Shipping

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 year 2010.

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 orders.

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

CE wins Quality awards

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 activities.

Toll Global Forwarding signals worldwide ambitions and BALtrans integration

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.

Randall Kelly

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 were present.

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 welfare fund.

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.