Phillips Not Surprised by Collapse of Railway Revival

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Opposition Spokesman on Transport Mikael Phillips, says he’s unsurprised about the collapse of a Multimillion dollar deal to revitalize the country’s rail transport system.

A memorandum of Understanding between the Ministry of Transport and the US-based Herzog Railroad Services Incorporated, HRSI, expired last week.

Mr. Phillips says the government was warned about possible challenges.

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According to a report in the papers yesterday, Herzog Jamaica Limited a Subsidiary of HRSI failed to meet the deliverables of the non-binding MOU signed over one year ago.

Mr. Phillips is urging the government to look instead at the Appleton to Montego Bay leg of the rail system where possible returns can be had.

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Mr. Phillips says rail transport in Jamaica can be profitable under the right circumstances.

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