Colombo Dockyard Ltd:
Net profit up 32 percent
Sri Lankan ship builder, Colombo Dockyard Ltd (CDL)'s net profit
increased 32 percent to Rs. 1.5 billion in 2008 compared to the previous
year following the benefits of the shipping boom earlier in the year.
The company's revenue increased 26 percent to Rs. 11.2 billion in the
year ending December 31, 2008, according to the company's annual report.
However ,shipping industry analysts said the boom in shipping in the
last few years was now over and that the industry had entered a cyclical
downturn characterised by an over supply of vessels and low earnings for
owners and charterers. But CDL performed well despite all odds.
Many shipyards in the region suffered setbacks but the orders CDL
received stand confirmed without a single cancellation. Colombo Dockyard
has sufficient work to move forward with the same momentum till end of
According to Chairman Shinichi Tatebe the yard's revenue target of Rs.
10 billion set for 2011 had been achieved two years ahead of time.
Although the yard has a full order book, analysts said it might be
affected by the slump in shipping.
"From January to June the business boomed, and we received new orders
for six anchor handling tugs and two passenger vessels along with many
other ship repair business. But since July due to the world economic
turmoil there was an unexpected and drastic drop," he told shareholders
in the annual report. The yard, which books profits on delivery of
vessels, last year built and delivered two anchor handling tug supply
vessels (AHT) for a subsidiary of Greatship (India), a wholly owned
subsidiary of India's The Great Eastern Shipping Company. The third tug
for Greatship was delivered in February this year with a fourth also on
order, along with four multi-purpose platform support vessels also for
Greatship and two passenger vessels for the Indian government.
A slow down in global trade and oversupply of tonnage has caused ship
charter and freight rates to crash, prompting many lines to cancel
orders for new vessels and postpone others, leaving yards with dwindling
Repair work, which has been more profitable for Colombo Dockyard than
new buildings, could also be hit as the economic slow down erodes
earnings of ship owners, forcing them to put off dry dockings.
However, tough new safety standards and anti-pollution rules might
act as a counter to any temptation of ship owners under pressure to rein
in spending by cutting back on maintenance.
CDL, which is majority owned by Japan's Onomichi Dockyard, has won
orders from Indian customers and has shifted to building specialised
vessels such as anchor handling tugs in recent years. HHS
Colombo Engineering Enterprises won the Sri Lanka National Quality
commendation certificate at the Sri Lanka National Quality Awards
program conducted by the Sri Lanka Standards Institution recently.
Colombo Engineering introduced modern ship repair technology to Sri
Lanka and is rated as one of the most efficient marine organisation in
Sri Lanka today.
The Sri Lanka Quality Awards are based on the Malcom Baldrige
National Quality Awards of the USA standards which has seven evaluation
criteria, a 1,000 point scoring system and five level judging process on
leadership, strategic planning, customer and market focus and
measurement, analysis and knowledge management.
The national quality awards are created for the purposes of -
promoting awareness of quality as an increasingly important element in
competitiveness, understanding of the requirements for performance
excellence and recognise organisations that excel in quality management
Toll Global Forwarding signals worldwide ambitions and BALtrans
Toll Global Forwarding (TGF) has completed the integration of
BALtrans Logistics Worldwide and will use the new Asian forwarding and
logistics operations as a platform to strengthen the TGF network in the
Middle East, South Africa, Europe and North America.
Toll Holdings of Australia acquired BALtrans Logistics in early 2008
and completed the re-branding of the company as Toll Global Forwarding
on February 27, 2009.
Toll and BALtrans had highly complementary businesses in terms of
strategy, capability, customers and industry segments with
growth-oriented cultures and minimal network overlap said, Managing
Director Toll Global Forwarding Lanka (Pvt) Ltd Randall Kelly. He said
the 're-branding of BALtrans' global offices to Toll Global Forwarding
is a key milestone for Toll's ambition to establish its own global
presence. With a well established network of freight forwarding
professionals in 65 company owned offices across 26 countries in Asia,
Australia, The Americas, Europe, Middle East and Africa.
Toll Global Forwarding can provide a comprehensive portfolio of
logistics products and solutions to address our customers'
requirements," Kelly said. Toll is the Asian region's leading provider
of integrated logistics services, generating annual consolidated revenue
of AUD$ 5.6 billion and operating an extensive network of more than 700
sites in 45 countries across the world.
Toll and BALtrans are an excellent fit, with no overlap he said.
Lankan Seafarers fund launched
The National Union of Seafarers' Sri Lanka (NUSS) in affiliation with
the International Transport Workers' Federation (ITF) launched a welfare
fund for the benefit of the Sri Lankan seafarer community.
This is the first time that a trade union set up a welfare fund
affiliated an international union. The inauguration ceremony was held on
February 23 at Hotel Renuka. General Secretary (ITF) David Cockroft,
Secretary Ministry of Labour Relations and Manpower Mahinda Madihahewa,
Deputy Secretary ITF Asian/Pacific Mahendra Sharma, Director ILO Tine
Staermose, Resident Representative Joachim Schluetter, Representative
Solidertu Center/Washington Friedrich Ebert Stiftung and a large
gathering from the shipping trade, trade union leaders and NUSS members
One of the highlights was the participation of the General Secretary
of an international workers' union, General Secretary of the
International Transport Workers' Federation (ITF) David Cockroft
outlined the support extended to the Sri Lankan Seafarers' to-date
amounting to US$ 700,000 paid in the form of medical expenses and back
pay wages to local and foreign seafarers and the various activities
conducted. He said that those affected as a result of the tsunami were
helped by providing houses and buses. He commended efforts and
contributions of the ITF Inspector and NUSS Secretary for Sri Lanka
Ranjan Perera. In 2009, the International Labour Organisation (ILO) will
mark its 90th anniversary. In recognition of this NUSS set up this
By way of ratification of the ILO Maritime Convention of 2006 and
Seafarers Identity Document the Government of Sri Lanka hopes to
strengthen protection and welfare of Sri Lankan seafarers which is also
to be implemented soon.