Govt. to launch a container feeder service between Colombo and Chittagong

The Ceylon Shipping Corporation (CSC) this week got green light from the Government to launch a container feeder service between Colombo and Chittagong, acquiring a vessel through private sector partnership, Cabinet Co-Spokesperson Gayanta Karunatilaka said.

The proposal made by Ports and Shipping Minister Mahinda Samarasinghe recommended a partnership with a private sector company to provide the vessels required for the service as the CSC currently does not own any container vessels. The country is able to reap benefits of the Memorandum of Understanding signed with the Bangladesh Shipping Corporation (BSC), and CSC enables the latter to obtain the priority berthing facility for vessels registered under Sri Lankan Flag. Noting that the opportunity gives a competitive advantage over other feeder operators, the Minister proposed to commence a joint container feeder initially between Chittagong and Colombo.

However, obtaining a vessel through ‘Time Charter’ basis or ‘Bareboat Charter’ basis was ruled out due to limitations and costs involved in both options. Instead, a joint partnership with a private sector company was deemed the best option available for CSC.

The CSC received Cabinet approval to call for Expression of Interest (EOI) and the Request for Proposal (RFP) from interested parties to partner with CSC and provide vessels to be registered under Sri Lankan Flag. The BSC has already called for an EOI for such a partnership, the Minister told the Cabinet of Ministers.

Further, the Government also decided to wave off ‘Pay As You Earn’ (PAYE) tax from sea farers working for ships under Sri Lankan flag to enable easy recruitment of staff.