TransJamaican Highway Limited (TJH) has proposed US$20.3 million to secure the concession for Phase 1C of Highway 2000.
The toll road operator indicated that the offer made to the National Road Operating and Constructing Company Limited (NROCC) includes a component tied to potential upside-formula assessments. However, specific details of these assessments were not disclosed.
Having first right of refusal for the operation and maintenance of Phase 1C, which spans from May Pen to Williamsfield, TransJamaican exercised this option. The Jamaican government approved the financial proposal, subject to contract and additional conditions. This approval sets the stage for TransJamaican and NROCC to finalize a concession contract, extending until November 20, 2036.
This new concession will expand TransJamaican’s portfolio to include four toll roads along the Highway 2000 corridor. The company currently manages Phase 1A (Caymanas to Sandy Bay), Phase 1B (Sandy Bay to May Pen), and the Portmore leg, covering St. Catherine, Clarendon, and now Manchester.
The announcement comes during a period of robust business for TransJamaican Highway, which held its annual general meeting on Tuesday. The company attributes its record profit levels to increased toll road usage and improved toll fee collection efficiency.
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Following the acquisition of toll road operator Jamaica Infrastructure Operators in December 2022, operating expenses saw a significant decline. TJH Managing Director Ivan Anderson highlighted the company’s US$23.97 million profit for 2023 as the highest in its 23-year history. Revenue amounted to US$75.2 million, with a record 27.1 million vehicles using the toll roads, marking a 5% increase over 2022.
For the first quarter ending March 2024, TransJamaican reported a 9.9% rise in toll collections and a 39% increase in net profit compared to the same period in 2023. Toll collections reached US$19.78 million, up from US$17.99 million, while profit grew to US$6.9 million from US$4.98 million.
Anderson noted that the cost per transaction has decreased, thanks to a benchmarking study conducted with consultancy firm KPMG. The total collection cost was US 37 cents per transaction, 16% higher than the best companies globally but below the international average.
Regarding Phase 1C, Anderson mentioned that the new toll point is expected to open in August.
