CPC in joint venture with Greek shipper
Sri Lanka’s national shipping line, Ceylon Shipping Corporation has
struck a deal with a member of a famous Greek shipping company for a
joint venture project to transport petroleum products and supply ship
fuel ,its sources said .
The company has signed a MoU (Memorandum of Understanding) to form a
joint venture company to go for oil transportation, particularly for CPC
(Ceylon Petroleum Corporation) and also to do bunkering in Colombo,” a
senior company official said.
The MoU was signed with Pyrros Vardinoyannis, scion of one of
Greece’s well-known shipping families with interests in shipping as well
as petroleum. The joint venture has tentatively been named CSC Kandia.
The CSC official said the joint venture is also eyeing opportunities
to do bunkering in Colombo, south Asia’s transshipment hub. However,
bunker prices in Colombo are among the highest in the region and there
is scope for more competition, officials said.
“We have signed a kind of pre-incorporation agreement outlining the
objectives of the joint venture,” the CSC official said.
The Greek party will provide a vessel, either their own or chartered,
and invest along with the CSC. The company is looking to see whether a
joint venture company of both parties can be formed to go into business,
its sources said.
The official said the joint venture is aiming to bid for a tender
from the CPC, the state oil refiner, for a long-term transport contract
to ship petroleum products. The CPC is calling tenders for freight. They
usually go to the spot market but this time they’ve called for a one
year-period, its sources said.
The CPC wants to go for long-term freight contracts to reduce costs
and be able to ship bigger parcels, officials said. The Vardinoyannis
family network includes shipping and petroleum refining as well as
sports. It is one of Greece’s close-knit shipping clans that are
connected to each other and have considerable influence in the maritime
Hambantota port progress assessed
The higher officers and the Divisional Heads of the Sri Lanka Ports
Authority (SLPA) recently participated in a special inspection tour at
the Hambantota Port Development project.
The construction work in Hambantota port is expected to be
completed by 2012. Presently phase one of the project is in
progress and expected to complete in 2009. Chinese government is
funding the project.
This was the first occasion, 23 Divisional Heads of SLPA took part in
an inspection tour at the site to inspect the on going construction
activities of the project. The participants were specially acknowledged
the construction work of the Hambantota port development project, the
progress and also of its future operational activities during the
Being a mega development project implemented in Sri Lanka, Hambantota
Port Development Project is fully supervised and inspected by the
Engineers of the SLPA. This has enabled the SLPA to save a huge cost
that would have to be spent if the project was handed over to foreign
experts for supervision and inspection.
Vice Chairman of SLPA, Priyath Bandu Wickrama functions as the
Director of the Hambantota Port Development Project. The port is
constructed upon his advice, under the supervision of the Chief Engineer
of the Southern Port Development Project, Janaka Kurukulasuriya.
Hambantota is the nearest point to the main shipping rout connecting
the East and West. As the Port of Colombo is reaching towards its
maximum capacity due to the lack of the space for all type of cargo
including bulk, break bulk, roro, oil and gas, container and etc;
another suitable and efficient port is required with all facilities, to
cater for such needs.
As a completely successful solution to this future congestion of
maritime activities and serves in the Port of Colombo, the second
biggest port in Sri Lanka is constructed nearest to the international
maritime route in Hambantota.
The area also consists of good geographical location, good weather
conditions and closer to deep contours for such a construction.
Hambantota has a low population density and is also considered as a less
developed area for a long time.
Extensive land and less restrictions in the planning therefore, has
enabled to construct Hambantota Port Project as an internal port which
is cost effective rather than the off shore constructions.
Due to the natural depth along the cost line, there is no need for
the construction of a long approach channel as well.
The land in the area stands suitable for many port related industries
and services too.
The port in Hambantota will also be constructed specially, enabling
to handle 100,000 dwt vessels. It will have an approach channel of 210
metres wide and 16 metres deep. The turning circle is of a diameter of
610 metres at a depth of 16 metres.
K Line will resume calls at US port of Portland
Tremendous benefit to export community:
Japanese ocean carrier, K Line, will resume calls at the US port of
Portland, Oregon, from the end of July.
Japan is a major market for Oregon’s fruits berries and agricultural
products and is the state’s second-largest export partner, behind
Canada. This will be a tremendous benefit to the region’s export
community, said Sam Ruda, one of the port’s directors, after visiting K
Line officials in Tokyo.
The K Line call results from a ‘slow-steaming’ induced vessel change
within the CKYH Alliance, of Cosco, K Line, Yang Ming and Hanjin
Shipping which means that Taiwanese ocean carrier Yang Ming, will no
longer directly call at Portland.
K Line last made a direct call at Portland in December 2004.
Virginia signs deal
The Virginia Port Authority said its operating company, Virginia
International Terminals Inc., has signed its largest customer to a
10-year contract valued at more than $500 million.
The deal is with a consortium comprising five carriers: COSCO, “K”
Line, Yang Ming, Hanjin Shipping Inc. and United Arab Shipping Co.