The chief objective of SLAVO is to represent Shipping Line Principals’ interest and driving Port of Colombo towards expectation of worldwide Shipping Principals even though some are challenging under current political turmoil in Sri Lanka. We thank the President of Sri Lanka Hon. Ranil Wickramasinghe and the Minister of Ports, Shipping and Aviation Hon. Nimal Siripala De Silva for reconditioning the Sri Lankan maritime industry, which requires faster development and growth and for taking many initiatives in enhancing the resilience of the sector to face future global competition and challenges.

I have dedicated my strength and am striving to lead by example to resolve industry-specific issues whilst working on behalf of the ultimate interests of shipping principals, representing foreign ship owners in Sri Lanka through SLAVO. To this end, I wish to capitalise on three decades worth of experience in the shipping and logistics trade – both local and international to create positive changes.

The association played a major role during the initial lockdown imposed across Sri Lanka due to the pandemic by ensuring the smooth movement of cargo until the country gradually began functioning in keeping with the expectations of the ‘new normal’ landscape. Meanwhile, SLAVO did not deviate from its commitments and always adhered to government directives, following stringent safety measures.

The country needs to foster a favourable and conducive environment if we are to welcome the international business opportunities towards Port of Colombo. It is high time for the Port of Colombo to come out of the old mindset of ‘Geographical location’ and understanding that international shipping revolves around competitiveness, where ‘costing and service efficiency’ are core elements, is crucial. Newly developing global ports meet these requirements by understanding exactly what Shipping Principals need.

In the Port of Colombo, 85% of business is based on transshipment, and it is understood that it would not be difficult for shipping principals to move volumes to a more competitive hub port if the Port of Colombo is not ready with enhanced capacity and service standards. We at SLAVO emphasize these global challenges to the authorities and highlight the importance of fast-tracking current developments within the Port of Colombo to be ready with new capacities by the first quarter of 2024.

SLAVO welcomes the development of the East Container Terminal (ECT) by the Sri Lanka Ports Authority and the Colombo West Container Terminal (CWIT) by the Adani Group, and the plans to operationalise the first phase by mid-2024. I appreciate the efforts of the Chairman and the Managing Director of the Sri Lanka Ports Authority in finding solutions to concerns raised by SLAVO.

We also appreciate the efforts of the three terminals—JCT, CICT, and SAGT—in working towards the interests of shipping lines and managing their terminals with higher productivity and global standards. As per expert opinions, the current volume downturn is expected to pick up by 2024, and the world’s largest mega ships of over 24,000 TEUs are expected to be developed for Asia to Europe trade. Thus, the Port of Colombo would be a strategic location to attract such businesses, provided the port fast-tracks its development plans, enhances capacity, and improves service levels to meet international standards.

Furthermore, new regulations on CO2 emissions by cargo and cruise ships will play a major role in ship performance and speed. These will affect worldwide ship scheduling and exert pressure on terminals to deliver much higher productivity in order to maintain those schedules. All ships must achieve a 40% reduction in carbon intensity by 2030 compared to the 2008 baseline.

Ships are now required to calculate two rates—their attained Energy Efficiency Existing Ship Index (EEXI) to determine energy efficiency, and their annual operational Carbon Intensity Indicator (CII) along with the associated CII rating. Carbon intensity links GHG emissions to the amount of cargo carried over distance travelled. The amendments to MARPOL Annex VI came into force on 1 November 2022. The requirements for EEXI and CII certification came into effect on 1 January 2023. This means the first annual reporting will be completed in 2023, with initial ratings assigned in 2024.

I take this opportunity to thank the Committee for their creativity and tireless efforts in putting together the first SLAVO Magazine 2023.

Shamal Perera
Chairman – SLAVO