Transshipment cargo records 3.4 percent growth

The year under review saw mixed fortunes. The economy rebounded, expanding by 7.3% in 2013 compared to the 6.3% growth in 2012, Ceylon Chamber of Commerce, Import Section, outgoing Chairman Kevin Edwards told the 79th annual general meeting of the Import Section of the CCC recently.

The country achieved this high growth in 2013 amidst a challenging domestic and external economic environment, he said.

The stable macroeconomic conditions that prevailed in the country, with relatively low inflation and interest rates with a stable exchange rate impacted positively on growth.

Port activities showed a turnaround, despite the challenging global environment.

The gradual recovery of foreign trade, attraction of new shipping lines, port efficiency and productivity improvement helped the turnaround in 2013. Container handling grew by 2.8% to 4.3 million TEU's in 2013 from 4.2 million in 2012.

A growth of 3.4 percent was recorded in transshipment cargo, compared to the negative growth of 1.5% in 2012. Over 66 million mt of cargo was handled, an increase of 2.0%.

Although the number of vessels arriving in Colombo declined the gross tonnage of containers ships that called during the year increased by 0.6%, which is evidence of larger ships arriving and the future looks bright.

The bunkering facility in Hambantota has generated an income of Rs. 750 million supplying 5,500 mt of fuel in the first three weeks of operation.

"During the year under review, there were a few issues of concern.

All private pharmaceutical importers came in for a shock in December 2013, when it was notified that all pharmaceutical items be imported in refrigerated containers to maintain the temperature. However, this decision has now been withheld until September 2014," Edwards said.

It is a well-known fact that any importer of pharmaceuticals could not import such shipments on LCL basis, in refrigerated containers as no consolidated LCL refrigerated shipments are imported into Sri Lanka at present.

However, if it does begin, then the Port of Colombo will need a refrigerated warehouse for such goods.

The next two options would be to import a small quantity on FCL basis or air freight such cargo, but at what cost and who will pay for it at the end, he said.