CASA optimistic about proposed new terminal
View(s):Minister of Ports and Shipping Sagala Ratnayaka at a recent inspection tour of the Sri Lanka Ports Authority, emphasised the importance of expanding Colombo Port’s capacity to ensure the port’s sustainable growth.
In a recent statement the Sri Lanka Ports Authority (SLPA) said the envisaged partnership with Japan and India to develop the East Container Terminal (ECT) will help the Port of Colombo to continue with its growth momentum and further improve its position, a media release issued by the Ceylon Association of Ship’s Agents (CASA) stated.
The three governments are expected to sign a Memorandum of Cooperation (MOC) over ECT, through which SLPA asserted the 100 percent ECT ownership will be retained with Sri Lanka. A Terminal Operations Company (TOC) is said to be formed to conduct ETC operations which will be jointly owned where Sri Lanka will retain 51 per cent and the joint venture partners will purchase 49 per cent stake, the release said.
The SLPA going ahead to speed up the operationalization of ECT is indeed heartening news to the maritime industry stakeholders in Sri Lanka. CASA had been stressing the need of adding capacity at a brisk pace in order to retain Sri Lanka’s position as the best connectivity port in South Asia.
“If this growth momentum continues we can assume that all the terminals in Colombo will reach full capacity and therefore adding capacity at a brisk pace which is the most crucial factor for Sri Lanka to retain its position as the best connectivity port in South Asia,” the CASA stated.
Immediate measures should therefore be taken to operationalize the ECT which is designed as a deep water terminal.
It is disappointing that no strategic decisions pertaining to the expansion of the Colombo Port’s capacity was made during the last few years despite the industry highlighting the urgency.
“A second deep water terminal is a must for Colombo as we are facing the risk of losing cargo for regional competitors. As Sri Lanka gears up to become a regional hub, many other countries are turning to port development to accommodate growing volumes. This joint venture will bring the much needed investment for ECT whilst retaining the control with the state-owned SLPA promoting the national interest of Sri Lanka,” the release stated.