Shipping

JKH Shipping to cushion impact

Hiran H. Seneviratne

Although the John Keells Shipping Sector is about to be hit adversely with the global economic crisis, higher ups in the industry are taking measures to cushion the impact.

The Government has taken remedial measures an various other aspects which were successful and this sector would follow that policy, brokers and shipping sources said.

A container terminal which is one of the main money-spinners for John Keells Holdings (JKH) has seen a fall in volumes owing to the global economic crisis, the sources said.

According to statistics container volumes handled by South Asia Gateway Terminals (SAGT) at the Colombo Port fell almost 12 per cent last month to 122,095 TEUs (Twenty-foot Equivalent Units) from a year ago, the second consecutive monthly fall.

This slow down is expected to continue this year as global trade contracts and the fall in box volumes, coupled with the loss of a key SAGT client, is likely to erode JKH group earnings, sources said.

The declining performance can be attributed to the global recession that resulted in bringing down business.

It is believed that SAGT volumes will decline further on account of lasting global recession. JKH has a 38 per cent stake in South Asian Gateway Terminals and counts the terminal operator as an associate firm.

The JKH group's transportation business, which includes the Lanka Marine Services (LMS) ship fuel unit, has emerged as its main source of profits in recent years. SAGT also lost a key client, APL, to the state-owned Jaya Container Terminal last year. APL handles over 200,000 boxes through Colombo, shipping industry analysts said. But LMS lost a tank farm and an effective monopoly in fuel supply in Colombo port last year when the Supreme Court ruled them as having been acquired illegally. We believe the margins of SAGT and LMS will come under pressure with the pressure mounting on international trading activities with the global recession, Lanka Securities said.

Shipping rates fall: investors alarmed

Rajah Abeyasinghe CEO, Allied Trading & Engineering (Pvt) Ltd personally supervised the delivery of the Truck to Jong Gon Jung of Hyundai Engineering at the Wadduwa job site.

"A steep fall against the dollar, mostly driven by deepening concerns about the European banking sector, alarmed investors," Oh Tae-Dong, an analyst at Taurus Investment and Securities, told Dow Jones Newswires.

This in turn triggered concerns over the country's foreign-currency liquidity situation, Oh said.

However, analysts said the selling in local stocks seemed excessive as the KOSPI has been outperforming global peers since early this year.

Renewed concerns over the global financial system, along with signs of a sharp economic worsening in leading countries AFP

Hyster 32 ton for Colombo South Port project

Allied Trading & Engineering (Pvt) Ltd, dealer for Hyster in Sri Lanka delivered 1 x Hyster 32 Ton Truck to Hyundai Engineering & Construction Co., Ltd, the contractor for the Colombo South Port Expansion Project and is being used at the concrete and quarry plant in Wadduwa to load/un-load Concrete Blocks. The Concrete Blocks are transported to the Project in Colombo site by barge.

The Hyster H32.00F is equipped with Cummins QSC 8.3 Industrial Engine, Turbo with Intercooler, Rockwell Drive Axle, Hyster Steer Axle and Spicer Off-Highway Transmission.

The Port Commission used Hyster Trucks at its inception and after many years Hyster Truck will be used for port related work.

Hyster big trucks are manufactured at the Nijmegen Plant, with an investment of $ 5.6 million in the demand flow technology production line and $ 3 million in product testing facility, Nijmegen now covers the total spectrum of the Big Truck capability.

Allied Trading & Engineering (Pvt) Ltd was established in 1995 having been appointed the Hyster Dealer for Sri Lanka. Rajah Abeyasinghe CEO who counts over 30 years experience in Construction Machinery/ Material Handling business personally supervised the delivery of the Truck to Jong Gon Jung of Hyundai Engineering at the Wadduwa job site.

Aramex wins Environment Award

Global logistics solutions provider, Aramex, received the 'Environment Award' at the 20th Annual Awards Ceremony of the British International Freight Association (BIFA) at an event held in London.

Aramex is the first winner of the BIFA Environment trophy, a category introduced in 2008. The award recognizes Aramex's ongoing commitment to environmental sustainability as the company actively identifies and invests in eco-friendly practices.

The Panel of Judges congratulated Aramex on its outstanding achievement, commenting: "A successful business is always admired.

However, what should be respected is a company that is leading the way and showing its commitment to our environment. We are all responsible for looking after our planet and Aramex has shown that we can balance running a successful business whilst working towards reducing the company's carbon footprint."

Aramex CEO - Europe, Camille Nasrallah, said: "We believe it is vital to apply green business solutions to help preserve our environment. This commitment to sustainability, which is an integral part of Aramex's corporate culture and values, has helped Aramex become a well-known leader in eco-friendly practices. Our environmental stance serves as a catalyst for Aramex to eventually gain both strategically and financially."