Colombo Port returns to normalcy

Colombo: The Colombo port returned to normal efficient operations Sunday afternoon with only one mainliner and four feeders out of harbour, which were slated to be handled late night. Shipping lines were happy that the Port got back to normalcy sooner than expected while Sri Lanka Ports Authority Chairman Saliya Wickramasuriya also commended employees for their renewed vigour and mind set to ‘Go that extra mile’.


Due to the 10-day go slow by SLPA trade unions demanding higher pay hike over 15 ships were stuck outer harbour while an equal amount was speculated to have bypassed Colombo port and discharged Colombo-designated containers in other ports. The go slow widely condemned by all concerned as a the major hub port in the Indian sub Continent region, analysts addedunfair caused a big setback to importers and exporters in addition to shooting costs for shipping lines.


A spokesman for Feeder operators said Sunday that there was no congestion at the Port now as ships were being handled quickly.

The quicker recovery has raised hopes that Feeder operators will not enforce the US$ 40 levy per 20-Foot Container earlier announced to be effective from July 22.


“The principals of the feeder operators are either in town or due this week to personally assess the situation in the Colombo port to review the need for a levy or not as since Friday the service levels have improved,” a Feeder operator told the Daily FT.


“The levy is unlikely to be made effective because the situation has cleared now,” SLPA Executive Director Dr. Irshad Mushin said.

SLPA is yet to make a factual assessment of the impact of the go slow but estimates were that the financial loss could be between Rs. 200 to Rs. 400 million. This is apart from the loss of credibility as a reliable and efficient hub as well as loss of revenue for lines especially those who had exclusive Terminal Service Agreements (offering berthing on arrival) with JCT and costs for exporters and importers.


Perhaps a redeeming feature of this shipping fiasco was the solid and spirited performance by private sector managed SAGT terminal which saved Colombo port go slow causing havoc internationally.


SAGT operated as per normal practise 24x7 during the full 10 day go-slow at JCT.


May to September are the peak months of the year where the highest volumes are handled in the Colombo port.


The normal market share between the two terminals averages around 40% to SAGT and 60% to JCT During the current month upto Friday the 21st of June SAGT has handled approx. 55% of the total Colombo port throughput During the go-slow at JCT, the SAGT handled an additional 15% volume throughput to meet the requirements of some dedicated JCT customers. SAGT offered priority berthing (outside window commitments) to common carrier feeder operators, so as to facilitate feeder connections to transshipment volumes. The impact of the go-slow was negated to a significant extent by these two actions taken by SAGT. Importers and Exporters using SAGT contracted Shipping Lines had no impact whatsoever during the crisis at JCT.


SAGT cooperated with JCT management in providing services to their customers who had to meet deadlines in and out of Colombo SAGT berth length being limited to only 940 metres was the most significant constraint in handling additional JCT vessels

SAGT made use of each and every available berthing slot to handle ships waiting at anchor and reduce the impact on the economy


Transshipment volumes also suffered a negative impact and joint action is being contemplated by the two terminals to redirect the business to Colombo. Inter-Terminal Trucking was seriously affected by the go-slow, but SAGT adopted a strategic approach to resolve this issue


Shipping lines and analysts said SAGT played a pro-active role in inviting common carrier feeder operators to operate additional calls to ports such as Calcutta/Haldia/Cochin/Chittagong in order