Investments need to be planned carefully : SL stands to gain much by developing the shipping industry, says Shipper’s Council chief | Sunday Observer

Investments need to be planned carefully : SL stands to gain much by developing the shipping industry, says Shipper’s Council chief

16 September, 2018
Chairman, Sri Lanka Shipper’s Council, Chrisso de Mel  Pic: Chaminda Niroshana
Chairman, Sri Lanka Shipper’s Council, Chrisso de Mel Pic: Chaminda Niroshana

There will be various investment and multiple opportunities with the development of the shipping industry in the country. One of the business avenues that could be considered is the cruise ship business. There should be a plan for the industry and facilities should be developed. There should be regulations to complement and promote the industry, and not to curb its progress, Chairman, Sri Lanka Shipper’s Council, Chrisso de Mel said.

However, all investments need to be planned carefully and well executed without being a burden on the people, he said in an interview with Business Observer.

“It is imperative that the ongoing projects such as the NES (National Export strategy), the National Trade Facilitation Initiatives taken to set up a Trade Information Portal and the National Single window which falls in line with the World Trade Organization (WTO) Trade facilitation agreement are completed and implemented, keeping to the proposed time lines if we are to gain the advantage and be in forefront of competition as an international trading partner,” he said.

“It is time that we learn from the past and make the necessary changes. We also need to observe and take note of the degradation of human life, and values which have taken place in a subtle manner and has eroded in to the quality of life,” de Mel said.

However, he said that we are now living in a time where “ethics and morals”, are no longer considered virtues, while “integrity and honesty” is not important anymore and “love and respect” to human beings and nature, no longer exist. Due to the decline and demise of these most import attributes, people have not only lost the value and purpose of life, but, also the right spirit in which business should be carried out, he said.

Excerpts:

Q. Your speech at the recently concluded Shippers Council AGM, highlighted some of the key issues of the shipping industry. Since then, there is some progress the country has witnessed in relation to the National Export Strategy. What are the next few immediate steps that the government should take to ensure the industry’s fast growth?

A. The National Export Strategy (NES) was effectively launched last month and with this things are expected to move forward. Another encouraging trade initiative is the trade information portal (TIP) which contains all the information from various government institutions and uploaded and updated.

The National Single Window is also moving slowly, but moving forward in supporting Sri Lanka to be in a better situation in trade facilitation. The country needs a high ranking in the Ease of Doing Business (EDB) ration where the speed in which it does business is the key to attract any investor. Faster we get in to action, faster the growth will be.

Q. We have been talking about making Sri Lanka a shipping hub. Don’t you think we still have a long way to go?

A. There may be governments and there may be change of governments. Sri Lanka needs to have one policy. If we fail to do this in the shipping and logistics industry no action will take place and will not be implemented.

The ground work needed for users as well as operators to touch and feel the benefits to expect modern hub facility without unnecessary fear and corruption as well as policy not been changed hap-hazardly is very important.

We as a nation, we are all aware unlike in a case of manufacture when you can plug and play be in the best position to source your raw material. Shipping location is the main criteria We have been blessed with geography.

However, we have not been taken early advantage to facilitate the shipping trade. The shipping trade is not only for shipping lines. They should be provided with facilities and open transshipment. Today’s supply chain is very diverse. And the extent you can add value is immense. Before we think of adding value, it is not even funny to say that we are lacking basics. With all proper marketing Sri Lanka has as ideal plans of a shipping hub in Asia.

Q. While Sri Lanka is talking about creating a shipping hub, India has taken major initiatives to develop its ports. What impact will India have on the shipping business in the region in the future?

A. As I commented in the previous question, a major potion of Sri Lanka’s shipping business comes from transshipment and the biggest volumes are from South India.

At the rate India is moving forward, if we do not attract main carriers with the kind of service that they expect in terms of cost, efficiency and speed, the country will lose it status.

Because operationally we can be equipped with a modern port, we can boast how well we are doing, but this is also requires other services such as Customs and government services to work at the same speed in order to cross the finish line marking the end of the process. It is very interesting to watch India speeding up. But, rather than worry about India, it is necessary to put our house in order.

Q. How is it going to affect our chance of becoming a major shipping hub?

A. I am optimistic that we have and we could offer a product that is far superior to India whether its port operations, customer formalities and services of other boarder protection agencies.

With the current trade facilitation initiatives in place as soon as possible, we could put Sri Lanka on the map as a better destination than India.

Q. We understand that the shipping industry is also concerned about the delays in operationalisation at the East Container Terminal of the Colombo Port. What are your thoughts?

A. I am glad you asked this question. Rectifying this is a must and this should happen fast. This is like opening up a restaurant and not offering food.

There is bound to be growth if you are doing well. The Minister of Port is fully committed to get this cracking soon. It was reported that a Cabinet Paper was presented with this regard. I understand that CICT is in full capacity most of the time.

Q. With the arrival of CICT managed port in Colombo, the shipping industry’s quality bar is at a high level at present. That has added value to the Colombo Port. How can we get the maximum benefit from the success story of CICT?

A. This is a classic example as how investment of money, resources and capacity should be administered. We have a world-class facility. We are able to run it in an efficient manner giving the maximum benefit to the investor and by doing so eventually to the country. We could do the same with the East Container Terminal. We have a visible example that how ports should be run across the waters and extending increasing facilities with the same or better quality of service. .

Q. Do you think that it is a good idea to bring all shipping and maritime related organisations in Sri Lanka under one umbrella to make a strong voice and big impact? (Entire industry under one umbrella similar to the apparel industry)

A. Unlike in the apparel industry, shipping associations have been formed with different interests and different segments with the emerging of different services which are categorised under different areas. I agree that trade should speak in one voice for the common good.

Service level and policy are things that should blend well and well thought and well understood. All stakeholders and the government should work on common benefit to promote the country.

Q. Moving on, how should we further improve professionalism within the sector?

A. As a nation, we lack discipline. Without discipline, we do not become professionals. We look for short cuts and do not go that extra mile to do things the right way. A professional, though not legally bound, should have morals when carrying out his duties.

Today, most industries and companies are so poor as all they have is profits. What about respect for human lives. Anybody can bend rules according to their whims and fancies.

Some engage in business without any concern or respect for others. For example, look at the state of the vehicles transporting containers. How many are road worthy?

What we fail to understand is there will be accidents or unfortunate incidents threatening to human lives. The affordability of vehicle maintenance and grounding of vehicles to invest in a new vehicle plays a big role in this regard. The vehicle industry does not have regulation stipulated in the case of maintenance. This is all about price over human life.

Q. I remember you making some interesting remarks about establishing discipline and ethics within and outside the industry. How should we get together to make at least a small change as professionals? How can we convey this message to the next generation of shipping and maritime professionals?

A. It is time to take open action on this matter. For example you got to resolve together of understanding within corporate, associations and also collaborate with local authorities including the police and Sri Lanka Ports Authority to ensure that all vehicles are road worthy and all necessary safety measures are in place.

We must work together to eliminate corruption, inefficiencies if we are to stand a chance of been competitive in both domestic as well as international business in comparison with other countries.

Q. What are your impressions about new port development projects such as Hambantota and Tricomalee?

A. We are very late. But, better late than never. We have limited resources as long as we can develop with all we have in the country it will benefit.

We need a well developed plan and it should be executed well. It can be done like as in the past where we have created marvelous things. In the recent past, we had not have plans for things that we built.

Look at the water wasted. We are an island nation surrounded by beautiful beach front, We can consider cruise business.

Shouldn’t our beautiful destination be a hotspot for foreigners. We can engage in providing service to Maldives, Hong Kong and Macau. In these countries a ferry service operate every half an hour moving people from point to point. We can do similar things with India and Maldives.

Our tourism industry will boom with that kind of service. We also could look at a fast ferry service from Trincomalee, Galle and Colombo. See the benefit we have now with the Southern highway. One can travel to Galle and Matara within a few hours. Having multiple options is always a good thing. When there is a train strike the commuters are held up. Why not have a fast boat service touching Wellawatte and Bambalapitiya?

Q. What kind of investment opportunities are you (shipping community) looking at when these developments take place?

A. There will be various investment and multiple opportunities with the development of the shipping industry in the country.

The one of the business avenues we could consider is the cruise ship business. We need to have a plan for the industry. We need to develop facilities. We need regulations to complement and promote the industry, but not to curb the progress.

All investments need to be planned carefully and well executed without been a burden to the people.

Q. How do you see the country’s shipping industry over the next five years?

A. When we talk about the shipping industry, we can not forgot the export and import sectors and shipping liners which stimulate the growth of the shipping industry.

Shipping liners have gone through difficult times with several shipping liners shutting down. Some of them have sold and others have merged together.

In this backdrop, number of liners owning ships have reduced. With the advent of this, people have been speculating that the situation will be worse in the future.

Within a short time there will be more changes with lesser liners with high rates. Certainly that will bring the market to a situation where rates will further go up.

The demand for the service will also rise opening new opportunities for new liners to increase. I predict that in the next five years more players in the market space and the rates to come down. 

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