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We Want To Transform Public Transport In Jamaica…Andrew Holness

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Public Transportation

Madam Speaker, I could not speak about roads without emphasizing that an efficient and orderly public transportation sector is not only critical for the development of any well-run society but is also essential for the daily lives of Jamaican citizens. Our vision is to have a professional transportation sector that is operated with pride, where the investors and operators are the strongest advocate for order and high quality service from their industry. I know there are a significant number of transport operators who view public passenger transport as a formal business. However, too many operators see it as a hustle. We want to assist our transport operators to create a real industry out of public transportation. I have heard the voices of our public transportation operators and I am convinced that there is a critical mass that share this vision to develop a first-world public transportation sector.

“Our vision is to have a professional transportation sector that is operated with pride, where the investors and operators are the strongest advocate for order and high quality service from their industry.”

Madam Speaker, the transport sector is multi-faceted and made up of a number of stakeholders, including drivers, owners/investors, and owners who are also drivers. Their concerns are varied and include the rising expenses that they are faced with, the need to access affordable financing to retool, and issues relating to appropriate places to stop, disembark and take on passengers.

Some have expressed to me that they have no special facility for health insurance or pensions.

While the transport sector is largely a private operation, there is a significant public service they provide and this government is willing to work with our transport operators in meaningful ways to address their issues and improve their conditions. In the coming weeks, I will be arranging consultations with the various taxi groups to further explore their concerns.

Madam Speaker, to support the public transportation sector, the Government will be implementing the following:

1. Cutting of renewal fees for Route Taxi, Hackney Carriage, Rural Stage Carriage, and Contract Carriers of public passenger vehicles by 30% for a period of one year. This incentive is given to allow operators to regularize themselves and avoid tickets. During this period the Ministry of Transport and Mining has been directed to establish an updated database of all operators. While over 9,000 operators were able to benefit from the CARE programme to the tune of approximately $300 million, too many operators were not able to access the programme for a variety of reasons including lack of registration or incomplete registration with the relevant authority at the relevant date.

2. We must improve the quality of service, behaviour and awareness of our drivers. We will be introducing a short course for all Public Passenger Vehicle drivers to be administered by the Island Traffic Authority in collaboration with the Heart Trust NSTA. Drivers will be invited to register for the course focused on the new RTA, defensive and courteous driving techniques, maintenance and sanitation procedures for vehicles, assistance with establishing bank accounts and digital wallets, and the use of digital payment technologies. All drivers who register and complete the course will be formally certified and receive a $25,000 grant from the Government. Specifically for motorcycle riders, we will be making 10,000 helmets available free of cost for who go through a short course.

3. Last year the government announced a special loan window for transport operators to refleet or upgrade their vehicles. We are currently recrafting the existing DBJ loan facility to facilitate access on preferential terms for persons who would like to change their current vehicle or motorcycle to an electric vehicle or motorcycle. Our preliminary analysis shows that electric vehicles could be very efficient for certain types of taxi operations.

4. The NWA has been directed to collaborate with the Ministry of Transport to assess the adequacy of parking, loading bays and approved stops in all urban areas and townships and along all approved routes. Where these facilities overlap with roads on the SPARK programme they will be addressed as the roads are improved.

The NWA will however prepare a specific budget for high use and critical loading areas and parking area to be funded in the next budget.

Madam Speaker, we want to transform public transport in Jamaica, the above measures along with the 100 electric buses announced last week is a significant seed in that transformation.

Nuturing S.E.E.D.S for Peace, Opportunity and Prosperity. PRIME MINISTER OF JAMAICA The Most Hon. Andrew Holness, ON, PC, MP Extracted from 2023 Budget Presentation

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Businessuite Markets

Mailpac Group Doubles Q1 Revenue to $716.4M, Driven by My Cart Express Integration

The Company delivered a strong performance for the first quarter of the financial year, with total revenues of $716.4 million, representing a 94% increase over the J$368.5 million reported for the corresponding period in 2024. This growth was primarily driven by the integration of My Cart Express in reporting.

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Khary Robinson Executive Chairman, Mailpac Group Limited has released the following Unaudited Financial Statements for the First Quarter Ended March 31, 2025

Throughout the quarter, Mailpac focused on improving service delivery, and increasing customer conversions.

Despite an increasingly competitive marketplace and external factors threatening efficiencies, our financial performance reflected the impact of our continued focus on long-term growth and sustainability, delivering superb results for the period.

Financial Performance: The Company delivered a strong performance for the first quarter of the financial year, with total revenues of $716.4 million, representing a 94% increase over the J$368.5 million reported for the corresponding period in 2024. This growth was primarily driven by the integration of My Cart Express in reporting. Gross profit for the quarter amounted to $388.7 million, compared to $197.9 million for the same period last year, reflecting improved margins and operational efficiencies. This improvement is attributed to increased operational efficiencies and negotiated cost reductions achieved through economies of scale. The Company recorded net profit of $69.7 million of Q1 2025, an increase from $50.1 million in Q1 2024, representing a 39% year-over-year increase. Strategic Developments and

Financial Position: During the quarter, Mailpac continued to make significant capital investment in technology infrastructure and logistics to support long-term scalability and development of service offerings, Additionally, we continue to benefit from the tax remission under the Jamaica Stock Exchange Junior Market rules, now at 50%, following the completion of the initial 5-year full remission period in December 2024.

As at March 31, 2025, Mailpac Group Limited reported total assets of $2.3 billion, up from $626.3 million as at March 31, 2024. The increase is largely attributed to the rise in intangible assets following the acquisition and increased right-of-use assets.

Shareholders’ equity grew to $806.2 million, compared to $537.9 million in the prior year. Outlook: The Company remains focused on growth through innovation, strategic partnerships, and enhanced customer experiences. With an increasingly digital consumer landscape and our expanding footprint, we are confident in delivering continued value to shareholders and stakeholders alike. The Board of Directors and management team would like to express our appreciation to our shareholders, customers, employees and partners for their continued support. We remain committed to delivering value for all out stakeholders and thank you for your unwavering trust in Mailpac.

For More Information CLICK HERE

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Logistics & Transportation

Unilever Caribbean’s Strategic Shift: Embracing Outsourced Logistics for Enhanced Efficiency

UCL’s strategic move reflects a broader trend among Caribbean manufacturers and distributors. Companies like Nestlé Jamaica have similarly outsourced their logistics operations to focus on core business areas. This regional shift is influenced by the desire to improve efficiency, reduce costs, and leverage the expertise of specialized logistics providers

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Unilever Caribbean Ltd (UCL) has recently approved a significant transformation in its distribution strategy by adopting a new route-to-market structure. This move involves outsourcing its distribution, warehousing, and logistics services to third-party partners, marking a pivotal shift aimed at enhancing operational efficiency and focusing on core business competencies.

Rationale Behind the Shift

The decision to outsource logistics functions is driven by multiple strategic considerations:

  • Cost Optimization: Outsourcing allows companies to reduce operational costs associated with maintaining in-house logistics infrastructure.

  • Focus on Core Competencies: By delegating logistics to specialized providers, companies like UCL can concentrate on areas such as customer acquisition, experience, and retention, which are critical for revenue growth.

  • Enhanced Flexibility and Scalability: Third-party logistics providers (3PLs) offer scalable solutions that can adapt to changing market demands, providing greater flexibility in operations.

These factors collectively contribute to a more agile and responsive supply chain, better equipped to meet the dynamic needs of the market.

Regional Trends in Logistics Outsourcing

UCL’s strategic move reflects a broader trend among Caribbean manufacturers and distributors. Companies like Nestlé Jamaica have similarly outsourced their logistics operations to focus on core business areas. This regional shift is influenced by the desire to improve efficiency, reduce costs, and leverage the expertise of specialized logistics providers

Jamaica’s strategic location and ongoing investments in logistics infrastructure further support this trend. The country’s Logistics Hub Initiative aims to position Jamaica as a global logistics hub, enhancing its appeal to companies seeking efficient distribution channels.

Global Perspective on Logistics Outsourcing

Globally, the logistics outsourcing market is experiencing significant growth. The market is projected to reach USD 2,153.7 billion by 2035, driven by factors such as globalization, e-commerce expansion, and the need for advanced supply chain solutions. Companies are increasingly turning to 3PLs to access cutting-edge technologies, improve service levels, and achieve cost efficiencies.

Outsourcing logistics functions allows businesses to benefit from the specialized capabilities of 3PLs, including real-time tracking, inventory management, and advanced analytics. This strategic approach enables companies to respond more effectively to market changes and customer expectations.

Conclusion

Unilever Caribbean’s adoption of an outsourced logistics model signifies a strategic alignment with both regional and global trends aimed at enhancing operational efficiency and focusing on core business functions. By leveraging the expertise of third-party logistics providers, UCL positions itself to better navigate the complexities of the modern supply chain landscape, ultimately aiming to deliver greater value to its customers and stakeholders.

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Businessuite News24

$420 Million Secured for Second CNG Plant at JUTC Spanish Town Depot

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An investment of $420 million is being made by Jamaica’s largest independent power supplier, InterEnergy Group, for the development of the second compressed natural gas (CNG) facility, at the Jamaica Urban Transit Company’s (JUTC’s) Spanish Town depot.

The disclosure was made by Minister of Science, Energy, Telecommunications and Transport (MSETT), Hon. Daryl Vaz, during a press briefing at the Ministry’s offices in Kingston, on Thursday (May 22).

“This facility will be able to fuel 202 CNG buses per day. Added to the [existing facility at the] Spanish Town depot, that is a total of 397 CNG buses per day,” the Minister outlined.

Mr. Vaz pointed out that the JUTC’s CNG fleet currently has 127 buses, while another 100 are set to arrive in the island within weeks.

“When the InterEnergy facility is completed, we will not only have the capacity to fuel the 227 CNG buses in the fleet but we will also have the capacity to fuel 75 per cent above the demand that will exist for the JUTC with the CNG,” the Transport Minister maintained.

He noted that the InterEnergy facility is expected to be completed between August and September of this year.

“The [new CNG] buses will get here by the middle to the end of June. That is down time. School is off, and we will be in a better position to start back-to-school, not only with the buses being fuelled in Portmore but the new facility in Spanish Town,” he outlined.

Meanwhile, the Minister indicated that the Government has received a proposal from Xcelerate Energy, which has indicated that it is prepared to fund and build out Phase 3 of the Portmore CNG fuel plant, taking the facility’s capacity up to 195 buses per day.

The Government’s investment in CNG buses is expected to further improve operational efficiencies at the JUTC, while leading to significant savings.

By: DONIQUE WESTON JIS

Photo: Donique Weston

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Businessuite News24 International

Uber Introduces Route Share: A New Chapter in Affordable, Shared Mobility

Early reactions to Route Share have been mixed. Some passengers appreciate the cost savings and the opportunity to contribute to environmental efforts. However, drivers have expressed concerns about the potential for increased complexity and reduced earnings associated with shared rides. Past experiences with similar services, like Uber Pool, have left some drivers wary of the challenges posed by coordinating multiple pickups and drop-offs.

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In a strategic move to enhance affordability and sustainability, Uber has unveiled “Route Share,” its latest shared ride option. Launched during the company’s annual “Go-Get” event in New York, Route Share is currently available on busy weekday routes in cities like New York, San Francisco, and Chicago, with plans to expand to additional markets.

Key Features of Route Share:
Fixed Routes: Route Share operates on specific, high-demand corridors during weekday morning and evening rush hours (6-10 a.m. and 4-8 p.m.).
Scheduled Pickups: Pickups occur every 20 minutes, making it predictable for commuters.
Shared Rides: Riders share a vehicle with up to two other passengers, reducing costs.
Affordable Pricing: Fares are designed to be up to 50% cheaper than UberX.
Convenient Booking: Riders can book a seat up to seven days in advance or as little as 10 minutes before departure.
Initial Availability: Route Share is initially available in several major US cities, including New York City, Chicago, San Francisco, Boston, Los Angeles, and Washington, D.C.

Understanding Route Share
Route Share is designed to provide Uber’s most budget-friendly ride option by allowing passengers traveling in similar directions to share a ride. This service aims to reduce costs for riders while promoting efficient vehicle usage and lowering emissions. Unlike its predecessor, Uber Pool, Route Share focuses on streamlining the shared ride experience by limiting the number of co-riders and optimizing routes to minimize detours.

Rationale Behind the Launch
The introduction of Route Share aligns with Uber’s broader strategy to cater to price-sensitive consumers amid economic uncertainties. By offering more affordable transportation options, Uber aims to maintain and grow its user base. Additionally, Route Share supports Uber’s commitment to sustainability by encouraging shared rides, which can lead to fewer vehicles on the road and reduced carbon emissions.

Initial Market Feedback
Early reactions to Route Share have been mixed. Some passengers appreciate the cost savings and the opportunity to contribute to environmental efforts. However, drivers have expressed concerns about the potential for increased complexity and reduced earnings associated with shared rides. Past experiences with similar services, like Uber Pool, have left some drivers wary of the challenges posed by coordinating multiple pickups and drop-offs.

Comparison with UberX Share and Competitor Services
Route Share is part of Uber’s suite of shared ride options, which includes UberX Share. While both services aim to offer affordable rides through carpooling, Route Share is specifically tailored for high-demand routes during peak weekday hours. In contrast, UberX Share is available more broadly and allows for dynamic matching of riders throughout the day.

Lyft, Uber’s primary competitor, has had a varied approach to shared rides. The company previously offered Lyft Line and later Lyft Shared, but these services have seen fluctuations in availability and popularity. Lyft has faced challenges in maintaining consistent shared ride offerings, partly due to driver dissatisfaction and operational complexities.

Looking Ahead
Uber’s launch of Route Share represents a renewed commitment to shared mobility solutions that balance affordability, efficiency, and sustainability. As the company gathers more data and feedback from both riders and drivers, adjustments to the service are likely to ensure it meets the needs of all stakeholders. The success of Route Share will depend on Uber’s ability to address the logistical challenges of shared rides while delivering a positive experience for users.

For riders seeking cost-effective transportation options and willing to share their journey with others, Route Share offers a promising alternative. As urban areas continue to grapple with traffic congestion and environmental concerns, services like Route Share could play a pivotal role in shaping the future of urban mobility.

 

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Businessuite Markets

Knutsford Express Charts Strategic Course Amid Profit Decline and Operational Investments​

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Knutsford Express Services Limited (KEX) has released its unaudited financial statements for the third quarter ended February 28, 2025, revealing a nuanced financial landscape. While the company experienced a modest revenue uptick, net profits have seen a significant decline, prompting strategic shifts in operations and investments.​

Financial Performance Overview

For the third quarter, KEX reported revenues of J$593 million, marking a 4.8% increase from J$566 million in the same period last year. Over the nine-month period, revenues rose by 7.3%, reaching J$1.643 billion compared to J$1.531 billion previously.

Despite these gains, net profit for the quarter plummeted by 54.9% to J$49 million, down from J$111 million in 2024. The nine-month net profit also declined by 36.8%, settling at J$170 million from J$269 million in the comparative period.​

The company attributes the profit downturn to lingering effects of subdued passenger arrival numbers in Jamaica. Additionally, increased administrative expenses, particularly in staff costs, have impacted profitability. In the first quarter of 2025, administrative expenses rose to J$520 million, affecting net profits despite a revenue increase to J$592 million.

Strategic Investments and Operational Enhancements

In response to these challenges, KEX is investing heavily in fleet expansion and digital transformation. The company plans to inject J$500 million over the next three years to upgrade its bus fleet and implement advanced digital systems . This includes the introduction of airport-style departure gateways and digital ticket-checking kiosks, aimed at enhancing operational efficiency and customer experience.​

The Drax Hall depot in St. Ann has become a focal point for these innovations, serving as a prototype for the new passenger processing model. CEO Oliver Townsend emphasized the importance of these investments, stating, “We’re redoubling our investments and efforts on the core business and on initiatives that will improve our customer’s satisfaction”

Service Portfolio Adjustments

KEX is also refining its service offerings to align with market demands. The company announced the discontinuation of its international shipping and e-commerce service effective October 7, 2024, due to a 10% decline in revenue from overseas courier services . This strategic move allows KEX to focus on its core transportation and local courier services, which continue to be significant revenue streams.

Outlook

Despite current profitability challenges, KEX maintains a strong asset base, which grew by over 10.7% in the third quarter, reaching J$2.113 billion from J$1.926 billion the previous year. The company’s commitment to enhancing operational efficiency and customer satisfaction positions it for potential recovery and growth as market conditions improve.​

Conclusion

Knutsford Express is navigating a complex financial environment with strategic investments in infrastructure and technology. By focusing on core services and operational excellence, the company aims to bolster its market position and return to robust profitability in the coming periods.

For More Information CLICK HERE

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