Identifier
Created
Classification
Origin
04COLOMBO1247
2004-07-28 06:34:00
UNCLASSIFIED
Embassy Colombo
Cable title:  

ICP FOR Certified Transportation Network

Tags:  BBSR CE ECONOMICS 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 COLOMBO 001247 

SIPDIS

USDOC FOR 4530/IEP/ANESA/OSA
USDOC FOR 3310/USFCS/EPS/IMD


PLEASE PASS TO USDOC DISTDIR NORTH BAY CALIFORNIA FOR
DANIEL GIAVINA

E.O. 12356 N/A
TAGS: BBSR CE ECONOMICS
SUBJECT: ICP FOR Certified Transportation Network

REF:(A) USDOC DISDIR NORTH BAY EAC, SAN FRANCISCO
MESSAGE OF JUNE 29,2004
UNCLAS SECTION 01 OF 02 COLOMBO 001247

SIPDIS

USDOC FOR 4530/IEP/ANESA/OSA
USDOC FOR 3310/USFCS/EPS/IMD


PLEASE PASS TO USDOC DISTDIR NORTH BAY CALIFORNIA FOR
DANIEL GIAVINA

E.O. 12356 N/A
TAGS: BBSR CE ECONOMICS
SUBJECT: ICP FOR Certified Transportation Network

REF:(A) USDOC DISDIR NORTH BAY EAC, SAN FRANCISCO
MESSAGE OF JUNE 29,2004

1.COUNTRY: SRI LANKA
2.COUNTRY CODE: 542
3.CASE NUMBER: NA
4.REPORT DATE: July 26, 2004
5.COMPANY NAME: Transcargo (Pvt) Ltd
6.ADDRESS: 117, Hunupitiya Lake Road, Colombo2
7.CONTACT: Wasantha Talagala
8.TITLE: Managing Director
9.PHONE: 94-11-2438951
10.FAX.: 94-11-2438956
11.TELEX: NA
12.YEAR ESTAB.: 1993
13.SIZE: Medium
14.SALES: USD 200,000.00
15.EMPLOYEES: 20
16.MEMBER OF LOCAL CHAMBER: Ceylon Chamber Of Commerce,
Freight Forwarders Association
17.EAST/WEST REPRESENTATION/QUALIFICATION: NONE
18.HS CODE/BUSINESS CODE/PRODUCTS AND SERVICES:
HS CODE/BUSINESS CODE/PRODUCTS AND SERVICES:
18A.Freight forwarding and consolidation of sea/air
cargo, relocation of personal effects, Customs and
door-to-door cargo services
19.FOREIGN SALES: NA
20A.FOREIGN FIRMS REPRESENTED: Modern Century Ltd (Hong
Kong),Eurasia(South Korea),Kopf & Luben(Germany),
Roland Freight (USA).
21.TRADE REFERENCES: The Company's main business is
freight forwarding and related activities. The
shipping and forwarding industry in Sri Lanka is
competitive with many company's operating in the
sector. Transcargo has gradually progressed from a
shipping/freight forwarding company and is now
expanding into other sectors such as small-scale
finance, leasing, plantations and tea manufacturing
and pharmaceuticals. However, the companies core
business remains in the shipping/freight sector. The
company has been nominated to handle personal
effects of diplomats of the Ministry of Foreign
Affairs in Sri Lanka and also of the German Embassy
in Colombo. The German Embassy states that they are
are
satisfied with the performance of the company.

22.FINANCIAL/BANK REFERENCE: Commercial Bank, Foreign
Branch, 21 Bristol Street, Colombo

23.FINANCIAL DATA: TOTAL ASSETS: USD 250,000.00.

KEY COMPANY OFFICIALS: J.S. Dissanayake is the
Chairman of the Company. Mr. Dissanayake is also
Chairman of the associate companies within the group
and is the major shareholder of the group of
companies. Wasantha Talagala is the Managing
Director of the ABC group of companies and is
responsible for the overall performance of the group
of companies, including Transcargo (Pvt) Ltd. Mr.

Talagala was previously the General Manager of the
Sri Lanka Shipping Corporation, a government owned
corporation, and has wide experience in the
industry. Ravi Perera is the Director in charge of
Transcargo and is responsible for the day-to-day
operations of the company.

25.SPECIAL REQUEST INFORMATION: NONE.

MARKET INFORMATION AND OUTLOOK: Transcargo operates
in one of the most competitive service sectors in
in
Sri Lanka. Shipping and Freight Forwarding have
attracted many small-medium companies in addition to
the well-established large firms, due to the
potential of the industry. Sri Lanka's total
imports/exports is valued at close to $11 billion
and is expected to record steady growth in the
context of the present business climate. The ABC
Group, including Transcargo has registered good
progress during the last decade, given the present
level of activities of the company and its current
and planned expansion plans. The Group's
headquarters are located in a four-story building
owned by the company. The head office also houses
subsidiary companies acting as agents for "K" Line
and Hanjin Shipping, an internationally reputed
shipping line and a leading global logistics
carrier, respectively. Transcargo operates as an
independent entity and is located approximately five
kilometers from the head office. The office's of
the Group of companies have a professional outlook
and appear to be well managed. Approximately 100
employees staff the ABC Group of companies in both
locations. Transcargo's bankers have stated that
the company operates a satisfactorily current
account since 1993. The banker's also add that the
directors are experienced in the shipping/forwarding
industry and enjoy substantial credit facilities on
a secured basis. The Association of Freight
Forwarders of Sri Lanka have also favorably
recommended Transcargo and stated that no complaints
or adverse reports have been brought to their
attention regarding the company. They also add that
the Directorate is widely experienced in the sector
and are well reputed in the industry.

27.REPUTATION: Good.

POST EVALUATION: Transcargo is a privately owned
company. The Chairman is the main stakeholder and
working directors are appointed to manage operations
of the subsidiary companies. The financial
information provided by the company may not
accurately reflect the true status of the company,
as it is common practice for firms to hide profits
and exaggerate losses for tax purposes. The company
owns prime property at its present location, which
is a major business center in the capital Colombo
that houses many companies and banks, including IBM
Sri Lanka. The company plans to develop the
property and is looking for investors for a joint
venture project. Subsequent to discussions with
company officials, visit to all companies within the
ABC group and feedback from the industry, banker's
and clients, Post is of the view that Transcargo is
a stable and reputed company operating in the
shipping and forwarding sector.

There are no known adverse local, economic, industry
conditions that will affect a normal business
relationship with an overseas company.

29.RECOMMENDATION: Embassy considers Transcargo (Pvt)
Ltd a good business partner for U.S. companies. For
all commercial transactions, Post recommends
conducting business on a secured basis.

LUNSTEAD
D