Shipping agencies generate US$300 mln in forex earnings
View(s):Sri Lankan shipping agencies generate US$300 million plus per annum contributing significantly to the country’s foreign exchange earnings, the Ceylon Association of Ships’ Agents (CASA) newly elected Chairman Capt. Ajith Peiris said.
During his speech as the newly elected Chairman at the CASA AGM held in Colombo recently, Capt. Peiris noted that there were many “millions of dollars earned through indirect involvement of shipping agents in addition to this foreign exchange earnings”.
He explained that Sri Lanka’s shipping agencies whose functions relate to cargo and other affiliated services contribute approximately $100 million per annum by way of agency fees.
In addition, he pointed out that close to $200 million per annum was earned through the ‘manning’ or recruitment business that would include wages of Sri Lankan seafarers on foreign ships.
Employment was around 6000 compared to 8000 at any given time in the seagoing recruitment sector with the total registered seafarers in the country approximately 25,000.
Shipping agents, Capt. Peiris explained were responsible for acting as the marketing arm of the Sri Lanka Ports in a bid to lure any new business to the island’s ports.
He explained they were involved in attracting new shipping lines no sooner they emerge by convincing them to use the country’s ports and its facilities.
“The mere presence of almost all the major shipping lines in the world with their numerous services directly benefits the exporters and importers of Sri Lanka and also the freight forwarders, the consolidators, the clearing and forwarding agents as well,” he said.
Commenting on the government’s moves to establish a maritime hub status on the island, he noted that the right framework and policies needed to be in place.
In this regard, he explained that the Ports and Shipping Ministry has initiated a move to establish a Maritime Authority to give more focus and dynamism to fulfil this task.
As an initial step, the Director General of Merchant Shipping has obtained Cabinet approval to convert the present department to a Secretariat, Capt. Peiris said.