JRC Chairman Joseph A. Matalon recommends divestment of the Jamaica Railway Corporation

The GOJ (Government of Jamaica), specifically the Ministry of Transport and Works, has apparently had a change of direction as it relates to the Future of the JRC (Jamaica Railway Corporation). This as they plan to split up the company and sell if off in parts, based on an assessment by JRC Chairman, Joseph A. Matalon.

He made his recommendation on Wednesday December 4^th 2013 before the PAAC (Parliament's Public Administration and Appropriations Committee) in “DERAILED? - Gov’t changes tracks on railway”, published Friday, December 06, 2013 BY BALFORD HENRY Senior Observer reporter, The Jamaica Observer.

Apparently the JRC, under the stewardship of JRC Chairman, Joseph A. Matalon, has finally turned the proverbial corner, finally posting an operating profit after two (2) years of draining the Public Coffers as noted in “Railway Corp Finally Sees Profit”, Published Friday December 6, 2013, The Jamaica Gleaner.

The Balance sheet, which was presented before the PAAC (Parliament's Public Administration and Appropriations Committee) on Wednesday December 4^th 2013, when broken down reads as follows:

1.   JA$68 million in Losses in financial year 2011-2012

2.   JA$3.5 million in operational profit in financial year 2012-2013

3.   JA$13.9 million Projected operational Profit for 2013-2014

4.   JA$11.6 million Profit achieved up to October of 2013

5.   JA$600 million owed to the GOJ in statutory payments i.e. Taxes

6.   80 members of staff, cut from a previous 140, many of who had no assigned Tasks

At this point I’m thoroughly confused. Didn’t the Minister of Transport and Works, Dr. Omar Davies change his mind earlier in 2013 on the Railways, stating that he’d revive the Passenger Train Service as stated in my blog article entitled “GOJ to revives the JRC Passenger Train Service - Minister Omar Davies' Cirque Du Soleil Worlds Away advises Railways and Islandwide JUTC Bus Service Not Fade Away”?

In fact in my eyes, the death of the four (4) Holmwood Technical High School in a Bus in Chudleigh, Manchester, was the perfect catalyst for the revival of the Railways in Central Jamaica as argued in my blog article entitled “Four Holmwood Technical High School students killed in Crash in Chudleigh - Opportunity to Implement Islandwide JUTC Bus System, JRC Passenger Trains along with Automated Traffic Ticketing System”.

The school opted to contract the service of a Coaster Bus company and the Ministry of Transport and Works didn’t even raise the idea of even the JUTC (Jamaica Urban Transit Company) transporting the students as argued in my blog article entitled “Holmwood Technical High starts Community Bus Service to transport students - Multimodal Transport System with JUTC and JRC Still the best long-term option”, making many wonder why, as an islandwide expansion is an obvious route to making the cash-strapped JUTC profitable.

It’ll be therefore interesting to see what the eventual fate of the JRC will be, as Passenger Train Services need to be a part of the Transportation Scenario in the Future as noted in my blog article entitled “JUTC and the Downtown Municipal Transport Centre - Planes, Trains & Automobiles”. Most likely divested in parts, as it’s easier to sell its more profitable sections such as the Appleton Estate Rum tours and give ownership of the rest to Tourism interests and the Bauxite Industry.

The JRC will soon be no more, yet another GOJ Entity divested, not as a whole, but in parts! If this plan comes to fruition before investors can be identified to buy the entity as a Whole, then the iconic Railway Service will only exist as a memory in the minds of the few, including myself, who rode on it in the early days.

Farewell Jamaica Railway Corporation! Hello FDI (Foreign Direct Investors) investing in the JRC!