Mar 13, 2012 (LBO) – Sri Lanka’s Colombo Dockyard anticipates lower ship building and repair orders given the shipping industry downturn but is investing in equipment to improve efficiency and eyeing offshore oil industry work.
“Geographically, Colombo Dockyard couldnâ€™t be positioned in a better place than in Sri Lanka. It truly is an imperative in global sea routes and with this advantage, we know we can consolidate our strengths and direct it towards advantages.”
The yard has had very good relationships with European ship owners but given the downturn, very few ship owners remain active at present, he said.
“However, we have turned toward the opportunity of offshore business as well as some very aggressive new market ventures, which has seen a definite increase and has filled in our order books until 2014.”
Sri Lanka struck oil and gas in the Mannar Basin last year in two test wells drilled by Cairn India. “We have been fortunate in the immediate term, as having a sufficiently buttressed order book ensures that we can maintain our revenues and profit this year,” Colombo Dockyard chairman Akihiko Nakauchi said.
“However, business will be challenging, as there is a significant reduction in container c