New strategy to boost Colombo Dockyard income

Harshini PERERA

The International Convention for the Safety of Life at Sea (SOLAS) rules are being implemented and single hulled tankers have been phased out. This would result in a large fleet of vessels going out of service by the year 2010-12.

This has changed the mix of vessels that have been patronising the Colombo Dockyard. Some of the double-hulled tankers are too large to be taken into the dry dock.

To address the issue, Colombo Dockyard PLC (CDPLC) has been gradually shifting its strategy focusing on Offshore Support vessels, Dredgers and passenger vessels. CDPLC attracted world renowned dredger operators such as Van Oord, Holland, Dredging International, Belgium, Boskalis, Holland and Hyundai, Korea along with specialist offshore support vessel operators, namely Bourbon Offshore, France, Tidewater, USA, SBS Marine, UK, Great Offshore and Greatship from India.

The volume of work generated in the offshore support vessels and the dredgers are high and needs a skilled and dedicated workforce. In keeping with this strategy the drydock accommodated 3-4 small vessels simultaneously, as against one big tanker, General Manager (Commercial), Colombo Dock-yard PLC, Kithsiri Nayakarathna told Daily News Business.

He said that development projects such as the South Port Project have also provided repair opportunities. The yard has been providing essential repair and maintenance facilities to many dredgers, tugs and other work boats deployed on the project. Oil-exploration in the coast of Sri Lanka will begin early next year, which will also attract more offshore vessels to our region.

“We have targeted offshore support vessel dredgers and passenger vessel sectors that have been least hit by the global economic recession. Our main client base is from vessels (Indian and foreign owned) that operate in the coast surrounding the Indian Subcontinent. Given the continuous development and oil exploration work taking place (East and the west coast of India) this segment is expected to grow”, he said.

Colombo Dockyard PLC has been the service provider for many Indian vessels and foreign vessels on the coast of India. The geographical situation of Sri Lanka is an advantage to a wide market. Dockyard’s shipbuilding order book is fully booked till the end of 2012 resulting in the portfolio mix being 50-50 percent in shipbuilding and ship repairing, he said.

He said that the first passenger vessel built in the Colombo Dockyard PLC will be handed over to the Government of India next month.

This vessel can accommodate 250 passengers with cargo facilities. The project value is US $ 18.3 million. The Colombo Dockyard PLC has targeted a turnover of over US $ 110 million this year.