ANNUAL REPORT ACCOUNTS - Shipper's Council · SLSC Annual Report 2016/2017 Page 2 SRI LANKA SHIPPERS’ OUNIL The Sri Lanka Shippers’ ouncil is the apex body representing Sri Lankan

47th Annual General Meeting

ANNUAL REPORT

&

ACCOUNTS

2016/2017

SLSC Annual Report 2016/2017 Page 2

SRI LANKA SHIPPERS’ COUNCIL

The Sri Lanka Shippers’ Council is the apex body representing Sri Lankan Shippers, which was established in March 1966 to protect and promote the interests of shippers. It was the first National Shippers’ Council to be set up in Asia and was formed on a request made in 1965 by the local Committee of the Ceylon/Continental Conference, and a subsequent request made by the Director of Commerce in January 1966, to the Ceylon Chamber of Commerce. The Council is also a founder member of the Association of Shippers’ Councils of Bangladesh, India, Pakistan and Sri Lanka (ASCOBIPS), founded in 1981 and the Asian Shippers’ Council, founded in 2004. Sri Lanka Shippers’ Council has become a member of the Global Shippers Forum in April 2015. The Global Shippers’ Forum (GSF) is the world’s leading trade association for shippers engaged in international trade moving goods by all modes of transport.

Membership of the Council consists of Chambers of Commerce, Trade Associations & individual organisations. The Managing Committee of the Council only consists of 14 Products Associations (PA’s) with voting rights. Currently, the Council represents a large percentage of the import/export trade in the country through its broad based representation and membership of these trade Associations and individual Companies.

The Council has now opened its doors to individual companies as Associate Members so that companies in the import/export trade could have access to the Council’s resources and expertise to resolve their shipping related problems. The Sri Lanka Shippers’ Council is headed by an elected Chairman and assisted by a Vice-Chairman who are also elected by the constituent members. The Ceylon Chamber of Commerce provides secretarial services to the Council and also acts as the Secretariat. The Council actively supports the Sri Lankan Government’s vision of making Sri Lanka the Logistics Center in the Asian region, which would result in the generation of enhanced economic activity, employment and wealth. As such all Council activities have been planned and prepared to support this vision and to facilitate International trade.


OUR VISION

“To enhance the competitiveness of our members by abolishing hidden logistics costs.”

OUR MISSION

We facilitate our customers to be more competitive in their Business Logistics; performance and cost, by the following;

1. Being the APEX Body, protect the interest of our customers and being a strong Advocate to the Government.

2. Ensuring cost effective strategies are developed and implemented in the logistics and value chain to make our members more competitive.

3. Facilitating greater efficiencies in logistics by reducing logistics barriers and simplifying trade.

4. Acting as the mediator in resolving conflicts amongst our customers (members).

5. Facilitating a level playing field by developing and promoting a code of conduct / ethics for our customers (members).

6. Establishing a centre for excellence for information sharing and to upgrade competencies of members to compete globally.

7. Leveraging regional and global partnerships and facilitating global best practices in logistics in Sri Lanka.

It is the Council’s firm belief that in order to be competitive with the international market Sri Lankan shippers should;

a) Have a clear understanding when deciding on Carriers /Freight rates and be clear and free of any ambiguity with regard to the Freight rates and matters prevailing in the Market.

b) Have freight and associated costs stabled, particularly for traditional exports

such as tea, rubber, coconut products, which account for at least 70% of total export volume out of Sri Lanka. A major part of the turnover of these exports in foreign exchange is retained in the country and it is vital to protect these industries from international competition. Furthermore, these commodities are with relatively low margins and usually with forward trading patterns cannot absorb constant and continuous cost escalations.

c) Concurrently are the major exports such as garments are usually traded on FOB

terms and the local manufacturers are constantly under pressure to provide low priced services, thus are unable to absorb any additional charges keeping in mind


that almost all material for these industries are being imported. Therefore the constant increases in charges could seriously affect such industries as they are called upon to pay these charges both at the point of import of raw materials and export of finished products.

d) Have reasonable Service providers who would not take undue advantage from

their captive customers.

OUR OBJECTIVES AND KEY BENEFITS TO MEMBERS

1. To provide for consultation/dialogue between shippers and Ship-owners/ Conference

Lines/Shipping Agents/Airlines/Airline Agents, Sri Lanka Ports Authority/ Customs and

Government on matters of common interest;

2. To bring together the representatives of various shippers' associations, trade and

industrial associations/organizations, for consideration and discussions of the problems

affecting shippers in Sri Lanka;

3. To represent the views of shippers in regard to the composition of freight rates,

availability and adequacy of shipping space and services including sailings / flights. Port/

Customs efficiency. Adequacy of Ports and Customs facilities and / charges

4. The Council in principal will not come into agreement on behalf of its members in

relation to freight contracts. (The Council will encourage confidential shipper/carrier

freight negotiations) However, if the circumstances necessitate negotiation and entering

into agreements with ship owners/Conference Lines/Shipping Agents/Airlines/Airline

Agents on matters affecting shippers, which involve general principles and policies or on

such other matters, if referred to the Council, upon receipt of such matters, the Council

will act to safeguard the interest of the shipper/Country.

5. To undertake research/studies on problems affecting shippers in Sri Lanka.

6. To circulate information and statistical data and to publish newsletters, brochures etc.,

for the benefit of shippers.

7. To convene independently or jointly with other organizations, conferences, seminars or

meetings in furtherance of the objectives of the Council;

8. To accept any grants, gifts or donations whether in cash or securities and any property

either movable or immovable and/or give any grants etc., in the furtherance of the

objectives of the Council;

9. To make Rules, Regulations or Bye-Laws for the conduct of the affairs of the Council and

to add, to amend, vary or rescind them as from time to time;

10. In the interest of the shippers, the Council will wherever possible nominate its members

to institutions where key functions in the shipping industry are taking place.

11. The Council will closely work with international Shippers' Councils in order to interact

and pass on information that could be beneficial for shippers and the country.

12. To take all such other steps as may be necessary or conducive to the interests of the

Councils' members.


THE COUNCIL

Mr. Sean Van Dort Chairman

Mr. Chrisso De Mel

Vice Chairman

HONORARY MEMBERS

Late Mr. S.S. Jayawickrama Mr. Chullante Jayasuriya

SECRETARY GENERAL

Ms. Dhara Wijayatilake

SECRETARIAT

The Ceylon Chamber of Commerce


MEMBERSHIP – 2016/2017

TRADE ASSOCIATIONS

The Ceylon Chamber of Commerce Mr. Chrisso De Mel (Representative)

Mr. Christopher Koilraj (Alternate)

The Ceylon Chamber of Commerce Mr. Adrian Oswald Import Section (Representative) Mr. Nishan Nanayakkara (Alternate) Joint Apparel Association Forum Mr. Sean Van Dort (Representative) Mr. Suren Abeysekera (Alternate) The Colombo Rubber Traders’ Association Mr. Mahesh Kapukotuwa (Representative) The National Chamber of Commerce Mr. Sujeeva Samaraweera of Sri Lanka (Representative) Mr. Tissa Ruberu (Alternate) The Ceylon Coir Fibre Exporters’ Association Mr. N. Ramanathan (Representative) Mr. Shavesh Mendis

(Alternate)

The National Chamber of Exporters’ Mr. Shiham Marikar of Sri Lanka (Representative )

Mr. Parakrama Weerasinghe

(Alternate)


The Sri Lanka Freight Forwarders’ Mr. Taniya Polonnowita Association (Representative) Mr. Jagath Pathirana (Alternate) The Sri Lanka Apparel Exporters’ Mr. Ajith Jayasekara Association (Representative)

Mr. Kumar Seneviratne

(Alternate)

Sri Lanka Association of Air Express Mr. Dimithri Perera

Companies (Representative)

Sri Lanka Logistics Providers’ Association Mr. Stanley Samarakoon (Representative) Tea Exporters’ Association Mr. Gehan Kuruppu

(Representative)

Mr. Shiral Fernando (Alternate)

Sri Lanka Fruits & Vegetable Producers, Mr. Zuraish Hashim Processors & Exporters’ Association (Representative) Hub Operators Association of Sri Lanka Mr. Amal Rodrigo

(Representative)

Ms. Niroza Gazzali

(Alternate)


INDIVIDUAL MEMBERS

Agility Logistics (Pvt) Ltd Ansell Lanka (Pvt) Ltd Anverally & Sons (Pvt) Ltd Bollore Logistics Lanka (Pvt) Ltd

Care Logistics (Pvt) Ltd Ceylon Tea Marketing (Pvt) Ltd City Cycle Industries Civaro Lanka (Pvt) Ltd CL Synergy (Pvt) Ltd Control Union Inspections (Private) Limited C H Robinson Freight Services Lanka (Pvt) Ltd

20Cube Logistics (Pvt) Ltd

Expolanka Freight (Pvt) Ltd Eskimo Fashion Knitwear (Private) Ltd Euro Substrates (Pvt) Ltd

Fascination Exports (Pvt) Ltd Fanam International (Pvt) Ltd Freight Links International (Pte) Ltd Freight Masters International Pvt Ltd Finlays Colombo PLC Green Horizon Enterprises (Pvt) Ltd

Hayleys PLC Hddes Extracts (Pvt) Ltd Hela Clothing (Pvt) Ltd Hellmann Worldwide Logistics (Pvt) Ltd Imperial Teas (Pvt) Ltd Jiffy Products S.L. (Pvt) Ltd Kokosfibre Exports (Pvt) Ltd

Leading Lady Intimates Lanka (Pvt) Ltd


MAC Supply Chain Solutions (Pvt) Ltd Mabroc Teas (Pvt) Ltd Lafarge Mahaweli Cement (Pvt) Ltd Neil Fernando & Co. (Pvt) Ltd Nestle Lanka PLC

Riston Teas (Pvt) Ltd SALOTA International (Pvt) Ltd

Shermans Logistics (Pvt) Ltd

Singworld Lanka (Pvt) Ltd

Scanwell Logistics Colombo (Pvt) Ltd

Tea Tang Ltd

Timex & Fergasam Group (PvT) Ltd

Trelleborg Lanka (Pvt) Ltd

Universal Freighters International (Pvt) Ltd UTI Pership (Pvt) Ltd Van Rees Ceylon Ltd


The Sri Lanka Shippers’ Council AGM 2015/2016

Seated from Left to Right Ms. Ushani Dassanayaka (Secretariat), Mr. Suren Abeysekera (Joint Apparel Association Forum), Mr. Chrisso De Mel (Vice Chairman), Mr. Sean Van Dort (Chairman), Ms. Taniya Polonnowita Sri Lanka Logistics & Freight Forwarders’ Association), Mr. Parakrama Weerasinghe (National Chamber of Exporters’ of Sri Lanka), Ms. Manori Dissanayaka, (Secretariat). Standing from Left to right Mr. Gehan Kuruppu (Sri Lanka Tea Exporters’ Association), Mr. Stanley Samarakoon (Sri Lanka Logistics Provider’s’ Association), Mr. Ajith Jayasekera (Sri Lanka Apparel Exporters’ Association), Mr. Shavesh Mendis (The Ceylon Coir Fibre Exporters’ Association), Mr. Jagath Pathirane (Sri Lanka Logistics & Freight Forwarders’ Association), Mr. Shiham Marikkar (National Chamber of Exporters), Mr. Naren Vanigasooriyar (Sri Lanka Apparel Exporters’ Association), Mr. Christopher Koilraj (The Ceylon Chamber of Commerce), Mr. Adrian Oswald (The Ceylon Chamber of Commerce – Import Section), Mr. Dimithri Perera (Sri Lanka Association of Air Express Companies), Mr. N. Ramanathan (The Ceylon Coir Fibre Exporters’ Association)


OFFICE BEARERS Sri Lanka Shippers’ Council held its 46th Annual General Meeting on the 29

th June 2016 at

5.30 pm at the Board Room, The Ceylon chamber of Commerce, followed by refreshments.

Mr. Sean Van Dort re-elected as the Chairman and Mr. Chrisso De Mel was re-elected as the Vice Chairman for the year 2016/2017.

50TH ANNIVERSARY CELEBRATIONS OF THE COUNCIL The year 2017 was a special significance to the Sri Lanka Shippers’ Council, being its 50th anniversary. Since its inauguration in 23rd March 1966, the Council has played a vital role in the Sri Lankan economy by looking after the interest of Shippers’ and also to serve as a strong advocate to the Government on Shipping & Port related matters.

TREE PLANTING CAMPAIGN

To celebrate 50 years of achievement, a series of events were carried out by the Council during 2016 which was commenced with a tree planting campaign in the Port of Hambantota on 24th March 2016. The ceremony was held under the distinguished patronage of Hon. Arjuna Ranatunga, Minister of Ports & Shipping. During the ceremony, 25 King Coconut and 25 Cashew plants were planted with the participation of office bearers, past chairmen and members of the Sri Lanka Shippers’ Council along with the invitees. The Secretary to the Ministry of Ports and Shipping, Director General of Merchant Shipping, senior officials of the Sri Lanka Ports Authority in Colombo and Hambantota were also among the invitees for the event.

During the programme, the Hon. Minister Arjuna Ranatunga also unveiled the Sri Lanka Shippers; Council 50th Anniversary Logo. The event was sponsored by Hellmann Worldwide Logistics (Pvt) Ltd, Universal Freighters International (Pvt) Ltd, Kokos Fibre Exports (Pvt) Ltd, Mountain Hawk Express (Pvt) Ltd and Expelogix (Pvt) Ltd.


Unveiling the plaque by Hon Minister, Arjuna Ranatunga

GALA DINNER The main celebrations was held at the Cinnamon Grand Hotel on the 28th July 2016, with a gala dinner. This event was attended by over 500 high profile government and private sector dignitaries, members and delegates from Global Shippers’ Forum. Former, Deputy Minister of State Enterprise Development, Hon. Eran Wickramaratne graced the occasion gala dinner as the Chief Guest and the key note speaker, while Mr. Robert Ballantyne Chairman Global Shippers’ Forum was the Guest of Honour. At the event, a token of appreciation in recognition of exceptional leadership & dedicated service rendered to the Council, presented to the past chairpersons and honorary members of the Council. In appreciation of the valuable contribution made towards the improvement & development of the import and export trade, service recognition awards were presented to Sri


Lanka Customs, Sri Lanka Ports Authority, Board of Investment of Sri Lanka, South Asia Gateway Terminals (Pvt) Ltd, Colombo International Container Terminals Ltd and Director General’s Office of Merchant Shipping.

Welcome address by Chairman, Mr. Sean Van Dort

Welcoming Hon. Eran Wickramaratne, Cutting the Anniversary Cake Chief Guest and the Keynote speaker

Address by Past Chairman Mr. Tomi Ellawala Key note address by Hon. Eran Wickramaratne


Address by Guest of honour, Mr. Robert Ballantyne, Vote of thanks by Vice Chairman, Mr. Chrisso de Mel Chairman Global Shippers’ Forum


GLOBAL SHIPPERS’ FORUM - GSF ANNUAL MEETING To coincide with its 50th Anniversary, the Annual General Meeting of the Global Shippers Forum for the year 2016 was hosted by the Council in Colombo from 27th to 30th July 2016. The Global Shippers’ Forum (GSF) is the world’s leading trade association for shippers engaged in international trade moving goods by all modes of transport. This will be the first time that the Annual general Meeting of the GSF will be hosted in Asia.

SPECIAL NEWSPAPER SUPPLEMENTS The Sri Lanka Shippers’ Council, in a bid to enhance its image and also to create awareness about its services among the general public, published supplements in two leading English newspapers, The Daily News and Daily FT on the 28th July 2017. The age of an organization says nothing about the strength of its origin, its vitality in terms of service innovation, or even its culture at any special moment in time. SLSC is at the mid-point in a century of care. There is certainly much to consider when preparing for such a landmark occasion. These events will look forward to the developments and opportunities in the next 50 years and celebrate the past achievements of the SLSC.

ACTIVITIES OF THE COUNCIL

The activities of the Council have been focused on issues faced by shippers on shipping and their operational activities. The Council always performed a lead role in resolving problems and serve as the focal point where various shipping and port, Airport & other authorities’ related matters are brought up and discussed. In addition, the Council largely contributes in advising the Government authorities on matters relating to port and shipping whenever its advice is sought after. The following ten (10) action committees were appointed for better co-ordination and guidance purposes:

Shipping and Logistics related Matters

Present Market Indicators


Customs/Sri Lanka Ports Authority/Maritime Affairs

Airport Issues

Education and Seminars

Membership Drive, Fund Raising & Finances/Accounts

SLSC Constitution

Asian Shippers’ Council (ASC)

Global Shippers’ Forum (GSF)

SLSC Website A detailed description of the activities of the Council appears elsewhere in this report. However, in this section for your easy reference we give below the main topics covered in the report.

Shipping Surcharges Freight Market Conditions Sri Lanka Customs Sri Lanka Ports Authority Asian Shippers Council (ASC) & Global Shippers’ Forum (GSF) Education and Seminars

SHIPPING SURCHARGES

GAZETTE EXTRAORDINARY 1842/16 DATED 27.12.2013

Sri Lanka Shippers’ Council continue to engage the authorities in maintaining the status quo of transparent and all inclusive freight structures to be market driven. During the year under review, it was noted that many vested parties were lobbying to mislead the authorities to bring back unethical, anticompetitive practices once again by revoking the above piece of legislation. This landmark regulation have been commended and acknowledged by the Global Shippers Forum. Global Shippers’ Forum Chairman Robert Ballantyne has praised Sri Lanka’s efforts to ensure strong competition laws to eradicate anti-competitive practices that have a negative impact on global trade. Quote “We at the GSF believe in strong competition laws to eradicate anti-competitive practices that have a negative impact on global trade. We note that in many parts of the world, especially in Africa and Asia, the shipping industry has been engaging in anti-competitive activity. We understand that Sri Lanka has brought in needed regulation that rebalances the bargaining power between shippers and carriers with the objective of achieving the best market-driven price and service. The GSF congratulates Sri Lanka for its leadership and for providing a good model for other countries to emulate,” the Global Shippers' Forum Chief said. Unquote


Sri Lank Shippers’ Council will continue to support the Government and its membership to uphold fair trading practices in a transparent business environment for the benefit of importers, exporters and shipping lines and agency network. During the year under review, the Council advised its members to take up any matters relating to unethical charges by the service providers to the Director General of Merchant Shipping with the supporting document.

PRESENT MARKET CONDITIONS The year under review saw Export freight rates declining once again towards the last quarter of space well over demand. It was also noted that several new services were launched during this period, giving shippers the comfort of having more options. Shipping Lines have notified relevant competition authorities world-wide of their intention to merge their businesses by April. There was no information available on the potential impacts on competition and services due to these mergers. As a result of rapid consolidation of shipping lines, the shipper community is rather worried that such mergers and acquisitions will lead the shipping industry to be a real oligopolistic industry that will result in unjustifiable freight rate increases and space manipulations. This will impact all developing countries, both exporters as well as the consumers. For years global shipper organisations especially in non-regulated developing markets and countries have been pointing out the anti-competitive nature of shipping when it comes to pricing.

In 2016, the Global Shippers’ Forum based in London initiated discussion with the World Bank and is in the process of talking to UNCTAD as mainly African and Asian countries continue to suffer by imposition of numerous surcharges and the breaking of freight cost by forcibly imposing charges without any transparency. As a result, a considerable number of small and medium scale industries have lost competitiveness which the Global Shippers’ Forum has identified as a barrier to trade.

On the other hand, these non-market driven tools will increase cost to the consumer when a country considers its costing for imports. It is the strong will of governments and regulators who can stop by introducing market friendly competition rules to minimise abuse of the system.

Also during the year, it was observed that there were several GRIs that were imposed in the second and third quarter mainly due to the unusual buildup of demand both through local exports as well as with huge transshipment volumes where shipping lines also took the advantage to create an artificial demand by a few void calls as well as down grading the vessels creating an excess demand for space in the market. Overall the local shippers continue to have the advantage of better freight rates when compared with other origins in the region. However the problem of poor quality equipment remains to be in the agenda of discussion with very little improvement.


There had not been significant fluctuations in import freight rates ,during the year under review ,there were few increases in freight rates experienced for cargo imported from China ,during seasonal and peak times ,which has remained only for a very short period .However , the overall situation had been favorable to importers , this situation could be attributed to the excess capacity of space .

SRI LANKA CUSTOMS

The Council is pleased to announce that the dialogues with the Sri Lanka Customs continued, during the year under review. Concerns of the Importers and Exporters with regard to various policy matters and operational issues were brought to the attention of the Director General Customs and received positive responses to solve large number of operational issues during this period. Some of the issues highlighted were as follows;

Pre arrival document process

Online manifest submitting

Online registration of Importers and Exporters with Sri Lanka Customs SRI LANKA CUSTOMS EXPORT FACILITATION CENTRE It is noteworthy to mention in spite of political pressure by vested parties to discontinue the Export Facilitation Centre that was set up by the trade for the trade with the cooperation of the Sri Lanka Customs. In this venture the Government of Sri Lanka did not lose any revenue and the trade agreed to incur additional cost to ensure such a facilitation center up and running which is the first of its kind in South East Asia ENACTMENT OF NEW CUSTOMS ACT

Subsequent to a budget proposal 604/2016, the Government has taken a policy decision (policy

Decision 1) to enact a new Customs Act in place of the existing customs ordinance of No 17 of

1869 as amended to suit the present day requirements in international trade activities and

there by this new Law will be presented to the Parliament.

The Cabinet Committee on Economic Management – (CCEM) chaired by Hon. Prime Minister

Ranil Wickremesinghe has granted approval for this enactment of the proposed new Customs

Act through the Policy Decision – II decision No. 25/05/2016/05.

CCEM has also approved to establishment of the following committees to facilitate the process;

a) A Steering Committee (SC) to guide drafting process as well as to facilitate the inter agency coordination

b) An official Level Technical Committee (OLTC) to facilitate the Steering Committee as well as the Drafting Committee

c) To obtain service of a team of Consultants for drafting of the proposed new Customs Act


Si Lanka Shippers’ Council is a member of the working group formulated by the Ceylon Chamber of Commerce to collate the private sector proposals to amend the Customs Ordinance. In addition, the Council serves as one of the 5 members nominated from the private sector to serve on the Technical Committee to facilitate the Steering Committee as well as the Drafting Committee. The Council is continuously working with the trade, Ceylon Chamber of Commerce, Ministry of Finance to expedite the process to formulate of a Bill for a New Customs Act. WTO TRADE FACILITATION AGREEMENT

The WTO Trade Facilitation Agreement (TFA) came into force on the 22nd February, with the ratification of two-thirds of WTO members. The TFA is going to be a game-changer for international trade. Some estimates suggest that implementing TF reforms can bring bigger benefits for businesses than tariff liberalisation.

The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

Sri Lankan businesses engaging in imports and exports will be the main beneficiary of improved efficiency of border administrative procedures.

Developing countries like Sri Lanka can divide implementation of the agreement into three categories:

Category A: provisions that the member will implement by the time the Agreement enters into force (or in the case of a least-developed country within one year after entry into force)

Category B: provisions that the member will implement after a transitional period following the entry into force of the Agreement

Category C: provisions that the member will implement on a date after a transitional period following the entry into force of the Agreement and requiring the acquisition of assistance and support for capacity building

Sri Lanka has already submitted its Category “A” commitments. The Sri Lankan Government has to implement these immediately without waiting for the full two year period allowed under the TFA, as it will boost the economy’s competitiveness.

The country is expected to submit Category B and C commitments soon. When submitting what the country will do under category B, the government first has to give indicative dates of implementation and within one year has to provide definitive dates of implementation.

Sri Lanka being a country, where implementation of policies, promises by government remains weak, the TFA provides a trading community with a good opportunity to lock in implementation dates.


The Council has a major role to play by pushing, and partnering, government authorities to ensure that TF reforms are done soon and deliver measurable improvements in trading across borders.

SRI LANKA PORTS AUTHORITY

During the course of 2016, SLSC has had very productive round table discussions with the SLPA to discuss various issues pertaining to the industry. Some of the issues highlighted were; shortage of equipment, shortage of space in warehouses, delays in de-stuffing of LCL cargo within 24 hours, request to link online payment with all banks, to clear Dangerous Cargo after 4.30 p.m.

DEVELOPING A PORT MASTER PLAN

Sri Lanka Shippers’ Council was invited to stakeholder discussion to formulate a Sri Lanka Port

Master Plan.

As per the ADB terms of reference, this project will support the government of Sri Lanka to develop a National Port Master Plan (NPMP) considering both national port policies and individual port developments with focus on the Colombo and Trincomalee ports. The NPMP will be developed with 2 sections;

1) National Policy Directions (NPD), and 2) individual port development plans (PDPs)

The NPD will contain visions, policies, institutional issues and overall development framework from a national point of view, including Sri Lanka Ports Authority (SLPA) restructuring. The individual PDPs will set direction of port development and identify priority projects for the Colombo and Trincomalee ports. The NPMP will ensure that port infrastructures will be developed and operated in an optimum manner in concomitance with urban areas and in line with long term planning. The NPMP will identify priority projects, promote public and private investment, and boost economic efficiency by reducing logistic costs along with restructuring of SLPA. Also, the TA will provide technical advices on the SASEC Port Access Elevated Highway (PAEH) Project in Colombo, and secure both efficient operation of the Colombo port and smooth traffic along the PAEH by facilitating multiagency coordination. The Council was of the view that there should be a solid Master Plan which is apply for any

Government in Power.

IMO MANDATORY WEIGHING OF CONTAINERS BY SHIPPERS, FORWARDERS AND CONSOLIDATORS

The Shippers’ Council has continuously engaged with Director General of Merchant

Shipping to finalise the requirement of verifying of container Gross Mass weight.

Gazette no. 1979/30 dated 11.08.2016 has been published regarding; Merchant Shipping

(Verification of Container Gross Mass) Regulations, by Ministry of Ports and Shipping.


ASIAN SHIPPERS’ ALLIANCE (ASA)

In January 2015, the Council was made aware of a new Shipping Alliance called “Asian Shippers Alliance’’ (ASA) formed joining ASC and ASM. When enquired from the current ASC Chairman, he had confirmed that this alliance was formed at an informal meeting held on 12 September 2014 in Thailand with the participation of Thailand National Shippers’ Council (TNSC), Hong Kong Shippers Council (HKSC) and European Shippers’ Council (ESC).

GLOBAL SHIPPERS’ FORUM (GSF)

The Annual General Meeting of the Global Shippers' Forum took place from Council in Colombo from 27th to 30th July 2016, hosted by Sri Lanka Shippers Council.

Mr. Sean Van Dort, the Current Chairman of the Council was appointed to the Board of Directors at the Global Shippers Forum Annual Meeting held last year in Sri Lanka.

Since the Global Shippers’ Forum is focused in the impact of commercial developments in the international freight transportation industry and policy decisions of governments, and international organisations that affects shippers and receivers of freight, the Council was of the view that Van Dort with his global experience and vast knowledge would be an asset in future discussions and negotiations related to the interest of Sri Lankan Shippers.

Over 30 delegates attended from shipper councils including those representing Canada, Germany, Hong Kong, Korea, South Africa, Sri Lanka, Thailand UK, US and other observer shipper associations. There were also representatives from numerous countries in the membership of the Union of African Shippers' Councils as well as individual shippers taking part in the meeting.

The meeting discussions included:

Surcharges and Incoterms

WTO Trade Facilitation Agreement

Mega ships, alliances and competition policy

Shipping and aviation emissions-the consequences for Shippers

Container weight verification

The next GSF Annual Meeting has been scheduled Gran Canaria, on the 2 – 4 October 2017.

Freight Transport Association (FTA) “Trading with Britain” Conference 15 March, 2017, Westminster, UK, Organised by GSF and FTA Mr. Sean Van Dort, Chairman of the Council was invited to speak at the above conference. He was given 30 minutes presentation to share his views, as a key trading partner of UK, implications for future trading arrangements between the UK and Sri Lanka and the EU following the decision by the UK to leave the European Union.


The conference was involved senior government officials including the Rt Hon David Jones MP, Minister of State, responsible for the UK existing the European Union and Heads of Shippers’ Councils of Australia, Canada and members of Commonwealth Secretariat.

FEDERATION OF ASEAN SHIPPERS' COUNCILS (FASC) There were no significant activities under FASC after the AGM held in New Delhi 2008.

EDUCATION & SEMINARS

SLSC- CINEC Scholarship program for Logistics and Trade Industry

Colombo International Nautical and Engineering College (CINEC) offered four scholarships to employees of SLSC membership who are involved in logistics, freight forwarding and supply chain to excel in higher education and enhance their career prospects on those fields. Scholarships on offered were as follows;

1) Professional Diploma In Freight Forwarding 2) Certificate in Logistics Services, Freight Forwarding and Multimodal Transport

(Course approved by Ministry of Ports, Highways and Shipping)

TRADE COMPLAINTS The Council continues to facilitate the trade by assisting in the mediation of trade disputes among the shipping lines, freight forwarders, NVOCC Operators, and shippers.

REPRESENTATIONS The Council continues to maintain its close association with the Government and Private sector organizations and also with the Trade Associations with a view to have a continued improvement on the required service levels. Some highlighted direct representations made during the year were as follows;

EDB Advisory Committee on Trade Facilitation

Maritime Advisory Council on Ports, Shipping & Maritime Affairs–Ministry of Ports & Shipping

Representations at the Leadership of the Approved Associations meetings of the Ceylon

Chamber of Commerce

Working group member of identifying Export Potential in Entrepot Trade Organised by Sri Lank Export Development Board


Formulation of National Export Strategy (NES) - Core team and working Group member Sri Lanka Shippers’ Council Chairman was nominated to sit on the above working committee. 1st meeting was held on 09th February 2017. Mr. Chullante Jayasuriya has been appointed as the National Coordinator by ITC to spearhead the committee.

NES funded by EU and the implementation will be done by the International Trade Centre (ITC). In 2014, the Government of Sri Lanka requested ITC’s assistance in the elaboration of the country’s second National Export Strategy. Building on the lessons learnt from the first National Export Strategy (NES) 2004-2008, a new National Export Strategy (NES) will be designed to provide a prioritized five-year action-oriented framework for trade development and competitiveness. The new NES will focus on a number of priority sectors, selected based on a quantitative and qualitative analysis of Sri Lanka’s export competitiveness, to ensure a prioritized focus.

THE CEYLON CHAMBER OF COMMERCE (CCC)

The Chairman of the Sri Lanka Shippers’ Council is a member of the Committee of the Ceylon Chamber of Commerce, the oldest Chamber in Sri Lanka with a history of over 175 years. The Council members have had several meetings with the Chamber officials on policy matters relating to port and shipping.

MEMBERSHIP The membership of the Council is open to all Trade Chambers and Associations engaged in Shipping and Port related activities as well as individual companies in the import/export trade. The membership committee is responsible for developing and increasing the membership of the Council. During the year under review, the Council approved membership for the following companies/organizations as Individual Members:

1. Euro Substrates (Pvt) Ltd 2. C H Robinson Freight Services Lanka (Pvt) Ltd

FINANCE The Ceylon Chamber of Commerce manages the Council funds on behalf of the Council.

WEB SITE

www.shipperscouncil.lk Shippers’ Council website was revamped with a new outlook. The site is regularly updated with trade related information and hosts value added services.

http://www.shipperscouncil.lk/


SECRETARIAT The Ceylon Chamber of Commerce provides Secretarial services to the Council. The infrastructure of the Chamber is readily available to the Council.

BY THE ORDER OF THE COUNCIL

Sgd. Manori Dissanayaka

For Secretary

THE SECRETARIAT Sri Lanka Shippers' Council

C/o. The Ceylon Chamber of Commerce 50, Nawam Mawatha, Colombo 2

Direct Tel:+94 11 2392840, 5588871, 5588880

General Tel: +94 11 2421745-7, 5588800 Fax:+ 94 11 2449352, 2437477

E-mail: [email protected] Website: www.shipperscouncil.lk

tel:+94

mailto:[email protected]

ANNUAL REPORT ACCOUNTS - Shipper's Council · SLSC Annual Report 2016/2017 Page 2 SRI LANKA SHIPPERS’ OUNIL The Sri Lanka Shippers’ ouncil is the apex body representing Sri Lankan

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