Barbara Ellington, Senior Gleaner Writer
Trevor Heaven
proprietor of Heaven's Texaco in Mandeville and JGRA president in front of his
business place, being interviewed for Monday Business in Mandeville on Monday, May 23. - RICARDO MAKYN/STAFF PHOTOGRAPHER
HE IS among the top Texaco retailers in the island and the current head of the Jamaica Gasolene Retailers Association (JGRA). But businessman Trevor Heaven's passion is engineering. He pursues this passion by offering a consultancy.
Now in his 50s, Mr. Heaven is no stranger to the world of entrepreneurship as both his parents have run successful businesses all their lives.
After his first job, he launched out on his own, cutting his teeth as a distributor for Island Dairies Limited before acquiring the Texaco retail outlet in Mandeville in 1991.
A member of both the local and United Kingdom institute of engineers, Mr. Heaven, a Justice of the Peace is an outspoken civic-minded man who has won several awards. He is an active Rotarian and serves on the boards of many regional and national organisations.
Divorced with six children, Mr. Heaven spoke with The Gleaner about his work, the journey to his success and his wish for Jamaica.
BE: Were you influenced by your parents to become a businessman?
TH: My father was my influence and to a large extent I have followed him. He was a welder with the bauxite industry and now he's a businessman in Savanna-la-Mar. My mother and most of my siblings also have their own businesses
BE: What was it like when you took over this petrol station in 1991?
TH: There were many hurdles because this place was a dump; there was garbage everywhere and taxi operators overran the premises. On top of that sales volumes were at 1,700 gallons a month but in one month we moved it up to 115,000 gallons monthly. Those days, the station closed at 6:00 p.m., we moved closing hours to 10:00 p.m. initially and today we are open 24 hours daily.
We did a lot of infrastructural work, diversified operations to include a food mart, we became a dealer for Goodyear tyres, we distribute products for Texaco and turned the business around to become the Latin America/ West Africa Division' dealer of the year in 1991 of over 2000 in the group.
BE: How many persons do you employ and how do you find them?
TH: I employ just over 30 in sales, at the mart, in the tyre shop, for auto merchandise, in accounts and administration. We operate three shifts and are open every day. I am here daily except when I am out on business for the JGRA. My staff are excellent, dependable, trustworthy and reliable; we have a great team spirit and I can rely on them in my absence.
BE: Describe your relationship with the JGRA.
TH: I have been a member for 15 years. We represent the membership, negotiate on their behalf, represent service station attendants, provide security, medical and liability insurance, legal and technical service as well as act as a resource centre for members.
BE: How do you cope with fluctuating oil prices? I have heard motorists complain that when petrol price is adjusted upward, some stations change their prices overnight, yet when the price goes down, it takes days to see the corresponding reflection, what is the rule?
TH: Whether the price goes up or down, the price should be changed at the same time every week. We get the information about the change every Wednesday so members know it by Thursday. The marketing companies don't necessarily change their prices according to what Petrojam says but whether it goes up or down, I change mine at 6:00 a.m. on Fridays. Each dealer is urged to be consistent.
BE: We continue to hear that the world will run out of its oil reserves in 100 years. Reports out of the United States are that so far this year, Sport Utility Vehicle (SUV) sales have fallen as motorists seek to find cars that are fuel efficient. When do you think we will grasp the implications as far as consumption is concerned?
TH: It's early days yet to gauge our local response as far as vehicle preference is concerned. There are still no discoveries of new oil sites so prices will continue to trend up. Petrojam is recommending a move from gas to diesel which has a more negative impact on the environment. Gas is cleaner and with the move from 90 to 87 octane, most vehicles can run on the latter. Over time, we will see more turbo charged diesel engines that are quieter but we must cut costs.
BE: Any thoughts on how we should prepare for a world without oil.
TH: There is not much we can do except turn to liquified natural gas (LNG), but we need to decrease our dependence on oil. We could consider hydro-power but that would be big step, however, we should be moving to solar energy too.
BE: What are some of your goals as JGRA president?
TH: I inherited a number of ongoing projects including a code of conduct to deal with inequities in the trade. It is now complete except for a few sections and we have submitted a request to the Fair Trading Commission (FTC), for their input.
We have completed a wage agreement with the unions.
We are now dealing with the Weights and Measures Act because measurement of the gas at off-loading has serious implications for the profit to retailers. At 98 degrees Fahrenheit, gas occupies a greater area but as it cools, it occupies less space. Petrojam bills us at the rate where it's heaviest even though by the time of delivery to us, it's lighter - but this results in a better percentage profit for them. The Weights and Measures Act is not being obeyed and the implementing agency is the Bureau of Standards but they cannot tell Petrojam to pay the correct price, they can only ensure the correct measurement .
The next step is to go to court because we have estimated that retailers are losing $1.2 billion annually. The traditional marketing companies have moved their margins some 6-18 per cent and we have to settle for eight per cent. I see that as exploitation of a Third World country.
Our other major project is Road Safety Month in June and this year the focus is on the perpetrators of the carnage on the roads. This is in the 18 -35 age group who drive fast cars and starting next month, we will do a major advertising campaign; a church service; an official launch at Petcom, Ironshore ;a work day at Innswood, St. Catherine and it will be all under the theme: 'With awesome power comes greater responsibility'.
BE: Would you serve a second term if asked ?
TH: It's satisfying to see the level of support from executive and membership at large. It's been a good year - the kind of prominence and respectability we are achieving in the island now. I'd be happy to serve a second term if the membership asks me to.
BE: I have noticed the large number of petrol stations that have mushroomed over the last five years or so, how many more do you think this small island can accommodate before they start to cannibalise?
TH: What we have is a proliferation of service stations on every corner, and you are right, but based on what I'm hearing, local marketers Petcom are intent on broadening their portfolio because along with other local marketers, they will guarantee the longevity and survival of Petrojam. I have always maintained that the traditional marketing companies would be happy with the demise of Petrojam because they would like to import and have their way with us. If that happens, local marketers would die, so Petrojam is a significant part of the gasolene trade at this point.
With deregulation there is no way to stop the growth of the retail business so you will find that the finite market that now exists is being split more and more. There will come a time when you will see significant fallout and this will begin with smaller volume stations because as prices and overheads increase and volumes continue to fall, their income will be less.
BE: There are nine marketing companies now four international and five local. How do the consumer?
TH: The multi-nationals repatriate their profits so it's good that local marketers are in the mix. Jamaica is the only Caribbean country with this level of local penetration. That is why the multi-nationals seek to maintain their profit by increasing their margins and refusing to pass on these costs to us. They displace some Jamaican retailers from key locations - take over some stations and run them at the retail end and rake in huge profits at the demise of their very own dealer-owned retail operations. It is exploitation.
BE: Don't you mind speaking out against this?
TH: No, I am the most outspoken president in a long time but we have succeeded in bringing the cause of the JGRA to the forefront and to speak out about the inequities we are facing for several years is good. They are grossly unfair.
BE: So, after the JGRA, what's next for you?
TH: I am an engineer and I still maintain construction activity in the bauxite industry where I got some of my first experience. I do instrumentation, control systems and electrical which speaks to distribution systems. I also do some consultation with industries so I still maintain my vocation. That is my passion. Anything I do next could take me in these directions.
BE: How many hours per week do you devote to the JGRA?
TH: It takes about two days out of my week but I'm here at work most days. I am probably away only once a week. I don't take holidays but when I go away on business I take some time off. My days start as early as 6:30 a.m. and it's not unusual for me to be here up to 11:00 p.m. at nights.
BE: What are your views on the current crime wave that is battling us and, that in spite of all the initiatives, nothing seems to work. The powers that be seem devoid of answers. You are a businessman; you have chosen to invest here, how do you grapple with security costs, do you have any ideas for solutions?
TH: I have always maintained that one needs to live a good life, be kind, compassionate, understand the trauma of poverty and do what can be done to help others. I have gone out of my way to help others. What is disconcerting is what happened to Maurice Azan in May Pen recently. He was a well respected citizen who gave so much and there many others like him who are doing the same. It is disappointing and it hurts when a man of his calibre can be cut down in that fashion. It gets to the head space and you wonder what's the point.
In terms of how I manage, I have to have security here, it's a way of saying we are not alone. When you look at what is facing the country as a whole, or pass many inner-city communities, you see squalor and poverty; you see young idle men on the sides of the road, seemingly lost. Yet we ask them for understanding, information; we ask them to put away drugs, dons, shooting and killing, but how do I reach that individual who knows no other way?
They are perhaps not even watching. the news to see the effects of their crimes. They only know struggle all their lives, so I believe the solution is enablement, starting with the babies because I think we have lost those who are now teens.
BE: Let's pause here for a minute, they have killed Mr. Azan and Mr. Lloyd Phang and that's bad when you consider what they meant to the community, but what about the over 600 adults, children and cops murdered to date? Is the death of prominent businessmen what it takes to get business people angry enough to take a stand? Why not target the efforts at the root of the problem in the communities you speak of and back that up with solutions that make people less susceptible to the attraction of crime? After the march, what next?
TH: Three policemen were killed in a short time span and they will kill more but I have gone into communities and spoken to the youth. Handouts are not the answer -enablement is the answer. When politicians say we give you a highway, cars and phones, and you say nothing is going on for you, I say that when a man is not working and he has a wife and children and he cannot even provide a meal, he's emasculated. Don't tell him about road and cars; he has an urgent responsibility.
But having identified the need for enablement, many of the people who have the need are not ready to embrace the opportunities for empowerment when they are presented. You start to put things in motion and they fail to live up to there end of the bargain. That has been my experience on many occasions.
We have a serious challenge with the present set of young people. This stems from the community dons who come in and present young men with ways to beat the system and make quick money. These are short-sighted methods that don't work. There is no short cut to hard work and success. It is a challenge and I don't know where the solutions is. I believe though that leaders in communities should go out in an organised and sustained way and sensitise these people.
BE: What do you think about the level of corruption in the society?
TH: It is so broad-based. It is ridiculous from government sectors right down. In most offices if you don't know someone the service takes forever. At some sections of the police force it's rampant. Extortion is a major challenge. It is felt that if you want to survive in business, you have to succumb to the threat.
Unfortunately when you speak out, you don't get the support to stamp it out. It's a major problem; when you invest your life in a business and see it threatened, the easiest way out is to pay up. It's not fair to call it cowardice but reporting it to the police does not necessarily help so a man has to think about his family.
The strength of the gangs and dons is enormous. When a don can command that stolen property be returned and the police cannot, it means the Government has lost control.
BE: What is your wish for Jamaica?
TH: I would like to see a Jamaica that provides the kind of resources and opportunities to all people; a Jamaica that at least starts the process of poverty alleviation and elimination. I want to see a Jamaica that offers a high level of employment to all people. I want to see a Jamaica that is safe, rid of corruption at all levels. I want to see a Jamaica where one can leave home and leave the doors open, go away and return.
