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Aitken Spence Shipping, Delmege Shipping in landmark joint venture - 6/27/2005

Two of the best known names in Sri Lanka shipping, Aitken Spence Shipping Ltd., a member of the Aitken Spence Group and Delmege Forysth & Co. (Shipping)Ltd., a member of the Delmege Group have forged a strategic alliance.

The strategic alliance between Aitken Spence Shipping and Delmege Forsyth Shipping will enable them to share resources and synergies in the efficient and professional handling of vessels.

The joint venture between the two well-established companies expects to explore new opportunities in the board area of shipping and logistics. Preparations have commenced to bid for several potential contracts in collaboration with their reputed principals, a joint statement by the two parties said yesterday

Spokesmen for the two companies stated that, “two highly reputed companies joining together creates a formidable force and a definite advantage in exploiting new business opportunities, which augers well for future growth, in a highly competitive industry”.

The statement said the companies’ principals and business partners have lauded the move by the two well known corporate entities and have expressed confidence that this strategic alliance will be mutually beneficial, and in fact a win-win solution foe all parties in providing enhanced professional expertise and value added services in the handling of their vessels in the ports of Sri Lanka.

Aitken Spence established their shipping business in 1870 and has been a pioneer in developing ship agency and logistics infrastructure facilities in Sri Lanka. It has also represented Lloyds of London since 1876. Aitken Spence is presently the largest container ship owning company in Sri Lanka with all its vessels being on time charter.

Delmege Forsyth & Co.Ltd., dates its origins to the year 1850. A subsidiary, Delmege Forsyth &Co.(Shipping) Ltd., was incorporated in 1973 to handle the large shipping agency business that had been built up over a period of more than 100 years. The company presently acts as agents for tankers, specialized bulk carriers, car carriers, break-bulk vessels, heavy lift carriers, passenger vessels and naval vessels.

A few amongst the portfolio of many principals that Delmege Shipping represents are world renowned and reputed organizations, such as Shell international, Cunard & Seabourne Cruise Lines, lnchcape shipping, Asean Cableship and Kuok Oil.

Aitken Spence early this year broke new ground by forging an alliance with McLarens Holdings and the move has brought in rich dividends

according to industry analysts. They described the new deal with Delmege as “landmark” and was much deeper and greater suggesting Aitken Spence’s earnings would swell in the new financial year. The joint statement didn’t detail the structure of the joint venture or whether the two firms have floated a separate holding company as in the case of the tie up between Spence and McLarens.

In 2004/5, Aitken Spence’s Cargo Logistics Sector comprising the newly established Maritime Transport segment, the integrated logistics and the Freight Forwarding sections have all performed well. The sector recorded a revenue of Rs. 1.87 billion up by 17% and a profit from operations of Rs.281.5 million, up by 15%. The Sector by virtue of having three vessels, is the biggest ship owning company in Sri Lanka.

Daily Mirror - Financial times