The global economy is based on an efficient transportation of goods among countries and continents, and today over 90% of the world's trade is

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2 The global economy is based on an efficient transportation of goods among countries and continents, and today over 90% of the world's trade is transported by sea. The Maritime traffic can have negative consequences, such as vessel accidents potentially leading to a loss of life and cargo, and detrimental impacts on the environment 2

3 The IMO/ILO develops uniform international standards. Local administration develops Legislations 3

4 SOLAS - safe construction of ships, fire protection, safe navigation, lifesaving and ship surveys. MARPOL - prevention of pollution from oil, Noxious liquid in bulk, harmful substance in package,, sewage, garbage and air pollution. COLREG basic "rules of the road. 4

5 LOADLINE - Minimum permissible free board. TONNAGE - permissible gross and net tonnages STCW - Standards of Training, Certification and Watchkeeping for Seafarers, 1978 as amended ILO Labour issues such as hours of work, medical fitness and seafarers' working conditions. This was superseded by the MLC

6 East West shipping route passing just 6 to 10 miles from Island. More than vessel passing a year. More than 1/2of world oil. ½ of container shipments Passenger Vessels Domestic cargo and fishing vessels 6

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8 As an important Maritime Centre, Most of the Sri Lankan Maritime regulations are transposed from IMO/ILO maritime conventions. Responsibilities are covered by various government entities. Flag /Port state inspections Maritime Affairs Integration committee (MAIC) 8

9 . NARA SL NAVY MSS MARITIME AFFAIRS INTEGRATION COMMITTEE(MAIC) MET MEPA SLPA CBO RADIO TRC 9

10 MAIC shall evaluate the existing division of responsibilities and activities amongst members through a recognized methodology and determine the effectiveness of the existing structure MAIC will review all legislative/parliamentary acts adopted relating to primary legislation ratifying the various mandatory IMO instruments. All related subsidiary legislations, orders, decrees and other regulatory issuances will be identified. Any existing gaps will be identified within the regulatory framework through a proper evaluation. Amendments, protocols and circulars to IMO mandatory instruments and new conventions coming into force which are circulated and will be discussed and evaluated. MAIC will highlight the need of amending applicable legislations to reflect the latest changes to mandatory IMO instruments in order to establish an effective maritime administration 10

11 Size of the vessels Number of Vessels Fast movements Short port stay 11

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15 Government has not been able to modernize the major ports. Unskilled and untrained labour Manned making a direct effect on efficiency Political pressure Pressure from trade unions Absence of incentives 15

16 Insufficient dredging capacity Lack of technical expertise Lack of equipment for handling large volumes Inadequate road networks within the port area Weakness of Coastal shipping and inland waterways 16

17 Develop the port with the help of public-private partnership (PPP) projects Development of port sector master plan Port policy 17

18 Offering a special tax incentive for investments Certain policies to be reformed in order to accelerate the development of ports Implementing new land policy for ports Establishing a port regulator to monitor and regulate services,technical and performance standards Corrective actions against slide 15 and 16 18

19 TRINCOMALEE colombo HAMBANTOTA GALLE 19

20 KANKASANTHURAI POINT PEDRO TRINCOMALEE colombo OLUVIL GALLE HAMBANTOTA 20

21 Colombo Port Expansion Project (CPEP) Colombo South Harbour 7.2m teu s Phase 1 Breakwater 6.8km Three Container Terminals Navigational Data Channel depth 20m Basin depth 18m / Area 285ha Two way - channel & entrance South Terminal - CICT Three berths 1,200m Quay Land area of 58ha Annual Capacity 2.4m TEU S Terminal cost - $ 500 m PPP / BOT China Merchant 85% + SLPA 15% Fully Operational East Terminal Three berths 1,200m Quay 450m operational by 2018 Phase 2 Extension of break water One Container Terminal 21

22 Hambantota Automobile Handling No. of Ships Domestic 6,411 26,458 37,923 69,195 Transhipment 4,338 (40%) 38,064 (59%) 160,502 (81%) 116,257 Total Vehicle Handling 10,749 64, , ,452 22

23 Phase II & III - Hambantota Port Development Project Phase III Container Terminals Phase II 7 Berths with -17m depth Basin 17m Artificial Island Investment US $ 808million 23

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