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Training on freight forwarding to S. Asians

by Elmo Leonard

The Sri Lanka Freight Forwarders Association (SLFFA) plans to build an academy to provide training on freight forwarding to people involved in the industry in South Asia.

A regional training centre for South Asia would be of immense benefit to the region, according to Ram Menon, Director, Emirates Sky Cargo, based in Dubai.

The only indigenous South Asian freight forwarding course is currently conducted in Sri Lanka by SriLankan Airlines on 'Dangerous goods', which is relevant to airlines.

Sri Lanka and other SAARC countries now send people in the freight forwarding industry for training to countries like Singapore or invite lecturers to visit their countries. Minister of Commerce and Consumer Affairs, Ravi Karunanayake had agreed to grant a 40-perch block of land in Kotte to house the proposed academy and to provide funds for construction through the Mahapola scheme. The SLFFA has also got a favourable response from UN-ESCAP to fund the proposed academy, SLFFA President, Sunil Malwana, said at the SLFFA Annual General Meeting held recently.

Sri Lanka is envisaged to earn US$ 3 - 4 million by way of freight forwarding services per month. Yet, the losses the island incurs monthly, due to untrained freight forwarding personnel holding office, would run into millions of dollars, Malwana said.

Of late, Sri Lanka charges a standard fee for the transport of goods bound to the airport for freight. Hitherto, some freight forwarders did not charge a fee for transporting goods to the airport, which would have cost the industry and nation losses of many millions of rupees per year, Malwana said.

Menon, the chief guest on the occasion, said the September 11 attack on the Twin Towers in USA, showed the world how vulnerable the freight forwarding industry is to economic shocks. World air cargo growth for 2002, when computed, would show a gain of four to five per cent. With the Iraq issue and SARS catastrophe behind, Menon predicted that world GDP growth would recover, with similar gains in global freight forwarding services.

Sri Lanka's freight forwarding industry should learn the growth patterns the industry would be subjected to in the coming years, so as to benefit from the emerging situation, Menon said. The South Asian freight forwarding industry was set to take off in the next few years and what Sri Lanka needs is a change in mind-set, Menon said.

Sri Lanka would have to compete with other countries. As Asia's economy grows, its exports would increasingly come out as brand products and Sri Lanka would have to follow the trend.

The country should build and improve ports and airports to heighten freight services, Menon said.

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