Page 7 - KFTL Report

KFTL DUE DILIGENCE – Kingston, Jamaica
3 Executive Summary
3.1 General
A number of serious technical issues evident today, mostly inherited form the previous owner/ operator, were either not discovered and/ or fully taken into consideration at the time of taking over of the facility.
Had a comprehensive due diligence investigation, been done at the time (ideally) or immediately after takeover of the concession, a lot of pain would be avoided today, or at least, Management would be aware of the shortcomings, thus managing expectations of the Group regarding the performance of the terminal generally.
A number of key issues impacting KFTL today – are summarised below and dealt with in more detail in this report.
3.2 Data & Information
One of the major impediments in allowing the Terminal Management to make informed decisions today, is the limited, and in most cases, absolute lack of reliable data and information, in particular with historical information on throughput, volumes handled by each type of equipment, and equipment performance.
There are several reasons for this – some more obvious than others. The lack of clarity around KFTL processes and procedures is evident – and the lack of integration of those between departments is missing altogether.
CHAMPS (KFTL’s Maintenance, Inventory & Procurement system) is not being used to full extent of its features – and has been further undermined due the manual procurement processes introduced by KFTL after takeover from KCTL.
Labour is not managed in CHAMPS and no maintenance/ repair task times are defined at all, meaning that there is no clarity or data related to the time it can and/ or will take to perform the various maintenance tasks at KFTL.
This very limited and by enlarge complete lack of reliable data and information, has placed Trent- Global in a position, whereby a number of major assumptions have been made, and defined, based on our global experience and knowledge of various container terminal operations worldwide.
A lot of the information gathered during the week on site is primarily hearsay, and whilst it was also verified and discussed with several sources in an attempt to ‘fact-check’, it still remains verbal information.
3.3 State of the Quay Cranes
The condition of the cranes structure in general term, appears satisfactory, and whilst the crane structures have not been inspected in a systematic way, the structures appear satisfactory externally, from a first look.
The crane structural inspection issue is dealt with under ‘Condition of Cranes’.
However, many major components and functional systems making up the bulk of the operating cranes, are in poor condition requiring a robust and resolute program to implement the necessary corrective work.
TRENT ASSOCIATES 7