Chris Bicknell
THE FIRST shipment of 5,000 tons of cement from Vulcan Materials - the largest producer of construction aggregates in the United States - arrived at the Rio Bueno port in Trelawny on Monday under a 10-year deal with Jamaican company, Tank-Weld Metals.
At the same time, Tank-Weld has announced the arrival on Saturday of the Red Spirit, a vessel leased by the company to maximise the use of the port.
Under the agreement with Vulcan Materials, a monthly shipment of cement will arrive in Jamaica through Tank-Weld's $3.6-billion 30-acre Trelawny facility,which is licensed to import steel, cement, lumber, as well as aggregate, limestone and liquefied petroleum gas.
"This cement is of a very high quality, and will guarantee integrity and longevity in infrastructure projects," Chief Executive Officer Chris Bicknell told Wednesday Business,while watching proceedings at the Trelawny facility on a television monitor in his Seaward Drive, St Andrew, office.
Bicknell expects the Portland Slag cement to do well, claiming that its superior quality ensures that it will not require additional buffer to ensure desired concrete strength.
Tank-Weld's entry into the importation and sale of lumber was timely, as the economic downturn - illustrated by the more than 60 per cent decline in the price of steel - affected the company's core operation and resulted in a 30 per cent reduction in overall sales.
The first cargo arrived in September 2008 from the mills of Mobil, Alabama, which, along with suppliers from Brazil and Honduras, have been Tank-Weld's chief providers of timber.
According to Bicknell, his company now commands 30 per cent of the local market share, selling approximately four million (1' x 1' x 1" lumber) board feet per month at $60 to $70 a foot.
"We have had a hard time since October last year, and we are just seeing ourselves above the waters, but through this experience, we have become far more efficient."
Bicknell told Wednesday Busi-ness. "We have gone to every extreme to ensure that we cushion ourselves for the bad times, and we are just coming out of the woods now," he added.
Bicknell disclosed that in a move to maximise the use of the port, Tank-Weld has leased a cargo ship, called the Red Spirit, for six months at a cost of US$1 million. The vessel is to arrive on Saturday.
"Having your own vessel allows you to control your own shipping schedule, that if you need supply at a particular time, you can make your plans and send it wherever, whenever." he explained. "It also allows you to be far more efficient and (enable) you to pass on the savings to the consumers and the construction industry."
Export market
Tank-Weld Metals' first shipment of steel at Port Rio Bueno in Trelawny last year. - file
This has allowed Tank-Weld to look towards the export market; and according to the CEO, talks with countries such as Grand Cayman, Haiti, Dominica and Belize are far advanced, with export to those countries scheduled to begin by the end of 2009.
A number of countries have expressed interest in purchasing limestone, and currently an area of the port facility is being prepared for that purpose. Bicknell also revealed that his company has an interest in ethanol production, but will be taking a wait-and-see approach for the time being.
mark.titus@gleanerjm.com