Ships’ agents contribute over $ 300 m to Sri Lankan economy – CASA Chief

Monday, 1 September 2014 00:00 - - {{hitsCtrl.values.hits}}

The 48th Annual General Meeting of the Ceylon Association of Ships’ Agents (CASA) was held recently with External Affairs Minister Prof. G.L. Peiris as the Chief Guest and Palitha Fernando, Attorney General, Justice P.A. Rathnayake, Advisor to the President and Minister of Shipping, the Commander of Sri Lanka Navy, Vice Admiral Jayantha Perera, and Chairman of Ceylon Shipping Corporation and former Commander of Sri Lanka Navy, Admiral Jayanath Colombage in attendance. Here are excerpts of the speech of CASA Chairman Capt. Ajith Peiris.

The Ceylon Association of Ships’ Agents (CASA) was formed as a Shipping Committee in the year 1944. It was formed as an Association in 1966 and was known as Ceylon Association of Steamer Agents (CASA) and renamed subsequently as Ceylon Association of Ships Agents. The CASA Members numbering to 137 engage in various activities of the Shipping Agency functions and especially for the benefit of our special invitees I would like to identify these activities to you. They consist of main liner, feeder ship, passenger ship, break bulk vessel agencies, agency for casual callers, maritime security firms, agency for vessels calling for bunker, repairs, supplies and other ancillary services etc. One other area of shipping agency function which contributes heavily to the Sri Lankan economy goes unnoticed is crew recruitment of Sri Lankans on foreign ships. Contribution to economy While the shipping agency functions relating to cargo and other affiliated services to ships contribute approximately $ 100 million per annum by way of agency fees to the Sri Lankan economy, through manning or recruitment business Sri Lanka earns close to $ 200 million per annum which of course, includes wages of Sri Lankan seafarers on foreign ships. The generation of employment in the category mentioned first is around 6,000 compared to 8,000 at any given time in the seagoing recruitment sector. The total registered seafarers in Sri Lanka are approximately 25,000. Some of our shipping agents have also invested heavily on Marine Training Academies to produce well trained Officers/Engineers and Seamen who will then be in demand in the International Shipping Industry. These Academies train thousands of Sri Lanka youths per year. The places for Sri Lankan seamen in the International market were created with lots of effort and patience by the local shipping agents during the 30-year terrorist activity period and luckily, these shipping agencies were in the hands of Sri Lankans. So as a whole, the shipping agencies in Sri Lanka are responsible of generating $ 300 million plus per annum which I believe is a significant contribution to the foreign exchange earnings in Sri Lanka. I am sure there are many millions of dollars earned through indirect involvement of shipping agents in addition to the above mentioned figures. Marketing Colombo port There is another aspect of the shipping agency business which does not get the proper recognition i.e. we, the shipping agents perform the act of the marketing arm of the Sri Lanka Ports. The result of it is that all the major shipping lines in the world are represented in Sri Lanka and most of them are patronising all our ports. Our agency network is so dynamic and efficient to the effect that no sooner a new shipping line emerge in the world, we will be there to tell them that how wonderful Sri Lanka and its ports are, thus convincing them to have a representation in Sri Lanka and also to use our ports and its facilities. The mere presence of almost all the major shipping lines in the world with their numerous services directly benefit the exporters and the importers of Sri Lanka and also, the freight forwarders, the consolidators, the clearing and forwarding agents etc. The exporters in Sri Lanka have the luxury of having many regular sailing opportunities to ship their cargo and enjoy reduced level of the freight due to the competition among shipping lines operating out of Sri Lanka. So you can see how the shipping agents’ role supports all the exporters, importers and ports in Sri Lanka which I feel demands more recognition from the parties concern. Call for due recognition At the same time we, the shipping agents must understand the importance of the ports and exporters and importers, without which our business will not be that lucrative. Therefore, it is important that we all give due recognition to each other’s role. A very good understanding among ports, shipping agents, importers and exporters is essential to establish a healthy economy in Sri Lanka. For the above reasons, today I request all above mentioned parties to work together to bring prosperity to our country. At present, we, in the shipping industry, face the biggest challenge i.e. to fulfil the expectations of the Sri Lanka Government’s maritime hub status. Maritime hub As Sri Lanka’s leading voice of the shipping industry, we have never been more excited on the developments taking place in the transport and logistics sector in Sri Lanka. Post-war development efforts taken by the Government of Sri Lanka with an intention of making Sri Lanka a regional maritime hub is commendable and encouraging. First and foremost we must have the appropriate framework and policies put in place which will facilitate such concept. The Ministry of Ports & Shipping has already initiated to establish a Maritime Authority to give more focus and dynamism to fulfil this task. As an initial step, the office of the Director General of Merchant Shipping has obtained the Cabinet approval to convert the present department to a Secretariat. The Minister has appointed an Advisory Committee headed by Justice P.A. Rathnayake to look into these areas as well. We, as CASA too, must contribute our ideas to the Government through these committees. Sri Lankan shipping agents have not only contributed to the shipping agency industry in Sri Lanka but have re-invested their proceeds from the agency business in tourism, healthcare, education, IT sectors etc. thus contributing to the Sri Lankan economy in a much broader way. This has really highlighted the importance of the local representation in the equity of the shipping agency business in Sri Lanka. I think I have said enough for this evening. I wanted to emphasise the importance of the shipping agents in the Sri Lankan economy and trust I achieved at least some. Before, I wind-up my speech, I would like to acknowledge and thank the support rendered by the following organisation to our numbers to carry on this business smoothly and professionally. DG Shipping Office, SLPA, Customs, Sri Lanka Navy, Department of Immigration and Emigration, the Central Bank, Marine Environment Protection Authority, South Asia Gateway Terminals, Colombo International Container Terminals Ltd., Colombo Dockyard Limited, Airport and Aviation Services and CINEC. I also thank the CASA Advisory Council past office bearers, executive committee, YSP and the staff of CASA secretariat headed by the Secretary General for a job well done in the past year. Finally, I would like to thank the Chief Guest Minister G. L. Peiris, and all other special invitees for gracing this occasion, and wish all of you an enjoyable evening.

Advisory Committee for maritime authority

CASA Chairman Capt. Ajith Peiris said that the Ministry of Ports & Shipping has already initiated to establish a Maritime Authority to give more focus and dynamism to fulfil this task. As an initial step, the office of the Director General of Merchant Shipping has obtained the Cabinet approval to convert the present department to a Secretariat. The Minister has appointed an Advisory Committee headed by Justice P.A. Rathnayake to look into these areas as well.

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