Sri Lanka to host the 2010 International Ship Suppliers’ convention for the first time

Sri Lanka is to host the 2010 International Ship Suppliers’ convention for the first time to promote products and services available in the local shipping industry.

Chairman of the Sri Lanka Ship Suppliers Association, Dr.Wimal Kalubowila said he would seek the approval of the International Ship Suppliers’ Association (ISSA) Board towards this end.

Speaking to The Sunday Times FT, Dr. Kalubowila said till 1989 Sri Lanka and Singapore were the only executive members of ISSA from the entire Asian region.

“Today there are over 10 members from Asia. Singapore has hosted the annual convention for the past three decades,” he said, adding that the country’s ship supplies sector would be greatly benefited as 400 delegates from over 50 counties are expected to attend the ISSA convention in 2010.

It would create a very favourable image for ship supply trade in Sri Lanka, he said. Kalubowila noted that he plans to urge Government’s support for this nationally important event.

He pointed out that the government needs to look at the shipping industry very seriously – like Singapore, which gives top priority to its shipping industry and all port-related activities.

There would be port-sector technology and knowledge transfer as well as increased opportunities for local port suppliers and service providers. Furthermore, there would be a general enhancement of the maritime and logistics sectors, and an attendant improvement of the business climate in Sri Lanka. In 2007 there were 71 private corporate members in the trade including 8 foreign owned companies.

The short supply by local ship suppliers has created a path for foreign ship suppliers. This situation started when the Government lost its control over this trade through Ceylon Port Services Ltd. It is not a healthy situation to the country. Especially under foreign security threats prevailing today in Sri Lanka, government should reconsider taking back the management of Ceylon Port Services Ltd on national security aspects he said.

Outlining the present situation in the ship supplies sector, Dr. Kalubowila said “even at present we are not supplying over 90% of opportunities available to Sri Lanka on ship supplies.

Over 300 ships are passing Sri Lanka for 24 hours period on average as per Lloyds records. Only 10 -12 ships are calling the port of Colombo per day. It is the true situation of this trade in Sri Lanka. I.O.C. has realized the opportunities for bunkering”. Sri Lankans are keeping a blind eye on these golden opportunities he said. Sri Lanka’s bunker prices are the highest in the region. This is mostly because there is only one supplier. One option would be for shore tanks of the Ceylon Petroleum Corporation to be made available for others to supply bunkers. Also, the development of the Hambantota port should be fast-tracked so that other bunker suppliers would have the opportunity to set up shore-oil storage tanks to supply at competitive prices. There is also a need for the port to increase its productivity. It would do well to shift the handling of all break bulk and bulk cargo out of the Colombo port, to other ports such as Galle, Hambantota and Trincomalee.

This would enable the Port of Colombo to develop as a fully-fledged container port. There is also a huge need for a free port Kalobowila added.

Lack of awareness among entrepreneurs, unrealistic regulations enforced by the Government Authorities, lack of relationship with ISSA, poor supply of Duty Free goods and services to the ships, and lack of government support were the main reasons for the present set back in Ship Supply trade in Sri Lanka, he said .
In 1964 Minister P.B.G. Kalugalla , started Ceylon Port Services Ltd as a Government owned ship supplier for the first time in Sri Lankan history. At the same time the minister organized the Ceylon Ship Supplier Association to have “Healthy Competition” among ship suppliers in Sri Lanka. Later it became, the Sri Lanka ship Suppliers Association. In 1989 SLSSA became full executive member in International Ship Suppliers Association based in London, U.K. The General Manager of Ceylon Port Services Ltd was the ex- officio Secretary of SLSSA and Board Member of ISSA simultaneously. This relationship was changed with the management change of Ceylon Port Services Ltd in 2003. Now the entire trade is in the hands of the private sector.