Fleet Expansion

July 17, 2013 (LBO) - Sri Lanka's Tokyo Cement group said it planned to buy two more vessels in the next three years, as the firm expanded.
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"Therefore, sudden spikes in freight costs have significant and unavoidable negative impacts on the company’s balance sheet.

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"Our decision to invest in our own fleet of vessels therefore, has saved the company, and the country, millions of dollars by avoiding chartering of vessels to transport raw materials."

"During the previous financial year we purchased two vessels and within next three financial years we propose to add another two vessels to our fleet," managng director S R Gnanam told shareholders in the annual report.

The firm is planning a 50 million dollar expansion in capacity which will up capacity by a million tonnes a year by 2015.

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The company said it will upgrade a private dock at Trincomalee port with a channel deepened and a jetty extended to accommodate ships of 28,000 tonnes from the current 20,000 tonne capacity.

The group imports raw materials such as clinker for grinding in Trincomalee.

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"Freight costs are subject to external market dynamics

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