SHIPPING

Colombo can maintain hub status - CASA

Sanjeevi JAYASURIYA

The global downturn has had a significant impact on shipping worldwide. In fact now about 12 percent of the global fleet is idle that means 1.5 million TEUs are idle.

The end the war will help in reducing the cost for owners in due course with the removal of the ability of insurance companies to levy additional premium when calling Colombo, Ceylon Ship Agents Association (CASA) Chairman Nimal Ranchigoda told the Daily News Business.

Regarding the competition the country faces, Sri Lanka’s position is similar to that of Hong Kong to China. The more China grows the more Hong Kong grows.

There is enormous potential for growth in India and Colombo stands to benefit by such growth. The Indian and Sri Lankan ports are complementary of each other and not competitive against each other.

Right now the ISC handles about 13 million TEUs and it is expected these volumes will double in a few years. “Therefore, there is room for both Indian ports and Sri Lankan ports to grow and serve the trade. Thus Colombo will continue to have its role as a hub / relay port to play,” he said.

Due to the global downturn, slow steaming to conserve fuel and the general decline in trade the urgency for deeper draught berths to handle very large container carriers of today is not pressing.

However, we should have had at least one terminal of the new Colombo port expansion project in place by now in the light of the number of large container vessels already in service and in order to stress our strengths as a regional hub port facilitating the movement of containers in the ISC region.

Some pressing needs of the shipping industry particularly in the area of ships’ husbanding, bunkering and ship repairs should be met soon with the development of the Hambantota port while in the long term facilities for container handling can also be envisaged.

There must be a greater impetus for exports, new markets and new production should receive priority if we are to strengthen the economy.

Facilities for vessel husbanding, repairs, casualties, adequacy of spares, are in short supply. Travel time between the airport and ports have to be reduced. Rail transport should be promoted. Coastal shipping has vast potential. Inland container depots in the industrial zones will be required to ease congestion and streamline marshalling of exports and imports.

Ferry services around Sri Lanka as well as from Sri Lanka to other ISC destinations to promote tourism and trade should be launched.

The implementation of Electronic Data Interchange (EDI) and E-Commerce for all stakeholders in the industry to eliminate the need to visit various Government organizations like Sri Lanka Ports Authority and Sri Lanka Customs and other organizations should also be expedited.

Sri Lanka stands to benefit from the enormous trade and movement of cargo from the powerhouses of India and China since it is believed that 40 percent of world trade would be contributed by Asia.

“We should strive in delivering world class services not only in port handling functions but also in other ancillary services which will feature Sri Lanka as a regional shipping/maritime centre rather than just a hub or relay port. The necessary infrastructure and business climate should also be made available,” CASA Chairman said.

Shippers’ Council visits Hambantota Port

Sri Lanka Shippers’ Council will visit the Hambantota Port today for a two-day inspection tour.

The tour delegation will comprises over 60 industrialists. The team will look at the opportunities offered by the Port development in the coming year.

A steady development could be seen due to the development activities taking place in and around the Hambantota port, a spokesman for the shipping industry told Daily News Business.

“There are numerous business opportunities with the port development and the shipping industry could play a pivotal role in economic contribution in this regard,” he said. (SJ)

Lalith Athulathmudali Memorial trophy:

Quiz program for logistics and trade industry

The Sri Lanka Shippers’ Council in association with the International Quiz Association - Sri Lanka Chapter has embarked on a capacity building program. This is endorsed by the Asian Shippers’ Council to build interest, knowledge and skills to the international trade and the logistics community.

A concept originally started in Singapore to develop enthusiasm among the work force involved in the key economic activities of logistics and trade sectors have benefited the Singapore economy to grow as a major international knowledge hub facilitating global trade and transportation.

As you know, too is now working towards this goal as Sri Lanka enters into a new era of economic activity.

The very first event of this capacity/knowledge building program in Sri Lanka is an industry quiz program in order to increase awareness and to build interest in the tools of international trade and logistics among the younger generation.

The event will be held on March 12 at the Hotel Ceylon Continental Colombo, with the participation of 60 teams and over 300 participants to win the grand “SLSC/IQA Trophy on Logistics and Trade”.

The organising committee strongly felt that this event should be dedicated to the late Lalith Athulathmudali who contributed immensely to develop the shipping and the international trade environment of Sri Lanka and created the Mahapola Education Scholarship Program for economically backward student populace in Sri Lanka, which the intellectuals termed it as Bridging Education with Trade.

The Lalith Athulathmudali Foundation has also given its support and has endorsed the project.