Sri Lanka Ports Authority and Virginia Ports Authority signs MOC
The Morning: Sri Lanka Ports Authority (SLPA), signed a Memorandum of Cooperation (MOC) with Virginia Ports Authority (VPA) in the United States of America, where the two sides have agreed to enter into a cooperative agreement for the mutual exchange of expertise and technical collaboration between the two ports.
SLPA officials travelled to the United States as a part of the Port of Colombo Capacity Building Project, supported by the U.S. Embassy in Sri Lanka and implemented by The Colombo Plan. The Port of Colombo operates under SLPA, which is the primary transshipment hub for South Asia. Additionally, the Port of Virginia, under VPA, is one of the largest ports on the East Coast of the United States and runs an automated SMART port, which is a major international gateway for U.S. trade bound for overseas markets.
The MOC was agreed upon on 15 May in Portsmouth, VA when the SLPA delegation visited the United States on a study tour through The Colombo Plan. The MOC came into effect with the approval by the cabinet of ministers in Sri Lanka on 19 June.
Minister of Ports, Shipping and Aviation Nimal Siripala De Silva submitted the details to Cabinet under the Sri Lankan Government’s ‘Ports prosperity expertise development’ theme where the MOC covers the subject areas through 10 articles consisting of information and knowledge sharing, exchange visits, sharing best practices, cooperation on general logistics, exchange of technical expertise, supporting initiatives in maritime security, liaising between parties, dispute settlement and entry into force, validity and renewal, and termination. This MOC has a validity period of five years.
SLPA Chairperson Keith Bernard and VPA General Council Sarah J. McCoy, signed the MOC on behalf of each organisation while Secretary to the Ministry of Ports, Shipping and Aviation Sri Lanka K.D.S. Ruwanchandra, VPA Director Federal of Government Affairs Andrew M. Sinclair, Port of Colombo Capacity Building Project of The Colombo Plan Lead Consultant Rohan Masakorala, and The Colombo Plan Programme Assistant Tharushini Suriyaarachchi, witnessed the signing of this historic agreement between the two institutions.
The current initiative to build capacity at SLPA will continue until 2026. The MOC is expected to facilitate productive engagement and collaboration between the parties in the maritime and logistics sectors for years to come.
OSL take:
Sri Lanka’s maritime industry is on a steady growth path in line with the target of becoming a maritime and regional hub supported by the country’s strategic positioning in the Indian Ocean and the strong trade ties. The growth in the maritime industry has resulted in the expansion of business/investment opportunities in the ports, shipping and logistics sectors. The country’s overall economic expansion has also helped boost the growth in Sri Lanka’s maritime industry. The latest MOCs between the SLPA and overseas ports would further boost operations and business between Sri Lanka and other countries. All these movements indicate the requirement for Sri Lanka’s ports and shipping sectors to improve facilities and be on par with the latest international standards. Hence, there’s an increasing need to develop the infrastructure and supplementary infrastructure facilities required by the local maritime industry to meet the growing demand. This presents a host of new business/investment opportunities in Sri Lanka’s maritime industry. Also, given the growth and business potential in Sri Lanka’s maritime industry, foreign businesses/investors could confidently explore the expanding business/investment opportunities in the industry while also looking at forming collaborations with local businesses to expand operations.