Rerum Trading partners with SM Jaleel to expand beverage portfolio
Anew study, which examined the economics of road and flood control improvements along Marcus Garvey Drive in Kingston, has concluded that it will require a capital expenditure (CAPEX) of US$56 million or approximately $8 billion to fix the problem once and for all.
The study, undertaken by engineer Dr Chris Burgess, managing director, CEAC Solutions Company Limited, was released at the recent Jamaica Institution of Engineers conference commemorating Engineer Week 2021. The study highlighted that because of unstable hydraulic conditions and under-sized channels and crossings along the busy Marcus Garvey thoroughfare, the improvements require drains and culverts four to 10 times larger than currently exist.
The busy thoroughfare has been plagued with traffic congestion and flooding problems over the years affecting commerce, traffic and transshipment given its location close to Jamaica’s biggest seaport and access to the largest community in the English-speaking Caribbean of Portmore in St Catherine. The report cited the average annualised losses of US$32 million in 2015 before road upgrade, of which traffic-related losses were 45 per cent of the total losses plus US$21.5 million in 2020 to commerce, commuters and communities, due mostly to flood losses.
Based on the flooding and traffic problems along the thoroughfare, ‘’the needs of commuters, commerce and communities remain to be fully met and flood control works are inevitably required in order to realise the societal needs of over 80 businesses in Newport West, 10,000 residents, climate resilience and gains from potential land development in Tinson Pen,” the research found.
OBJECTIVES OF THE STUDY
The goal of the study was to provide a sense of flood control investments and economic efficiencies, traffic, built environment flood plain characteristics as well as assessing the annualised damage and losses. In addition, the study looked at net present value (NPV) of infrastructure works already done, economic internal rate of return (IRR) and benefit cost ratio (BCR).
In his research Dr Burgess concluded that, “implementation of both the road and flood control works (2017) would
LOCAL distribution and trade financing company Rerum Trading Limited has inked a new deal with Trinidad & Tobago-based company SM Jaleel & Co Ltd under which the company expects to increase market share in beverages and upsize company revenues by 30 per cent.
Rerum Trading Ltd, a distribution company based in Kingston, was incorporated in October 2019. SM Jaleel is the manufacturer of brands to the Jamaican market which include Busta, Turbo, Chubby, Fruta and Kool Kidz . SM Jaleel, established in 1924, is cited as one of the oldest and largest manufacturers of non-alcoholic drinks in the English-speaking Caribbean.
Rerum is exclusively distributing the Cool Runnings flavoured water, Cole Cold soft drinks and Caribbean Cool Juice drinks brands from the SM Jaleel portfolio.
Chief executive officer (CEO) of Rerum, Omar Newell said these brands were previously distributed in Jamaica have had the greatest benefits of the alternatives. In an environment of scarce financial resources:
1) Traffic improvement works in 2017 was the least capital cost alternative (low hanging fruit), however, it has greater losses (USD21.5 million) than if both road and flood control works had been implemented (losses - US$10 million).
2) Implementing both road and culverts in 2017 (followed by flood control works) would have been US$3.9 million cheaper by avoiding the foreseeable replacement cost of culverts plus traffic losses.
3) Economic analysis, climate change trends and the potential for development of Tinson Pen and MCA support undertaking the completion of the flood control works. There are net benefits of US$200 million to be realized. A 50-year RP future climate criterion is highly recommended for improved resilience.”
ABANDONING TINSON PEN AS AN AERODROME
The study is recommending the abandonment of Tinson Pen as an aerodrome. This is based on the premise that it has been a loss-making enterprise and that it would be more profitable to redeploy the location to light-industrial use. The study highlighted that by other companies, which previously saw success mainly in rural parishes.
He outlined, “Rerum currently has a focused and flexible product line which allows us to give SM Jaleel the attention necessary to return to its glory days in Jamaica, and better! Cole Cold will be sold by our sales team islandwide and will benefit from the efficient logistics system that Rerum Trading is known for.
“We can deliver to any point in Jamaica within 48 hours of receiving an order,” Newell added.
According to SM Jaleel, Cole Cold is the leading flavoured carbonated soft drink beverage in Trinidad. The brand has been sustained by the market since the early 1980s.
Pear D, one of the Cole Cold flavours, is viewed as a premium beverage and today continues to be a preferred choice. “We see Cole Cold as the carbonated beverage of choice for fun loving and adventurous young people,” Newell added. there is currently a shortage of Flexspace and warehouses, thus making this redeployment very viable, emphasising that such a scenario is not possible with the current flooding issues there.
PERB ENDORSED THE SUCCESSFUL CONFERENCE
The Professional Engineers Registration Board (PERB) was among the many sponsors, who endorsed the staging of the JIE Conference. Chairman of PERB, Omar Sweeney, who is also a professional engineer, fully endorsed the event and applauded the innovative engineering developments presented at the conference.
“As the chief regulatory body for monitoring the practices executed by engineers, the Professional Engineers Registration Board is pleased to endorse this year’s JIE
Newell says the company’s first shipment of flavoured water and sodas arrived recently and is now being distributed islandwide as part of a major thrust to increase Rerum’s revenue by 30 per cent.
Rerum entered the beverage space in January of 2021 with the introduction of Ahhh Spring Water. Newell says the response to Ahhh has been positive conference, as it sought to showcase some of the many high quality major projects to be developed in Jamaica. The members of PERB comprise a cadre of highly skilled professional engineers, who are capable of designing and constructing engineering projects which are applicable to international standards,” Sweeney explained
He added that, “Some of these standards include the adherence to modern building codes, which are required for public safety; the adaptation to climate resilience, aerial survey techniques; and an improved drainage system. Additionally, I take this opportunity to applaud our team of professional engineers, architects, project managers and quantity surveyors for their significant contributions in charting the course for First-world engineering developments in the Jamaican landscape.”
with many outlets stocking the product islandwide.
“Since launching, Rerum has extended the product from the initial single size to three sizes. He outlined that the organisation has decided to pursue additional opportunities to grow the beverage division from 20 per cent of Rerum’s revenues to 50 per cent by the end of 2021.’’
Amidst the pandemic, Newell is upbeat about the prospects for Rerum. “We have solid relationships in Guyana and Suriname, and we sell to several leading wholesalers and retailers across Jamaica. Over the last few months, we have used this platform to introduce several items including our quality Valutree line of condiments,” he said.
Valutree was launched in March 2021 in partnership with local manufacturer, Spur Tree Spices. The line includes ketchup, lime juice, vinegar, and hot pepper sauce in various sizes.
Newell notes, “Our position in the rice trade has allowed us to establish and strengthen relationships with our customers. This will act as a solid foundation for the company to succeed in the beverage market.
The CEO stated, “We are creating a lean but appropriate team to focus on the SM Jaleel portfolio and are prepared to recruit and head hunt where necessary to find the appropriate staff to complement our team to support growth of the SM Jaleel brands.”