Business Shipping

Two more vessels to take over:

Mercantile shipping bid to modernise fleet

Hiran H.Senewiratne

Sri Lanka’s Mercantile Shipping Company Ltd would take over two newly built cargo ships as part of efforts to modernize its fleet of the company, one of its officials said.

The company has signed an agreement with the Dutch government for a ship building grant for the two multi-purpose vessels each of 7,800 tons deadweight.

The ships will have their own cranes for handling break bulk and container cargo for the purpose. Therefore the construction of ships have begun in the Netherlands, which will delivered as soon as it is completed, Company sources said.

The cost of a vessel would be around 12.5 million euros each and be partly funded through the Dutch grant, and partly through the company’s own capital and international loans.

The firm turned around last year on higher vessel charter rates and chartering of vessels to the government. The ships will fly the Sri Lanka flag and will be crewed by Sri Lankans so they are going to be Sri Lankan ships.

I believe this is the first time a private shipping company in Sri Lanka is getting new buildings. Sri Lanka’s handful of ship owners had till now bought second-hand cargo ships because of the high cost of building new vessels.

But sharply higher prices of even second-hand ships now make new vessels a more affordable proposition.

The firm turned around last year on higher vessel charter rates and chartering of vessels to the government. Its vessels have kept Jaffna supplied with food and other cargo for many years when fighting between government forces and Tamil Tigers meant overland supply was not possible.

Sri Lankans own 51 percent of the firm’s shares with the rest owned by German collaborators - D.E.G. of Koln and Reederi Eugen Friedrich of Bremen. The company has shed staff and sold off old and uneconomical vessels in the last couple of years.

Mercantile Shipping made a net profit of 58 million rupees for the year ended March 31, 2007 compared with a loss of 42 million the year before is one of the fastest growing shipping companies in Sri Lanka.

The company is a Sri Lanka-German joint venture that once owned a fleet of nine second-hand cargo ships.

German Assisted Boat Show Sri Lanka in June

The first ever Boat Show in Sri Lanka will be held from June 8 to 10 at the Bandaranaike Memorial International Conference Hall (BMICH), Colombo and is expected to attract buyers and sellers from the leisure, marine, tourism, fishing and other related industries.

This venture has the support from the State and the commercial sector, states Boat Building Technology Improvement Institute Lanka (Gte) Ltd (BTI).

The Boat Show Sri Lanka 2008 exhibition will open up new frontiers of leisure boating, marine, industrial and commercial vessels.

The primary aim of the boat show is to introduce this trade to the local market and create a much more sophisticated target audience. In Sri Lanka, the trend of leisure and adventure boating has not yet found its true potentials.

The Boat Show 2008 is the super high way to reach this target. By creating the interest among Sri Lankans, it is hoped that the interest generated through this will increase gradually.

The Hotel trade is expected to also benefit by this type of a show since the latest water sports methods and water related activities will be displayed by leading international and local traders.

This will be a fine opportunity for the hotel trade to try out new areas to improve hotel entertainment.

The Boat Show 2008 is organised by the Boat Building Technology Improvement Institute Lanka (Gte) Ltd (BTI) and is financed by the German Metal Producers’ Association (Metallverband Niedersachsen), and several other sponsors. GTZ (German Technical Corporation) supports with the implementation.

The Boat Show 2008 will be an exhibition that would interest both the inventors and investors.

The intention of the organisers is to provide a forum for all the related business sectors involved directly and indirectly with the boat building industry to display and promote their respective sectors to their potential clients.

The sectors include suppliers of material, engines, interior fixtures, fittings, electrical and electronic devices, navigation equipment, on board safety equipment, credit insurance, providers of service to industry such as investment promotion, marketing and export facilitation, repairs to boats hull, engines and other equipment and training providers in boat building, navigation and seamen training.

A definite focus will be made to promote the industry among selected markets such as Maldives, India, Bangladesh, Seashells, Madagascar, the Middle East and Europe for possible long term investment and exporting opportunities.

Leading boat manufacturers of both local and foreign markets have already shown interest in participating in the boat show 2008.

Also the necessary action have already taken place to register the interested goods and services providers such as engine suppliers, material suppliers and navigation equipment suppliers. Also the goods and service providers, falling under the following categories can be potential exhibitors.

The aim of the boat show is to attract buyers from all corners of the globe and develop a forum between them and the sellers. It is also to create a link with the Tourist Board, EDB and BOI to invite buyers to visit and negotiate business, which is considered a primary target.

A trend is evolving in the Western boat market to turn towards developing countries to manufacture fiber reinforced plastic (FRP) popularly know as fiberglass, especially for hull construction.

MEX head office shifted to Turkey

Having delivered the first taste of coffee to Europe and the first sound of minted coins to the world, Turkey now delivers the difference in total solutions international freight management as Middle East Express (MEX) the market-leading distribution service company has now shifted its head office to Istanbul.

MEX Courier & Logistics, established in 2002, is a young company that has surged from its initial ground operations in wholesale courier express in the UAE, India and Sri Lanka, to quickly span a network of worldwide destinations.

MEX now provides a comprehensive spectrum of Wholesale Courier and Express Freight solutions to customers in various industry sectors, including the world’s largest airlines, freight forwarders or retail courier companies.

The company has attributed its rapid appeal and growth to its flexible but efficient diversification of services and results-oriented team work.

President and CEO of MEX LOGISTICS Rohan M. Sivanathan had this to say “We are proud of the success that the company has achieved. Despite being a relatively young company, our commitment to customer service and innovation has meant that we have reaped big rewards as our reputation has attracted more clients.

The move to Turkey is a strategic one as we will be at the hub of activity and will thus be able to serve our clients with even greater speed and efficiency. We are looking to expand our business while maintaining our high standards and continuously exceeding customer expectations”

MEX has mastered all tiers and facets of freight management from airport to airport to door, inclusive of warehousing and container storage facilities.

The company’s commitment to Total Customer Satisfaction inspires in the team a keen eye for the finer details, and the company is manned by experienced, licensed custom brokers who provide simple clearance services and professional solutions based on the customer’s shipping needs.

The company doesn’t limit itself to the usual benchmark of freight management - offering same day deliveries or daily consolidations to major cities, it also goes the extra distance in the diversification and ingenuity of its services, from providing the latest cut offs in wholesale courier service to transporting additional luggage of any quantity to over 400 destinations for 70 per cent less than the price of sending it as excess baggage.

MEX has raced ahead in the competitive courier service industry, conquering the largest wholesale network in the Middle East, Africa, Western and Eastern Europe and Asian Continents, and is currently the Handling and Sales Agent in Colombo of Linehaul Express (the GSA of Cathay Pacific Wholesale Courier) with direct routes to Hong Kong, Bangkok and Singapore.

The company’s relentless pursuit for innovative, dependable and more extensive customer servicing was evidenced when MEX recently consolidated a wholesale courier joint venture with an international logistics service company in the United Kingdom. This operation is expected to commence in full force in mid March.

MEX currently has branch offices in Abu Dhabi, Colombo, Chennai, Hong Kong and Singapore and has shifted its head office from Dubai, U.A.E. to Istanbul, Turkey. MEX has testified since its inception in 2002, that a total solutions freight management service doesn’t just deliver the goods, it delivers the difference.

For more on MEX log on to their websites www.middleeastxpress.com or www.mexuae.com