Cargoserv Shipping partners Prima Ceylon, onboards Nestlé Lanka for landmark rail logistics initiative

Monday, 24 March 2025 02:11 - - {{hitsCtrl.values.hits}}

From left: Prima Ceylon Assistant Manager Logistics Kavinda Jayathilake, Deputy General Manager Dharshana de Silva, Ceyline Group Managing Director Chathura Lakindu, Cargoserv Shipping General Manager Prabath Karunaratne and Head of Finance Manelka Jayawardena

Cargoserv Shipping Ltd., a subsidiary of the Ceyline Group, has partnered with Prima Ceylon to introduce Sri Lanka’s first comprehensive multi-modal rail logistics solution.

This strategic collaboration aims to revolutionise supply chain logistics by leveraging rail-based reverse logistics, significantly reducing environmental impact and enhancing efficiency.

This initiative has already gained momentum, with Nestlé Lanka Ltd. becoming the first client to adopt the newly established rail logistics network for its transportation needs. The company has commenced operations, dispatching its first container shipments to Trincomalee, Batticaloa, Kalmunai, Vavuniya, Kilinochchi, and Jaffna. Cargoserv has successfully facilitated the movement of over 400 twenty-foot containers from the east to the north, with a capacity of 24 containers per rail movement.

The reliability of this rail solution has been rigorously tested since January 2021 with Prima Group, ensuring seamless and uninterrupted cargo transport. Rail logistics offers multiple strategic advantages, including lower carbon emissions, cost efficiency for bulk transport, and reduced dependency on road transport, which mitigates congestion and enhances road safety. Unlike traditional trucking, rail schedules remain predictable and unaffected by road traffic, ensuring timely deliveries.

Ceyline Group Group Managing Director Chathura Lakindu said: “We are proud to be part of this transformative partnership, setting a new benchmark in sustainable logistics. By integrating rail transport into supply chain operations, we are enhancing efficiency while promoting eco-friendly solutions.”

Cargoserv Shipping General Manager Prabath Karunaratne said: “As we inspire sustainable logistics in Sri Lanka, we invite Sri Lankan businesses to join us in reducing the carbon footprint of their operations. This initiative is a step towards making Sri Lanka’s logistic network greener and more cost efficient.”

Prima Deputy General Manager Dharshana de Silva said: “By shifting cargo from road to rail, Prima has eliminated approximately 2 million kilometres of truck movement annually, significantly easing congestion and reducing fuel consumption. We are delighted to welcome Nestlé into our backhauling initiative and commend Cargoserv for making rail freight a reality alongside Sri Lanka Railways.”

Nestlé Lanka Director Supply Chain Kanchana Fernando said: “This partnership aligns with our sustainability goals by reducing emissions while optimising our distribution network. We are excited to explore alternative transport solutions that benefit both our business and the environment.”

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