Shipping Corporation expands business
Ceylon Shipping Corporation (CSC) is considering to acquire its own
ship fuel supply vessel to sell bunkers in Colombo port through its
joint venture with a Greek shipping family firm, its sources said.
CSC has started dealing with bunkering in a small way and are looking
at buying a supply barge, an official at CSC, Sri Lanka's national
shipping line told the Daily News Business.
Colombo's bunker or ship fuel market is becoming more competitive
with eight licence holders in the fray. But only two, the largest
supplier, Lanka Marine Services (LMS), and Sri Lanka Shipping, have
The storage tanks are to become a common user facility available to
all licensed suppliers.
The CSC official said, the joint venture now sells bunker fuels by
sub-contracting orders to the firms with supply vessels.
LMS, a unit of conglomerate John Keells Holdings, long held an
effective monopoly on ship fuel sales in Colombo and owned the only
onshore storage facility until a recent court order to hand it back to
CSC has set up a company called CSC Kandia, a joint venture with
Ariston Oil and Shipping, part of the group owned by Greek shipping
tycoon Pyrros Vardirioyannis, whose family has a long maritime business
The CSC official said, the joint venture with the Greeks will now
concentrate on bunkering after it lost its bid to ship crude oil
supplies to the state owned oil refiner, Ceylon Petroleum Corporation.
Seminar on maritime and ports security
Today, the international community fails to realise that sea piracy
still has not been eliminated.
Not only has piracy never been eradicated, but the number of pirate
attacks on ships off the coasts of Somalia, Nigeria and the Malaccan
straights has tripled in the past decade elevating piracy to its highest
level in history. And contrary to the stereotype, intelligence has
revealed that today's pirates are often trained fighters aboard
speedboats equipped with satellite phones and global positioning systems
and armed with automatic weapons, antitank missiles, and grenades. Many
of these so-called pirates have ties to their regional terrorist
organisations, a press release states.
Asia Securities downsises JKH Transport Sector profits to Rs. 928 m.
Asia Securities has downsized the 2008/2009 profit forecast for the
John Keells Holdings Group Transport Sector to Rs. 928 million due to
the cascading effects of the recent Supreme Court judgment on Lanka
Marine Services Ltd.
The forecast was buttressed by the Sri Lanka Ports Authority planning
to liberate bunkering services by allowing other licensed operators to
share the facility.
Accordingly, eight operators would have equal access to the common
user facilities, comprising the main pipeline and storage tanks.
An Asia Securities spokesman told Daily News Business that while it
believed that LMS would maintain a competitive edge over alternate
suppliers, it was evident that the sharing of facilities would result in
storage capacities of LMS being insufficient to meet the demand
Therefore, he said, JKH was currently exploring the option of
expanding capacity through the utilization of floating tankers, which
will be obtained through leasing agreements with regional suppliers.
However, it was evident that margins would be somewhat thinner due to
the additional cost pressure inserted by the leasing option coupled with
the relatively higher cost of offshore storage compared to onshore
"Additionally competitive pressures on account of the entrance of new
players would further hamper growth.
With the sharing of the facility amongst all operators we believe LMS
would witness a significant decline in the market share currently held.
Whilst LMS previously operated with a virtual monopoly commanding nearly
75 per cent market share, we believe conservatively that with the
entrance of new operators this share would decline to a near 20 per
cent," he said.
Asia Securities believes that JKH is in a strong position to recover
from this non-recurring setback, whilst the earnings outlook of the
company remains healthy in the long run.
Project to bring maximum transshipment income
The Data Base and the Project Access Report of the Colombo Port
Integrated Development Project (CPILDP) of Sri Lanka Ports Authority (SLPA)
was launched at the Mahapola Training Institute (MPTI) of SLPA recently.
Co-Chairman of the Project, and the Executive Director of SLPA Dr.
Sanjaya Sedara Senarath said that it was much pleasure to complete these
works with the fullest contribution of the staff and employees of SLPA
without outsourcing the project. Co-Chairman, and Director of SLPA
Prasanna Kalutharage stated that SLPA was able to save a large amount of
money by implementing the programme as an inhouse project. He also said
that the exemplary procedures set by the implementation of Hambantota
Port Development Project, gave boost for the implementation of such mega
programmes to be carried out with the expertise and the experience of
the employeer of SLPA without handing them over to local or foreign
Colombo Port Integrated Land Development Project is in the third
place among several other mega port development programmes implemented
by SLPA. It is also the first ever such development project implemented
with the hundred percent contribution of the in-house consultation, and
employee participation. The programme has been planned to bring maximum
transshipment income to SLPA once the project is completed. A 26 acre
land in which SLPA employee quarters have been situated will be utilised
to build the cargo village under the project.
Kiran wins Presidential Export Award
Colombo Engineering Enterprises, won the Presidential Export Award
2008 in the ship repairing sector for the second consecutive year
Having earned a name as the 'Model of efficiency' in Shipping,
Colombo Engineering Enterprises has won twenty two awards to-date for
its off shore services in the international shipping industry. In total,
the company has won seven entrepreneurship awards, four Exporter of the
Year awards, eight National Business awards and one achiever of
Industrial Excellence National award and two Presidential awards.
Chairman, Colombo Engineering Enterprises, Kiran Attapattu receiving the
award from Prime Minister Ratnasiri Wickramanayaka.
United Shipping to celebrate 20th anniversary
United Shipping Inc., the premier Worldwide Association of
Independent Freight Forwarders and Customs Brokers with over 110 partner
companies and 250 offices is announced the details of their grand 20th
The association founded in 1988 is planning a royal one of the kind
anniversary extravaganza October 13-17, 2008.
Partners from across the globe will convene at the Omni Royal Hotel,
New Orleans, Louisiana to celebrate. Fred Hall, President of United
Shipping states "We have been working extremely hard on the upcoming
meeting in New Orleans and plans are coming together very nicely. We've
got a lot of great surprises in store for each person in New Orleans".
The 38th Worldwide Meeting and 20th Anniversary Gala is on track to
be the largest attended meeting in the history of United Shipping.
United Shipping is an innovative, forward thinking association that
provides exceptional service through all transportation methods. The
unique group prides itself on being a distinctive organization that
represents the epitome of the concept "Partnership".
United Shipping is the first of its kind network and seeks to achieve
common goals while maintaining outstanding performance in a global