CSC initiates private sector participation at expert group meet on Indian Ocean cargo and passenger

Event organised by SAARC and ADB

The Expert Group Meeting organised by the South Asian Association for Regional Cooperation (SAARC) and the Asian Development Bank (ADB) on ‘Indian Ocean Cargo and Passenger Ferry Services’ concluded successfully on 1 and 2 December at Hilton Colombo Residences. 

The finalised report of the Expert Group Meeting was handed over to the Secretary to the Ministry of Ports and Shipping L.P. Jayampathy at the closing ceremony by Director and representative of the Secretary General of SAARC, Ali Haider Altaf. 

The launch of the Indian Ocean Cargo and Passenger Ferry Services between SAARC regional countries was originally recommended at the Fourth Meeting of the SAARC Inter-Governmental Group on Transport, which was held in New Delhi on 22 November 2010. 

Commencing it on a sub-regional basis was initially proposed including India, the Maldives and Sri Lanka and to connect ports along the South Asian coastal line from Karachi to Mongla and Chittagong.

SAARC, together with ADB, funded the project to identify the most appropriate methodology to start a ferry service connecting the Maldives, Sri Lanka and India with required technical assistance and consultancy services for the feasibility study.

The SAARC Secretariat circulated the draft report of the feasibility study in December 2011 among members seeking comments and observations of the concerned member states of India, Sri Lanka and the Maldives. The subsequent Expert Group Meeting was held in Maldives in November 2012 to discuss the technical issues and finalise the tender process.   

Ceylon Shipping Corporation Deputy General Manager – Commercial, Chitra Jayasinghe, had represented Sri Lanka and presented data and comments based on the past experience that CSC has had on the passenger ferry service operated between Colombo and Tuticorin during 2011.

ADB incorporated the same into the draft final report with the comments from other member states and circulated it again among the members through the SAARC Secretariat and forwarded it to the ADB consultancy group for further action. 

In June 2015, ADB submitted the supplementary feasibility study report on the basis of all the data and comments provided by member countries with the observations of ADB consultants to the SAARC Secretariat.

The Expert Group Meeting, which was held in Colombo with the participation of member states, SAARC, ADB and the SAARC Development Fund (SDF), deliberated on the views and comments in order to finalise the recommendations to commence a ferry service connecting regional ports, at the earliest.

The meeting on SAARC Cargo and Passenger Ferry Services was inaugurated by Jayampathy, who emphasised the importance of the proposed service between the regional countries in view of economic development, international trade, tourism and the promotion of people to people connectivity.

Ceylon Shipping Corporation (CSC) Chairman Shashi Dhanatunge welcomed all the delegates to the Expert Group Meeting on SAARC Cargo and Passenger Ferry Services as the leader of the event’s host country. 

He stated that the Indian Ocean carried half of the world’s container shipments, one-third of the bulk cargo traffic and two-thirds of the oil shipments, though three-fourths of this traffic goes to other regions of the world. Dhanatunge also mentioned that the Indian Ocean region hosts over 40 states and nearly 40% of the world’s population. It is vast and diverse, home to great cultures and holds immense opportunities for the future.

He further stated that a new report by UBS and Pricewat-erhouseCoopers found that one billionaire emerges in Asia every three days, outpacing all the other regions of the world. India is home to the fourth-largest population of millionaires in the Asia-Pacific region, with 236,000 such high net worth individuals, while Japan topped the list with 1,260,000 people.

The working session of the meeting was opened by Ali Haider Altaf. In accordance with SAARC practice, the leader of the delegation of the host country, the CSC Chairman, was elected as the Chairperson of the meeting.

Global Maritime and Ports Services Ltd. Singapore Senior Consultant George Teh Kweehong presented the draft final report on SAARC Cargo and Passenger Ferry Services and briefed participants on its methodology and recommendations to commence a ferry service between countries in the region.  

Sri Lanka Ports Authority (SLPA) Marketing and Business Development Chief Manager Upul Jayatissa made a detailed presentation on the infrastructure and facilities of available terminals to launch a ferry service and highlighted that the SLPA was very positive about this realistic proposal and ready to facilitate growing demand.

CSC, being a pioneer and experienced operator of these proposed cargo and passenger ferry services in the past, has already commenced discussions with a few international and local companies for a Public Private Partnership (PPP). 

For the first time and on the initiative of the CSC, the SAARC Secretariat consented to invite the private sector to the Expert Group discussions on the first day of the working sessions. Kings Investment Ltd., SIMATECH Marine Lanka Ltd., Pathfinder Shipping Ltd. and Aitken Spence Shipping Ltd. participated.

The second day, the most important day of the meeting, was limited to only member states, the SAARC Secretariat, ADB and the SAARC Development Fund (SDF) to finalise the discussed areas and to make recommendations. 

An agreement was initially made to commence a ferry service between Sri Lanka and India and to extend it to the Maldives, Bangladesh and Pakistan in phases at a later stage. 

Ascertaining the viability of the ferry service between Colombo and Tuticorin, encouraging Private Public Partnerships (PPP) was suggested and proposals from the private sector, to be sent to the CSC on or by the 15 January 2017, were requested.

The SAARC Secretariat may approach ADB for finalisation of the tendering documents for SAARC cargo and passenger ferry services.

A CSC official confirmed that it was ready to accept viable project proposals on PPP models for the commencement of the Colombo-Tuticorin sector from interested local and international companies on or before the closing date.