Q: How did IAS Holdings’ journey in the logistics sector begin?
A: IAS Holdings was my entry into the world of entrepreneurship. Following a stint in one of the largest MNCs in the logistics arena for the better part of 16 years, I felt it was the opportune moment to take on a different challenge.

The group was set up in 2016 with the vision to represent and provide investments, local expertise, and strategic and trusted partnership, to any business, network or individual looking to set up a logistics business in Sri Lanka.

Presently, IAS Holdings is a Rs. 6.8 billion group with three companies in its portfolio – namely, joint ventures with one of Asia’s largest logistics companies based in Hong Kong, an investment and partnership with a US-based company, and a wholly owned Sri Lankan brand.

The three companies function independently with their own management teams. They have unique value propositions and cater to niche customer bases.

Our group recently expanded its footprint in Bangladesh through a partnership with the aim of achieving global expansion directly or by leveraging existing partners.

IAS Holdings focusses on contract logistics and the consultancy business, managing more than 150,000 sq ft of warehousing space that offers value addition to customers.

Q: What has been your most significant achievement in an otherwise male dominated sector?

A: I’m humbled to have served as the first female chairperson of the Sri Lanka Logistics & Freight Forwarders Association (SLFFA), as well as being the first female to hold this title in the Indian subcontinent and perhaps even Asia.

I was bestowed with the Outstanding Woman Entrepreneur award at the Top50 Professional and Career Women Awards for Sri Lanka and the Maldives 2020. The awards were presented by Women in Management (WIM) in association with IFC, the World Bank Group and the Government of Australia.

Q: From a regulatory standpoint, what more is needed to make the most of the island’s locational advantage?
A: The government needs to make our investment climate more conducive and develop the right incentives for private sector participation.

We need to encourage more leading logistics companies to manage their global or regional operations from Sri Lanka. And more effort is needed to turn the island into an attractive location for capital and foreign direct investment (FDI).

Q: What is your assessment of the pace of adoption of new technologies and innovations in terms of enhancing the sector’s distribution channels?
A: Our sector has been pushing and gearing to embrace technology even before the detection of COVID-19.

Technologies such as e-documentation, e-deliveries, connectivity with border agencies through online platforms, back office automation systems and virtual meetings have played crucial roles during this period. They have enabled us to swiftly improve our technological awareness.

The office environment of the future will be increasingly technology-based with connectivity between customers and service providers being of paramount importance to stay competitive.

We also need to be aware of blockchain technology and the role it will play in the future of business.

Q: And what are the main challenges faced by the sector today?

A: The shipping and freight sectors are facing insurmountable challenges beginning with hikes in freight rates – shipping costs have quadrupled over the past few months.

The sector is faced with other limitations too – viz. a lack of capacity, container rollovers, vessels bypassing Sri Lanka, port and terminal congestion, a lack of equipment, restrictions on air freight operations, airport terminal backlogs, and the fluctuating parity between the Sri Lankan Rupee and US Dollar.

A variety of market forces – including the pressures arising from lockdowns and ‘travel restrictions’ – act as contributing factors to these limitations.

The challenges that have arisen due to the pandemic will take time to be resolved. An expert would have a hard time predicting the outcome of these threats.

Equipment shortages and shipment delays caused by the Suez Canal incident are immediate reasons for freight rate inconsistencies.

In addition, COVID-19 was the catalyst for containers being dumped in inopportune locations.

The reduced pace of ports and intermodal connections compels containers to spend 20 percent more time in the system. It is unfortunate that this predicament runs the risk of deteriorating further.

Our main challenge in the long run is keeping pace with modern technologies and the continuously evolving competition as a result of shipping lines increasing their worth by means of backward integration.

Q: And finally, what are the lessons that can be learnt from leading regional logistics hubs?

A: We need to focus on transforming our ports from transshipment hubs to fully integrated maritime service centres catering to regional requirements.

And we need to work towards building connectivity, investing in innovative infrastructure and processes, and encouraging private sector participation if we’re to achieve this goal.

Free trade agreements (FTAs) signed between 30 trading partners have enhanced Singapore’s access to major markets. This encourages companies to operate from Singapore as they know that they’re privy to frequent and reliable connections to reach global markets. Sri Lanka needs to adopt a similar strategy.

Dubai is another regional port that wields state-of-the-art infrastructure, world-class maritime and logistic capabilities, a competitive business environment, and investment and free trade zones that offer integrated services. These capabilities enabled the port to outperform high profile maritime centres such as Rotterdam and Hamburg in a relatively short period.

The Dubai and Singapore ports are leaps and bounds ahead of their counterparts due to their long-term orientation in every part of the logistics chain.

Similarly, Sri Lanka needs to prioritise building capacity and efficiency that caters to all types of logistical requirements.

Moreover, the government needs to recognise the importance of including the private sector in policy decisions. This will ensure that we remain responsive to the needs of the logistics sector on a global scale.

INTERVIEWEE DETAILS
Tania Polonnowita Wettimuny
Entrepreneur
Group Managing Director
 COMPANY DETAILS
Telephone:4456700