Sri Lanka’s state-controlled ports experienced declining volumes in August 2009 at a time when several ports around the world are experiencing surging volumes in what is considered to be peak season, spanning from August to November each year.The Jaya Container Terminal and the Unity Container Terminal managed by the Sri Lanka Ports Authority (SLPA) recorded a 12% decline in August 2009 to 164,615 twenty-foot equivalent units (TEU’s) from 185,101 teu’s in August 2008.
Moreover, the decline comes at a time when South Asia Gateway Terminals (SAGT), the private sector managed container terminal recorded an increase in volume in August 2009 to 163,024 teu’s from 155,143 teu’s in August of last year.
An industry expert told the Sunday Times FT that domestic container volumes which bring in four times the revenue of transshipment containers has also decreased at the Jaya and Unity Container Terminals. Domestic containers are valued at US$148 whereas transshipment containers are valued at US$37. The Jaya and Unity Container Terminals recorded 37,700 teu’s in August 2009 for domestic containers, down from 42,474 teu’s in August 2008. Furthermore, SAGT’s domestic volumes increased to 31,518 teu’s in August 2009 from 28,289 teu’s last August.
The expert said SAGT has made inroads into the SLPA’s volumes without bringing in new business, posing a huge threat to government’s cash flow. He also said this comes at a time when the government has floated a tender in a bid to attract investment worth US$500 million in the construction of the South Container Terminal.
Chairman of the SLPA P.B. Wickrema told the Sunday Times FT that August 2009 was a bad month for transshipment containers although the Jaya and Unity Container Terminals are dominating domestic containers, with the exception of August. Dr. Wickrema explained that SLPA terminals must receive all ships, even ones with small volumes which private terminals can turn away. “Whether there are 10 boxes or 1000 boxes, it takes the same time to berth and sail.”
However, Dr. Wickrema did say that September and October have generally been the best months for port volumes although it is cyclical. He added that the SLPA ports may be able to match SAGT’s volumes by the end of the year.
Dr. Wickrema further stated SAGT has a major transshipment share with two of the largest shipping lines, M.A.C. and Maersk calling at the SAGT port due to good rates. However starting from September 1, Maersk tied up with the Jaya Container Terminal and is expecting more than 400 moves per vessel on a weekly basis. Dr. Wickrema added that the SLPA may tie up with another line in October. (NG) |
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