SRI LANKA-A FUTURE LOGISTIC HUB OF ASIA

A Study Based On Sea Freight Transportation

Lieutenant Commander (S) FHL Silva

Student Officer LLMC No. 3 1
 Sequence
Introduction
Port of Colombo
Port of Hambantota
Foreign Participation
Total Oceanic Exports, Imports
& transhipments
Global Challenges caused
by Sea transportation
Conclusion
2
Sri Lankas location possesses
a great advantage

3
 According to statistics
of
Sri Lanka Freight Forwarding
Association

108 Freight Forwarding companies

exist in Sri Lanka.

4
 As per statistics of
SLFFA
Total Air Freight Total Sea Freight

Through forwarders Through Forwarders

Others Others

20%
30%

70%
80%

5
6
 According to World Shipping
Council Statistics

Colombo Port was the busiest port

in South Asia, handing 5.19 million
TEUs in 2015. 7
28th Position in World ranking -
2015

8
Importance of Port of
Colombo

9
Colombo Port Before Expansion
GENERAL PLAN OF PORT OF
COLOMBO
South Asia Gateway
Terminal

Jaye Container Unity Container

Terminal Terminal

10
Colombo Port Expansion Project

West

Sout
h

East

11
 South Container Terminal is
the 1st Terminal in South Asia
to accommodate mega sized vessels

12
 Colombo Port Container
Terminal Area
CONTAINER TERMINAL
TERMINAL
AREA
Jaye Container
45.5 Hectares
Terminal (JCT)
Unity Container
1.53 Hectares
Terminal (UCT)
South Asia Gateway
21.87 Hectares
Terminal (SAGT)
Colombo International
Container Terminal 10Hectares
(CICT)
East Terminal
(construction 26 Hectares (1st Phase)
completed) 13
 Competitive Pricing Strategy
of Port of Colombo
Port Devia Time in Vessel Fuel Port Cost of Total
tion Port deviati cost access time in margin
time on time ($) charge port ($) al cost
(Days cost ($) s ($) ($)
)
Chennai 1.10 1.00 24,750 18,840 28,00 22,500 93,730
Chittagong 2.25 1.00 50,625 37,800 22,500 22,500 130,925

Cochin 0.13 1.00 2,925 2,184 22,500 22,500 56,109

Colombo 0.06 1.00 1,350 1,006 10,000 22,500 34,858
Dubai 2.37 0.50 53,325 39,816 5,500 11,250 109,891
JNPT/NSICT 0.85 1.00 19,125 14,280 26,500 22,500 82,405
Karachi 1.33 1.00 29,925 22,344 20,000 22,500 94,769
Mundra 1.30 1.00 29,950 21,840 28,000 22,500 101,590
Tuticorin 0.09 1.00 2,025 1,512 33,500 22,500 59,537

All figures in US$, at 23 knots, at US$ 22,500 per day for a 4,000 TEU vessel, at 120
tpd x US$ 140/t (Source: Drewry shipping consultants Ltd./ SAGT) 14
 Shipping Time from Sri
Lanka
Port Shipping Time
Tuticorin, India 8 hours
Singapore 3 days
UAE 5 days
Sydney 11 days
Amsterdam 18 days
New York 21 days
15
Source: Board of Investment, Sri Lanka
 Aerial View of Port Hambantota
(Magampura Mahinda Rajapaksa Port)

16
Plan - Port Hambantota

17
 Automobile
Transhipment

18
 Automobile
Transhipment

19
According to the SLPA reports

Handled 254 Ro-Ro Vessels (Ships

carrying Vehicles) in 2014.

Total Number of motor vehicles

handled approx. 190,000.

Already planned to be a Transhipment

Hub for other merchandise similar to
Port of Colombo.
20
Once the Project is completed,
the Port of Hambantota will,

Cover 4,000 acres (16km2) of

land.

Accommodate 33 vessels at a
time.

Be the largest port in South

Asia. 21
According to the World Banks
Doing Business Report 2015
Per-container cost for
exporting and importing,

To and from Sri Lanka

US$ 560 and US$ 690

South Asian average

(US$ 1,923 and US$
2,118)

Mumbai (US$ 1,120 and

US$ 1,250). 22
Total Ocean Exports (In TEUs)
up to 2016 2nd Quarter

23
Total Ocean Imports (In TEUs)
up to 2016 2nd Quarter

24
Total Ocean Transhipments(In
TEUs)
up to 2016 2nd Quarter
Transhipment

25
Foreign Participation:
Key to Future
Development

26
Sri Lanka Still lags
behind

27
According to LPI - 2014

28
Foreign Shareholding
of Shipping Agency
Permitted Foreign
Shareholding
Government Share

40%

60%

29
Global Challenges
(in Sea Freight Forwarding)

30
 Environmental Issues

Caused by Sea Faced by Sea

Transportation Transportation
Adverse Weather
CO2 Emission Conditions
Discharge of ballast,
bilge, grey and black
waters
Spilling of oil and
fuel
31
32
 Can anybody guess..!

Environmental issues

What Next?????

33
Security Issues
Ships
Cargo
Personnel

34
Sea Piracy

35
 Sea Piracy

Somalian pirates hijacked oil tanker and its eight Sri

Lankan crew
on 13th March 2017.

36
Cargo Security due illegal items
moving internationally

37
Global approach to maritime
security, vessels and ports

38
Safety Issues
Cargo
Personnel

39
Safe Handling of Cargo

40
Accurate Cargo Weight

41
Illnesses caught by Seafarers

42
Economic Issues

43
Fuel Prices

44
Fuel Prices

45
Conclusion

46
Heavy Traffic in Colombo

47
Its a competitive
position

48
Western Province accounts for
about 50% of GDP

Colombo Port Bandaranayake

International Airport
49
Naval Contribution

50
 References
Fetherston, O.B.E. (1979). Understanding the Freight business (2 nd ed.). London:
Thomas Meadows & Company Limited.

Francou, B. (2000). Freight Forwarders. Unpublished lecture handout, World Maritime

University, Malm, Sweden.

Freight Forwarders: Spediporto links with the industrialists. (2000, May 18). Fair Play.
Retrieved June 2 2000 from Fair Play on Disk.

Issifou, A. (1994). The Role of Freight Forwarding Agencies in a land-locked

developing country. Unpublished masters thesis, World Maritime University, Malm,
Sweden.

Jayasundera, C. (1999, March). Role of a Freight Forwarder what the trade should
know. Paper presented at the Sri Lanka Shippers Council seminar in 1999. Hotel
Ceylon Inter-Continental, Sri Lanka.

Nordh, J. (2000). The Shipping Industry Today: Developments in Freight Forwarding.

Unpublished lecture handout, World Maritime University, Malm, Sweden.

http://gofreightfox.com/challenges-facing-the-freight-forwarding-industry/ accessed
on 5th March 2017.

Sri Lanka Logistics and Freight Forwarders Association, Annual Report 2013/ 2014.

51
http://www.slffa.com/index.php/history accessed on 6th March 2017
Thank you & have a
memorable stay in
Trincomalee
52