CEO (TEXACO)

1.    Jamaica is a major player in the Caribbean, being the second biggest economy in CARICOM as well as the second largest population. But it also has serious competition on all fronts – tourism, financial, and otherwise. What are the main comparative advantages Jamaica has, and what are the areas where it can still get better?

First of all we think that Jamaica is in a strategic position, geographically speaking. There are around 3150 ships that pass though Jamaica every year. That’s 9-10 ships a day and we are also in the business of supplying fuel to the ships. Therefore, it’s a huge opportunity for bunkering because once the ships leave the channel, Panama channel, the first point that they find is Jamaica and then in the way to the US gulf coast. That strategic position should enable Jamaica to expand their logistic hub and be a transhipment place for development and for us in the field businesses an opportunity to supply all the ships here offshore, in the bay side or on the port.

It is through that we have some competition but one of the things we’re working on is trying to create a model where people can fly. When you go to Europe you spend a week in London, a week Rome, a week in Paris. It’s like multi-destination. That doesn’t happen here because everybody has to go through the US to travel to the Caribbean. People don’t want to go through that hassle and they only take like one week in Dominican Republic and that’s it. We’re trying to create hubs in the Caribbean that can allow for people to move around the islands. You can spend one week in Jamaica, one week in Bahamas and one week in Cuba, for example under the same package without having to go through US and all that.  

We see opportunities all around in Jamaica. There is a desire of with this government, of bringing growth and generating employment. Actually, we see it right now with the actions the Government has taken. We see that they are serious about it and they really want to have investors come in. And the judicial system that Jamaica has is really good. It protects your investment and the law is respected and things are guaranteed likely that you won’t be exploited here.

We think it’s an opportunity and in the fuel business, one of the things that we like in Jamaica is that the people give a lot of value to the quality of the product and the brand. Our brand is very well recognized. It’s a very high-end product and we have additives that work very good. Even the people that fight the price like the taxi drivers they take out of it five times of the day.

2.    Jamaica has had an unstable growth for a number of years. Yet some sectors are working quite well such as tourism. What other sectors show promises for foreign direct investment, or may develop to be attractive for investors in the near future?

Well definitely the energy sector is promising. With certain conditions and mainly reducing taxes on fuel could be beneficial for the country. If they eliminate that we could bring cheaper fuel to the country, which represent more growth because with the same amount of money, you would get more fuel allowing you to do more things.

Agriculture could drive growth. The US will only have 2% of the land that will be renewable in the future.  They’re running out of new soil to bring the crops out of that, and so Mexico and Argentina will be the land for crops providing food to supply 280 million people. Due to its strategic position, Jamaica should enforce and create more organizations to make a sustainable agriculture offering to the US.  

Considering the situation in Europe and the Mediterranean due to terrorism, Tourism, European tend to prefer to travel on the side of the world, and to Jamaica. Jamaica is like paradise. We need to ease up visa policies and all that. As we generate growth, it will balance the equation on the other side and make it look more attractive for people.

3.    Energy is a huge challenge for Jamaica. Yet, it has a lot of potential to produce energy through wind, biomass, hydro and solar. Specifically, in the Jamaican context, what are the pros and cons of each?

Well, you first have to realize that still for around 57 to 65 years they will be a full dependent on fuel, as you know. This alternative energy is coming up but it will not replace the full amount. So with that said, it doesn’t mean that they shouldn’t come. They should be here. One of the beauties of Jamaica is that you have the full exposure of the sun, almost the whole day. You can capture all the sunlight energy. We have seven stations where we have installed solar panels on the roofs to reduce the cost of electricity. When the price was high on the fuel, the cost of electricity was like 42c per kilowatt. So solar and wind and everything become unattractive. Whenever the prices being low, the price per kilowatt from JPS has gone down to 19.20.

These projects require a lot of investment. It will be difficult to compete with energy prices that are so low. As a company, we’re focusing on improving the quality of our fuel by bringing in these additives. We just recently brought an additive for the diesel. It is fantastic. And it’s improving the quality of the diesel that is sold, both in terms of fuel and the regular diesel. So, we’re helping the country to bemore conscious of the environment and more efficient in the way they use their fuel.


4.    GB Energy acquired the CHEVRON TEXACO down-stream operations in Jamaica in November 2012. Since then, what are the biggest achievements of Texaco Jamaica?

Well, it has been really good for us so far. When we took over, we took also as we took Dominica Republic and Martinique, Jamaica and Haiti in 2009. So, here in Jamaica I took the lead for purchasing equity and in financing as well. I took the company with a debt of 36 million US and now I have earned 5 million US in three years. Our financial position is much better. We have doubled the sales completely from where we took it. We had a market share of aviation of 2%. We’re selling like 1 million gallons. And last year we sold like 30 million gallons. Now we have 46% market shares, becoming number one. In the oil business like retail with service stations, we have grown significantly in numbers, in volumes and in profits. We have changed the scenario completely.

One of the beauties is that when we took over we didn’t lay anybody out. We kept everybody. In this office, we have more than 500 years of experience. People just needed somebody to help them move because you know that CHEVRON has a number of procedures. So, for a decision to happen it has to go to San Ramon, California come back and everything and the market is very volatile now. We need decisions fast. The fact that we’re able to take these decisions fast and keep the same culture of corporate structure makes us very attractive for somebody to do business with us.


5.    Texaco is one of the biggest suppliers of petroleum products to the United States and Jamaica. Today you supply 67 stations, and you have increased the number of industrial accounts as well as your market share in Aviation fueling supply. In your opinion what are the reasons behind Texaco success and performance?

One of the things is that although we are an international oil company, we seem to be local. We understand the needs of the Jamaican market much better than probably our colleagues, our competition because they see only the rules of corporate structures that they cannot meet with everybody as they please or they cannot really go down. Once you know everybody and you are into the circles of everybody business comes to you by nature and because they want to do business with you. They know you and we’re flexing around. We can work things to wear. That has been a big success for us.

We have got the best workers. Some move to a competition company because we train them so well that they’re being taken away. I am glad for them because we know what the competition goes by. It is only the people and the fact that we are a company that really seizes the opportunities.


6.    Jamaica has a relatively small yet very competitive market. How have you managed to make your way through the energy market?

So, yes it is very competitive because there has been entrance into their players, people have been given licenses to operate. At the end of the day being 97 years in the country, you’ve got certain confidence and trust. The people are getting the right products by the right people and they’re getting what they’re paying for and more. So that has enabled us to position ourselves very well. Now, that we have that much market share we have become customer number one of petroleum. We work very closely with them to help them be successful as well.


7.    You are developing a renewable energy project in partnership with a three-year-old company called New Leaf Power & Conservation Solutions Limited to drive down cost of doing business across the network. What are the results of this partnership today?

We started with these companies that have solar systems. It has been very successful because we changed the way it is applied. We have solar systems that don’t have the batteries or the accumulators. It’s only the use of the sun through the day, which reduces the cost of investment by four or five, and then you recover the investment in a shorter time. It is a hybrid system that combines the electricity at nights and a solar during the day to run the pumps. And, then at night we use electricity. The beauty of Jamaica is that you can return the excess energy that the solar system gets. You can return it to a green and then you get a credit note from JPS.

We have been very successful. We have the project in several service stations, two of the ones we operate and we have seen a reduction of the bills of electricity by 50 to 60%. The other thing that we’re doing is that we’re bringing the sale specialty for the diesel that is going to increase our demand for diesel because people will love it. We are working in bringing new products that are going to be exclusive, and that we will have to open for more people to bring more specialized cars. That will be the same stuff we’re going to bring if they will allow us entrance. The industry will see more of the latest models and the latest things coming up.



8.    The Jamaican Government is working on several measures to attract FDI (foreign direct investment) and if successful, these could benefit Texaco Jamaica as well. So why should any new businesses that come to Jamaica choose to use Texaco Jamaica for its services and products?

One of the things that we offer is that being a commodity that people need, we really eliminate all the stress for the customer in terms of the logistics and having the reliability of having the product at the right price. We become a partner, where we really exercise the concept of partnership and we really work with them and make them understand their fleet and how can we use expenses and how can they get it to pay lower maintenance of vehicles because of the quality of the fuel. We have developed a card that they can use where we can track all the deliveries of our fleets and show them where they’re saving here. Therefore, they are able to manage their weekly expenses for companies in terms of fleet management.

We supply fuel to airlines in the Norman Manley Airport in Kingston and in Montego Bay. We have now the biggest portions of airlines and consumption. We supply also different industries here - Tank-Weld Limited is a metal company. We used to supply all the Chinese for the development of the port. For that time it was a big thing. We were the sole suppliers to them. And we supply sugar factories. We supply the airport industry. We supply people who are in the mining sector. We supply the ships as well. So, we’re out there wherever you need us.

Well, we have a well developed and trained sales force plan and those are like territory managers. They take different regions and visit the customers trying to understand the customer need. They are responsible for the bottom line of their business. Therefore, we have to look at all aspects of what he says in terms of the sales and margin the cost expenses. And they are trying to bring businesses to us.



9.    Corporate social responsibility (CSR) is a useful measure for giving back to the communities in which you work as well as your hard working personnel. What projects is Texaco Jamaica involved in locally?

We believe soundly in giving back to the society so we are the main sponsor of the Corporate and Social Responsibility Award Function of Chung where we recognize leaders of the community. Our main focus has been on education. We are participants of BizTown. BizTown is a concept of junior achievement. It’s the first small city for the kids...  

We have a room like this over there so when the kids come into our room the first thing they see is a convenience store. They look at the oil processes, they would see all the refining process, and how the gasoline is made from crude in that video. Kids are paid to attend that conference. They have their own money inside the city and they have to open bank accounts and they have to train. After four weeks of training on how to trade. And they have to apply for jobs. There is a CEO giving energy there that has to go out and sell energy to different other companies that are in the town.

So when they look at the oil wall, there is the sign of the additives that makes us different from the rest. We have additives and they explain why TECHRON and everything. So, when those kids go back home they wouldn’t allow their parents to go any other way but TEXACO.

Also, last year we donated all the equipment from the first autistic school in Jamaica. Where people don’t have the resources, as companies we come in and help. We work also at rhe development of the AMCHAM, where we’re trying to make people stay in Jamaica and offer them opportunities to grow. We’re involved in a TV channel where they can see our trainings and they can get certified.  The different institutions offer the same programs. They do an exam and they get their certificate.

For example, a waitress may want to be an electrician or a plumber. Then he can see a plumber and then get certified. These are projects that we’re trying to achieve. We also have IBM and other people working on that. I am trying to get all my service stations to support the nearest school to them because community involvement is key. We have gone on several cites where we have aided some schools to help with their retainers. They put 50% and we put 50% and we help a school. And the parents of those kids, even though they can have a cheaper service station, they still come to us because of the giving back to the society and all that. I think it’s very important and we are very committed to help and assist wherever we can.

10.    You have eighteen years of oil industry leadership and expertise spanning two continents and three countries. You are as well a director of American Chamber of Commerce in Jamaica. As a CEO of Texaco Jamaica, what is your biggest achievement? What are you most proud of?

Well, definitely Jamaica has become a pillar for growth within our organization and we have been able to move the organization to a point where there is no coming back. Everybody is focused on the bottom line and how to achieve the results. Everybody has it very clear where we’re heading to and what is in need for it to happen. It’s a challenge. It has been three years trying to change the culture. We’re improving it maybe by saying that people can do a lot more things. We are starting to see the results of that. We’re in better financial positions and we have repaid our debt. Banks are coming to us to board us in a kind of investments without so many covenants and we have doubled the sales.

I think that for me this has been one of the greatest experiences I have had. Yeah, thank God I have been blessed and I have been managed to be accepted and be with everybody here. And you can see, walk around the office and you’ll see that people are happy and willing to work. There are a lot of people wanting to come in. Unfortunately, we cannot all get as many as we want but we promote internship. And people like the way we work and the family concept. We care about people’s family and we care about their needs and we understand when people have to do certain things in the family and we don’t praise them because they are scared of the time but it’s more on the results that they can provide.

I’m very proud of the work here and I think the board is probably happy as well. And, I say totally Jamaica is a land of opportunities. We are going to go into other businesses. Not only fuel businesses, as there are other opportunities like cement business. We may go into cement and go into aviation. We have partners that are willing to continue investing in Jamaica. We have brought people here and they leave with a different mindset of what they have seen before.  It’s a matter that when you know the people and you know who to talk with and you see who is doing what, you can make people arise to new opportunities to invest.


11.    The readers of Harvard Business Review include many of the world’s most influential business and political leaders. What message would you like to send them about Jamaica?

I can tell you from experience that this is a country that welcomes investors that want to really do well for the country. It’s not a matter of doing business and taking the profits out, it’s a matter of investing in the country and helping it grow. Last year was the first year that we saw growth. In the previous years, we have not seen much growth. I think the path is set for growth now. And then the government is giving a signal that is happening. And the past government set out the foundation for stability and now the next step is to grow.

As I told you before there are a lot of opportunities. We have quiet a large number of qualified people that needs to be employed. The private sector needs to do an effort to generate more jobs so that they don´t leave. Most of the people that graduate want to leave the country. We need to retain talents here and there area lot of people that could really add significantly value to the growth of the country and businesses.

I think the relation with the private sector and the public sector is very good.  There is a lot of interaction and openness for doing the work. The government has expressed that they may not have all the funds but they will facilitate for you to invest and do work in Jamaica. There is a lot of red tape and bureaucratic stuff that is being eliminated and needs to be improved facilitating the way for investors to come and do business in Jamaica.