Private Equity Asset Management

Case Studies

Jassim Transport and Stevedoring Company

Snapshot: 

 

Country

Kuwait

Industry

Logistics & Stevedoring

Year Established

1979

Investment Date

2008

Commitment

USD 131.3 mn

 
Ownership Structure: 

The Company

  • Jassim Transport & Stevedoring Company (“JTC”) is one of the largest integrated logistics companies in the GCC with product offerings include equipment rental, ports stevedoring, contract logistics and power rental.

  • One of the most eminent, integrated logistics companies in the GCC.

  • More than 35 years of operations as an inland transportation company. Over the years, it has grown to include service offerings such as Ports Stevedoring, Contract Logistics, Equipment Rental and Power Rental businesses.

  • Active presence in Kuwait, Qatar and Saudi Arabia.

 

The Challenges

  • In the past the company’s major revenue contributor was US Army DESC contract which ended in July 2012. As per the strategy implemented in 2012, the JTC management has taken several new initiatives to enhance the revenue base. Complementing this strategy, a cost reduction plan was also implemented and we have seen significant improvement over a period of time on the cost and profitability front.

  • The loss of a large portion of our operational land on account of the Sheikh Jaber Causeway project had a major impact on Ports Management division. The management’s active efforts on appropriate utilization of available operational land and the introduction of new value added services helped partly mitigate the impact of this development.

 

Our Approach to Add Value

  • Plays an active role in the management of the Company and is actively participating with the company’s management for business expansion and also for the implementation of operational strategies.

  • Strong emphasis on business and capacity expansion of different business segments such as equipment leasing and power rental.

  • All the new business initiatives, capital expenditure plans and also rationalization of existing infrastructure are being thoroughly analyzed before getting sanctioned from the Steering Committee (SC).

 

The Result

  • As part of the reorganization plan, all non-core, obsolete or underutilized assets are being sold. In 2013 and 2014, the company’s focus was on reorganization of the key divisions in terms of resource rationalization. Now the operational restructuring almost done, resulting in a leaner and more focused company.

  • To achieve operational synergy and as part of cost rationalization approach, some units and manpower resources of Contract Logistics and Port divisions are being merged.

  • The re-organization efforts have paid-off as the company has payed dividends for 2013 and 2014.

  • In 3 years (between 2012 and 2015):

Revenues grew by 1.18x

EBITDA grew by 2.09x

Net Income grew by 3.53x