Prima Ceylon Ltd., (PCL) has launched a direct flour distribution scheme. This development is made possible by the ilberalisation of the distribution of wheat flour, which allows PCL to distribute freely.

Elaborating on the main objective, Primus Cheng, the company’s chairman and CEO said: "PCL’s direct flour distribution scheme will be deployed mainly for long distance destinations, where it would be most cost-effective. This has the great advantage of evening out the previously disparate transport costs over different distances. For example, the transport cost to Colombo would be reduced by more than half compared to the pre-liberalisation period."

Cheng added: "Such lower cost would be passed on to the consumers, with the result that retail prices of flour in various parts of the country would be more uniform."

PCL will be deploying 25 brand new prime movers fitted with container trailers, with an investment of Rs. 220 million. The prime movers are state of the art model from Mercedes Benz , Germany, while the trailers were manufactured by Dutch Lanka Trailers Ltd., and the containers, sourced locally.

The direct flour distribution scheme is a unique self-employment scheme. Driver-operators selected to participate can, not only have the same income opportunities without having to go abroad, but also be able to own the prime movers after five to seven years depending on their performances.

Commenting on the driver response, Lin Hsin Hui, general manager PCL said: "The response was overwhelming. We have tested the skills, experience, health and attitudes of the driver-operators, who were selected from 650 applications received. Careful selection was made to ensure that these persons would take care of the prime movers whilst there is an incentive of future ownership as well. In addition to being technologically advanced for a smoother and safer drive, these vehicles also have a bed in an air-conditioned cabin, so that the drivers and co-drivers can rest comfortably in turn, to ensure safe journeys especially on long trips."

Lin added: "The drivers have been provided with advice from the traffic police on safe and disciplined driving habits as well."

"This self-employment cum owner-operator scheme will encourage individual entrepreneurship, which will in turn raise transportation productivity. PCL operates this scheme on a non-profit basis. All cost savings and benefits derived will accrue to consumers," emphasised Cheng.

The direct flour transportation scheme is yet another contribution to the industry by Prima, which in 1977 became one of the largest private foreign investments (US $51 million) to be made in Sri Lanka. The mill in Trincomalee as a single unit under one roof is the biggest in the world and last year PCL invested a further US $ 65 million (paid to the Government) to convert its operations from a Build, Own and Transfer (BOT) to Build, Own and Operate (BOO).

This year PCL begins investing US $ 30 million as part of a modernisation and expansion programme which includes doubling the silo capacity to 200,000 tons, setting up an additional mill with the latest technology in the milling industry, improvement of the jetty and additional wharf facilities.

The presentation of the prime movers to the selected 25 driver-operators would be made on Friday in Trincomalee to coincide with the Industries Ministry organised Yuga Dekma - the mega five-day industrial exhibition.

Sri Lanka and PCL will be the first in South Asia to use prime movers manufactured by Mercedes Benz, and this makes the initiative regionally important.

"When we first came to Sri Lanka in 1977 perhaps many thought Prima will not be a long-term player. History is a clear testimony that we have stayed and served Sri Lanka for 25 years and our investments last year and more planned this year confirm we are a long-term and committed investor in Sri Lanka. We will strive to continuously innovate and add value to our customers and enhance our contribution to the economy," concluded Lin.

(Press Release)