News

Unique payment schemes for luxury apartments

A unique payment concept for luxury apartments has been introduced to Sri Lanka by Premier Pacific International (Pvt) Ltd (PPI), one of the latest entrants into the local property development sector, with the launch of the company's first venture in the country.

The payment scheme Pacific 2001 offered by the developer allows residents to make an initial reservation deposit of 15 percent and pay the balance on the execution of the property deed. "Residents only have to pay for the apartment just before they move in, and not throughout the period of construction," said PPI's Executive Director Neil Perera , in a press release.

Another unique option is the discount which is offered on any payments made in advance. PPI's strong equity base enables the company to fund the entire project without depending on funding through advance payments made by customers.

The company also offers in-house bridging finance facilities to customers and assists in obtaining loans from banks at the most competitive interest rates.

Pacific 2001 comprises 22 luxury apartments and three penthouses housed in seven floors which also includes a roof-top garden, indoor recreation centre and ground level parking.

The apartments ranging from two to four bedrooms offer the best value for money and are easily the most spacious in size in comparison to comparable accommodation, he said. Ringed by uncongested dual carriageways, Pacific 2001 is located on an area which is unhampered by security blocks and is within a few minutes drive from the commercial hub of the city, schools, hospitals and shopping malls. "We provide the best strategic location in the city for busy executives who need to be in close proximity to their offices, but who also want to enjoy peace and tranquillity at home," Mr. Perera said. "Pacific 2001 is currently the only luxury apartment complex which actually overlooks the Viharamahadevi Park".

Customization of the apartments is another feature available to buyers. In addition to choosing from a range of fitted pantry cupboards, tiles and light fittings, customers can even restructure floor areas of rooms within the overall structure. "An apartment is not a home unless it caters to customers' needs," he said.

Bartercard records Rs2.9 million in trade at Trade Bazaar

Sri Lanka's business bought and sold goods and services worth nearly Rs. 3 million on barter in just six hours last week at a Trade Bazaar conducted by Bartercard Lanka, the country's only trade exchange.

A total of 402 barter transactions had been recorded when trading closed for the day at this event, the fourth of its kind organised by Bartercard, a company release said.

More than 125 members of Bartercard participated in the fair, which comprised 42 stalls displaying a wide array of goods and services.

"The enthusiasm shown by members in trading was an indication of the acceptance that barter trading has become a viable alternative to cash transactions," said Johnny De Saram, Managing Director of Bartercard Lanka. Among the diverse range of goods and services available to members of Bartercard on trade were computers, home theatre systems, gems and jewellery, photography services, garden accessories, roofing tiles, bathroom accessories, educational services, interior decorating services and catering services. Bartercard which completed three years of operations last month, has a membership exceeding 850 businesses and has processed more than 22,000 barter transactions with a trade value of Rs. 206 million during this period.

Orient Lanka spends Rs.28 million on upgrade of Duty Free Shops

Orient Lanka Limited recently refurbished the company's arrival and departure duty free shops at the Bandaranaike International Airport, at a cost of Rs 28 million, a company release said.

The Company, which operates three shops at the arrivals terminal, departures terminal and the transit area of the airport, markets all international brands of liquor, tobacco, fragrances and confectionery.

The refurbishment has resulted in an increase in floor area by 25 per cent in the departure shop and 15 per cent in arrivals. The company's investment in installing new racks, advertising signboards, a new lighting system and other fixtures, has upgraded these outlets to international standards in duty free shopping, Orient Lanka's General Manager Neil McLeod said.

"We are proud to have invested in the improvement of our shops at the airport and this is a confirmation of our commitment to Sri Lanka. We are aiming for our shops to be the best in the region, and to be able to provide a customer shopping experience second to none", he added. Orient Lanka the leading foreign liquor marketer in Sri Lanka, is a subsidiary of Alpha Retail, a division of Alpha Airport Group Plc. Alpha Airport Group is a multinational company operating in Europe, USA and Asia, and generates international revenue of over US$ 1 billion per annum.

Emirates honours top travel, cargo agents

Emirates, the international airline of the UAE, last week honoured six travel and cargo agents who contributed the highest revenue to the airline.The six were presented with framed gold replicas of the traditional dhow of the UAE, in appreciation of their support to Emirates, a company release said.

The top passenger agent for the year was Mackinnons Travels, while Roton Vander Freighting (Pvt) Ltd, received the award for the top cargo agent for the eighth consecutive year.

Emirates Area Manager Sri Lanka and the Maldives Tissa Bibile, who delivered the welcome address at the ceremony said: "Our theme, 'An award winning flight to remember' will set the tone for what all of us together, will strive for in the new millennium: Growth without compromising quality."

He said Emirates which began in 1986, with two-leased B727, 120-seater aircarft, operates one of the most modern fleets in the world today.

The alirline now serves 48 destinations and would between 2002 and 2003, take delivery of six Airbus A340-500s, the world's longest-range aircraft that can fly from Dubai to Los Angeles, non-stop with a full playload, Mr Bibile said.

Epic Lanka enters into partnership with Gemplus

Sri Lanka's market leader in Secure Electronic Payments Industry Epic Lanka (Pvt) Ltd., the International Business Partner for Verifone Inc., USA, a division of Hewlett Packard Corporation recently entered into a Business Partnership Agreement with Gemplus Technologies Asia Pte Ltd. Epic Lanka is the "first" organization in South East Asia to receive the VAR Partnership Certificate of Gemplus Inc., - the world's largest Smart Cards supplier for the Secure Payment, Transaction Automation and Personal Identification Solutions Industries. Epic Lanka being the only "Gemplus Technology Partner" and Member of the "Gemplus Expert Network" in Sri Lanka will integrate and promote Gemplus Smart Cards and related products for Secure Payment and Transaction Automation Solutions.

Over 100,000 Gemplus Smart Cards are currently being used by People's Smart Cash Programme of People's Bank, SmartNet Lanka Ltd., - the independent islandwide e-Commerce Infrastructure and Network Provider and Dialog GSM Mobile Phone Operator in Sri Lanka. Epic Lanka is the e-Commerce Technology Partner and Service Provider for both People's Bank and SmartNet Lanka Ltd.

Jardine Fleming tops Reuter Survey

Jardine Fleming Securities has been ranked first by fund management group for broker research product and service in Hong Kong and Sri Lanka. Merrill Lynch (Asia Pacific) and Warburg Dillon Read came second and third in Hong Kong, while CT Smith and Lehman Brothers did the same in Sri Lanka, a news release says.

In Indonesia, JF came second following CLSA and beating Indosuez WI Carr, JF also came second on research on food, beverages and Tobacco sector.

JF's research product and service also came third in countries including Singapore, South Korea, Thailand.

The Fleming Group has been ranked second on the emerging global market for economic research. Fleming Group - No. 3 in overall ranking of broker research products and services by fund management group.

Jardine Fleming Securities - No.4 in fund management group ranking of broker research products and services - Asia.

Fleming Group - No. 3 in fund management group ranking of brokers' overall product and service - Global.

Jardine Fleming Securities - No. 3 in broker execution by buy-side trading desks - Asia.

Jardine Fleming Securities - No. 2 in ranking of market-making/principal execution capacity by buy-side trading desks. The survey this year has received responses from some 73% of the US$778 billion equity market value of the 1,104 largest corporations in 30 countries worldwide. Participants in the survey cover US$162.4 billion of equity funds invested in global emerging markets.

Lanka's version of "The Fortune 500"

The LMD 50 for 1998/99 - the definitive ranking of Sri Lanka's lending listed companies - will be published in LMD's November issue. The LMD 50 is ranked on the basis of turnover; and profits, assets, shareholders' funds, market capitalisation, and share profiles. The ranking system is identical to that used by Fortune and Asiaweek in compiling "The Fortune 500" and "The Asiaweek 1000" respectively, a news release said. John Keells Holdings (JKH) is the number one company in The LMD 50 for the second year running. JKH is also number one in profits, shareholders' funds, and market capitalisation. Rounding off the top five are: Hayleys, Hatton National Bank (HNB), Central Finance, and Seylan Bank, in that order. HNB is the number one company by assets.

Greenhouses from Greenlink

Greenlink Enterprises Lanka (Pvt) Ltd have been appointed agents in Sri Lanka and Maldives for marketing Canadian Patented Portable Hydroponics Greenhouses.

"The greenhouse ensures the safety of your crop and protects it from environmental hazards such as insects and pollution," Manager Administration, Greenlink Enterprise Lanka (Pvt) Ltd, Richard Hay said.

The 300 square foot self contained greenhouses are made of metal or fibre glass.

The greenhouse functions with the aid of drip irrigation and uses solar panels to collect sunlight.

This innovative product was invented by Mr Kashyup Bhatt and has been marketed in the United Kingdom, Trinidad, Vietnam and Philippines.

The product will be marketed to vegetable exporters and hotels in Sri Lanka.

Dipped Products plantation losses curb profits

Losses from the plantation sector continued to exert a downward pressure on the profits of Dipped Products Limited (DPL) for the half year ending September, the company said, in a news release.

According to the DPL Group's half-yearly accounts released this week, profits have declined dramatically from Rs. 133 million in the first half of the 1998/99 financial year, to Rs. 7 million this year.

The turnover of the Group including both glove manufacturing and plantation divisions has declined 13 per cent from Rs. 1125 million to Rs. 985 million in the period under review. A spokesman for the company explained that significant declines in profit and turnover were chiefly attributable to the poor performance of the plantation industry.

DPL's plantation sector subsidiary Kelani Valley Plantations Limited (KVPL) has reported a loss of Rs. 36 million between January and June this year compared to a Rs. 119 million profit in the same period last year. This was mainly due to low prices of tea and rubber in the first half of the calendar year. (DPL's consolidated accounts for April-September include the results KVPL for January-June).

However, improved prices especially for tea in the second half of the year, has led to the plantation company improving its performance and the results for the period January to September 1999 (where losses have declined to Rs. 13 million) will be reflected in DPL's results for the nine months ended December 31, 1999, the spokesman said. He said the tax of the Group had increased from Rs. 13.4 million to 15.8 million, as a result of a reversal of Investment Tax Allowance claimed during the previous year amounting to Rs. 4.4 million. This adjustment was necessary as the manufacturing companies of the Group are expected to be granted "Thrust Industry" status with a 10-year tax holiday during the current financial year. A further reason for the increased tax was on account of Rs. 1.8 million-dividend tax paid by Venigros Limited, one of DPL's glove manufacturing companies. These taxes are not recoverable by the Group.

The Group expects the plantation company to improve its performance in the last quarter on the back of good prices for tea, the spokesman said. He noted that the rubber prices too have picked up from dismal levels in the first and second quarters. The manufacturing companies of the Group have continued to maintain turnover despite the strong competition from South East Asian manufacturers and this division is expected to maintain its performance in line with the previous year.

Sri Lanka Paint Manufacturers Association inaugurated

The inaugural meeting of the Sri Lanka Paint Manufacturers Association was convened on November 10, 1999. Lal De Mel, Managing Director/ General Manager of CIC Paints (Pvt) Limited and President of the Federation of Chambers of Commerce and Industry of Sri Lanka was elected President of this Association. Speaking at the meeting he explained that the need for an association of this kind had been felt for quite some time. "However, an immediate need arose subsequent to our being invited to attend the Asian Paint Industry Council Meeting held in Malaysia on November 18 and 19 at which the Sri Lankan paint manufacturers needed to have an association to represent our industry," he said. Additionally, an association creates one representative body which could negotiate on behalf of the industry when necessary, providing added strength to the industry as a whole. "Associations carry more weight than individuals in negotiations of any kind - and today we recognize the need for such an association," said De Mel adding "A well-represented association also facilitates compiling of statistics, obtaining accurate data regarding the size of the paint market and the rate at which it is growing", the company release said.

American Eagle completes 15 years of service with AA

American Eagle, American Airlines regional airline associate, commenced its 15th year of service on November 1. The domestic carrier has grown from its modest beginnings of 70 daily flights to 8 cities, to its present day operation of more than 265 aircraft to 142 cities.

Originally established to supplement Americans' short haul destinations out of hub cities, American Eagle now constitutes an integral part of AA revenue and its intensive network spanning the entire United States, Canada, the Caribbean and the Bahamas. Eagle's existing fleet of Turboprop aircraft is presently being strengthened and will eventually be replaced by regional Jet aircraft, a major step up in comfort, convenience and overall passenger satisfaction. Many of the services offered by American are also offered by Eagle - like pre-reserved seating, advanced boarding passes, 2-piece baggage allowance, and mileage credit on AAdvantage, American's frequent flyer programme.

Walkers Tours Airline Division, a subsidiary of the John Keells Group represents American Airlines and American Eagle in Sri Lanka.

Liberia out of IMO Council; Singapore retains seat

Liberia has lost its place on the Council of the International Maritime Organization (IMO).

The world's second largest flag state was one of four countries voted out of the council. Algeria, Poland and Tunisia also went, to make way for Bahamas, Malta, Morocco and Turkey.

But Singapore stayed on in the council to which it was first elected in 1993.

Liberia has been known to be very keen to keep its seat on the council and some observers had linked its bid to stay with its delay in paying IMO dues for this year, implying that Liberia was flexing its financial muscles at a time when IMO is under considerable financial strain.

Liberia has however agreed to pay by April 2000 and would not be in default.

The vote will add to concerns that the Council does not reflect the make up of the main contributors to IMO's budget. On the other hand only Liberia, out of the top 10 flag states by tonnage, is not now represented on the IMO Council.

The result of the vote will however please the Maritime and Port Authority of Singapore (MPA) which now oversees the world's seventh largest fleet.

Telecommunications and Information Technology Minister Yeo Cheow Tong at IMO's London headquarters was indication of the importance Singapore places on having its voice heard at the UN specialist agency.

Mr. Yeo was quoted as saying that improvements in the port's infrastructure and support services could be the key to winning fresh support for the flag, which continues to grow.

Policies were to be put in place to bring more shipowners to Singapore, allowing the Republic to become a true maritime centre and not just a hub port.

Norasia launches Asia-Pacific South West services

Norasia is pleased to announce the commencement of a new high performance Transpacific Service, that will establish itself as the Transit Time leader on the Asia-California route.

With the deployment of four newly built and state-of-the-art ships racing at 25 knots, the service will commence in Yantian and Hong Kong on 4th December, and will give a transit time to Long Beach of just 12 days.

This service comes in the wake of Norasia's successful entry into the Pacific Northwest with the APX service launched in May of this year. It may be recalled that this service established a record of a 7-day transit cross Pacific and set a new benchmark in serving Hong Kong to Vancouver in just over 10 days.

Norasia will also be making substantial structural enhancements to their Management and Agency in the United States and Canada. With the nomination of Andy Russell as head of their activities in North America, Norasia has confirmed its intent to be a long-term participant in transportation in this continent. Regional Managers with operations and commercial portfolios have also established positions there.

Inchcape Shipping Services has been confirmed as Norasia's agents in North America and a dedicated core team has been set up with key representatives to handle the business from Norasia's 3 services touching the continent.

In keeping with the highly competitive demands of manufacturing in Asia, distribution in the USA and high value commodity requirements, weekend closings in Asia along with Thursday arrivals in Long Beach ensure that Norasia's customers have access to local containers on Friday morning.

The new Service calls Yantian, Hong Kong, Keelung, Long Beach and Oakland, while the APX Pacific Northwest Service will add calls at Yantian and Seattle, possibly later also at Portland.

Norasia makes a statement with the commencement of this new initiative on the Pacific to serve a Global client base and be a partner in the supply chain management and logistical trends of the new millennium.

A strategy of speed, point-to-point niche marketing, and dedication to customer service are endorsed.

The next generation of Norasia High Speed Ships of 40 knots capability is on the drawing board and will further establish Norasia's unique position in a market driven by transit times and increased value of goods on sea.

With the inauguration of this new service, Norasia line's local agents M/s NorLanka Shipping (Pvt) Ltd., have shifted their office to a new premises at 6th floor of Commercial Bank new building at No. 1, Union Place, with a view to provide better facilities to the customers.

The opening ceremony of the new office took place on November 24, 1999 and a few well-wishers also participated to mark this event.

FLT claims worldwide leadership in container handling

Container handling machines (FLTs and reach stackers) are very much the bread and butter of Fantuzzi Reggiane's range and forms the basis of its worldwide sales and distribution network.

The company pioneered the 6-10 empty container handling Front Lift Truck (FLT) and now claims worldwide leadership in this market. In 1990 it entered the reach stacker market where it quickly achieved the position of second largest supplier, with the help of innovations such as full 40ft container capacity in the second row and six high stacking for both empty and loaded containers.

Last year the company delivered almost 180 loaded container handlers (125 reach stackers and 54 top loaders) and nearly 150 empty container handlers, including the largest ever order for container lift trucks - 37 delivered to the Turkish Port and Railway Authority.

While Fantuzzi Reggiane may not be as big in general industrial applications for lift trucks, according to the company's own statistics it is now manufacturing more machines dedicated to container handling (both empty and loaded) than any other supplier. "This tells you more about our strategy," says managing director Davide Bertozzi. "In this lift truck sector we are highly focused on the port and intermodal user market. But we are offering to this market a very wide range of equipment. Even though this costs us in terms of market share in other industrial products, by shaping our organisation to suit the requirements of port and intermodal users we can offer a comprehensive and complementary service."

Reach stacker orders for this year have already hit 130 units and the production plan for the whole of 1999 is about 160. The popular ContStacker range has been improved and relaunched as ContStacker Formula. This range now comprises six basic models of which the top of the range CS45ks is capable of stacking five 45 tonne containers in the first row, 4 x 35 tonnes in the second and 3 x 18 tonnes in the third. The ContStacker Formula I range (CS45ks/CS45kl) is claimed to have a higher hoist speed (0.35m.sec at full load) than any other reach stacker on the market. This speed is achieved by the use of the company's 'smart hydraulic system' that recycles pressure oil according to demand.

A standard feature of the range is the Logicontrol on-board computer system. Developed by Fantuzzi Reggiane's partsubsidiary GEA, Logicontrol monitors all function and performance of the machine's most important components. This greatly enhances the safety of the operator's working environment as well as making the control of the machine easier.

Although there are exceptions, Bertozzi sees a clear division between the equipment needed to serve the loaded and empty handling markets; the basic divide is FLTs for empty handling and reach stackers for loaded containers.

Fantuzzi Reggiane is now one of two dominant suppliers in FLT market for 6/7/8 high empty stacking. The market for these machines is very large with potentially many providers, says Bertozzi, but it is also a question of who can give the total service, because the empty container machine is an accessory to other machines. Not surprisingly he feels that Fantuzzi Reggiane offers a level of service second to none in this sector.

"Our forecast is that sales, which rose rapidly in the past decade will now level out into the early years of the next millennium. After that we expect more rapid growth thanks to the general increase in containerisation. The FLT is the machine of the future for empty handling not the reach stacker."

As for loaded container handling, Fantuzzi has been among the pioneers of increased stacking for loaded boxes. Five high stacking is becoming increasingly popular and the company is aiming to win a bigger share of this market.

Hanjin HI receives orders for four containerships

Hanjin Heavy Industries of South Korea has received orders to build two 1,200-TEU containerships for Germany's Reederei B. Rickmers and two 1,600-TEU containerships for Vroon BV of the Netherlands.

The Korean shipbuilder and the shipowners were to sign formal contracts on the newbuilding projects late last week.

Hanjin HI, traditionally strong at building large-capacity containerships, has been enjoying brisk inflows of orders for smaller boxships of the 1,000-TEU class since the beginning of this year. It has so far received orders for 14 such ships since the turn of the year, including the four in the latest deals.

The German shipowner ordered four 1,200-TEU containerships plus four on option from Hanjin last spring and, when it ordered two more 1,200-TEU vessels last June by exercising the option for two of the four, it obtained another option for two more 1,200-TEU ships.

The two containerships in the latest deal are those involved in the June option and will be delivered in the third quarter of 2001.

The latest order brings to eight the number of 1,200-TEU containerships it has so far ordered from Hanjin.

The Dutch shipowner, meanwhile, ordered two 1,600-TEU boxships plus two on option from Hanjin last June. And when it exercised the option for the other ships in August it obtained an option for two more 1,600-TEU ships and exercised this option in the latest deal, which calls for their delivery at the end of 2000. Including the latest order, the number of 1,600-TEU containerships the owner has ordered from the Korean builder totals six.

Hanjin plans to build the 1,200-TEU containerships at its Ulsan shipyard, which it took over from Dong Hae Shipbuilding, and the 1,600-TEU ships at its main works in Pusan. The divvying up is part of its efforts to increase its newbuilding productivity in the serial construction of same-type ships at the same dockyards.

The prices of the containerships showed an up-trend each time the European shipowners exercised the options, with those on the 1,600-TEU ships in the latest deal estimated at around $24 million each, up nearly $2 million from the time when the Dutch owner ordered the first two ships.

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