Time is money for ships: Business leaders deplore irresponsible TU action

Irresponsible trade unions of the Sri Lanka Ports Authority (SLPA) have done massive damage to the country's economy and it is worse than all terrorist attacks in the past. Business leaders said that trade unions and the authorities are not aware or not serious about the present economic and business environment.

In the present competitive global business environment there is no room for trade union action such as strikes in ports, power and transport sectors because they are the nerve centres of the economy and the authorities and trade unions should take all steps to prevent such situations.

Shippers said they are surprised why the authorities did not take appropriate steps to avoid the situation. A few weeks ago similar TU action of customs officers caused severe damage and exporters lost millions of rupees.

Due to the TU action the productivity of gantry cranes dropped from 20 containers to 3-5 containers per hour at the Jaya container terminal, sources said. Time is money for ships and the most unproductive time for a ship is to wait in anchorage.

Last week all shipping lines engaged in transshipment business expressed concern over the slow down of the port operation. A large number of ships is seen along the offshore from Colombo to Panadura and the SLPA has to pay a large sum of money for shipping lines as demurrage.

The Colombo Port operates as a separate business as a transshipment hub in addition to its vital role in linking Sri Lankan exports to the world market.

Within the first eight days of the go slow the Colombo Port lost more than Rs. 250 million revenue and will lose more than Rs. 35 million for every additional day.

Due to the crisis the Colombo Port will lose its reputation as a transshipment hub of South Asia and run counter to all recent achievements in productivity improvement.

Some shipping lines have threatened to pull out their operations from the Colombo Port. Chairman of the Sri Lanka Association of Vessel Operators Vincent Tan told the media that on Wednesday eight ships bypassed the Colombo Port and the number would increase if the dispute continues. Shipping lines may lose confidence and change their route.

The Hanjing Shipping Line has already changed the route. Mitsui and Maersk Lines are contemplating bypassing Colombo due to more than 30 hours working delay. Shippers said they will lose their reputation in international markets as reliable suppliers apart from paying claims and cash flow problems they face.

Our documentary credit will expire and orders will be cancelled, they said. The National Chamber of Commerce of Sri Lanka (NCCSL) has appealed to trade unions to suspend TU action immediately in the best interests of every citizen in the country.

The campaign has affected garments and tea exports, the main exports of the country, it said. The oil shock has already affected the country's economy and a united effort of all sectors of the community is needed to sustain the 8% high economic growth achieved in the first quarter of the year. The campaign would increase the price of all essential commodities and every citizen including those who engage in work to rule will be adversely affected, the NCCSL said.

Exporters fear they will lose orders as they would be unable to meet the scheduled delivery time. The garment sector which faces intense competition in the international market will be severely affected, they said.