Califolink Logistics to aid automotive sector’s shift to Hambantota

Monday, 21 May 2012 00:00 - - {{hitsCtrl.values.hits}}

Califolink Logistics has successfully signed agreements with the leading automobile importers to begin clearing, conducting pre delivery inspection and transportation of cars from the Hambantota port from 31 May .

This agreement will result in the company handling over 1500 cars monthly making it the largest supply chain service provider for this sector.

The move by the Sri Lanka Ports Authority (SLPA) to shift the vehicle off loading to Hambantota from the current Colombo port is to ease the congestion in the Colombo Harbour which often leads to delays and in turn leading to higher freight rates by the lines and consequently increase the final selling price of the car.

Califolink Logistics is a subsidiary of the Jinadasa Group. The Group is a growing conglomerate with interests in apparel, property and renewable energy.

The Company’s CEO Nimal Wijesinghe says Califolink will avoid this domino effect by using the state-of-the-art port in Hambantota. “We have 5 trailers and arranging a 5 acre yard in Hambantota which is more than capable of handling large volumes of vehicles.”

The SLPA recently announced special concessions for vehicle importers using the Hambantota Port which will include 20% off the importing clearance tariff and 7 days free port charges.

“While we are fully capable of using either Port having yards at both locations, we believe the Hambantota Port is the most cost effective option.” “The long waiting periods at the Colombo Port coupled with the new concessions at the Hambantota Port would seem to make this evident.”

Sri Lanka has seen a surge in demand for new cars in the country with importation of vehicles rising by 121% and 147% in 2010 and 2011 respectively according to a statement by the Ministry of Finance and Planning.

The general feedback from the public is that they prefer to have new cars with no mileage. “We’re able to help our clients there as well,” said Wijesinghe. “ With the ability to transport up to 8 small vehicles or 24 three wheelers at a time our custom made trailers provide a cost effective mode of transporting vehicles to showrooms without the need of hiring several drivers and adding unwanted miles on the odometer. The trailers are also equipped with GPS which allow our clients to track their vehicles in real-time. Further, we insure the vehicles against damage until receipt of delivery. We fully relieve our clients from any logistical burdens thus allowing them to focus on their core business”

In a statement describing the use of a third party logistics provider to import cars, Chula Jinadasa CEO of the Jinadasa Group said, “All leading car dealers and manufacturers outsource. It is a widely used cost effective means of operating and Califolink Logistics has over 15 years of experience in helping clients implement the most cost effective and pragmatic solution to their logistical needs.”