Making his contribution to the Sectoral Debate on Wednesday afternoon Mr. Henry said the agreement with the Chinese Government will involve the construction of 18 new railway stations and the provision of five new engines.

The agreement includes the acquisition of 68 freight coaches, training for personnel and the reopening of the Kingston to Montego Bay service.

Rail Service is also to be established between Spanish and Ewarton in St. Catherine.

Mr. Henry said the Government is hoping to ease the pressure on the island's road network as emphasis will be placed on moving goods by freight.

Mr. Henry said the refurbishing exercise is to be carried out over a three year period and is due to start before year end.

He adds that the revival of the rail service will result in the creation of thousands of jobs.

See also:

Jamaica's rail service to be revived

Caribbean News: May 31, 2008

KINGSTON, Jamaica: Jamaica's Minister of Transport and Works, Mike Henry has said that the Chinese government is prepared to provide 85 percent of the required funding to revive the railway industry, through a loan to the Jamaica Railway Corporation, which would be guaranteed by the government of Jamaica.

"The project has to have the capacity to repay the US$354 million it is estimated to cost; the Government of Jamaica will retain ownership of its assets in respect of the JRC, while all the operating costs are to be met by the operators, who will be expected to provide the remaining 15 per cent of the overall funding as equity," Henry said.

The minister was making his contribution to the 2008/09 Sectoral Debate in the House of Representatives on May 28.

Henry pointed out that the Chinese proposal is the route being taken and it is now a "done deal," with the ministry and the government looking forward to bringing back the buzz which once dotted the geographical network, which was covered by the passenger rail service.

Rural agriculture, cottage industries, heritage tourism and excursions, including school tours are projected to be among the main beneficiary activities from the reintroduction of the passenger rail service.

"This is akin to what's happening in many other parts of the world, where various countries are investing heavily in railways, because of the recognised potential of rail services to contribute to national economic development," Henry said.

Colombia, China, India, the Philippines, Mozambique, Ghana, Brazil, and Trinidad and Tobago are among the countries which are investing in rail transportation.

See also:

Railway plans back on track - State to fund $7b renovation

Jamiaca Gleaner: May 30, 2008

Athaliah Reynolds, Staff Reporter

The deserted railway station in downtown Kingston against the backdrop of high-rise buildings. The Jamaican Government has enlisted the help of the Chinese to renovate the rail system

Transport Minister Mike Henry has said the Government would be seeking to revitalise the country's railway system, with work expected to begin before year end.

Speaking during his contribution to the 2008-2009 Sectoral Debate at Gordon House on Wednesday, Henry said the move involves plans to reopen the Kingston to Montego Bay and Spanish Town to Ewarton services.

He said Government would be spending close to US$300 million (J$7 billion) on the initiative, which will be done within a three-year refurbishing schedule.

Arrangements made

According to Henry, arrangements have already been made with the Chinese government to facilitate the construction of 18 new railway stations across the country. These will accommodate new tracks of 105-pound standard to enable greater speed and load-carrying capacity.

He said the reintroduction of the passenger and freight railway service is intended to significantly impact on rising fuel costs. The Government is focused on getting much of the island's freight transportation done by rail and increasing mass transit to ease traffic gridlocks in urban centres.

The transport minister said the present wooden sleepers would be replaced with concrete over time, as concrete sleepers require less maintenance. The system will also accommodate five new engines, 45 coaches for passengers and 68 freight coaches.

To create jobs

Henry further said the initiative is expected to create thousands of jobs for Jamaicans during and after the construction of the railway lines and supporting networks.

Meanwhile, Henry reiterated that unlike other categories of service providers in the public transport sector, the state-owned Jamaica Urban Transit Company would not be granted a fare hike.

He, however, said he would be announcing a rate increase in July for the Portmore toll road.

Henry also said there has been a change in the toll policy under the concession agreement, which will now see an annual review of tariffs by the developer, instead of the twice-yearly review. Commuters, therefore, can expect a possible further increase in July 2009.

See also:

Trains will roll again in three years, minister promises

Jamaica Observer: May 30, 2008
BALFORD HENRY

Says no fare increase for JUTC at this time

TRANSPORT Minister Mike Henry says Jamaica's rail service should be back on track within three years, following a deal with the Chinese Government.

Henry, who was addressing Parliament Wednesday during his contribution in the sectoral debate, also told the House that no fare increase was being contemplated for Corporate Area commuters at this time.

On the prospects for the resumption of the local railway service, Henry said that the government was now signing off on arrangements for a resumption, within three years, after eight months of discussions with Chinese officials.

He said that the deal would include the building of 18 new railway stations and new tracks for greater speed and load-carrying capacity; special areas to be realigned to enable trains to maintain speed levels; replacement of wooden sleepers with concrete ones; provision of five new engines plus 45 passenger coaches and 68 freight coaches.

He said the railway resumption would see a reopening of the Kingston/Montego Bay service, as well as service between Spanish Town and Ewarton, St Catherine.

"The passenger and freight rail service is intended to significantly impact on the rising fuel cost, with the Government focused on getting much of the island's freight transportation done by rail," he said.

In the meantime, the minister said that despite the Jamaica Urban Transit Company's (JUTC) significant losses, unlike other categories of service providers in the public transportation sector, the state-owned bus company would not be granted any fare increase at this time.

"This is because the ministry and, by extension, the Government, is not about to grant increases to offset inefficiencies among any service provider," Henry said. "The JUTC team knows that the company has a number of issues to overcome in order to realise the level of efficiency that the entity is capable of, hence the team took the conscious decision not to seek any fare increase, until those matters are adequately addressed," he told Parliament.

"When you have millions of dollars in lost revenue daily, you have to effectively deal with that - plug those loopholes and see where you really are before you can reasonably come asking for a fare increase," he added.

Despite his stance against a bus fare increase, however, Henry painted a dismal picture of poor management and inefficiency at the JUTC over the past five years.

As an example he cited the loss of some $140 million from the purchase of unnecessary spare parts.

Henry said that when he took over the JUTC last October, there were a significant number of spare parts, costing $150 million, but the reason for their purchase was difficult to explain.

"They had apparently been bought for the wrong buses and those parts were not needed. But, interestingly, some of the parts were assigned a value of $1 each on the company's books, making over $150 million in spare parts carry a book value of only $10 million," the minister said.

He said that 212 buses had been "cannibalised" over the period and another 100 buses were out of operation, for various reasons, and are now being refurbished.

He said that he also discovered that the training school for bus drivers was owned by a former chairman of the JUTC, and the company ended up with over 2,500 outstanding accident claims valued at $450 million in terms of potential liability.