Califolink signs agreements with automobile importers

Califolink Logistics has signed agreements with leading automobile importers to begin clearing, conducting pre-delivery inspection and transportation of cars from the Hambantota port from May 31.

This agreement will result in the company handling over 1,500 cars monthly making it the largest supply chain service provider for this sector.

The move by the Sri Lanka Ports Authority (SLPA) to shift the vehicle off loading to Hambantota from the Colombo Port is to ease congestion in the Colombo Harbour which often leads to delays and in turn leading to higher freight rates by the lines and consequently increase the final selling price of the car.

CEO, Nimal Wijesinghe, said Califolink will avoid this domino effect by using the state-of-the-art port in Hambantota. "We have five trailers and arranging a five- acre yard in Hambantota which can handle large volumes of vehicles."

The SLPA recently made special concessions for vehicle importers using the Hambantota Port which will include 20 percent off the importing clearance tariff and seven days free port charges.

"While we could use either Port , having yards at both locations, we believe the Hambantota Port is the most cost effective option,".

"The long waiting period at the Colombo Port coupled with the new concessions at the Hambantota Port would seem to make this evident."

Sri Lanka has seen a surge in demand for new cars with the import of vehicles rising by 121 percent and 147 percent in 2010 and 2011 according to a statement by the Ministry of Finance and Planning.