Logistics Nightmare

Dec 07, 2007 (LBO) – Sri Lanka's logistics industry is calling for action to get a paperless cargo clearing system on track, through a new operator or allowing competition, five years after a part state-owed firm was given the task. Logistics and shipping firms that wanted to cut cost and speed up cargo clearance are frustrated about how things have turned out.

Brimming optimism five years ago about a logistics hub emerging in Colombo has now given way to anger and frustration.

"The current service provider will never achieve the objectives, so I urge the private sector to lobby government to throw away the current service provider or get a new service provider to compete with them," Niral Kadawatharatchie, chairman of the Freight Forwarders Association told a logistics trade seminar organized by the Asian Development Bank.

"There is no hub status for Colombo if we donâ€™t have electronic connectivity to function the hub port."

The association represents the 70 biggest companies that help importers and exporters reserve space in ships and aircraft.

Struggling

eServices Lanka, a joint venture with the government and the Bartleets group agreed with the trade ministry five years ago to imp