shipping

Colombo Port gearing to become a logistical hub

The Colombo Port is now in the process of gearing itself to become a logistical hub as it sees this as a must if it has to cater to the needs of modern day shipping, states SLPA sources.

The SLPA which has already commenced construction work of the Colombo Port Expansion Project (South Harbour) is all set to engage a formula, which will take the port's management and logistics sector into the 21st century.

"An importer or ship-owner elects a port taking into account three conditions: its location, its logistic character i.e. its capacity to offer extensive value added services, and finally its competitiveness whose main components are the productivity levels and cost of such services. Therefore, ports find themselves with the need to be able to adapt rapidly to the requirements of their clients, extending and improving their offers of services and promoting quality" says Captain Nihal Keppetipola the newly appointed Managing Director of the SLPA. The Colombo Port has a very competitive position when it comes to its location, efficiency and its tariffs but we have to develop vertically and laterally in the logistics areas" he says.

The new RFP (Request for Proposals) for the south container terminal on BOT terms which is to be floated soon will primarily take into consideration this component which means that bids will be scrutinized on the model they will offer for the new south harbour terminal to realize this need.

This multimillion-dollar project, which initially had some hiccups in getting off the ground and was cancelled last year due to inevitable reasons, is being redrawn with new parameters and will have a set of new clauses. A few of the clauses from the old document, which caused confusion earlier, have been rectified. "Some changes have to be made to the documents purely to safeguard national interests as we want to see all the best port operators in the world place their bids on our table. However, we have to put some clauses in order to get proper assurances from whoever will qualify to build and operate the South Container terminal".

When referring to national interests in connection with the new RFP, Nihal Keppetipola says what the SLPA is looking at most importantly is for the best package they could get both for the Authority as well as the Country - which would mean securing the leading position in the region that Sri Lanka can hold as a logistical hub.

"In the recent past there have been several media reports questioning the future transshipment business of the Colombo Port and the possibility of us loosing out to ports developing in the Indian subcontinent. Despite the slight delays in the bidding process we can give the assurance that the SLPA is still on track and on top of the situation and able to face any future competition," he says.

However, the MD of the Ports says that the SLPA would be mindful of those operators who are managing rival ports in the region, when choosing their new partner for the port extension. "We want to keep the port of Colombo as competitive as possible for the feeders and main liners. Our Port is a national asset and cannot be considered purely from the point of view of a business venture but needs to take into consideration the macro economics of the country."

Keppetipola further said that keeping in line with the current and future global maritime demands, with the new development of the Colombo South Harbour Sri Lanka would be catering to super post-Panamax ships and would be transformed from the current transshipment hub to a total maritime logistic hub.

Despite what most may think, our Colombo harbour's work force is one of the best in the region and our port is known to work with the least amount of disruption, which is very much appreciated by the shipping lines operating with us Keppetipola says.

Cadet training course

Sri Lanka Ports Authority, Mahapola Training Institute in collaboration with the Ceylon Shipping Corporation will commence a three-year cadet training full time programme next month.

The course will consist of theory, practicals and on board training. In the first two years theory and practical lessons will be conducted while in the third year the Ceylon Shipping Corporation provides on board training, said Chief Training Manager Mahapola Training Institute Engineer K. A. Ansar.

He said that the school leavers who had passed in six subjects with credits in Mathematics, Science, and English in the GCE O'Level and three passes at the GCE A'Level science stream in one sitting or passes in physics and combined mathematics are eligible to apply for this programme.

He said that the number of students following the programme will be limited to twenty four (24) students as decided by the Institute. The programme will be conducted according to International Maritime Organisation (IME) and Standard Training Certificate Watch Keeping (STCW) recommended modules, he said. Diploma in Marine Engineering which is an internationally reputed marine qualification will be awarded at the end of the program to successful students.

Asia's shipping market rapidly deteriorating

Asia's shipping market has worsened rapidly as a global economic slowdown and a credit crunch reduces demand for maritime transport, Standard & Poor's said Tuesday.

"The shipping market has deteriorated rapidly over the past couple of months amid weakening marine transport demand," the credit ratings agency said in a report.

Soaring fuel prices have put additional pressure on shipping companies in the region, with container operators suffering in particular, especially on routes from Asia to North America and Europe, it said.

"Reflecting the economic slowdown in the US, trading volumes from Asia to North America posted double-digit declines in June and July. Most trunk route container operators are suffering from severe earnings deterioration as a result of lower cargo volume and higher operating costs," it said. AFP