The Government of Jamaica is not ruling out the option of breaking-up the the country's railway system into various packages, in order to facilitate its return to operational viability.
Transport Minister Dr. Omar Davies, making his contribution to the Sectoral Debate in Parliament on Tuesday, reiterated that a proposal by Herzog Contracting Company to acquire the Jamaica Railway Corporation (JRC) as a single entity is currently being reviewed.
He said, however, that, "in the event that the proposal does not satisfy the GOJ's requirement for the entire railway, a Break-up Srategy that delineates the packaging of sections of the railway will be pursued."
He reminded the House that Cabinet, in December 2013, had approved the removal of the JRC from the Public Private Partnership (PPP) opportunities in order to pursue discussions with two interested parties. Eventually, the decision was made to go forward with formal discussions with Herzog.
Dr. Davies said Herzog was given an additional six months to complete its due diligence and provide additional information on the company's financial and business models. He said the Enterprise Team reviewing Herzog's proposal, after which its recommendation will be passed on to Cabinet for a decision to be made.
The option of breaking-up the JRC into smaller operational packages would only be considered if Herzog's proposal does not find favour with the government, he explained.
The passenger service of the JRC, closed in the early 1992, was briefly restored on a very limited basis in 2011, but was again closed shortly after becuse it was deemed to be financially unsustainable.
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