Make Hambantota a Free Port

Shirajiv SIRIMANE

Despite having advanced equipment the productivity of the Government owned Jaya container terminal does not run efficiently as the privately owned SAGT.

The main reason for this is the lack of efficiency and dynamism that prevails in the private sector, Managing Director, McLarens Holdings Ltd and famed racing driver, Rohan De Silva said at the rendezvous with Daily News Business.

“This unfortunate phenomenon is evident in most of the state owned entities. It is high time that new thinking is introduced to this state venture, giving new dynamism to it and bringing out more positive results,” he said.

The time taken to expedite a project in Sri Lanka is too long and the classic example is the Colombo South Harbor expansion and the Hambantota Port project. “I think that the Colombo South Harbor expansion should have been commenced three years ago and the Hambantota project at least 25 years before,” De Silva added.

Representing the third generation and heading over 20 diversified companies, he says that the professionalism is the key to their success. “Though it is a family concerned business it is professionalism that is driving forward our business,” he said. An old boy of St. Benedicts College Kotahena, he took over the management of the company in 1992 and since then is maneuvering it effacingly as he does in the field of motor racing adding fuel, attending to wear and tear, introducing new parts and other material as and when needed.

The advantage in a family owned business is the human touch the employees receive which is very much evident at McLarens Holdings Limited even today. His personal touch extended beyond business and the company provided Mac foil free of charge to refugee camps in a bid to cool off the heat in shelters.

In addition to working closely with the hospitals, the company’s CSR is also being extended to rehabilitation work at prisons under which they have built a library at the Welikada Prison.

The birth of the company dates back to the colonial era, to 1944. Then a group of enterprising individuals including J.D. McLaren himself pooled their resources and talents with the aim of launching out into the world of shipping. By 1947, McLarens had quickly gathered momentum as a shipping agency in Sri Lanka representing a number of international shipping lines and providing agency services. The company also offered the services of a coal depot in the Colombo Port for the purpose of providing bunkering facilities to the steam powered vessels of that era.

In 1973 under the Chairmanship of Hubert De Silva, McLarens experienced rapid growth to become a well-diversified group of companies operating under the names of McLarens, InterOcean and McOcean.

Throughout the last two decades, McLarens Group of companies secured an increasing number of liner shipping agencies and branched out into other related business. A partnership with the Gulf Agency Company (GAC) Sweden enabled the company to offer unique services to vessels crossing Sri Lankan waters off the Galle Port in addition to several marine-contracting services.

Today, McLarens is a conglomerate in Sri Lanka, sailing ahead into the waters of a challenging and exciting future in the new millennium.

McLarens is a Group of Companies engaged in Shipping Related and Hospitality Trade Business as core business areas and, it has now diversified into Importation and Distribution of Lubricants under the brand name Mobil, Fertiliser, Manufacturing of Packaging Materials, Logistics Service, Travels and Tours.

Q: Are you looking at being a listed company?

Well there are advantages and disadvantages in being a listed company and we are keeping our options open.

Q: Do you think the proposed Hambantota Port project is a viable one?

Definitely it is. I am sure once the project is completed it would attract more ships than the Colombo Harbour.

The Hambantota Port is located in a premier shipping route and it is easy to attract vessels. Due to its plan going inland it has a tremendous advantage with regard to land availability for the future and expansion would never be a problem. Lack of congestion and less security concerns also make the Hambantota Port an even viable venture.

However for the Hambantota to succeed the Colombo Matara expressway has to be completed with a highway linked to it. In addition a rail link too has to serve the harbour. The authorities must try to make the Hambantota a free port just like Singapore and Dubai and must make it a one-stop shop to meet all shipping sector needs. We have already laid our plans to anchor some of our operations in Hambantota as we see a future focus in this area.

Q: How do you see the development of the Sethusamudram project by the Indian authorities?

Though many think that it is a threat to the Colombo Port I do not think so. There are several minus points to ‘Sethu’

Q: What do you think is the success story of Singapore and Dubai Ports?

Both these Ports are free Ports and this is the key to their success. They do not have many taxes discouraging the vessels. Sri Lanka too should take a leaf from these Ports and when rules are going to be in place for the Hambantota Port, the Government should try to earn revenue in different ways.

Q: What do you think is the reason for Passenger ships coming to Colombo to dry up?

Unfortunately I think it is the present security situation and also may be the lack of better facilities for passengers at the Sri Lankan Ports. Prior to 1971 passenger ships would anchor in Trincomalee and Galle and after dropping the passengers would sail to the next local Port to pick them up.

Q: What do you think of motor racing in Sri Lanka at present?

First only around 147 men and three females are in the fray, which is not at all adequate. The average age of them is defiantly over 40 and this also is very disappointing. Sri Lanka can make a huge impact in the international scene and authorities must look at this sport more seriously. We are also designing a Pro Cart track in Battaramulla in a bid to feed youngsters to the circuit.

Q: Can you recall an unforgettable experience?

When I was racing in Kandy my car fell in to a drain and then rolled on to the Kandy Lake. The car was fully damaged and I was stuck in the car for sometime before coming out of the water.

Q: Where would you like to spend your holiday overseas and in Sri Lanka?

I love Nuwara Eliya mostly for the races. When it comes to overseas I like USA as there are so many places where you can go and race.

Pictures by Saliya RUPASINGHE

Management Club meeting

The next in the series of evening meetings organised by The Management Club (TMC) for members and their guests will be held on Monday, August 25 at the Palm Lounge at Galle Face Hotel, commencing 6 p.m.
CEO of Dialog Telekom Dr. Hans Wijayasuriya will speak on ‘Empowerment through connectivity”.