The National Shipping Policy is being drafted and industry sources say this is probably the fourth attempt at formulating a policy at national level and hoped this time round it would be smooth sailing as far as implementation is concerned.

Sri Lanka will soon ratify the International Labour Organisation’s Maritime Labour Convention and that is why a national policy is being formulated. The convention looks at broader rights for seafarers both on land and sea.

The formulation of the policy is done with the consultation and participation of industry stakeholders so there is some optimism that the policy will be practical.

"Experts representing various stakeholders in the industry are involved in the formulation process so it is safe to assume that the policy will be implemented," Jayantha Rathnayake, Managing Director, Cargoserv Shipping Limited said.

Managing Director and CEO of Colombo Dockyard PLC, Mangala Yapa said the consultative process is very democratic.

"The shipping policies in the past could not be implemented because there was opposition from various stakeholders. This time it could be different. While it is understood that different stakeholders will have different agendas, every one realizes there is some give and take and there may be no resistance when it comes to implementing the policy," Yapa said.

While stakeholders generally praise the formulation of the national policy as it would give direction and focus to the country’s shipping industry, there are a few areas that still need some thought.

Marketing…

Two weeks ago the Island Financial Review quoted Sujeiva Samaraweera, Chairman, Shipping, Aviation and Ports Committee of the National Chamber of Commerce about the need to develop a marketing plan into policy.

Yapa too holds this view.

"What is missing in the discussions is the need to include a marketing plan. There has to be an institutionalized organization that will look into marketing Sri Lanka’s services," Yapa said.

Education…

He also said the formulation process seemed to be spending too much emphasis on infrastructure development.

"Only the infrastructure needs have been discussed. Where is the vision to develop human resources that would cater to the industry?" Yapa asked.

"Human resources development has to be carried out simultaneously with the infrastructure developments. Universities have to be roped in to develop curriculum for various sectors in the shipping industry. There has to be national policy on education that would take care of this need," he said.

Yapa said this was a critical issue that needs urgent attention. The development of ports will also create new jobs for a skilled and professional workforce. Yapa says Sri Lanka must be prepared to meet these human resources needs.

While some economists question the feasibility of the Hambantota Port on the grounds that development cannot be forced, Rathnayake says the post is essential for development.

"Singapore did not have many natural resources at its disposal but look where it is today. They decided to develop their port and related services and when this was done the country’s economy boomed. Developing Hambantota Port will also contribute a lot to development," Rathnayake said.

"Hambantota does not have a catchment area, there are no industrial zones and agricultural exports are not big enough but with the development of the port all this can change," he said.

Falling volumes…

The global financial crisis continues to take its toll on Colombo Port activities.

Imports for the first quarter of 2009, was 24,000 TEUs on average a month, down from 31,000 TEUs during the same period last year.

Exports too declined during this period averaging 17,000 TEUs a month from 19,000 in 2008.

Transshipments have also declined by about 12 percent due to India’s trade contraction of about 25 percent.

With high costs at the Colombo Port, its status as a hub port is also under threat.