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Sri Lanka Ports Authority for the Year 2015

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Sri Lanka Ports Authority for the Year 2015 Accelerating P SITIVE change SRI LANKA PORTS AUTHORITY | ANNUAL REPORT 2015 Sri Lanka Ports Authority. Tel: +94 112 42 12 31 / +94 112 42 12 01 No 19, Chaithya Road, Colombo 01. email: [email protected] ACCELERATING POSITIVE CHANGE The Sri Lanka Ports Authority operates several major commercial ports in Colombo, Galle, Hambantota, Trincomalee, Kankesanthurai, Oluvil and Point Pedro. Founded in 1979, the SLPA has grown to be a leader in the world of shipping and commerce, a respected organisation where governance, environmental responsibility and our commitment to the future of Sri Lanka and its people have guided our voyage of success. While our goal to create value for all our stakeholders remains a priority, we also pride ourselves on our commitment to national development, investing into local communities in a bid to enhance livelihoods and bring life’s opportunities to people, island-wide. We plan to continue our mission of value into the years ahead as we forge ahead, powering shipping, trade and industry, energizing people’s lives and accelerating positive change. The Port of Colombo has been administered since 1913 by the Colombo Port Commission, which is responsible for the supply and maintenance of cargo-handling equipment and other infrastructure, pilotage services, docking and shipping. The Sri Lanka Ports Authority was constituted under the provisions of the Sri Lanka Ports Authority Act, No. 15 of 1979 (subsequently amended by Act No. 7 of 1984 and Act No. 35 of 1984) on the 1st of August 1979, effecting the merger of the Colombo Port Commission Department and the two existing statutory Corporations. This resulted in a unified organization with a streamlined structure. The Ports Authority utilizes its own revenue and resources and receives no financial support from the government. SRI LANKA PORTS AUTHORITY Contents Aspirations 4 Corporate Objectives 5 Operational Highlights 6 Financial Highlights 8 Our Ministers 9 Chairman’s Review 10 Board of Directors 12 Management Team and Audit Committee 16 Business Development 17 General Administration 18 Operational Review 21 Financial Review 47 Corporate Social Responsibility 50 Human Capital 51 Corporate Governance Report 52 Ports Statistics 55 Milestones 59 Financial Statements 73 Report of the Board of Directors 74 Directors’ Responsibility for Financial Reporting 75 Audit Committee Report 76 Statutory Compliance Statement 77 Operational Highlights 78 Statement of Financial Position 80 Statement of Comprehensive Income 82 Statement of Changes in Equity 83 Cash Flow Statement 84 General Accounting Policies 85 Notes to the Financial Statements 91 Graphical Review 116 Auditor General’s Report 117 Corporate Information IBC Our Vision ‘Logistic excellence in the Silk Route.’ Envisioning the future of Sri Lankan ports, Sri Lanka Ports Authority (SLPA) is making a paradigm shift from being a container hub to becoming a global logistics hub, anticipating a boom in international trade that will open up a range of opportunities as well as challenges. The Ports Authority plans to strengthen its complex logistic approaches with a “one touch” information flow of all processes, while benchmarking national and international best practices at every level, in order to improve the overall economic environment of Sri Lanka. Our Mission ‘Delivery of world-class port services in a sustainable environment.’ With a view to create a global logistics hub port in Sri Lanka, the Ports Authority is expected to construct a multi–dimensional logistics system to integrate logistic functions by launching a deep-water seaport with excellent maritime access that will enable Sri Lanka to receive and operate large vessels in sophisticated, specialized terminals. In anticipation of exponential growth in both the port and the region, the SLPA plans to create and manage a logistics platform serving the biggest players in the ports, maritime, industrial and logistics sectors; a world-class industrial and logistics zone free of urban restrictions, with the potential and capacity for future expansion. The SLPA will keep its pledge of value to thousands of stakeholders we serve by operating an economically efficient and environmentally-sound organization of port facilities and terminals that will benefit all visitors while creating wealth for the nation. SRI LANKA PORTS AUTHORITY Aspirations By 2020… 1 To become a Centre for Maritime Excellence. 4 To achieve US$ 10 billion in port investments (within the ports). To become a leading contributor to the national 2 To achieve 200 million tonnage in cargo handling. 5 economy. 3 To achieve US$ 1 billion in revenue. 6 To be a ‘green’ port operator. Strategies to achieve these Aspirations Develop infrastructure and superstructure facilities Implement advanced financial management 1 8 in Colombo. systems. Consolidate the Port of Colombo ranking as a 2 9 Reduce our carbon footprint. Centre of Maritime Excellence. Introduce sector-specific marketing and business Develop other regional ports with regard to their 3 10 development programmes. individual strengths and competitive advantages. Develop the Magam Ruhunupura Mahinda 4 Rajapaksa Port (MRMR Port) as an international 11 Diversify our business activities. services, industrial and container handling port. Enhance safety and security for cargo and port 5 12 Provide facilities for oil and gas supply. users. 6 Mark our global presence in strategic locations. 13 Deliver efficient vessel oriented services. Restructure and re-design organizational Increase focus on Corporate Social Responsibility 7 14 administrative procedures. (CSR). 4 ANNUAL REPORT 2015 Corporate Objectives To develop and maintain state-of-the-art facilities To develop port activities to provide a in the Commercial Ports of Sri Lanka. competitive and quality service for container operations with a view to attract transshipment business, including relay cargo, entrepôt trade To maintain effective and efficient port Services. and bonded activities. To provide a competitive edge to importers and To contribute towards regional development in exporters by ensuring cost effective, efficient and Sri Lanka by providing required port facilities and reliable services. by being a catalyst in hinterland development. To ensure the safety and security of ships, cargo, To enhance the administration and organizational port users and port infrastructure. aspects of the Sri Lanka Ports Authority, including the revision of cadres and assessment of manpower requirements. The practice of SLPA To provide a conducive working and service staff going on unpaid leave for employment environment for all stakeholders. overseas will be encouraged, in view of the benefits to the country’s economy. The SLPA Mahapola Training Center will also train and develop staff in line with the standards and To contribute to the Consolidated Fund of requirements of the scheme. the General Treasury for current and capital expenditure of the government. To diversify into port-related activities such as offshore services, bunkering, fresh water supply To maintain high levels of productivity, in order to and container repairs. ensure speedy turnaround of vessels. To implement management-driven financial To improve maritime related ancillary services, reform with greater tax efficiency, better portfolio thus creating more employment opportunities. management and more aggressive cost control. To maintain the profitable operation of the Commercial Ports of Sri Lanka and to develop a good reputation as an efficient and reliable port operator by providing high-quality customer service. 5 SRI LANKA PORTS AUTHORITY Operational Highlights Ship arrivals (All ports) Description 2014 2015 Variance (%) Port of Colombo 3,742 4,197 12.2 Port of Trincomalee 127 164 20.0 Port of Galle 60 72 29.1 KKS, Myliddy, PP & Karainagar 34 32 -5.9 MRMR Port 335 295 -11.9 Total 4,298 4,760 10.7 Container throughput (TEUS) at the Port of Colombo Description 2014 2015 Variance (%) Sri Lanka Ports Authority (SLPA) Imports 324,085 261,188 -19.4 Exports 319,232 279,964 -12.3 Transshipment 1,882,057 1,691,267 -10.1 Re-stowing 33,965 19,904 -41.4 Total 2,559,339 2,252,323 -12.0 South Asia Gateway Terminals (SAGT) Imports 167,815 172,957 3.1 Exports 169,539 154,793 -8.7 Transshipment 1,298,434 1,028,538 -20.8 Re-stowing 26,152 14,957 -42.8 Total 1,661,940 1,371,245 -17.5 Colombo International Container Terminal (CICT) Imports 75,680 174,055 130.0 Exports 70,634 175,014 147.8 Transshipment 519,219 1,168,516 125.1 Re-stowing 21,103 44,314 110.0 Total 686,636 1,561,899 127.5 Port of Colombo Imports 567,580 608,200 7.2 Exports 559,405 609,771 9.0 Transshipment 3,699,710 3,888,321 5.1 Re-stowing 81,220 79,175 -2.5 Total 4,907,915 5,185,467 5.7 Cargo throughput (All Ports) Total Cargo Throughput (MT Mn) 74.4 77.6 4.3 6 ANNUAL REPORT 2015 Description 2014 2015 Variance (%) Cargo discharged in the Port of Colombo - SLPA (In Thousand Tonnes) Containerized 17,082 14,913 -12.7 Break Bulk 596 1,105 85.4 Dry Bulk 2,441 2,344 -4.0 Liquid Bulk 4,357 4,333 -0.6 Total 24,476 22,695 -7.3 Cargo loaded in the Port of Colombo - SLPA (In Thousand Tonnes) Containerized 15,450 13,719 -11.2 Break Bulk 6 8 33.3 Dry Bulk 3 0 -100.0 Liquid Bulk 63 246 290.5 Total 15,522 13,973 -10.0 Total Cargo handled in the Port of Colombo - SLPA (In Thousand Tonnes) Containerized 32,532 28,632 -12.0 Break Bulk 602 1,113 84.9 Dry Bulk 2,444 2,344 -4.1 Liquid Bulk 4,420 4,579 3.6 Total 39,998 36,668 -8.3 Cargo handled in the Port of Trincomalee (In Thousand Tonnes) Discharged 2,621 2,649 1.1 Loaded 127 379 198.4 Total 2,748 3,028 10.2 Cargo handled in the Port of Galle (In Thousand Tonnes) Discharged 394 540 37.1 Loaded 0 2 - Total 394 542 37.6 Cargo handled in the Ports of KKS, Myliddy, PP & Karainagar (In Thousand Tonnes) Discharged 21 32 52.4 Loaded 0 0 - Total 21 32 52.4 Magam Ruhunupura Mahinda Rajapaksa Port (In Thousand Tonnes) Discharged 316 195 -38.3 Loaded 158 98 -38.0 Total 474 293 -38.2 Total number of employees Port of Colombo 8,701 8,692 0.1 Port of Trincomalee 419 417 -0.5 Port of Galle 373 355 -4.8 Total 9,493 9,464 -0.3 7 SRI LANKA PORTS AUTHORITY Financial Highlights All Ports Description 2014 2015 Variance Rs.
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