Kingston Wharf 75th Anniversary

NAME OF FEATURE | THE GLEANER | SUNDAY, NOVEMBER 29, 2020 30 project entailed the demolition of the existing berth facilities that were compromised.“We, therefore, could not service vessels from there. In their place, we constructed new berthing facilities, using modern techniques. We were also able to repay the bank in less than the time allocated,” the former CEO stated. “If we had not undertaken these two developments (the acquisition of equipment and the redevelop- ment of Berths Eight and Nine), we would not have been able to effi- ciently serve vessels like Seafreight, Seaboard and others. In fact, as a result, Seaboard, too, was able to establish its trans-shipment hub at KWL. Also, during a hurricane, an 8,500 TEU Maersk vessel was di- verted from The Bahamas to KWL. This could not have been possible without these investments,” Mr Stephenson stated. Vessel lines such as Seaboard and Crowley have been long-standing partners. Apart from having rep- resentatives on the board of the company, Seaboard vessels call on the KWL terminal at least four times per week, plus the line has sharing arrangements with other lines. In addition to serving other shipping lines such as Evergreen and a number of feeder services, KWL also collaborates with a host of shipping agents, customs bro- kers, freight forwarders, non-vessel operating common carriers, haul- age contractors, and government entities, such as Jamaica Customs and the Port Authority of Jamaica, to serve customers. In 2014, KWL advocated for and was granted free zone status, en- abling the company to benefit from tax incentives to underpin further growth. In 2020, Kingston Wharves wouldmake the transition to Special Economic Zone regime, following the passage of that legis- lation in 2016 and its replacement of the Free Zone Act.“At the time, I saw the free zone push as a key element in the company’s continued devel- opment. This was a turning point and a positive move that helped to set us on a firmer footing for the future,” observed Mr Stephenson. The Panama Canal expansion was completed in 2016, expanding the channel’s capacity from ships that were around 5,000 TEUs to 15,000 TEUs, installing additional locks to accommodate the larger or Post- Panamax vessels. In anticipation of the enlarged Panama Canal, KWL began laying the groundwork for further expansion. GAME-CHANGING LOGISTICS INFRASTRUCTURE KingstonWharves’game-chang- ing 160,000 sq ft Total Logistics Facility (TLF) was one of these major undertakings. Officially opened in 2018, it propelled KWL more fully into logistics services.“Earlier, when we had started acquiring land, it was with this in mind; that we would construct a large off-dock warehouse,”Mr Stephenson said. The TLF houses the company’s corporate offices, client services operations, warehouse services, and logistics suite space for rental. Its construction allowed Kingston Wharves to get involved in 3PL and 4PL logistics services, such as order picking and packing, post- ponement services, order fulfilment, and warehousing and returns, along with FCL and LCL warehouse opera- tions, among others. The TLF, along with KWL’s Kingport Warehouse Complex warehouse, constructed in 1980, and other acquired facilities bring KWL warehousing capacity to over 340,000 sq ft. Diverse cargo handling neces- sitated the reallocation of yard space on the KWL terminal. The company would demolish its on- dock warehouses to liberate yard space for a range of cargo types. This would pave the way for what Mr Stephenson cited as another watershed activity – the establish- ment of KWL as a motor vehicle trans-shipment hub. “Although for many years KWL was engaged in small-scale trans-shipment trade to the Cayman Islands, in late 2009 we entered a long-term agreement with one of the largest motor-shipping compa- nies in the world, Höegh Autoliners of Norway. The deal saw Kingston Wharves becoming the trans-ship- ment hub serving the Caribbean and Latin America. This business segment has grown over the years and now serves 30 countries across the region,”Mr Stephenson further disclosed. Today, the Kingston Wharves terminal serves six autoliners. “The service and partnership with Höegh has been so efficient that other car carriers such as Eukor and Glovis were attracted to Kingston, join- ing K-line, NYK and Mitsui, who were already calling at KWL,” Mr Stephenson added. KWL leased land at Tinson Pen to establish the Global Auto Logistics Centre (GALC), which enabled the company to accelerate its move into automotive logistics for the domes- tic and trans-shipment markets. GALC now affords the company the opportunity to manage the motor vehicle inventory of leading auto retailers in Jamaica as well as the business generated through the au- toliners. In 2019, KingstonWharves handled over 120,000 motor vehi- cles, a significant portion of which was for trans-shipment. “The motor vehicle business has been one of the mainstays of the company,” the former CEO pointed out. AWARD-WINNING PORT KingstonWharves is now an inter- nationally acclaimed port company, being the recipient of numerous awards over the years. KWL has been named the Multipurpose Terminal of the Year by the Caribbean Shipping Association (CSA) an im- pressive five times in the modern era – 2006, 2007, 2009, 2012 and 2015. KWL also received the Best Port Award fromCSA in 1993, which it shared with the Port Authority of Jamaica. The company has re- ceived numerous other accolades, such as the CSA’s Most Efficient Port Award in 2008 and 2010, and the Best in Chamber Award for Large Companies in 2017 from the Jamaica Chamber of Commerce. KingstonWharves’development was not by happenstance, but due to well-timed and deliberate strate- gic moves and partnerships solidi- fied at different stages of its history. “Partnerships have been pivotal in everything we have undertaken and accomplished in the last seven and a half decades. The financing of our expansion plans, explora- tion of newmarkets and profitable ventures we have undertaken have all been achieved through partner- ships with individuals and compa- nies in various areas of the shipping industry, as well as in banking and other sectors beyond the maritime industry,”Mr Stephenson observed. It is a view that Charles Johnston also emphasised: “The strength of the company is that we have a group of people in the shipping industry who are involved in the company; not just one person. That means that each brings vast expe- rience in shipping, and his or her business and connections to the partnership; this has always been the strength of Kingston Wharves. At the beginning, it was a group of people who were in the shipping industry that got together, and the same principle of partnership applies today,” declared Charles Johnston. KINGSTON WHARVES 75TH ANNIVERSARY HISTORY CONTINUED FROM 22 Modern Day View of Kingston Wharves multi-purpose operations.