As Jamaican commuters zoomed through the Portmore-May Pen segments of Highway 2000 last year, they contributed to the impressive revenue of US$82.8 million ($13 billion) amassed by toll road operator TransJamaican Highway Limited. This marked a significant 10% increase from the previous year, setting a new record for the company since its listing on the Jamaica Stock Exchange five years ago.
- Record Revenue: The toll collections surged due to higher levels of traffic compared to the previous year, coupled with adjustments in the toll tariff, which undergo annual reviews, according to TransJamaican Highway in its recently released fourth-quarter financial report.
- Profit Growth: Preliminary results indicated that the publicly listed company earned US$31.3 million for the year ending in December, a notable one-third increase from the previous year. The fourth quarter saw profit soaring by 43% to US$9.3 million, up from US$6.5 million in the same period a year earlier.
- Lower Operating Expenses: The improved earnings were also attributed to reduced operating expenses, which dropped to US$21 million from US$22.4 million in the previous year. These savings were mainly due to a decrease in intangible asset costs and lowered repair and maintenance expenses.
The year also saw TransJamaican Highway reaping gains from its financial market operations and investments, totaling US$3.9 million, up from US$2.4 million in the prior year. Despite slight increases in total assets to US$293.9 million, total liabilities experienced a slight decrease to US$228 million, contributing to a significant one-third boost in capital to US$65.3 million from US$49 million in the previous year.
"This increase in capital was driven by several factors, including principal repayment on secured notes, reduced provision for pavement repairs due to ongoing maintenance work, and dividends declared for the year," the company informed its stockholders.
Established in 2020 following its privatisation by the Jamaican government and subsequent listing on the stock market, TransJamaican Highway boasts the state-owned National Road Operating & Constructing Company Limited as its largest shareholder, holding a 20% stake. This French-owned highway toll company holds a 35-year concession for the Highway 2000 East-West, a 50-kilometre toll road connecting Kingston with Spanish Town and May Pen, and Portmore through the T1 and T2 corridors.
In conclusion, the unparalleled revenue growth, enhanced profitability, and strategic financial management outlined by TransJamaican Highway’s recent performance signify a promising trajectory for the company as it continues to serve Jamaica’s transportation needs with excellence.
