Evaluation of Challenges and Opportunities in Application of Green Practices to Shipping Firms in Sri Lanka

Abstract

Sri Lanka is a global pioneer in maritime industry due its strategic location in the mid of busiest shipping routes. Therefore, shipping industry becomes prominent and shipping agents who provide wide range of services to the vessels arriving at ports plays a vital role in economic and environmental sustainability. The purpose of this study is to identify the existing green practices,influencing factors, challenges and opportunities when applying green practices to Sri Lankan shipping firms. This is primary research conducted using sample of 64 shipping companies registered under Ceylon Association of Ship Agents(CASA). Collected data was analyzed usingquantitative and qualitative mixed method including descriptive statistics and regression analysis by SPSS. Based on literature,21 green practices under four categories; company policy and procedure, office work documentation, shipping equipment and materialsand shipping design for compliance were considered in here. To identify the influencing factors for shipping firms when applying green concept 18 reasons were categorized into 5 factors: rules and regulations, industrial norms,customer request, pressure from competitors and company strategy.Regression analysis conclude that Sri Lankanshipping firms are following green practices at moderate level and driven by industrial norm,customer request and company strategy. As per the categorical distributions 71.88% of companies follow green practices at some level and 90.63% of companies believe adapting to green practicesadd value to their company. Knowledge, technicaland financial barriers found to be more common challenges and employees’ motivation and positive mindset canbe utilized as an opportunity.