#8 KASTURI CHELLARAJA WILSON

MANAGING DIRECTOR, Hemas Transportation Sector, Hemas Holdings

Given the Colombo Port’s history of successful public-private partnerships, Kasturi Chellaraja Wilson thinks its potential should be explored more comprehensively with the current crop of opportunities.

Strategically located at the intersection of Eastern and Western shipping lanes and close to the Indian market, Sri Lanka has the potential to become a leading Asian logistics hub. After years of creaking under the demand, Sri Lanka suddenly now has more capacity that it has managed to fill in Hambantota port, and Colombo.

Logistics; sea and air, is a sizable growth market globally. Valued at about $320bn annually, the industry is growing at an annual rate of 3-10%. The business portfolio of the Transportation
sector of Hemas Holdings PLC comprises aviation services, maritime and logistics.The segment’s profit grew 30% to Rs428m in 2013, contributing 17% of group profit. According to the Ports Authority, Sri Lanka’s container handling throughput at the Colombo Port grew 2.8% during 2013, while transshipment volumes grew 3.4%. Additionally, Hemas logistics commenced operations at its modern container terminal with an annual throughput capacity of over 200,000 twenty foot containers in 2013.
Despite the growth in infrastructure, the lack of consistency and transparency in regulations is discouraging private investment. She says government agencies like the BOI, SLPA and the Inland Revenue department need to work together to provide clarity on issues pertaining to logistic companies operating in the Colombo Port.

Kasturi feels that the vision and strategy for Hemas is to offer value-added services using transhipment volumes and venture into indirect exports in logistics. Hemas aims at growing its logistics operations in import/export and transhipment. The firm will acquire their own 125,000 square-foot ware-housing complex to continue growing their business. “Maintaining ROE at around 30% while growing is the challenge that we face,” she adds.

Kasturi’s role in the company is not operational. Rather, she is the brains behind the sector’s long-term growth and strategic initiatives. Growing at 35-40% year on year, the Hemas’ Transportation sector is focused on growing maritime operations through acquisitions and infrastructure projects. “I enjoy building and grooming teams. I get the highest satisfaction when they do well and the company does well,” Kasturi commented.