The Crucial Resources of Sri Lanka including its people

March 9, 2012, 7:14 pm 


By A. Denis N. Fernando

Fellow NASSL and Founder Member CIMOGG

This presentation deals with the crucial resources of Water Resources in our Land, the Natural Resources in the sea around us within our territorial waters as determined by the U.N. Law of the Sea and the People of Sri Lanka and is indicated in three sections namely Water Resources, Natural Resources in the Sea and its People.

Section Two: The Natural Resources in the Sea

Further today we are heirs to the U.N. Law of the Sea that provides Territorial Rights to the Exclusive Economic Zone (EEZ), which I have designated as LANKA SAMUDRA as it belongs to us in the ocean and is in extent nearly seven and a half times our Land area. We could also claim as well as the Continental Shelf beyond the EEZ under certain conditions which if it has sediments deeper than one kilometer in depth according to the Law of the Sea. I have indicated this area which is about fifteen times our land area if we exclude the areas- falling outside the Median line between our neighbouring countries. These are indicated in the accompanied coloured MAP. Further I have also included the coloured Satellite MAP of Gravitational Pull around the four continents surrounding us, with due courtesy of the New Map produced by the European Satellite that reveals the gravity around the world.

Dr. Ronnie S. Mather formerly Assistant Superintendent of Surveys of the Survey Dept of Sri Lanka subsequently using the Satellite of MARISAT discovered the "Sri Lanka Low Gravity" in the ocean around Sri Lanka, which portends fossil fuels which was further proved as indicating in the World Map on Gravity as the Lowest Gravity on Earth. This was clearly the reason for developed countries to engage in further research pertaining to this and have to this "Black Gold" and even attempted to destabilize our country using the traditional colonial methods of Dividing and Rule and the reasons for which we have experienced destabilization in the last three decades.

Today we have illegal poaching in our living resources in the Palk Straits by South Indians. They fish within our territorial waters for crabs, prawns and other fish crossing the international boundary. It is imperative that we demarcate this International Maritime Boundary with anchored floating bouys with rotating mirrors that clearly demarcate the boundary at suitable intervals so that all could see it clearly. Those who cross this International Maritime Boundary could be prosecuted accordingly and be given deterrent punishment, like confiscation of boats and trawlers with their catch as well as taking legal action against poachers into our territorial waters.

For this purpose of safeguarding the larger portion of our EEZ would be more difficult as we have to guard against poaching not only by the Indians but also the Japanese and other foreigners. This illegal poaching would deprive us of our large source of income from Skipjack, Tuna sword fish, Sharks that have a very high demand not only in the local market but also in the foreign market as well. As this area is so large this could be only done by having a large Naval Force supported by a Voluntary Naval Force of registered boats that have been cleared by the Navy before their engagement for such services. They could like the Customs Officers be provided by financial benefits for detections and after successful prosecution.

Then we have under the U.N. Law of the Sea provision to claim the Continental shelf without further delay as we could exploit the non living resource of Fossil Fuel that is available there as it is within the Lowest Gravity in the World and has the high potential of Fossil Fuels apart from minerals.

It is clear that the Independent States within the four continents of Asia, Antarctica, Africa and Australia which comprise of more that 40 having their independent Exclusive Economic Zones. They would have to form themselves as a Consortium for ensuring the safety of their EEZ’s and prevent outsiders who would have their agendas for our own safety. It would therefore be imperative to exclude foreign countries in this Consortium as they could have their own interests in this trade route which was traditionally in their hands from the time of its been used as the Spice Route., which could to destablising these countries in matters of trade to the said countries.

Since the use of the term "Indian ocean" is anomalous today in the Context of the U.N. Law of the sea and as India has its own EEZ that belongs to it, would be necessary now to designate this ocean more appropriately as ASIATIC OCEAN to prevent any misunderstanding .(This map iappears on this page titled The Indian Sea in the Asiatic Ocean)

Dr. Parakrama Dissanayake to address TOC in Hong Kong

March 9, 2012, 7:08 pm 

Dr. Parakrama Dissanayake – Chairman, Aitken Spence Maritime and Director, Aitken Spence PLC, has been invited to address the Terminal Operators Conference (TOC Asia) in Hong Kong, the most prestigious global event in the Ports industry, which will be held from 13th to 15th March 2012.

Amongst those who would speak at this Conference are – Ms. Eva Cheng, Minister of Transport, Hong Kong Government, Mr. Juan Manuel Gonazalez, Managing Director, Asia Region –Hapag Lloyd, Mr. Sunny Ho –Executive Director, Hong Kong Shippers Council, Mr. Stephane Mazain – Asia Vice President, CMA CGM, Mr. Ken Chan – Deputy Managing Director, COSCO Pacific Ltd., Mr. Kieran Ring – CEO, Global Institute of Logistics, Mr. Simon Moore – CEO, DP World London Gateway, to name a few.

Dr. Dissanayake is also a member of the expert Advisory Group of Terminal Operators Conference (UK).

Dr. Dissanayake pioneered commercial maritime education in Sri Lanka as the first Secretary and a Past Chairman of the Institute of Chartered Shipbrokers (Sri Lanka Branch). Dr. Dissanayake who has served on the UN/UNCTAD Panel as an expert on Ports and Shipping has in the past held the positions of Chairman – Sri Lanka Ports Authority, Chairman – Jaye Container Terminals, Chairman – Chartered Institute of Logistics and Transport. He is also the past Chairman of Central Advisory Board of the Sri Lanka Transport Board and co-Chairman of the Transport Cluster of the National Council for Economic Development. He is a member of the Faculty Industry Consultative Board – Department of Transport & Logistics Management of the University of Moratuwa and Chairman –Steering Committee on Ports, Shipping, Aviation and Logistics of Ceylon Chamber of Commerce. He is a University of Oxford Business Alumni and has also successfully completed an Executive Education program on "Global Economy’ at Harvard Business School in Boston.

Dr. Dissanayake is a recipient of the Best Shipping Personality award conferred by the Institute of Chartered Shipbrokers and Contribution to Society Award by PIMA of the University of Sri Jayawardenapura and Services rendered to the Shipping Industry by Ceylon Association of Ships’ Agents.

Passenger Traffic Continues to Rise

*Cargo Remains in Doldrums

March 4, 2012, 7:12 pm 

The International Air Transport Association (IATA) announced global traffic results for January showing a 5.7% rise in passenger demand but an 8.0% decline in air freight compared to the same month in 2011. The occurrence of Chinese New Year in January (rather than in February as in 2011) exaggerated the increase in passenger demand and the fall in air freight. Stripping this out, the underlying trend was for stronger passenger growth, while stabilized weakness in cargo markets continues.

"The year started with some hopeful news on business confidence. It appears that freight markets have stabilized, albeit at weak levels. And this is having a positive impact on business-related travel. However, airlines face two big risks: rising oil prices and Europe’s sovereign debt crisis. Both are hanging over the industry’s fortunes like the sword of Damocles," said IATA’s Director General and CEO Tony Tyler.

Total January passenger demand rose 5.7% compared to January 2011 a slight acceleration from the 5.6% year over year increase recorded for December 2011. With January passenger capacity up 4.2%, average load factor rose 1.1 percentage points to 76.6% compared to the same month a year ago.

Freight markets stood at 8% below January 2011 levels. The decline in air freight stabilized in the fourth quarter of 2011, at levels 4% below the 2008 pre-crisis peak. There was a 2.5% fall in global freight markets from December to January, but this is almost totally attributable to the impact of factory closures due to the Chinese New Year. Freight capacity contracted by 0.6% year over year, and freight load factor fell to 41% (from 44.3% in January 2011) as deliveries of new widebody passenger aircraft offset measures to reduce freight capacity.

International air travel rose 5.5% in January year over year, while capacity climbed 4.2%, resulting in a load factor of 76.6%, up from 75.7% in January 2011.

Asia-Pacific airlines saw their traffic rise 6% in January compared to 2011. Capacity climbed 6.4% and load factor dipped slightly to 77.5%. Year on year traffic growth would have been softer were it not for the Chinese New Year boost.

European carriers experienced a 5.3% gain in traffic versus January 2011. The persisting economic weakness of the region resulted in a considerable drop from the 9.5% growth recorded in December despite the attractiveness of the weak Euro to tourist traffic and export activity. The average load factor strengthened to 75.7% on a 2.7% rise in capacity year over year; however, the load factor is among the lowest of the regions.

North American airlines had a 0.3% dip in passenger traffic, but capacity dropped 0.9%, pushing load factor up fractionally to 77.6%. Next to African carriers, the passenger demand was the weakest performance.

Middle East airlines recorded double-digit traffic growth in January, posting a 14.5% increase. This was by far the largest rate of growth for any region and represents a return to the rates experienced in 2010. Capacity rose 10.6%. Load factor climbed 2.7 points to 78.5%, among the highest of the regions.

Latin American carriers continued to enjoy robust passenger demand. Traffic rose 7.9% in January compared to the same month last year, while capacity increased 7.4%. At 79.9%, the region’s carriers had the strongest load factor.

 African airlines reported a 3.6% decline in demand and a 0.8% decline in capacity, with a load factor of 64.8%, the lowest load factor among the regions. Although sub-Saharan economies are showing strong economic growth, African airlines are finding it difficult to capitalize on the trend.

Galle port unique position to resolve Somali pirate crisis

By Quintus Perera

The Galle harbour is in a unique position to tackle the issue of sea piracy, particularly for ships affected by Somalia pirates as it is only six nautical miles away from the international maritime shipping route. This transpired during the launch of the ‘Sri Lanka International Air Freight, Shipping and Logistics Expo 2012(SLIAFSLE) organized by CEMS Lanka (Pvt) Ltd in Colombo this week. SLIAFSLE 2012 will be held at the BMICH from March 8 – 10 at the BMICH. Preethilal Fernando, Director/CEO, GAC Shipping Ltd, an international shipping company operates in Sri Lanka as a joint venture with McLarens Shipping Ltd, said that they service around 350 vessels per month at Galle Port and provides all the facilities for these vessels such as bunkering, crew changes etc. They also operate six of their own vessels. He said the Galle Port is one of the best locations to handle the Somalia pirate menace as Somali pirates operate in the Indian Ocean and all vessels that are to pass Suez Canal could be armed and provided with other equipment at Galle Port to meet any eventuality confronted by the Somali pirates. He said that the strategic location of the ancient port of Galle offers an excellent base for their offshore ship supply service. He said that their principals simply engage their services en-route, avoiding any deviation from their vessels’ original routes. He said that vessels en route between the Far East and Suez as well as Read Sea, Middle East or Indian Subcontinent ports, all pass within a few miles of the Southern tip of Sri Lanka (Galle Port). Mr Fernando told the Business Times (BT) on the sidelines of the press briefing that Somali pirates hijack vessels sailing in the Indian Ocean. He said “What happens is, all the vessels which are going through the Suez Canal have to be prepared for any pirate attacks. We, together with the Sri Lankan Navy, provide ‘Sea Marshals’ (security providers for ships) and equip them with necessary armoury and deliver these weapons to vessels which we serve.” Chaminda Hulangamuwa, Executive Director, McLarens Shipping Ltd said that Sri Lanka is emerging as a shipping transit and logistics hub with a number of internationally acclaimed ports in the country. Manish Patel, Country Manager, DHL Keells (Pvt) Ltd said that logistics is important for the country and there is growth in this respect. He said that what is needed is to market it properly and the SLIAFSLE 2012 event is to market the country’s logistic potential and industries which needs growth and logistics.

Govt. to embark on Stage II of US $ 500 mn BIA expansion project

March 3, 2012, 7:27 pm 

By Franklin R. Satyapalan

Stage II of the expansion of Bandaranaike International Airport (BIA) will go ahead, as planned, with US $ 500 million funding from JICA, Airport and Aviation Services Minister, Priyankara Jayaratne said.

The government has ambitious plans to develop Sri Lanka into a hub for commercial aviation in the Asian region in 2012. This would act as a catalyst for the growth of the country ‘s tourism industry, he noted.

He said that on the advice of the President, SriLankan Airlines has taken a policy decision to acquire only brand new aircraft to increase its fleet as it has been found that new aircraft would not require any major repairs or maintenance for six to ten years. The national carrier will also add Melbourne to its portfolio shortly thereby increasing the number of destinations to 63 in 33 countries.

The government has planned to complete construction of the country’s second International Airport at Mattala by October 2012 and implement the development of the domestic airport network in the country, the Minister said.

The agreement for the BIA expansion project will be signed between Finance Secretary Dr P. B. Jayasundara and JICA officials shortly.Construction is expected to be completed by 2016, Jinadasa Rajapaksa, an Ministry official said.

With the proposed expansion, the BIA passenger handling capacity would be doubled to 12 million per annum. The cargo handling capacity would also be increased to 500,000 metric tons from present capacity of 250,000 metric tons, he noted,

A new split level passenger terminal building which separates arrivals and departures vertically, a new pier with eight boarding gates and 14 passenger boarding bridges with a dedicated gate comprising two passenger boarding bridges for the operations of the new A-380 Airbus, will be included in the proposed new complex, he explained.

There would also be a remote apron and an additional nine parking stands to ease air traffic movements. There would be a tax free apparel shopping mall at the Katunayake BOI Zone to attract more business visitors to Sri Lanka.The tax free shopping mall is to be located adjacent to the arrival terminal and connected by a sky bridge, he said.

The security, administration, fire services buildings and female rest rooms for navigational staff will also be expanded along with the refurbishment of the porches and departure and arrival terminals.

China ups stake in Colombo South container terminal

January 23, 2012, 12:00 pm 

With Aitken Spence announcing its withdrawal from the consortium with China Merchant Holdings to design, build and operate a container terminal at the Colombo South Port, the Sri Lanka Ports Authority (SLPA) and Board of Investment (BOI) have granted it approval to sell its entire stake to its former Chinese partner. After the deal is finalised, China Merchant Holdings would increase its stake from 55 percent to 85 percent. SLPA would continue to hold its 15 percent stake in the country’s single largest private sector led project, estimated to cost over US$ 600 million.

"Colombo International Container Terminals Ltd (CICT) has received letters from the SLPA and BOI both dated January 20, 2012 granting the approval for China Merchant Holdings (International) Company Ltd to purchase the entire 30 percent sharholding of Aitken Spence PLC in CICT," Aitken Spence said in a letter yesterday (Jan. 23) signed by Company Secretary R. E. V. Casie Chetty.

"Hence, we are now finalising the formalities of the transfer and will keep you informed when the transaction is competed," the letter addressed to the Colombo Stock Exchange said.

The project was estimated at US$ 500 million but cost escalations and delays have pushed the cost up to almost US$ 600 million.

Aitken Spence had pulled out of the consortium after financing from the China Development Bank fell through. Differences between the management of the two firms did not help matters either, source said.

Earlier, SLPA Chairman Dr. Priyath Bandu Wickrama said the SLPA was keen to buy over Aitken Spence’s stake, but now it seems the SLPA has allowed the stake to go over to China Merchant Holdings.

Aviation hub: Lanka increases capacity but freight, ground services need some liberalisation

January 22, 2012, 12:00 pm 

By Mario Andree

Passenger and cargo handling at the main Bandaranaike International Airport (BIA) has exceeded capacity, good signs of the potential for the country to establish itself as an aviation hub, but industrialists are concerned that freight and ground services were not liberal enough.

Airport and Aviation Services Chairman Prasanna Wickramasuriya said that the BIA handled more than 6.4 million passengers, exceeding its capacity while cargo handling also showed an increase.

However, he pointed out that the current scenario was not sufficient to become an aviation hub and said that the country needs to attract more transits passengers and cargo in order to achieve its goals. Passenger transits had increased 50 percent last year compared to 2010, he said speaking at a forum convened by the American Chamber of Commerce.

To facilitate more transits and encourage a high number of tourist arrivals, the Mattala Airport would be completed by the end of this year with 60 percent of the project already completed. The AAS would initially add a million more passengers and 100,000 cargo handling capacity to safeguard the BIA’s interest.

Wickramasuriya pointed out that more expansions were on the way for both BIA and the Mattala Airport. The BIA would able to absorb another 6 million travelers and Mattala 5 million.

In addition to these international airports the AAS has drafted plans for domestic airports. The Ratmalana Airport which was once used for military purposes would be developed as a city airport to cater to the growing number of cooperate jets flying into the country, a 28 percent growth in cooperate jet arrivals was seen last year compared to 2010, he said.

He said by end 2018, the country would have a total passenger handling capacity of 18 million and for the country to become an aviation hub the private sector would be required to establish other services and facilities to support it.

At the forum, several industrialists voiced their concerns that the freight policies were not so conducive for businesses with several issues plaguing the industry.

Industrialists also pointed out that the monopoly status enjoyed by the national carrier Sri Lankan Airlines for ground services such as catering and baggage handling, discouraged competition and made Sri Lanka a relatively expensive destination for airlines as a result.

“In order to become an aviation hub, some of these would have to be liberalised in order to attract investment and more players,” an industrialist said.

Developing the domestic aviation sector also requires the government to create a level playing field, with private operators finding it difficult to compete with the heavy military presence in the sector, industrialists pointed out.