Business shipping

Mercantile shipping net profit rises

Sri Lanka’s Mercantile Shipping Company, a ship owner listed on the Colombo bourse, has said higher ship charter rates and chartering of vessels to the government have helped it turn around.

The company, whose small fleet was once the island’s biggest, made a net profit of Rs 58 million for the year ended March 31, 2007 compared with a loss of Rs 42 million. Revenue fell to Rs 567 million from Rs 682 million.

According to the company sources that, shareholders in the company’s annual report that the group did “extremely well” during the year.

“The sharp improvement in profitability is mainly due to the increased charter hire for Safmarine Soyo, and income from other vessels which have been chartered to the government of Sri Lanka.” Strict cost control measures taken after the group was restructured also helped.

The company, a Sri Lanka-German joint venture, has shed staff and sold off old and uneconomical vessels, including the 40-year-old Mercs Kirinda.

The company has been talking of renewing its fleet after having sold off its oldest ships for scrap. However, Jayawardena warned that the age of the remaining vessels means certain increase in repairs and maintenance costs.

The company once owned a fleet of nine-second hand cargo ships vessels with the biggest being a ship of 20,000 tonnes.

Its vessels have kept Jaffna supplied with food and other cargo for many years when fighting between government forces and militants meant overland supply was not possible.

The company lost the coastal business with the ceasefire but resumed sailing to Jaffna last year when the resumption in hostilities once again led to the closure of the Jaffna road.

Two Mercantile Shipping vessels have been constantly sailing to Jaffna with food, medicine and other cargo.

‘Laemchabang’ makes her maiden call

Laemchabang of TS Line made its maiden call at Jaya Container Terminal (JCT) of Sri Lanka Ports Authority (SLPA) recently.

A plaque exchange was also held on board the vessel between the captain of the ship and Director (Operations) of SLPA U. Bopitiya.

TS Line hence announces commencement of their newly launched CSI service teaming up with Yang Ming Line/ Ever Green marine Corporation/ Samudera Shipping Lines and STX Pan Ocean.

TS Lines made its entry by participating in this consortium from Shanghai on 22nd of October 20007 deploying MV TS Laemchabang whilst each member line contributing a vessel with 1600 TEU capacity with a service speed of 18 knots.

With the commencement of TS Line’s newly launched CSI service TS Line will provide direct service to Singapore/ Pasir Gudang/ Johr/ Laemchabang/ Hong Kong/ and Shanghai from Colombo.

TS Lines consists with a fleet of 23 vessels ranging from 1000 - 3100 TEU on 24 services covering 20 countries. With the inclusion of CSI service, TS Line provides its 03rd service via Colombo.

Additional Managing Director of SLPA Capt. Nihal Keppetipola, Director (Operations) U. Bopitiya, Harbour Master Capt. Ravi Jayawickrama, Operations Manager (Marketing) Upul Jayathissa, Dy. Chief Operations Manager Jayantha Perera and S.A.M. Dissanayake, Director of the local agents for TS lines in Colombo, Diamond Shipping Service (Pvt) Ltd; Rajndram Nair, Lalindra Fernando, Tuan Ameer, Nilanka Weerapperuma, Omal Balapatabendi and Chanaka Jayasundara were also present at the occasion of the plaque exchange of the new vessel.