THE INSTITUTE OF AUTOMOTIVE ENGINEERS A Sustainable Commercial Hub in Sri Lanka: The Role of Automobile Industry

1. A SUSTAINABLE COMMERCIAL
HUB IN SRI LANKA: THE ROLE
OF AUTOMOBILE INDUSTRY
Dr. A. W.Wijeratne and Lalith Edirisinghe
21st November 2015
Grand Ball Room, Galadari Hotel
Innovation and Technological Advancement to Develop
Sustainability

2. PREAMBLE TO DISCUSSION
 Automobile industry plays a hidden yet very
crucial role in country’s logistics and supply
chain activities
 The objective of converting the country to a
naval, aviation, commercial hub in Asia is much
dependent on the efficient and effective mobility
 There is no rail network in place to compliment
the container transportation
 A sustainable Commercial Hub in Sri Lanka
would be possible only if policy makers pay due
attention to the problems faced by the trucking
industry


3. THE KEY OBJECTIVES OF THE
STUDY
To examine the efficiency of
container transportation by land
Identify the impact of road
congestion on container
transporters
Propose recommendations and
further research

4. INTRODUCTION
 Therefore, factors that influence in
transport time was examined
 Transport time depends on four factors
 Human
 Vehicle
 Environmental
 Road

5. LITERATURE REVIEW
 Truck transportation receives greater attention
in recent times
 Containerized trade
 Bigger ships
 Rising level of port competitiveness
Islam & Olsen, (2014)
 Traffic Congestion particularly in and around
ports is a serious problem for trucking companies
and comes at a high cost
 Higher freight rates
 Diminished road safety
 Discouraged drivers
 Reduced regional economic competitiveness
(Kathawala & Tueck, 2008)

6.  Efficiency of container transportation on
land may be described as maximization of
service or minimization of cost
 This means
 Mobility and safety
 Utility
 Productivity
 Accessibility
considerations of transportation on
land by roads.
- Levinson, D. (2003)
LITERATURE REVIEW

7. FACTORS INFLUENCING THE
TRANSPORT TIME (TT)

8. METHODOLOGY
P/1
 Opinion survey
 102 major trucking companies(Members of
Association of Container Transporters Sri Lanka
 Responses from 61 respondents were obtained
realising a response rate of 59.80%
 51 questions covering
 General
 Road related issues
 Time related issues
 Port related issues
 Customer related issues
Container yard related
issues
HR related issues
Vehicle related issues
Environmental issues

9. Suggested nine potential solutions
1. More expressways
2. Dedicating a single lane to truck traffic
3. Imposing a toll on all vehicles travelling during rush hours
4. Better coordinating of traffic Signals
5. Truck-only lanes on some surface streets
6. Truck-only streets for access to ports
7. Effective system to attend emergency crews in clearing
accidents
8. Installing electronic clearance stations at international
border crossings
9. Eliminating some on-street parking during certain periods.
METHODOLOGY
P/2

10.  Data of 649 truck movements of a Transporter
 Depth interviews
 Association of Inland Container Depot Operators
 Ceylon Association of Ships Agents, Sri Lanka
 Association of Vessel Owners
 Sri Lanka Shippers Council
 Ceylon Chamber of Commerce
 Department of Inland Revenue
 Customs and Board of Investment of Sri Lanka
 Secondary data
 Connecting to Compete Reports
 Global Competitiveness Index
 Doing Business Reports
 Central Bank of Sri Lanka
 Future projections of Ports in Sri Lanka
METHODOLOGY
P/3

11. DATA ANALYSIS AND
FINDINGS
New registration of motor vehicles 2004 – 2012
Sources: Department of Motor Traffic & Central Bank (2014)

12. DOMESTIC IMPORTS AND EXPORTS
CONTAINERS - SRI LANKA 2004- 2014
Source: (CASA Per. Review, 2004-2014)

13. KEY MOVEMENTS OF CONTAINERS
13
Laden Imports from
Ship
Empty container
transported to exporter
CFS inspect the
container & and
store
Repairs & Washing Empty container
transported to CFS
Import Laden container
transported to consignee
Cargo de-stuffed
by Importer
Exporter load cargo
and send to port
Import container
discharged at port
Laden Exports to Ship
1
23
4

14. COMPARISON OF COMPANIES
ENGAGED IN BOTH PICK UP AND
DELIVERIES
Out of 61 respondents 59 respondents (97%) were engaged in both
pickups and deliveries at port for intermodal operations.
Therefore there is a possibility
that trucking company may
arrange an export container to
be transported to the port and
collect an import container in
the return trip.
However this is only possible
depending on their customers’
requirements and
arrival/berthing arrangement
of ships in port

15. HOW THE INDUSTRY
PERCEIVES THE CONGESTION
PROBLEM
96% view traffic
congestion as a
problem
79 percent as a
critically serious
problem

16. MISSED DUE TO
CONGESTION

17. (1) ROAD RELATED ISSUES
Global Competitiveness Index
Source: World Economic Forum

18. ROADS AROUND COMBO THAT HAS MOST
TRAFFIC CONGESTION- AS PER TRUCK
DRIVERS

19. (2) TIME RELATED ISSUES
Time duration that caused most
traffic congestion
Whether transporters wait for
less congested time

20. (3) PORT RELATED ISSUES
Delays occurred at port

21. Reasons for delays at port of Colombo
(3) PORT RELATED ISSUES

22. CONGESTION AT PORT
IMPACTS ON
TRANSPORTERS

23. (4) CUSTOMER RELATED
ISSUES
Impact of customer related issues on transporters

24. OVERALL CUSTOMER
PERCEPTION
Source: World Bank (2014)

25. IMPACT OF CONTAINER
YARD RELATED ISSUES

26. (5) HR RELATED ISSUES
Impact of HR related issues

27. (6) VEHICLE RELATED
ISSUES
Impact of vehicle related issues

28. (7) ENVIRONMENTAL ISSUES
Impact on environmental factors

29. EFFECTIVENESS OF
CONGESTION MITIGATION
IDEAS
Q Potential solutions to
congestion problems
Strongly
disagree
% Disagree % Nutral % Agree % Strongly
agree
%
43 Adding more expressways
wherever possible
1 2 2 3 5 8 48 79 5 8
44 Dedicating a single lane to
truck traffic wherever possible
0 0 0 0 2 3 30 49 29 48
45 Imposing a toll on all vehicles
travelling during rush hours
45 74 8 13 3 5 5 8 0 0
46 Better coordinating of traffic
Signals
0 0 0 0 11 18 26 43 24 39
47 Having truck-only lanes on
some surface streets
2 3 13 21 16 26 10 16 20 33
48 Having truck-only streets for
access to ports
0 0 0 0 1 2 36 59 24 39
49 Having an effective system to
attend emergency crews in
learing accidents
1 2 1 2 4 7 48 79 7 11
50 Installing electronic clearance
stations at international
border crossings
3 5 4 7 6 10 39 64 9 15
51 Eliminating some on-street
parking during certain periods
3 5 5 8 4 7 34 56 15 25

30. Weightings of the perceptions of trucking
companies towards proposed solutions
Solutions Weighting
1 Dedicating a single lane to truck traffic wherever possible 0.1324536
2 Having truck-only streets for access to ports 0.1304985
3 Better coordinating of traffic Signals 0.1256109
4 Having an effective system to attend emergency crews in clearing
accidents
0.1182796
5 Adding more expressways wherever possible 0.1158358
6 Eliminating some on-street parking during certain periods 0.115347
7 Installing electronic clearance stations at international border
crossings
0.1124145
8 Having truck-only lanes on some surface streets 0.1055718
9 Imposing a toll on all vehicles travelling during rush hours 0.0439883

31. CONCLUSIONS
 Experts view Sri Lanka as a potential
location to establish a Commercial hub
 Given the negligible rail participation the
need for efficient road transport is a must
 The congestion problem creates a serious
impact on Container Transportation
 Policy improvements are essential to
improve
 Qualitative aspects of vehicles
 Vehicle fleet management systems
 Road congestion management efforts

32. Absence of timely and rapid application
of technological developments may
impact on the sustainability of
Commercial hub concept
Congestion mitigation measures are
needed especially in the urban areas
Policy decision on road related actions
should be seriously considered
CONCLUSIONS

33.  Based on the new Commercial Hub Regulation
No. 1 of 2013 a truly synchronized operational
procedures to be introduced by
 Department of Customs
 Board of Investment of Sri Lanka
 Sri Lanka Ports Authority
 Electronic clearance stations at international
border crossings
 Further improvements in maritime intermodal
operations
CONCLUSIONS

34. FURTHER RESEARCH ARE
RECOMMENDED FOR………..
Dedicating a single lane to truck traffic
Truck-only streets for access to ports,
rail terminals, and airports
Eliminating on-street parking during
certain time periods
Better coordinating of traffic Signals
Effective system to attend emergency
crews in clearing accidents

35. THANK YOU…………