SLFFA holds 41st Annual General Meeting

• Ports Shipping and Aviation Minister Nimal Siripala De Silva  lauds role of SLFFA and makes key recommendations
• Assures to resolve problems highlighted
• Says strengthening private sector is important and avoiding monopolies as far as possible
• SLFFA Chief warns Cargo Account Settlement System would deeply hamper progress of SME exporters
• Laments Import DO situation has been in limbo for eight years
• Urges proper study and ensure fast implantation
• Claims capping foreign participation at 40% has discouraged investments
• Colombo West International Terminal CEO says to commission Phase 1 of the container terminal in Q3 2024

The Sri Lanka Logistics & Freight Forwarders Association (SLFFA) held its 41st Annual General Meeting on 23 September 2022 at the Shangri-La Hotel, Colombo.

The Chief Guest for the occasion was the Minister of Ports Shipping and Aviation Nimal Siripala De Silva, Special Guest Minister of Power and Energy Kanchana Wijesekara, and Guest of Honour Colombo West International Terminal CEO Harikrishnan Sundaram.

HTL Logistics Director Dinesh Sri Chandrasekara was re-elected for the second consecutive year as the Chairman for the period 2022/2023 whilst Expelogix Director/ CEO Channa Gunawardena and MAC Supply Chain Solutions Managing Director Andre Fernando were re-elected Vice Chairman and Treasurer respectively.

The Executive Committee elected for the period 2022/2023 comprises Aitken Spence Cargo, DHL Global Forwarding Lanka, Famous Pacific Shipping Lanka, Foreway Logistics, Freight Links International, GAC Logistics, Salota International, Scanwell Logistics, Shermans Logistics and Speedmark Transportation Lanka. 

The Chief Guest Nimal Siripala De Silva in his address recognised the contribution of professional organisations such as SLFFA toward uplifting the Sri Lankan economy through local and global interactions, generating valuable foreign exchange revenue for the country as a result.

Admitting that there have been shortcomings and missteps made by policymakers in the past, the Minister stressed the need to place all those firmly in the rear-view mirror and proceed with verve on a mission of rejuvenating the Sri Lankan economy.

Highlighting that SLFFA is a body that is over 40 years old and comprises professionals who have committed themselves towards uplifting the country, producing many eminent personalities, and boasting an excellent track record.

He particularly emphasised that SLFFA’s setting up of a training centre for the industry to encourage more youth to join it and grow is a laudable one. Building on this point, the Minister highlighted that the private sector has, and continues to play a major role in the industry, and the country.

While the Government sector is not useless, he emphasised, there is much reform to be done there. He firmly emphasised that strengthening the private sector is important and avoiding monopolies as far as possible.

Taking some examples, the Minister pointed out that in the Port of Colombo, there is healthy competition among the SLPA, SAGT and CICT terminals, and the upcoming Adani Group is another example of a public-private partnership in action. He mentioned that they envision a similar model for SriLankan Airlines.

The Minister acknowledged that there may be some resistance, which he termed as jealousy, over such developments, and that stems in part from inconsistent taxation policies. He stated that these need to be addressed and that some of the tax policies adopted in the past contributed to the country’s deterioration.

The Minister further acknowledged that existing facilities, such as those in the Colombo Port are in need of upgrading and improvement to keep in line with regional and global standards and stated that they have a road map for these, as well as sourcing of the necessary foreign exchange associated with such upgrades. Similar plans are in progress for other ports such as those in Trincomalee and KKS.

Speaking about the current cargo and Customs systems, the Minister admitted that the current systems rely on a colossal number of documents, and moves are underway to digitise and streamline it, with curbing corruption as one of the objectives.

Capping off his speech, the Minister stated that it is not only a change in laws and regulations that is required but in the attitudes of the public as well, if the country is to change for the better. He stated that professional associations such as SLFFA are best poised to foster the correct attitudes among professional, qualified, and experienced persons in their relevant industries.

Stating that he had carefully listened to and understood the problems highlighted by SLFFA and promised to seriously look into them to the best of his capacity.

The Guest of Honour Harikrishnan Sundaram stated that: “CWIT will be a state-of-the-art container handling facility with modern equipment and latest technology. They are focusing on the highest level of automation in the terminal with yard and gates fully automated and quayside semi-automated with an option to go in full. CWIT will be the first automated & green terminal in the sub-continent and will have the highest capacity amongst the existing facilities in the Port of Colombo capable of handling three large vessels simultaneously thereby adding about 3.2 million TEUs per annum, which will ensure Port of Colombo to elevate its position further in terms of connectivity and increase the frequency of long-haul services thus enabling the trade to reach the global markets. In spite of the current challenges, CWIT is committed to commission Phase 1 of the container terminal in Q3 2024 adding 1.6 million TEUs to the Port of Colombo.”

SLFFA Chairman in his speech stated that it had indeed been an eventful year, referring to the economic crisis gripping Sri Lanka in a new crisis situation, just as the Covid-19 pandemic’s effects were wearing off and companies were adapting to the new normal.

Developing an interesting point, the Chairman stated that the industry and its champions found themselves thrust into the role of Ambassadors, rather than Logisticians. 

Explaining his statement further, he reflected that logisticians regularly deal with foreign parties across the globe, and in addition to negotiating key industry factors such as space, rates, and credit, they found themselves needing to re-assure these global players that Sri Lanka is not in such dire straits as portrayed by some media outlets, but that the business community as a whole is working hard towards restoring normalcy, amidst all the professional and personal hardships faced.

Chairman stated that freight forwarders have been engaged in the process of buying and selling for a long time and that it is time to bring creativity and value addition to the table and ensure that better solutions are being offered to the customers. It’s time to capitalise freight forwarders strengths to become dominant players in the subcontinent.

The Chairman also noted that Sri Lanka needs to be converted from transhipment port status, into a bonafide international logistics hub. He further pointed out that capping foreign participation at 40% has discouraged investments, and regulatory frameworks in place need to be updated in order to accommodate new world requirements. In reference to the most recent Logistics Performance Index, India ranks in 44th position, where the Government of India had announced in their national logistics policy that they are committed to making it to the top 30, whereas, for Sri Lanka, there has been no Government support to move from 93rd position in spite of the Colombo Port being ranked 25th by the World Shipping Council.

Appealing to the Minister de Silva, the Chairman brought up the issue of the Cargo Account Settlement System (CASS) and reiterated that it would deeply hamper the progress of SME exporters and added Sri Lanka’s competitiveness in world markets would be severely diminished.

He appealed to the Minister to place the country’s economic policy ahead of the national carrier in this regard and pointed out that there are several valid reasons why the implementation of CASS would cause more harm than benefit to Sri Lanka.

Citing the example of India taking IATA to Courts by the local Logistics Associations there due to CASS being seen as an unfair practice, he further urged the Minister to not implement it, for the sake of the country and economy.

The Chairman touched on the issue with the Import DO (Delivery Order) situation, which has been in limbo for nearly eight years without resolution and urged for a proper study to be carried out, and trading terms correctly set and implemented, as there are players who follow the rules and others who do not, sans consequence.

He also said SLFFA Cargo Services is facing an issue with securing clearances to operate an off-port operation, despite necessary approval being granted two years ago. He requested the stakeholders to kindly facilitate this.

He also took the opportunity to state that while SLFFA strongly believes in the benefits of privatisation, they earnestly request the authorities to be mindful of ensuring that monopolistic situations do not arise and that equitable measures are taken to enable healthy competition. He mentioned the sphere of ground handling and SLFFACS as an example of this working well.