EGDC's first shipment leaves Colombo Port
The first shipment from the Expo Global Distribution Centre (EGDC), a
value added bonded warehousing facility under the free-port regulations
at the Katunayake Export Processing Zone left Sri Lanka recently.
EGDC is a BOI company registered under the new Finance Act -
Commercial Hub Regulation No 1 of 2013 that provides a range of value
added logistics services at point of origin to freight customers
enabling them to save costs and manage the supply chain effectively.
Eskimo Fashion Knitwear is the first company to make use of EGDC's
unique value added services to international apparel retailers operating
in Sri Lanka and the region.
ReimaOy, Finland is the first overseas buyer to benefit from EGDC's
services.
EGDC functions as a Free Port, which is a Duty Free Zone allowing
retail brands to bring down goods to Sri Lanka without any customs
inspection or duty. The facility operates as a distribution centre,
providing storage solutions and value addition services, primarily
targeted at the fashion apparel industry.
EGDC provides services such as off shore businesses where goods can
be procured from one country or manufactured in one country and shipped
to another country without bringing it to Sri Lanka.
The Government is introducing several schemes and proposals to make
Sri Lanka an international trading and transshipment hub. The free port
concept is one of the key proposals introduced to achieve this end.
Group CEO and Group Director, Expolanka Holdings PLC, Hanif Yusoof
said, "This is an important milestone not only for EFL but also for Sri
Lanka as a country seeking economic progress to be on par with countries
such as Dubai and Singapore which already have commercial hub
facilities."
"As a prominent player in Sri Lanka's freight and logistics sector,
we find the Government's strategic approach heartening," he said.
The geographic location of Sri Lanka will be a key factor for
shipping and logistics, especially for the container shipping industry
which accounts for over 50% of global trade value (2013) and over 70% of
transshipment volume through the port of Colombo.
A BOI official said, "EGDC not only functions as an 'entrepôt', a
trading spot where merchandise can be imported and exported free of
import duties but also services the operation of multi country
consolidation in Sri Lanka."
"EGDC offers front end services to overseas clients' and functions as
the headquarters of leading buyers for the management of the finance
supply chain and billing operations.
The BOI actively promotes projects which fall under the new hub
category," he said.
"This new area of investment will create many opportunities for
employment and skill development. The rapid economic growth of Asia will
boost hub-type operations," the official said.
Managing Director, Eskimo Fashion Knitwear (Pvt) Ltd, Manik
Santiapillai said, "ReimaOy are one of Eskimo's major customers. When
they expressed interest in shifting warehousing and export operations
from China to Sri Lanka we referred them to Expo who are Eskimo's
logistics partner. The combined efforts of all parties involved have now
borne fruition and will also contribute to the Government's initiative
to establish Sri Lanka as an international trading and transhipment
hub," he said.
"The successful conclusion of this first transaction will also
contribute to increased exports from Sri Lanka of apparel and other
industrial products in the future," Santiapillai said. |