Sri Lanka

In progress

Developing the trade facilitation framework for multi-country consolidation

Establishing Sri Lanka as a world-class regional logistics hub

Get involved
S

Sri Lanka is positioned in the centre of the Indian Ocean at the crossroads of international trade, making it ideally located to become a key regional logistics hub. To realise this vision, Sri Lanka needs to put in place the right processes and legal framework for multi-country consolidation (MCC). An MCC hub is an intermediate point where multiple shippers from multiple origins consolidate their shipments to build Full Container Loads (FCL), before sending them on to their next destination. MCC offers traders flexibility, lower transit costs and more efficient service.

What we are doing

We are working with the government and the private sector to establish an MCC model in Sri Lanka.

Our project involves:

  • reviewing existing laws and regulations and devising a model MCC legal framework
  • mapping the time and documentation requirements to move cargo to and from an MCC facility with a view to targeting efficiencies
  • undertaking a baseline assessment of port tariffs and the fee structure for MCC operations
  • organising information sharing events for the public and private sectors
  • supporting the design and roll-out of an MCC Authorized Operator Program
  • developing an in-transit bond regime that secures the movement of goods between the port and the MCC warehouse
  • identifying the financial and operational requirements for the development of MCC infrastructure

Benefits

The establishment of an MCC model in Sri Lanka is a win for the government, the private sector, and the wider Sri Lankan population. It will:

  • improve the competitiveness of Sri Lanka’s exports by providing an access point to global supply chains at lower prices and with increased frequency of shipping
  • lower transit costs of trading small quantities of goods, giving small and medium-sized enterprises new access to trading partners around the world
  • increase trade flows through Sri Lanka
  • create opportunities for value-added services in Sri Lanka, such as packaging, labeling, quality control, repairs and basic additional processing, driving economic growth and creating local jobs
  • attract foreign direct investment in MCC infrastructure

Monitoring and evaluation

We are monitoring and evaluating the project throughout its duration. Key indicators include:

  • the number of documents required to pass MCC cargo through customs
  • the time taken to move cargo between the port and existing MCC facilities
  • the number of infrastructure improvement projects the Sri Lanka Port Authority and private sector investors commit to undertake
  • the number of private sector companies accredited through the newly established MCC Authorized Operator Program.

Private sector support

In Sri Lanka we are looking for businesses to get involved in a wide range of activities including:

  • advising best practices in MCC operation and legal and regulatory reforms
  • developing an in-transit bond regime
  • assessing the port tariff / fee structure
  • developing the MCC Authorized Operator Program
  • infrastructure planning

Timeline

The project will be implemented in three phases over 30 months, starting in 2018.

Phase 1

12 months

Preparing the MCC reform process

Phase 2

6 months

Supporting the MCC reform process

Phase 3

12 months

Assisting in the transition to scaled-up MCC operations

Get involved

Find out how to get involved in the wider Alliance by clicking the boxes to the right.

Contact us in Sri Lanka