Railway resumption still on the cards

The Jamaica government is working on resuming railroad service.

KINGSTON, Jamaica, Thursday July 29, 2010 – The government is closer to resuming service provided by the Jamaica Railway Corporation (JRC) after over a decade of dormancy.

Transport and Works Minister Michael Henry says the Bruce Golding administration has embarked on a new policy to identify, pursue and implement bankable sub-projects which will, over time, generate sufficient income to bring financial stability to the rail company.

Speaking in Parliament he alluded to a JRC-commissioned Economic Impact Assessment study undertaken by British United Kingdom-based engineering consultancy firm, Halcrow Group Limited, in 2009. The study concluded that rehabilitation of Jamaica's rail service is feasible. 

That conclusion, Henry said, supports previous JRC-commissioned studies, undertaken by entities such as China CAMC Engineering Company in 2006, and Pricewaterhouse Coopers in 2008.

The studies placed emphasis on cargo movement between Kingston and Montego Bay, and Spanish Town and Ewarton in St. Catherine, as well as tourism-related activities between Montego Bay and Appleton, St. Elizabeth.

He said the administration recognises the challenges of funding a total railway rehabilitation project in the current environment, hence the decision to pursue implementation of "bankable" sub-projects.

"The rationale behind the initiative is the high net book value of the railway. It is in the nation's interest to utilize this asset, by making incremental inputs of capital in these sub-projects," he said.

Henry said his ministry is increasing the capacity of the JRC to effectively manage the revitalization process, to ensure that the country benefits fully from the overall initiative. This includes generating alternative revenue sources from the railway's rich heritage, its vast intellectual base and its uninterrupted right-of-way corridor.