Cargo Handlers eyes higher demand flow for stevedoring and cement in 2025
CHL, a St. James based company provides stevedoring, equipment leasing and management services. Stevedoring contributes about 84 per cent of the company’s revenue. The company has been operating in Montego Bay since 1981. Business overall is driven by the tourism industry.
The company is also a cement importer. In 2020 CHL spent $100 million to acquire 30 per cent stake in Buying House Cement Limited, a cement importer that supplies western Jamaica. Domicem, a company based in Dominican Republic, owns 70 per cent of Buying House.
Company Chairman Mark Hart, reviewing the year ended September 30, 2024, in the annual report published on January 28, 2025, stated that that the most concerning aspect of the raised level travel warning was a significant reduction in inquiries for travel to Jamaica and a drop in forward bookings.
Consequently, by the summer, CHL saw greatly reduced visitor numbers at airports and hotels industry- wide. The industry was further impacted by the passage of Hurricane Beryl in early July and also, the pending US election scheduled for November also impacted the company and the wider tourism industry.
Management is now looking for full recovery in 2025, hoping also that there will be no fallout from Jamaican government elections this year.
New projects
Expected positive impacts on demand flow include the opening of the Princess resort in Green Island near Negril, private sector project such as the Hard Rock Hotel and the Pinnacle developments, among others.
Hart stated, “The infrastructure required to handle future demand that will flow from these new developments must be a focus for our policymakers. The timely implementation of current and planned projects is more than ever essential to maximize the promise of opportunity.”
A new airport was announced to be constructed in Negril and planning is underway to improve the road networks along the North Coast Highway, including bypasses for Hopewell and Lucea.
Other infrastructure at an advanced stage are the two upgraded hospitals including the new children’s hospital at the site of the renovations taking place at Cornwall Regional.
All are expected to benefit community and industry. Hart concluded, “Cargo Handlers relies on economic expansion for its growth; whether for our subsidiary Buying House cement, our fuel logistics operations or our traditional port activities.”
Operations
For the year that ended September 2024 Cargo Handlers generated revenues totaling $473.47 million, which was 8 per cent or $41 million below that realised for the prior year.
Management said that the various cargo types handled throughout the year provided mixed results. The suspension of the use of ISO containers for LNG deliveries negatively affected the port’s throughput quantities.
Additionally, there were fewer than anticipated activities involving home-porting cruise vessels relative to 2023. However, they note, “Steady inflows of cement however, and a notable increase in the tonnage of project cargo handled during the year helped to improve the outcome.”
Detracting from cement sales was investment income from CHL's affiliate’s cement distribution services which reflected a 12 per cent decline to $92.3 million when compared to the prior year.
A 39 per cent increase in the rates for vessel hire that took effect in 2024, as well as the passage of Hurricane Beryl, were the major factors that affected company’s year end result.
Net profit was $273.68 million - 15 per cent or $48.95 million below the $322.64 million realised for the prior year.
CHL declared earnings per share (EPS) of $0.73 for FY2023/24, paying out dividends totaling $103.03 million.
Hart stated, “The infrastructure required to handle future demand that will flow from these new developments must be a focus for our policymakers. The timely implementation of current and planned projects is more than ever essential to maximize the promise of opportunity.”
A new airport was announced to be constructed in Negril and planning is underway to improve the road networks along the North Coast Highway, including bypasses for Hopewell and Lucea.
Other infrastructure at an advanced stage are the two upgraded hospitals including the new children’s hospital at the site of the renovations taking place at Cornwall Regional.
All are expected to benefit community and industry. Hart concluded, “Cargo Handlers relies on economic expansion for its growth; whether for our subsidiary Buying House cement, our fuel logistics operations or our traditional port activities.”
Operations
For the year that ended September 2024 Cargo Handlers generated revenues totaling $473.47 million, which was 8 per cent or $41 million below that realised for the prior year.
Management said that the various cargo types handled throughout the year provided mixed results. The suspension of the use of ISO containers for LNG deliveries negatively affected the port’s throughput quantities.
Additionally, there were fewer than anticipated activities involving home-porting cruise vessels relative to 2023. However, they note, “Steady inflows of cement however, and a notable increase in the tonnage of project cargo handled during the year helped to improve the outcome.”
Detracting from cement sales was investment income from CHL's affiliate’s cement distribution services which reflected a 12 per cent decline to $92.3 million when compared to the prior year.
A 39 per cent increase in the rates for vessel hire that took effect in 2024, as well as the passage of Hurricane Beryl, were the major factors that affected company’s year end result.
Net profit was $273.68 million - 15 per cent or $48.95 million below the $322.64 million realised for the prior year.
CHL declared earnings per share (EPS) of $0.73 for FY2023/24, paying out dividends totaling $103.03 million.
Photo credit: stevedoring.com
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