CSC initiates private sector participation on Indian Ocean cargo, passenger ferry services

The Expert Group Meeting organised by the South Asian Association for Regional Cooperation (SAARC)/Asian Development Bank (ADB) on ‘Indian Ocean Cargo and Passenger Ferry Services’ was held recently at Hilton Colombo Residencies and concluded successfully. 
The finalized report of the Expert Group Meeting was handed over to Ports and Shipping Secretary L.P. Jayampathy at the closing ceremony by Ministry Director and SARRC Secretary General representative Ali Haider Altaf. 
A launching of Indian Ocean cargo and passenger ferry services between the SAARC regional countries was originally recommended at the Fourth Meeting of the SAARC Inter-Governmental Group on Transport, which was held in New Delhi on November 22, 2010. It was initially proposed to commence on a sub-regional basis including India, the Maldives and Sri Lanka and to connect ports along the South Asian coastal line from Karachi to Mongla/Chittagong.
SAARC together with ADB funded the project to identify the most appropriate methodology to start a ferry service connecting the Maldives, Sri Lanka and India with required technical assistance/consultancy services for the feasibility study.
The SAARC Secretariat circulated the draft report of the feasibility study in December 2011 among the members seeking comments/observations of the concerned member states – India, Sri Lanka and the Maldives. The subsequent Expert Group Meeting was held in the Maldives in November 2012   to discuss the technical issues and finalize the tendering process. Ceylon Shipping Corporation (CSC) Deputy General Manager Commercial Chitra Jayasinghe had represented Sri Lanka and presented data/comments based on the past experience that CSC has had on passenger ferry service operated between Colombo and Tuticorin during the year 2011.
ADB incorporated same into the draft final report with the comments from other member states and circulated again among the members through SAARC Secretariat and forwarded to the ADB consultancy group for further action. In June 2015, ADB submitted the supplementary feasibility study report on the basis of all the data/comments provided by the member countries with the observations of ADB consultants to the SAARC Secretariat.
The Expert Group Meeting held recently in Colombo with the participation of member states, SAARC, ADB and SAARC Development Fund (SDF) deliberated on the views/comments in order to finalize the recommendations to commence a ferry service connecting regional ports, at the earliest.
The meeting on SAARC Cargo and Passenger Ferry Services was inaugurated by Jayampathy and he emphasized the importance of the proposed service between the regional countries in view of economic development, international trade, tourism and to promote people-to-people connectivity.
CSC Chairman Shashi Dhanatunge warmly welcomed all the delegates to the Expert Group Meeting on SAARC Cargo and Passenger Ferry Services as the leader of the host country of 
this event. 
He mentioned that the Indian Ocean carries one half of world’s container shipments, one-third of the bulk cargo traffic and two-thirds of the oil shipments, though three-fourths of this traffic goes to other regions of the world. Dhanatunge also mentioned that the Indian Ocean region hosts over 40 states and nearly 40 percent of world’s population. It is vast and diverse, home to great cultures and holds immense opportunities for 
the future.
He further stated that a new report by UBS and PricewaterhouseCoopers found that one billionaire pops up in Asia every three days, outpacing all other regions in the world. India is home to the fourth largest population of millionaires in the Asia-Pacific region, with 2.36 laks such high-net-worth individuals, while Japan topped the list with 12.60 laks people.
The working session of the meeting was opened by Altaf. As per the SAARC practice, the leader of the delegation of the host country, CSC chairman, was elected as chairperson of the meeting.
Singapore Global Maritime and Ports Services (Pvt.) Ltd Senior Consultant George Teh Kweehong presented the draft final report on SAARC Cargo and Passenger Ferry Services and briefed the methodology and recommendations to commence a ferry service among the regional countries.  
Sri Lanka Ports Authority (SLPA) Chief Manager Marketing and Business Development Upul Jayatissa made a detailed presentation in terms of infrastructure and  facilities of the available terminals to launch a ferry service and highlighted that the SLPA is very positive on this realistic proposal and ready to facilitate with the growing demand.
The CSC being the pioneer and an experienced operator of this proposed cargo and passenger ferry services in the past has already commenced discussions with a few international and local companies for a public-private partnership (PPP). 
For the first time and on the initiatives of the CSC, the SAARC Secretariat has consented to invite the private sector for the Expert Group discussions on the first day of the working sessions. Thereby, Kings Investment (Pvt.) Ltd, Simatech Marine Lanka (Pvt.) Ltd, Pathfinder Shipping (Pvt.) Ltd and Aitken Spence Shipping (Pvt.) Ltd were made able to participate.
On the second day, the most important day of the meeting, was limited only to the member states, SAARC Secretariat, ADB and SDF to finalize the discussed areas and to make recommendations. It was agreed to commence a ferry service between Sri Lanka and India initially and to extend it to the Maldives, Bangladesh and Pakistan at the later stage, in phases. 
Ascertaining the viability of the ferry service between Colombo and Tuticorin, it was suggested to encourage PPPs and to request for proposals from the private sector to be sent to the CSC on or by January 15, 2017.
The SAARC Secretariat may approach ADB for finalization of the tendering documents for SAARC cargo and passenger ferry services, subsequently.
An official of CSC confirmed that it is ready to accept viable project proposals on PPP models for the commencement of Colombo-Tuticorin sector from interested local and international companies, on or before the closing date.