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| Sunday, 11 August 2002 |
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| News Business Features Editorial
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Cey-Nor joint ventures with private sector The Cey-Nor Foundation will form joint ventures with the private sector in the near future to manage its resources.
Cey-Nor Chairman Sarath Kongahage said they hope to divest a 60 per cent stake while retaining the balance with the Government. "We are confident that we will be able to get into joint ventures in the future," he said. The market share for Cey-Nor nets and other assets is more than sufficient for an investor to come into a joint venture with the foundation. Kongahage said: "With joint ventures, we can avoid the cumbersome procedure of privatisation while ensuring job safety. In addition, we can move into business immediately by changing the structure of the company." He said the organisation is a market leader in manufacturing fishing nets with a market share of 25 per cent. "We have a very good reputation and demand for nets." Mr Kongahage said that with the opening of the North East after the initiation of the peace process, the demand for nets has increased. "We are unable to cope with the demand. We need capital to purchase the raw materials," he added. "The foundation is capable of increasing the market share to 35 per cent, but the lack of working capital is holding us back. At present, we produce 180,000 kilos of nets, but have the capacity to produce 320,000 kilos. With aggressive marketing, we can even produce nets for the international markets."The boatyard at Mattakkuliya, traditionally manufacturing 45 footers, is looking at alternatives as the production of boats is done according to the demand. The alternatives are fibre glass products including boxes to carry fish, wallam (a kind of long boat) and furniture. The box to carry fish has a lid and a separate compartment for the knife.
The foundation hopes to complete the manufacturing of 35 wallam by September. The Government policy is to encourage deep sea fishing, but 45 footers are not adequate. Therefore, there are plans to introduce 55-60 foot vessels equipped with refrigerators and modern equipment. "The Ministry plans to manufacture about 100 boats per annum, but we lack the funds and expertise to do it on our own. Therefore, we will encourage investors to come for investment," he said. Mr Kongahage said an investor can also invest in any other venture through the Cey-Nor Foundation. The foundation owns the gill fish net factory at Lunuwila and another factory at Weerawila. It is in the process of asking for the land at the Karainagar boatyard from the Navy who occupies it at present as it intends to start the boatyard again. The Government is also calling for local or foreign investors to come into joint venture partnerships with the Ceylon Fishery Harbours Corporation, Ceylon Fisheries Corporation and the National Aquatic Development Authority. The reason for the move is twofold. The Government is of the view that the private sector is more dynamic and can deliver the goods; while it also accepts that the Treasury is short of funds to develop the vast potential of the industry. |
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