Chinese unit outshines SLPA Colombo terminal
Sri Lanka’s state-run port institution’s container volumes declined by 8.9 per cent in the first five months of this year blamed on inefficiency of the new management but authorities are hyping figures by showing total growth at all terminals at the Colombo port.
Although the Colombo port had recorded a growth of 6.8 per cent in January-May 2015 compared to the same period in 2014, the Sri Lanka Ports Authority (SLPA)-run Jaya Container Terminals and the Unity Container Terminals despite having the largest capacity recorded a drop of 8.9 per cent.
SLPA volumes were on a growth trend in the past few years but fell this year and with the China International Container Terminal (CICT) operational more vessels were found to be shifting from SLPA to this new terminal. CICT has grown sharply since most of the vessels calling at the Jaya Container Terminal (JCT) are now turning towards the new China managed terminal.
Figures from January to May indicate that container volumes at the SLPA fell to 959,903 TEUs this year against 1,054,100 TEUs in 2014. SAGT was down by 17.1 per cent at 5, 54, 731 TEUs. CICT volume rose by 152.5 per cent to 5, 64, 238 TEUs this year from 2, 23, 474 TEUs in 2014. Total volumes at the Colombo port recorded a growth of 6.8 per cent 2, 078, 872 TEUs this year.
SLAP sources said the new management did not have the necessary capacity to compete with global port operators like APM Terminals that manages the South Asia Gateway Terminal (SAGT) and the China Merchant Holdings International (CMHI) managing the CICT.They said the new management was still studying the system which was not helpful towards the running of the establishment which lacked efficiency and decision-making.
The sources noted that the new management’s plans to reduce the 50 per cent partnership at the CICT run terminal by giving a similar share of less than 50 per cent at the East terminal would only create a bigger base for a China run port.
This could spell disaster since India wouldn’t be comfortable with the Chinese so close next door. With 90 per cent of transhipment in Colombo involving India it could create problems for Colombo which risks losing the status as a transhipment hub.