Colombo Dockyard PLC (CDL) urgently needs additional land for expansion, but it is not being offered to them, said its Managing Director/Chief Executive Officer D. V. Abeysinghe.
Speaking to media after laying the key to build their longest ship for a Japanese company, he said CDPLC is now in the red due to global industry downturn in the ship building sector.
“Hence, we decided to diversify to building of steel bridges and other construction all over Sri Lanka. We allocated Rs 200 million to lease out a property within the Colombo Port.
He said when Sri Lanka Ports Authority called for tenders to lease out land within the Port, they applied last year.
“We were made to understand that our bid was strong, but due to whatever reasons we were not considered. In addition, this process too was called off and new proposals are now being called again. We don’t know why this happened.”
He said that they are now waiting to find land to unleash their future plans. Asked why they are seeking land within the Port, he said it was because of transport costs and other logistical issues.”
Airing his views on the order they received from Japan, he said that the project value is US$ 54 million and their profit margin is around 4%.
The local value addition for this vessel would be over 30%. The tender to build this ship to be used by the Japanese company for laying of a cable in mid sea was secured through an international tender and indicates the confidence in CDL globally. He also predicted that they will once again be a profitable venture from next year. “We have several more ship building orders both locally and internationally too.”
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