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THE GLEANER, THURSDAY, MARCH 2, 2017
G11
Rail services in Jamaica have remained unbroken for One Hundred and Seventy-
One (171) years, with freight services to the bauxite industry remaining an on-going
operational success story.
In 1992, the proverbial breaks were placed on the operations of passenger train or
rail service in Jamaica as the Kingston to Montego Bay rail line segment was
closed. The completed halt in passenger rail operation in Jamaica took place after
the gradual closure of the other line segments over the years, starting with: Linstead
to Ewarton (1947); Logan’s Junction to Vernamfield (1961); May Pen to Frankfield
(1972); Buff Bay to Port Antonio (1980) and Bog Walk to Buff Bay (1983).
Rail Services began in 1845 in Jamaica, making it one of the oldest in the Western
Hemisphere. The development of the Jamaican Railway infrastructure and services
has been a feat of engineering (first viaduct built) and technological innovation (e.g.
communication) which has created a historical and cultural legacy married to one of
the most scenic and beautiful railway
routes anywhere in the World.
When combined, these features
have produced a vintage and iconic
rail system of near unmatched pro-
portion, perhaps worthy of recogni-
tion as a United Nations designated
World Heritage Site.
While the end of passenger rail serv-
ice brought an end to one element of
the railway services, over the years,
successive governments have rec-
ognized the inherent value of operat-
ing a successful and comprehensive
railway system in Jamaica that can
provide financial, economic, social
and cultural benefits to many com-
munities across the length and
breadth of the island. The govern-
ment’s objective to have a restored,
operationally and financially suc-
cessful Railway in Jamaica, is of
immense value, if for no other rea-
son than the fact that rail transport is
the most cost-effective mode of land
transport and by extension one of
the cheapest modes of transporta-
tion (of goods and services). The
economic benefits, therefore, espe-
cially in the context of building, inter
alia, a logistic-driven economy, cannot be overstated. It’s a lynch-pin in the multi
–modal concept that the Ministry is pursuing.
In August 2011, the government sought to re-establish passenger rail services with
a limited operation from Linstead to Spanish Town in St. Catherine. While there
was overwhelming interest, demand and success at the outset for the service, over
the period of a year, this demand and interest waned. As a result, the limited pas-
senger service was short-lived and resulted in its closure, approximately one year
later. This effort saved the assets of the railway and made it possible for for its
divestment
Notwithstanding this partial or temporary setback, the government’s vision for build-
ing an integrated multi-modal transport network and system in Jamaica, tied to the
economic benefits associated with rail services, has propelled it forward in seeking
to revitalise the Jamaican railway system. The government has turned to Public
Partnership (PPP) modality to rehabilitate and revitalise the railway once again. It is
expected that this approach will lead to the business playing its critical role in eco-
nomic and community development and re-development across the island. Special
emphasis on the tourism, bauxite, manufacturing and retail, energy, telecommunica-
tions sectors and private (excursions) and public passenger services (with a limited
focus on the largest population concentration in the KMR and May Pen) will drive
the new dispensation
As a consequence, for the past several years, the government has been pursuing a
privatisation initiative, under its PPP Policy Framework, for the assets of the
Jamaica Railway Corporation (JRC). The process has seen the submission of busi-
ness plans from two unsolicited proposers, one of which was accepted after revi-
sion by the proposer or the potential investor. In December 2016, a Memorandum
of Understanding, valid for six months, was signed with Herzog Jamaica Ltd, a sub-
sidiary of Herzog International. The period of six months should see the company
finalising all due diligence matters and completing is final business plan, as well as
securing (tying up) the necessary financing to demonstrate that it can fund and
implement the project.
Assuming the final business plan is accepted by the government, a review and
detailed assessment will be undertaken. If all the various tests are passed by
Herzog, the government will negotiate and sign a long-term Concession Agreement
with the company for the rehabilitation, operation and management and (where
applicable) sale of the JRC’s rail and other assets.
Herzog has indicated a planned investment and roll-out of the rehabilitation and
revitalisation of the railway based on a three-phase programme starting from
Montego Bay to Appleton (Phase 1); Spanish Town to Ewarton and Spanish Town
to Clarendon as Phase 2a and from Clarendon Park to Appleton as Phase 2b.
Under the current plan,
Kingston to Spanish Town is
deferred for consideration at a
later date. The time frame
associated with the two phases
would see the entire project
being completed in approxi-
mately three years, with Phase
1 (Montego Bay to Appleton)
completed within 12 months
after the signing of a
Concession Agreement.
In the meantime, there contin-
ues to be a resurgent interests
in private passenger rail servic-
es (excursions) from schools
and companies, which the JRC
has positioned itself to maxi-
mize the value to be derived.
There also continues to be on-
going expression of interests to
operate a part or the entire rail-
way network in Jamaica from
various local and international
parties. This augurs well for
the future of the Railway in
Jamaica and signals that the
goal of revitalising the Railway
in Jamaica will be achieved
sooner rather than later.
As a result, there appears to be a “light at the end of the tunnel” for the Jamaica
Railway system to be rehabilitated and revitalised. The revitalised railway will bring
significant benefit to the Jamaican economy and by extension, many and diverse
local economies in communities across the island. This development will provide a
boost to tourism sector, which has already seen an increase in investments to the
Appleton Tour/ Experience and Attraction pending the completion of Phase 1 of the
project. The bauxite sector is also expected to benefit from this project through
cheaper mode of transporting its products (bauxite and alumina) as new areas are
opened up for production and connectivity is enhanced in the rail and land transport
network.
Other potential areas/ sectors that could see benefits accruing from the revitalised
railway network include Utilities, Fuel and Telecommunications where substantial
savings could result from the use of the rail reservation or rights-of-way as the
backbone to traverse the island with their products and services. A revitalised rail-
way system would also generate significant social and economic benefits not just to
the commuters but also to the national economy with savings in road maintenance
costs, road vehicle operating costs, road accident costs, among others.
A study completed by Halcrow Group Limited in 2009, highlighted the fact that “the
impact on the national economy of the investment in the rail rehabilitation
scheme…valued the increase in Jamaican Gross Domestic Product (GDP) at about
US$100 Million per annum” or approximately JA$13 Billion.
With such prospects, the investment in the railway rehabilitation programme would,
at today’s prices, generate 2 per cent of the 4 in 5 per cent growth target for the
economy and as a result, the “the light at the end of the tunnel” would this time
quite appropriately be the “on-coming Jamaica Railway train.”
(Front left-right) Edward Morgan, Donald Hanson, Ferris Ziadie (Chairman, JRC), Ann Marie Chin
(Director), Fitzroy Williams (CEO), Ian Dixon, Bruce Kerr, Linton Dwyer, Logan Campbell, Calbert
Holness. (Top) Vincent Cameron, Anthony Matthews, Roy Howell.
THE LIGHT AT THE END
OF THE TUNNEL
MONTEGO BAY METRO LTD
SAFE WESTERN TRAVEL
The primary role of Montego Bay Metro when it was established
was to operate a school bus service in Montego Bay; however as
the years progressed, the Company has expanded its operations
into becoming a municipal transportation service for Montego Bay
and its environs.
ACHIEVEMENTS
• Ridership of 1, 576,764 since February of last year. This total
represents an increase of 17% in overall ridership relative to the
similar period the previous year. This is an indication that more
public awareness exists concerning the service.
• With a fleet of 16 buses, market share has grown tremendously
and has seen an improvement in the company’s turnaround
time and frequency on the existing routes. This has also trans-
lated into an increase in revenue collections.
•The introduction of two new routes, initially on a trial basis but
based on the success, it is now part of the cadre of regular
routes.
• Service is offered in the western parishes of St. James, Hanover
and Trelawny. The Company rolls out a daily fleet of 16 buses to
service 5 municipal routes along with 4 contract school carriage.
• Refurbishing and infrastructural activities ahave also taken place
at the plant resulting in improved service delivery and a more
aesthetically pleasing environment.
• There has also been an upgrade of the Information Technology
System.