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Emirates SkyCargo has been enjoying double digit growth in Sri Lanka but it wants the country to maximize the inherent potential for higher prospects by getting policy and infrastructure issues right.

The advice came from Emirates Senior Vice President Cargo Ram Menon who was in Colombo recently.

“We have recorded growth rates of 12% to 15% year on year in Sri Lanka which is satisfactory in relation to the rate of growth of the economy. However Sri Lanka has the potential to grow much faster both in terms of the economy and as a sea-air and logistics hub,” Mr. Menon pointed out.

He said that India and China are the two most booming economies and Sri Lanka being in close proximity to the South Asian giant use this phenomenon as an opportunity and can immensely benefit. “A booming India is positive for Sri Lanka. The country must do its best to benefit most,” headed.
It was also pointed

out that Sri Lanka also has to its advantage quicker and preferential access to India thanks to the Free Trade Agreement while Colombo also can be the best conduit or the hub for South Asia under the region’s Free Trade Agreement (SAFTA).

He said that higher growth in India and the region if used to Sri Lanka’s advantage will require an overhaul of Colombo’s hub status with capacity, speed, and reliability.

In that context Emirates SkyCargo chief said air cargo capacity must be strengthened further whilst ensuring existing facilities are put to fuller use. “A lot has already been done to expand the airport’s capacity. We are confident that a further expansion of the cargo facility at the BIA is justified,” Menon said adding that the present facility of 8000 M3 will not be sufficient to support project growth.

An enhancement of handling equipment, x-ray machines and office space for customers, agents and airlines will definitely benefit Sri Lankan exporters as well as the overall air cargo industry.

Given the existing high growth and future potential for perishables in and out of Colombo, Emirates SkyCargo chief also said that a well-equipped perishable centre will be helpful.

Among other suggestions include the introduction of a ready-for-carriage concept in Sri Lanka and a dedicated facility for handling courier cargo. Colombo preparing early for the eventual future of eFreight was also stressed. This preparation should encompass all stakeholders including the airport, Customs and the air cargo industry.

Emirates operates about 90 scheduled flights a month to Sri Lanka and all of them are utilised by Emirates SkyCargo. It also operates freighters from time to time when there is an increase in the demand for air cargo space thereby providing extra support and flexibility to its Lankan customers.

Emirates SkyCargo accounts for approximately one eighth of the air cargo out of Sri Lanka, giving it a market share of more than 12%. This also makes Emirates the largest air cargo carrier among the foreign carriers that serve Sri Lanka.

Of the total Emirates SkyCargo uplift 55% is perishables, mostly edible fish, fresh fruit and vegetables, 40% is general cargo and 5% courier. In imports Emirates SkyCargo is responsible for about 10 per cent of the total inbound air cargo.

Mr. Menon said Emirates SkyCargo’s performance in Sri Lanka is always above target. “Our product leads the market in quality, innovation and best practices,” he added.

Emirates SkyCargo supports some of the key sectors of the economy including fisheries, agriculture and garments. For example it is the one of the biggest carriers of edible fish into Europe. It also transports substantial volumes of agricultural produce such as fresh fruit and vegetables.

The aquarium industry is also an important client, and Emirates SkyCargo is a key player in the transport of exotic tropical fish.

It was in this context as well as Sri Lanka’s overall prospects that Emirates SkyCargo is suggesting well-equipped perishable centre.

The freight arm of Emirates is also a significant service provider to apparels exporters while courier is another key business sector it serves.
Commenting on immediate growth prospects, Mr. Menon said export volumes from Sri Lanka have been growing at an average of 5% to 6% over the last few years. “A significant change we see is that there is increasing demand for edible fish from Sri Lanka.

This could push growth up to 7% - 8% in the years ahead,” he added.
According to Mr. Menon the planned construction of a second international airport, the Colombo South Port project and the expected exploration for oil will result in a notable increase in the import of heavy machinery and spares.

“We look forward to supporting these developments by providing capacity for import cargo,” he added.