Licenses yet to be issued for NVOCC agents under new category to resolve payment facility issue

Sri Lanka’s Merchant Shipping Secretariat is yet to issue license for Non-Vessel Operating Common Carriers (NVOCCs) under the new category to allow NVOCC agents to obtain their own port terminal payment facilities.

“We have still not been able to come to a conclusion on this matter which involves the establishment of a separate licensing category for NVOCC agents by the Merchants Shipping Secretariat and thereafter agents applying for direct payment facility with the respective terminals,” SLANA Chairman Harsha De Silva told the Association’s sixth Annual General Meeting held in Colombo last week.

A couple of weeks ago, feeder shipping lines announced that they would no longer allow Sri Lankan NVOCC agents to use their port accounts to make terminal handling charges and other port related payments while issuing a brief deadline for NVOCC agents to obtain their own port terminal payment facilities.

Subsequently, the Ministry of Ports and Shipping and Sri Lanka Ports Authority (SLPA) formed a joint committee, comprising of all stakeholders to find a workable solution to offer NVOCC lines/agents the required direct billing facility at the Colombo port terminals.

Following discussions, Director General of Merchant Shipping on 19th September last year announced that a decision had been reached to extend direct billing facilities for NVOCCs.
Accordingly, Merchant Shipping Secretariat in late October last year, called for applications from companies which intend to obtain a separate license under NVOCC category. Although NVOCCs submitted applications with mandated fees, licenses are yet to be issued by the Merchant Shipping Secretariat. 

Under the current circumstances, De Silva urged the terminal operators to extend direct billing facilities as similar to other regional hub ports.
“I would like to take this opportunity to request all port terminals which are our gateways into Sri Lanka to facilitate our members to have the required payment gateways by following similar policies at regional hub ports such as Dubai and Singapore,” he said.

Approximately 24 percent of Sri Lanka’s containerised import and export cargo volumes are handled by 60-70 NVOCC lines which actively engage in containerised shipping. Further, it is estimated that over 50 percent of import cargo from Indian ports to Colombo were carried on NVOCC containers.  

In addition, NVOCC lines and their agents bring in sizable amounts of dollar revenue to the Port of Colombo, which include local and transshipment container handling.  NVOCCs also offer local importers and exporters competitive freight rates for regional destinations served by them, giving local importers and exporters an alternative to the main shipping lines.
“As all stakeholders are aware, NVOCC lines bring in price and service stability to Sri Lankan importers and exporters,” De Silva stressed.

He also requested the government to allow recovery of local charges such as terminal handling loading/unloading and other port related charges. 
Over the years, a number of Sri Lankan NVOCC agents have evolved into principal operations and have established their own NVOCC lines and subsidiary agency offices overseas.(NF)