Ship building sector will net over $80m in forex this year - Colombo Dockyard chief | Sunday Observer

Ship building sector will net over $80m in forex this year - Colombo Dockyard chief

29 January, 2023

Colombo Dockyard PLC (CDPLC), the leading shipbuilding and ship repair service provider in Sri Lanka, will earn foreign exchange to the value of over 80 million USD (SL Rs.30 billion) this year, said Managing Director / CEO D.V. Abeysinghe.

He was speaking at the launch of the second vessel of the series 5,000 DWT Eco Bulk Carriers at the launch at Dock No.2 of CDPLC premises, Colombo Port on Monday.

He said the cargo carrier is built for MISJE Eco Bulk AS, Norway to provide 10 vessels of its kind which will bring in over 100 million USD at its completion one after one before mid-2026. “The first 4 vessels are priced at 400 million USD and the balance will be sold at a higher price” he said. The maiden ship of the 4 was released in September last year.

CDPLC has been in business for the past five decades and is a front line contributor to national export earnings.

The CEO was very positive that the company will reach its target this year with its prime business beingspecialized as a ship repairer located at a strategicmarine hub in Colombo close to main sea lanes along with Hambanthota, Galle and Trinco. He said “In the ship repair and maintenance business, the material cost portion is very low but we earn millions of dollars using our human capital”.

The new tech, nature-friendly hybrid vessel was built to DNV classification society standards and developed with the elementary design from Wartsila Norway and rest of the detailed designs have been carried-out by the local in-house engineers of CDPLC.

Abeysinghe was proud of his local talented team for undertaking this project and completing it to compete with international standards and delighting the supplier to place a highly satisfied renewed order. He said the Company was not so much concerned of high profits for the first 4 vessels tender but was mainly concerned of bring in dollars to the homeland as it is an urgent need at the moment.

He said that it is the first European client for the long history of CDPLC and this order illustrates the Colombo Dockyard’s recognition as an entry in to the European market and broadening opportunities to other countries in the world with the label “Built in Sri Lanka, blending Sri Lankan technology with Japanese quality”

Abeysinghe said another Cable Repair Ship is underway at the Colombo Dockyard to be released to France with revenue of 50 million USD by April next year.

Abeysinghe said certain difficulties of proceeding financial transactions from this end with regard to foreign deals. When it comes to y Bank Guarantees, the CDPLC has to depend on its principal shareholderOnomich Dockyard Company (ODC) Japan to handle it by themto furnish such guarantees as they arealso a very strong financial player in Japan and the international market. He said the only lacking part from this end is the financial issue as the country is facing a financial crisis.

Mrs. Anne Kalsaas spouse of Nils Magne Fjereide, CEO of MISJE launched the ship. The owners of Norwegian Misje Eco Bulk company, a subsidiary of Kåre Misje & Co., officials of the Embassies of Norway and Japan, officers of the Government including the Sri Lanka Navy, Sri Lanka Ports Authority, Export Development Board, Board of Investment, Customs, State banks, Class Surveyors with the senior management and employees of CDPLC were also present.