ECONOMYNEXT – Sri Lanka’s loss-making Colombo Dockyard is pursuing new business opportunities in ship repair and modification that a new global ballast water regulation is expected to generate, its chairman Toru Takehara has said.
The International Maritime Organization (IMO), a United Nations body that regulates shipping, has issued new directions requiring all of the estimated 60,000 currently active vessels to implement stringent ballast water management systems.
“As part of the new standard, vessel operators are now required to install ballast water treatment equipment,” Takehara told shareholders in the firm’s annual report.
“As more of vessels seek to achieve compliance with the global new standard, we anticipate a significant uptick in activity in terms of orders for ship repair and ship modification coming to Colombo Dockyard.”
The yard has been making losses in recent years with sme orders cancelled and other renegotiated at a lower prices because of the global downturn in the shipping industry.
But it managed to reduce loses to Rs432 million in 2016 from Rs708 million the year before.
(COLOMBO, March 27, 2017)