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Monday, 12 November 2012 00:00 - - {{hitsCtrl.values.hits}}
In a major boost to Sri Lanka’s maritime and logistics hub push, Panama, the global maritime logistics power that handles 5% of international seaborne trade, now wants to significantly bolster maritime and trade cooperation with Sri Lanka – and in a very considerable way.
“We welcome fast growing Panama’s renewed interest on Sri Lanka. The new initiatives could strongly boost bilateral trade levels from the current $ 7 m, which shows unrealised growth potential,” said Rishad Bathiudeen, Minister of Industry and Commerce on 9 November.
Bathiudeen announced this in the aftermath of the courtesy call made on him by Aram B. Cisneros, Ambassador of Panama for Sri Lanka, on 9 November at the Ministry of Industry and Commerce, Colombo. Accompanying Cisneros was Susantha M. Jayasena, Panama’s Honorary Consul General in Colombo.
“Being iconic maritime centres in the world, both Sri Lanka and Panama have been known to each other and our modern trade links appear to strengthen from 1914 when the Panama Canal opened. Our bilateral trade grew by strong 43% in 2011. Almost all of Sri Lanka’s exports to Latin America and a considerable volume to North America cross the Panama canal,” said Bathiudeen, addressing Cisneros.
“In the new economic growth era of Sri Lanka thanks to President Mahinda Rajapaksa, we are positioning Sri Lanka to become a maritime and logistics hub. Panama’s support in this regard is therefore timely, most welcome and we are thankful for it.”
“A key purpose of my visit today is to bolster maritime cooperation and trade between Panama and Sri Lanka. We are looking for alliances with Sri Lanka’s Maritime Shipping Ltd. and Ceyline Shipping Limited as a start. I am also currently looking to enlist large number of experienced Sri Lankan seamen to no less than 1,000 Korean ships, as a start,” said Cisneros, who is currently stationed in Seoul, South Korea.
“Panama’s experience as a maritime logistic hub is that even though Sri Lankan seamen cost somewhat more (demand more salary), they are much more efficient, cleaner and very productive in comparison to many other seamen. Sri Lankan seamen are a good investment.”
Cisneros stressed: “We also invite Sri Lanka to establish manufacturing plants in Cologne, world’s second largest Duty Free Trade Zone located in Colon city, which also has the world’s second largest duty free port. Sri Lankan private sector export manufacturers can specially avail of Cologne’s facilities for immediate access to highly competitive North American and the emerging 12-member strong Caribbean CARICOM and CME bloc from Panama almost overnight with very short turnaround times.”
The 12 full members of CARICOM/CSME are Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts & Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad & Tobago.
CARICOM can opens doors for larger export opportunities, generates immediate capital flows from American investors so that manufacturers establishing in Cologne can go for JVs with North American firms, and more importantly, provides the essential harmonised framework for competitive access to fast changing markets of Americas.
Cisneros added: “Such short turnaround times will definitely help Sri Lanka’s apparel manufacturing sector. Also, bilateral trade cooperation does not necessarily need to be only goods and services. It can also constitute of knowledge economy and transfer. In this regard, we are ready to transfer our world renowned logistics knowhow to Sri Lanka to enhance Sri Lanka’s maritime logistic capacities. The formal links to this end could be established through Government to Government levels as well as business to business levels. Panama Chamber of Industry, Commerce and Agriculture (la Cámara de Comercio, Industrias y Agricultura de Panamá) and Sri Lanka chambers can start to work together in this regard. More importantly, both countries can jointly grow as maritime hubs. I believe it is time to leverage on twin hub synergies we have.”
According to the Department of Commerce of Sri Lanka, bilateral trade between Panama and Sri Lanka, which stood at $ 4.9 m in 2010, jumped by 43% to $ 7.07 m in 2011. Apparel have been Lanka’s main export item to Panama in 2011 contributing to 92.51% of the exports basket followed by cinnamon and cinnamon tree flowers (4.5%). Among the imports from Panama were frozen fish, followed by cinematographic and photographic optical products.
Besides being the global maritime logistics power, Panama is also Latin America’s fastest growing economy, according to Moody’s Investors Service, which upgraded Panama’s ratings to BAA2 last month.
“Panama’s economy has the highest growth rate in Latin America, enjoying an average pace of 7.3% growth in the past decade. Despite a weak global economy, Panama continued to increase its gross domestic product at an annualised rate of 10.6% in the first half of this year,” Moody’s said.
