Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Sri Lanka Ports Authority(SLPA)Considering the strategicgeographical location of Sri Lankafor trade and port related activitiesthe government has embarkedon an aggressive infrastructuredevelopment programme. During theyear 2010 SLPA commissioned the 1stphase of the Hambantota port andhas already initiated work on the 2ndphase, whilst the Colombo South portexpansion project is on track to becompleted by 2013.From a wider perspective the SLPA’sexpansion programme has resultedin the introduction and growth ofancillary industries such as bunkering,provision of warehouse and storagefacilities, ship building and repairing,insurance, banking and other services.This in turn will yield high dividendsboth financially and socially withinthe medium term through the growthof direct and indirect employment,transfer of technology which will addvalue to the economy and increaseproductivity.In 2010 with the enhancement ofeconomic activities, SLPA handled2.1 million TEU’s achieving a year onyear growth of 23 percent, despite adecline in the arrival of ships by 9.7percent. The growth experienced bythe Colombo port at 19.4 percent wasbetter than the growth recorded byregional peer ports, Shanghai at 16.2percent, Singapore at 9.9 percentand Hong Kong at 12 percent. During2010, SLPA’s consolidated revenueincreased by 19 percent to Rs. 28,279million. Foreign exchange revenuealso experienced a sharp increaseof 23 percent by Rs. 3,968 million in2010. Although SLPA recorded a yearon year growth in operating profit of125 percent to Rs. 4,387 million, dueto the negative impact of exchangerate losses related to the repaymentof the JBIC loan, SLPA incurred a netloss of Rs. 1,190 million at the end ofthe year 2010. It is encouraging tonote that SLPA has showed signs ofimproving its productivity with TEU’shandled per employee increasing to169 in 2010 from 128 in 2009 despitea decrease in the total employees by4 percent.Table 4.18 > Key Performance Indicators of Sri Lanka Ports AuthorityUnits 2005 2006 2007 2008 2009 2010Vessels Arrived Nos 5,092 5,117 5,366 5,430 5,162 4,657Colombo Nos 4,425 4,583 4,760 4,771 4,560 4,343Galle Nos 258 267 304 333 222 169Trincomalee Nos 409 267 302 326 380 145Total TEU’s handled Mts (Mn) 1.5 1.7 1.8 1.9 1.7 2.1Revenue Rs. Mn. 20,550 23,004 25,913 25,142 23,331 28,279Colombo Rs. Mn. 19,789 22,318 25,296 24,561 23,257 27,724Galle Rs. Mn. 449 465 361 268 169 279Trincomalee Rs. Mn. 312 221 256 314 361 277Total Expenditure Rs. Mn. 14,370 18,217 23,562 23,322 21,774 25,118Colombo Rs. Mn. 13,589 17,196 22,265 22,159 20,533 23,834Galle Rs. Mn. 370 515 636 613 544 662Trincomalee Rs. Mn. 411 506 661 550 597 622Operating Profit Rs. Mn. 7,367 5,903 3,498 2,941 1,942 4,387Foreign Loan Rs. Mn. 40,248 38,521 39,334 51,202 53,842 42,143Interest on Foreign Loan Rs. Mn. 1,186 1,115 1,147 1,211 1,159 1,225Foreign Exchange Gain/(Loss) Rs. Mn. 7,058 (1,168) (3,944) (11,790) 591 (4,409)TEU’s per Employee Nos 113 128 113 144 128 169Revenue per Employee Rs. Mn. 1.5 1.7 1.9 1.8 1.7 2.2Cost per Employee Rs. Mn. 1.1 1.3 1.7 1.7 1.6 1.9Total Cost of Employment Rs. Mn. 6, 503 8,936 14,013 13,388 12,592 14,088Source: Sri Lanka Ports Authority221