Cargo Handlers, New Fortress in partnership to deliver LNG
Cargo Handlers Limited (CHL) and New Fortress Energy (NFE) have announced that both entities have commenced dealings which will see Cargo Handlers deliver product to the liquefied natural gas (LNG) provider.
Cargo Handlers, which is based in Montego Bay, St James, provides stevedoring and petroleum haulage services.
Essentially, Cargo Handlers has become a transportation provider of New Fortress Energy for the delivery of LNG, said New Fortress spokesman Jake Suski in response to Gleaner Business queries this week.
New Fortress said Cargo Handlers "has a dedicated a team of drivers that have undergone extensive training in handling LNG. They are capable of both loading and unloading, and have already safely handled LNG tankers and ISO containers. This partnership represents another significant step in the development of a new skilled workforce in Jamaica."
The arrangement commenced in September 2017, but Suski did not reveal further details on the deal nor specifics of the arrangement.
The fourth-quarter financials disclosed the "partnership" between both entities.
"Our petroleum haulage unit is poised for further growth with the partnership with NFE," stated the financials.
"Come next quarter, we should also begin to see signs of the recent infusion of additional haulage equipment positively impacting our equipment leasing revenue stream."
Mark Hart, chief executive officer of Cargo Handlers, clarified the meaning of partnership.
"I can confirm the word partnership is merely figurative in the capacity of a service provider. Please be assured I will instruct the relevant persons to have this reference corrected immediately," stated Hart in response to Gleaner Business queries.
A family business
Cargo Handlers was founded, and is tightly held, by the Hart family. Mark Hart and Chairman Antony Hart together hold 60 per cent of the company.
The company previously conducted business with New Fortress Energy in 2016. At the time, New Fortress was setting up a liquefied natural gas project at Bogue Industrial Estate in Montego Bay, St James, which resulted in increased business activity at the ports with spillover business for Cargo Handlers.
The United States-based New Fortress Energy developed the supply infrastructure to pipe gas to the Jamaica Public Service Company's (JPS) Bogue power plant, which has been upgraded to operate on LNG.
New Fortress Energy provides energy, logistical services, financing and capital investment to end users worldwide seeking to convert their operating assets from diesel or heavy fuel to natural gas.
In August 2015, it signed an agreement with the JPS for the supply of LNG to Jamaica. In October 2016, New Fortress commenced delivery of LNG to Bogue's power plant following the completed conversion of the plant to run on LNG.
Last September, Cargo Handlers shareholders approved a tenfold increase of the company's ordinary shares via a stock split.
The company made $142 million net profit on revenues of $321 million for its September year end 2017.