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| Tuesday, 23 November 2004 |
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Major potential in Lanka: Indian Lanka IOC to invest $ 15 m on oil plant in Trinco by Shirajiv Sirimane Indian Lanka IOC limited (LIOC) would invest US $ 15 million on an oil installation plant in Trincomalee. According to the Managing Director / CEO M. Nageswaren the company sees a major potential in Sri Lanka to make this investment. Speaking at the media launch of the Rs. 3 to 3.6 billion Initial Public offering (IPO), he said that over 150 ships sail daily and most of them prefer to refill in Singapore. However, Singapore is somewhat expensive and the waiting time is very much more. In addition some ships have to divert off route to sail to Singapore. In contrast Trincomalee is a more viable option for them and this was the reason they decided to invest in Trincomalee which is one of the largest natural harbours in the world. "If we get 10 percent from the ships to Sri Lanka the potential is unlimited," he said. The IOC is planning to convert Sri Lanka to a bunkering hub and which would also cater to Malaysia and the Maldives. He said that this idea was not new as most of the ships did refuelling from Sri Lanka. "However, after the 1983 violence most of the vessels were reluctant to come to Sri Lanka," he said. When asked if they had second thoughts in investing in Sri Lanka and especially in Trincomalee he answered in the negative. "We have confidence in the peace process," he said. He said that there is also potential in the Aviation industry and this is another area they wish to enter in an aggressive manner. "The potential in this industry is underutilised," he said. The CEO said that the Sri Lanka Gas market is being dominated by Shell mainly because the other two suppliers are far behind. Some of the gas suppliers are sharing the same cylinder and this shows that there is no clear policy and legal framework. "However, we have decided to enter the Sri Lanka domestic LPG market in a very big way as we have the advantage of owning retail outlets," he said. The IOC has given a new look to the petrol station concept and has turned them into mini market style outlets seen in developed countries. "We have changed the old concept and keep on redeveloping the stations and by 2008 there would 320 modified filling stations," he said. Vice President Lanka IOC S. Srinivasan said that they have taken great care to develop the oil market in Sri Lanka. "We have installed new machinery in Sri Lanka and some of the machinery imported from Europe is not even found in India," he said. He said that LIOC expects to use the proceeds of the IPO to renovate retail outlets, build a lubricant blending plant and renovate tanks at the Trincomalee tank farm. |
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