Shipping

With construction of Hambantota Port:

Bright outlook for shipping industry

Sanjeevi JAYASURIYA

Sujeiva Samaraweera

There is a bright outlook in the country's shipping industry with the construction of the Hambantota Port. The first phase of the construction is due to be completed by 2011 with an investment of US $ 450 million and the Port will be one of the best Port Cities in the world, said Chairman, Shipping, Ports and Aviation Committee of the National Chamber of Commerce of Sri Lanka Sujeiva Samaraweera.

The Hambantota Port will have a total capacity of 20 million TEUs annually and will be an industrial port. It will concentrate on five areas - gas powered power plant, ship repair unit, container repair unit, oil refinery and bunker terminal to add value to the port, he said.

The port construction will open an avenue for development in the areas of generating employment, act as an entry point to the country, increase economic activities and uplift living standards of people in Hambantota, Matara, Moneragala, Ratnapura and the Eastern Province would benefit from this development project, Samaraweera said.

Around 100,000 direct and indirect employment opportunities are expected to be created when the project is completed. There will be freight forwarding companies set up in the area and there will be a demand for technically skilled people to facilitate the services. The port is set to be the best regional port in the country, he said.

The port will create numerous opportunities in the export and import sectors and related industries such as warehouse, packaging and storage with the latest technology in place. There will also be potential for tourism sector and its development, he said.

The Government is not only concentrating on the development of Hambantota Port, but also on ports at Oluwil, Galle, Trincomalee and Colombo South Terminal. The chain of coastal harbours in the country will create a Southern-Eastern link.

The vision of the National Chamber of Commerce of Sri Lanka is to take development to rural areas to help set up industries. With development activities taking place it will increase economic activities and thereby support rural economic growth, he said. The Government's effort to formulate a national shipping policy is timely and commendable. All stakeholders were consulted and the policy document consists of new standards connected to sea industry.

Due consideration has been given under the policy to develop Sri Lanka as a leading port and a shipping service provider to enable the significant contribution to the GDP. This will be possible with the emphasis to establish state-of-the-art ports and commitment to excellence to set up new standards with continued improvement in all aspects of the shipping industry, Samaraweera said.

The national shipping policy focuses on the huge potential for transshipment, bunkering, ship repair and ship building. The NCCSL, calls upon the Government to consider a downward revision of the Terminal Handling Charges (THC) to mitigate and help exporters. We have over 2,000 members in the export and import sectors and they will benefit immensely as Sri Lanka's THC is one of the highest in the region. The Government should look into this matter and reduce the charges to be in line with other countries, he said. "We support the Government's effort to rebuild the nation. Industries and exports play a vital role in this regard. If the Government decides to reduce the THC our products will be competitive in the global market. Attention needs to be paid for transshipment and local cargo," he said.

The Government’s initiative to develop ports has a direct impact on attracting investments

With the completion of the South harbour- the largest container terminal expansion project with the facilities available deep draft ships, the container capacity will be over seven million TEUs in the coming year. This will provide facilities and flexibility for deep draft ships calling at the Colombo Port, he said.

The development of Ports will facilitate economic development in the country and would also provide a cosmetic value and an added advantage in commercial activities.

With the recent developments and the peaceful environment most countries are looking at Sri Lanka as an investment opportunity. We need to have solid logistics and a proper supply chain management to attract foreign investments. The road network, transportation and infrastructure facilities would enable the investors to consider investment outside Colombo. This would benefit the rural community, he said.

"We need to position ourselves to encourage investors to come to Sri Lanka and to showcase our capabilities.

The Government's initiative to develop ports has a direct impact on attracting investments by complementing transport infrastructure such as the Southern expressway to Hambantota and expansion of the rail network from Matara to Hambantota.

This helps to overcome the land transportation barriers and make Sri Lanka a logistic hub in the region. It would also provide benefits from the mega projects, Samaraweera said.

Ships in merchant fleet

Container ships

Container ships carry most of the world's manufactured goods and products, usually through scheduled liner services.

Bulk carriers

The work horses of the fleet, these transport raw materials such as iron ore and coal. Identifiable by the hatches raised above deck level which cover the large cargo holds.

Tankers

Transport crude oil, chemicals and petroleum products. Tankers can appear similar to bulk carriers, but the deck is flush and covered by oil pipelines and vents.

Ferries and Cruise ships

Ferries usually perform short journeys for a mix of passengers, cars and commercial vehicles. Most of these ships are Ro-Ro (roll on - roll off) ferries, where vehicles can drive straight on and off, making it a speedy and easily accessible way to travel.

Delmege appointed agent for Denmark's DSV air and sea

A member of the highly diversified Delmege Group, Delmege Freight Services has been appointed the exclusive agent for Denmark's global freight forwarding network, DSV Air and Sea.

Delmege Freight Services will thus perform the services of ocean freight FCL and LCL shipments, air freight consolidation, breakbulk and project cargo shipments.

Director of Delmege Freight Shamil Mendis said that DSV together with its partners and agents have offices in more than 110 countries manned by 23,400 employees, which makes it a truly global player.

"Our valued clients, importers and exporters therefore are assured of a highly professional service extended by the entire DSV network.

This in effect gives them the use of one of the largest worldwide networks and highly competitive rates for sea and air freight as a result of the volume that DSV is able to command with shipping lines and airlines."

With DSV's three divisions offering premier end to end transport and logistics solutions, its globally present air and sea division is augmented by the group's comprehensive road and logistics network worldwide.

Mendis said that DSV infuses the best expertise to handle the entire supply chain due to a constantly improving modernization process at its service levels. "DSV uses state of the art IT for its cargo process and its rapid expansion has been amplified through acquisitions over the years, including those of Samson Transport, DFDS Dan Transport, Frans Mass and ABX Logistics."

DSV is also listed on the NASDAQ OMX in Copenhagen and offers a sustainable logistics system and innovative solutions to a range of industry and services from general cargo, to perishables, oversized, pharmaceuticals, hanging garments and even customized transport solutions with internet based cargo tracking and booking systems and multiple consolidations.

"With this foundation, DSV constantly develops and improves its business concepts to ensure that its products and services always meet the current safety and environmental standards, as well as the standards of financial and social responsibility."

The Delmege Forsyth Group dates its origins to 1850. The Group is engaged in a range of commercial activities that broadly include the Import and Export Trade, Shipping Agency and Ancillary Services.