1 | Page AN ASSESSMENT OF SRI LANKAN SHIPPING LINES Introduction: Sri Lanka has a number of Commercial Ports and a National Merchant Shipping Fleet that provides services to the Maritime Transport Industry. Ancillary services including Ship Repair, Ship Building, Bunkering Services, Salvage and Towage, Ship Chandelling and Off Shore Supplies, Cruise Shipping and Marinas and Ship Management are available. Multi- country consolidation, Entrepot Trade and Bulk Shipping are also services provided in Sri Lanka. Shipping During the 1970’s, the trend of protectionist measures ado pted by Developing Countries to overcome the control of liner shipping conferences, resulted in the creation of the Ceylon Shipping Corporation (CSC). The CSC acquired 8 ships. In the 1980’s the CSC containerized its fleet ahead of its neighbours India, Pakistan and Bangladesh contributing to the development of the Colombo Ports efforts to become a hub port in the region. With the Liberalization of shipping in the late 1980’s, and the rescission of the Central Freight Bureau’s (CFB) export cargo allocation functions, the CSC was ill equipped to deal with the intense competition that was suddenly forced upon it resulting in near collapse of the CSC. Apart from the state owned CSC several companies own and operate vessels under the Sri Lankan Flag. Of these most operate only one or two vessels except Mercantile Shipping which is a joint-venture company with equity participation by German collaboration. Port sector In the development of Ports, the Policy Statement envisages that Colombo will be developed to maintain the Hub Port status it has enjoyed in the South Asian region. Galle is to be developed as a multipurpose Port that could meet the regional requirements in shipping including coastal shipping activities. Kankasanturai will be a regional Port catering to coastal shipping activities for the transport of essentials required in the region. Trincomalee is identified as a Port with a vast potential for the fostering many activities including, commercial shipping and cargo handling, industrial port activities, Ship repair and ship building activities, Cruise and Marina activ ities fo r tourism. Government is also encou raging
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Somewhere in 1992 Government decided to liberalize the shipping agency business. Two
Gazettes Notifications issued on the 24th and 26th of June 1992 allowed foreign principals to
acquire 40 per cent shares in the shipping agency business. Bureau of Overseas Investment
was given authority to increase this 40 per cent share holding even to a higher extent. At this
time Ceylon Association of Steamer Agents took up this matter with the political leadership
of the country. This is what they stated at that time. “Shipping Lines are largely Foreign
Companies earning their profits from liner operations, mainly transport of goods by sea,
while Agents in this country earn only by providing services within the country. Hence, the
nature of the business warrants that it be reserved for Sri Lankans.”
Liberalization of maritime transport services
Sri Lanka’s current status of maritime transport services and the National Policy statement on
Ports and Shipping together with the experiences gained highlight sentiments expressed by
the Sri Lankan representative at the World Trade Organization Ministerial Conference in
Doha 9th to 13th of November 2001.
Highlighting trade, it was stated that “Sri Lanka recognizes that a strengthened rule basedmultilateral trading system is important for free and fair trade and a robust world economy is
a prerequisite for all countries to benefit from growth in international trade in particular
developing countries like Sri Lanka, whose external trade contributes 68 per cent to GNP.
Therefore we reaffirm our commitment to rule based multilateral trading system. However,
we share the view that imbalances and asymmetries do exist in a multilateral trading system
and that developing countries have not shared the benefits in an equitable manner in the
purported growth in international trade”. The same has taken place in the s phere ofliberalization where National Carriers have been reduced to near extinction, and assets have
been leased out at unrealistically low values that will ultimately affect the economy of the
country and its political stability. Considering the above, and the commitment made to follow
the international trends and regulatory impositions, it would be important to have an opening
to renegotiate agreements that have been found drastically lopsided, especially in the interest
of the country’s economy and poli tical stability.
The Sri Lankan shipping lines come under the Judistrication of The Sri Lanka Ports
Authority (SLPA). The Sri Lanka Ports Authority (SLPA) was established by Parliament in
1979, and it administered and operates all commercial ports in Sri Lanka, including the Port
of Colombo. Being Sri Lanka’s premier port, the Port of Colombo has been the focus for all
port development efforts in Sri Lanka since the SLPA was formed. The government has since
decided to develop regional ports as well, and the SLPA is now working to develop the Ports
of Galle, Trincomalee, Kankasanthurai, Point Pedru, and Hambantota.
The Port of Colombo’s Jaya Container Terminals are located at the western and northern
entrances to the port. They cover 130 hectares of land and 70 hectares of water surface. Theycontain fthemain berths and two feeder berths. The quays are a total of 1292 meters long with
an additional 350 meters of feeder berth quay at dredged depths ranging from 12 to 15
meters. The quays are equipped with Panamax and Super Post-Panamax quayside container
cranes and rail-mounted gantry cranes.
The Jaya container terminal areas in the Port of Colombo cover 45.5 hectares and contain
stacking capacity for 44.1 thousand TEUs of dry containers and 1.5 TEUs of reefer
containers. The Container Freight Station area covers 15 thousand square meters. State-of-
the-art computer systems maintain effective and efficient management practices and real-time
yard use planning and operations.
The Port of Colombo’s Unity Container Terminal has two container berths and one multi -
purpose berth dredged to depths from 9 to 11 meters. The terminal has 590 meters of quay
and 1.5 hectares of container terminal area with stacking capacity for 8 thousand TEUs. The
terminal is equipped with three quayside container cranes and 50 terminal tractors.
The South Asia Gateway Terminals at the Port of Colombo have a total of 940 meters of
berths with alongside depth of 15 meters. The terminal covers 20 hectares of total area and
offers 12 hectares of stacking area, including 540 reefer slots with capacity for 1620 TEUs.
The Port of Colombo offers a total of 6245 square meters of bonded warehouse including 125
square meters of cool room. These warehouses are equipped to accept all types of goods
Mercantile Shipping Company PLC owns / operates presently 5 general cargo and semi-
container vessels in the range of 7,800 to 17,430 tdwt.
The vessels match highest quality and maintenance standards and are classified under
Germanischer Lloyd and Bureau Veritas.
All vessels are P&I covered through the West of England Ship Owners Mutual Insurance
Association (Luxembourg). The management of MSCL combines Sri Lankan and German
top management and merges long lasting experience and expertise in all fields of
international shipping
MSCL offers complete transport solutions for any kind of conventional and general cargo, based on sound business practises and established values. They offer Time Charter on short
and mid term, voyage charter (flt,fios,fi/lo,li/fo), long-term contracts. Whatever the transport
requirements are, they offer the adequate solution. the adequate solution.
Area covered
5 vessels ranging from 7,800 to 17,430 tdwt, all geared, tween and single deckers Multipurpose, Conventional and Break bulk ships
Ships of highest quality and maintenance standards Time charter, Trip charter, Voyage charter (On Liner Terms or FIOS)
Long term contract shipments P&I through West of England Beyond transport, advice and assistance is also offered to the valued customers
3) ZIM Integrated Shipping services Ltd
ZIM Integrated Shipping Ltd was established in 1945, and has developed into one of the
largest, leading carriers in the global container shipping industry. At ZIM, they are committed
to providing the clients around the world with reliable, flexible shipping solutions based on
expertise gained from over half a century of experience. They cultivate long-term
partnerships with the customers to delivering a range of services adapted to meet their
specific needs with the ZIM seal of quality.
For ZIM’s highly skilled and professional staff, there is no cargo challenge that cannot be
met. ZIM’s customers en joy the peace of mind that comes from working with a carrier that
offers proven shipping solutions, including out-of-gauge cargo, perishable goods, or
hazardous cargo.
ZIM remains at the forefront of the carrier industry by rapidly adapting to commercial
developments and emerging markets. This approach is an integral part of ZIM’s working
philosophy, and drives the expansion of the operations in established East-West trade routes,
while they pursue the development of the carrier services in the world’s newe st, most
dynamic markets.
Mission: Global Reach, Local Touch
Vision: When the cargo is far from home, it is close to ZIM’s heart.
At ZIM, every customer is a valued individual. As a ZIM customer, the benefits of working
with a carrier that is large enough to provide shipping services in every corner of the world,
yet small enough to give you the personal attention you deserve.
ZIM offers comprehensive account management services delivered by the personal service
representative, a professional shipping expert dedicated to anticipating and meeting the
needs. This individual approach ensures that you receive first-class, fully customized
services, handled entirely by ZIM, so you are free to focus on the business.
ZIM is owned by the holding company Israel Corporation, a market leader committed to
helping ZIM fulfil its mission. As they face the future, ZIM is ideally positioned to
successfully navigate the global Shipping market while remaining dedicated to the delivery of
the highest level of customer service.
Services Network
ZIM – Extending excellence across the globe.
ZIM’s global reach extends to over 120 countries, with a network of global and regional
shipping services that connects the business to strategic ports around the world. Whenworking with ZIM, you are assured comprehensive geographical coverage via a complex
feeder network operating from hub ports on all major international trade routes. At every
stage of the supply chain, ZIM’s trust ed subsidiaries and affiliates form a network of shipping
agents with specialized local knowledge to tailor the solution so it’s a perfect fit.
Fleet & Containers
ZIM’s superior shipping solutions demand a state -of-the-art fleet. ZIM’s fleet comprises ove r
100 modern vessels, including mega-vessels of 8,000 and 10,000 TEUs, with a total carrying
capacity of over 337,000 TEU. They operate approximately 358,806 containers (582,000
TEU), of which 34,250 are special equipment containers. The average age of the containers
does not exceed five years.
Beyond the scope and quality of the fleet and containers, they ZIM take pride in managingand monitoring the vessels according to the highest industry standards. In this way, ZIM
guarantees you optimal performance and outstanding results. When it comes to special cargo,
nobody knows shipping like ZIM. The skilled and experienced team has handled
extraordinary shipping challenges, including perishable goods, dangerous goods, and out-of-
gauge cargo.
They provide guidance and assistance for every type of cargo – no matter how unusual –
based on ZIM’s expertise and capabilities. In partnership with theaffiliates, ZIM successfully
solves any logistical challenge with tailor-made shipping solutions to meet ytherequirements
and honor ythepreferences.
Facts and figures
Annual turnover 2012: $3.96 billion TEU's Carried in 2012: 2.4 million
Total TEU Capacity (owned and chartered vessels): 363,474 TEUs
Fleet: Young fleet (weighted average life of 5.7 years) of about 90 vessels, 28 fully or
partly owned
Containers: over 550,537 TEUs (as of December 31, 2012) of various types Ports of Call: 180 throughout the world, with 10 strategically located hubs Services: Over 60 lines and services, mostly on a weekly, fixed-day basis, covering all
Regional Headquarters: Haifa (Israel), Norfolk, Virginia (USA), Hamburg
(Germany), Hong Kong
Agents: ZIM has more than 450 offices and representatives in over 135 countries
throughout the world China: Strong presence in China with over 30 offices and hundreds of employees IT systems: over $100 million invested in recent years in modern, centralized IT
systems
4) Ceylon Shipping Corporation limited
Company Profile
June, 1971 was a historical day for the contemporary shipping industry of Sri Lanka, whenthe country's legislatures gave the nod to establish Ceylon Shipping Corporation as a fully
government owned commercial enterprise. Infant National Carrier under the brand name of
CSC grew from strength to strength and earned the credibility as a dependable carrier from
Europe to Fareast and North of India to Australia. CSC helped many non-traditional export
produces to enter global markets and establish footholds when the freight was a prohibitive
factor and sailing opportunities were minimal at the time.
In 1992, Government of Sri Lanka conferred more commercial independence to CSC
enabling her to respond to market forces more quickly, by converting the Corporation into a
limited liability company Ceylon Shipping Corporation Ltd. Government of Sri Lanka still
fully owns CSC being one of the strategically important state entities for the island nation.
CSC was the first South Asian carrier to start container services from South Asia to Europe in
1980. CSC was a key partner in the progress and modernization of Colombo port as the
premier container hub port in the South Asia in late 1970s. CSC has been developing much-
needed human resources for the shipping industry of the country being the Alma Mator for
many shipping experts and seafarers.
VISION: To develop a dependable and effective National Fleet of Ships for the country.
MISSION: To cater to the sea transportation needs of the export, import and local coastal
Trades of Sri Lanka that needs assistance from the National Carrier.
CSCL has its own exclusive In-house Ship broking/Chartering Dept with vast experience in
vessel chartering and is capable of arranging any type of fixtures befitting the requirement of
any company engaged in export and import trades to the satisfaction of both charterers and
owners through the worldwide contacts with many ship owners
5) Ceylon Shipping Lines Limited (CSL)
Ceylon Shipping Lines Limited (CSL) was incorporated as a Private Limited Liability
Company in 1954, as a joint venture between Norwegian and Swedish nationals, to conduct
business as Ship Operators and Shipping Agents. In 1978 CSL became fully owned by the
Government of Sri Lanka. The company was privatized in December 1992, with the
Government of Sri Lanka continuing as a minority shareholder. CSL today is at the pivot of
a widely diversified and highly successful conglomerate. The Organization is rapidly
progressing in the international arena, backed by its Global Agency Representation Network
in over 20 countries. The Company commands vast financial and human resources that have
brought into focus a new horizon of opportunities to give CSL a competitive edge in the
commercial world.
Mission: To be known Globally & Locally as a premier Freight Solutions Provider.Corporate objectives
Maximizing Shareholder wealth.
Providing Opportunities for employees to develop.
Building a culture of team work and spirit to bring out the best in people.
Fostering mutually beneficial relationships with all business partners.
6) Sea horse shipping pvt ltd
Sea Horse Shipping was formed in November 2001 and represents major shipping lines
handling Liner, NVOCC, All types of Break Bulk & Casual Callers, Project & Special cargo
vessels. Also acts as Bunker brokers, Ship chandlers, Launch operators, Crew Recruitment in
addition to handling ships. Having a dynamic and dedicated staff with well over 25 years
experience in shipping, Sea Horse Shipping (Pvt) Ltd is geared to cater to the ever demandingneeds of its prospective local and international customers.
They keep the principals informed of Market conditions and happenings on a regular basis so
that the Principals can determine the Potential opportunities in a timely manner. They
maintain a good rapport with all the stakeholders in the Industry including Customers –
Importers/Exporters, Regulatory bodies, Ports Authority, Customs, etc.
The network of associates combined with the competence and experience puts us in a unique
position to change the way they handle the customers ’ multiple port calls.
9) GAC Sri Lanka
Overview
Established in 1991, GAC Sri Lanka offers a full range of professional shipping, marine and
logistics services. With offices in Colombo, Galle, Hambantota and Trincomalee they cover
all ports in the country and can handle any type of vessel and cargoes. Whether you require
full agency, owners protecting agency or husbandry agency services, GAC Sri Lanka can
handle the call. The extensive portfolio of services includes loading and discharge of wet and
dry bulk, general cargo and containers, dry dockings, supply of bunker fuel, crew changes,
spare parts and more.
GAC Sri Lanka’s ship supply service enables vessels that ply the busy sea lanes to take provisions, spares and new crew without diverting from their route. The fleet of twelve
modern high speed crafts ensures fast and safe delivery around the clock. They also provide
full service for embarkation and disembarkation of marine security personnel with their
equipment. The GAC fleet is able to provide rapid response to emergencies on board vessels.
Transferring bulk liquids and LPG from ship-to-ship is a highly technical operation that
requires not only specialised skills and equipment but also prompt mobility and in-depth
experience dealing with contingency situations.
GAC Sri Lanka has exactly what it takes to deliver ship-to-ship services safely and
seamlessly for a wide variety of liquid cargo such as crude oil, petroleum products and
liquefied gas using 100% own equipment. The support to the Oil and Gas Industry, both on-
and off-shore, includes a full range of agency and logistic services offered as an integrated
and complete package. It contains initial advice and documentation to facilitate the import
and re-export of specialised marine equipment (rigs, platforms, support vessels) as well as
handling and storage of consignments like drilling tools, machinery, spares and more. As a
licensed customs house agent (CHA) all import and export clearances can be provided in-
house. The extensive range of logistics services includes everything from supply chain
management, customs clearance, sea and air freight, warehousing and distribution to project
and event logistics. They also provide international moving services. With a network of over
300 GAC offices worldwide, they combine local expertise with the worldwide infrastructure
and resources of the GAC Group including strong relationships with the world’s premier
carriers which enables the customers to benefit from favourable rates and gain priority access
to capacity even during peak times.
Fast Turnaround
Efficient ISO-certified procedures and close working relationships with local authorities,
suppliers and the local shipping industry enables GAC Sri Lanka to provide rapid turnaround
of vessels in any situation. Reducing the time spent waiting, in port and leading up to final
disbursements, are key priorities to help ensure time-and- cost efficiency for GAC Sri Lanka’s
customers.
What makes GAC Shipping special?
Reliable market intelligence
Up-to-date customised reports and information
High quality service delivery through the ISO certified quality system
24/7 operation
Fast turnaround and short lead-times for final disbursements
Dedicated fleet of multi-purpose vehicles for crew and spares services
Dedicated fleet of supply vessels for safe and efficient service off Galle and Colombo
Highest safety standards
10) Mediterranean Shipping Company (MSC)
World’s second - largest shipping line in terms of container vessel capacity. MSC operates 434 vessels and has a capacity of 2,174,000 twenty-foot equivalent
units (TEU). The Genoa- based company operates in all major ports of the world.
MSC serves 270 ports worldwide on the six continents. 350 local offices, employing a
total of 29,000 people, provide an agency network representation.
Vessels with the capacity of up to 13,800 TEU, including one of the largest container
ships, MSC Emanuela and her sistership MSC Beatrice . The growth of MSC is fully organic, and not through Mergers and Acquisition. The line was named shipping line of the year in 2007 for the sixth time in eleven
years by Lloyds Loading List, which is an achievement not matched by any other
shipping line.
11) United Arab Shipping Company
Service area: Kuwait , Dubai, Middle East and west Africa region from Dubai, the European
region from London, the Far East and Australia region from Singapore, and the North
American region from Cranford - New Jersey.
Products: Container shipping
United Arab Shipping Company was established in July 1976 jointly by six
shareholding Arab states of the Persian
Gulf (Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and U.A.E) . The UASC fleet operates more than 18 services. UASC owns and operates a fleet of 58 fully cellular container vessels.
12) Yang Ming Marine Transport Corporation
Area served : Asia, Europe, Americas, Australia and Africa USA accounted for 20.3
per cent of Sri Lanka's exports, followed by UK (10.5 per cent) and EU (23.3 per cent,
excluding UK). Garments continued to account for the bulk of exports to these markets.
Among EU member countries, Italy (5.8 per cent), Belgium (5.4 per cent) and Germany (4.8
per cent) remained the leading export destinations in 2011. Almost 79 per cent of Sri Lanka's
processed diamonds were exported to Belgium in 2011. Exports to India accounted for about
4.9 per cent of Sri Lanka's total exports, increased by 9.5 per cent in 2011 and comprised of
machinery and equipment, animal fodder, spices and garments.
Services : Shipping services, logistics services
This shipping line was founded in 1972
Ocean shipping company based in Keelung, Taiwan (ROC)
2010, mainly due to increased demand from emerging market economies and
political uncertainties which prevailed in oil exporting countries in North Africa and
the Middle East.
The expenditure on textile imports amounted to US dollars 2,321 million in 2011,reflecting both the increased demand for apparel exports and higher prices of
textiles, particularly prevailed in the first half of 2011.On net terms, exports of
textiles and garments amounted to US dollars 1,871 million in 2011.
The expenditure on fertiliser imports increased, led by higher prices that prevailed
in the international market and increased volume of imports as the fertiliser subsidy
was extended to cover all crops, effective from May 2011. Expenditure on wheat
and maize imports also increased. Import of other categories of intermediate goods,
such as chemicals, diamonds and precious metals also increased during the period.
Meanwhile, import of gold, which is the main sub-category within the import of
diamonds, precious stones and metals, increased due to the removal of import duty
on gold in 2010.
Import of investment goods recorded a significant increase of 55.4 per cent in 2011
to US dollars 4,286 million led by increase in transport equipment, machinery as
well as building materials. Increase in investment goods imports was attributed
mainly to the large scale infrastructure development projects of the government
funded by foreign inflows, which increased substantially during the year.
Expenditure on imports of Machinery and equipment which comprise engineering