- Public sector entities being lobbied to do business with JUTC II
- Feedback has been received from some of the Ministries to which correspondence was sent
- JUTC II has recorded gross profits ranging between $12 million and $30 million
The Ministry of Transport, Works and Housing is reporting positive feedback from other public sector entities being lobbied to either commence or increase their utilization of the services provided by the Jamaica Ultimate Tyre Company (JUTC II).
This was disclosed by Minister with responsibility for Housing, Hon. Dr. Morais Guy, during a tour of the entity, based on Maxfield Avenue, in Kingston, on August 30.
The lobby forms part of efforts which Transport, Works and Housing Minister, Dr. the Hon. Omar Davies, said are aimed at maximizing its operations, primarily in tyre repairs, retreading and sales; and computerized wheel alignment and balancing.
JUTC II is a subsidiary of the Jamaica Urban Transit Company (JUTC), both agencies of the Ministry. Its clients include the JUTC, its largest, and PETCOM.
Dr. Guy, who has been delegated responsibility for piloting the lobby and monitoring the overall process, said feedback has been received from some of the Ministries to which correspondence was sent.
“We have received responses from some of the Permanent Secretaries, indicating that they are now aware of what exists here (at JUTC II); and that they are going to be telling their agencies and entities to start dealing with Jamaica Ultimate Tyre,” he said.
The Minister said his visit is aimed at acquainting himself with JUTC II’s operations, which will assist in heightening awareness of the entity’s services within the private and public sectors.
“It is also to buttress and re-enforce the commitment of our Ministry to ensure that other government agencies which are in the business of transportation, whether it’s commercial or passenger, utilize the services offered here by the Jamaica Ultimate Tyre Company. And, to indicate to them that they can get good retreaded tyres at significantly reduced costs,” he said.
Expressing satisfaction with the entity’s operations, Dr. Guy said the public can “rest assured” that its retreaded tyres are safe for the roads and are consistent with international standards.
He also said the Ministry wants to ensure that JUTC II, which has recorded gross profits ranging between $12 million and $30 million, “continues to be a profitable entity and continues to increase its profitability, so that it can be contributing to the operations of other areas of the Government and the Ministry.”
JUTC II’s General manager, Kenry Jackson, also gave the assurance that retreaded tyres are safe, “if not safer than…new tyres,” in addition to being cost effective. He advised that the general rejection rate for the tyres averages 1.9 per cent, which compares to the international standard of three percent.
“In general terms, the idea (of retreading) is to save the customer some 30 to 60 per cent of the cost of a new tyre. If you take a truck tyre…the cheapest one you can find out there now might be about $32,000 to $33,000. We retread the casing of a tyre that the customer takes in for just under $18,000,” he noted.