Holcim streamlines clinker supply with ship-to-ship operations

12 October 2015 06:30 pm Views - 2761

In the interest of providing continuous cement supply, Holcim Lanka has embarked on ship-to-ship (STS) operations, contributing an estimated US $ 0.5 million to the Sri Lanka Ports Authority (SLPA) revenue. 

The move will result in larger vessels carrying material up to Sri Lankan waters, while coastal ships will work to supply Ruhunu Cement Works via the Galle Port. In doing so, Holcim is working to ensure that increased demand for imported clinker is met.
 
In 2012, Holcim Lanka invested Rs.2.6 billion at the ‘Ruhunu Cement Works’ in Galle. The resulting increase in production capacity led to a surge in demand for imported clinker. Yet, the Galle Port was only able to accommodate small bulk carriers carrying less than 10,000 metric tons, causing major supply constraints. This issue is now being resolved with Holcim Lanka employing larger bulk carriers to ensure the higher amount of imported clinker is received, while dispatching the balance in smaller vessels. 

“The use of larger vessels will economically minimize the risk of supply shortages as they can reach many clinker exporting countries such as Vietnam, Thailand, China, Korea and Indonesia. This access to several exporting countries will also allow Holcim to choose the best quality material, which in turn will improve the quality of our cement. At the same time, the continuous use of small vessels will allow for flexibility, giving Holcim the option of importing from nearby given a sudden spike in demand,” said VP Supply Chain Charith Wijendra.  

Holcim Lanka is the largest operator in both Trincomalee and Galle Ports, which contributes to the SLPA revenue, since as a result of STS operations Holcim Lanka will pay vessel operations-related charges at both ends, he further explained.

As a further benefit, imports to the Trincomalee Port will be transported to the Port of Galle via coast, causing less road traffic and safety risk. In a typical operation over 150 vehicles are deployed to manage the operations. This requirement will be reduced to below 40 with the introduction of STS operations. 
Holcim Lanka conducts coastwise transportation with full transparency while complying to respective Merchant Shipping Laws adhering to all taxes applicable for importation as advised by Sri Lanka Customs.

As a trusted supplier of cement for the last decade to Sri Lanka, Holcim is embedded in the hearts and minds of the people. One in three homes in Sri Lanka uses Holcim, a profound testimonial of Holcim’s credentials in the marketplace.