CDL buoyant

Colombo Dockyard (CDL) is reporting a full order book until 2008 for new ships, after building seven fast patrol boats for the Sri Lankan Navy and two tugs for Saudi Arabia which saw revenues rising 21.3% to 7.4 billion rupees in 2006.

Last year Dockyard group profits rose to 626 million rupees, from 58 million. Its order book was now full till 2008, but next year’s profits are expected to take a dip because most of the ships built in 2007 will only be completed in 2008.

Last October CDL won an order for two anchor handling and supply vessels from Greatship (India) Ltd, a subsidiary of Great Eastern Shipping Company, for $29.5 million, the largest single order of CDL. “This is the very first contract for the construction of anchor handling tug boats, by CDL,” the chief executive, Tatebe, said. Two fisheries protection vessels were under construction for the Government of the republic of Maldives which are due to be delivered in 2007.

At the moment it was building two pilot launches for the Sri Lanka Ports Authority.

In 2006 the firm had repaired 170 vessels with Indian tankers taking the lead, earning 3.3 billion rupees. CDL has also re-powered an Israeli built Fast Missile Vessel for the Sri Lanka Navy.

CDL says it needs more space to expand its docks, and Colombo port is now too congested. “In order to meet the ever-increasing demand for ship repair work we need to consider the possibility of expansion of facilities outside the port of Colombo, due to the limitation of existing space inside the port premises,” Tatebe said. The company is facing competition from China and emerging private yard in India. In China salaries were half that of Sri Lanka. Colombo Dockyard is 51% owned by Onomichi Dockyard Company of Japan.