Shipping

Colombo Dockyard launches biggest vessel built in Sri Lanka

Colombo Dockyard PLC launched the first hull of the 250 Passenger cum 100 Ton Cargo Vessel being built for the Administration of Union Territories of Lakshadweep, India.

This vessel will be the first one of a series of two ocean going Passenger cum Cargo Vessels and will be suitable for operation in all weathers on the route from the Main Land to UTL Islands as well as inter island routes.

This is the biggest vessel (size wise LOA 89.00 meters x 15.50 meters) built by CDPLC to date, in the eventful history spanning over 3 decades.

The launching was attended by Chairman CDPLC, S. Tatebe, MD/CEO, Mangala Yapa, Senior Managers, Y. Kijima and the project teams of CDPLC. In addition, officials from Lloyds Register of Shipping and Indian Register of Shipping also took part in the event.

Block Assembly work on this vessel commenced in March at a ceremonial event held at the yard with the participation of Shri B.V. Selvaraj IAS, the Administrator of the Union Territories of Lakshadweep, as the Chief Guest.

The significance of this project is that, this is the first time in the history of local shipbuilding industry that a Sri Lankan organization is building a ship for the Government of India.

We are indeed proud of the absolute confidence placed on Colombo Dockyard by the Client, counting on our experience and competencies in awarding this prestigious contract. The first Passenger Vessel is scheduled to be delivered end 2009 and the second is scheduled to be delivered early 2010.

The design of the Vessel was developed by a world renowned ship design firm, Larsen & Toubro Limited, e Engineering Solutions - Marine & Ship which is a Strategic Business Unit of Larsen & Toubro Limited of India and the Vessel is built and classed by Lloyds Register of Shipping and Indian Register of Shipping and statutory rules applicable for a vessel of this type.

The Vessel will be powered by two Japanese made YANMAR 6 EY26 Main Engines each developing a propulsive power of 1950 kW, driving two Japanese made KAMOME CPR 65 AVCN Controllable Pitch Propellers.

This combination provides a high level of manoeuvrability, optimum efficiency and cost effective operation for the Vessel.

The Accommodation spaces in this Vessel consists of private space, office space, sanitary space, catering space and other spaces which are standard in Passenger Vessels and is fully air conditioned using an air conditioning system consisting of central air handling unit and refrigerating plant, designed on the basis of environment friendly refrigerant chilled water system.

Well equipped wheelhouse shall provide excellent visibility of the horizon. Navigation and communication electronic equipment will be predominately supplied by European and Japanese Makers to increase reliability.

The Crew of 39 will also be provided with comfortable and elegant living quarters matching the world standards available on a vessel of this class.

Justifying the achievements of this blue chip business entity, Colombo Dockyard's role in the local business community was acknowledged when CDPLC won the prestigious Ten Best Corporate Citizen Award 2008 Top Ten Category Winner and overall Winner - Less than Rs. 10 Billion turnover category. These prestigious awards are awarded by the Ceylon Chamber of Commerce, Sri Lanka, for its performance during year 2008.

Foundation laid for strong Lanka - Taiwan shipping ties

Gunapala RANASINGHE

The shipping ties between Sri Lanka and Taiwan is long-standing. Today Taiwan shipping sector is in the forefront in comparison to other shipping sectors in the countries.

Utilising the existing shipping resources Taiwan had enhanced the ties between two countries and also future plans are afoot to promote the ties. said Green Lanka shipping Manager Kanishka Jayawardene. Jayawardene said so addressing the Sri Lanka Economic Community forum held in Colombo.

Taiwan's Director of Economic and cultural centre Dr. Leon Lee said that this time is ripe for Sri Lanka and Taiwan to engage in trade and commerce.

Lee said that Taiwan new government, has already established friendly relations with China and worked to strengthen ties by opening four important Business Centers in China. Such Business Centers were also opened in India as well.

Detailing further he explained that Taiwanese have well understood the economic and business expectations of Sri Lanka. Accordingly, rather than mobile phones, computers and laptops etc from Taiwan, what Sri Lanka could most benefit from are by agricultural equipment and the likes. Both countries are similar in size and population, and are drawn closer through the bond of Buddhism.

He emphasised on the positive need to cast aside every semblance of politics in order to benefit by business oriented economic cooperation between the two countries.

Concluding his speech he stressed upon the fact that Sri Lanka is in reality far less dangerous than most other nations in Asia, which is due to the Buddhist upbringing of majority Sri Lankans, who seem quite tolerant and respectful of the sentiments of other religions as well.

India reserves more funds to buy ships

The Shipping Ministry in India wants ships to be tagged as infrastructure so that shipping firms can avail of funding and refinance pledged by Government-backed lenders earlier this week for infrastructure developers, a Ministry official said.

The move follows a global slump in shipping rates and an acute shortage of financing in the wake of the global financial crisis since the September collapse of US-based investment bank Lehman Brothers Holdings Inc "We are drafting a proposal for granting infrastructure status to ships," the official said on condition of anonymity.

He added that the proposal will need the backing of the Finance Ministry, which is now headed by Prime Minister Manmohan Singh after P. Chidambaram was appointed Minister of Home Affairs.

If the move is successful, the shipping industry will be able to avail of tax holidays and access to the same special funds currently available to firms operating in sectors that include roads, bridges, railways, seaports, airports, inland waterways, urban transport and infrastructure projects in special economic zones, among others.

Recently the Government allowed India Infrastructure Finance Co. Ltd (IIFCL) to raise Rs. 10,000 crore through tax free bonds by March as part of an aid programme worth Rs. 32,000 crore to trigger infrastructure investments to stimulate the economy.

"This is the best time to buy ships and secure capacity if you have money so that in future, when the market is up, owners can make money," said R. Srinivasan, Executive Director at Chennai-based dry bulk shipping firm West Asia Maritime Ltd. A steep decline in ship rentals in the past three months has pulled down ship prices.

IMF warning for shipping sectors

The IMF warned that growth in China could be cut in half from this year to next, with serious implications for shipping sectors.

China said today that its industrial output is growing slower than at any time since 1999, Reuters reported.

International Monetary Fund chief Dominique Strauss-Kahn told a conference that growth in China could be just 5% next year, from 9.7% in 2008, Reuters also reported. Meanwhile, Japan's economy might shrink in the year to March 2010, Bank of Japan governor Masaaki Shirakawa told London's Financial Times newspaper; the bank previously expected a slim recovery. On this news and uncertainty regarding a possible US auto industry bailout, Japan's Nikkei 225 gained 5.2%, the Hang Seng rose 2% and an index of 300 top European shares was flat.