INSEE Cement signs MOU with Hambantota International Port to improve supply chain efficiency
Fri, Nov 26, 2021, 10:13 am SL Time, ColomboPage News Desk, Sri Lanka.
Nov 26, Colombo: The Hambantota International Port Group (HIPG) Thursday signed an agreement with INSEE Cement, the leading cement manufacturing company in Sri Lanka, to ensure the efficient transfer of raw materials to their factory in Galle, via the Hambantota Port. This will have a positive impact on the operational efficiency.
The agreement was signed between Gustavo Navarro, chief Executive Officer of INSEE Cement and Johnson Liu, CEO of HIPG at a ceremony held at The Hambantota Maritime Center.
CEO of HIPG Johnson Liu expressed his appreciation of the partnership with INSEE saying, it would be of great mutual advantage for both parties. “INSEE Cement was Hambantota International Port’s (HIP) first customer for dry bulk cargo and we greatly appreciate the trust they placed in us. We have worked with them from 2018 and have been able to greatly increase our productivity in handling dry bulk volumes. Recognizing the value the companies bring to each other, we decided to strengthen the partnership by entering into an agreement that will continue creating win-win opportunities that will be of mutual benefit.”
The CEO added that the port handled a dry bulk volume of over 1 million metric tons in 2021, for the first time exceeding the 1 million range, under a single customer, which was a milestone achievement for the port.
Gustavo Navarro, Chief Executive Officer of INSEE Cement said that working with HIPG has been a great advantage for them. “Due to the limitations we have experienced in our previous operations, we couldn’t bring bigger vessels with larger volumes. HIP has been a great business partner for us and the port came up with some creative solutions to get our raw materials delivered efficiently and in a timely manner which made a positive impact on our operation. This has not only benefited our company but also the local economy in terms of dollar savings because it reduced freight costs we otherwise paid to foreign vessels.”
Thusith Gunawarnasuriya, Director Procurement & Logistics of INSEE Cement further mentioned with HIP they were able to use larger vessels to carry their raw materials due to the port’s deep draft facilities. “HIP’s productivity levels are impressive and the quick turnaround helped us to achieve economies of scale and increase our production levels which in turn increased volumes for the port. This not only benefited Insee but our end user.”
Lance Zuo, General Manager Commercial and Marketing of Hambantota International Port Group (HIPG) says, “INSEE was of great assistance in developing the dry bulk cargo segment, they also brought in a dust controlling mechanism and effective implementation ensures operations are carried out in an environmentally friendly manner. Our operational staff were of tremendous support and efficient planning of manpower such as stevedoring and higher levels of communication between logistics providers and the port contributed to the success of our operations which has benefitted Insee, and we will continue to provide the same high quality of service,” he adds.
The agreement with INSEE is a stepping-stone for the port. HIP is fast positioning itself as a fully functional multi-purpose port with continuous training and testing of its systems for optimum efficiency, which is part of the DNA of all CMPort operations across the globe.