A study of developing Colombo Port as a major multi country consolidation(MCC) hub in South East Asia region with the help of improving the effectiveness of the MCC activities

Abstract

Sri Lanka is involving in handling transshipment and Multi Country Consolidation (MCC) practices at Colombo port during last two decades of time. This research was carried out base on the question of how could be Sri Lanka improve effectiveness of MCC activities while taking the advantage of geographical location of Colombo Port of Sri Lanka. The study was carried out with objectives of to find factors affecting to the MCC operations and to find out geographical advantage for the MCC operations. The Questionnaire was developed according to a theoretical framework which was identified after having several interviews with industry professionals and also according to a thorough review of literature. The complete factor analysis and a network analysis were carried out from the data which were collected through the questionnaires and the ship distance calculators. Through the Factor analysis, six factors were identified as respectively Costs Related to Consolidation, Effectiveness of Ship Operation, and Value added Services, Freight & other related costs to Freight Forwarders & Shipping Lines, Effectiveness of the Custom Operation, Effectiveness of Indirect operations. After comparing and concerning all the above analyses, a conclusion can be made that developing Colombo Port as a major MCC hub will be cost effective and a competitive advantage that can easily gain through the geographical location and by optimizing all the above factors which came through the factor analysis.