Developing South Port Terminal vital, says SLSC chief

by Lalin Fernandopulle

New vessels with a capacity of 12000 to 16000 Twenty-foot Equal Units (TEUs) are unable to call at Colombo due to draft restrictions. Within the next two years we will witness bigger vessels operating to and from the Colombo Port. If we do not develop the South Port Terminal, Colombo becoming a mere feeder port is inevitable, Chairman, Sri Lanka Shippers' Council (SLSC) Jayanath Perera said.

Addressing the SLSC AGM, he said more than 70 percent of the country's shipping volumes represent transshipment cargo from the Indian sub continent. The low import and export volumes do not attract shipping lines to call at Colombo. We will not be able to safeguard our hub status if this situation prevails, he said.

The Colombo Port is strategically located. We have enjoyed the benefits of this strategic location for over decades without developing it. We cannot simply take pride of this factor and highlight only the location of the port, Perera said.

The repercussions of not developing the South Port Terminal are serious. There will be no direct services to main destinations to and from Colombo. Our imports and exports will have to be transshipped via other hub ports in the region. This will result in delays with additional freight charges. The country's exports will be uncompetitive and prices of consumer items will shoot up. This will have an overall effect on the economy.

Emerging economies such as China and India have developed their import export volumes considerably. India has commenced work to develop their main port terminals. These terminals attract main shipping lines and will pose a serious threat to us if we do not start developing our port.

There had been many changes in the shipping industry over the years. While some of the changes have benefited shippers others have been detrimental. The development of mega carriers has given shippers better opportunities to ship their cargo at reasonable rates. Mega mergers and takeovers have created a monopolistic environment within the shipping industry, he said.

Perera said terminal handling charges, a regulator for shipping industry, proper Electronic Data Interchange system for customs clearance and reduction in port charges are key issues that need to be addressed.

Development of the Colombo South Port Terminal should be considered the highest priority and the need of the hour. It is time for all in the shipping industry to join hands and make representations to the government to embark on this development project, he said.