SHIPPING

Magampura Port to benefit from bunkering operations

SBC Group gears to certify quality:

The Magampura Port is strategically located in the South of Sri Lanka, close to one of the major East - West shipping routes in the world. It is ideally situated to take advantage of the many opportunities this provides particularly with regard to the supply of bunkers to passing vessels.

With bunker prices continuing to rise, ship charterers, operators and owners are examining ways of gaining competitive advantage by saving time spent on bunker operations as this will ultimately save them money.

With Magampura port being in such a strategic location, it is well placed to meet these aspirations.

In view of this S B Consortium has taken a strategic decision to engage in bunker inspections and testing for the Magampura port as well as off port areas, SBC group Managing Director Sudath Wijesinghe told Daily News Business.

He said Sri Lanka can be the ideal place to provide fuel more commonly known as bunkers and other rations for ships like fresh water, fruit and vegetables. When a ship embarks upon a voyage, calculations are made in advance as to where and when to take on bunkers.

The ship does not need to store fuel for the entire journey. It may well be cheaper to take on additional bunkers throughout the voyage depending upon where cargo is to be loaded or unloaded. Time is money in shipping circles and the availability of bunkers near to a major shipping route gives ship managers a competitive advantage.

“There is no requirement for vessels to come into port to take bunker fuels. Supply barges can go alongside the vessels and supply them with fuel offshore. Again this saves time and money. SBC as an independent inspection company comes into play at this stage in that it inspects the quality and the quantity of the fuel being bought by the buyer relieving any suspicion of the buyer regarding the quality and quantity supplied. Such authentication is a vital factor in the trading of fuels,” Wijesinghe said.

SBC is a Sri Lankan born inspection company with many internationally recognized links throughout the world. It functions as an independent body and is a recognized party able to certify the quality and quantity of all fuel products. It certifies the quality of fuel on the shore for the buyer as well as after delivery of fuel.

During the transport of the fuel on the supply barge to the vessel SBC monitors operations to ensure that there is no pilferage on any scale.

“We encourage foreign ships to bunker in Sri Lanka as there is no problem with the supply and all operations are independently certified by us. We have set up an office in Hambantota so that there is ready access for us to conduct bunker inspections at the Magampura port. We also have planned to set up a laboratory in Hambantota for this purpose so that fuel can be tested quickly.

The bunker supplies will be done by one of the parties holding a bunker license whereas the inspection will be done by us,” he said.

The vessels will always not call into port but will take bunkers offshore as well. There are many orders received by bunker suppliers and SBC can work closely with them. “We are their eyes and ears during delivery.” Wijesinghe said, “The independent inspection party is vital to ensure deliveries are done in a transparent manner.”

There is significant scope for business growth for the various bunker suppliers. At present SBC is working together with many major bunker suppliers, charterers, owners and operators in Colombo and a blue print of that operation will be put into practice in Hambantota.

“We are already engaged in several bunker operations in Galle and Trincomalee and once the full potential of the Magampura port is realized, I believe that it can outperform Colombo in terms of bunkers supplied and will continue in the future,” he said.

“There are enormous opportunities we can exploit with this venture. Apart from supplying fuel, ship chandlers can provide other rations such as food, drinking water, fruits and vegetables. Crew changing can also be done as the Hambantota airport is being developed. We can provide inspection and testing facilities in these areas also,” Wijesinghe said.

(HP)

Workshop on HS codes

A certificate workshop organised by the Shippers’ Academy -Colombo in association with Sri Lanka Customs will be held on May 4 at Taj Samudra. The trainer is Customs Deputy Director J.A.D.A. Perera.

The workshop will give knowledge to relevant personnel who decide on the HS Codes in companies.

The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization with over 170 member countries based in Brussels, Belgium.

This classification is used by customs officials around the world to determine the duties, taxes and regulations that apply to the product under different trade agreements etc.

The World Customs Organisation (WCO) and International Trade Centre (ITC) modify and make many changes in this HS system.

Traders and all service providers should have a close understanding. HS knowledge will help traders and service providers to break and operate into new markets.

Under the HS Convention, the contracting parties are obliged to base their tariff schedules on the HS nomenclature, although parties set their own rates of duty. The HTS is organized into 21 sections and 96 chapters, accompanied with general rules of interpretation and explanatory notes.

The system begins by assigning goods to categories of crude and natural products, and from there proceeds to categories with increasing complexity.

Somali arrested in US on piracy charge

A 48-year old Somali man was arrested at a Washington-area airport and charged for his role as a ransom negotiator in the 2008 hijacking of a Danish-owned vessel and its American cargo, officials said Thursday.

Ali Mohamed Ali was indicted for conspiracy to commit piracy and other charges, according to a statement from the Justice Department.

Ali was indicted on April 15, but the charges were only unsealed on Thursday, one day after his arrest at Dulles International Airport, the area’s major foreign gateway.

“This case shows our resolve to prosecute pirates and those who profit from crimes on the high seas,” said US Attorney Ronald Machen.

“Those who negotiate and collect these ransoms are every bit as responsible for these crimes as the pirates who commandeer the ships.” Ali will appear before a US federal judge next Tuesday.

AFP