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Holcim Streamlines Clinker Supply With Ship To Ship Operations

In the interests of providing continuous cement supply, Holcim Lanka has embarked on Ship to Ship (STS) operations, contributing an estimated 0.5 million USD to the Sri Lankan Ports Authority 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 LKR 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 port which contributes to 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 Trincomalee Port will be transported to 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.

About Holcim (Lanka) Ltd

Holcim (Lanka) Ltd, a member of the LafargeHolcim group is the local subsidiary to the global construction company, currently operating worldwide.


Aiming to be a respected corporate citizen, the company focuses on Economic, Social and Environmental performance along the triple bottom line of sustainable development.


Having established the brand in Sri Lanka, Holcim (Lanka) Ltd today provides a range of cement products while also providing materials for major construction projects in the country alongside the provision of technical expertise through the Holcim Innovation and Application Centre, which allows customers to tailor the mix of cement most suitable for them.


The company currently operates island wide with an established network of distributors, united under the vision of ‘building the foundations for the future of Sri Lanka’.

Captions

1.) Charith Wijendra, Project Director, Supply Chain & Procurement

2.) Ship-to-ship operations

Last modified on Friday, 16 October 2015 07:42