Maximising on east-west shipping route, Hambantota Port/Kra Canal – Merit or demerit?

• Industry forum on 17 March

Ships or no ships, Hambantota Port has been commissioned, what can we do about it? The Shippers’ Academy Colombo has organised an industry forum on 17 March at the Ceylon Chamber of Commerce Auditorium from 3:30 p.m. onwards.

The forum will discuss the current situation with regard to the ports and shipping industry and is expected to brain storm various industry view points on Hambantota as well as the current shipping industry issues pertaining to Sri Lanka.

As the Government and the Ministry of Ports and shipping are now in dialogue with China on a long lease and an industrial zone in Hambantota, there are different opinions in the industry on the viability of the port, the model of development and the Government solution. On one hand, it is said that government is facing serious debt issues as the current business generated out of Hambantota is extremely low and thus the Sri Lanka Ports Authority is stretched for its resources to both service loans and administrative costs in Colombo and other ports. On the other hand, its revenue has to be utilised to pay Hambantota debt from this year onwards as per Government information. 

Given the current business model and the inability of the Government to pump in more resources it has turned to the builder and the funder of the Hambantota Port, China, to work towards a long-term lease etc.

The forum will also discuss a much talked about canal project in Thailand known as the Kra Canal. Although it has been a long-standing project that was discussed for more than two centuries due geopolitical reasons it seemed the realisation of the project is a long way away. However, with the recent global developments including the South China Sea security issues and more regional trade developing in Asia new shipping and logistics routes are also planned for supply chain security and to develop diverse trade routes.

The forum will discuss both Hambantota and the Kra Canal issues, how it will affect Sri Lanka as a maritime nation. Former CILT Chairman Rohaan Abeywickrama, Ceylon Association of Shipping Agents (CASA)Chairman Capt. Ajith Peiris, Shippers’ Academy Colombo CEO Rohan Masakorala and other industry personnel will join with presentation and the discussion and to focus on the merits and the de-merits of the said projects. Ranel T. Wijesinha, Founder of The Thought Leadership Forum, will moderate the forum.

Interested parties, please contact the Shippers’ Academy Colombo. Tel: 077-3820703/0113560844; fax 0112874065; e-mail: [email protected]; web: www.shippersacademy.lk.