Sri Lanka Logistics & Freight Forwarders Association (SLFFA) Cargo Services is currently evaluating a bonded transport facility, between Mattala Airport and the BIA as well as the Port of Colombo.
“This is timely as Mattala Airport is being developed to be a hub for cargo,” said Incoming Chairman, SLFFA Dinesh Sri Chandrasekara at their 40th Annual General meeting.
He also said that Sri Lanka has what it takes to make Sri Lanka a world-class hub next to Singapore and Dubai. “SLFFA, along with other stakeholders can make this a reality; we should work together with our experts, industry specialists, academics and successful entrepreneurs, to create a ‘think-tank’ and formulate a roadmap to reach the hub status.”
As per the World Bank Logistics Performance Index, Sri Lanka is ranked 94th out of 160 countries. “This is despite the Port of Colombo ranking 23rd amongst the busiest ports and 15th among the best-connected ports in the World. Countries which are poorly connected and even landlocked have better rankings. “Our logistics industry is well-ahead of our regional competitors, with many of our companies doing exceptionally well. Such a low ranking is actually baffling and Sri Lanka has to take its fair place on the Index. It’s simply a matter of changing their perception.”
“Alongside these efforts, we must also continue to pursue the single window platform, to connect all agencies online and in real-time. As all of you know, we have gone down this path before, on many occasions, since 1996. Yet, such a platform has never materialised. In fact, this is our industry’s biggest roadblock, bringing down our level of efficiency and burdening our transactional costs. With COVID-19 rampant, this is an ideal time to take this up with the relevant authorities, trusting that they will heed our call as this is not just for our industry, but also for the sake of our economy.”
He said the first quarter of the last financial year was the worst-hit, with business at its lowest. “Come second and third quarters, business volumes improved; yet, imbalances within the shipping industry continued, leading to significant mismatches in demand and supply of capacity, and record-high freight costs. Working capital constraints are weighing down on our industry and the present foreign exchange crisis is further impeding business prospects.”
“On the ocean freight front, it is high time that SLFFA Cargo Services ventured into setting up an off-port facility—to enable MCC operations, import LCL and transshipment facilitation.Moving to e-freight, specifically on the E air waybill project, our association has also been collaborating with CCN for over a decade. The cost has been significant, almost over Rs. 20 million.”
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