Group, Charles Johnson. Occasion was a press briefing held at the Kingston Wharves Limited Corporate Office on Friday (January 26)

Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill has welcomed the involvement of the European Union (EU) in the redevelopment of Newport West.

The EU will be making funding available for a study and a business model, that will result in the area becoming a world class logistics facility, and a competitive resilient economic zone.

Speaking at a press briefing held at the Kingston Wharves Limited Corporate Office on Friday (January 26), Minister Hill said the group “understands that we want to be become the logistics hub of the region”.

The Minister informed that the level of investments and expertise that Jamaica is seeking to attract for Newport West, will not come without a study that is comprehensive and detailed.

“They have agreed to help fund that study. At the higher level, we will be looking at Jamaica’s Special Economic Zone, because we intend to become the logistics in the region Guyana is developing. They do not have a deep-water port, and no big ship can go in there, Jamaica then is the natural transshipment area to feed Guyana,” Mr. Hill stated.

The press briefing was attended by private sector investors, officials from the European Investment Bank, and other personnel from the EU.

Mr. Hill stated that the study will aid the European Investment Bank, and local investors, while adding that the local market, such as the pension fund, has money that can be put into long-term investments, “so, a development like this in the port, would be ideal for them”.

The EU delegation participated in numerous activities such as a tour of the German Ship Repair (GSRJ) Jamaica facility at Harbour Head, in Kingston. The itinerary also included visits to both port terminals, Kingston Freeport Terminal Limited (KFTL) and Kingston Wharves Limited (KWL), including the KWL Global Auto Logistics Centre.

Funding for the redevelopment of Newport West, will be channeled through the EU Global Gateway Agenda.

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