|
|
|
| Sunday, 31 July 2005 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
High tariff rates due to monopolistic shipping business by Jayampathy Jayasinghe The monopolistic nature of the shipping business has been blamed for the high tariff rates in Sri Lanka. The outgoing Chairman of the Shippers Council Noel Piyatilleke said that the high tariff charges were due to the prevailing monopolistic nature in Sri Lanka. "We have led others to concede that port charges in Colombo were high and unreasonable." He was addressing the 35th Annual General Meeting of the Sri Lanka Shippers Council held in Colombo last week. He said the Shippers' Council had participated in the Maritime Policy Formation Committee and it was important to implement its findings without delay. It was also heartening to note that the "War Risk Cover" for hull and machinery was removed by the Joint War Risk Committee of Lloyds in London. There was no improvement in the field of electronic management of shipping documentation although the issue was raised one year ago. A service provider was requested to enter the market owing to inadequacies of technology at the Colombo Port. Referring to the purchase of Scanners, he said the Colombo Port should set its target to obtain the equipment to be the first in South Asia to be on par with other international ports. He stressed the need to appoint a Port Regulator to ensure fair competition. Although six years have lapsed the government has still not appointed a Port Regulator. The setting up of a Maritime Authority was included in the Maritime policy. According to Drewry Shipping Consultants Trans-Pacific Traffic will grow by 10-12 percent and the Asia Pacific will grow by 16 percent. The growth will support 12 percent capacity increase this year. But Howe Robinson disagrees with Drewry. They said a charter rate reduction of 20- 30 percent was due to an oversupply of box ships and grim economic outlook. However, they forecast 5 percent ship overcapacity by 2006. The Chairman of the Sri Lanka Shippers Council is a member of the committee of the Ceylon Chamber of Commerce, the oldest Chamber in Sri Lanka. |
|
| News | Business | Features
| Editorial | Security
| Produced by Lake House |
