JKH short-listed for Chennai Container terminal project
Final bidder to be made known soon:
Hiran H.Senewiratne
John Keells Holdings (JKH) was short-listed with 40 other listed
global giants who bid to build a container terminal at Ennore, Chennai
in July 2008, Lanka Securities (Pvt) Ltd sources said.
Industry sources said with the short-listing of JKH among other four
major construction companies out of 40 other bidders, JKH is likely to
obtain the contract to construct the project with Indian Rs 13 billion
to handle 1.5 m TEUs. The final bidder for the project will be made
known shortly, sources said.
If clearance for the project is received it would be the largest land
reclamation undertaken in the country and will result in the creation of
the proposed Colombo Port City.
However, work on the project is very slow and still in the
documentation stage.
JKH’s biggest revenue comes from handling this sector in Sri Lanka.
If this contract is awarded to JKH they will be able to manage the
entire port in Chennai, which will bring substantial revenue to the
company, Lanka Securities (Pvt) Ltd., sources said.
The company is also in the process of strengthening its presence in
the Northern and Eastern parts of Sri Lanka as construction activities
have begun.
The company recorded a substantial 44 per cent Year on Year decrease
in its third quarter 09 net profit to Rs.764.9 million, resulting in a
19 per cent Year on Year decrease in its 1-3Q08 net profit to Rs.2,609.9
million.
This is mainly due to the non-recurring charges (additional taxes and
write offs) related to the Supreme Court order on Lanka Marine Services
(LMS).
However, the decrease in 3Q 2009 can be directly attributed to the
loss of revenue from LMS with the application of a different business
model.
One off charges related to LMS in 1-3Q 2009 amounted to Rs.904
million which consists of Rs.186 million relating to additional customs
duty, write offs and costs associated to vacating the port premises;
Rs.46 million for stock losses; Rs.519 million on additional taxes and
Rs.153 million for payment to employees.
The group revenue decreased 16 per cent Year of Year to Rs.9,307.3
million in 3Q 2008 and recorded a marginal 7 per cent Year on Year
growth in 1-3Q09 to Rs.31, 122.4 million. |