Port company ventures into online shopping, partners with EZone

Avia Collinder, Business Writer

Andrine Higgins, one of the few women in hard hats you might have spotted regularly on the wharf, has diversified operations to marry her small port business with an e-commerce venture.

APL Freight Limited has created a new subsidiary, EZone Jamaica Limited, to offer its clients Internet shopping and delivery service in partnership with Trinidad company EZone International.

The new business line is intended to replace revenue losses, arising from a 30 to 40 per cent downturn in business for the shipping arm since December 2008, said Higgins, the chief executive officer of APL/EZone.

APL's net income fell to J$8 million in 2010, which Higgins describes as "a big, big, cut".

Conservatively estimating the value of annual Internet-based shopping by Jamaicans at $42 million, the shipping specialist has projected new earnings of about J$3 million over the next 12 months for the new business.

Introduced in December

EZone Jamaica services were introduced back in December, but the company was launched officially seven months later on July 12. It integrates shipping logistics with the Jamaican consumer's desire for a wider variety and more affordable products, said Higgins.

Higgins said the deal inked with trans-shipment firm EZone International would allow turnaround of a few days to a week to deliver goods that arrive at EZone's Miami warehouse. The packages will be delivered directly to Jamaican homes.

With sole investment in the venture being marketing spend of J$100,000, the entrepreneur says she expects high returns and that the clients who have signed up this month support her positive outlook.

EZone International will earn a portion of the freight charges collected by APL, Higgins said.

Higgins started APL Freight in July of 2003, offering shipping services from North America, Panama and Asia, out of what she describes as a passion for entrepreneurship.

"Shipping used to be seen as for the 'boys'," she said.

"I wanted to sometime in the future be seen as a woman who did not relent but persevered, and ultimately an example to our young people that nothing is impossible if you work hard."

The business was started with J$500,000 in personal savings, in partnership with husband Peter Higgins, a career banker who is not involved in the day-to-day operation, but provides advice. As the company grew, loans were secured to improve infrastructure and provide "a competitive edge".

The couple decided to diversify in response to the wide usage of the Internet in the last couple of years.

"Instead of boarding a plane to shop, or shopping in a store where the merchant would have to add on profit, persons are shopping direct and having their goods delivered to them," said Andrine.

"EZone International has seen an increased percentage of package movement in the last three years ...".

EZone provides the delivery service to Chile, Colombia, Guyana and all the Caribbean islands.

Higgins says rates of US$2.50 per pound, or a minimum US$10 per package, are now the cheapest on offer, which she hopes, combined with a "personalised service", will lead to EZone securing the No. 2 spot in the market behind MailPac Express, by the end of year two of start-up.

"Based on our research, this new service will see a growth in approximately 25 per cent in year one, and 40 per cent in year two," she said.