Colombo Port’s operations at a low ebb
Sri Lanka may lose grounds on regional development, stakeholders cautioned to take action

Colombo Port which is a key harbour in the region is expected to lose its status in the near future due to inefficiency in operations and other related problems followed by external developments seen at the ASEAN countries.

Nathan Associates Inc. Advisor Peter Cook delivering the keynote speech at the AMCHAM Business Leaders Forum on ‘Can Sri Lanka advances its competitive position in shipping and logistics’ said yesterday that performance is the most important factor in logistics industry and needs improvement where Sri Lankan ports are inefficient in operations and they affect the GDP.

"Sri Lanka is a major trans-shipment hub in region and is considered to be an important harbour in this region. But with different policies adapted by the Government on imports and exports followed by the tightened security measures hinder to land makes it vulnerable to lose its position. Lack of highways and widened roads, proper container handling system with modern facilities, inadequate railway transport systems, lack of integrated transport strategy, premitive IT system at JCT, yet to complete Southern harbour can be added to the list of difficulties encountered in Sri Lanka. With the remarkable economic growth in the ASEAN region and global growth in shipping industry will force Sri Lanka to lose its valued position," he said.

With the present delays in trans-shipments at the Port of Colombo it is also observed that each delayed day increases the distance by 60 per cent to destination. "Sri Lanka lacks an integrated transport strategy and the Government regulations are contradictory. There is no single electronic device for custom clearance and two methods are used for BOI and non-BOI companies. Lack of support for multi-container consolidation is also a problem. If Sri Lanka is to take advantage of its current status and to retain its position these problems should be eradicated," he added.

According to World Bank, each import consignment to Sri Lanka takes 25 – 27 days for clearance which creates a trade loss by 15 per cent. Improving the supply chain in Sri Lanka 0.5 per cent increase in GDP (Rs. 12 billion) was also forecast at this session.

Describing the regional development Peter Cook stated that Panama Canal will be further deepened and ship builders are expecting to manufacture much larger vessels to handle more TEUs.