Sri Lanka to link with globe for logistics hub
The government is looking at linking up with India’s port development plans to form a US$500 billion economy. Prime Minister Ranil Wickremesinghe addressing the second day of the Colombo International Maritime Conference (CIMC) at the Galadari Hotel on Thursday said that Sri Lanka will support India’s “Sagara Mala” programme of India by using para diplomacy to build ties with key south Indian states. The Southern Indian states and Sri Lanka together could form a US$500 billion economy, he noted adding that ‘we’ can be a port for India.
In reference to the Colombo port city he noted that this area would be established with separate jurisdictions, English laws applied in its own tribunals, arbitration available for off shore activities and provide a logistics and financial hub to fill the vacuum between Singapore and Dubai. The PM observed that though he used to call the Hambantota harbour the world’s largest swimming pool the new government had drawn plans to make it a success both with the port and the Mattala airport as a logistics hub.
In addition, government plans were to get support from India and Japan to develop the Trincomalee port and link it up with Visakapatnam, he said. On this front Hingurakgoda would become a major airport or even the Vavuniya airport could be expanded since land was available there, he explained. Surbana Jurong, a Singapore based consultancy firm has been appointed to look into the development of Trincomalee, he said. Mr. Wickremesinghe also noted that despite Sri Lanka’s geo-strategic location its people are moving out but if the country becomes successful its people will all stay.
Sri Lanka had forgotten like India the importance of trade and as a result had become land-based economies, the Prime Minister said. The Premier pointed out that these plans would be carried out with the Sri Lanka Ports Authority (SLPA and the Civil Aviation Authority as the regulatory bodies. Meanwhile, during the inauguration of the conference on Wednesday night Chief Guest at the occasion Speaker Karu Jayasuriya addressing the delegates highlighted concerns on the decline in volumes handled by the Sri Lanka Ports Authority (SLPA) terminals.
He asserted that it was important that the SLPA should stem the decline and increase volumes despite having achieved double digit growth since 2013. The Speaker also noted that while the Ceylon Shipping Corporation could not be developed as an international shipping line it could however take up a role as a regional national carrier. Mercamarine Group CEO Thomas Kriwat noted that the shipping industry is going through a “devastating cycle” with the bankruptcy of Hanjin Shipping company and even Maersk said to be making losses.
But he noted that it was in this period of crisis that opportunities could be grabbed as it would mean that companies would be less prone to taking risks and act carefully. He called for the industry to be able to identify the threats, note the game changers, establish more legislative changes, more regulation and data with a functioning, competent, efficient authority required to steer Sri Lanka in the right direction. SLPA Managing Director Sarath Premachandra addressing delegates said that a fourth terminal operator would mean there would be a new dimension.
He reiterated his position that the SLPA could not function as a regulator and an operator and that it was imperative to establish an independent regulator or take SLPA out of operation and set it up as a regulator. AP Moller Maersk Group Senior Director Julian Bevis told the conference that there must be changes adopted for the industry to work together in this crisis situation that has hit the shipping industry.
He pointed out that government support economies of scale to bring about necessary changes without reaching out to simply regulation; establishing a regulatory structure in place; in addition to economic cooperation in the region for which the industry needs to step up in this regard. This was the second time the CIMC conference was held in Colombo as part of a 2-day meeting of both international and local shipping industry delegates.