Independent port regulator for Sri Lanka ports
The government is looking at the possibility of establishing an independent port regulator. Sri Lanka Ports Authority Managing Director Sarath Premachandra said on Tuesday that there were plans to create an independent regulatory body to maintain quality competitiveness at the Colombo port among the three operators. He made this announcement during the International Trade and Logistics – Leveraging on Location session of the Sri Lanka Economic Summit in Colombo. He pointed out that it was crucial to establish a port regulator to create a level playing field and eliminate cut-throat competition between the three terminal operators at the Port of Colombo namely the Jaya Container Terminal, the South Asia Gateway Terminal and the Colombo International Container Terminal.
In fact, Mr. Premachandra highlighted that a regulator was required to overcome unhealthy competition currently experienced at the CICT terminal which caters to some very small ships and even the ultra large vessels (ULVs) with 14,000 TEUs. CICT is a deep draft terminal of 18 metres that can attract some of the large and ultra large vessels. In this respect, he explained that the total capacity of the Port of Colombo could be achieved by appointing an independent regulator. Commenting on plans to develop the port, he noted that they would be improving the passenger business by refurbishing the existing facilities.
In addition a further area would be allocated for value added services under a 5-year plan to support the transshipment business. Further the port related logistics would be carried out at Ja-Ela according to future government plans, it was stated. Following the launch of the East Container Terminal which has been currently opened up for Expressions of Interest (EOI) it was noted that the government has plans to establish a West Container Terminal as well. Bids for the ECT close on August 31 and with delays is set to become operational in 2018, the MD said. Mr. Premachandra also explained that they would be looking at developing the Hambantota port as an industrial port for shipbuilding, ship repairs and bunkering facilities.