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Freight forwarders call for scripless transactions

by Elmo Leonard

Twenty years of talk about converting Sri Lanka into the shipping hub of the South Asian region has amounted to lip-service of successive governments, the local freight forwarding fraternity told a recent media conference.

However, in the past year, the Sri Lanka Freight Forwarders' Association (SLFFA) was pushing in that direction, and the Government was complying, Chairman SLFFA, Sunil Malawana said.

The SLFFA called for scripless freight forwarding transactions, towards making Sri Lanka a hub of shipping activity. "The transactions in the port of Singapore are simplified, which is why so much transshipment takes place through that port," SLFFA Executive Committee Member, Nilhan Mendis said.

Sri Lanka is strategically placed, midway between the East and West. Thus, all mother ships belonging to the global shipping industry call at the Colombo Port, while bypassing Indian ports. However, very little by way of transshipping goods bound for global destinations is undertaken here, Malawana said.

SLFFA has been in existence for 21 years, and has 66 members. Seventy per cent of Sri Lanka's outward bound freight, by air and ocean, is handled by SLFFA members. Sixty per cent of Sri Lanka's imports come through the SLFFA, the media conference was told.

Before the SLFFA was set up, foreign shipping agents carried out freight forwarding services for Sri Lanka, and took away their earnings. The SLFFA now brings back foreign exchange to the country.

From end-September, an Electronic Data Exchange, linking the Customs and Ports Authority, has been in operation, in the SLFFA endeavour towards scripless freight forwarding transactions, SLFFA Executive Committee Member, Manik Swaminathan said.

The Australian Freight Forwarding Association held two training courses to educate young people in the local trade.

At the Air Cargo Village close to the Katunayake Airport, Closed Circuit Televisions were to come into operation end-September. This move is meant to stop pilferage at the Air Cargo Village, and would bring the airport security services on par with those of all major international airports, Malawana said. The security equipment had cost Rs 2 million.

Meanwhile, the Air Cargo Agents Association of India will hold its 30th annual convention in Colombo from November 16 to 19. The 400-member Indian association will meet at the Taj Samudra Hotel. "It would be vital to coordinate with India, to build up Sri Lanka as a transshipment base," Malawana said.

The SLFFA is forging links with freight forwarding agencies worldwide, in a bid to expand trade. The Federation of Asia Pacific Air Cargo Association held its 29th executive council meeting in Colombo in June while the South Asian Federation of Freight Forwarders Associations held its annual general meeting in Colombo last year. The Association is also coordinating with the Federation of Air Transport Association and the International Air Transport Association, the media conference was told.

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