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NVOCCs to be issued license under new category allowing direct billing facilities

13 Jan 2023 - {{hitsCtrl.values.hits}}      

By Nishel Fernando
Sri Lanka’s Merchant Shipping Secretariat plans to issue license for Non-Vessel Operating Common Carriers (NVOCCs) under a new category allowing direct billing facilities next week.
Currently, feeder ship operators pay the Port Handling Charges (PHC)/Terminal Handling Charges (THC) to the terminals on behalf of NVOCCs who would subsequently reimburse the feeders. 


However, early this year, feeder ship operators informed that they were not in a position to carry the NVOCCs Cargo to and from Colombo unless they come up with a direct billing facility with the three terminals of the Colombo port.


Subsequently, the Ministry of Ports and Shipping and SLPA Chairman have formed a joint committee, comprising of all stakeholders to find a workable solution to offer NVOCC lines/agents the required direct billing facilities at the Colombo 
port terminals.


Following the 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.
“.. As per the decision taken by the committee on direct billing facilities for NVOCC agency at the SLPA, JCT, SAGT, and CICT Terminals, the licenses under the category of the NVOCC operators will be issued by the Merchant Shipping Secretariat on request of the service provider in accordance with the provisions of the Regulation No 1877/26 dated 28th August 2014 promulgated under the Licensing of Shipping Agent Act no 10 of 1972,” a statement said.

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, licences are yet to be issued by the Merchant Shipping Secretariat. Feeder operators have agreed to continue the current practice of paying charges to terminal operators on behalf NVOCCs until 31st of this month.


Commenting on the matter, a senior official at the Merchant Shipping Secretariat told Mirror Business that licenses for NVOCCs under the new category would be issued next week. As per 2021 figures, approximately 23 percent of Sri Lanka’s containerised import and export cargo volumes were handled through NVOCC container lines. 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 includes 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.