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Viewing cable 04COLOMBO1247, ICP FOR Certified Transportation Network

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Reference ID Created Released Classification Origin
04COLOMBO1247 2004-07-28 06:34 2011-08-25 00:00 UNCLASSIFIED Embassy Colombo
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 
 
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