Expediting South Harbour project need of the hour

by Lalin FERNANDOPULLE

The Colombo South Harbour Expansion Project would take a minimum of three years to be completed, said Chairman and CEO, Aitken Spence Maritime and Cargo, Dr. Parakrama Dissanayake.

He said this in response to a comment made by the Managing Director, Sri Lanka Ports Authority (SLPA), Capt. Nihal Keppetipola at the P.B. Karandawela Memorial Lecture in Colombo.

The Vallapardam Port site

Capt. Keppetipola said the South Harbour Port will be ready for operations within two years. Dr. Dissanayake said the SLPA had given 36 months for the completion of the port and added that work on the breakwater which is now progressing would take at least six months.

The Project did not take off as expected due to the inability to reach a final agreement on the financial bid since mid last year.

"The failure to reach a consensus and lack of transparency in the bidding process were the reasons for the delay in the project kicking off.

The shipping industry will continue to pay the price as authorities have failed to strike while the iron is hot", Dr. Dissanayake said.

Capt. Keppetipola said there cannot be further delay in completing the project as the Colombo Port should be geared to accommodate large vessels of the next generation.

"The SLPA would resort to other options if the bidder prolongs work on the project resulting in further losses to the port sector", Capt. Keppetipola said.

Aitken Spence is the bidder for the container terminal.

The Colombo South Harbour Port Project is implemented with a loan of US$ 300 million from the Asian Development Bank.

The project is long over due and maritime experts have warned that Sri Lanka would lose its hub status if the issue of space crunch is not solved.

Expert are of the view that the Hambantota and the Galle Ports cannot supplement to the Colombo Port which is unique in the region.

Other ports in the country would be ideal for transhipment purposes.

They said the Indian Port of Vallapardam would pose a serious threat to the Port of Colombo and that work on the South Harbour Expansion Project needs to be expedited.

The global shipping sector is facing severe losses due to the drastic drop in cargo volume caused by the recession.

According to estimates global shipping lost around US$ 11 billion during the first nine months of 2009.

The number of container ships idling across ports have increased to over 500 which amounts to 1.345 million TEUs. Scrapping and demolition of vessels has increased sharply.