Changing global macro environment huge challenge to Asian ports: SLPA Chairman

“We need to understand that the demand for the carriage of goods is a derived demand and it is derived out of demand for trade.  Ports and shipping have to follow trade,” said Dr.Parakrama Dissanayake – Chairman of Sri Lanka Ports Authority (SLPA).  

Dr. Dissanyake made these remarks at a recent presentation titled ‘Why Ports Have to be Demand Driven?’  The Ceylon Chamber of Commerce had organized the seminar at its auditorium with a series of presentations on the Hambantota Port and the industrial zone.  Several experts and professionals in the maritime business transportation expressed views through presentations at the seminar. 

Expressing views over the topic, the Chairman of SLPA Dr.Dissanayake stated that port  and shipping thrived in Asia under a simple business model. “Whilst the production was taking place in Asia it was taking place only because there was consumption taking place in the United States and the West. Therefore, the production was outsourced into Asia. This model is changing and has changed, to near-shoring and re-shoring  which is placing a huge challenge to the carriage of goods by sea, out of Asia,” Dr. Dissanayake said.  

He also stated the outsourcing model into Asia had been challenged due to increase in cost in Asia, loss of employment in the US and Europe and the adverse situation pertaining to the creation of new employment in the developed world. 

He said due to the huge investment required, the port had   to be ‘Demand Driven’ and the ports in Sri Lanka  were  ideally positioned to seize opportunities provided it continued to create the competitive advantage required in the changing global environment. 

Dhara Wijayatilake, Secretary General & CEO of the Ceylon Chamber of Commerce moderated the seminar. Mangala Yapa – Director of the Board of Investment of Sri Lanka and Hang Tian – Deputy General Manager of the China Merchant (Port) Holdings Company Ltd; also made special presentations at the programme  in  which a  large gathering of the maritime fraternity  attended.