Sri Lanka Ports Authority for the Year 2010
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ANNUAL REPORT 2010 1 OUR VISION AND MISSION VISION To consolidate Sri Lanka’s position as the premier maritime logistics centre of the Asian region. MISSION To increase our profitability and customer base by providing excellent service and world class facilities. Sri Lanka Ports Authority ANNUAL REPORT 2010 2 CONTENTS 3 Our Goals and Corporate Objectives 4 Operational Highlights 6 Financial Highlights 7 Our Ministers 8 Chairman’s Review 10 Profiles of Board of Directors 15 Management Team and Audit Committee 16 Business Development 17 General Administration 21 Operational Review 56 Financial Review 61 Corporate Social Responsibilities 62 Human Capital 65 Corporate Governance Report 69 Port Statistics 73 Milestones 76 Financial Statements 77 Report of the Board of Directors 79 Directors’ Responsibilities for Financial Reporting 80 Audit Committee Report 81 Statutory Compliance Statement 82 Operational and Financial Highlights 87 Balance Sheet 88 Income Statement 89 Statements of Changes in Equity 90 Cash Flow Statement 91 General Accounting Policies 100 Notes to the Financial Statements 125 Ten Year Summary 127 Key Results at a Glance 128 Glossary of Financial Terms 130 Auditor General’s Report 141 Responses to the Auditor General’s Report 151 Corporate Information Sri Lanka Ports Authority ANNUAL REPORT 2010 3 OUR GOALS AND CORPORATE OBJECTIVES GOALS To maintain high levels of Productivity in To establish Sri Lanka as a Maritime Hub. order to ensure speedy turnaround of vessels. To consolidate the position of the Port of To improve maritime related ancillary Colombo as an international mega hub services thus creating more opportunities port for container operations and as a for employment. logistics centre in the South Asian Region. To maintain a profitable operation of the To project the Port of Galle as a preferred Commercial Ports and to develop a good cruise vessel destination whilst offering reputation as an efficient and reliable Port commercial port services. operator by providing a high quality customer service. To expand and develop the Port of Hambantota as an international Free To develop activities to provide a Zone/Port and logistics hub whilst offering competitive and quality service for total services to the maritime industry. container operation with a view to To develop the Port of Trincomalee as a attracting transshipment activities Green Port with enhanced facilities for including relay cargo, entrepot trade and leisure and expanded facilities for bonded activities. industrial development. To contribute towards regional To develop regional Ports of Oluvil, Point development of Sri Lanka by providing Pedro and Kankasanthurai as gateways for necessary Port facilities to act as a the regions development. catalyst in hinterland development. CORPORATE OBJECTIVES To enhance the administration and organizational aspects of the Sri Lanka To develop and maintain state of the art Ports Authority including the revision of facilities in the commercial Ports of Sri cadres and assessment of manpower Lanka. requirements. The practice of staff proceeding on No pay Leave for work To maintain effective and efficient Port over seas will once again be encouraged Services. in view of its benefits to the country’s economy. Our Mahapola Training Center To provide a competitive edge to will further train and re-train staff to meet importers and exporters by ensuring a the requirements created by this scheme. cost effective, efficient and reliable service. To diversify the Port related activities such as offshore services, bunkering, To ensure the safety and security of fresh water supply, and container repairs, ships, cargo, Port users and Port etc. infrastructure. To provide a conducive working and To implement a management orientated service environment for all stake holders. financial reform with higher tax efficiency, better Portfolio management and more To contribute to the Consolidated Fund of aggressive cost control. the General Treasury for current and capital expenditure of the government. Sri Lanka Ports Authority ANNUAL REPORT 2010 4 OPERATIONAL HIGHLIGHTS SHIPS ARRIVAL (ALL PORTS) Description 2009 2010 Variance (%) Port of Colombo 4,114 3,910 -5.0 Port of Trincomalee 310 109 -64.8 Port of Galle 32 48 50.0 KKS, Myliddy, PP & Karainagar 136 8 -94.1 Total 4,592 4,075 -11.3 CARGO THROUGHPUT OF PORT OF COLOMBO Description 2009 2010 Variance (%) Total Cargo Throughput (MT Mn) 49.0 61.3 24.9 CONTAINER THROUGHPUT (TEUs) OF PORT OF COLOMBO Variance Description 2009 2010 (%) SRI LANKA PORTS AUTHORITY Imports 208,418 278,893 33.8 Exports 204,667 284,456 39.0 Transshipment 1,260,313 1,533,845 21.7 Re-stowing 41,090 69,979 70.3 Total 1,714,488 2,167,173 26.4 SOUTH ASIA GATEWAY TERMINAL Imports 165,115 182,755 10.7 Exports 173,792 186,140 7.1 Transshipment 1,372,742 1,561,744 13.8 Re-stowing 38,160 39,629 3.8 Total 1,749,809 1,970,268 12.6 PORT OF COLOMBO Imports 373,533 461,648 23.6 Exports 378,459 470,596 24.3 Transshipment 2,633,055 3,095,589 17.6 Re-stowing 79,250 109,608 38.3 Total 3,464,297 4,137,441 19.4 CARGO DISCHARGED IN PORT OF COLOMBO (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Containerized 10,725 14,106 31.5 Break Bulk 510 605 18.6 Dry Bulk 2,097 2,551 21.6 Liquid Bulk 4,007 4,130 3.1 Total 17,339 21,392 23.4 Sri Lanka Ports Authority ANNUAL REPORT 2010 5 OPERATIONAL HIGHLIGHTS CARGO LOADED IN PORT OF COLOMBO (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Containerized 9,784 12,328 26.0 Break Bulk 139 22 -83.9 Dry Bulk 0 4 - Liquid Bulk 19 28 45.4 Total 9,942 12,382 24.5 TOTAL CARGO HANDLED IN PORT OF COLOMBO (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Containerized 20,509 26,434 28.9 Break Bulk 649 627 -3.3 Dry Bulk 2,097 2,555 21.9 Liquid Bulk 4,026 4,158 3.3 Total 27,281 33,774 23.8 CARGO HANDLED IN PORT OF TRINCOMALEE (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Discharged 1,904 1,960 2.9 Loaded 334 194 -41.9 Total 2,238 2,154 -3.8 CARGO HANDLED IN PORT OF GALLE (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Discharged 166 317 91.0 Loaded 1 1 - Total 167 318 90.4 CARGO HANDLED IN PORTS OF KKS, MYLIDDY, PP & KARAINAGAR (IN THOUSAND TONNES) Description 2009 2010 Variance (%) Discharged 240 11 -95.4 Loaded 7 0 - Total 247 11 -95.5 TOTAL NUMBER OF EMPLOYEES Description 2009 2010 Variance (%) Port of Colombo 12,263 11,726 Port of Trincomalee 591 598 Port of Galle 513 500 Total 13,367 12,824 Sri Lanka Ports Authority ANNUAL REPORT 2010 6 FINANCIAL HIGHLIGHTS All Ports (Rs. Million) Variance Description 2009 2010 (%) Revenue and Expenditure Total Revenue 23,331.4 28,279.3 21.2 Total Expenditure 21,389.7 23,892.4 (11.7) Operating Profit 1,941.7 4,386.9 125.9 Foreign Loan Interest 1,159.4 1,225.2 (5.7) Foreign Exchange (Loss)/Gain 591.1 (4,409.8) (846.0) Profit Before Tax & After Foreign Exchange 1,373.4 (1,248.1) (190.9) (Loss)/Gain Taxes Income Tax 463.9 156.9 66.2 Deemed Dividend Tax 34.2 - 100.0 Differed Tax 1,250.4 342.9 72.6 Social Responsibility Levy 12.0 2.4 80.0 Net Profit/Loss After Provision for Taxes 2,113.7 (1,064.5) (150.4) Balance Sheet Non Current Assets 148,187.5 185,834.0 25.4 Current Assets 23,886.2 17,369.2 (27.3) Current Liabilities 14,915.7 12,913.6 13.4 Equity and Other Capital 7,591.4 7,591.4 0.0 Reserves & Provisions 78,166.1 78,795.1 (0.8) Non Current Liabilities 71,400.5 103,903.1 (45.5) Ratios Operating Profit to Revenue 8.3 15.5 Annual Revenue Growth (7.2) 21.2 Return on Capital Employed 1.2 2.3 Sri Lanka Ports Authority ANNUAL REPORT 2010 7 OUR MINISTERS His Excellency Mahinda Rajapaksa President of Sri Lanka and Minister of Ports and Highways Hon. Rohitha Abeygunawardena Deputy Minister of Ports and Highways Hon. Nirmala Kothalawela Deputy Minister of Ports and Highways Sri Lanka Ports Authority ANNUAL REPORT 2010 8 CHAIRMAN’S REVIEW I am pleased to state that 2010 has been a satisfy stakeholders. We have also been truly impressive and very productive year able to introduce a maintenance policy to due in large measure to the contribution of satisfy the day to day operational the work force of Sri Lanka Ports Authority requirements and to ensure maximizing the and of the loyal support of our valued equipments' useful life span. customers. I would like to pay tribute to all those demonstrated commitment to SLPA in Container throughput handled at the order to increase our volumes at an Container Terminals managed and operated acceptable level. I am confident that by SLPA had shown a record performance in prospects for the coming years continue to both domestic and transshipment volumes. be buoyant particularly due to change of A 36.4% growth had been recorded in attitudes of all stakeholders of the SLPA domestic container volumes from 413,085 without any doubt. TEUs in 2009 to 563,349 TEUs in 2010. The growth of transshipment containers handled Performance at the SLPA Terminals had shown a 21.7% increase from 1,260,313 TEUs in 2009 to We have assured to prove to our customers 1,533,845 TEUs in year 2010. The total that the competent management of the 2,167,173 TEUs had been handled in 2010, SLPA is willing to face any challenge to an overall improvement of 26.4% increase retain and expand our section of the market.