CDL bags shipbuilding contracts
Sri Lanka has forayed into new avenues in shipbuilding with Colombo Dockyard PLC (CDL) bagging the first ever Japanese order to construct a vessel for telecommunication cable laying purposes of 5000 tonnes at a cost of US$53 million.
Selected over a Japanese shipyard, the Kokusai Cable Ship Co. Ltd. in Japan preferred CDL latest designs compared to the 25 year-old ones still worked on in their country, CDL Managing Director (MD)/CEO D.V. Abeysinghe told the media on the sidelines of the event organised to lay the keel of the ship signifying the commencement of the construction work on the contract. This vessel will be delivered in March 2019.
The latest ship designs adopted by the CDL from Norway were an easy attraction for the ship owners and also since the Japanese firm Onomichi owns 51 per cent of the shares in CDL.
CDL, which has been working on shipbuilding contracts from clients in Saudi Arabia, Maldives, India, Singapore, Myanmar and Japan is eyeing another contract in January next year details of which could not be disclosed, the MD said.
Mr. Abeysinghe noted that there was a reduction in demand for vessels’ construction for the oil and gas dredging due to the current oil crisis.
He pointed out that in future CDL would be engaged in float repairs whereby repair work would be carried out in mid sea.
Moreover, following an order from the Ceylon Electricity Board (CEB) they would be looking at engaging LNG fuel as an environmentally friendly fuel.
CDL has for the second time lost chances of obtaining increased land area in the Colombo port for expansion in the wake of a number of steel projects for which the company has allocated Rs.200 million.
Other orders on the cards are two ships on order for the Sri Lanka Coast Guard that would be financed by Japanese banks at a total cost of $103 million, Mr. Abeysinghe said.
Despite continued losses, CDL is expected to pick up from 2018 with the company identifying ways of mitigating their losses and show an improvement by engaging in heavy engineering and ship repairs.
He also pointed out that CDL was training 350 youth annually to enter the job market with the required skills from this sector.
During the ceremony held at the Dockyard Yard Workshop the keel was laid by Prime Minister Ranil Wickremesinghe who was the chief guest on the occasion.
He insisted that Sri Lanka’s growth strategy was expected to pull through by 2025 with the latest shipbuilding contract, first ever from Japan, which is a clear indication of economic confidence by investors.
Mr. Wickremesinghe said that this contract clearly highlights “the confidence in Sri Lanka and the CDL is responsible for a part of it.”
The Premier noted that once the years 2018 and 2019 are through the country should be able to return to economic normalcy by 2025.
He noted that the country’s growth strength is achieved through contracts such as these and envisioned plans to establish ports similar to the Port of Singapore and believed the developments of the ports and airports in Sri Lanka would rightly align itself as it is positioned to achieve a hub status.
Ship owners Kokusai President Takaaki Anraku said that theirs was the first company to install a submarine telecommunication cable in the Pacific Ocean and have today evolved to expand further.
He explained that the new cable ship would help them continue their cable laying operations and expand their business in this area.