Sri Lanka

In progress

Developing the trade facilitation framework for multi-country consolidation

Establishing Sri Lanka as a world-class regional logistics hub

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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

Project structure 

Phase 1

In development

Preparing the MCC reform process

Phase 2

In development

Supporting the MCC reform process

Phase 3

In development

Assisting in the transition to scaled-up MCC operations

Testimonials

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Eston Sakala

Eston Sakala, Managing Director, Evolution Logistics and Solutions, Lusaka
Eston Sakala set up his own clearing and forwarding business in 2016 helping traders to move their goods in and out of Zambia – a profession he has been in for 17 years. In three short years he has grown his business from scratch to employ 18 staff with a customer base spanning Zambia’s key import and export sectors. “My goal now is to build capacity in my business, embrace technology and deliver my service to the level of a DHL,” says Eston. “I’d love to see the day when I can sit in front of my screen and watch trucks being processed by Evolution in real time, every minute, every hour. I want to be the go-to business for quick and correct clearances.”
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Amgad Shehata

Senior Vice President of International Public Affairs and Strategy at UPS
UPS is the world's largest package delivery company and a leading global provider of specialised transportation and logistics services. Every day, it manages the flow of goods, funds, and information in more than 200 countries and territories worldwide. “We believe that we can propel sustainable development and business performance at the same time. Helping countries to implement the World Trade Organization’s Trade Facilitation Agreement (TFA) allows us to do exactly that. Facilitating cross-border trade completely aligns with our customers’ needs while holding the promise of driving economic growth and creating a more equal society across the globe."
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Alex Perkins

Senior Manager for International Government Affairs at FCA
Fiat Chrysler Automobiles (FCA) designs, engineers, manufactures and sells vehicles and related parts and services in more than 140 countries. Moving goods across borders is part of its everyday operations. “FCA decided to get involved in the Global Alliance because it provided a unique opportunity to leverage the company’s in-house customs and supply chain management expertise to drive economic growth in developing countries in a way that is also meaningful for our local operations in those countries."
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Revathi Roy

Revathi Roy, Co-founder and CEO, HeyDeedee, Mumbai
Revathi Roy set up India’s first all-female delivery company HeyDeedee in 2016 to offer new training and professional opportunities to low-income women in Mumbai. Three years later, her business operates in 10 Indian cities, employs 10 000 women agents, and has partnerships with giants like Amazon. “A career in logistics is not an intuitive leap for Indian women since this field has been largely dominated by men. Parents see jobs in the call centre industry as a safer option for their daughters,” explains Revathi.
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