– Rienzie Cooray
Managing Director
Rienzie Cooray’s career began in 1993 with Hayleys Group, which did business with many shipping companies and airlines. Thereafter, he and an associate of Canadian/Sri Lankan origin, decided to start a business on their own and in March 15, 1997 Worldwide Logistics was set up. With the departure of his partner of Sri Lankan/Canadian origin from the country in 2012, Worldwide Logistics became his own company.
By Roy Silva
Freight Forwarding plays a major role in every country and in Sri Lanka, foreign exchange from the apparel export sector is the second highest, next to earnings from foreign remittances from Sri Lankans working abroad. Therefore we need to be highly competitive in import and export for apparels, in every aspect from raw materials and machinery imports to the export of finished products, says Rienzie Cooray, Managing Director of Worldwide Logistics Lanka (Pvt.) Ltd.Talking to the Business Management Digest, Mr. Cooray says that his company plays a major role in the import/export business as freight forwarders supplying the support service for all shipping companies.
Following are excerpts of the interview:
A brief description of your career?
It was a hard journey. My father was in the police and we were living in Police Quarters in Slave Island. I have a sister and a brother, and I was the eldest in the family. My career began with Hayleys, which was attached to a lot of shipping companies and airlines. I started my career in 1993 on the best day of the year, April 1. At that time there were many problems such as curfews, etc.
Since I was living in Police Quarters in Slave Island, it was just a short distance to my workplace. However, I also had to go to the airport to hand over certain cargo. I had to do sea freight and airfreight because logistically, I lived in the centre of Slave Island. However, I never had any complaints or disappointments and my main intention was to provide a quality service with dedication.
I did my CIM in 1997 while I was at Hayleys. However they preferred to keep me in operational areas. My English knowledge was good.
I set up my own business, Worldwide Logistics in 1997 with a partner of Canadian/Sri Lankan origin. When he left the country in 2012, I had sole ownership of Worldwide Logistics. It was a humble beginning over 20 years ago.
What is the role of freight forwarding in today’s business world?
International freight forwarding, is an essential support service for international shipping and the import export business. For example, if goods have to be imported from Melbourne to Colombo, shipping lines will accept the cargo depending on the volume of the order. Usually containers full of goods is the standard and an order of a few boxes may be declined by the company.
As freight forwarders, we accept orders from full containers to smaller orders. We have contracts with all major shipping lines and offer competitive charges. For example if the charge is $1,000 from Melbourne to Colombo, we can offer $950 as our volume of business with the shipping line is more. We also offer credit.
But if the order is for only 20 cartons, taking up about 3 cubic metres of space, we collect all such cargo, to fill a 30 cubic meter container, which is then sent to a particular location, for consolidation. For example if we have cargo to destinations like Colombo, Karachchi, India, and Singapore all cargo is first sent to Singapore.
In Singapore, the agent will get sufficient cargo to do a box to Colombo. It is called consolidation. The customer gets a competitive price and avoids the hassle of dealing directly with shipping lines.
Our trade is called International Freight Forwarding, and is often confused with Customs clearance, etc. This is actually a part of freight forwarders activity. We are actually in a network, called World Cargo Alliance (WCA), with 197 countries in the world. We have our presence in 191 countries around the world and about 7,000 offices in the freight forwarding network. With this facility, no matter from where the goods come, we can basically do the needful within 10, 15 minutes. This Sophisticated network assures us of solid business.
How does freight forwarding impact our economy?
Our import cost is high and that is why Sri Lanka has a huge trade deficit. It is only now we are talking about protectionism and increasing our agricultural products,
exports, etc.
Foreign exchange from the apparel export sector is the second highest, next to earnings from foreign remittances from Sri Lankans working abroad. As such in importing raw materials and machinery and exporting finished products, we need to be really competitive.
Our role as a support service to the import export shipping industry is invaluable as shipping companies
don’t offer all the services we do. What cannot be done by shipping companies is done by freight forwarders and clearing and forwarding companies.
How competitive are you in this business?
It is important to have correct attitudes to make use of the opportunities in our trade to offer excellent services to our customers. They are not too aware of the shipping trade. We have to have a good ethical practice.
With the backing of our network and the attitude of our staff, and competitive pricing, we have good business. The product knowledge is also good. We do get enormous competition from other people, but the only way to go forward is the right pricing and also service quality.
I always tell my staff what service quality is. Some people ask me when they are recruited, what do you mean by service quality and how do we achieve it? There are models such as SERVQUAL models. That is Service Quality, which says, Tangibility, Responsiveness, Reliability, Assurance, Emphasizing, and this is your service quality.
When customers call, you have to emphasize and you have to assure them what you can give, your reliability, responsibility. If you ensure these, your service quality is good. As such we are putting this into our KPIs (Key Performance Indicators). With these essential business practices in place we get good business and are even able to be selective.
Shipping is a huge sector with business being transactedin different ways, often lacking compliance, due to lack of transparencies in clearance formalities etc. But this is not a sustainable method of business, with no proper growth
prospects.
So, while there is plenty of opportunity we are selective and use a criterion in accepting business. Sometimes we have to decline working with some customers as we realize that their requirements do not go with our deliveries.
My father, the police officer who wrote the Police Traffic Guide in Sri Lanka, available in every police station. My father was Muthuthanthrige John Benetus Cooray, an Inspector of Police, who passed away two years ago. The values of honesty, discipline and ethics were instilled in me by him.
Compliance is compulsory to us. Building competency and being competent among peers is essential. Compliance, Competency and Capacity are essential to cater to customer requirements.
I’m also a national consultant for UN. A few weeks ago, Prime Minister, Ranil Wickremesighe launched this National Export Policy, basically aided by the United Nations World Trade Organisation. After that, it comes to ITC, International Trade Centre, which is the Launcher or Expeditor of these kinds of educational projects. I’m basically appointed by ITC as an Export Coach, which is a National Consultant position.
This again matches my mantra of Compliance, Competency and Capacity. Some businesses in our
industry don’t follow my example, but as a nation, what do we gain with that? There is plenty of talk about the liberalization of the Shipping Industry, but is it necessary? There are only a few shipping lines and they are giants and dominating the trade. They basically get me, other freight forwarders, other shipping lines to load with them, because of their monopoly.
However not much support is extended to the trade, for us to retain our hub position or an exporting country, to increase our GDP, national development.
Liberalization will open the doors for Chinese, Indian, and other competitors to our market who will introduce their systems, technology, etc. Work done by 10 Sri Lankans will be done by two Chinese workers. These things have to creep in for us to develop. With their arrival our Customs, Ports Authority, etc. will have to fall in line.
As a nation, our raw material imports have to go through a lot of issues. Unnecessary expenditure, time taken and time is money. Also, when transporting goods, say from Polonnaruwa to Colombo, if you had manufactured them on time, if the transportation takes place in the night, the goods are in Colombo within five hours. But to get the certificates to export, it will take about two, three days. So where are our efficiencies?
These compliances have to be improved. That is why actually the UN and the World Trade Organisation are pushing countries like ours, to implement these regulations. They are funding us, because they want these economies to develop.
Unethical business practices have created disparity in the industry and indeed in the country as a whole.
Take an ethical businessman and most likely he will be driving a WagonR, whereas another in Pettah will be in a Mercedes on weekends, a Delica van on weekdays! His children will use another car to go to
school. The point is how can this businessman afford so many vehicles and such luxury? Their compliance with taxation, good governance with taxes, book keeping, etc. is hidden. Actually today, people with good hearts, good minds, and doing a proper job, are riding motor bikes or very small vehicle.
Why did you choose your career in this sector?
In fact, I did not choose this sector. First my father found me a job. I went there but I did not like it because it was like a government office. Then one of my friends in Hayleys told me that there are vacancies. I went for the interview on April 1, 1993 and they wanted me to start work on that day itself. That was the beginning of my career. Then I had to travel from Slave Island to Town Hall. I really liked that job because it was very challenging and so much to learn. There is so much more to explore.
Shipping is a huge area, massive. If your attitude is right and if you have the inner drive, you can do
wonders. We have to be ethical.
My father, a well-read person, has always told me that I have some skills, knowledge, education and with
that I have some intelligence. With those, he told me, “You need to have integrity, loyalty and do the right thing”. When you are in that pack, I think you can fit in anywhere. I have created that culture in our company also. My staff are hugely supportive. Sometimes, you can run but to win you must have a team.
What drives you for results?
I had a vision. Even now, I always tell my staff, I always see six months to one year ahead. Now I’m looking at 2019 January to December, because with this economy, we need to go on par with the other nations around us. Otherwise we will be a laid-back nation. In a competitive business world which is hyper connected, despite being in the sector for decades, we have to embrace change, to survive.
What are the challenges for Freight Forwarding companies?
It’s mainly compliance issues, in a sector with lots of business. Logistics companies are mushrooming to have a piece of the pie. But I see it positively. The economy is growing, but the only thing is that the Director, Merchant Shipping, part of Ministry of Shipping, is the regulating body of international freight forwarding. So they have compliance and registration requirements. Mushroom companies take advantage of weak legislations, laws and practices from these ministries. There are many big guys who are talking about monopoly. If they intervene and solve these issues, I don’t think we need to worry about other nations coming here for quick profit and not necessarily to develop the
industry.
It is not happening and that is why liberalization is required. Then eventually these things will fall in line.
It’s a macro level issue. Otherwise you will see lots of companies coming in.
What is your message to entrepreneurs in Sri Lanka?
I think opportunities are aplenty. Today’s hyper connectivity in this world creates lots of jobs. You can be
in a sarong and a T-shirt and up a tree, if you have wi-fi and a laptop; you could be even working for a company in USA because you are a good drone flier.
In Sri Lanka, you don’t have to imitate someone. There are enough opportunities. The only thing is skills,
knowledge, intelligence, wisdom and bravery should be coupled with integrity, loyalty and discipline. If they are not there, I think that person would not do anything to the society.
Technology and terminology rule today’s businesses. I have also equipped myself with degrees, CMA and
CIM qualifications. I was going to many discussions and sessions of CIM and they know me. From the UK, they elevated me to a Fellowship. I am now completing Chartered Institute of Management Accountancy.
For anyone, irrespective of their age, studying is very essential. With ICBT I learned a lot. I was also a leader of our team called ‘Adventurers’. We always did everything out of the box and based on that, our team was named as ‘Adventurers’. At that time, from 2015 to 2017, we were well known