War risk surcharge:

Lanka seeks de-listing

Lloyds team to visit country next month:

Sanjeevi JAYASURIYA

Sri Lanka needs a strategic marketing arm to brand and to build and consolidate Lanka’s country’s position in the global scenario. The Colombo Port is the best Port in South Asia.

The Shipping and port sector is looking at a bright future beyond 2010, Asian Shippers’ Council Secretary General Rohan Masakorala told Daily News Business.

Sri Lanka is anticipating a de-listing from the war risk surcharges with the expected visit by the Lloyds inspection team in February.

The Sri Lankan delegation that visited London recently invited the Lloyds team to look at the ground situation to conduct an assessment. The decision will be known by March, he said.

This will be a positive development for the local shipping industry and for the tourism sector. It will create a better environment for investors and travellers and will provide a growth momentum, he said.

The global shipping industry performance for the last year was not up to the mark due to economic downturn. There was a downfall in trade volumes in the whole of Asia and the rest of the world. Sri Lanka’s shipping industry too recorded a downfall in trade volumes last year. However, this is not an alarming situation as it was the global trend, he said.

Therefore, the shipping industry will have a lot of challenges this year and an immediate upward trend could not be expected. The reforms introduced by the Sri Lanka Ports Authority will facilitate industry growth as steps to purchase equipment and measures to improve productivity will augment the shipping industry, he said.

The opening of the Northern Entrance is a boost to the industry and would ease the congestion at the Port which would be attractive for the vessels. The turnaround time for ships will be less. The bunkering service was improved after liberalization and this will result in an increase in the number of ships calling Colombo Port, he said. With the development at the Colombo South Harbour, the capacity will increase and it will encourage more ships to the port. The decision to construct Hambantota Port is timely and will facilitate bulk, general and cargo carriers.

The country should focus on other services related to shipping such as ship services, repairs and storage facilities to attract more business, Masakorala said.

“It is important to train skills necessary and have a proper pricing mechanism. We need to be competitive and should not be complacent. A fast delivery system and quick decision-making process would enhance the efficiency and the taxes must be on par with Singapore and Dubai ports. We need an attitude change and become service and profit oriented,” he said.

The modernization of the system and introducing paperless commerce will increase competitiveness. However, it is necessary to change the mindset on working and contributing to the national economy for the country’s overall progress, Masakorala said.