International Shipping and Logistics: The Perspectives of

Sri Lanka

Dr. Lalith Edirisinghe, PhDAssociate Dean, CINEC Maritime Campus

Presentation to the Institute of Developing Economies

Japan External Trade Organization (IDE – JETRO), Japan

at University of Colombo

MARITIME LOGISTICS PERFORMANCERank Port 2015 2014 2013 2012 2011 1 Shanghai, China 36.54 35.29  33.62 32.53 31.742 Singapore 30.92 33.87  32.6 31.65 29.946 Busan, South Korea 19.45 18.65  17.69 17.04 16.189 Jebel Ali, Dubai, United Arab

Emirates15.60 15.25  13.64 13.30 13.00

12 Port Klang, Malaysia 11.89 10.95  10.35 10.00 9.6017 Tanjung Pelepas, Malaysia 9.10 8.50   7.63 7.70 7.5020 Keihin Ports, Japan 7.52 7.85   7.81 7.85 7.6422 Laem Chabang, Thailand 6.82 6.58   6.04 5.93 5.7326 Ho Chi Minh, Vietnam 5.31 6.39 5.96 5.19 4.5327 Tanjung Priok, Jakarta,

Indonesia5.20 5.77   5.47 5.53 5.50

28 Colombo, Sri Lanka 5.19 4.91 4.31 4.26 4.2634 Jawaharlal Nehru, India 4.49 4.45   4.12 4.26 4.3235 Manila, Philippines 4.23 3.65 3.77 3.71 3.46

Selected ports from the Top 50 World Container Ports (Volume in TEU Millions)

COMPETITIVE PORT TERMINAL FACILITIES

  Deviation Time in Vessel Fuel Cost Port Access Cost of Total Port Time Port Deviation Time ($)*** Charges time in Marginal

  (Days*)   Cost ($)***   ($)*** Port ($)** Cost ($)Chennai 1.10 1.00 24,750 18,840 28,000 22,500 93,730

Chiitagong 2.25 1.00 50,625 37,800 22,500 22,500 130,925Cochin 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 34,858Dubai 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 82,405Karachi 1.33 1.00 29,925 22,344 20,000 22,500 94,769Mundra 1.30 1.00 29,950 21,840 28,000 22,500 101,590Tuticorin 0.09 1.00 2,025 1,512 33,500 22,500 59,537

Notes : 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)

 

Container transshipment volumes handled in Colombo (in TEUs)

    2011 2012 2013 2014 2015 2016  Type              Transshipment 

Laden 2766086 2717246 2855514 3278475 3395328 3873272Empty 357742 347521 352603 421235 492993 481989Sub total 3123828 3064767 3208117 3699710 3888321 4355261

 Total handling 

Laden 3561674 3490696 3625098 4098284 4269749 4820622Empty 701213 696424 681108 809631 915718 914301Total 4262887 4187120 4306206 4907915 5185467 5734923

Transshipment as a share of total throughput

  73% 73% 74% 75% 75% 76%Source: CASA & Sri Lanka Ports Authority

Bangalore

Calcutta

Chennai

Cochin

Goa(Marm

agoa)

Haldia

Hazira

Kattupalli

Krishnap

athnam

Mangalore

Mundra

Nava sheva

Panaji

Pipavav

Tutico

rin

Visakhapatnam

Male

Karach

i

Port qasi

m

Chittagong

0

50000

100000

150000

200000

250000

Trnashipment volume via Colombo

Inward TEUs Outward TEUsSource: Sri Lanka Ports Authority

Name/Location of Port 2014 2015

Colombo 3742 4195

Trincomalee 127 164

Galle 60 72Kankasanthurai, Myliddy, Point Pedro, Karainagar 34 32

Hambanthota 335 295

All ports in Sri Lanka 4298 4760

Ship Arrivals 2014 and 2015

Source: CASA & Sri Lanka Ports Authority

SOUTH ASIA’S WORLD RANK IN LOGISTICS PERFORMANCE - LPI RESULTS ACROSS FOUR EDITIONS 2010, 2012, 2014,

AND 2016 – (NO. OF COUNTRIES EVALUATED 167)

Indicator India

Pakistan

Sri Lanka

Bangladesh

Maldives Nepal Bhut

anAfghanis

tan

Customs 46 66 79 104 83 151 134 146Infrastructure 45 70 123 105 85 133 153 163International Shipments

38 62 103 77 118 129 122 152

Logistics Quality & Competence

38 73 67 93 98 147 124 156

Tracking and Tracing

42 74 82 99 102 116 141 165

Timeliness 45 75 87 86 130 119 150 154Logistics

Performance Indicator (LPI)

42 69 86 91 100 136 140 160Source: The World Bank: Connecting to Compete

CHALLENGES

• CURRENTLY, OVER 27.4% OF INDIA'S EXPORT/IMPORT CARGO IS TRANSSHIPPED AT FOREIGN PORTS

• SRI LANKA DEPENDS ON TRANSHIPMENT VOLUMES OF INDIAN T/S CARGO• THE INDIAN CABOTAGE RULES ALLOW THE FOREIGN FLAGGED VESSELS TO CARRY

CARGO ONLY IF INDIAN FLAGGED VESSELS ARE NOT AVAILABLE•  THE CONTAINER INVENTORY IMBALANCE IN SRI LANKA COSTS APPROXIMATELY

USD 100 MILLION A YEAR• EXPECTED GLOBAL SHORTFALL OF COMPETENT WORKFORCE IN MARITIME SECTOR

REGINAL APPROACH TO OCCUPATIONAL STANDARDS

IORA team inspecting Port Patrick- in Sydney Australia

Sri Lankan representatives of IORA Port Occupational project in the SL High commission office in Canberra to brief the project development

The members of IORA Port Occupational project in port of Colombo

2015

Team visiting the “Ship in Campus” at CINEC Maritime Campus

2016