Chairman's Message
Dr. Priyath B. Wickrama
Chairman
Our Core Business & Operation
Year 2008 has been successful in
respect of our core business of
cargo handling and vessel operation
and recorded operating profit. Our
container volumes grew as per our
expectations and total volume
handled in the port of Colombo was
3.69 million teu's. Market &
business development strategies that
were adopted helped us to increase
our container handling throughput by
6.9% amounting to 126,293 teu's more
than the previous year. Three new
Terminal Service Agreements were
signed with shipping lines namely,
Emirates, Evergreen and Zim &Gold
Star lines whilst attracting six
(06) shipping lines including two
main lines calling at our terminal.
The results of our efforts by way of
improving container yards and
replacing the equipment would be
seen in years to come as
productivity levels will continue to
rise. We ,have maintained cordial
relationship with trade unions and
therefore there was no interruption
for vessel operation and other
activities. Our overall position has
been improved and as a result,
position has been upgraded from 29
to 27 among the world top container
ports as per Container International
listing.
Development Projects
The main construction work of Phase
1 of Hambantota Port Development
Project commenced in January and 50%
of the work on break-water was
completed. The work in progress of
the rest of construction work is
well ahead of the schedule and time
targets. For the construction of
proposed Tank Farm for bunkering
oil, aviation fuel and LP gas
blending mixing together with
pumping facilities. an agreement was
signed and awaiting for funding
finalization.
The construction work of the Colombo
Port Expansion Project was commenced
in April and the construction of
rock core of the breakwater up to
135m and basin dredging and
reclamation work of around 4.86 M13
million together with other
ancillary work has been completed
The preparation work of Oluvil
port project and plans of Galle Port
development project and Galle port
rehabilitation project were
initialized. We are proud that all
these projects that were delayed for
years due to various reasons were
commenced during the year 2008, All
these projects are progressing
simultaneously as programmed.
Our
Finances
With the growing volumes handled at
the Port of Colombo, operating
profits of nearly Rs, .3 billion.
gained during the financial year is
a satisfactory situation, but the
bottom line of the income statement
is not so attractive due to reasons
beyond our control. The gap between
revenue and expenditure has been due
to unfavorable fluctuation of the
exchange rate and cost of energy &
labour The repayment of
installment and interest on the
JBIC loans. at a time when Japanese
Yen was appreciating against the SL
Rupee made it difficult for SLPA to
bring the situation under control.
However, with the commencement of
several development projects for
which an initial investment of 15%
of the estimated cost of each
project was made available. While
facing all these challenges we were
able to make heavy financial
commitments and to avoid cash- flow
problems, even financing several CSR
Projects. This is a clear indication
of sound financial position of the
SLPA and consorted efforts and
constant reviews in handling
finances of the Authority.
Human
Capital
Our attention was focused on
enhancing employee contribution and
creating working environment so that
employees will come out with ideas
to improve the level of their
performances and avoid waste of
resources. Changing attitudes,
positive and innovative thinking of
employees and their active
participation in work as well as
extra curricular activities give
immense benefits to this
organization. We have been able to
change the thought process of
employees and their contribution
which is of great value in avoidance
of waste and optimum utilization of
resources. To compensate their
efforts a human resource policy was
introduced by systematic
implementation of schemes of
recruitment and promotion and a
marking system for selections with
the consent of the employee
representatives. Further,
performance evaluation scheme was
revised to cover many aspects and
also to ensure transparency in the
evaluation process and fair and
reasonable judgments. We value our
employees, as they are our strength
and their ideas and constructive
criticism are vitally important
among other contributions in
building a growing organization.
The Future
Over the years Port of Colombo
maintained it's position and during
the year 2008 we have advanced
further and now in the 27th position
in the listing of Container
international. We have laid a solid
foundation by investing in projects,
specially in Colombo Port Expansion
Project in enhancing the capacities
and the next generation vessels
coming to operation in the future.
The port development project in
Hambantota when completed by
adopting appropriate marketing
strategy will attract more vessels
for bunkering and other services
that will generate income and bring
foreign exchange to support the
national economy while creating more
employment opportunities. The return
on investment in these projects
would benefit and strengthen the
position of the SLPA directly and
indirectly and contribute to the
national economy in numerous ways.
All stake holders including the
direct port-users would find it more
convenient and as all the processes
are being simplified and
streamlined. specially the Terminal
Management System being implemented
would result in further enhancements
of productivity levels.
Under the guidance of the Hon.
Minister we have taken important
decisions especially on investment
in development projects and for
enhancement of the quality of
existing services while extending
reasonable benefits to our
employees. We have the courage to
face challenges within the industry
and from the changing business
environment. In this process we are
proud of our employees who are
always with us. I am therefore,
grateful to our employees as well
as to those agencies who are
partners of our business for their
cooperation.
