Financial Times

Bunker market opens up
The Appeal Court last week dismissed a writ application filed by John Keells Holdings subsidiary, Lanka Marine Services (LMS), ending its effective monopoly of the bunkering market in Colombo port.

The Sri Lanka Ports Authority has written to Lanka Maritime Services and Lanka Bunkering Services (LBS), which had been prevented by supplying bunkers in Colombo port by the writ application, inviting them to supply bunkers in the harbour.

“We have now been authorised to open bunkering in Colombo port which we believe will help reduce prices,” SLPA chairman Dileepa Wijesundera said. “We believe the feeder vessels will benefit from this.” “This means the whole industry will benefit from new players coming into the market where prices of bunkers will now become more competitive than that supplied by a monopolistic supplier,” said M. Reza, managing director of Lanka Maritime Services.Vincent Tan of American President Lines and president of the Sri Lanka Association of Vessel Operators said they hoped the judgement would allow other parties to supply bunkers in Colombo port and reduce prices.
Bunker prices in Colombo have been among the highest in the world and supplies had been limited although the privatization of LMS had been expected to reduce prices and liberalise the market.

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